Federal Reserve Bulletin, 1972-04

F e d e ra l R e s e rv e B u l l e t i n APRIL 1972 * * * * * * * * o °y G oYf'.' *. v xP ^ .W * + ¥ » w * 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 C O N T E N T S NUMBER 4 □ VOLUME 58 □ APRIL 1972 325 U.S. Balance of Payments and Investment Position 340 Open Market Operations and the Monetary and Credit Aggregates —1971 363 Changes in Time and Savings Deposits at Commercial Banks, October 1971-January 1972 375 Changes in Bank Lending Practices, 1971 380 Statement to Congress 390 Record of Policy Actions of the Federal Open Market Committee 398 Law Department 431 Announcements 432 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 100 Board of Governors and Staff A 102 Open Market Committee and Staff; Federal Advisory Council A 103 Federal Reserve Banks and Branches A 104 Federal Reserve Board Publications A 108 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 Ralph C. Bryant Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Balance of Payments and Investment Position THE EXTENT of the fundamental disequilibrium in the U.S. balance of payments was dramatically exposed last year when the trade balance worsened abruptly. At the same time the outflow of private capital increased to mammoth pro­ portions. Although over-all deficits had persisted for many years, the official settlements balance had been held within a relatively narrow band in the 1960’s. In the early years of the decade, a strong trade balance served to offset growing outflows of capital. After the mid-1960’s official restrictions on outflows of U.S. private capital, together with large in­ flows of foreign private long-term and liquid capital, masked the effects of a declining trade surplus and even produced official settlements surpluses in 1968 and 1969. Increasing stresses became evident in 1970, when the eas­ ing of monetary policy in the United States, to cope with a deepening recession, led to massive repayments by U.S. banks of their borrowings in the Euro-dollar market—with an adverse effect on the official settlements balance far ex­ ceeding the beneficial effects of a temporarily improved trade balance. Before many months of 1971 had gone by, market participants recognized that an impasse had been reached and that there would almost certainly have to be a decisive change in the exchange rates of the dollar against foreign cur­ rencies. The vast speculative flows that ensued brought mat­ ters to a head, triggering the actions that the President took on August 15. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN □ APRIL 1972 A detailed review of the hectic exchange market activity REVALUATIONS OF MAJOR CURRENCIES PER CENT last year was published in the article on foreign exchange operations in the March Bulletin. It is important to note that one result of the suspension of the convertibility of the dollar in August was a general recognition that fundamental improvement of the U.S. balance of payments could not be secured by a few ad hoc adjustments of the exchange rates of those countries most obviously in surplus, or by a uniform devaluation of the dollar against all currencies. What was FRANC GUILDER STERLING LIRA Revaluations are calculated from new needed was a coordinated multilateral move that would take central rates and parities in effect on into account the differing balance of payments situations of May 1, 1971. *For weighted averages, weights different countries, some in fundamental surplus to a greater are 1970 shares of each country in total trade of Group-of-Ten countries or lesser degree, and some in basic deficit. Successful nego­ (includes U.S.) plus Switzerland. tiation of such a realignment in the Smithsonian meeting of December 17 and 18, 1971, was a remarkable achievement, and the eventual effects on trading positions of the relative changes arrived at (see accompanying chart) should go a long way toward restoring equilibrium in world trade and pay­ ments. DEVELOPMENTS IN 1971 On any basis of measurement the U.S. balance of payments deficit was extraordinarily large in 1971. The surplus on trans­ actions in goods and services dropped to less than $1 billion while the identified outflow for remittances and pensions, OVER ALL BALANCES U.S. Government grants and capital, and private long-term BILLIONS OF DOLLARS capital rose to a record $10 billion. Thus, the deficit on cur­ rent account and long-term capital exceeded $9 billion, after having averaged less than $2.5 billion since 1965 and less than $1 billion in the early I960’s. In addition, recorded out­ flows of short-term capital of more than $10 billion and un­ recorded net payments approaching $11 billion raised the official settlements deficit (before crediting the Special Draw­ ing Rights allocation of $0.7 billion) to $30.5 billion. A part of this deficit was financed by the use of U.S. inter­ 1968_________1989_________1970_________1971 national reserves, which were drawn down by $3.1 billion; 1Excludes SDR allocations. this reduced U.S. reserve assets to $ 12.1 billion by the end of the Quarterly data at seasonally ad­ justed annual rates. year. By far the greater part of the deficit was financed by increases in foreign official reserve holders’ claims against the United States. These grew by $27.4 billion in the year and totaled nearly $52 billion by year-end. An extraordinary outpouring of capital from the United States dominated the balance of payments last year. Ag­ gregate net outflows of private capital, both those recorded and those believed to be reflected in the residual errors and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 327 MAJOR COMPONENTS omissions in the accounts, exceeded $24 billion, com­ OFFICIAL SETTLEMENTS BALANCE BILUONyiMjOUARS pared with about $8 billion in 1970. Recorded outflows of 4 U.S. private capital exceeded $9.5 billion, reaching a peak in the period of heightened speculation in the third quarter. This was an increase of about $2.5 billion over the preceding year. Inflows of foreign capital adding to nonliquid foreign private assets in the United States shrank to under $2 bil­ lion, less than half the inflow of the previous year. As in 1970,, there was a large outflow of foreign liquid funds—nearly $7 billion—reducing U.S. liquid liabilities to private foreigners, especially in the form of U.S. banks’ borrowings from the Euro-dollar market. Finally, a major adverse flow of capital was represented in the errors and omissions item—which may have included as much as $10 billion of various types of flows responding to interest rate differentials or stimulated TABLE 1 U.S. BALANCE OF PAYMENTS, 1960-71 In billions of dollars Line Item 1960-64 1965-69 1970 1971 average average 1 Exports of goods and services 1.................................................................................... 31.3 47.0 62.9 65.9 Merchandise, excluding military................................................................................ 21.7 31.3 42.0 42.8 Military sales................................................................................................................. .6 1.1 1.5 1.9 Investment income 2..................................................................................................... 5.1 8.6 11.4 12.7 Other services................................................................................................................. 4.0 6.0 8.0 8.5 2 Imports of goods and services 1.................................................................................... -25.4 -42.6 -59.3 -65.2 Merchandise, excluding military................................................................................ -16.2 -28.5 -39.9 -45.6 Military expenditures................................................................................................... -3.0 -4.1 -4.9 -4.8 Investment income 2 -1.2 -2.8 -5.2 -4.8 Other services................................................................................................................. -5.0 -7.2 -9.4 -10.0 3 Balance on goods and services 1...................................................................................... 5.9 4.4 3.6 .7 Merchandise, excluding military................................................................................ 5.4 2.8 2.1 -2.9 Military sales and expenditures.................................................................................. -2.4 -2.9 -3.4 -2.9 Investment income 2..................................................................................................... 3.9 5.7 6.2 ' 7,9 Other services................................................................................................................. -1.0 -1.2 -1.4 -1.5 4 Remittances and pensions, net...................................................................................... -.7 -1.1 -1.4 -1.5 5 U.S. Govt, grants and capital 3, net............................................................................. -2.9 -3.7 -3.8 -4.4 6 Long-term private capital, net........................................................................................ -2.9 -1.8 -1.5 -4.1 7 Balance on current account and long-term capital (lines 3 through 6)................... -.7 -2.2 -3.0 -9.3 8 Nonliquid short-term private capital, net................................................................... -1.1 -.2 -.5 -2.5 9 Errors and omissions....................................................................................................... -1.0 -1.0 -1.1 -10.9 10 Net liquidity balance (excluding SDR allocations) (lines 7 through 9)................. -2.8 -3.4 -4.7 -22.7 11 Liquid private capital, net............................................................................................... .6 3.4 -6.0 -7.8 12 Official settlements balance (excluding SDR allocations) (lines 10 and 11)......... -2.2 -.0 -10.7 -30.5 Financed by change in: U.S. official reserve assets (excluding SDR allocations), decrease (-f)........ 1.0 -.0 3.3 3.1 U.S. liabilities to foreign official agencies, increase (+).................................. 1.2 .1 7.3 27.4 MEMO: SDR allocations.................................................................................................................................................................................. .9 .7 Balance including SDR allocations Net liquidity balance....................................................................................................................................................................... —3.8 —22.0 Official settlements balance........................................................................................................................................................... —9.8 — 29.8 1 Excluding transfers under military grants. Note.—Details may not add to totals because of rounding. Data 2 Excluding undistributed earnings of subsidiaries. are from U.S. Dept, of Commerce, Bureau of Economic Analysis. 3 Includes nonliquid liabilities to other than official reserve holders. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 FEDERAL RESERVE BULLETIN o APRIL 1972 by expectations of exchange rate changes; among such flows would be unreported shifts in accounts receivable or payable due to leads and lags in payments for goods and services. CAPITAL FLOWS The increase in recorded outflows of U.S. private capital last year resulted primarily from stronger foreign demand for U.S. PRIVATE CAPITAL credit from U.S. banks and from shifts in short-term assets and liabilities of U.S. corporations. In both cases, expecta­ tions of exchange rate changes played a role. On the other hand, U.S. purchases of foreign securities were smaller than in many earlier years, and over the year as a whole the net flow of direct-investment capital from U.S. corporations to their foreign affiliates was not much greater than in 1970. Return flows of direct-investment funds in the last days of the year offset the sharply higher rates of outflow in the first three quarters of 1971, which also had probably been in­ fluenced by exchange market uncertainties. Companies ap­ 1968_________1969 1970_________1971 parently did not make great use of the 2-month extension of the legal deadline for compliance with limits on annual out­ flows. TABLE 2 PRIVATE CAPITAL FLOWS, RECORDED In millions of dollars; outflows from U.S. (—) 1971 Line Item 1969 1970 1971 I II III IV 1 (seasonally adjusted) 1 U.S. and foreign private capital................................................ 8,134 -7,999 -14,450 -4,415 -2,149 -5,687 -2,199 2 U.S. private capital..................................................................... -5,424 -6,915 -9,585 -2,235 -2,201 -3,455 -1,694 3 Direct investment..................................................................... -3,254 -4,446 -4,525 -1.370 -1.393 -1.404 -358 4 Net purchases of foreign securities...................................... -1,494 -942 -910 -353 -388 -248 79 5 Claims reported by U.S. banks............................................ -550 -951 -2.969 -130 -328 -1.578 -933 6 Short-term assets related to direct investments 1............. -187 -84 -195 -109 -34 -4 -48 7 Other.......................................................................................... 61 -492 -986 -273 -58 -221 -434 8 Nonliquid foreign private assets in U.S................................... 4,896 5,158 1,840 535 85 93 1,127 9 Related to U.S. direct investments abroad 2.................... 1,730 1,975 1,278 539 314 102 323 10 U.S. corporate stocks 3.......................................................... 1,565 697 836 79 -3 231 529 11 Other corporate securities (excluding Treasury issues)4.. 518 671 278 163 -64 151 28 12 Foreign direct investment in U.S......................................... 832 969 -192 92 -16 -388 120 13 Other nonliquid assets in U.S.4........................................... 251 846 -360 -338 -146 -3 127 14 Liquid foreign private assets in U.S......................................... 8,662 -6,242 -6,705 -2,715 -33 -2,325 -1,632 15 Of foreign commercial banks............................................... 9,166 -6,507 -6.902 -3.067 -84 -2.113 -1,638 16 Of other private foreigners.................................................... -441 86 -478 72 -147 -368 -35 17 Of international and regional organizations..................... -63 179 675 280 198 156 41 MEMO: Capital transactions related to U.S. direct investments abroad (lines 3, 6, and 9)..................................................... -1,711 -2,555 -3,442 -940 -1,113 -1,306 -83 1 Unexpended proceeds of the new issues included in line 9, held 3 Excludes transactions included in line 9. abroad. 4 Includes transactions of international and regional institutions 2 Includes new security issues sold abroad for the purpose of other than the IMF. financing direct investments plus other long-term borrowing abroad by Note.—Data are from the U.S. Dept, of Commerce, Bureau of U.S. corporations, including some borrowing for other purposes. Economic Analysis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 329 Recent estimates of foreign plant and equipment expendi­ tures by U.S. direct-investment affiliates show an increase of 9 per cent from 1970 to 1971, following a record rise of 21 per cent the year before; a further slowdown to a 7 per cent rise is projected by the companies for this year. This tapering off in fixed capital outlays seems to be primarily a reaction to the general slowing in expansion of activity in foreign coun­ tries and would reduce the demand for financing from U.S. sources. Retained earnings and other sources of financing abroad cover a substantial part of these outlays. Companies—foreign-owned as well as U.S.-owned— operating in the United States reversed the normal growth in their short-term debt to foreigners in 1971, and added to their short-term claims on foreigners. The net shift from 1970 to 1971 in reported short-term corporate capital flows was over $2 billion, and there was also probably a large unreported outflow. Foreign assets of U.S. banks (including U.S. agencies and branches of foreign banks), together with customers’ funds placed abroad reported by these banks, increased about $3 billion in 1971. Some of the bank credit outflow was facili­ tated by the statutorily required exemption in November of export credits from the ceilings on foreign assets established under the Federal Reserve’s voluntary foreign credit restraint program. Japan and the United Kingdom each received about $500 million of the bank-reported outflow; $400 million went to Canada, which is exempt from the ceilings; and smaller increases were reported for many other countries. While a variety of influences operated to enlarge capital outflows in 1971, the continued large outflow of funds that reduced U.S. liquid liabilities to private foreigners was pri­ marily a function of the relationships among interest rates. As had occurred in 1970, interest rates in the Euro-dollar market were sufficiently above comparable rates in the United States to cause U.S. banks to run down their borrowings—built up sharply in 1968-69—from their branches abroad. In 1971 these borrowings were reduced by $4.9 billion, following a reduction of $6.3 billion the year before; the outstanding balances, as accounted for in the balance of payments, were thus cut to only $1.2 billion. Other foreign commercial banks drew down their U.S. working balances by more than $2 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN □ APRIL 1972 1 | INTEREST RATES compared MAR. JUNE SEPT. DEC. MAR. JUNE ____________________1971__________________________________ 1972 Euro-dollar rates are weekly averages of noon bid rates in the London market. CD rates are median offer rates posted by New York City banks, as of each Wednesday. The differential is calculated after adjusting the CD rate for the 5 per cent reserve requirement on time deposits at U.S. banks. CURRENT TRANSACTIONS The surplus on transactions in goods and services in 1971 was only $0.7 billion, a drop of nearly $3 billion from 1970 and far below the average surplus of $6 billion recorded in the 1960-64 period. The balance on goods (excluding military) was a deficit of $3 billion in 1971—the first trade deficit since 1935 and the result of a $5 billion net deterioration from 1970. This worsening was offset, in part, by a $2 billion improvement in the surplus on service items, principally because of higher net income receipts and a reduction in net military expenditures abroad. Merchandise trade. The shift in the trade account in 1971 stemmed from only a slight growth in exports and a very sharp advance in imports; exports in 1971 were only about 2 per cent higher than in 1970 while imports rose by nearly 15 INDUSTRIAL PRODUCTION per cent—much faster than the rise in gross national product in current prices. Because the average price of exports, mea­ sured by unit values, rose by 3 per cent, there was some reduction in the volume of exports last year. The prices (unit values) of imports in 1971 rose faster than those of exports —more than 5 per cent—but the volume of imports rose by about 9 per cent. The general weakening of business activity in Europe and Japan that became evident in 1970, and the moderate recovery 1968 1869 1970 1971 '72 in 1971 in the U.S. economy, were the leading factors in the Seasonally adjusted OECD quarterly change in our trade balance last year. Anticipated or actual do­ data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 331 mestic strikes—in particular those affecting the docks, rail­ roads, steel, aluminum, and coal—while causing erratic month­ ly movements in exports and imports, were responsible only in small part for the pronounced worsening in the trade balance for the year as a whole. Strikes probably depressed the level of exports somewhat more than that of imports. Other factors affecting trade movements in 1971 were anticipation of the imposition of “voluntary” controls by foreign governments on some exports to the United States and the increasing pos­ sibility—confirmed by events—of changes in exchange rates. In an effort to determine how much of the deterioration in the trade balance in 1971 reflected longer-run forces, an ex­ tremely rough adjustment to eliminate the effects of strikes and cyclical conditions here and abroad and of some other special factors has been made. On this “adjusted” basis it appears that there has been a steady deterioration in the U.S. TRADE BALANCE CYCLICALLY ADJUSTED AND ACTUAL trade balance since 1967. In each of the years 1965, 1966, .......... BILLIONS 'W M and 1967 the adjusted average trade balance was a surplus of about $5 billion. (Some investigators, however, find that there was already an underlying downtrend in that period.) This adjusted balance shrank to a surplus of about $1.5 billion in 1968, became negligible in 1969, and turned to a deficit of about $1 billion in 1970. Last year the deficit on this basis is estimated to have been more than $3 billion. Thus, the worsening in the actual balance in 1971 reflected not only The actual trade balance is on a bal­ ance of payments basis. The cycli­ a strong shift in the cyclical position and other transitory cally adjusted balance (Federal Re­ serve estimate) is based on an as­ factors but also a continuation of the trend rate of decline sumption of full employment in the U.S. and abroad; estimated that started in the mid-1960’s. effects of strikes and the Suez Crisis in 1967 are eliminated. The U.S. share of world exports to non-U.S. markets fell markedly in 1971—to about 16.5 per cent—compared with 20.5 per cent in 1960 and about 19 per cent in the mid-1960’s. Exports of industrial supplies and materials—especially those of metals—declined sharply, largely offsetting the rise in the value of exports of agricultural commodities, of commercial aircraft, and of automotive equipment to Canada. The rate of growth in economic activity in most foreign industrial countries flattened out last year. In Japan indus­ trial production expanded by less than 5 per cent from 1970 to 1971 compared with 16 per cent from 1969 to 1970 and an equally high rate during most of the decade of the 1960’s. The increase in industrial output in Germany in 1971 was only about one-third as much as the increase from 1969 to 1970. Canadian economic activity was more vigorous last year than in 1970, when the bottom of the recession was reached, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN □ APRIL 1972 TABLE 3 TOTAL PRODUCTION AND EXPORTS OF SELECTED COMMODITIES IN JAPAN AND GERMANY Based on quantity data Annual average rate of change 1970 exports, selected (in per cent) commodities Country and 1965-69 1970-71 i commodity As per To U.S. as Produc­ Produc­ cent of per cent Total tion for Total tion for produc­ of total pro­ domestic pro­ domestic tion exports duction Exports use duction Exports use JAPAN Television receivers................................................ 31.9 33.7 30.9 -5.2 18.5 -20.3 38.8 63.1 Cameras.................................................................. 5.2 15.6 -4.4 -8.5 14.6 -30.1 48.4 29.0 Passenger cars........................................................ 39.2 49.4 36.8 11.4 67.3 -7.1 22.4 44.8 Trucks..................................................................... 14.9 31.3 13.6 -.9 50.9 -7.1 10.8 31.7 Motorcycles............................................................ 3.9 9.5 .2 14.9 23.7 3.8 55.6 63.2 Steel......................................................................... 18.8 13.2 20.6 -5.0 35.8 -14.5 18.9 23.9 GERMANY Passenger cars........................................................ 5.8 7.3 4.6 4.8 9.0 .8 48.4 35.1 Steel......................................................................... 5.3 7.5 4.5 -10.4 10.0 -17.9 26.7 11.5 1971 data partly estimated. but use of resources was still much below capacity. As domestic demand weakened in most foreign countries, foreign producers depended increasingly on selling their output abroad. For example, while domestic sales of cars, TV receivers, cameras, and motorcycles in Japan fell sharply from 1970 to 1971, producers in that country were able to resist production cut­ backs and even to expand output by exporting increased amounts of these goods. This was also true for German ex­ ports of steel and cars. The advance in U.S. imports last year was broadly based, as all major categories of goods—foods, industrial mate­ rials, capital equipment, automobiles, and other consumer goods—increased over 1970 levels. The greatest increase was in cars, particularly from Japan. The physical volume of im­ ports of industrial materials rose by nearly 10 per cent even though the rise in U.S. industrial production during the year was modest. The rise in imports of materials was concentrated MERCHANDISE TRADE in steel, petroleum, and lumber. The increase in steel reflected BILLIONS OF DOLLARS heavy purchases in anticipation of a possible domestic steel strike and the greater availability of steel from abroad as foreign demand slackened. The higher import value for petroleum stemmed from both increased oil quotas and higher prices, whereas the large increase in lumber imports was j : 1 §gj1 associated with the strong rise in domestic residential con­ 1 struction. Most of the deterioration in our trade balance from 1970 to Half years at seasonally adjusted an­ 1971 was with the industrial countries, particularly with nual rates, balance of payments basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 333 Western Europe and Japan. Our trade deficit with Japan rose to $3.2 billion in 1971, about 2Vi times as large as in 1970; exports declined as a result of the depressed level of eco­ nomic activity in that country while our imports from Japan rose sharply. Our customary trade surplus with the West European countries fell to less than $1 billion last year com­ pared with nearly $3 billion in the preceding year. Services. The surplus on services reached a record $3.5 billion in 1971 compared with $1.5 billion in 1970. The pre­ vious high was $2.2 billion, in 1965. The principal element in the 1971 improvement was the large increase in income receipts from U.S. direct investment abroad, including in particular a large increase in receipts from petroleum com­ panies. As a result of the realignment of exchange rates, local currency earnings of many foreign affiliates became larger in terms of dollars, and preliminary reports indicate steppedup remittances to U.S. parent companies at the end of 1971. Consequently, income receipts from U.S. direct investments abroad in the fourth quarter of last year were a record-break­ ing $2.2 billion, nearly 50 per cent higher than in the fourth quarter of 1970. Income payments to foreigners on their investments and liquid asset holdings in the United States declined by about $0.5 billion in 1971, as the effect of the decline in average interest rates on foreign assets held here more' than offset the effect of the increase in volume of such assets. A reduction in net military expenditures abroad by $0.5 billion in 1971 was the result of exceptionally high receipts from military agency sales. Gross military expenditures abroad in 1971 were virtually unchanged from 1969 and 1970. Sav­ ings in expenditures from the large withdrawals of troops from Vietnam and from other countries in Southeast Asia were largely offset by increased costs in other countries; such costs more recently have been raised further, in dollar terms, by the dollar’s depreciation against foreign currencies. OF Although it is generally agreed that the realignment of exchange rates last December should eventually produce a major shift in the U.S. trade balance—on the order of $7 billion to $8 billion—it is also well known that the initial effects of a de­ valuation are normally adverse for the balance of trade. In the U.S. case, the usual immediate difficulties are likely to be magnified by cyclical demand factors here and abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN □ APRIL 1972 Immediate adverse effects from a devaluation occur in large part because the volume of trade does not respond im­ mediately to price changes. If U.S. exporters maintain their dollar prices, the lower cost to foreign customers in terms of their own currencies should stimulate buying and in time raise the volume of exports enough to produce some increase in export values in terms of foreign currencies, and a consider­ able increase in terms of dollars. On the import side, if foreign exporters hold their export prices in their currencies un­ changed, the dollar cost to the U.S. consumer rises; eventually the lowering of the volume of purchases will reduce aggregate dollar expenditures on imports. Initially, however, the in­ crease in the aggregate dollar value of imports is likely to outweigh any favorable impact on exports. To the extent that import prices in terms of dollars do not rise because of long-run contractual arrangements, or because foreign exporters adjust their profit margins rather than raising their prices by the full amount of the exchange rate changes, the full impact of the realignment on the volume of imports will be delayed. Also, imports of the United States, unlike those of most other countries, are normally invoiced in our own currency so that a rise in import prices requires some action by foreign sellers, in contrast to the automatic price increase that occurs in devaluing countries whose imports are invoiced in currencies other than their own. The actual outcome for U.S. trade this year will depend heavily on conditions of over-all demand here and abroad. If, as expected, demand conditions in principal foreign mar­ kets improve only slowly, local producers will resist compe­ tition from the United States in their home markets and will tend to absorb some of the revaluation in order to hold down prices of exports to the U.S. market. This would occur espe­ cially in cases where the revaluation has been large and a siz­ able portion of the output of an industry is geared to export markets. While it is easy enough to identify factors that will retard improvement in the U.S. trade balance in the short run, there are other factors that could be advantageous to the U.S. trade position and should reinforce the effects of the realignment over a somewhat longer time horizon. The principal potentially helpful factor is the trend in wages and prices. For some time before the revaluations, costs and prices in manufacturing abroad were rising faster than in the United States. The effects Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 335 EXPORT PRICES of these changes in prices here and abroad did not show up until MANUFACTURED GOODS fairly recently in export prices, but a combination of such on­ going increases in foreign costs with the revaluation effect on the foreign prices of U.S. goods should act powerfully to bring the needed changes in various countries’ trade balances, especi­ ally when renewed growth of demand abroad puts greater pressures on local supplies. Of course, these changes will also require active policies in the United States to limit price increases and promote exports. Other countries with large persistent surpluses will need to consider steps to reinforce the effects of revaluation—in particular, steps that would lower barriers to their imports and facilitate a redirection of their 1971 partially estimated. industry from concentration on exports toward providing more goods and services to the domestic market. The realignment of exchange rates will have several diverse effects on the dollar value of service transactions—travel, transportation, military expenditures, and investment income returns. About one-third of U.S. travel expenditures abroad are in European countries where sizable revaluations have oc­ curred; U.S. travel to those countries may drop off, though some will only be diverted to non-revaluing countries. Foreign travel to the United States will be encouraged, but the amount involved is not likely to be great. Net dollar payments for freight on U.S. imports will probably rise somewhat to cover foreign currency expenses. As noted earlier, military expendi­ tures abroad, especially those in Germany and Japan, were already increased in dollar terms in 1971 by the revaluation of foreign currencies, and they will rise further on that account this year, as well as because of rising prices abroad. Last year’s revaluations will tend to raise income receipts this year as the local currency earnings of U.S. affiliates in many countries will rise in terms of dollars. On balance, however, the likely favorable effects of the realignment on income receipts and foreign travel expenditures may be offset, in part, by the in­ creased costs of maintaining Armed Forces overseas. The effects of the currency realignment on capital flows between the United States and foreign countries are especially conjectural in the period ahead. Short-term capital is ordi­ narily influenced by relative interest costs and yields, but flows related to precautionary motives are unpredictable. In the period ahead, the direction of these flows will be in­ fluenced by developments in the current account, as well as by evidence of the policies adopted by national authori- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN □ APRIL 1972 ties. Flows of longer-term capital into portfolio securities or direct investments will probably continue to be influenced mainly by considerations of longer-term economic trends, although there are also important short-term speculative in­ fluences. A successful realignment and a strong U.S. growth rate will certainly help to sustain a large continuing inflow of foreign capital to purchase U.S. securities and expand direct investments. Some countries have recently eased their restrictions on capital outflows and this also should support an investment flow to the United States. U.S. investments abroad are limited by restrictions instituted in the 1960’s; so market forces are not fully operative. In the past few years the evident undervaluation of some cur­ rencies has no doubt encouraged U.S. investments abroad, either because the cost of acquiring assets in such countries was low or because undervaluation made a foreign country’s industry more competitive worldwide. The realignment should take the edge off this incentive for investment, though U.S. investors are likely to continue to have a very active interest in expanding their foreign assets as business activity abroad recovers. INTERNATIONAL The outcome of the U.S. balance of payments is mirrored INVESTMENT POSITION in the changes in international assets and liabilities of the United States, although these assets and liabilities are affected by such additional factors as retained earnings of direct in­ vestments, changes in market valuations of securities, and other valuation changes. At the end of 1970 the excess of U.S.-owned assets in for­ eign countries over foreign-owned assets in the United States amounted to about $70 billion. By the end of 1971 this excess was reduced to less than $60 billion. Of course, the net pay­ ments of almost $ 11 billion that went unrecorded in the bal­ ance of payments accounts last year probably consisted pri­ marily of additions to U.S. assets abroad, and these are also omitted from the statement of the investment balance. The value of U. S. privately held assets abroad rose about $ 15 billion in 1971. Of this amount, $9.6 billion resulted from net capital outflows recorded in the balance of payments accounts, more than $3 billion reflects a rough estimate for reinvested earnings of foreign affiliates of U.S. companies, and nearly $2 billion resulted from increases in market values of portfolio holdings of foreign securities. By far the largest class of U.S. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 337 TABLE 4 INTERNATIONAL INVESTMENT POSITION OF THE UNITED STATES In billions of dollars Item 1950 1960 1969 1970 1971 e U.S. assets and investments abroad................................ 54.4 85.6 158.1 166.6 181.0 U.S. private investments.................................................. 19.0 49.3 110.4 119.9 134.9 Long-term, total.............................................................. 17.5 44.5 96.3 104.7 116.0 Direct investments.................................................... 11.8 31.9 71.0 78.1 86.0 Foreign securities....................................................... 4.3 9.6 18.7 19.6 22.3 Banking claims and other........................................ 1.4 3.1 6.6 7.0 7.6 Short-term, total............................................................. 1.5 4.8 14.1 15.2 18.9 Reported by banks.................................................... .9 3.6 9.7 10.8 13.4 Other............................................................................ .6 1.2 4.4 4.4 5.5 U.S. Govt, credits and claims 1...................................... 11.1 16.9 30.7 32.2 34.0 U.S. monetary reserve assets........................................... 24.3 19.4 17.0 14J 12.1 Monetary gold................................................................ 22.8 17.8 11.9 11.1 10.2 1.4 1.6 5.1 3.4 1.9 Foreign assets and investments in U.S............................ 17.6 40.9 90.8 97.5 122.5 U.S. liabilities to private foreigners.............................. 12.9 28^2 71.4 71^1 69.2 Nonliquid.......................................................................... 8.7 19.0 42.5 48.5 53.3 Direct investments in U.S........................................ 3.4 6.9 11.8 13.2 13.4 U.S. corporate securities.......................................... 3.1 10.0 22.9 25.6 30.4 Corporate and other bonds................................ .2 .6 4.8 6.9 8.6 Corporate stocks................................................... 2.9 9.3 18.1 18.7 21.8 Other long-term liabilities........................................ 1.5 1.6 4.8 6.0 5.9 Short-term reported by nonbanks......................... .7 .6 2.9 3.7 3.6 4.2 9.1 28.9 22.6 15.9 To foreign banks (incl. U.S. bank branches)... . 2.1 4.8 23.6 17.1 10.3 To others..................................................................... 2.1 4.3 5.3 5.5 5.6 U.S. liabilities to foreign official accounts................... 4.7 12.7 19.5 26^4 53.2 Reserve liabilities............................................................ 4.6 11.9 17.1 24.4 51.8 Of U.S. banks............................................................. 2.4 4.0 8.5 6.5 1A Of U.S. Govt............................................................... 2.2 7.9 8.5 17.9 44.4 Nonreserve liabilities of U.S. Govt.2.......................... .1 .8 2.4 2.0 1.4 1 Other than U.S. monetary reserve assets. 2 Includes small amounts of liabilities to private foreigners. e Estimated. Note.—Data for 1950, 1960, 1969, and 1970 are as published by the Bureau of Economic Analysis t U.S. Dept, of Commerce; data for 1971 are estimates based on capital flows as reported by the BE A plus rough allowances for reinvested earnings, and changes in market valuations. The basis of valuation is as follows: direct investments at book values as appearing, in principle, on the books of the affiliates rather than the head offices; securities at market values; other assets and liabilities at stated values in the accounts of banks and other debtors or creditors. For more detailed data see Survey of Current Business, U.S. Dept, of Commerce, Oct. 1971. Details may not add to totals because of rounding. foreign assets is direct investments, which had a book value of some $86 billion at the end of 1971, an increase of about $8 billion for the year. Foreign assets and investments in the United States jumped by $25 billion last year to a total of $122 billion. The major increase was in liabilities to foreign official accounts ($27 billion), reflecting the financing of the over-all deficit. Other major changes included a decline of $6.7 billion in private foreign liquid assets in the United States and an increase of about $5 billion in nonliquid private assets in the United States. About half of the increase in the value of private nonliquid assets resulted from rising market values of securities, an­ other $1.8 billion resulted from net capital inflows, and a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 FEDERAL RESERVE BULLETIN □ APRIL 1972 small amount was derived from reinvested profits of foreign direct investments in the United States. As a result of the financing of the heavy U.S. deficit last year, the disparity between the composition of U.S. foreign assets and liabilities widened further. On the asset side, long­ term private assets and the foreign credits of the U.S. Govern­ ment predominate, accounting for 80 per cent of the total, whereas on the liability side, liquid private claims on the United States plus liabilities to foreign official accounts (mainly liquid) account for 57 per cent of the total. The largest category of private foreign investment here is portfolio holdings of U.S. corporate stocks with an estimated market value of nearly $22 billion at the end of 1971. RECENT DEVELOPMENTS After the Smithsonian agreement of December 18 the exchange rates of most other countries moved up through the new wider band around parity to quotations at or near the upper limit of the band, and then eased downward in late March. A few countries have added further substantial amounts to their holdings of dollars in the United States. A number of countries have taken additional steps to reduce incentives for capital inflows, ranging from a ban on interest payments on nonresi­ dent deposits to a cash-deposit requirement on certain bor­ rowings from nonresidents, as in Germany. Part of the weak­ ness of the dollar stemmed from large trade deficits—as trade was probably still being adversely affected by threatened dock EXCHANGE RATE MOVEMENTS IN 1972: percentage above or below central rates Average for weeks ending Wednesdays. Dashed line indicates central rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 339 strikes as well as by some increase in import prices. However, prior to mid-March there were also occasional bursts of specu­ lation as the volatile market reacted to developments or state­ ments that seemed to threaten the viability of the new exchange rates. Several factors have had a calming influence since mid­ March. Especially important has been some firming of U.S. BANK PRIME LOAN RATES short-term interest rates relative to those in other major countries. This tendency toward a convergence of short-term interest rates has exerted a stabilizing influence partly by less­ ening the incentive for U.S. funds to move abroad, and also as a portent of further movement in an equilibrating direction. Also, the passage and signing of the bill changing the par value of the dollar, and new U.S. initiatives toward establishing a basis for negotiations to improve international economic relationships, begun at the Smithsonian meeting, tended to Data from Morgan Guaranty Trust establish a less volatile market atmosphere. □ Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Open Market Operations and the Monetary and Credit Aggregates—1971 This article is adapted from a report sub­ per cent to 4% per cent over the fourth mitted to the Federal Open Market Com­ quarter, the Desk pressed nonborrowed mittee by Alan R. Holmes, Manager of reserves on the banking system until the the System Open Market Account and rate fell to 3% per cent in the second half Senior Vice President of the Federal of February. At this point, the money sup­ Reserve Bank of New York. ply began to grow rapidly. In early April the Committee called for a firming of the System open market operations encoun­ money market to help curb this expansion. tered new difficulties in 1971 in pursuing Growth in Mx continued rapid into the a monetary policy appropriate to a sluggish summer, even though the Desk’s reluctant economy still troubled by inflation and a provision of reserves led to an increase deep balance of payments deficit. The in the Federal funds rate to 5 Vz per cent operational instruction of the Federal by August. The President’s new econom­ Open Market Committee (FOMC) to the ic program, announced on August 15, Trading Desk at the Federal Reserve Bank reduced inflationary expectations, and of New York gave important emphasis, growth in the money supply slowed mark­ as in 1970, to achieving desired growth edly over the remainder of the year. in the monetary and credit aggregates, with due attention to interest rate devel­ opments. In 1970, it will be recalled, t MONEY SUPPLY AND ADJUSTED 1 BANK CREDIT PROXY Mj—currency plus adjusted demand de­ posits held by the public—had expanded SEASONALLY ADJUSTED ANNUAL RATES OF GROWTH, PER CENT at a reasonably steady 6 per cent rate over the first three quarters, and the fourthquarter slowdown to a 3.4 per cent annual rate was plausibly attributed to the effects of the automobile strike. But in 1971 growth in Mt varied considerably, al­ though the Committee was willing to 10 countenance considerable variation in in­ terest rates. The problem of obtaining a prompt ----1—1__UJ__La__LI__]_i__B3 ■ ■ 0 ' . ■ I ■■ ■ ■■^■■■■20 response in M1 became apparent early in ADJUSTED BANK CREDIT 1971. Through January and most of Febru­ PROXY ary the money supply failed to expand as rapidly as was required if the Committee’s desire to make up the fourth-quarter short­ fall was to be realized. Having already Q1 Q2 03 04 Q1 02 03 04 lowered the Federal funds rate from 6V2 _____________1970________________________________1971 Digitized for FRASER3 40 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 341 Again, the System stepped up its provision operations affect reserves, interest rates, of nonborrowed reserves, in the process and the monetary and credit aggregates. reducing the Federal funds rate to 3% System open market operations have a per cent by the year-end. Nonetheless, direct and immediate effect on the non­ M1 did not respond quickly to changes in borrowed reserves of the banking system. open market operations (Chart 1). The response of the banks quickly affects The lagged response of Mx to open the Federal funds rate, as well as the level market operations in late 1970 and of member bank borrowings at the Reserve throughout 1971 underscored once again Banks, especially when the funds rate is the complexity of the linkages between at or above the Federal Reserve discount the Desk’s operations, on the one hand, rate. The change in the Federal funds rate and bank behavior, interest rates, finan­ produces a closely related change in other cial flows, and the asset choices of the short-term interest rates in reasonably public, on the other. An unusual oppor­ quick order. tunity for the study of these linkages Two channels carry this impetus for­ was provided, however, by the changes ward, exerting a pervasive influence on in thrust of open market operations during other interest rates and financial flows and the year. This report uses the background ultimately on economic activity. First, of the year’s developments to present a operations affect the interest rate expecta­ view of the process by which open market tions and investment decisions of banks 2 SELECTED INTEREST RATES PER CE 10 e 6 4 0 10 1970 1971 Federal funds, weekly average effective rate; Treasury bills, weekly average issuing rate; FHA mortgages, secondary market rate, tax-exempt, “Bond Buyer” 20-year index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN □ APRIL 1972 and other investors. The actions of these THE TRANSMISSION OF participants in the credit markets help MONETARY POLICY shape interest rate developments and in­ The execution of System open market fluence the rate of growth of bank credit. policy in 1971 involved both a day-to-day Second, short-term interest rates affect target for open market operations and a the public’s portfolio choices between procedure for modifying that target be­ market instruments and deposits at banks tween meetings in accordance with the and other institutions. (The main changes Committee’s intermediate-term objec­ in interest rates in 1970 and 1971 are tives. In 1971 the Committee continued shown in Chart 2.) to specify a desired range for the Federal System open market operations thus funds rate as the most important compo­ set in motion a complex portfolio adjust­ nent of the money market conditions to ment process. While the direction of be achieved by the Desk. Over the interval influence is clear, the timing and extent between meetings, the FOMC provided of the effects generated depend importantly guidance as to the appropriate Desk re­ on market expectations of the future and sponse to the behavior of the monetary the feedback of influence from the econ­ and credit aggregates and of interest rates omy itself. In 1971, both the broader in the capital markets. The Committee’s money supply (M2) and the credit proxy1 trade-offs between these objectives varied appeared to respond more quickly than over the year, but on balance the Com­ Mx to System-initiated changes in the sup­ mittee’s primary concern was with Mx. ply of nonborrowed reserves and the The Federal funds rate as a target. The Federal funds rate. Moreover, there were Committee’s use of the Federal funds apparently significant shifts in the public’s rate gave the Manager an objective that demand for in the course of the year, he could usually hold within reasonable making it most difficult, and probably in­ limits during the statement week. The appropriate, to achieve a steady quarterly Federal funds rate also is highly visible growth rate in M,. to member banks and the financial com­ The Committee from time to time took munity. The rate directly affects the profit account of both capital market conditions calculus of member banks, as it is the op­ and the behavior of the aggregates— portunity cost of marginal reserves. To chiefly Mx—in its directives to the Desk. others, changes in the Federal funds rate When Mx grew rapidly in the second serve as an early indicator of changes in quarter, concern about the capital markets the Federal Reserve’s willingness to sup­ moderated the speed and intensity with ply nonborrowed reserves to the banking which the Desk exerted upward pressure system. Thus, the banks and the financial on interest rates in the process of restrain­ markets quickly become aware of changes ing rapid monetary expansion. in the thrust of central bank operations. In shaping weekly money market strat­ egy, the Manager used two sets of forecasts 1M2 includes M, plus commercial bank savings and —being fully aware of the confidence time deposits other than large negotiable certificates of limits that attach to each. First, there was deposit. The adjusted bank credit proxy consists of total member bank deposits subject to reserve requirements the forecast of the likely level of excess plus nondeposit sources of funds, such as Euro-dollar reserves in the banking system, allowing borrowings and the proceeds of commercial paper issued by bank holding companies or other affiliates. for carryover excesses and deficiencies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 343 and discernible historical patterns. The A stream of information flows to the Desk’s experience with such forecasts Trading Desk each day, including data since mid-1971 suggests that average each morning on the reserve positions and excess reserves can usually be projected discount window borrowings of all mem­ within $50 million to $100 million for the ber banks for the previous day and on the current statement week, although there Federal funds and dealer lending opera­ are significant aberrations from time to tions of 46 major money market banks. time. With required reserves pre-estab­ This new information enables the statis­ lished under lagged reserve accounting, tician to adjust his projections for a devia­ realized total reserves will thus generally tion in reserves from his projected path. fall within $50 million to $100 million of It also gives the Desk insight into the the projected number. The second set of reserve management strategies of major weekly reserve projections involved the groups of member banks as revealed by factors affecting nonborrowed reserves— their cumulative excess or deficit reserve notably, Federal Reserve float, currency positions. But the Federal funds market in circulation, Treasury and international is the chief source of current information balances at the Reserve Banks, and the to the Desk on the behavior of nonbor­ like. The projection errors here are quite rowed reserves during the day. The sup­ large—principally because of unexpected ply/demand balance in that market shifts swings in Federal Reserve float. In 1971 as member banks react to incoming infor­ the average difference between the pro­ mation on their reserve positions or as jections of all such factors made at the their willingness to hold excess reserves New York Bank on the first day of the changes. Based on its expectations of statement week and the final outcome was likely levels of excess reserves, and on $275 million. projections of various reserve factors, the Faced with this degree of uncertainty, Desk can make reasonable judgments the Manager of the Open Market Account about how the money market should must make a daily judgment of the prob­ behave. Current information from the ability that attaches to his forecasts. Then, Federal funds market during the day then he must take action that will fit into an suggests whether nonborrowed reserves orderly program of supplying, or absorb­ are, in fact, behaving as expected. ing, nonborrowed reserves. There are often One can gain more appreciation of the market limitations on the volume of oper­ Desk’s need for a current indicator of non­ ations that can be conducted on a single borrowed reserves by examining the day. To the extent possible, the Manager behavior of nonborrowed reserves on Fri­ also seeks to avoid frequent reversals of days during 1971. Friday is a key day for outright market transactions in the inter­ the Desk since the reserve levels on that est of maintaining a smoothly function­ day carry over Saturday and Sunday as ing Government securities market. Repur­ chase agreements and matched sale/pur­ Repurchase agreements involve the System purchase chase transactions help to effect large of eligible securities or bankers’ acceptances from non­ temporary changes in nonborrowed re­ bank dealers under contracts that provide for their resale from 1 to 15 days later. Matched sale/purchase transac­ serves without exerting much influence tions involve a System sale of eligible securities that is on prices of securities.2 matched by a contract to repurchase them, usually a few days later. Such transactions are conducted with both 2Fornote, see opposite column. bank and nonbank dealers in Government securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN □ APRIL 1972 well, thereby accounting for three-sev­ RESERVE MANAGEMENT BY MAJOR enths of the weekly average. During MONEY MARKET BANKS 1971 the average absolute change in non­ PER CENT borrowed reserves on Fridays, exclusive FEDERAL FUNDS RATE I of System open market operations, was ^ 4 -I- + $434 million, but it required a band of + -+ t . ±$959 million to include 90 per cent of • HIGH -j -1- EFFECTIVE RATE the actual changes. The Federal Reserve ' LOW Bank of New York’s projections of non­ borrowed reserves anticipated a con­ 1 1 1 1 1 1 I 1 BILLIONS OF DOLLARS siderable part of this variation, but unex­ BORROWINGS I'ROM F.R. B1ANKS 4 pected variations remained quite large. 0 A band of ±$585 million was required - ■ to include 90 per cent of the deviations of EXCESS RESERVES M H 4 actual nonborrowed reserves (exclusive of System operations) from projected \ levels. The average absolute “miss” was $292 million. IB 19 22 23 24 26 21 30 1 NOVEMBER The Desk can anticipate member bank 1971 reserve strategy to some degree, but by Excess reserves are cumulative for 46 banks through previous no means perfectly. In 1971 there con­ day for current statement week. Dashed line indicates Thanks­ giving. tinued to be a strong tendency for a tight Federal funds market at the end of a state­ million reserve shortfall on Friday or of the ment week to increase the demand for large net reserve deficiency building up in excess reserves by major banks in the fol­ the banking system. The Desk’s injection lowing week, especially over the week­ of $2 billion of nonborrowed reserves in end. Conversely, an easy Federal funds 3 days—the maximum attainable in the market at the end of the week tended to be circumstances—was not sufficient to pre­ followed by a more relaxed attitude on the vent the Federal funds rate from rising well part of money market banks toward the above the 4% per cent desired. Member accumulation of reserve deficiencies over bank borrowings at the discount window the following weekend. The resultant also bulged to almost $2.4 billion on the variations in excess reserves were a major statement date, which preceded Thanks­ factor in an average week-to-week swing giving. Predictably, the 46 money market in excess reserves of $ 187 million. banks hoarded excess reserves over the The Desk was generally able to antici­ following weekend, accumulating $5.4 pate a major part of such swings in 1971, billion in excess reserves by Monday but the extent of the change was sometimes morning. In consequence, the Federal surprising. For example, in the November funds rate broke to as low as V* per cent 24 statement week (in which nonborrowed by the end of the week. The Desk’s will­ reserves were overstated by $400 million ingness to interpose only token resistance through a clerical error), the 46 major to this decline meant that the seesaw money market banks were willing to ac­ management of reserve positions by the cumulate a reserve deficiency of $3.0 banks proved expensive to them. Such billion over the weekend (Chart 3). The experiences tend to moderate the swings in Federal funds rate gave little sign of a $540 bank behavior. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 345 There is still another dimension of the economic program on August 15, the Desk’s weekly strategy that relates directly principal focus continued to be the aggre­ to the Committee’s use of the Federal funds gates, but the Committee made clear its rate as an important short-run target. expectation that lower interest rates would When the FOMC’s directive calls for a follow. In its August 24 meeting the Com­ Federal funds rate below the discount rate, mittee also authorized outright transac­ the Desk supplies nonborrowed reserves tions in Federal agency securities to widen abundantly and is quite tolerant of an easy the base of operations and add breadth to money market toward the end of the state­ the market for such securities. By late in ment week. This was notably the case in the year, strong emphasis was placed on the January-March interval and again in a resumption of growth in Mx. November and December. However, The Committee’s decision at each when the FOMC’s policy stance calls for meeting regarding acceptable behavior increasing the pressure on member banks of the aggregates was embodied in a track­ as in the April-August interval, the Desk ing path of weekly values for each of three typically allows the demand for reserves aggregates over the interval until the next to push up the Federal funds rate before Committee meeting and a path of monthly it supplies nonborrowed reserves. In such values over the quarter. The Committee’s periods, it is also quick to mop up reserve instructions to the Desk focused chiefly on excesses when the Federal funds rate be­ , currency plus demand deposits in the gins to slip below the desired range. In this hands of the public. Some weight was also way, the daily conduct of open market given to the behavior of M2 and the ad­ operations underscores the Committee’s justed credit proxy. The FOMC typically policy stance, and is one of the ways that indicated to the Desk whether it was more the System communicates its current concerned with upside or downside de­ policy intent to the banking system and viations. And it provided guidance on financial markets. occasion about the rapidity with which The pursuit of the Committee’s inter­ the Desk should respond. mediate objectives over the interval be­ For the Manager the pursuit of the Com­ tween meetings. In 1971 the FOMC con­ mittee’s intermediate objectives involved tinued to be concerned both with the two types of decisions. First, there was growth rates to be achieved in the mone­ the decision each week as to whether the tary and credit aggregates and with the targeted range of the Federal funds rate behavior of interest rates. Through the was to be changed in response to develop­ March 9 meeting, the Committee’s direc­ ments in the aggregates or in capital mar­ tives to the Desk called for pursuing kets. Second, there was an ongoing choice desired growth in the aggregates and for of the channels to be used in affecting non­ accommodating downward movements borrowed reserves. For example, the Desk in long-term interest rates. After a transi­ often employed purchases of Treasury cou­ tional directive in April, the primary pon securities as a means of both supply­ emphasis was placed on moderating the ing reserves and contributing, at least mar­ growth of the aggregates, but capital ginally, to the accommodative capital mar­ market developments remained an impor­ ket environment desired by the FOMC. tant conditioning element in the Desk’s Beginning in September the System began instructions as interest rates rose. After buying Federal agency securities from time the announcement of the President’s new to time in the normal course of operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN □ APRIL 1972 Each week the Manager decided on the the 5 per cent level prevailing before the approximate setting of the Federal funds December meeting. The Federal Reserve rate range for that week. These decisions discount rate had been lowered from were largely geared to the recent behavior 5% per cent to 5% per cent effective Jan­ of Mx and the other aggregates in relation uary 8. At the January 12 meeting, the to the weekly tracking paths. Each Friday Committee agreed to promote accom­ morning the Manager had before him a modative conditions and to moderate ex­ preliminary estimate of Ml5 M2, and the pansion in the monetary and credit aggre­ adjusted credit proxy for the preceding gates and called for some easing of money statement week and a revised report of each market conditions soon. There was also of the three for the week before that. There agreement that conditions would be eased were also two sets of revised projections of further if it appeared that the aggregates all three for the current month and calen­ were expanding at rates below those dar quarter—one by the Federal Reserve needed to make up the fourth-quarter short­ Board staff and one by the New York Bank fall in Mx. staff. The Manager and his associates at Following the meeting, the Desk aimed the Trading Desk gave less weight to the for a Federal funds rate around 4% per projections of behavior over the remainder cent. In the January 13 week, the aggre­ of the quarter since a sizable margin of gates appeared to be close to their respec­ error attached to them. tive tracking paths (Chart 4). Then, Mx The Desk’s response to a significant de­ fell far short of its path in both the January viation in M, rested on a number of con­ 20 and the January 27 weeks. In contrast, siderations. Under the FOMC’s instruc­ the credit proxy continued relatively tions the Desk was likely to move its strong, growing at an annual rate of 10 per weekly Federal funds rate objective more cent in January. quickly, and to a greater extent, if the latest deviation continued a cumulative departure from a path that had been under way for some time and seemed likely to persist. Second, the Desk might give some 6 weight to the behavior of M2 and the credit 5 proxy. Finally, the Manager had to fold 4 in the capital market element of his instruc­ tions, weighing the impact of the projected 3 ARS changes in the Federal funds rate on his 220 ability to achieve expressed Committee desires regarding long-term interest rates. 210 The experience after the meeting of the FOMC on January 12, 1971, illustrates the 200 0 factors typically encountered in setting 340 weekly targets. had grown at about a 3.5 per cent annual rate in the fourth quar­ 330 ter of 1970, compared with the 5 per cent 220 rate expected at the December 15 meeting ' 0 of the Committee. The Desk had responded to the shortfall by lowering the Federal funds rate to around 4% per cent from Treasury bills, average issuing rates; Federal funds, average effective rate. Aggregates are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 347 In the credit markets, expectations of a the banking system. With the willingness decline in interest rates had been reinforced of the money market banks to accumulate by a lA percentage point cut in the Federal excess reserves limited to the amount that Reserve discount rate to 5 per cent begin­ could be carried forward into the subse­ ning on January 19. Working in the same quent statement week, the Federal funds direction was the Trading Desk’s negotia­ rate responded quickly to the Desk’s tion of repurchase agreements with non­ action. The average effective Federal funds bank dealers at a rate below the discount rate for the February 10 week fell to 3.59 rate for the first time in 6 years and two lA per cent from more than 4 per cent the week percentage point cuts in the commercial before. bank prime lending rate. The capital mar­ The impact of System policy shifts on kets were experiencing a dramatic rally. the short-term market in 1971 .The System’s Corporate bond yields fell by about V2 of a management of nonborrowed reserves percentage point between mid-December has its initial impact in the market for and late January. The Treasury’s an­ bank reserves and the Federal funds mar­ nouncement of a refinancing of nine out­ ket and spreads quickly to the rest of the standing issues (of which $19.5 billion was short-term market. A key linkage in this held by the public) was greeted with such process is provided by the borrowing of enthusiasm that unprecedented first-day dealers in Government securities to carry premiums of 29/32 (bid) emerged for the their inventories, which ranged between two new issues being offered in the ex­ $2.5 billion and $7.3 billion, of Treasury change. and Federal agency securities during 1971. Against the background of the Commit­ The bank dealers are affected quite directly tee’s strong desire to get ML moving, the by the Federal funds rate since most bank Desk shifted its Federal funds rate objec­ dealer departments are charged at this tive down by V2 of a percentage point by rate for the funds employed in their opera­ the time the Committee next met on Feb­ tions. The nonbank dealers seek out repur­ ruary 9. The rate on 3-month Treasury bills chase agreements from corporations, State fell by about 85 basis points over the and local governments, and Federal agen­ interval between meetings to 3.82 per cent. cies as the least costly means of financing One could describe the Desk’s response their positions, but usually they must rely to the Mi shortfall in terms of nonbor­ on the banks as well. rowed reserves equally well. To keep the The sensitivity of dealer loan rates to Federal funds rate well below the discount the Federal funds rate assures that System rate involved supplying nonborrowed re­ open market operations have a rapid, and serves plentifully in relation to required roughly commensurate, impact on the reserves. Member bank borrowings at financing costs of the dealers in Govern­ Federal Reserve Banks, aside from special ment securities. This, in turn, affects the problem borrowing, declined to a negligi­ interest rates at which dealers are willing ble $5 million in the statement week that to hold Treasury bills and other short-term ended February 10. Required reserves re­ market instruments. To be sure, other fac­ flected the shortfall in the private demand tors also affect the dealers’ willingness to deposit component of Mx in the January position bills—notably the current and 20 and 27 weeks 2 weeks later—that is, in prospective demand for bills, the Treas­ the February 3 and 10 statement weeks. In ury’s bill financings, and expectations pursuit of a lower Federal funds rate, the of future interest rates. These keep the Desk pressed nonborrowed reserves on linkage between the Federal funds rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN □ APRIL 1972 and Treasury bill rates from being a simple modating a decline in long-term interest mechanical one. Still, changes in dealer rates. Then, from April through midfinancing costs exert such a strong and per­ August, the emphasis shifted to resisting vasive influence on Treasury bill rates— the rapid growth of then underway both directly and through their impact on within the constraints imposed by continu­ dealer expectations—that other factors ing concern about the capital markets. may modify but can seldom offset it over a Finally, with the President’s new economic period of weeks. The response of lenders program enhancing prospects for a higher and borrowers to changes in the Federal rate of real economic growth and reduced funds and Treasury bill rates assures a inflationary pressures, the System stepped rapid, if sometimes uneven, response of up the provision of nonborrowed reserves other short-term rates to the changing man­ as Mj slowed down. It thereby fostered a agement of nonborrowed reserves. (The climate of credit availability and lower transmission of effects to the market for interest rates that was largely free of fears longer-term securities is treated later in this that excessive demand and inflationary article.) pressures would soon revive. As noted earlier, the System’s manage­ January through March. In the first quarter ment of reserves during 1971 can be of the year, the Committee sought to make divided into three phases. During the first up the shortfall of M, in the fourth quar­ 3 months, the System was pressing non­ ter of 1970 when it was believed to have borrowed reserves on the banking system grown at a 3.4 per cent annual rate,3 com­ to increase the growth in Mx while accom­ 3Revised in November 1971 to 3.8 per cent. MONEY MARKET CONDITIONS and weekly forecasts of quarterly GROWTH OF THE AGGREGATES, December 1970-March 1971 MILLIONS OF DOLLARS 1000 2 6 16 23 13 20 27 3 10 17 24 10 17 24 31 DECEMBER JANUARY FEBRUARY MARCH * First week projected. Forecasts at seasonally adjusted annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 349 pared with about 6 per cent in the first three the Desk found it increasingly difficult to quarters of 1970. The FOMC also called make repurchase agreements with nonbank for accommodating the fall in long-term dealers at the discount rate. Accordingly, interest rates through open market opera­ the Desk lowered the rate on repurchase tions. agreements to 5 per cent on January 20 in The Trading Desk experienced little order to be able to continue using this valu­ conflict in pursuing the FOMC’s dual ob­ able means for injecting reserves for short jectives during the first quarter, although periods. This cut in the repurchase rate Mi continued weaker than desired in brought it below the discount rate for the January. After the January 12 FOMC first time in 6 years, and gave rise to market meeting, the Desk’s initial target range expectations of a further cut in the dis­ for the Federal funds rate centered on 4% count rate. Subsequent reductions brought per cent. As noted earlier, M, began in late the rate on repurchase agreements to 4 lA January to fall short of the Committee’s per cent in early February and to 3% per tracking path. This led the Board staff to cent on February 18. (The discount rate revise downward its projection of the was cut to 43A per cent, effective February growth likely to be achieved over the 13.) Market observers soon recognized quarter (Chart 5). The Desk responded that the rate was being adjusted lower to the shortfall by lowering its Federal routinely to keep it competitive with lower funds rate objective to around 3% per cent market rates, but bullish sentiment tended by the time of the February 9 meeting. The to be encouraged nonetheless. Committee’s next directive called for a The decline in the Federal funds rate 1 prompt response to any further shortfall, brought dealer lending rates in the New and the Desk lowered the center of the York City banks down from around 5% desired range to 3 Vi per cent on February per cent in early January to about 3% per 12, when incoming data suggested such cent in early March. The downward pres­ a result. By the Committee meeting on sure this exerted on Treasury bill rates was March 9, Mx was showing a bit more augmented by strong demand from foreign strength, suggesting that the fourth-quarter central banks and the Federal home loan shortfall might well be made up. Soon banks in February and early March. At afterward, both M1 and M2 began to show this point, many market participants also somewhat more rapid growth than de­ strongly expected interest rates to con­ sired. Accordingly, the Desk sought to tinue to decline. In this environment the foster a shade less accommodative money Treasury’s offering of a strip of $1.2 bil­ market conditions—a Federal funds rate lion of weekly maturities was snapped up centering on 3Vi to 33A per cent. In the without any lasting effect on rates. The event, however, the Federal funds mar­ 3-month bill rate fluctuated narrowly ket became tighter than desired in spite of around 3% per cent through most of Desk action, with the rate rising to 4 per March, compared with the 4% per cent cent or above on a number of days in mid­ rate prevailing in December. Over the March and again around the end of the January-March interval, rates on 60- to month. 89-day CD’s, 30- to 89-day finance com­ As the Federal funds rate was reduced pany paper, and 90-day Euro-dollars fell in the first quarter, dealers were able to generally by about 13A percentage points borrow at rapidly declining rates—espe­ to the vicinity of 3% per cent, 3 Vi per cent, cially from nonbank sources. As a result, and 5% per cent, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN □ APRIL 1972 The low level of short-term rates led to $1,027 million of such securities to the official concern about short-term money System’s portfolio in the 7 weeks that outflows to the rest of the world. On ended March 31, including $195 million March 16 the Treasury announced that it of issues maturing in over 10 years. The would add $5 billion in three segments System’s repeated entry into this market, to the supply of bills outstanding. Unde­ at a time when it was also supplying non­ sired firmness in the Federal funds mar­ borrowed reserves at a pace that pushed ket contributed to a rise in rates that car­ short-term rates down, contributed to the ried the 3-month rate to 3.70 per cent just ability of the corporate bond market to dis­ before the FOMC’s April 6 meeting. The tribute an unprecedented volume of offer­ rise was cushioned, however, because ings in March at declining rates. By the Government securities dealers increased end of March, yields in all sectors of the their bill positions by $2.6 billion in the bond markets were again at or close to 2 weeks ended April 7. their lows for the year. Yields in the long-term capital markets April through mid-August. At the FOMC moved briskly lower in the opening meeting on April 6, staff analysis sug­ weeks of the year. New Aaa-rated cor­ gested that if prevailing money market porate bonds declined to around 6% per conditions were maintained, Mi would cent by late January, down almost a full grow somewhat faster over the second percentage point for the month. Municipal quarter than the 8 per cent rate then bond yields declined by about % of a estimated for the first quarter. The staff percentage point. The decline in yields expected a moderation of the rapid brought an influx of new issues to the growth rates of M2 and the credit proxy corporate bond market, however, with the recorded in the first quarter—17.5 per 4-week visible supply rising from $1.5 cent and 11 per cent, respectively. The billion to over $3 billion between mid- Committee decided that some minor firm­ January and mid-February. Yields on new ing of money market conditions was in corporate issues rose appreciably in Feb­ order. Some members favored this to ruary (Chart 2), while municipal bond help achieve less-rapid growth in the yields retraced only a part of their monetary aggregates; others placed the earlier declines. Long-term Government emphasis on narrowing the interest rate yields rose in February in sympathy with differential between this country and the competitive corporate market, but abroad. The directive called for continu­ intermediate-term yields continued to de­ ing the purchase of coupon issues in the cline as the System supplied nonborrowed interest of promoting accommodative reserves freely and short-term rates fell. conditions in long-term credit markets. Against this background and under the System open market operations initially Committee’s instruction to accommo­ sought to establish the Federal funds rate date declining long-term interest rates, the in the upper part of a 3% to 4 per cent Desk supplied the major part of its long­ range. Incoming data soon showed that term provision of reserves during the first both Mj and M2 were $2 billion in excess quarter through the purchase of Treasury of their tracking paths and subsequent coupon issues. The strong demand pres­ data confirmed the strength, especially sures evident in the bill market provided for Mi. Accordingly, the Desk raised the still another week-to-week reason for center of its Federal funds rate range to buying coupon issues. The Desk added about 4V4 per cent. The pattern of April Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 351 MONEY MARKET CONDITIONS and weekly forecasts of quarterly GROWTH OF THE AGGREGATES, April-August 1971 MILLIONS OF DOLLARS PER CENT 1000 ii 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 ______________APRIL_________________MAY____________________JUNE___________________JULY___________AUGUST Forecasts at seasonally adjusted annual rates. persisted through May and June. Despite a It could only try to foster an orderly adjust­ successive rise in the targeted range of the ment in the credit markets to a number of Federal funds rate, staff projections of the disturbing influences. The shift in the second-quarter growth in M, (Chart 6) System’s money market targets dashed continued to exceed the FOMC’s objec­ existing expectations that still lower in­ tives. And as Mx continued to come in terest rates lay immediately ahead. The higher week by week than its tracking path, rapid growth of M, and the continuation the Desk kept raising its sights for the of price increases in a sluggish economy Federal funds rate. By the end of June the raised fears that inflation would remain rate was back to 5 per cent, around the level a major economic problem with adverse of late December. But Mx grew at a 10.6 consequences for the bond market. Mar­ per cent annual rate in the quarter, com­ ket participants were deeply disturbed by pared with 9.1 per cent in the first quarter. the lack of Government action to deal with In contrast, both M2 and the credit proxy persistent inflation. And finally the massive grew more moderately—at rates of 12.4 speculative flow into Germany in early per cent and 8.4 per cent, respectively, May before the mark was allowed to compared with rates of 18.1 per cent and float suggested to many that higher in­ 10.9 per cent in the first quarter. terest rates would be required in the The System’s reponse to the overruns in United States for defense of the dollar. Mj in the second quarter was conditioned The reaction in the credit markets was by the Committee’s concern for the long­ sharp. Yields on new Aaa-rated corporate term credit markets. But the Desk could bonds rose by about 1 percentage point not avoid spillover effects on interest rates. to over 8 per cent in the 6 weeks that ended Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN □ APRIL 1972 in mid-May. The Weekly Bond Buyer’s after having been held down earlier in 20-bond index of 20-year municipal bonds May by concentrated foreign central rose a like amount to around 6 per cent. bank buying as a result of the flow of funds Both series retreated to the levels of to Germany. By comparison with this November 1970. In the Treasury market, % of a percentage point rise in 3-month long-term yields rose by V2 of a per­ bill rates over 8 weeks, rates on 60- to centage point to around 6V4 per cent under 89-day CD’s advanced by just over 1 per­ the special pressure of the Treasury’s centage point and those on 30- to 89-day May financing and the liquidation of short­ finance company paper by 1% percentage term positions by dealers and trading points. Reflecting borrowing for exchange banks. (A fuller discussion of the mecha­ speculation, rates on 3-month Euro-dollars nism through which monetary policy is rose sharply during early May, subsided, transmitted to the credit markets is given and then rose again at the month-end to later.) In contrast, the implicit yield on 7Vi per cent, more than 2 percentage Government-underwritten mortgages in points above their end-of-March level. the Federal National Mortgage Associa­ As the Federal funds rate was pushed tion’s (FNMA) biweekly auction of pur­ up to around the 4% per cent discount chase commitments rose by only about rate in the second half of May, it became XA of a percentage point, remaining about a less-reliable indicator for a time of the IV4 percentage points below the Novem­ degree of adjustment pressure being ber 1970 level. exerted on the banking system by open Against this background the Desk’s market operations. With the Desk hold­ shift in its target for the Federal funds rate ing back on the provision of nonborrowed was gradual—from about 4 Vs per cent reserves to nudge the Federal funds rate after the FOMC’s April meeting to 4Vi still higher, member banks responded by per cent by mid-May. The Manager’s turning to the Federal Reserve discount reports to the Committee at the time in­ window. Such borrowings (exclusive of dicated that market conditions were problem borrowing) had remained at a very limiting his response to the overrun in low level, while the Federal funds rate was Mj. This meant that nonborrowed re­ raised from 3 Vi per cent to 4V2 per cent. serves were growing faster than an un­ But they rose to an average of $242 constrained Mj target would have called million in the last two statement weeks in for. But the turmoil in the credit markets May and then to $627 million in the last —notably, in the Government securities 2 weeks of June. Nonborrowed reserves market—pointed to a much more funda­ actually declined in June, while the Federal mental change in the portfolio strategy funds rate moved only % of a percentage of banks and other investors than the point higher. In turning to a privileged modest change in money market rates source of reserves, banks did not exert as might suggest. The Federal funds rate much pressure on the Federal funds rate as at such turning points hardly reflects the in the preceding 2 months, but the impact full effects on the banking system of a on bank attitudes may well have been shift in central bank direction. as great, perhaps greater. Short-term interest rates reflected the Dealer financing costs rose modestly changes in the Federal funds rate. The rate in June in tandem with the Federal funds on 3-month Treasury bills rose to around rate, but Treasury bill rates rose rather 4% per cent in the second half of May, rapidly. The 3-month rate rose by % of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 353 percentage point to around 5lA per cent, higher in August. Member bank borrow­ while the 1 -year rate rose more than a full ings from the Reserve Banks rose some­ percentage point to 5.84 per cent. Con­ what further on average, but the Federal cern over progressive System firming was funds rate became more responsive to augmented by fears of heavy Treasury Desk action than in June. (The Federal financing. There were also bill sales by Reserve discount rate was increased from the German central bank at the time. While 4% per cent to 5 per cent, beginning July other short-term rates rose considerably 16.) After mid-July the Board staff began less, yields on Treasury coupon issues to revise downward its projections of Mx maturing in 3 to 5 years rose by about growth in the third quarter on the basis of l/i of a percentage point as banks and incoming data. Even so, the projection dealers continued apprehensive about the of 8.5 per cent growth on August 12 re­ outlook for interest rates. In the longer- mained appreciably faster than the Com­ term markets, corporate bonds moved nar­ mittee desired, and it continued to main­ rowly after mid-May as the forward tain its higher Federal funds rate objective. calendar began to recede. Municipal Most short-term rates rose in July and bonds worked a bit higher in yield as held steady in August, while long-term bank buying declined, and implicit mort­ yields continued to edge higher. Treasury gage yields moved up by Vi of a percent­ bill rates began to come under strong age point in the FNMA auctions between downward pressure in August, when for­ mid-May and mid-June. eign central banks sought to invest the When the FOMC met on June 29, the rising tide of funds flowing to them as staff projected that Mx and M2 would speculation against the dollar mounted to expand at annual rates of 9 per cent over massive proportions in the exchange the third quarter, even if money market markets. conditions were somewhat firmer. The August 15 through December. The Pres­ staff felt, however, that growth in these ident’s new economic program altered aggregates would recede to quite modest fundamentally most forecasts of the eco­ proportions late in the year. Committee nomic outlook and the expectations of members were concerned about both the investors about the future course of in­ rapid growth in the monetary aggregates terest rates. At hqme the institution of a and the recent upward pressure on interest wage-price freeze and the promise of an rates, in view of the dependence of the incomes policy encouraged economists to recovery on such interest-sensitive sec­ believe that the tax stimuli of the program tors as housing. While there was agree­ would both increase real growth and ment that an unduly sharp firming should reduce the rate of advance in prices. The be avoided because of the risk to market suspension of dollar convertibility and interest rates, the Committee decided that the imposition of the temporary 10 per cent open market operations should be directed import surcharge marked new initiatives at achieving more moderate growth in the that raised hopes of progress on the Na­ monetary aggregates over the months tion’s long-standing balance of payments ahead. problem. On both domestic and inter­ The Desk once again found Mx moving national grounds, market observers quick­ above its tracking path and responded by ly concluded that the monetary authori­ pushing the Federal funds rate up to around ties would have considerably greater 5 Vi per cent after mid-July and a shade freedom to pursue a more stimulative Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN □ APRIL 1972 monetary policy over the next year or so. which foreign demand had pushed them, Long-term interest rates declined sharply partly because of fears that foreign cen­ as market participants scrambled to re­ tral banks might become sellers in the establish the speculative positions liqui­ future. There was also a temporary rise dated earlier. Short-term interest rates in bond yields. By mid-September the declined to a lesser degree with the ex­ weakening in Mx that had begun de­ ception of Treasury bill rates, which had veloping in late August began to become already been moving lower on heavy visible to the general public. With the foreign central bank demand. When the staff’s projection for the quarter down to FOMC met on August 24, the 3-month 5 per cent, the Trading Desk shifted the bill rate was 4% per cent, 40 basis center of the Federal funds rate range points lower than on August 13 and 71 down to 5V4 to 5V2 per cent on the eve of basis points lower than on the eve of the the Committee’s September 21 meeting. Committee’s previous meeting. The more generous provision of non­ The Committee’s staff tentatively con­ borrowed reserves led to a prompt de­ cluded that the new economic program cline in member bank borrowings at the would raise real growth and dampen infla­ discount window, even before there was tion in the rest of 1971. The staff also much effect on the funds rate. felt that the maintenance of existing Over the last quarter of the year the money market conditions would moderate Committee was increasingly concerned the growth in M, to an 8 per cent rate with the persistent sluggishness in M1. in the third quarter and substantially less As new data came in week by week, pro­ in the fourth quarter. M2 was expected to jections of its growth were revised irregu­ grow more slowly in the last half of the larly downward (Chart 7). The Desk year than in the second quarter, while the responded to the shortfalls in M, below credit proxy was expected to grow some­ successive paths by reducing the center what faster than the 6.5 per cent second- of its Federal funds rate range repeatedly, quarter rate. The Committee felt that the to about 3% per cent by late December ultimate consequences of the new program from 5V2 per cent in mid-September. (The for monetary policy could not yet be Federal Reserve discount rate was reduced assessed with assurance and that any by lA of a percentage point, first on marked change in policy would be pre­ November 11 and then again on Decem­ mature. There was particular concern that ber 13, bringing it to 4% per cent.) The any easing of money market conditions fourth-quarter growth in Mx turned out to be in response to clear public evidence be 1.1 per cent at an annual rate, bringing that the monetary aggregates were, in fact, growth over the year to a 6.2 per cent slowing down. rate. M2 and the credit proxy closed with The Desk sought to maintain the Federal quarterly growth rates of 8.0 per cent and funds rate in its recent range after the 9.7 per cent, respectively, and annual meeting, but unusual reserve pressures growth rates of 11.1 per cent and 9.5 around the Labor Day holiday led to per­ per cent, respectively. sistent trading at 5% per cent, somewhat The decline in the Federal funds rate firmer than desired. Treasury bill rates over the last quarter was accompanied rebounded somewhat around mid-Septem­ by a further decline in member bank bor­ ber from the artificially low levels to rowings at the Reserve Banks—aside Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 355 MONEY MARKET CONDITIONS and weekly forecasts of quarterly GROWTH OF AGGREGATES, August-December 1971 MILLIONS OF DOLLARS PER CENT 1000 WEEKLY FORECASTS OF GROWTH M j l i n n ■ - __________________— i.____________— _ — ■■■■■ m2 :rw ^n rL n m n n n ADJUSTED BANK CREDIT 8lf'B.iffl til HIM II 1 ■ ■ ■ ■ m i l l i i . n 18 25 1 8 15 22 Forecasts at seasonally adjusted annual rates. from some unusual stresses that developed CD’s declined by IV2 percentage points to around the Thanksgiving Day holiday and about 4 per cent. on some other isolated occasions. By Treasury bill rates continued to be de­ early December, member bank borrow­ pressed relative to other short-term rates ings were again close to a frictional mini­ by persistent demand for bills from for­ mum as open market operations pushed eign countries trying to retard the appre­ the Federal funds rate below the discount ciation of their currencies against the rate. As usual, dealer lending rates at the dollar. In the intermediate Treasury mar­ New York City banks followed the Fed­ ket, yields dropped from 6 per cent in late eral funds rate down, but most other September to 5% per cent in early Novem­ short-term rates tended to anticipate the ber, and banks and Government securi­ System’s actions. With business loan ties dealers built up massive positions demand notably slack, commercial banks during the Treasury’s November refund­ cut their prime lending rate from 6 per ing. In this situation, the Desk resorted to cent in late September to 5% per cent at heavy purchases of Treasury coupon the year-end, and a number of banks began issues, and moderate purchases of Federal experimenting with a floating prime rate agency issues, in supplying seasonal related to open market rates on commer­ reserve needs in late November and early cial paper. The rate on 90- to 119-day December. These purchases helped cush­ prime paper declined by 1% percentage ion the upward pressure on interest rates points over the quarter to 4% per cent at of the overhang of undistributed Treasury the year-end, and the rate on 60- to 89-day securities and avoided adding to the down­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN □ APRIL 1972 ward pressure on bill rates from foreign sidual. While many banks probably em­ buying. Over the quarter, purchases of ploy this general approach, a large num­ Treasury coupon issues amounted to $858 ber of sophisticated banks recognize that million while $389 million of Federal they have considerable leeway to manage agency purchases'brought that portfolio their liabilities so that their lending and up to $485 million at the year-end. investment decisions need not be con­ Long-term interest rates worked gen­ strained by near-term deposit flows. The erally lower over the final quarter. The aggressive bank can readily increase its corporate bond market successfully liabilities, and assets, within limits by worked through a heavy November recourse to the Federal funds, CD, and calendar with some rise in yields. But by Euro-dollar markets if loan and investment the year-end the yield on Aaa-rated issues opportunities offer profitable prospects. was about 1XA per cent, down about 88 To some degree, these banks in the aggre­ basis points from mid-August and 35 gate can also fall back on borrowings from basis points on the year. Municipal bonds the discount window if the Desk provides moved to new low yields for the year in nonborrowed reserves sparingly. October, but gave up about half of the What the Desk’s operations do affect post-August improvement before yields is the opportunity cost of reserves to all turned down again in December. At the banks—through either Federal funds or year-end, the Bond Buyer’s index of 20 close alternatives. As these effects feed municipal bonds stood at 5.02 per cent, back over subsequent weeks and months down 101 basis points from mid-August to affect bank decision-making and the and 56 basis points from a year earlier. loan demands and asset preferences of Implicit mortgage yields in the FNMA bank customers, aggregate bank credit and auction of 4-month purchase commit­ the various measures of the money supply ments declined gradually to 7.63 per cent begin to be affected. Even then, such in mid-December, compared with rates of external forces as shifts in business de­ 8.07 per cent on 3-month commitments mands for loans and for demand deposits auctioned in late July and 8.51 per cent can exert powerful influences tending to in mid-December 1970. delay or speed up the response of the The transmission of monetary policy banking system to System-engineered to bank behavior and interest rates. changes in the marginal cost of reserves. In contrast to the close relationship be­ In 1971 a major part of the System’s tween the Desk’s provision of nonbor­ impact on bank credit and interest rates rowed reserves and the rates on Federal in the capital markets came through the funds and various short-term instruments, changes it set in motion in the investment the linkages between System open mar­ strategies of major banks, Government ket operations, bank behavior, and long­ securities dealers, and others. Business de­ term interest rates are more complex and mand for bank loans was notably quiescent the reaction time may either be quite short during the year in contrast to the dynamic or extend over several months. One can strength of some earlier years, which hypothesize an orderly process in which had had such a strong impact on bank banks project deposit growth and loan behavior and bank balance sheets. An demands, based on a particular eco­ increasing number of banks turned to nomic and financial outlook, with port­ aggressive portfolio management as well folio strategy emerging largely as a re­ as to increased mortgage and consumer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 357 lending in their efforts to maintain or boost professionals probably have a profit hori­ earnings in an environment of generally zon no longer than 2 to 4 months in taking lower interest rates. Expanded short-term major positions in intermediate- or longertrading in Government, Federal agency, term debt securities. and municipal issues had already been Adding to the extreme sensitivity of spurred by the 1969 revisions in the tax participants in the market is the highly laws, which essentially removed the fa­ leveraged nature of their operations. vorable treatment formerly given long­ Nonbank dealers in Government securi­ term capital gains. Since that time, ties often hold securities equal to 15 or securities trading has been much less 20 times net worth, so that a 2 per cent inhibited by tax considerations than pre­ fall, or rise, in the market value of their viously, when the alternation of profit and assets would lower, or raise, their net loss years often dominated bank portfolio worth by one-third. Accordingly, these activities. firms are likely to react quickly to pro­ The short-term nature of securities specu­ tect their capital if interest rates rise lation. In moving to a more aggressive contrary to their expectations. Their portfolio strategy, the trading banks capital can be seriously impaired if they markedly shortened their time horizons misjudge the direction or even the timing for trading. In 1970 and 1971 many banks of changes in rates. Conversely, the set up securities trading operations, which successful anticipation of a decline in were often separate from their normal interest rates offers the prospect of sub­ investment activities. The trading ac­ stantial capital gains. Bank dealers in counts sought to profit from price swings Government securities undertake similar over a few weeks or even days, as well as risks—comparable in kind, if not gener­ by taking speculative positions when in­ ally in degree, to that taken by the non­ terest rates were expected to move lower bank firms. over the next 2 or 3 months. In effect, The System’s influence on securities trad­ these banks joined the professional under­ ing. The System exerts its impact on the writers of Treasury, Federal agency, and interest rate expectations and portfolio municipal debt issues in trying to antici­ commitments of dealers, trading banks, pate the course of interest rates in order and others through the policy actions, to make short-term profits. speeches, testimony, and informal con­ The investment strategy of trading tacts of System officials with the financial banks, Government securities dealers, and community and through the conduct of other short-term holders depends upon the open market operations under the expectations of these groups concerning FOMC’s directives. Market participants the behavior of interest rates over the next analyze Desk actions to gain an idea of several months. These professional in­ the desired Federal funds rate range or vestors are keenly sensitive to any sugges­ other FOMC objectives. The rate serves tion from their analyses pointing toward as an indicator of the System’s desired changes in monetary or fiscal policy, or throttle setting for the provision of non­ any other factors that might affect the borrowed reserves to the banks. The interest rate outlook. Their common ob­ Desk’s purchases of coupon issues, while jective is to anticipate the movement of accepted as a normal instrument of open rates before the general body of bank market operations, at times tend to be and nonbank investors. Most of these regarded in the market as efforts to re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDERAL RESERVE BULLETIN □ APRIL 1972 lieve supply pressures and hence serve emerged with almost $1.9 billion more to encourage rate declines or discourage over-1-year securities than they held on increases. In the past 2 years, market par­ September 30. (The net positions of other ticipants have followed closely the be­ holders declined by a like amount.) In havior of Mx as likely to foreshadow the final 6 weeks of the year, yields de­ changes in the System’s weekly targets. clined another % of a percentage point to The importance attached to this indicator around 6 per cent as the Trading Desk pur­ reflects the increased significance given chased $536 million of over-1-year securi­ to it by the FOMC. ties—essentially from the positions of the The System’s changing policy thrust in dealers and weekly reporting banks. 1971 was clearly reflected in the way in After the turn of the year, market ex­ which Government securities dealers and pectations of a further decline in interest weekly reporting banks managed their rates were still strong. The Trading Desk holdings of Government securities matur­ was aggressively pushing the Federal ing in over 1 year. And the shifts in these funds rate lower and the sluggish be­ holdings gave major impetus to changes havior of M, in the fourth quarter en­ in interest rates on intermediate-term couraged professional investors to expect Government securities during the past 15 continuing ease. As interest rates fell months. further, dealers built up their positions in In the fourth quarter of 1970 the non­ over-1-year issues by about $1 billion bank dealers and the weekly reporting to a record $2 billion near the end of banks used the Treasury’s November January and then distributed most of the financing (announced on October 27) as increase at rising prices to banks and others the occasion to add heavily to their posi­ over the next 3 weeks. Thus, they ac­ tion in over-1-year securities (Chart 8). counted for little of the $4.1 billion net Yields on 3- to 5-year Government issues rise in such debt outstanding in public dropped by Vz of a percentage point by hands after the year-end as a result of the mid-November as these two groups financing. Weekly reporting banks in­ creased their holdings of over-1-year o U.S. GOVERNMENT SECURITIES- issues by over $1.5 billion while other 0 INTEREST RATES, HOLDINGS, AND SYSTEM PURCHASES public holders, which had reduced such PER CENT holdings by $1.3 billion in the fourth quarter, added $2.6 billion of these issues. After mid-February, interest rates tumbled still further. Desk purchases of $687 million of over-1-year securities con­ tributed to a further steep decline in in­ terest rates, which carried the 3- to 5-year rate down to 4% per cent by mid-March. The Committee’s decision on April 6 to move toward firmer money market conditions, and the Desk’s response to continuing overruns in Mx during April, led to a drastic revision in interest rate expectations. System purchases of $196 9/30 11/18 12/30 2/17 3/31 5/19 6/30 8/18 9/29 11/17 12/29 1970 1971 million of over-1-year issues in the April Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 359 14 statement week took a portion of the and then to relieve positions when market securities being pressed for sale. But the uncertainties about Phase II developed yield on 3- to 5-year issues rose in in September. Most of the strong impetus almost a straight line to 6Va per cent by to lower interest rates came, however, mid-May as the dealers and weekly report­ from strong expectations about what ing banks together reduced their posi­ future System policy would be rather tions by about $700 million. The rise of than from observed open market opera­ W2 percentage points in yield was more tions. There was also renewed hope that than double the increase in the Federal the new incomes policy would dampen funds rate over the interval. Concern over inflation. the rapid growth of Mu the persistence As October progressed, market par­ of inflation and discouragement over Gov­ ticipants saw the Desk move the Federal ernment leadership in this area, and the funds rate downward successively, in line international monetary situation reinforced with their expectations. The sluggish be­ expectations of higher rates. havior of Mx and lackluster business At the higher interest rates, other in­ news reinforced expectations that a still vestors were willing to absorb still another more expansive System policy would be $800 million of over-1-year issues from forthcoming. The weekly reporting banks these two groups over the next 3 weeks. joined the Government securities dealers At the end of the second quarter, the in adding to positions in October, pushing Government securities dealers had almost yields on 3- to 5-year issues down about eliminated their inventories of over-1-year V2 of a percentage point in the process. issues while the weekly reporting banks At the lower yields, tremendous enthu­ held $200 million less than 3 months siasm developed among all investors in earlier despite a build-up of over $ 1 the Treasury’s pre-refunding in late billion in late June by virtue of a Treasury October. Accordingly, the over-1-year note financing. In the 6 weeks that pre­ positions of dealers were $2.1 billion ceded the President’s mid-August pro­ higher on November 17 than at the end gram, the weekly reporting banks (ex­ of September, and the weekly reporting clusive of the bank dealers) again turned banks showed a similar increase. Other to cutting their inventories as Mx con­ public holders, which had been selling tinued to grow and the Desk continued to earlier, also subscribed heavily so that resist by pushing up the Federal funds their positions rose by $5.6 billion. Not rate. However, by the time of the Treasury surprisingly, this enormous overhang of financing in late July, both the dealers and new securities exerted some upward the weekly reporting banks appeared pressure on yields, despite the continued ready to assume some underwriting risk at easing of money market conditions by open the higher yields. market operations and two cuts in the The dealers responded to the President’s Federal Reserve discount rate. However, program by bidding up prices actively in System purchases of $824 million of the course of rebuilding their speculative over-1-year Treasury coupon issues dur­ positions by $600 million in over-1-year ing the last 7 weeks of the year largely issues in the 4 weeks ended September 8. contained the upward pressure. There was System open market purchases of $346 also relief at the absence of foreign selling million in late August and September of Treasury bills, and yields were again helped first to foster the decline in rates tending lower at the year-end. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN □ APRIL 1972 The effect of bank investment strategy on loans also spurted in August as corpora­ bank credit. The shifts in bank and dealer tions moved funds abroad. With the swing behavior triggered by monetary policy in expectations brought by the President’s left an important trace on bank credit as program, bank investments in municipal well as on interest rates. First, the loan and Federal agency issues spurted over the demands of Government securities deal­ last 4 months, and lending to securities ers and other underwriters provided an dealers also rose substantially. However, exogenous credit demand. Then there was the banks’ net acquisition of short-dated the aggressive pursuit of short-term gains Treasury issues was less than seasonal as by banks—in tax-exempt and Federal foreign central banks financed most of the agency as well as Government issues. In Treasury’s seasonal need. Mortgage and this way, a major part of the outpouring consumer loans continued to grow at a of new securities by these issuers was good pace, but business loans relapsed underwritten by the dealers and trading into quiescence. banks and more solidly placed over time with the banking system. The major banks BANK CREDIT, MONEY SUPPLY, AND financed the dealers and their own posi­ BANK CREDIT PROXY tions in part through the issuance of CD’s BILLIONS OF DOLLARS BILLIONS OF DOLLARS and other short-term liabilities. The Sys­ 310 tem’s pursuit of aggressive ease early 180 in the year also provided a sharp rise in bank time deposits as individuals switched from the Treasury bill market. When the dealers and trading banks sharply reduced their underwriting positions in the April- August period, there was corresponding pressure on the growth in bank liabilities— through a reduction in their financing needs and reduced switching of savings from the markets to the banks. The three main phases of System policy stand out clearly in Chart 9. In the fourth quarter of 1970, in which Mj was growing slowly, bank portfolios and dealer loans SEPT. DEC. JUNE SEPT. 1970 ___1971 were growing rapidly. The pace of port­ Loans are at all commercial banks. folio growth accelerated in the first quarter of 1971 to an annual rate of 14 per cent, The System-induced swings in invest­ more than compensating for some decline ment strategy and in bank intermediation in dealer lending. Loan growth was com­ were also reflected in the behavior of total paratively sluggish. In the 5 months that liabilities during the year. As the System ended in August, there was a marked de­ pushed short-term rates lower in the cline in the growth of bank investments fourth quarter of 1970, the adjusted credit while dealer lending fell still further. proxy rose at a 7.8 per cent annual rate Loan growth picked up in this period— in that quarter and M2 at an 8.8 per cent chiefly because of the growth in consumer rate, while M, grew at a 3.8 per cent rate. and mortgage loans, although business In the first quarter of 1971, M2 grew at an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES 361 18.1 per cent rate while the proxy rose at a tion and unemployment was high, and re­ 10.9 per cent rate, as banks used the duced later in the year after the President’s System-induced inflow of time deposits new economic program raised hopes of to replace Euro-dollar and other high- progress on both these fronts. cost liabilities. Mt grew at a 9.1 per cent Recent experience suggests that Mx re­ rate in the first quarter. In the 5 months sponds only slowly to the changes in non­ ended in August, the proxy slowed down borrowed reserves and the Federal funds to about an 8 per cent growth rate, re­ rate initiated by System open market flecting the System’s posture of increasing operations. To be sure, the decline in the restraint on reserves with its associated Federal funds rate from October 1970 to change in the banking system’s cost/profit February 1971 was followed by a more calculus. The System-induced rise in rapid growth of Mx beginning in Feb­ short-term interest rates also cut back on ruary. And the rise in the Federal funds the switching of funds from marketable rate from March to August was followed securities to the banks and M2 growth by a retardation of growth in Mx in slowed to a 9.6 per cent annual rate. August. But the lag in the response of The growth in M, continued strong at M, appears rather long, perhaps on the 9.1 per cent. Finally, in the last 4 months order of 4 to 6 months, although inde­ of the year, as the System pressed short­ pendent shifts in the public’s demand term rates lower, time deposit growth schedule for Mx during the period may speeded up sharply. The bank credit proxy well have distorted Mt’s actual response grew at a 9.3 per cent rate over the in­ to System operations. terval, and M2 at a 6.7 per cent rate. Mx, On the other hand, both M2 and the however, slowed to a 0.3 per cent growth credit proxy were reasonably sensitive to rate. the System’s influence, exerted through short-term interest rates. The time and SOME LESSONS OF THE 1970-71 savings deposits included in M2 responded EXPERIENCE to System-initiated changes in the attrac­ The divergent behavior of the monetary tiveness of such deposits relative to and credit aggregates during the recent short-term marketable securities. The past provides additional evidence on the adjusted bank credit proxy—which in­ Committee’s continuing problem of spec­ cludes CD’s, Euro-dollars, and Treasury ifying the intermediate-term objectives deposits—incorporated the member bank of open market operations. The fluctuating response both to these savings inflows behavior of made it a peculiarly elu­ and to the changing interest rate outlook sive target in the particular economic as it affected bank portfolios. Both M2 and environment prevailing during this period. the credit proxy responded to shifts in did not respond quickly to the chang­ open market operations within 1 to 3 ing impact of open market operations on months—with the credit proxy the more reserves and interest rates. At the same stable of the two series. time, Mi did respond to variations in the The Committee, of course, did not con­ public’s demand for it for precautionary centrate solely on monetary aggregates and other reasons that are imperfectly un­ during 1971. In the second quarter, in par­ derstood. In particular, precautionary ticular, it was very much concerned that a balances apparently were built up in the substantial rise in long-term interest rates second quarter, when concern with infla­ might undermine the economic recovery Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN □ APRIL 1972 then under way. The System’s moves policy issue of which measures of mone­ toward restraint were accordingly more tary expansion and credit conditions gradual than they would have been had most accurately indicate the degree of Mi been the sole guide. M2 and the bank financial stimulation or restraint appro­ credit proxy did" reflect fairly promptly priate to the particular needs of the the Committee’s shift in direction. Their economy. From the Desk’s vantage point, behavior, in combination with the move­ however, the 1970-71 experience sug­ ment in interest rates, suggests that open gests that the Committee is better served market operations were exerting a drag by an examination of the full range of on bank credit creation during the summer information provided by the three aggre­ even though was growing rapidly. gates and interest rates than by pre­ The Committee’s formulation of its occupation with any single measure. In quantitative policy strategy depends upon terms of operating instructions, the Com­ the kind of relationships it perceives mittee may find it desirable to use all between the aggregates and economic three aggregates as a protection against activity, and upon the protection that a unforeseen, and often temporary, de­ given strategy offers against major error. mand shifts affecting a particular aggre­ This report has not focused on the larger gate. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits at Commercial Banks October 1971-January 1972 In the 3 months ending January 31, 1972, of this year but announced in March its interest rates offered on negotiable cer­ intention to return to the 4V2 per cent tificates of deposit in denominations of ceiling on April 1. $100,000 or more moved steadily lower These developments reflect changes at most large commercial banks, along in market rates of interest. In the period with other open market interest rates. In covered by this survey,1 short-term open the area of consumer time deposits, where market rates declined almost steadily, rates in general respond more slowly to after having risen substantially over the changes in market interest rates, most spring and early summer of 1971. By the commercial banks continued to pay de­ end of January 1972 the rate on 3-month positors the maximum rates permitted by Treasury bills, for example, was near the supervisory authorities. Nevertheless, a low point reached in March 1971. Long­ relatively small number, but an appreci­ term rates also fell but by more modest able proportion of all large banks, lowered amounts than short-term rates. In this offering rates on small-denomination time period the prime loan rate was lowered deposits other than passbook savings from 5% to 4%^4% per cent, and the Fed­ accounts. eral Reserve discount rate was reduced Lower rates were in prospect on savings from 5 to 4% per cent. deposits—at least temporarily—at a siz­ With inflows into consumer-type time able number of banks. Some of the largest deposits large, and with loan demand slug­ banks that hold substantial amounts of gish, banks were less interested in inflows these deposits announced early in 1972 of large-denomination time deposits in the that they would lower the offering rate on October-January period than they had regular savings from AV2 to 4 per cent on been in earlier quarters. Offering rates on February 1, and in some cases on March 1. short-term large negotiable CD’s were cut That these rate reductions may be tem­ sharply at most banks in the 3 months porary was indicated by one large bank ending January 31 in order to keep these that reduced its rate on savings deposits rates in line with market yields on com­ by V2 of a percentage point on February 1 peting instruments. Growth in large ne­ gotiable CD’s virtually ceased, and the rate of increase in other large-denomination Note.—Caroline H. Cagle of the Board’s Division of time deposits slackened. On the other Research and Statistics prepared this article. 1 Previous surveys of time and savings deposits at all hand, offering rates were maintained at member banks were conducted by the Board of Gover­ ceiling levels by most banks on pass­ nors in late 1965, in early 1966, and quarterly beginning in 1967. Beginning in 1968 the surveys were expanded book savings and, with the exceptions to provide figures for all insured commercial banks and noted earlier, on other consumer-type time were conducted jointly by the Board of Governors and the Federal Deposit Insurance Corporation. The results deposits—probably in part because com­ of earlier surveys have appeared in B ulletins for 1966­ peting savings institutions had not lowered 71, the most recent being Jan. 1972, pp. 17-30. Appendix tables for this article appear on pp. 369-73. rates. As a result, many small depositors Digitized for FRASER 363 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN □ APRIL 1972 found bank offering rates attractive, and movements made the AV2 per cent rate inflows into savings and other small- paid by most banks attractive, along with denomination time deposits were sub­ such advantages as ready accessibility of stantially larger than they had been in funds and, in some banks, interest from the preceding quarter. day of deposit to day of withdrawal. Many small depositors were clearly seeking the highest bank rate available. Total time and savings deposits held by Small-denomination CD’s and open ac­ individuals, partnerships, and corpora­ count time deposits with maturities of 2 tions (IPC) at insured commercial banks years of more—on which a majority of the amounted to $242.3 billion on January banks were offering the highest permis­ 31, 1972—about $7.5 billion (3 per cent) sible rate (5% per cent)—expanded by greater than 3 months earlier (Table 1). $2.1 billion (9 per cent) in the most redent This increase was nearly one-third more quarter. This was almost twice the in­ than the growth in the preceding quarter. crease in the preceding quarter, when the Depositors added $3.4 billion to their spread between the highest bank rate on holdings of regular savings deposits in the these deposits and the market yield on October-January period; this was twice Treasury bills, for example, had been the growth in the preceding quarter. The much narrower. Growth in these longdecline in market interest rates and the maturity, high-yield deposits was greater uncertainty concerning future interest rate than the combined increase in all other TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, APRIL 1971—JANUARY 1972 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits Type of deposit 1971 1972 1971 1972 (quarterly rate) Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 July 31— Oct. 31,1971- Oct. 31,1971 Jan.31,1972 Total time and savings deposits........... 13,413 13,438 13,452 13,440 222,255 229,062 234,786 242,296 2.5 3.2 Savings............................................. 12,960 12,958 12,993 13,030 104,249 105,940 107,514 110,931 1.5 3.2 Time deposits in denominations of less than $100,000—Total. . 13,142 13,128 13,248 13,175 81,297 83,427 84,990 89,124 1.9 4.9 Accounts with original ma­ turity of— Less than 1 year............ 12,157 12,242 12,332 12,318 42,863 43,646 43,909 45,300 .6 3.2 1 up to 2 years............... 12,305 12,224 12,455 12,382 18,893 18,976 19,058 19,725 .4 3.5 2 years or more............. 10,350 10,521 10,653 10,789 19,541 20,804 22,024 24,099 5.9 9.4 All maturities: Open accounts— Passbook or state­ ment form 1........... 3,225 3,233 3,297 3,440 (21,258) (22,068) (23,307) (24,865) (5.6) (6.7) Time deposits in denominations of $100,000 or more................. 5,838 5,816 5,894 6,004 30,744 33,490 36,009 36,792 7.5 2.2 Negotiable CD’s................... 3,087 3,067 2,972 3,224 21,418 23,525 25,435 25,591 8.1 .6 Nonnegotiable CD’s and open account..................... 3,397 3,388 3,492 3,359 9,325 9,965 10,574 11,201 6.1 5.9 Christmas savings and other special funds............................... 8,274 8,324 8,048 8,151 5,964 6,205 6,272 5,450 1.1 -13.1 1 Includes time deposits, open account, issued in passbook, state­ information was reported by a probability sample of all insured ment, or other forms that are direct alternatives for regular savings commercial banks; for Oct. 31, 1971, the data for member banks accounts. Most of these are believed to be in accounts totaling less were reported by virtually all such banks and for insured nonmember than $100,000. banks by the same sample of these banks reporting in earlier surveys. Some deposit categories include a small amount of deposits out­ Note.—Data were compiled jointly by the Board of Governors of standing in a relatively few banks that no longer issue these types of de­ the Federal Reserve System and the Federal Deposit Insurance posits and are not included in the number of issuing banks. Dollar Corporation. For Apr. 30 and July 31, 1971, and Jan. 31, 1972, the amounts may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 365 small-denomination, short-maturity time RATE CHANGES AND RATE STRUCTURE deposits on which ceiling rates were lower. On small-denomination time deposits Bank holdings of time deposits in de­ (other than savings) about 9 out of 10 of the nominations of $100,000 or more in­ issuing banks—holding more than fourcreased only $780 million (2 per cent) in fifths of the deposits—were offering de­ the October-January period. Four-fifths positors the ceiling rate on January 31, of this growth was in nonnegotiable CD’s 1972 (Table 2). Nevertheless, this propor­ and open account time deposits, which tion was somewhat lower than it had been are held to a considerable extent by con­ 3 months earlier. Among large banks sumers, as contrasted with negotiable about 20 per cent of the banks reduced CD’s which are held mainly by businesses. their offering rate on consumer-type time The greater growth in nonnegotiable CD’s deposits (other than savings) in the most probably reflects the fact that many banks recent period (Appendix Table 7). Most were offering somewhat higher rates on of these reductions were to 5 per cent on nonnegotiable than on negotiable CD’s on deposit instruments with maturities of 1 January 31. year and over and to 4% per cent on shorter Time deposits in special fund accounts maturities. The proportion of big banks, declined by $820 million in the latest for example, that were paying the 5% per survey period, reflecting in large part a cent rate on maturities of 2 years and over seasonal movement. Christmas club ac­ dropped from 85 to 74 per cent; and for counts, which are an important part of this maturities of 1 to 2 years the proportion total, are built up over the year to a peak in paying 5V2 per cent declined from 83 to the autumn and are paid out in November. 69 per cent from the end of October to the The decline in these deposits in the 3 end of January. Some large banks with months ending January 31 amounted to 13 sizable amounts of these deposits out­ per cent—about the same as the reduc­ standing on January 31 reported in the tion in the comparable period of last year. survey that they no longer issued these Both small and large banks experi­ high-interest-rate deposits, and it has been enced an expansion in their holdings of reported elsewhere that some large banks, time and savings deposits in the most re­ although continuing to offer the ceiling cent period, amounting to about 3.5 per rates on these deposits, were tightening cent for large banks (total deposits of $100 other terms, such as raising the minimum million and over) and to about 5 per cent deposit required and/or lengthening the for smaller banks. At large banks one-half maturity of the instrument. of the growth was in passbook savings By contrast, at small banks interest rates whereas at smaller banks such deposits on consumer-type time deposits responded accounted for only one-fourth of the in­ less rapidly than at large banks to changes crease. The greater growth in passbook in open market interest rates, as had been savings deposits at large banks may re­ true in earlier surveys. As of January 31 flect in part a tendency to discourage ex­ about nine-tenths of the small banks con­ pansion in deposits carrying rates of in­ tinued to offer the ceiling rates on small terest greater than 5 per cent by lowering CD’s and open account time deposits, a the offering rate or by other means. On proportion only slightly lower than a year the other hand, most small banks con­ earlier. The few banks of this size that tinued to offer the ceiling rates on con­ lowered their rates during the most recent sumer-type time deposits. survey period were about matched by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN □ APRIL 1972 TABLE 2 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON OCTOBER 31, 1971, AND JANUARY 31, 1972, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Jan. Oct. Jan. Oct. Jan. Oct. Jan. Oct. Jan. Oct. Jan. Oct. 31 31 31 31 31 31 31 31 31 31 31 31 Amounts of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Savings deposits: 13,030 12,993 12,408 12,405 622 588 110,931 107,514 42,656 42,552 68,275 64,962 Percentage distribution by most common rate paid on new de­ posits : 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 6.5 7.0 6.8 7.2 1.9 2.4 2.2 2.2 3.7 3.5 1.2 1.3 3.51-4.00....................................... 18.4 17.2 18.3 17.2 19.8 17.0 19.1 16.1 13.9 13.6 22.3 17.8 4.01-4.50........................................ 75.1 75.8 74.9 75.6 78.3 80.6 78.7 81.7 82.4 82.9 76.5 80.9 Time deposits in denominations of less than $100,000: Maturities of less than 1 year: 12,318 12,332 11,698 11,748 620 584 45,299 43,888 21,506 20,646 23,793 23,242 Percentage distribution by most common rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.5 3.9 4.8 3.5 19.0 4.1 11.5 3.7 1.9 1.3 20.1 2.8 4.51 5.00............................... 94.5 96.1 95.2 96.5 81.0 95.9 88.5 96.3 98.1 98.7 79.9 97.2 Maturities of 1 up to 2 years: 12,382 12,455 11,782 11,889 600 566 19,690 19,025 14,620 14,284 5,069 4,741 Percentage distribution by most common rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1.4 .9 1.2 .9 7.8 1.3 1.7 .3 1.2 .4 3.1 .4 4.51 5.00............................... 10.2 9.8 9.7 9.6 20.0 12.2 12.4 11.1 9.5 11.2 20.9 10.7 5.01-5.25............................... .8 1.1 .6 1.0 3.5 3.5 1.1 1.4 .9 1.0 1.6 2.6 5.26-5.50............................... 87.6 88.2 88.5 88.5 68.7 83.0 84.8 87.2 88.4 87.4 74.4 86.3 Maturities of 2 years and over: 10,789 10,653 10,215 10,102 574 551 23,564 21,827 13,035 12,022 10,528 9,805 Percentage distribution by most common rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1.3 .9 1.1 .9 5.4 1.5 .8 .6 .4 .8 1.3 .5 4.51 5.00............................... 4.5 2.8 4.0 2.5 13.3 7.6 6.8 4.0 2.1 1.2 12.5 7.3 5.01 5.25............................... .3 .4 .2 .4 2.4 1.2 1.4 .6 . 1 .4 3.1 .8 5.26-5.50............................... 3.8 3.4 3.7 3.4 4.5 4.4 2.3 1.9 2.2 1.2 2.3 2.7 5.51 5.75............................... 90.1 92.5 91.0 92.8 74.4 85.3 88.7 92.9 95.2 96.4 80.8 88.7 Negotiable CD’s in denominations of $100,000 or more: 3,224 2,972 2,827 2,589 397 383 25,586 25,434 2,792 2,614 22,793 22,820 Percentage distribution by most common rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 15.0 2.0 9.8 1.8 51.4 3.3 66.2 6.9 15.5 1.0 72.4 7.6 4.51 5.00............................... 27.7 20.5 27.4 19.0 30.5 30.5 20.8 35.9 26.6 13.2 20.1 38.5 5.01 5.50............................... 19.4 23.4 20.8 20.1 10.1 46.2 7.1 37.2 19.6 25.3 5.6 38.6 5.51-6.00............................... 23.2 35.4 25.4 37.9 7.0 18.0 4.0 17.4 23.8 42.1 1.6 14.6 6.4 7.6 7.4 8.6 .8 .4 1.1 3.8 6.8 .4 6.51 7.00............................... 5.3 6.9 5.9 7.9 .3 .2 1.2 1.0 8.9 8.3 .2 .1 7.01-7.50............................... 2.9 4.1 3.2 4.6 .7 1.0 .3 .5 1.8 3.2 .1 .2 .1 .1 .1 .1 0) 0) 0) .1 1 Less than 0.05 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 367 banks that raised their rates to the ceiling which account for the bulk of all large ne­ level. gotiable CD’s, lowered their most com­ Few banks made any change in the rate mon offering rate on these deposits be­ they paid on regular passbook savings in tween October and January. As of January the 3 months ending January 31. Three- 31, half of these banks reported that the fourths of insured commercial banks most common rate on such deposits was holding nearly four-fifths of all passbook 4V2 per cent or less. A majority had been savings deposits were paying the 4% per paying between 5 and 6 per cent 3 months cent maximum rate on January 31, 1972. earlier. Nevertheless, as indicated earlier, a num­ On other large-denomination time de­ ber of rate reductions were in prospect at posits—nonnegotiable CD’s and open large banks beginning in February. account deposits—about half of the large Although small banks do not often banks reduced their most common rate in change offering rates on deposits, in recent the October-January period, a smaller years large banks have been adjusting proportion than for large negotiable CD’s. more promptly their rates on savings and The offering rate on these deposits as of other consumer-type time deposits in ac­ January 31 for a majority of big banks was cordance with changes in market interest 5 per cent or more. rates. In the past year, for example, many AVERAGE INTEREST RATES of the largest banks lowered their rate on savings deposits by % of a percentage The weighted average interest rate paid point to 4 per cent on April 1, 1971, moved on all forms of time and savings deposits, it back to the 4 Vi per cent ceiling on IPC, at insured commercial banks on August 1, and announced plans to lower January 31, 1972, was 4.70 per cent— it again by Vi of a percentage point on down from 4.85 per cent 3 months earlier February 1 of this year. Adjustments of (Table 3). The major factor in the decline this kind were also announced by these was the sharp reduction in rates on largebanks in the offering rates on new issues denomination deposits. of the longer maturities of small-denomi­ On negotiable CD’s in denominations nation CD’s and open account time de­ of $100,000 or more, the average rate at posits. With rates of return on earnings all insured commercial banks on January assets declining in the early months of 1971 31 was 4.37 per cent and on other largeand again in early 1972, and with interest denomination time deposits, 4.70 per on time and savings deposits the largest cent. These rates represented declines of single item of bank expenses, large banks 86 and 68 basis points, respectively, in have been anxious to maintain a close the 3 months ending January 31. relationship between the rate of return on Reflecting a relatively few recent rate earnings assets and the costs of time de­ reductions on small-denomination time posits; this is true particularly for passbook deposits (other than savings), the average savings, where any change in rate affects interest rate on January 31 was 5.66 per all of the deposits of this type outstanding. cent on such deposits with maturities of 2 Rate changes on other small-denomina­ years and over, 5.39 per cent on deposits tion time deposits affect for the most part with maturities of 1 up to 2 years, and4.90 new deposits and therefore have a smaller per cent on maturities of less than 1 year— impact on bank expenses. down by 2, 4, and 8 basis points, respec­ Nearly four-fifths of the large banks, tively. By contrast, on regular savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN □ APRIL 1972 deposits, the average rate was down by and other interest-sensitive deposits at such only 1 basis point—to 4.38 per cent. banks. The average rate on all forms of The sharpest decline in rates during the time and savings deposits at these banks most recent quarter occurred at money was 4.51 per cent—down 31 basis points market banks—with total deposits of $500 from 3 months earlier. For banks located million and over, located in Standard in small towns and rural areas (outside Metropolitan Statistical Areas (SMSA’s) SMSA’s) the average rate on all forms —as might be expected in view of the of time and savings deposits was un­ heavy concentration in negotiable CD’s changed at 4.96 per cent. □ TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JANUARY 31, 1972 Per cent per annum Time deposits in denominations of— Less than $100,000 $100,000 or more All Bank location and size of bank time and and (total deposits in millions savings small-de­ Savings Maturing inof dollars) deposits nomina­ tion time Total Nego­ All deposits Less 1 up to 2 years tiable other than 2 years or more CD’s 1 year All banks: All size groups................................ 4.70 4.75 4.38 5.21 4.90 5.39 5.66 4.37 4.70 Less than 10................................ 4.99 4.98 4.31 5.33 4.98 5.37 5.69 5.54 5.71 10-50............................................. 4.92 4.89 4.40 5.31 4.99 5.45 5.73 5.60 5.50 50-100........................................... 4.80 4.75 4.38 5.25 4.96 5.38 5.70 5.05 5.35 100-500......................................... 4.68 4.69 4.38 5.16 4.91 5.33 5.62 4.62 4.67 500 and over................................ 4.51 4.62 4.37 5.07 4.79 5.35 5.59 4.17 4.39 Banks in— Selected large SMSA’s:1 All size groups............................ 4.59 4.66 4.40 5.12 4.84 5.35 5.62 4.26 4.48 Less than 10............................ 4.85 4.83 4.38 5.34 4.99 5.44 5.72 5.08 5.42 10-50......................................... 4.81 4.76 4.42 5.26 4.95 5.41 5.68 5.53 5.33 50-100....................................... 4.73 4.70 4.40 5.22 4.97 5.34 5.68 5.11 4.94 100-500..................................... 4.65 4.67 4.40 5.14 4.88 5.28 5.62 4.53 4.50 500 and over............................ 4.51 4.62 4.39 5.06 4.78 5.36 5.59 4.15 4.36 All other SMSA’s: All size groups............................ 4.76 4.74 4.31 5.24 4.94 5.40 5.67 4.92 5.15 Less than 10............................ 4.88 4.83 4.21 5.34 4.99 5.39 5.66 5.65 6.08 10-50......................................... 4.90 4.87 4.40 5.35 5.00 5.45 5.75 5.47 5.78 50-100...................................... 4.84 4.80 4.36 5,26 4.92 5.45 5.73 4.92 5.34 100-500.................................... 4.73 4.71 4.34 5.18 4.95 5.35 5.61 4.87 4.91 500 and over............................ 4.53 4.50 4.11 5.08 4.87 5.29 5.56 4.69 4.98 Banks outside SMSA’s: All size groups................................ 4.96 4.94 4.37 5.31 4.99 5.41 5.71 5.52 5.54 Less than 10................................ 5.03 5.02 4.31 5.33 4.98 5.36 5.69 5.66 5.51 10-50............................................. 4.98 4.95 4.39 5.32 5.00 5.46 5.74 5.72 5.57 50-100........................................... 4.88 4.80 4.34 5.27 4.99 5.35 5.70 5.06 5.77 100-500......................................... 4.74 4.72 4.38 5.20 4.89 5.40 5.60 4.62 5.12 500 and over................................ 4.91 4.80 4.29 5.29 5.00 5.50 5.75 6.75 4.64 1 The selected large Standard Metropolitan Statistical Areas, as defined by the Office of Management and Budget and arranged by size of popula­ tion in the 1970 census, are as follows: New York City Minneapolis-St. Paul San Jose Albany-Schenectady-Troy Richmond Los Angeles-Long Beach Seattle-Everett New Orleans Akron Jacksonville Chicago Milwaukee Tampa-St. Petersburg Hartford Flint Philadelphia Atlanta Portland Norfolk-Portsmouth Tulsa Detroit Cincinnati Phoenix Syracuse Orlando San Francisco-Oakland Paterson-Clifton-Passaic Columbus Gary-Hammond-E. Chicago Charlotte Washington, D. C. Dallas Rochester Oklahoma City Wichita Boston Buffalo San Antonio Honolulu West Palm Beach Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines St. Louis Miami Louisville Jersey City Ft. Wayne Baltimore Kansas City Sacramento Salt Lake City Baton Rouge Cleveland Denver Memphis Omaha Rockford Houston San Bemadino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Y oungsto wn-W arren Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 369 APPENDIX TABLE 1-SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 4.00 4.50 3.50 4.00 4.50 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................................................................. 13,030 858 2,392 9,780 110,931 2,409 21,188 87,334 Size of bank (total deposits in millions of dollars): Less than 10.................................................................. 6,448 599 1,468 4,381 6,234 343 1,336 4,556 10-50............................................................................... 5,242 212 724 4,306 24,621 623 3,157 20,841 50-100............................................................................ 718 35 76 607 11,801 613 1,445 9,743 100-500.......................................................................... 472 8 83 381 22,210 292 4,662 17,256 500 and over................................................................. 150 4 41 105 46,065 538 10,589 34,938 Federal Reserve district: Boston............................................................................ 336 2 60 274 4,487 (2) 1,179 3,291 New York...................................................................... 453 6 59 388 18,079 318 3,272 14,490 Philadelphia................................................................... 441 41 187 213 7,241 533 3,304 3,405 Cleveland........................................................................ 759 72 137 550 10,409 441 2,856 7,112 Richmond...................................................................... 737 8 96 633 7,699 13 1,427 6,259 Atlanta............................................................................ 1,654 79 305 1,270 8,006 221 1,421 6,364 Chicago.......................................................................... 2,572 264 480 1,828 19,804 462 4,654 14,688 St. Louis......................................................................... 1,326 70 289 967 3,850 122 692 3,036 Minneapolis................................................................... 1,364 218 511 635 2,680 202 572 1,906 Kansas City................................................................... 1,773 93 212 1,468 4,241 54 167 4,020 Dallas.............................................................................. 1,229 4 51 1,174 3,745 15 54 3,677 San Francisco............................................................... 386 1 5 380 20,689 (2) 1,591 19,085 APPENDIX TABLE 2—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN LESS THAN 1 YEAR Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.75 5.00 4.50 4.75 5.00 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS All banks................................................................................. 12,318 675 54 11,589 45,299 5,189 558 39,5;>2 Size of bank (total deposits in millions of dollars): Less than 10.................................................................. 6,056 274 2 5,780 3,797 65 (2) 3,732 10-50............................................................................... 4,934 243 25 4,666 12,862 185 21 12,655 50-100............................................................................. 708 40 8 660 4,848 161 32 4,654 100-500........................................................................... 470 76 16 378 8,482 864 187 7,431 500 and over.................................................................. 150 42 3 105 15,311 3,914 317 11,080 Federal Reserve district: 302 29 273 New York...................................................................... 448 85 15 348 4,223 555 361 3,308 315 50 1 264 2,442 326 (2) 2,114 Cleveland........................................................................ 679 28 5 646 3,094 181 50 2,863 630 50 4 576 2,843 284 2 2,557 Atlanta............................................................................ 1,572 150 7 1,415 4,390 242 58 4,090 Chicago.......................................................................... 2,375 104 8 2,263 10,381 916 5 9,460 1,276 9 1 267 2 593 192 2 401 1,194 48 1 146 2 523 2 520 Kansas City................................................................... 1,854 44 5 1,805 2,539 97 29 2,414 Dallas.............................................................................. 1,310 53 3 1,254 2,532 241 14 2,277 San Francisco............................................................... 363 25 6 332 6,145 2,092 38 4,015 For notes to Appendix Tables 1-6, see p. 374. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN □ APRIL 1972 APPENDIX TABLE 3—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 1 UP TO 2 YEARS Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.50 or 5.00 5.25 5.50 or 5.00 5.25 5.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks.............................................................................. 12,382 188 1,260 93 10,841 19,690 335 2,443 211 16,701 Size of bank (total deposits i n millions of dollars): Less than 10.................................................................... 6,185 59 524 11 5,591 5,431 98 475 6 4,852 10-50................................................................................ 4,900 49 526 45 4,280 7,560 21 669 79 6,791 50-100.............................................................................. 697 33 91 15 558 1,629 58 243 43 1,286 100 500............................................................................ 459 32 83 21 323 2,403 69 514 81 1,738 500 and over................................................................... 141 15 36 1 89 2,667 89 542 (2) 2,033 Federal Reserve district: Boston.............................................................................. 220 12 22 6 180 121 12 12 2 95 New York........................................................................ 398 35 88 15 260 751 33 243 20 454 Philadelphia.................................................................... 362 6 79 1 276 1,169 16 252 (2) 899 Cleveland......................................................................... 697 21 141 7 528 1,186 54 247 16 868 Richmond........................................................................ 679 10 111 2 556 841 58 139 (2) 632 Atlanta.............................................................................. 1,464 31 203 6 1,224 1,834 23 265 22 1,523 Chicago............................................................................ 2,428 25 131 17 2,255 4,427 22 326 27 4,053 St. Louis........................................................................ 1,426 1 179 1 1,245 2,642 (2) 379 (2) 2,259 1,314 25 55 1,234 1,828 74 72 1,682 Kansas City..................................................................... 1,827 1 89 26 1,711 2,023 (2) 114 70 1,835 Dallas............................................................................... 1,207 20 115 7 1,065 1,356 38 122 22 1,174 San Francisco.................................................................. 360 1 47 5 307 1,514 (2) 273 13 1,227 APPENDIX TABLE 4—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000— MATURING IN 2 YEARS OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.50 or 5.00 5.25 5.50 5.75 or 5.00 5.25 5.50 5.75 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks.......................................... 10,789 146 487 34 404 9,718 23,564 191 1,590 342 536 20,905 Size of bank (total deposits in millions of dollars): 5,130 67 203 211 4,649 3,005 29 40 63 2,872 10-50............................................ 4,441 33 170 14 127 4,097 7,454 15 130 5 106 7,199 50-100.......................................... 644 15 38 6 40 545 2,577 7 101 12 124 2,333 100-500........................................ 434 22 44 9 24 335 3,813 77 283 36 216 3,201 500 and over................................ 140 9 32 5 2 92 6,715 63 1,035 289 (2) 5,300 Federal Reserve district: Boston.......................................... 198 9 13 6 12 158 280 4 24 1 3 247 New York.................................... 374 47 30 10 7 280 1,683 49 441 30 49 1,114 285 4 6 14 261 1,562 65 61 85 1,351 Cleveland..................................... 567 2 31 4 18 512 1,883 (2) 37 27 58 1,752 Richmond.................................... 618 5 59 2 8 544 1,681 12 77 (2) 0) 1,538 1,298 23 77 75 1,123 2,123 21 161 118 1,823 Chicago........................................ 2,223 25 46 5 58 2,089 5,180 15 263 7 40 4,856 1,105 6 1 50 1.048 1,714 10 (2) 60 1,643 1,084 25 3 50 1,006 1,687 8 2 17 1,661 Kansas City................................ 1,604 1 23 2 53 1,525 1,357 (2) 34 (2) 74 1,245 Dallas.......................................... 1,079 4 156 1 51 867 1,265 4 205 (2) 20 1,020 San Francisco.............................. 354 1 37 3 8 305 3,149 (2) 276 204 12 2,654 For notes to Appendix Tables 1-6, see p. 374. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 371 APPENDIX TABLE 5—NEGOTIABLE CD’s, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.00 7.50 Total 4.00 7.50 or 4.50 5.00 5.50 6.00 6.50 7.00 and or 4.50 5.00 5.50 6.00 6.50 7.00 and less over less over NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................. 3,224 265 218 894 627 747 208 170 9525,58611,0375,8925,3261,826 1,028 107 290 80 Size of bank (total deposits in millions of dollars): Less than 10......................... 714 11 7 194 153 140 132 73 4 172 3 7 51 47 29 23 10 1 10-50..................................... 1,783 78 87 479 357 532 71 94 85 1,719 60 146 433 240 488 76 238 38 50-100................................... 330 42 54 1(H) 77 47 5 2 3 902 121 95 259 258 148 8 (2) 11 100-500.................................. 266 70 49 93 31 21 2 3,575 784 898 1,387 328 156 (2) 500 and over....................... 131 64 21 28 9 7 1 119,218 10,0694,7463,197 952 206 (2) (2) Federal Reserve district: Boston.................................. 150 52 11 19 23 43 2 1,165 826 151 64 94 28 (2) New York............................ 204 48 30 78 8 31 9 8,975 3,2363,797 1,780 30 74 57 Philadelphia......................... 85 7 3 22 16 33 3 1 1,127 223 75 171 641 9 O) (2) Cleveland.............................. 170 25 24 55 27 29 3 3 4 1,163 648 284 208 4 13 4 1 1 Richmond............................. 156 11 36 48 14 46 1 730 195 111 315 36 33 (2) Atlanta.................................. 515 12 17 103 111 161 54 22 35 1,269 290 44 441 200 210 37 20 26 Chicago................................. 521 54 30 180 84 97 44 31 1 2,666 1,937 73 348 114 182 8 4 (2) St. Louis............................... 207 5 8 92 71 8 1 21 1 531 216 12 110 172 4 (2) 3 (2) Minneapolis......................... 126 9 9 16 35 38 1 9 9 511 25 28 391 31 30 (2) 2 2 Kansas City......................... 351 15 12 80 100 87 20 32 5 903 231 49 381 132 92 2 14 1 Dallas.................................... 568 9 26 138 103 140 82 33 37 2,681 789 587 438 319 327 50 142 29 San Francisco..................... 171 18 12 63 35 34 1 6 2 3,8642,419 682 679 52 26 (2) 5 (2) APPENDIX TABLE 6—NONNEGOTIABLE CD’s AND OPEN ACCOUNT DEPOSITS, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.00 7.50 4.00 7.50 or 4.50 5.00 5.50 6.00 6.50 7.00 and or 4.50 5.00 5.50 6.00 6.50 7.00 and less over less over NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................... 3,359 261 2801,054 581 688 158 154 18311,1923,8771,3773,402 9021,224 170 105 135 Size of bank (total deposits in millions of dollars): Less than 10................................. 602 17 54 128 186 148 13 33 23 152 5 4 36 34 43 2 25 4 10-50.............................................. 1,840 67 119 573 275 405 135 114 152 1,086 35 81 362 216 209 49 61 72 50-100............................................ 455 49 40 191 75 90 4 2 4 1,360 110 76 372 239 545 4 (2) 5 100-500.......................................... 352 91 51 121 39 39 5 3 3 2,681 882 343 782 305 286 64 1 18 500 and over................................ 110 37 16 41 6 6 1 2 1 5,9122,847 873 1,849 107 141 (2) (2) (2) Federal Reserve district: 124 23 17 41 8 10 1 24 235 70 100 25 16 13 (2) 11 New York.................................... 192 43 25 93 8 12 1 8 2 3,035 1,276 606 982 30 113 (2) 8 (2) 141 19 22 44 13 30 1 12 404 118 11 107 88 21 (2) 44 Cleveland...................................... 298 28 7 120 107 11 1 3 21 538 225 22 158 49 73 (2) 4 5 Richmond..................................... 288 14 14 120 38 63 27 3 9 958 184 38 186 49 427 55 9 11 Atlanta.......................................... 508 22 36 141 105 97 39 19 49 1,051 239 86 304 212 124 42 16 28 Chicago......................................... 511 41 84 135 68 117 11 54 1 1,410 156 149 838 99 118 4 37 (2) St. Louis........................................ 373 35 47 84 48 76 22 28 33 381 139 51 83 23 52 8 9 15 134 1 38 51 17 20 7 91 (2) 42 14 15 13 2 Kansas City.................................. 282 10 11 95 56 95 3 5 7 333 101 29 94 40 53 1 6 10 397 6 8 104 61 154 17 47 760 13 37 220 264 213 6 6 San Francisco.............................. 111 20 8 39 18 6 15 3 2 1,996 1,357 244 362 18 2 11 2 (2) For notes to Appendix Tables 1-6, see p. 374. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APPENDIX TABLE 7— INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS, IPC, BETWEEN OCTOBER 31, 1971, AND JANUARY 31, 1972 Time deposits in denominations of— Less than $100,000 maturing in $100,000 or more Savings Less than 1 year 1 up to 2 years 2 years and over Negotiable CD’s All other Group Size of bank Size of bank Size of bank Size of bank Size of bank Size of bank (total deposits (total deposits (total deposits (total deposits (total deposits (total deposits in millions in millions in millions in millions in millions in millions All of dollars) AH of dollars) All of dollars) All of dollars) AH of dollars) A11 of doUars) size size size size size groups groups groups groups groups groups 100 100 100 100 100 100 Under and Under and Under and Under and Under and Under and 100 over 100 over 100 over 100 over 100 over 100 over Number of issuing banks, January 31, 1972........... 13,025 12,405 620 12,319 11,701 618 12,379 11,780 599 10,834 10,261 573 3,236 2,840 396 3,352 2,892 460 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP * 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, Oct. 31, 1971—Jan. 31, 1972................................ 96.8 96.9 96.1 95.1 96.0 78.0 91.1 91.9 74.8 89.4 90.0 437.38.4 303.77.2 40.2 15.4 41.5 Banks raising rate............... .7 .7 .5 .7 .7 1.6 3.1 3.1 3.2 2.5 2.5 2.1 8.9 9.5 3.8 10.3 10.8 7.4 New most common rate 1 (per cent) 3.51-4.00................. m 7 .2 (2) .2 . 1 .1 4.01-4.50................. (2)7 .5 .1 .1 .9 1.0 4 5 . .0 5 1 1 -5 5 . . 0 2 0 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 .6 1.6 (2) .1 (2) .1 .3 (2) 2 . . 5 3 . .5 2 1 . . 8 0 . .1 7 .. 6 1 1.5 5.26-5.50................. 2.9 2.9 2.7 .1 A 2.8 3.1 .3 1.3 1.2 1.7 5.51 5.75................. 2.4 2.4 1.7 1.2 1.1 1.5 1.0 .8 2.2 5.76-6.00................. 1.2 1.4 1.6 1.7 .7 6.01-6.25................. .1 .1 1.1 1.3 .2 6.26-6.50................. .6 .6 .6 .6 .2 6.51-6.75................. .9 1.0 6.76-7.00................. .5 .6 1.3 1.5 .2 7.01-7.50................. ' .7 .3 .5 .5 .2 7.51-8.00................. .1 .1 1.2 1.3 .4 8.01-8.50................. 372 FEDERAL RESERVE BULLETIN □APRIL 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ba N nk ew s red m uc o i s n t g ra co te m .. m .... o .. n ... 2.1 2.1 3.4 3.2 2.3 19.9 5.0 4.1 21.2 5.0 4.2 17.6 35.4 29.3 79.0 32.5 28.8 55.2 rate 1 (per cent) 4 4 3 5 5 5 3 5 . . . . . . . . 5 0 5 5 7 5 2 0 0 1 1 6 1 6 1 1 - - - - - - - o 6 4 5 4 5 5 5 r . . . . . . . 0 5 0 0 5 7 2 le s 5 0 5 0 0 0 0 s . ............. 1 . . 2 9 1. . 9 2 3. . 2 2 1. . . . 5 3 8 6 1 . . . . 5 5 2 0 9 5 2 2 . . . . 3 9 3 4 3. . . . . 1 5 2 6 6 2. . . . . 1 5 6 5 4 1 4 1 2 1 1 . . . . . 5 7 2 8 0 2 1. . . . . . 1 1 6 6 3 2 (2 2 1 ) . . . . . 3 1 5 3 0 8 3 1 1 1 1 . . . . . . 1 9 9 4 2 0 1 5 5 2 1 1 1 4 1 . . . . . . . . 1 1 3 8 7 9 4 4 1 2 2 3 1 1 2 1 . . . . . . . . 8 9 7 8 9 2 2 9 2 2 1 2 5 7 2 1 1 7 . . . . . . . . 5 8 5 8 7 3 3 2 1 4 2 2 2 5 1 1 0 . . . . . . . . 1 7 6 5 6 4 3 4 2 4 9 2 2 3 1 . . . . . . . . 1 1 1 7 7 9 3 9 2 1 1 5 1 1 0 1 4 1 . . . . . . . . 1 1 1 1 5 4 2 2 6.01-6.2 5 .1 .1 .1 .2 6.26-6.5 0 1.6 1.8 1.0 1.1 6.51-6.7 5 6 7 . . 7 0 6 1 - - 7 7 . . 0 5 0 0 .1 .1 (2) .2 7.51-8.0 0 8.01-8.5 0 Banks introducing new in­ M s o t s r t u m c e o n m t . m ... o ... n .. .... r . a .. t .. e .. .. 1 . . .4 .4 1.0 1.0 .5 .9 .9 .8 3.2 3.2 1.9 18.6 21.0 1.8 15.7 17.2 6.7 (per cent) 4 4 . . 0 0 0 1 - o 4 r . 5 le s 0 s. .................. .4 .4 (2) .1< (2) .1 ( ( 2 2) ) (2) . . 2 2 ( ( 2 2 ) ) (2) .2 1. . 0 6 1. . 1 7 .3 1 . . 5 8 1. .5 9 1 . . 7 3 4.51-5.0 0 .9 .9 .5 .3 .3 7.5 8.4 .8 7.0 7.4 4.1 5.01-5.2 5 1 .8 .8 .3 .1 .1 .2 5.26-5.5 0 .6 .6 .5 .3 .3 .2 1.4 1.5 .3 2.4 2.7 .2 5.51-5.7 5 2.5 2.6 1.0 2.8 3.2 .3 6 6 5 . . . 0 2 7 1 6 6 - - - 6 6 6 . . . 0 5 2 5 0 0 2. . . 4 4 3 2. . . 7 5 4 .3 (2 2 ) . .7 4 (2 2 ) .8 6.51-6.7 5 . 1 6.76-7.0 0 1.2 1.4 .3 .3 7 7. . 5 0 1 1 - - 8 7 . . 0 5 0 0 .2 .2 . .1 1 . . 1 1 .2 8.01-8.5 0 * Shaded areas indicate that rates shown in the stub are higher 2 Less than 0.05 per cent. on Oct. 31, 1971. The table excludes banks that issued these types than the maximum permissible rate on the various instruments. Note.—This table was compiled by comparing rates as reported of deposits on Oct. 31, but no longer had these types of deposits 1 For description of most common rate, see Note to Table 2, by the sample banks that had these types of deposits outstanding outstanding on Jan. 31. Percentages may not add to totals because p. 374. on Jan. 31, 1972, with the rates reported by the same banks of rounding. CHANGES IN TIME AND SAVINGS DEPOSITS 373 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

NOTE TO TABLE 2: Note.—The most common interest rate for each instrument refers While rate ranges of % or lA of a percentage point are shown in to the basic stated rate per annum (before compounding) in effect on this and other tables, the most common rate reported by most banks the survey date that was generating the largest dollar volume of de­ was the top rate in the range; for example, 4.00, 4.50, etc. On negotia­ posit inflows. If the posted rates were unchanged during the 30-day ble CD’s in denominations of $100,000 and over, however, some large period just preceding the survey date, the rate reported as the most banks have rates at intervals of Ys of a percentage point. Some de­ common rate was the rate in effect on the largest dollar volume of posit categories exclude a small amount of deposits outstanding in deposit inflows during that 30day period. If the rate changed during a relatively few banks that no longer issue these types of deposits and that period, the rate reported was the rate prevailing on the survey are not included in the number of issuing banks. date on the largest dollar volume of deposit inflows. Figures may not add to totals because of rounding. NOTES TO APPENDIX TABLES 1-6: 1 Less than $500,000. some deposits outstanding on the survey date. Time deposits, open 2 Omitted to avoid individual bank disclosure. account, exclude Christmas savings and other special accounts. Dollar Note.—Data were compiled from information reported by a amounts may not add to totals because of rounding. probability sample of all insured commercial banks. The latter were In the headings of these tables under “Most common rate paid expanded to provide universe estimates. (per cent)” the rates shown are those being paid by most reporting Figures exclude banks that reported no interest rate paid and that banks. However, for the relatively few banks that reported a rate in held no deposits on the survey date, and they also exclude a few between those shown, the bank was included in the next higher rate. banks that had discontinued issuing these instruments but still had 374 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices, 1971 Since late 1964, the Federal Reserve has credits, especially from single-family conducted quarterly surveys of changes in mortgages and consumer instalment loans. bank lending practices among large com­ From March until mid-1971, however, mercial banks to obtain information on short-term interest rates rose sharply. nonprice lending terms and on bankers’ The prime rate fluctuated during this period appraisals of current and anticipated but at the end of the quarter was XA of a demands for business loans. The results percentage point below its level 3 months of the four surveys in 1971—in February, earlier. May, August, and November—are sum­ During the second quarter business marized in this article. loans still showed only sluggish growth. Lower interest rates and increased This reflected, in part, the economy’s deposit and credit flows generally char­ fragile recovery and, in part, heavy use acterized financial markets in the first by businesses of bonds and stocks to part of 1971. During the first quarter of raise funds. Firms seeking to repay that year, the money stock increased at short-term debt and restore liquidity a rate twice as fast as it had in the three flooded the capital market with record final months of 1970. Moreover, this amounts of new issues during this growth was coupled with a surge in time period. Meanwhile, the comfortable li­ and savings deposits at commercial banks. quidity position afforded most banks As other short-term interest rates declined by a sustained influx of deposits pro­ during the quarter, the discount rate was moted more flexibility in lending policies. reduced xh of a percentage point, and the Bankers’ interest in all types of loans, prime rate was reduced by 1 lA percentage as indicated in the May 1971 survey, was points. strong, although the rate advantage to In line with these reductions, most banks on consumer and term loans was bankers in the February 1971 survey re­ particularly attractive. Because the prime ported an easing in interest rate policies rate seesawed in the interval between the as weakness in demand for loans persisted. February and May surveys, respondents Since few bankers expected any signifi­ reported mixed reactions regarding interest cant improvement in business loan demand rate policies. Similarly, there was no con­ in the upcoming quarter, there was a sensus about the strength of future loan vigorous search for new borrowers, even demands. outside local service areas. Bankers also At midyear, however, inflationary pres­ sought to supplement the smaller growth sures were still strong, while unemploy­ in business loans, with other types of ment remained a chronic problem. On the international front, a monetary crisis Note:—This article was prepared by Marilyn Barron seemed imminent. The August survey was of the Division of Research and Statistics of the Board taken against a backdrop of uncertainties of Governors. 375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN □ APRIL 1972 regarding the strength of the current eco­ for 90 days. During the 90-day period the nomic recovery, the continuation of in­ general business outlook, along with flation, and the imposition of tighter mon­ consumer spending, showed some im­ etary conditions. Bankers’ responses re­ provement. flected a “wait"and see” attitude. There By the time of the November survey, were few dramatic changes in lending however, business loan demand, which terms, although interest rates had risen had spurted in mid-August, in part due at most banks and compensating balance to speculation over possible foreign ex­ requirements had stiffened somewhat. change realignments, had weakened. Bank Just 2 days after the August 1971 sur­ officers reported continued interest in ex­ vey, the President announced a new eco­ panding consumer instalment loans and nomic policy that froze wages and prices real estate mortgages—both of which QUARTERLY SURVEY—FEBRUARY 1971 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1971, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 125 (100.0) (.8) 12 (9.6) 31 (24.8) 72 (57.6) (7.2) Anticipated in next 3 months....................... 125 (100.0) (1.6) 21 (16.8) 62 (49.6) 39 (31.2) (0.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 124 (100.0) 18 (14.5) 61 (49.2) 45 (36.3) Compensating or supporting balances. 124 (100.0) (1.6) 91 (73.4) 31 (25.0) Standards of creditworthiness............... 124 (100.0) (.8) (4.8) 111 (89.6) 6 (4.8) Maturity of term loans........................... 124 (100.0) (.8) 91 (73.4) 30 (24.2) 2 (1.6) Practice concerning review of credit lines or loan applications: Established customers............................. 125 (100.0) (.8) 68 (54.4) 49 (39.2) 7 (5.6) New customers.......................................... 125 (100.0) (2.4) 48 (38.4) 64 (51.2) 10 (8.0) Local service area customers................. 125 (100.0) (.8) 66 (52.8) 52 (41.6) 6 (4.8) Nonlocal service area customers.......... 125 (100.0) (.8) (3.2) 71 (56.8) 46 (36.8) 3 (2.4) Factors relating to applicant:2 Value as depositor or source of collat­ eral business........................................... 124 (100.0) (4.8) 94 (75.9) 23 (18.5) 1 (.8) Intended use of the loan......................... 125 (100.0) (2.4) 89 (71.2) 31 (24.8) 2 (1.6) Loans to independent finance companies:3 Terms and conditions: Interest rate charged................................ 124 (100.0) 57 (45.9) 41 (33.1) 26 (21.0) Compensating or supporting balances. 124 (100.0) (.8) 117 (94.4) 6 (4.8) Enforcement of balance requirements . 124 (100.0) (4.0) 109 (87.9) 10 (8.1) Establishing new or larger credit lines. 124 (100.0) (1.6) (.8) 70 (56.5) 49 (39.5) (1.6) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses........................ 125 (100.0) (.8) 55 (44.0) 66 (52.8) 3 (2.4) Consumer instalment loans.................... 124 (100.0) 57 (45.9) 56 (45.2) 11 (8.9) Single-family mortgage loans................. 121 (100.0) (.8) 52 (43.0) 53 (43.8) 15 (12.4) Multifamily mortgage loans................... 112202 (100.0) (.8) 89 (74.2) 27 (22.5) 3 (2.5) All other mortgage loans........................ (100.0) (.8) 82 (67.2) 35 (28.7) 4 (3.3) Participation loans with correspondent banks....................................................... 125 (100.0) (.8) 74 (59.2) 47 (37.6) 3 (2.4) Loans to brokers...................................... 122 (100.0) 88 (72.1) 31 (25.4) (2.5) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1971 377 had been major sources of strength ply of lendable funds and were faced throughout the year. To encourage busi­ with limited demands for business loans, ness borrowing, the prime rate had been they repeatedly stressed in the November reduced as other short-term interest rates survey in particular, that they were at­ had receded from their August highs. tempting to maintain and improve credit Furthermore, some banks adopted a more standards. The vivid memories of the com­ flexible policy in setting rates on busi­ mercial paper crisis and adverse loss ex­ ness loans; they instituted what is now periences of the previous year were referred to as a floating prime rate, one still quite evident. Thus, while banks that varies with open market rates such sought new customers aggressively, they as the commercial paper rate. placed a greater emphasis on loan qual­ Although bankers had an ample sup­ ity. □ QUARTERLY SURVEY—MAY 1971 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1971, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 125 (100.0) 1 (-8) 49 (39.2) 57 (45.6) 18 (14.4) Anticipated in next 3 months....................... 125 (100.0) 75 (60.0) 49 (39.2) 1 (.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 124 (100.0) 53 (42.7) 44 (35.5) 24 (19.4) 3 (2.4) Compensating or supporting balances. 125 (100.0) 9 (7.2) 111 (88.8) 5 (4.0) Standards of creditworthiness............... 125 (100.0) 9 (7.2) 115 (92.0) 1 (.8) Maturity of term loans........................... 125 (100.0) 1 (.8) 6 (4.8) 107 (85.6) 11 (8.8) Practice concerning review of credit lines or loan applications: Established customers............................. 125 (100.0) 4 (3.2) 108 (86.4) 10 (8.0) 3 (2.4) New customers.......................................... 125 (100.0) 1 (.8) 7 (5.«) 91 (72.8) 24 (19.2) 2 (1.6) Local service area customers................. 123 (100.0) 3 (2.4) 107 (87.1) 10 (8.1) 3 (2.4) Nonlocal service area customers........... 122 (100.0) i.......08) 12 (9.8) 94 (77.1) 13 (10.7) 2 (1.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business........................................... 124 (100.0) 10 (8.1) 109 (87.9) (4.0) Intended use of the loan......................... 125 (100.0) 3 (2.4) 113 (90.4) (7.2) Loans to independent finance companies:3 Terms and conditions: Interest rate charged................................ 125 (100.0) 22 (17.6) 88 (70.4) 14 (11.2) (.8) Compensating or supporting balances. . 125 (100.0) 5 (4.0) 119 (95.2) 1 (.8) Enforcement of balance requirements . 125 (100.0) 11 (8.8) 112 (89.6) 2 (1.6) ‘(.‘8 )' Establishing new or larger credit lines. 125 (100.0) (1.6) (6.4) 79 (63.2) 35 (28.0) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 125 (100.0) 4 (3.2) 88 (70.4) 33 (26.4) Consumer instalment loans........................ 124 (100.0) 1 (.8) 79 (63.7) 35 (28.2) (7.3) Single-family mortgage loans..................... 122 (100.0) 1 (.8) 2 (1.6) 71 (58.3) 42 (34.4) (4.9) Multifamily mortgage loans....................... 122 (100.0) 1 (.8) 3 (2.5) 104 (85.2) 14 (11.5) All other mortgage loans............................ 123 (100.0) 1 (.8) 4 (3.3) 91 (73.9) 27 (22.0) Participation loans with correspondent banks........................................................... 124 (100.0) 4 (3.2) 99 (79.9) 19 (15.3) (1.6) Loans to brokers.......................................... 122 (100.0) 2 (1.6) 110 (90.2) 8 (6.6) (1.6) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN □ APRIL 1972 QUARTERLY SURVEY—AUGUST 1971 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 13, 1971, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks: figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 125 (100.0) (.8) 38 (30.4) 69 (55.2) 161 (12.8) 1 (.8) Anticipated in next 3 months....................... 125 (100.0) (.8) 65 (52.0) 58 (46.4) (.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged............................... 125 (100.0) (2.4) 79 (63.2) 42 (33.6) (.8) C St o a m nd p a e r n d s s a t o in f g c r o e r d i s t u w p o p r o th rt i i n n e g s s b . a .. l .. a .. n .. c .. e .. s .. . 1 1 2 2 5 5 ( ( 1 1 0 0 0 0 . . 0 0) ) (i-6) 2 1 8 2 (2 (9 2 . .4 6 ) ) 1 9 11 5 ( (8 7 8 6. . 0 8 ) ) (1.6) Maturity of term loans........................... 125 (100.0) (6.4) 110 (88.0) (5.6) Practice concerning review of credit lines or loan applications: Established customers.............................. 125 (100.0) 6 (4.8) 113 (90.4) 6 (4.8) New customers.......................................... 125 (100.0) (1.6) 12 (9.6) 99 (79.2) 12 (9.6) Local service area customers................. 124 (100.0) 6 (4.8) 112 (90.4) 6 (4.8) Nonlocal service area customers........... 123 (100.0) 2 (1.6) 14 (11.4) 100 (81.3) 7 (5.7) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.......................................... 124 (100.0) 1 (.8) 20 (16.1) 99 (79.9) (3.2) Intended use of the loan......................... 125 (100.0) 10 (8.0) 111 (88.8) (3.2) Loans to independent finance companies:3 Terms and conditions: Interest rate charged................................ 125 (100.0) (1.6) 39 (31.2) 83 (66.4) 1 (.8) Compensating or supporting balances. 125 (100.0) (.8) 11 (8.8) 112 (89.6) 1 (.8) Enforcement of balance requirements . 125 (100.0) (.8) 15 (12.0) 107 (85.6) 2 (1.6) Establishing new or larger credit lines. 125 (100.0) (2.4) 18 (14.4) 89 (71.2) 15 (12.0) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 124 (100.0) 8 (6.5) 99 (79.8) 17 (13.7) Consumer instalment loans........................ 123 (100.0) 2 (1.6) 91 (74.0) 26 (21.1) (3.3) Single-family mortgage loans..................... 122 (100.0) 8 (6.6) 91 (74.6) 22 (18.0) (.8) Multifamily mortgage loans....................... 121 (100.0) (.8) 6 (5.0) 106 (87.6) 7 (5.8) (.8) All other mortgage loans............................ 122 (100.0) 9 (7.4) 103 (84.4) 9 (7.4) (.8) Participation loans with correspondent banks........................................................... 122 (100.0) 5 (4.1) 107 (87.7) 10 (8.2) Loans to brokers.......................................... 121 (100.0) 6 (5.0) 106 (87.6) 9 (7.4) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1971 379 QUARTERLY SURVEY—NOVEMBER 1971 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1971, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 125 (100.0) (.8) 23 (18.4) 52 (41.6) 48 (38.4) (.8) Anticipated in next 3 months....................... 124 (100.0) (.8) 37 (29.8) 75 (60.5) 11 (8.9) Much firmer Moderately Essentially Moderately Much Total policy firmer unchanged easier easier Loans to nonfinancial businesses: Terms and conditions: Interest rates charged................................ 125 (100.0) 39 (31.2) 81 (64.8) (4.0) Compensating or supporting balances. . 125 (100.0) (1.6) 107 (85.6) 16 (12.8) Standards of creditworthiness................. 125 (100.0) (5.6) 114 (91.2) 4 (3.2) Maturity of term loans.............................. 124 (100.0) (1.6) 108 (87.1) 14 (11.3) Practice concerning review of credit lines or loan applications: Established customers............................... 125 (100.0) 105 (84.0) 20 (16.0) New customers............................................ 124 (100.0) (6.5) 89 (71.7) 27 (21.8) Local service area customers................... 124 (100.0) 104 (83.9) 20 (16.1) Nonlocal service area customers............. 123 (100.0) (.8) (5.7) 96 (78.1) 19 (15.4) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.............................. 123 (100.0) (.8) (5.7) 102 (82.9) 13 (10.6) Intended use of the loan............. 125 (100.0) (.8) (2.4) 116 (92.8) 5 (4.0) Loans to independent finance companies Terms and conditions: Interest rate charged........................ 125 (100.0) (.8) 74 (59.2) 47 (37.6) (2.4) Compensating or supporting balances. . 125 (100.0) (1.6) 111290 (95.2) 4 (3.2) Enforcement of balance requirements. . 125 (100.0) (2.4) (96.0) 2 (1.6) Establishing new or larger credit lines. . 125 (100.0) (.8) (2.4) 96 (76.8) 25 (20.0) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more wiling more willing Willingness to make other types of loans: Term loans to businesses............................. 125 (100.0) (2.4) 100 (80.0) 22 (17.6) Consumer instalment loans........................ 124 (100.0) (.8) 86 (69.4) 33 (26.6) (3.2) Single-family mortgage loans..................... 122 (100.0) (1.6) (3.3) 88 (72.2) 27 (22.1) (.8) Multifamily mortgage loans....................... 121 (100.0) (.8) (4.1) 110 (91.0) 5 (4.1) All other mortgage loans............................ 123 (100.0) (2.4) 104 (84.6) 16 (13.0) Participation loans with correspondent banks........................................................... 125 (100.0) (1.6) 104 (83.2) 19 (15.2) Loans to brokers........................................... 123 (100.0) 110 (89.4) 12 (9.8) (.8) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement of J. L. Robertson, Vice Chair­ While some doubt was expressed be­ man, Board of Governors of the Federal fore the Act was passed whether this mul- Reserve System, before the Subcommittee tiple-agency structure would be workable, on Consumer Affairs of the Committee on our experience to date has been favorable. Banking and Currency, House of Repre­ We believe Truth in Lending is being sentatives, on the Truth in Lending Act enforced evenhandedly and vigorously by and Federal Reserve Regulation Z, all of the enforcement agencies in con­ March 22, 1972. formance with Regulation Z and the Board’s interpretations of it. The pre­ Madam Chairman, it is a pleasure to dicted interagency conflicts in interpreting appear before the Subcommittee on Con­ the law, with corresponding confusion sumer Affairs. I have with me Frederic and inequitable enforcement, have simply Solomon, Director of our Division of not materialized. This has been due in Supervision and Regulation, Griffith L. large part to the cooperative attitude of Garwood, Chief of the Truth in Lending the various agencies involved. We are Section, and Jerauld C. Kluckman, anxious to acknowledge the considerable Accountant-Analyst with that section. contribution of these agencies to the Today I intend to discuss four major general success of the administration of topics relating to Truth in Lending. These Regulation Z, which has extended beyond can be identified as the Board’s adminis­ their enforcement efforts with respect to trative experience, creditor compliance, their particular class of creditors. This is recommendations for legislative changes, particularly true of the Federal Trade and areas for further study. Commission, which has had the task of carrying the bulk of the enforcement ADMINISTRATIVE EXPERIENCE responsibility under a regulation drafted While the Act delegates rule-making and administered by another agency. authority to implement its provisions With this as background I would like solely to the Board of Governors of the to summarize what the Board has done Federal Reserve System, actual enforce­ to administer its functions under the Act ment of these rules (Regulation Z) is dele­ since I appeared before this subcommittee gated to nine separate Federal agencies, on March 6, 1969. At that time, you may including the Board. For the most part, recall, the final version of Regulation Z Federal agencies with general supervisory had been approved by the Board and authority over a particular group of published, but the effective date, July 1, creditors were also given Truth in Lending 1969, still lay ahead. Since that time, enforcement responsibility over those there have been necessary adjustments, creditors. Enforcement for all remaining interpretations, and explanations of the creditors, except in those States that have regulation to maintain it as a workable an exemption from the Act, is the respon­ and useful tool in implementing the Truth sibility of the Federal Trade Commission. in Lending Act. 380 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Board has found it necessary to changes by creditors in their open-end amend Regulation Z 11 times. In addi­ credit plans that were beneficial to cus­ tion, the Board has issued 49 formal in­ tomers. In response to this problem, the terpretations of Regulation Z that are Board adopted relaxing amendments. intended to clarify or further explain cer­ Likewise, it became evident that the tain provisions of the regulation. These requirements regarding advertising mort­ amendments and interpretations (which gage credit, as they applied to so-called are listed in Appendix A)1 have been re­ “Section 235 FHA programs” (designed quired from time to time to solve specific to provide home ownership for lowerproblems that arose as we attempted to income families), were actually inhibiting apply the concept of Truth in Lending to the informative advertising of properties the complex and changing pattern of to which this financial assistance relates. consumer credit. The Board added a section (§ 226.10(e)) Amendments to Regulation Z. At an early to the regulation to resolve this problem. date, the Board became aware that, with­ Similar adjustments were made with out some adjustments in the regulatory respect to the application of the right of requirements, the application of Truth in rescission to the sale of vacant lots ex­ Lending to agricultural credit was overly pected to be used as the customer’s prin­ burdensome to creditors and of little or cipal residence (§ 226.9(b)), the effect of no real benefit to agricultural consumers. the new Federal holiday schedule on the Consequently, it rewrote the section of rescission period (§ 226.9(a)), the effect Regulation Z (§ 226.8(0)) dealing with of leap year on preprinted disclosures discounts for prompt payment, modified (§226.6(1)), and the continued applicabili­ the rescission requirements as they applied ty of the Federal civil liability provisions to agricultural credit (§ 226.9(c) and (g)), after the issuance of a State exemption and added a section (§ 226.8(p)) to cover (§ 226.12). credit with indefinite advances and pay­ Interpretations. A number of Board in­ ments, common in agricultural credit terpretations of Regulation Z have been transactions. These amendments were necessitated by the existence of specialized accompanied by Board interpretations credit practices to which the regulation (§ 226.301 and § 226.812 of Title 12, had to be matched—for example, certain Code of Federal Regulations) that also layaway plans, vendor’s single-interest in­ sought to clarify and improve the applica­ surance, seller’s points, assumptions of tion of Truth in Lending to the unique existing loans, variable-rate obligations, characteristics of agricultural credit. While renewals of notes, multiple-advance loans, these adjustments have gone a long way and demand loans. toward solving the agricultural credit The point I want to make is that the problem, the Board believes that addi­ regulation, to a certain extent, is a fluid tional relief is needed, as I will discuss document that the Board has found neces­ later. sary to adjust from time to time in the It also became evident that the regula­ light of specialized creditor practices of tion’s prior disclosure requirements in which we became aware and in response open-end credit (§ 226.7(e)) could impede to new developments in the methods of 1 Copies of appendices referred to herein are available extending credit. Where requirements have upon request to Publications Services, Division of Ad­ been overly burdensome or where dis­ ministrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. closures have proven misleading or con­ 381 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN □ APRIL 1972 fusing to customers, the Board has at­ closure forms. Nearly one and one-half tempted to adjust the regulation’s re­ million of these pamphlets have been quirements to make them as workable as distributed to creditors and other interested possible. We have been assisted in this persons. A filmstrip designed to explain task by the fine help of our public- Truth in Lending from a creditor’s point spirited Advisory Committee on Truth of view was prepared and distributed. in Lending, composed of 20 individuals These filmstrips (there are 650 of them) whom we consider to be knowledgeable, can be purchased or borrowed free of nationwide representatives of the public— charge. The staffs of the Board, the both creditors and consumers. We have Federal Reserve Banks, and the other relied heavily on the members of the com­ enforcement agencies have participated mittee in coping with difficult problems, in numerous meetings and seminars re­ and their advice has been sound and help­ garding Truth in Lending. Much of the ful. Appendix B lists the committee mem­ creditor education program took place bers, both former and current. during the initial implementation of the Staff letters. In addition to preparing regulation, when the thirst for information amendments and interpretations of the on how to comply was almost insatiable. regulation for the Board, our staff has The demand for creditor education sub­ responded to an enormous volume of sided as time passed and creditors gained written and telephone inquiries. We have more experience under the regulation. not kept count of all of the correspondence I should not conclude my discussion we have written relating to Truth in of the creditor educational program with­ Lending, but to give you some idea of the out mentioning the admirable work of volume, we responded to approximately many trade associations in providing in­ 1,000 letter inquiries during 1971. Many formation to their members. of the staff’s letters have been given wide At the outset, the Board emphasized distribution by commercial publishers. information for creditors, since the suc­ In an effort to maintain uniformity of cess of Truth in Lending depends upon view among the various enforcement their understanding of the requirements. agencies, indexed copies of our staff However, if the purposes of the Act are letters treating new or unusual subjects to bfe fully achieved, the consumer must have been provided to the 12 Federal be able to utilize effectively the informa­ Reserve Banks, the eight other Federal tion provided to him. Consequently, the enforcement agencies, and the four States Board has developed several consumerthat have received an exemption from oriented educational tools. the Federal Act on the basis of substantial­ The first is a filmstrip that explains ly similar State law. Truth in Lending from the consumer Education. We have devoted consider­ point of view. Over 1,200 filmstrips have able effort to educational programs for been distributed. They may be purchased both consumers and creditors. or borrowed. We are pleased to note that Our first creditor-oriented educational many of the users have been school tool was the pamphlet, What You Ought systems. to Know About Truth in Lending. This The second major consumer tool is a pamphlet contains the text of the Act and leaflet entitled What Truth in Lending the regulation, questions and answers Means to You. This leaflet explains in about Truth in Lending, and sample dis­ simple terms the basic facts about Truth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 383 in Lending. Many methods and sources credit plans, the right of rescission, and have been used to distribute, free, more even advertising. than two and one-half million copies of this leaflet. COMPLIANCE The Board’s most recent consumer- With respect to creditor compliance with oriented educational release also looks the Truth in Lending Act, let me say as if it will be a best seller. This is a that the Federal agencies with general Spanish translation of the leaflet, What supervisory authority over their creditor Truth in Lending Means to You. groups, such as the Board, the Comptroller State exemptions. Pursuant to the pro­ of the Currency, the Federal Home Loan visions of the statute (§ 123), the Board Bank Board, and the National Credit Union has granted exemptions from the disclosure Administration, seem to have experienced and rescission provisions of the Federal no significant problems in the enforcement Act to the States of Connecticut, Maine, of Regulation Z. These agencies inform Massachusetts, and Oklahoma. The ex­ us that the level of compliance is high, emptions granted generally pertain to all and that the errors that are found usually consumer credit transactions within the result from misunderstanding or clerical exempt State, except for those transac­ error, rather than an attempt to evade the tions in which a federally chartered in­ Act. For the most part, compliance is stitution is a creditor. An exemption can determined by these agencies during the be granted to any State that has law sub­ regular periodic examinations of the in­ stantially similar to the Federal Truth in stitutions. Lending Act (including implementing The Federal Trade Commission has regulations) and adequate provision for conducted two surveys in an attempt to enforcement. determine the extent of compliance by The Board maintains close liaison with creditors under its jurisdiction, such as each exempt State. We believe that each finance companies, automobile dealers, of them is conscientiously implementing and jewelry stores—creditors that are not its own Truth in Lending law in a manner regularly supervised by a Federal agency. consistent with the Federal Act. The results of these two surveys were Preliminary applications for exemptions reported by the Commission in an April have also been received from the States 1971 release entitled “Federal Trade of Kansas and Wyoming. These are Commission Report on Surveys of Creditor currently being reviewed to assure their Compliance with the Truth in Lending completeness prior to publishing official Act.” The release revealed that 86 per notice of their receipt in the Federal cent of all creditors surveyed were using Register. contracts that were in either total or sub­ Litigation. In its annual report on stantial compliance. Also, a vast majority Truth in Lending for 1971, the Board of the larger creditors—those whose sales indicated that it was aware of 71 civil volumes are $ 1 million or more—were in actions that have been brought under total or substantial compliance. The results § 130 of the Act. It is likely that additional indicate that not only are most creditors suits have been instituted. I will not dis­ under the Commission’s jurisdiction in cuss these suits, except to mention that total or substantial compliance, but also they cover the waterfront—disclosures most disclosures made to consumers were under open-end credit as well as other in total or substantial compliance. These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN □ APRIL 1972 surveys identified for the Commission the $13 million potential liability of the types of creditors and the geographic bank in the Ratner case led many creditors areas to which its enforcement efforts to fear that similar suits filed against them should be principally directed. The re­ could seriously threaten their solvency. sults were of assistance to the Commis­ The court ultimately held in Ratner that sion in planning its enforcement pro­ a class action was not sustainable, but gram. other class action cases relating to al­ It also appears that substantial com­ leged Truth in Lending violations are pliance by creditors under their jurisdic­ still pending. tion is being achieved by each of the four I believe that this almost unlimited exempt States. class action exposure may be detrimental Based upon the reports of all enforce­ to consumer interests and, in fact, may ment agencies, including the exempt be an impediment to effective private States, it is the Board’s belief that sub­ enforcement of Truth in Lending through stantial compliance with Truth in Lending class actions. By this I mean that the is being achieved. courts, which are given a good deal of discretion in determining whether or not RECOMMENDATIONS FOR LEGISLATIVE to allow class actions, may be inclined to CHANGES disallow them simply because of the seem­ The Board’s most recent recommenda­ ingly unreasonable magnitude of the tions for legislative changes have been class action recovery. Consequently I presented as part of its annual report on believe it is important to suitably limit Truth in Lending for 1971. Since then this exposure while at the same time the Chairman of the Subcommittee on maintaining class actions as a viable Financial Institutions of the Senate Com­ remedy for violations of the Act and mittee on Banking, Housing and Urban Regulation Z. Others more qualified Affairs has asked the Board to provide than I may suggest specific solutions to drafts of legislation to implement the the problem, but I would hope class recommendations, and the Board has done actions would not be prohibited or unduly so by letter dated February 28, 1972 limited because they provide the most (Appendix C). effective sanction by which compliance Civil liability. One area in which legisla­ is achieved. tive changes are needed relates to civil At least one step in solving this problem liability under the Act. Many creditors may be the insertion of a “good faith” have been extremely concerned over provision in the statute. The Act’s civil their possible exposure to class action liability section does not necessarily pre­ suits and the possible ruinous liability clude liability even when a creditor has that might result. Their concern was acted in “good faith” reliance on Regula­ prompted largely by Ratner v. Chemical tion Z or the Board’s interpretations there­ Bank New York Trust Company, a case of. The Board has recommended inserting in which a U.S. District Court held the in the Act a “good faith” provision, bank in violation of the Act for failure to such as that in the Securities Exchange disclose the nominal annual percentage Act of 1934, that would apply to both rate on open-end-credit billing statements the Board’s Regulation Z and its inter­ that showed an outstanding balance but no pretations of it. The following wording finance charge yet incurred. The reported was furnished to the Senate subcommittee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 385 for insertion in the civil liability pro­ consumer would be a single $100, not visions: a multiple of that amount. No provision of this section imposing any Rescission. The right of rescission is liability shall apply to any act done or omitted another area that the Board believes in good faith in conformity with any rule, merits legislative changes. regulation or interpretation thereof by the Section 125 of the Act, implemented Board, notwithstanding that such rule, regula­ tion or interpretation may, after such act or by. Regulation Z (§ 226.9), provides that omission, be amended or rescinded or be in certain credit transactions in which a determined by judicial or other authority to security interest in the customer’s resi­ be invalid for any reason. dence is involved, the customer has Another problem relates to the minimum three business days in which to rescind recovery provision of the statute. Section the transaction. The creditor must notify 130 of the Act makes a creditor liable for the customer of this right and provide a a minimum of $100 for failure to make form that may be used to exercise that proper disclosure “in connection with right. The law does not limit the period any consumer credit transaction.” There for which the right continues where the is some uncertainty as to the meaning creditor has failed to notify the customer of the word “transaction” when apply­ of his right—the 3-day period never begins ing § 130 to multiple errors—for example, to run. Also, even though the required to an error on a periodic statement, which notice is given, there is a question as to is sent repeatedly in connection with an whether the rescission period also con­ open-end account. It might be contended tinues indefinitely if other required dis­ that each separate purchase for which a closures have not been made. The titles credit card is used constitutes a separate to many residential properties might be­ “transaction” for purposes of § 130, or come clouded by uncertainty arising from that each periodic statement is a separate these rights of rescission. The Board transaction. In our view, the opening and recommends that Congress amend the use of the account should be considered Act to provide a 3-year limit on the time as a single transaction. We believe that the right of rescission may run, where Congress should clarify the meaning of the creditor has failed to give proper the very important term “transaction” disclosures. and have suggested the following: An additional recommendation results The multiple failure to disclose to any per­ from two legal actions that have been son any information required under this chapter to be disclosed in connection with a brought against the Board by home im­ single account under an open end consumer provement contractors alleging that the credit plan, other single consumer credit sale, Board exceeded its authority by provid­ consumer loan or other extension of consumer credit, shall entitle the person to a single ing in Regulation Z (§ 226.2(z) and recovery under this section. § 226.9(a)) that the right of rescission The new provision is designed to make applies to consumer credit contracts certain that although there may have secured by a mechanic’s or materialman’s been multiple failures to disclose re­ lien on the customer’s home, even though quired information on an account or in no mortgage or deed of trust is executed connection with a single credit transac­ by the customer. In one case, summary tion, for example, where an omission judgment was granted in favor of the occurs in a series of periodic billing Board. In the other, the court held that the statements, the minimum recovery to a provision (§ 226.9(a)) was null and void Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN □ APRIL 1972 as it relates to liens that may come into fact that instalment contracts of more existence by operation of law. Appeals than four instalments typically include have been filed in both cases. some component to compensate the The right of rescission was designed to creditor for the cost involved in allowing allow home owners a ‘ ‘cooling-off’ ’ period deferred payment, even though that cost before being irrevocably bound by credit may not be separately identified as a transactions involving security interests finance charge. The Board believes the in their homes, and to reduce the danger rule is both within the scope of its author­ of homeowners being overreached by ity and necessary to prevent evasion of unscrupulous home improvement contrac­ the Act. tors. The Board believes that accomplish­ However, in Mourning v. Family Pub­ ment of this goal necessitates the coverage lications Service, Inc., the court declared under the right of rescission of all con­ the rule invalid, although the rule has sumer credit transactions in which a cus­ been upheld in other courts. Should the tomer’s home may be lost through fore­ adverse decision be allowed to stand, closure, whether by mortgage, deed of many creditors would not only escape trust, or other lien rights. The Board the requirement of making important recommended that Congress amend the Truth in Lending disclosures prior to con­ Act to remove any doubt as to the cover­ summation of their contracts, such as the age of these transactions under Section number, amount, and due dates of pay­ 125 by adding wording that specifically ments and the total amount of the con­ includes security interests that arise by sumer’s obligation, but would also be operation of law under that section. free of the Act’s prohibitions against More-than-four-instalments rule. Our “bait” credit advertising. Since creditors annual report also recommends that would not be subject to the advertising Congress expressly declare that the Act requirements, they would be able to ad­ covers transactions involving more than vertise “no downpayment” or the amount four instalments without an identifiable of the payments without further informa­ finance charge. By providing in Regula­ tion, which is prohibited for creditors tion Z that Truth in Lending encompasses subject to the Act. transactions payable in more than four In addition, home improvement con­ instalments, the Board gave notice to tractors might avoid giving customers the vendors who may have considered con­ right of rescission, even where they ob­ cealing finance charges in the price of tained a second mortgage on the cus­ goods to evade the Act’s requirements tomer’s home, simply by “burying” (as well as the so-called “no-charge-for- the finance charges in the price. credit” sellers already operating in low In short, the Board is convinced that income markets) that the Board con­ invalidation of its “more-than-four-insidered them subject to the Act’s require­ stalments” regulation could seriously im­ ments. The Board did this to insure that pair the effectiveness of the legislation. they would make certain important dis­ We believe that Congress should amend closures required by Truth in Lending, the Act to remove any possible doubt even when no finance charge or annual about its coverage of transactions pay­ percentage rate was disclosed. able in more than four instalments and The Board’s more-than-four-instal- has suggested language for such legisla­ ments rule was based on the economic tion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 387 Agricultural credit. The inclusion of ag­ cannot be made for either complete cover­ ricultural credit under the coverage of the age or complete exemption of agricul­ Act has stirred a great deal of controversy, tural credit under Truth in Lending. How­ and has created numerous problems, as ever, it tends to reinforce the reasons for I mentioned earlier. the Board’s continuing to recommend Some creditors have argued that the that credit primarily for agricultural pur­ very nature of many agricultural credit poses in excess of an appropriate amount transactions (which frequently involve (we have suggested $25,000) be exempted advances and payments for which both from the provisions of the Act, whether time and amount are unknown at the time or not secured by real property. This of consummation of the transaction) action by Congress would remove from makes them unsuited for meaningful coverage the larger credits that are general­ disclosure. Furthermore, it has frequently ly extended to more sophisticated bor­ been argued that since agriculture is a rowers who are less in need of the dis­ business, it should be exempt from cover­ closures, while still providing the bene­ age of the Act, just as other business fits of disclosure to the smaller bor­ credit is exempt. In spite of the amend­ rowers. Such an amendment would bene­ ments to Regulation Z designed to make fit creditors by eliminating the need for disclosures easier for agricultural creditors disclosures in some large and complex and more meaningful for farmers, the credit situations. problems have not been completely solved. Administrative enforcement. Finally, the Knowing the general view of creditors Board has recommended that the enforce­ that credit for agricultural purposes should ment responsibility relating to Federal land be exempt, the Board’s staff contacted a banks, Federal land bank associations, number of agricultural associations in an Federal intermediate credit banks, and effort to determine the views of the per­ production credit associations be trans­ sons who actually use agricultural credit. ferred from the Federal Trade Commis­ While the majority of the associations sion to the Farm Credit Administration, that responded indicated that agriculture the agency with general supervisory should be exempt, two of the largest authority over those creditors. Both agen­ representing general agricultural interests cies concur in this suggestion. (the Farmers Union and the National Grange) supported continued coverage. AREAS FOR FURTHER STUDY In addition, a poll of a number of agricul­ There are some remaining areas for tural economists indicated a 3 to 1 response further study in Truth in Lending that in favor of continuing coverage. In a poll concern the Board. We are studying of directors of farmer cooperatives, which these areas to determine whether there is has been reported to the Board, 55 per a need for further action either by the cent said that Truth in Lending dis­ Board or by the Congress. closures assisted them in determining Discounts. One area of study relates to credit costs, while 42 per cent indicated discounts. The initial disclosure require­ that the disclosures were of no assistance. ments relating to discounts for prompt Furthermore, 45 per cent indicated that payment posed serious compliance prob­ Truth in Lending made little change in lems. The apparent effect of treating their credit-buying habits. the offering of discounts as involving All of this suggests that a strong case finance charges has caused some discon­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN □ APRIL 1972 tinuance of the discount practice, to the of specific credit terms in credit advertis­ detriment of those consumers who pay ing. early. An August 1969 amendment to Complexity. Regulation Z is complex. Regulation Z alleviated but did not en­ Truth in Lending disclosures are complex. tirely solve the problem. We are giving A goal to which we are continually the problem further study. working is simplification of both the Disclosures in foreign language. An­ regulation and the disclosures. Unfortu­ other area of inquiry involves the desir­ nately, given the complexity of credit ability of requiring disclosures in foreign transactions, much of it the product of languages. In order to provide uniform­ complex State legislation, there seems to ity in disclosure of credit terms, Regulation be little hope of significantly reducing Z requires certain English terminology the intricacy of Truth in Lending. Never­ to be used. However, such disclosures theless, that is our goal and we will con­ may be of little value to consumers who tinue to adjust the requirements of Regula­ do not understand English. Although tion Z as best we can to meet this goal. disclosures must be given before con­ By mentioning these problem areas, I summation of a credit transaction and, do not suggest that no other provisions of theoretically, a consumer can obtain an the Act and Regulation Z raise difficult explanation or a translation of the dis­ questions. Such questions seem to arise closures before committing himself, this every day. Fortunately, we have been able is not likely to happen in actual practice. to resolve most of them. We believe, A number of possible solutions to this despite all the problems, Truth in Lend­ problem have been considered, but none ing is serving the public well. that we have explored appear feasible. As I have mentioned, the Board has CONCLUSION taken a step toward alleviation of the The real test of the worth of this law is problem by publishing a Spanish version whether it is achieving its purpose, of the consumer leaflet, What Truth in which as stated in the Act is “to assure a Lending Means to You. The initial de­ meaningful disclosure of credit terms so mand for this leaflet has been encourag­ that the consumer will be able to com­ ing. pare more readily the various credit Advertising. A third area of study re­ terms available to him and thereby avoid lates to the lack of advertising of specific the uninformed use of credit.” To obtain credit terms. The inclusion of specific some indications, the Board has con­ credit terms in credit advertising appears ducted two surveys of consumer awareness to be continuing at a level substantially of finance charges and interest rates. lower than desirable to enable consumers The first survey was conducted in June to use advertising effectively as a means 1969, and was designed to serve as a to shop for the best credit terms available. benchmark of consumer awareness prior However, there are indications of in­ to the advent of Federal Truth in Lend­ creased use of more specific advertising. ing. The second took place during Septem­ Creditor complaints against the advertising ber and October 1970. The results were restrictions have diminished. We are re­ compared with the first survey’s results viewing this area to determine whether to determine changes in consumer knowl­ changes can be made in the regulation edge since Federal Truth in Lending be­ or the Act to encourage greater inclusion came operative. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 389 The surveys yielded these three major The results, then, are mixed but en­ findings: couraging. The problems have not been 1. The proportion of consumer-bor- insoluble, as claimed by some of Truth rowers with no knowledge of the annual in Lending’s early opponents, but neither percentage rates they were paying has has the public’s confusion over credit declined substantially. costs been completely eradicated, as 2. A greater proportion of those bor­ hoped for by some supporters of the rowers who believe they know the annual Act. percentage rates they are paying re­ In summary, the public is better in­ ported rates in line with prevailing formed than before enactment of Truth in rates for the types of credit involved. Lending, the major problems in imple­ 3. In spite of the general improve­ mentation have been solved, and with ment in consumer awareness, there re­ continued education the benefits to the mains a large proportion of consumer- public will increase. borrowers who are not aware of the I appreciate having had the opportunity annual percentage rate they are paying. to appear before this subcommittee. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Com­ mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve Bulletin. The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the Bulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The record for the meeting held on January 11, 1972, follows: 390 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEETING HELD ON JANUARY 11,1972 1. Current Economic Policy Directive. The information reviewed at this meeting suggested that the rate of growth in real output of goods and services (real gross national product) had stepped up in the fourth quarter of 1971 and that prices, which had been subject to Government controls since mid- August, had risen relatively little from the third to the fourth quarter. Staff projections suggested that the faster pace of growth in real GNP would continue in the first half of 1972. In December nonfarm payroll employment and industrial pro­ duction rose further, although to a large extent the gains were attributable to post-strike recovery in coal mining. The unemploy­ ment rate edged up to 6.1 from 6.0 per cent in November. Retail sales fell in December, according to the advance report, in part because sales of new cars dropped from the high rates prevailing during the first phase of the new economic program. The rates of increase in prices and wages, which had slowed sharply during the freeze in effect from mid-August to mid- November, picked up afterward. Under the post-freeze program, some increases in wages—both previously scheduled and newly negotiated—were allowed to go into effect, some of the many pending applications for price increases were approved, and a general increase in residential rents was authorized. The latest staff projections for the first half of 1972 were similar to those of 4 weeks earlier, although the expansion now expected in consumer spending was not so rapid. Also, the projected rise in Federal outlays in the first quarter had been increased as a con­ sequence of a recently enacted Government pay raise effective in early January. It was still anticipated that business capital outlays, residential construction, and State and local government expenditures would grow at substantial rates and that business inventory investment would increase further. The Finance Ministers and central bank Governors of the Group of Ten, meeting at the Smithsonian Institution in Washington, reached agreement on December 18 regarding revaluations of foreign 391 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN □ APRIL 1972 currencies against the dollar and a widening of permissible margins for exchange rate fluctuations. Following announcement of the agreement, market exchange rates for major foreign currencies against the dollar generally moved up to levels a little above their new lower limits. Outflows of short-term capital from the United States—which had been very large during much of 1971—came to a halt, and some funds flowed back before the year-end. However, the U.S. basic balance of payments remained in deficit and foreign official reserves declined only a little. Demands for business loans at commercial banks remained weak in December, and most large banks reduced their prime rates around the end of that month. Real estate and consumer loans continued to expand at a rapid pace in December and banks sharply increased their holdings of securities. The narrowly defined money stock (private demand deposits plus currency in circulation, or M,), which had not grown on balance from August to November, rose somewhat from November to December. Over the fourth quarter increased at an annual rate of about 1 per cent, after rising at rates of about 3.5 per cent over the third quarter and 10 per cent over the first half of 1971.1 Inflows of savings to commercial banks increased in December and the money stock more broadly defined (Mt plus commercial bank time deposits other than large-denomination CD’s, or M2) rose at a substantial rate. Growth in the bank credit proxy—dailyaverage member bank deposits, adjusted to include funds from nondeposit sources—also was substantial as the average volume of both large-denomination CD’s outstanding and U.S. Govern­ ment deposits expanded. At the same time, banks reduced their outstanding borrowings of Euro-dollars by large amounts. Over the fourth quarter M2 and the proxy series increased at annual rates of about 8 and 9.5 per cent, respectively. System open market operations in the period since the last meeting of the Committee had been complicated by year-end churning in the money market and by uncertainties regarding the likely volume of reflows of short-term capital following the Smith­ 1Growth rates cited are calculated on the basis of the daily-average level in the last month of the period relative to that of the preceding period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 393 sonian Agreement. It was expected that if the reflows were large they would be accompanied by heavy foreign central bank sales of Treasury securities. In order to leave scope for future outright purchases of securities to moderate the market impact of such sales, the System made extensive use of repurchase agreements in the latter part of December to supply reserves on a temporary basis. In fact, however, reflows during the period were of quite modest dimensions. Over the period as a whole System operations had been directed at fostering a substantial easing in money market con­ ditions, against the background of the behavior of the monetary aggregates—particularly the continuing sluggishness of M ,. The Federal funds rate was about 3% per cent at the time of this meeting, down from the level of about 4% per cent prevailing at the time of the preceding meeting. In the 4 weeks ending January 5, member bank borrowings averaged $110 million compared with $395 million in the preceding 4 weeks. At the time of this meeting interest rates on most types of market securities were lower than they had been in mid-December. Short-term rates had fallen, in part because of the easing of money market conditions associated with the System’s reserve-supplying operations and because of anticipations on the part of market participants of still greater ease. Even with the auction on December 22 of $2.5 billion of tax-anticipation bills, Treasury bill rates had come under strong downward pressure as the reflow of short-term capital from abroad—and the consequent sales of bills by foreign central banks—proved to be far less than the market had expected. On the day before this meeting of the Committee, the market rate on 3-month bills was about 3.00 per cent compared with 3.95 per cent 4 weeks earlier. Declines in rates for long-term securities were much more moderate. Early in the period capital markets were still under the influence of the Treasury’s November financing, and later they were affected by discussion of the possibility that the February financing—the terms of which were expected to be announced near the end of January—would include an advance refunding. Public offerings of new corporate bonds were light, as is usual in December, but offerings of new State and local government bonds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN □ APRIL 1972 were contraseasonally large. It was expected that the volume of corporate issues would rebound in January but that issues of State and local governments would taper off. Yields in the secondary market for federally insured mortgages declined slightly further in December. Inflows of savings to nonbank thrift institutions, which had slowed in November, increased in December as the relative attractiveness of savings shares and deposits was enhanced by the further declines in market interest rates. In the Committee’s discussion considerable concern was expressed about the persistent sluggishness of key monetary aggre­ gates, and a number of members advocated action to provide sufficient reserves to support the faster monetary growth that they believed was required by the economic situation and outlook. It was noted in this connection that the level of member bank reserves, as well as that of Mx, had changed little during the fourth quarter despite a progressive easing of money market conditions. In the interest of assuring the provision of reserves needed for adequate growth in monetary aggregates, the Committee decided that in the period until its next meeting open market operations, while continuing to take appropriate account of conditions in the money market, should be guided more by the course of total reserves than had been customary in the past. The members also agreed that in the course of operations account should be taken of international developments and, begin­ ning late in the month, of the forthcoming Treasury financing. In placing greater emphasis on total reserves, the Committee took note of a staff analysis suggesting that moderate rates of growth in Mx and M2 in January and February were likely to be associated with a large increase in total reserves from December to January and then a decline in February—mainly as a conse­ quence of recent and anticipated changes in U.S. Government deposits, and allowing for the 2-week lag between member bank deposits and required reserves. Against the background of this analysis, a majority agreed that an annual rate of growth in total reserves of roughly 20 to 25 per cent from December to January would be satisfactory, provided that it could be attained without undue easing of money market conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 395 The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services increased more rapidly in the fourth quarter than it had in the third quarter, but the unemployment rate re­ mained high. In recent weeks wage and price developments have re­ flected some increases that had been deferred under the 90-day freeze. The narrowly defined money stock, which had not grown on balance from August to November, rose somewhat in December, while both the broadly defined money stock and the bank credit proxy increased substantially. Market interest rates, particularly short-term rates, have declined in recent weeks. After international agreement was reached in December on new central exchange rates and on wider margins of permissible variation, market exchange rates for major foreign currencies against the dollar initially moved to levels a little above their new lower limits. The volume of capital reflows to the United States has been modest, however, and the underlying U.S. balance of payments remains in deficit. In light of the foregoing developments, it is the policy of the Federal Open Market Commit­ tee to foster financial conditions consistent with the aims of the new governmental program, including sustainable real economic growth and increased employment, abatement of inflationary pres­ sures, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, while taking account of international developments and the forthcoming Treasury financing, the Com­ mittee seeks to promote the degree of ease in bank reserve and money market conditions essential to greater growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Clay, Daane, Maisel, Mayo, Mitchell, Morris, Robertson, and Sheehan. Votes against this action: Messrs. Hayes, Brimmer, and Kimbrel. Messrs. Hayes, Brimmer, and Kimbrel differed somewhat in their reasons for dissenting from this action. Mr. Hayes consid­ ered the emphasis placed on total reserves as an operating target to be an undesirable step; in his judgment, reserves were much less meaningful than other measures, such as the monetary and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN □ APRIL 1972 credit aggregates and interest rates, as an instrument for working toward the Committee’s basic economic objectives. Also, he was reluctant to issue a directive that might involve a substantial further easing of money market conditions, since the Committee had already moved rapidly in that direction and since it appeared to him that the economic outlook had improved somewhat in recent months. He was concerned about the risk that a further sharp decline in short-term interest rates might subject financial markets to unnecessary whipsawing and might tend to rekindle inflationary expectations. Mr. Brimmer shared the majority’s views concerning broad objectives of policy at this time, and he indicated that he would have voted favorably on the directive were it not for the decision to give special emphasis to total reserves as an operating target during coming weeks. In his judgment the Committee should have had more discussion of the implications of that decision, and in any case it should have postponed the decision until after it had held a contemplated meeting to be devoted primarily to discussion of its general procedures with respect to operating targets. Mr. Kimbrel favored supplying reserves at a rate that would accommodate orderly economic expansion. He voted against the directive because he thought it involved risks of depressing short-term interest rates to unsustainably low levels and of pro­ ducing excessive rates of growth in the monetary aggregates in the future. 2. Ratification of earlier actions. Earlier in the course of this meeting the Committee, by unanimous vote, ratified the action taken by the members on December 20, 1971, adding the clause “while taking account of international developments” at the end of the final sentence of the current economic policy directive then in effect. Also, with Mr. Robertson dissenting, the Committee ratified the action taken by vote of a majority on December 23, 1971, to suspend, until close of business on the day of the next meeting, the lower limit (specified in paragraph 1(c) of the continuing authority directive with respect to domestic open market opera­ tions) on interest rates on repurchase agreements arranged by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 397 Federal Reserve Bank of New York with nonbank dealers. The suspended provision specified that such repurchase agreements were to be made “at rates not less than (1) the discount rate of the Federal Reserve Bank of New York at the time such agreement is entered into, or (2) the average issuing rate on the most recent issue of 3-month Treasury bills, whichever is the lower.” The two actions in question had been taken for reasons set forth in the policy record for the meeting held on December 14, 1971. Mr. Robertson dissented from ratification of the second action for the same reasons that had led him to dissent from the action itself, as described in that policy record. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions INTERPRETATIONS OF REGULATION T same terms and conditions as those upon which the creditor, under the provisions of this part, may himself extend or maintain such credit to such INSTALMENT SALE OF TAX-SHELTER customer, but only jpon such terms and condi­ PROGRAMS AS “ARRANGING” FOR tions, . . .” (Emphasis supplied.) CREDIT In the case of credit for the purpose of purchasing The Board has been asked whether the sale by or carrying securities (purpose credit), § 220.8 of brokers and dealers of tax-shelter programs con­ the regulation (the Supplement to Regulation T) taining a provision that payment for the program does not permit any loan value to be given securi­ may be made in instalments would constitute ties that are not registered on a national securities “arranging” for credit in violation of Part 220 exchange, included on the Board’s OTC Margin (Regulation T). For the purposes of this inter­ List, or exempted by statute from the regulation. pretation, the term “tax-shelter program” means The courts have consistently held investment a program which is required to be registered pur­ programs such as those described above to be suant to section 5 of the Securities Act of 1933 (15 “securities” for purpose of both the Securities Act U.S.C. § 77e), in which tax benefits, such as the of 1933 and the Securities Exchange Act of 1934. ability to deduct substantial amounts of deprecia­ The courts have also held that the two statutes are tion or oil exploration expenses, are made avail­ to be construed together. Tax-shelter programs, able to a person investing in the program. The accordingly, are securities for purposes of Regula­ programs may take various legal forms and can tion T. They also are not registered on a national relate to a variety of industries including, but securities exchange, included on the Board’s OTC not limited to, oil and gas exploration programs, Margin List, or exempted by statute from the real estate syndications (except real estate invest­ regulation. ment trusts), citrus grove developments and cattle Accordingly, the Board concludes that the sale programs. by a broker/dealer of tax-shelter programs contain­ The most common type of tax-shelter program ing a provision that payment for the program may takes the form of a limited partnership. In the case be made in instalments would constitute “arrang­ of the programs under consideration, the investor ing’ ’ for the extension of credit to purchase or carry would commit himself to purchase and the partner­ securities in violation of the prohibitions of §§ ship would commit itself to sell the interests. The 220.7(a) and 220.8 of Regulation T. investor would be entitled to the benefits, and be­ come subject to the risks of ownership at the time CREDIT ON MUTUAL FUND SHARES the contract is made, although the full purchase price is not then required to be paid. The balance The Board of Governors has been asked whether of the purchase price after the down payment a broker or dealer may extend, maintain, or arrange usually is payable in instalments which range from for credit in a special bond account subject to § one to ten years depending on the program. Thus, 220.4(i) of Regulation T on collateral consisting the partnership would be extending credit to the of shares of registered open-end investment com­ purchaser until the time when the latter’s con­ panies whose portfolios are made up entirely or tractual obligation has been fulfilled and the final in part of exempted securities. payment made. The term “exempted securities” is defined in With an exception not applicable here, § 220.7 section 3(a)(12) of the Securities Exchange Act of (a) of Regulation T provides that: 1934 (15 U.S.C. § 78c(a)(12)) and generally in­ “A creditor [broker or dealer] may arrange for cludes Federal, State, and municipal securities. the extension or maintenance of credit to or for any Such securities are eligible as collateral for exten­ customer of such creditor by any person upon the sions of credit in § 220.4(i) and are entitled to good 398 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

faith loan value in an account carried pursuant to the factors set forth in the Act, and finds that: that section, under § 220.8(b). Union Trust ($213 million deposits),1 located in Part 220 (Regulation T) provides that brokers and the Second Banking District of New Jersey, serves dealers may not extend, maintain, or arrange for primarily the Greater Newark Market. It controls credit to purchase any securities unless the col­ 5 per cent of the Market’s deposits and is the sixth lateral for such credit consists of exempted securi­ largest of 45 banks located there. Union Trust oper­ ties or securities that are registered on a national ates 18 branch offices, 16 in Union County, and securities exchange or appear on the Board’s one branch each in Somerset and Monmouth OTC Margin List. Shares in registered open-end Counties. investment companies are not “exempted” secu­ Keansburg Bank ($67 million deposits) serves rities, irrespective of the composition of the port­ primarily the northern section of Monmouth County folio of the company, nor are they registered on that includes the Township of Middletown wherein national securities exchanges, or included on the its main office and four of its five branches are OTC Margin List. Accordingly, such shares do located, and the town of Keansburg where the not have loan value for purposes of Part 220 (Reg­ remaining branch is located. The home office pro­ ulation T), nor may brokers or dealers extend tection feature of State law which prohibits de novo credit against such shares to purchase or carry any branching into Middletown will not be removed securities under § 220.4(i) of such part. if the present proposal is consummated. The above-stated opinion is in conformity with The relevant market within which the com­ the Board’s views expressed previously in its petitive effects of the merger are to be assessed is interpretations announced in 1952 Bulletin 1105 the Asbury Park Market, which consists of all of (12 CFR 220.109) and 1955 Bulletin 267 (12 Monmouth County with the exception of the com­ CFR 220.112) to the effect that brokers or dealers munities of Millstone, Roosevelt, Upper Freehold are prohibited from arranging credit to purchase and Allentown (all located in the western portion unlisted shares issued by open-end investment of Monmouth County) and which Market includes companies. the economically significant seashore communi­ ties located in a 25-mile sector of the eastern por­ tion of Monmouth County. There are 12 banks operating 92 offices in the Asbury Park Market,2 the ORDERS UNDER BANK MERGER ACT four largest of which hold 78.8 per cent of total UNION COUNTY TRUST COMPANY, deposits. Keansburg Bank ranks fifth with 6.7 per ELIZABETH, NEW JERSEY cent of such deposits. Union Trust’s branch office in Monmouth County is located in Eatontown, Order Approving Application which is within the Asbury Park Market. How­ for M erger of Banks ever, Union Trust’s Eatontown branch office holds only a negligible percentage of the market’s Union County Trust Company, Elizabeth, New deposits. Consummation of the proposed transac­ Jersey (“Union Trust”), a member State bank of tion would not significantly increase the concen­ the Federal Reserve System, has applied for the tration of banking deposits in any area. Board’s approval pursuant to the Bank Merger Act Union Trust’s Eatontown branch is the closest (12 U.S.C. 1828(c)) of the merger of that bank with office to a Keansburg Bank office. They are located Keansburg-Middletown National Bank, Middle­ five miles apart. However, the service areas of town, New Jersey (“Keansburg Bank”), under the the two branch offices do not overlap, and there charter of Union Trust and title of United Counties is no significant present competition between the Trust Company. As an incident to the merger, the two banking offices or any other offices of each present offices of Keansburg Bank would become bank. Whereas there is some likelihood that con­ branches of the resulting bank. summation of the proposal may eliminate some As required by the Act, notice of the proposed degree of potential competition between Applicant merger, in form approved by the Board, has been and Keansburg Bank, it appears that the merger published, and the Board has requested reports on competitive factors from the Attorney General, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. ‘Total deposit data are as of June 30, 1971. Data regarding market The Board has considered the application and deposit rank and market shares are as of June 30,1970. all comments and reports received in the light of 2Office data are as of December 29,1971. Digitized for FRASER 399 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN □ APRIL 1972 will stimulate competition by increasing Keansburg THE ASHLAND STATE BANK OF Bank’s ability to compete in the Asbury Park ASHLAND, ASHLAND, OHIO Market with the four larger banks and with the Order Approving Application for two smaller local banks that have recently become M erger of Banks affiliated with two First Banking District holding The Ashland State Bank of Ashland, Ashland, companies, each of which holds approximately Ohio, a nonoperating proposed member State $1 billion in deposits. At the present time Keans­ bank of the Federal Reserve System, has applied burg Bank holds less than half the deposits of the for the Board’s approval pursuant to the Bank fourth largest bank in the Asbury Park Market. Merger Act (12 U.S.C. 1828(c)) of the merger of The financial and managerial resources of Ap­ that bank with The Ashland Bank & Savings Com­ plicant are satisfactory; the same is true of Keans­ pany, Ashland, Ohio (“Bank”), under the charter burg Bank with the exception of needed improve­ of the former and the name of the latter. As an ment in its capital position which would be re­ incident to the merger, the present branch of The solved by consummation of this proposal. There­ Ashland Bank & Savings Company will continue fore, the prospects for the resulting bank would as a branch of the resulting bank. The bank into be favorable, and banking factors lend some sup­ which Bank is to be merged has no significance port for approval of the application. Consumma­ except as a means to facilitate the acquisition of tion of the proposal would improve the present the voting shares of Bank by First Banc Group of banking services available to customers of Keans­ Ohio, Inc., Columbus, Ohio. burg Bank in the rapidly developing Monmouth As required by the Act, notice of the proposed County, particularly in expanded consumer credit, merger, in form approved by the Board, has been trust and fiduciary services and enlarged lending published, and the Board has requested reports on limits for commercial and industrial loans. Con­ competitive factors from the Attorney General, venience and needs considerations, therefore, are the Comptroller of the Currency, and the Federal consistent with approval of the application. It is Deposit Insurance Corporation. The Board has the Board’s judgment that consummation of the considered all material contained in the record in proposal would be in the public interest, and that the light of the factors set forth in the Act. the application should be approved. On the basis of the record, the application is On the basis of the record, the application is approved for the reasons summarized in the approved for the reasons summarized above. Board’s Order of January 25, 1972, approving The transaction shall not be consummated (a) the application of First Banc Group of Ohio, Inc., before the thirtieth calendar day following the date to acquire 100 per cent of the voting shares of the of this Order or (b) later than three months after successor by merger to The Ashland Bank & Sav­ the date of this Order, unless such period is ex­ ings Company, Ashland, Ohio, provided that tended for good cause by the Board, or by the said merger shall not be consummated (a) before Federal Reserve Bank of New York pursuant to the thirtieth calendar day following the date of this delegated authority. Order or (b) later than three months after the date By order of the Board of Governors, March 3, of this Order, unless such period is extended for 1972. good cause by the Board or by the Federal Reserve Bank of Cleveland pursuant to delegated authority. Voting for this action: Vice Chairman Robertson and Gov­ By order of the Board of Governors, March 23, ernors Daane, Brimmer, and Sheehan. Absent and not voting: Chairman Burns and Governors Mitchell and Maisel. 1972. (Signed) Tynan Sm ith, Voting for this action: Chairman Burns and Governors Rob­ [seal] Secretary of the Board. ertson, Daane, Maisel, Brimmer, and Sheehan. Absent and not voting: Governor Mitchell. (Signed) Tynan Smith, [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 401 ORDERS UNDER SECTION 3 OF BANK proposal would foreclose no existing or potential, HOLDING COMPANY ACT competition. The financial and managerial resources and FIRST NATIONAL CITY CORPORATION, future prospects of Applicant, its subsidiary banks NEW YORK, NEW YORK and Bank are satisfactory and consistent with approval. The banking needs of the communities Order Approving Acquisition of Bank involved are being adequately met at present. First National City Corporation, New York, However, Applicant proposes to provide, through New York, a bank holding company within the Bank, an alternative source of specialized banking meaning of the Bank Holding Company Act, needs. Therefore, considerations relating to con­ has applied for the Board’s approval under § 3(a) venience and needs lend some weight toward (3) of the Act (12 U.S.C. 1842(a)(3)) to acquire approval. It is the Board’s judgment that the pro­ 100 per cent of the voting shares (less directors’ posed acquisition would be in the public interest qualifying shares) of the successor by merger to and that the application should be approved. The Silver Creek National Bank, Silver Creek, On the basis of the record, the application is New York (“Bank”). approved for the reasons summarized above. The The bank into which Bank is to be merged has transaction shall not be consummated (a) before no significance except as a means of acquiring the the thirtieth calendar day following the date of voting shares of Bank. Accordingly, the proposed this Order or (b) later than three months after acquisition of the shares of the successor organiza­ the date of this Order, unless such period is ex­ tion is treated herein as the proposed acquisition tended for good cause by the Board, or by the of the shares of Bank. Federal Reserve Bank of New York pursuant to Notice of receipt of the application has been delegated authority. given in accordance with § 3(b) of the Act, and the By order of the Board of Governors, March 3, time for filing comments and views has expired. 1972. The Board has considered the application and all comments received in the light of the factors Voting for this action: Vice Chairman Robertson and Gov­ ernors Daane, Brimmer, and Sheehan. Absent and not voting: set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) Chairman Burns and Governors Mitchell and Maisel. and finds that: Applicant controls two banks with total deposits (Signed) Tynan Sm ith, of 13.4 billion, representing 14.1 per cent of the [seal] Secretary of the Board. total deposits in commercial banks in New York, and is the State’s second largest banking organiza­ FIRST AMERICAN NATIONAL tion. (Unless otherwise noted, banking data are CORPORATION, NASHVILLE, TENNESSEE as of June 30, 1971, adjusted to reflect holding company formations and acquisitions„ through Order Approving Acquisition of Banks December 31, 1971.) Consummation of the pro­ First American National Corporation, Nash­ posal would not change Applicant’s present ville, Tennessee, has filed separate applications ranking nor significantly increase its share of for the Board’s approval under § 3(a)(3) of the State deposits. Bank Holding Company Act (12 U.S.C. 1842(a) Bank (deposits of $11.2 million) is the smallest (3)) to acquire 80 per cent or more of the voting of five banks in the Dunkirk-Fredonia banking shares of (1) Farmers Exchange Bank, Union City, market, controlling 7.3 per cent1 of the deposits Tennessee (“Farmers Bank”), and (2) Unionin that market. The nearest office of Applicant’s Peoples Bank, Clinton, Tennessee (“Peoples subsidiary bank is 420 miles from Bank and there Bank”). is no significant existing competition between Notice of receipt of the applications has been this or any other of Applicant’s subsidiaries. given in accordance with § 3(b) of the Act, and the Bank is the only bank available for acquisition in time for filing comments and views has expired. its market; Applicant’s only alternative for entering The Board has considered the applications and all Bank’s market would be through establishing a comments received in light of the factors set forth de novo bank. The economic characteristics of in § 3(c) of the Act (12 U.S.C. 1842(c)). the Dunkirk-Fredonia banking market make de On the basis of the record, the applications are novo entry very unlikely. Consummation of the approved for the reasons set forth in the Board’s ‘Banking data related to market share are as of June 30, 1970. Statement of this date. The transactions shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN □ APRIL 1972 not be consummated (a) before the thirtieth market controlling 17.2 per cent of commercial calendar day following the date of this Order or bank deposits in that market. Applicant’s only (b) later than three months after the date of this banking subsidiary is located in Nashville, approx­ Order, unless such period is extended for good imately 160 miles west of Peoples Bank and 155 cause by the Board, or by the Federal Reserve miles southeast of Farmers Bank. No competition Bank of Atlanta pursuant to delegated authority. exists between Peoples Bank and Farmers Bank By order of the Board of Governors, March 3, and between either of these banks and Applicant’s 1972. present banking subsidiary. Thus, consummation of the proposed acquisitions would have no ad­ Voting for this action: Vice Chairman Robertson and Gov­ verse effects on existing competition. Further­ ernors Daane, Brimmer, and Sheehan. Absent and not voting: Chairman Burns and Governors Mitchell and Maisel. more, in view of the distances separating these (Signed) Tynan Sm ith, banks, the presence of numerous intervening [seal] Secretary of the Board. banks, and the State’s restrictive branching law, it appears unlikely that any competition would develop in the future. Statement The present financial and managerial resources and prospects of Applicant, its subsidiary bank and First American National Corporation, Nash­ ville, Tennessee, a bank holding company within both Peoples and Farmers banks are regarded as the meaning of the Bank Holding Company Act, satisfactory and consistent with approval. Al­ has applied for the Board’s approval under § 3(a) though there is no evidence that significant banking needs of the communities involved are going un­ (3) of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent or more of the voting shares of (1) served, consummation of the proposed acquisi­ Farmers Exchange Bank, Union City, Tennessee tions will enable both peoples and Farmers banks (“Farmers Bank”) and, (2) Union-Peoples Bank, to draw upon the added financial, managerial and Clinton, Tennessee (“Peoples Bank”). technical resources of Applicant in order to expand Notice of receipt of the applications has been existing services and initiate new services to meet given in accordance with § 3(b) of the Act, and the the future needs of their respective communities. time for filing comments and views has expired. Convenience and needs considerations are therefore The Board has considered the applications and consistent with approval. It is the Board’s judg­ ment that the proposed transactions would be in all comments received in the light of the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) the public interest and that the applications should and finds that: be approved. Applicant, a registered one bank holding com­ pany by virtue of its ownership of First American AMERICAN BANCORPORATION, National Bank of Nashville, Nashville, Tennessee COLUMBUS, OHIO ($631.2 million in deposits), representing 8.1 per cent of total commercial bank deposits in the State, Order Approving Acquisition of Bank is the third largest banking organization in Ten­ American Bancorporation, Columbus, Ohio, a nessee. (All banking data are as of June 30, 1971, bank holding company within the meaning of and reflect holding company formations and the Bank Holding Company Act, has applied for acquisitions approved through January 31, 1972.) the Board’s approval under § 3(a)(3) of the Act Acquisition of Peoples Bank (deposits of $28.8 (12 U.S.C. 1842(a)(3)) to acquire up to 100 per million) and Farmers Bank (deposits of $13.6 cent (less directors’ qualifying shares) of the million) would increase Applicant’s share of voting shares of The Dime Bank, Marietta, Ohio deposits in the State by approximately .6 percent­ (“Bank”), the successor by acquisition of assets age points and its present ranking would remain and assumption of liabilities to The Dime Savings unchanged. Consummation of the proposed trans­ Society of Marietta, Marietta, Ohio. actions would have no significant effect upon Notice of receipt of the application has been concentration of banking resources in the State. given in accordance with § 3(b) of the Act, and the Peoples Bank is the ninth largest of twelve time for filing comments and views has expired. banks in the Knoxville banking market con­ The Board has considered the application and all trolling 3.8 per cent of commercial bank deposits comments received in the light of the factors set in that market. Farmers Bank is the second forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and largest of ten banks in the Union City banking finds that: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 403 Applicant, the smallest multi-bank holding com­ By order of the Board of Governors, March 3, pany in Ohio, controls three banks with aggregate 1972. deposits of $ 11.4 million, representing .05 per cent Voting for this action: Vice Chairman Robertson and Gov­ of Ohio’s commercial bank deposits. Applicant’s ernors Daane, Brimmer, and Sheehan. Absent and not voting: acquisition of Bank, with deposits of $4.8 million, Chairman Burns and Governors Mitchell and Maisel. representing .02 per cent of total State deposits, would not change its present rank or increase (Signed) Tynan Sm ith, significantly the concentration of banking re­ [seal] Secretary of the Board. sources in any area. (All banking data are as of June 30, 1971, and reflect formations and acquisitions approved through January 31, 1972.) THE BANK OF NEW YORK COMPANY, INC., The nearest subsidiary of Applicant and Bank NEW YORK, NEW YORK are 68 miles apart and two counties separate them. There is no present competition between any of Order Approving Acquisition of Bank Applicant’s subsidiaries and Bank, and it appears The Bank of New York Company, Inc., New that future competition is not likely to develop York, New York, a bank holding company within between them due to the distances involved, the the meaning of the Bank Holding Company Act, location of numerous banking offices of other has applied for the Board’s approval under § banks in the intervening area, and Ohio’s restric­ 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to tive branching laws. Bank would rank as the acquire 100 per cent of the voting shares of the smallest of the four commercial banks head­ successor to Valley National Bank of Long quartered in Marietta and rank fifteenth among the Island, Valley Stream, New York (“Bank”). 17 banks operating in its market area. One result Notice of receipt of the application has been of the proposed transaction will be to introduce given in accordance with § 3(b) of the Act, and the an additional commercial bank to that area which time for filing comments and views has expired. could serve to stimulate competition in Marietta The Board has considered the application and and its surroundings. The proposed transaction all comments received in the light of the factors should have no adverse effect on competing banks. set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) The financial and managerial resources of Appli­ and finds that: cant are generally satisfactory and prospects for Applicant, the seventh largest bank holding com­ the group appear favorable. Prospects for Bank pany and the tenth largest banking organization in also appear favorable since Applicant proposes New York, has seven subsidiary banks with total to supply needed capital and management to it. deposits of $2.5 billion, representing approxi­ Banking factors, therefore, lend weight toward mately 2.7 per cent of the total commercial bank approval of the application. Although the major deposits in the State. (Unless otherwise noted, banking needs of the residents of the Mariettaall banking data are as of June 30, 1971, adjusted Parkersburg area are being met at present, the es­ to reflect holding company formations approved tablishment of Bank will enable Applicant to offer by the Board through October 29, 1971.) Acquisi­ a wider range of services to banking customers of tion of Bank ($158.7 million in deposits) would its predecessor. Considerations relating to the increase Applicant’s share of deposits in the State convenience and needs of the area, therefore, lend by less than 0.1 per cent. weight to approval of the application. It is the Bank is the third largest of eight banks head- Board’s judgment that consummation of the pro­ quarted in Nassau County, which is part of the posed transaction would be in the public interest Metropolitan New York banking market, and and that the application should be approved. operates ten offices in that area. Bank also On the basis of the record, the application is operates twelve offices in Suffolk County. Bank approved for the reasons summarized above. The holds $84 million in deposits in the New York bank­ transaction shall not be consummated (a) before ing market where it is the 34th largest of 74 banking the thirtieth calendar day following the date organizations, controlling 0.1 per cent of market of this Order or (b) later than three months after deposits.1 the date of this Order, unless such period is Applicant’s nearest banking subsidiary is 16 extended for good cause by the Board, or by the miles from the closest branch of Bank. Neither Federal Reserve Bank of Cleveland pursuant to delegated authority. Market data are as of June 30,1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN □ APRIL 1972 Applicant’s subsidiary banks, nor Bank derive a By order of the Board of Governors, March 7, significant amount of business from each other’s 1972. service area. Accordingly, consummation of this Voting for this action: Governors Mitchell, Daane, Maisel, proposal would not adversely affect existing com­ and Sheehan. Voting against this action: Governors Robertson petition. and Brimmer. Absent and not voting: Chairman Burns. Some potential competition between Applicant (Signed)Tynan Smith, and Bank might be foreclosed upon consummation [seal] Secretary of the Board. of the proposal, since Applicant could enter Bank’s service area by expanding de novo or Dissenting Statem ent through acquisition of a smaller bank. De novo entry seems undesirable since State law limits a of de novo expansion bank to two branches per Governors Robertson and Brimmer year (beginning one year from the date of charter) We would deny this application because its anti­ until 1976 when State-wide branching becomes competitive effects are not affirmatively out­ effective. It also appears unlikely that acquisition weighed by other public interest considerations. of a smaller bank would be attractive to Applicant. Applicant appears to be a likely entrant into the Three of the State’s largest banking organizations Nassau-Suffolk County area, and its entry could be are already represented in Bank’s service areas accomplished in a more competitive manner. Ap­ and Applicant has not attained a significant com­ plicant could enter de novo or through acquisition petitive position with respect to these larger bank­ of one of the fourteen banks in the area smaller than ing organizations in other banking districts in the Valley National Bank. Approval of this applica­ State. Applicant seeks to acquire Bank in order tion would result in New York City-based holding to rapidly become an effective competitor of the companies controlling ten of the fourteen area larger banking organizations in Bank’s service banks with deposits over $150 million, and only areas. Although consummation of this proposal three independent banks of this deposit size would may have a slightly adverse effect on potential remain in the area. As we have indicated pre­ competition, it will be offset by the increased viously, acquisition of a major bank in this area by competition among the large banking organiza­ a major New York City-based holding company tions present in Bank’s service areas. eliminates such bank as a vehicle for entry by a The financial and managerial resources of newer and smaller New York holding company Applicant, its subsidiary banks and Bank are satis­ (e.g., In the Matter of the Application of Chemical factory and consistent with approval. While it New York Corporation to acquire Eastern Na­ appears that the communities involved in this tional Bank of Long Island). We also pointed out proposal presently have reasonable access to in that case that de novo entry to the area was alternative sources of banking services, Applicant’s feasible for large New York holding companies entry will afford an additional competing source as the two largest New York City-based holding of such services. Through Bank, Applicant pro­ companies had recently employed that method. poses to offer lower rates on certain consumer Therefore, approval of this application will have loans, data processing facilities for customers and serious adverse effects on potential competition. expanded trust services. Considerations related to The Bank Holding Company Act requires the convenience and needs, therefore, lend weight Board to deny holding company acquisitions that toward approval. It is the Board’s judgment that are anticompetitive in nature unless there are the proposed transaction would be in the public positive benefits to the public that outweigh the interest and that the application should be adverse factor. approved. Applicant proposes to make additional services On the basis of the record, the application is available through Bank. However, the record in­ approved for the reasons summarized above. The dicates that the banking needs of the communities transaction shall not be consummated (a) before involved are already being adequately served by the thirtieth calendar day following the date of the banking institutions in the area. Moreover, the this Order or (b) later than three months after the proposed benefits could be provided in a more date of this Order, unless such period is extended competitive fashion. Therefore, the benefits ad­ for good cause by the Board, or by the Federal vanced by Applicant do not overcome the anti­ Reserve Bank of New York pursuant to delegated competitive effects of the acquisition. authority. We would deny the application. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 405 COUNTY NATIONAL BANCORPORATION, Governors, pursuant to § 3(a)(3) of the Bank CLAYTON, MISSOURI Holding Company Act (12 U.S.C. 1842(a)(3)), for prior approval of the acquisition of at least Order Approving Acquisition of Bank 90 per cent of the voting shares of Big Bend Bank, County National Bancorporation, Clayton, Mis­ Webster Groves, Missouri (“Bank”). souri, has applied for the Board’s approval under Statutory considerations. Applicant’s one sub­ § 3(a)(3) of the Bank Holding Company Act (12 sidiary bank, St. Louis County National Bank U.S.C. 1842(a)(3)) to acquire not less than 90 per ($229.6 million deposits), which is located in cent of the voting shares of Big Bend Bank, Clayton, is the largest bank in St. Louis County Webster Groves, Missouri (“Bank”). and the fourth largest bank in the St. Louis bank­ Notice of receipt of the application has been ing market with about 4 per cent of market de­ given in accordance with § 3(b) of the Act, and posits. Upon consummation of the proposal the time for filing comments and views has herein, Applicant’s share of commercial bank expired. The Board has considered the application deposits in the State would be increased insignifi­ and all comments received in light of the factors cantly by .1 per cent to 2.1 per cent, while its set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). ranking as the State’s eight largest banking or­ On the basis of the record, the application is ganization would remain the same. (All banking approved for the reasons set forth in the Board’s data are as of December 31, 1970.) Statement of this date, provided that the trans­ Bank ($20.6 million deposits) is located in action shall not be consummated (a) before the Webster Groves in St. Louis County, approxi­ thirtieth calendar day following the date of this mately 5.5 miles south of Applicant’s lead bank, Order or (b) later than three months after the date and is the 52nd largest of the banking organiza­ of this Order, unless such period is extended for tions operating in the St. Louis banking market. good cause by the Board, or by the Federal Re­ Within Bank’s primary service area (approxi­ serve Bank of St. Louis pursuant to delegated mated by the communities of Brentwood, Crestauthority, and provided further that upon con­ wood, Kirkwood, Maplewood, Affton, and summation of the proposed transaction, Applicant Webster Groves), Bank ranks as the smallest shall not retain or acquire any nonbank shares or of seven banks in the area, three of which are engage in any nonbanking activities to a greater subsidiaries of multibank holding companies extent or for a longer period than would apply in the significantly larger than Applicant. Bank holds case of a bank holding company which became such about 10 per cent of the commercial bank de­ on the date of such consummation, except to the posits in its service area. extent otherwise permitted in any regulation of the In connection with its review of the proposal, Board hereafter adopted specifically relating to the the Board has considered comments filed by the effect of the acquisition of an additional bank on Department of Justice indicating that the overall the status of nonbank shares and activities of a effect of the proposal on competition would be one-bank holding company formed prior to 1971, significantly adverse. The Department indicates or unless the Board fails to adopt any such regula­ that significant existing competition between Ap­ tion before the expiration of two years after the plicant’s present subsidiary and Bank would be consummation of the proposed acquisition. eliminated by the proposal; that the acquisition By order of the Board of Governors, March 9, would further raise the concentration of deposits 1972. in an already concentrated area; and that the acquisition would have an adverse effect on po­ Voting for this action: Chairman Burns and Governors Mitchell, Daane, and Maisel. Voting against this action: Gov­ tential competition by removing Applicant as a ernors Robertson, Brimmer, and Sheehan. de novo entrant into the Webster Groves area and (Signed) Tynan Sm ith, by eliminating Bank as a vehicle for entry by [seal] Secretary ofthe Board. other holding companies not already operating in the area. The Board does not consider the elimination of the competition existing between Applicant’s Statement present subsidiary bank and Bank to be such as Nature of transaction. County National Ban­ to warrent denial of the proposal. While there is corporation, Clayton, Missouri, a registered bank some competitive overlap between the two banks, holding company, has applied to the Board of the banks are not, in fact, significant competitors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN □ APRIL 1972 Bank is primarily retail oriented, serving princi­ ing factors lend weight toward approval of the pally as a savings institution with emphasis on application. consumer and installment type loans. St. Louis The present banking needs of the Webster County National is primarily commercial oriented, Groves area are being met by the existing in­ with emphasis on commercial loans and business stitutions. However, the area is experiencing accounts. Although there is some existing com­ growth, and Bank’s ability to offer a broader petition between the banks arising from the range of service as a subsidiary of Applicant proximity of their locations, because of the na­ should benefit the convenience and needs of the ture of the institutions and type of customers residents of Bank’s service area. Applicant in­ each serves, the Board does not consider the tends to assist Banking in developing com­ anticompetitive effects to be substantial. Further­ mercial and industrial business, processing mort­ more, when viewed in the context of the St. gage loans, and providing data processing serv­ Louis banking market, the quantum of existing ices. As a subsidiary of Applicant, Bank should competition which would be eliminated by the be able to compete more effectively with the proposed transaction is not significant. other larger banks which are already offering Bank presently competes with banks which these services either independently or as a sub­ include subsidiaries of holding companies which sidiary of a holding company. These considera­ are the third, fourth, and fifth largest banking tions lend strong weight toward approval of the organizations in the State, holding, respectively, application. approximately 8, 4.5, and 4 per cent of the com­ Summary and conclusion. On the basis of all mercial bank deposits in the State. Even after relevant facts contained in the record and in light this acquisition, Applicant would control only of the factors set forth in § 3(c) of the Act, it is slightly more than 2 per cent of the deposits in the Board’s judgment that the proposed trans­ the State. In the St. Louis banking market, Ap­ action is in the public interest and that the ap­ plicant’s present subsidiary holds 4.0 per cent of plication should be approved. the deposits, and Bank holds .4 per cent of such deposits. Thus consummation of the proposed D issenting Statement of Governors acquisition would not eliminate a significant de­ Robertson, Brimmer, and Sheehan gree of competition in the relevant market, and We disagree with the conclusion of the majority viewed in the context of the impact on competi­ that the proposal would produce benefits to the tion in the market, the elimination of any future communities to be served that outweigh the ad­ competition between Applicant’s subsidiary and verse effects the proposal would have on com­ Bank is not regarded as substantial. On the con­ petition. We agree with the conclusion expressed trary, consummation of the proposed transaction by the Department of Justice, that consummation should enable Bank to compete more effectively of the proposal would have a “significantly ad­ in the relevant market and result in a salutary effect verse” effect on competition, and therefore, on competition. we would deny the application. On the basis of the foregoing, the Board con­ Applicant’s present subsidiary is the fourth cludes that the competitive effects of the pro­ largest banking organization and the most signifi­ posal are not inconsistent with approval of the cant competitive force in St. Louis County, one application, and for the reasons discussed here­ of the fastest growing areas in Missouri. Bank inafter, any elimination of existing competition is located only 5.5 miles to the south of Applicant’s that may result is more than outweighed by the subsidiary. This geographical proximity, coupled benefits that would result from the proposal. with the interdependence of the communities in The financial condition and management of the the area, leads to the conclusion that the two Applicant and its subsidiary are regarded as satis­ banks are competitors. This conclusion is sup­ factory and consistent with approval. Bank has ported by the facts of record which reveal that experienced some losses in its installment loan each bank draws substantial deposit and loan operations and does have a management succes­ business from the immediate area of the other. sion problem. Applicant plans to supply addi­ On the basis of dollar amounts, Applicant de­ tional capital to Bank and to provide Bank with rives almost as much in deposits (83.9 per cent) management personnel. As a subsidiary of Ap­ and about twice as much in loans (200.5 per cent) plicant, therefore, Bank’s prospects appear to be as Bank itself derives from its own service area. favorable, and considerations relating to bank­ This, in our view, is substantial competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 407 Furthermore, the banks offer a similar range of bank in an area in which Applicant is not already services and are alternative sources of banking dominant. There is no doubt that Bank’s service facilities for banking customers in the area. This area would support another new bank; it is also competition would be foreclosed by consum­ clear that Applicant possesses the financial re­ mation of the proposed transaction. sources for meaningful de novo entry. From a Because of its size and its location in the com­ competitive standpoint, either of these alternatives mercial, financial, and political center of St. is clearly preferable to the proposal herein. Louis County, Applicant’s present subsidiary Furthermore, de novo entry would have the added is one of the area’s dominant banking organiza­ beneficial effect of providing an additional source tions. As the Department of Justice noted, Ap­ of banking services rather than removing Bank plicant already controls approximately 32 per as an alternative source for such services for the cent of the deposits in east central St. Louis residents of Bank’s service area. County, and the present proposal would increase On the basis of the record, we would conclude that concentraion to about 35 per cent of such that Applicant’s proposal would have a significantly deposits. In concluding that the competitive ef­ adverse effect on existing and potential com­ fects of the proposed transaction should be as­ petition. In light of this situation, the Bank Hold­ sessed in the east central St. Louis County area, ing Company Act specifically requires that the rather than in the entire St. Louis metropolitan Board deny the application unless it finds benefits area, as has the majority, we have been guided by in terms of convenience and needs that out­ recent decisions of the Supreme Court. In U.S. v. weigh the significantly adverse effects on com­ Philadelphia Nat. Bank, 374 U.S. 321, 357, in petition. The majority points to no new services arriving at a determination of the proper relevant which Applicant is not already offering in Bank’s market in that case, the court stated: service area. The alleged benefits that the ma­ jority indicates would flow from the proposal The proper question to be asked in this case is not where the parties to the merger do business or even where they compete, are not such as would outweigh the significantly but where, within the area of competitive overlap, the effect adverse effects on competition. Accordingly, the of the merger on competition will be direct and immediate. . . . statutory requirement of a clear outweighing of This depends upon “the geographic structure of suppliercustomer relations.” . . . In banking, as in most service anticompetitive effects is not fulfilled. industries, convenience of location is essential to effective We would, therefore, deny the application. competition. Individuals and corporations typically confer the bulk of their patronage on banks in their local community; they find it impractical to conduct their banking business at a FIRST AT ORLANDO CORPORATION, distance. . . . ORLANDO, FLA. More recently in U.S. v. Phillipsburg National Bank, 399 U.S. 350, 362, the court stated, in Order Approving Acquisition of Banks discussing the relevant market question, that: First at Orlando Corporation, Orlando, Florida, Commercial realities in the banking industry make clear that banks generally have a very localized business. We observed a bank holding company within the meaning of the in Philadelphia Bank, supra, at 358, that “[i]n banking, as Bank Holding Company Act, has filed separate in most service industries, convenience of location is essential applications for the Board’s approval, under § 3(a) to effective competition. Individuals and corporations typically confer the bulk of their patronage on banks in their local com­ (3) of the Act (12 U.S.C. 1842(a)(3)), to acquire munities; they find it impractical to conduct their banking busi­ 90 per cent or more of the voting shares of each ness at a distance. . . . The factor of inconvenience localizes of the following banks in Florida: Riverside Bank, banking competition as effectively as high transportation costs in other industries.” In locating “the market area in which Miami; Midtown Bank of Miami, Miami (“Mid­ the seller operates,” it is important to consider the places from town Bank”); and Bank of Coral Gables, Incor­ which it draws its business, the location of its offices, and where it seeks business. porated, Coral Gables (“Coral Gables Bank”). The already high level of concentration of bank­ Notices of receipt of the applications have been ing resources in east St. Louis County would be given in accordance with § 3(b) of the Act, and the further enhanced by the proposed acquisition. This times for filing comments and views have expired. is a matter of significant concern to us. The Board has considered the applications and all Of equal concern is Applicant’s effort to expand comments received in the light of the factors set its influence in a portion of St. Louis County in forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and which it already competes. In light of the com­ finds that: ments noted above, we believe it would be Applicant controls 22 banks with aggregate de­ preferable for Applicant to expand in east St. posits of approximately $693 million, repre­ Louis County either de novo or by acquiring a senting 4.7 per cent of the total commercial bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN □ APRIL 1972 deposits in the State and is the fifth largest banking miles north of Dade County. It appears that there organization and bank holding company in Flor­ is no meaningful present competition by any of the ida. (All banking data are as of June 30, 1971, and banks in Applicant’s group with any of the three represent all holding company formations and proposed subsidiary banks; and that, on the facts acquisitions approved through February 29, 1972.) of record, particularly in view of the distances The acquisition of Riverside Bank ($57.4 million separating the banks, no significant amount of po­ in deposits), Midtown Bank ($16.9 million in tential competition between any subsidiary of Ap­ deposits), and Coral Gables Bank ($9.5 million plicant and any one of the proposed subsidiaries in deposits) would increase Applicant’s share of would be eliminated by consummation of the pro­ commercial bank deposits in Florida by 0.6 per­ posal. On the basis of the record before it, the centage points, and Applicant would become the Board concludes that consummation of the pro­ fourth largest banking organization in the State. posed acquisitions would not have a significantly Riverside Bank, Midtown Bank, and Coral adverse effect on competition in any relevant area. Gables Bank serve the Miami banking market Applicant, its subsidiary banks, and the three which is defined by the boundaries of Dade County. banks Applicant proposes to acquire are considered Consummation of the subject proposal would rep­ to be in satisfactory financial condition, their resent Applicant’s first entry into the Miami bank­ managements are deemed to be capable, and their ing market which has 70 competing banks, with prospects appear favorable. Banking factors are aggregate deposits of $3.4 billion, representing 41 regarded as consistent with approval of the ap­ banking organizations. The largest bank holding plications. company in the State holds over 27 per cent of the It appears that the banking needs of the relevant total deposits in the Miami banking market, where­ areas are being adequately served by present bank­ as the three subject banks collectively hold 2.5 ing facilities operating in the Miami banking mar­ per cent of total commercial bank deposits in that ket. However, Applicant states that it plans to market and represent the market’s tenth largest provide new services for each of the three subject banking organization. It appears that the affiliation banks which will include trust, international, and of subject banks with Applicant would increase credit card services. The provision of additional their ability to compete in the highly competitive sources for such services should be of benefit to Miami banking market without adversely affecting the community involved. Considerations under any of the competing banks. convenience and needs aspects of the proposal are Riverside Bank’s officers and directors organized consistent with approval and lend some slight Midtown Bank in 1963 and Coral Gables in 1969. weight thereto. It is the Board’s judgment that The percentage of common ownership among the consummation of the proposed acquisitions would three banks is slightly higher at the present time be in the public interest and that the applications than at the times the banks were organized; 77 per should be approved. cent of the shareholders of Riverside Bank own On the basis of the record, each of the three 82 per cent of the stock of Midtown Bank; and 75 subject applications is approved for the reasons per cent of the shareholders of Riverside Bank summarized above. None of said transactions own 70 per cent of the stock of Coral Gables shall be consummated (a) before the thirtieth Bank. The banks are also closely associated calendar day following the date of this Order or (b) through their officers and directors, and their per­ later than three months after the date of this Order, sonnel have been interchanged from time to time. unless such period is extended for good cause by It appears that the close management and share­ the Board, or by the Federal Reserve Bank of holder affiliations have resulted in an absence of Atlanta pursuant to delegated authority. any significant present competition between or By order of the Board of Governors, March 16, among the three proposed subsidiaries in spite of 1972. an overlap of the banks’ service areas. Dis­ Voting for this action: Chairman Burns and Governors Rob­ affiliation of the three banks is considered unlikely, ertson, Mitchell, Daane, and Brimmer. Absent and not voting: Governors Maisel and Sheehan. and it appears that no significant potential com­ petition between or among them would be fore­ (Signed) Tynan Smith, closed by the proposed acquisitions. [seal] Secretary of the Board. Applicant’s subsidiary bank closest to Dade Order Approving Acquisition of Bank County is located 120 miles to the north, and Ap­ First at Orlando Corporation, Orlando, Florida, plicant’s main offices in Orlando are located 230 a bank holding company within the meaning of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 409 Bank Holding Company Act, has applied for the Bank’s prospects appear favorable. Banking fac­ Board’s approval, under § 3(a)(3) of the Act (12 tors are consistent with approval of the application. U.S.C. 1842(a)(3)), to acquire 100 per cent of the The major banking needs of the area appear to be voting shares (less directors’ qualifying shares) of presently satisfied by existing banking facilities. First National Bank of Palm Bay, Palm Bay, However, Bank will provide a convenient alter­ Florida (“Bank”), a proposed new bank. native source of banking to the area. Considera­ Notice of receipt of the application has been tions relating to the convenience and needs of the given in accordance with § 3(b) of the Act, and the community are consistent with approval of the time for filing comments and views has expired. application and lend some weight thereto. It is the The Board has considered the application and all Board’s judgment that consummation of the pro­ comments received in the light of the factors set posed acquisition would be in the public interest forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and and that the application should be approved. finds that: On the basis of the record, the application is Applicant, the fifth largest bank holding com­ approved for the reasons summarized above. The pany in Florida on the basis of deposits, controls transaction shall not be consummated (a) before 23 banks with aggregate deposits of approximately the thirtieth calendar day following the date of this $711 million, representing 4.8 per cent of the Order or (b) later than three months after the date total commercial bank deposits in the State. (Bank­ of this Order; and (c) First National Bank of Palm ing data are as of June 30, 1971, and reflect hold­ Bay, Palm Bay, Florida, shall be opened for ing company formations and acquisitions approved business not later than six months after the date of through February 29, 1972.) Applicant’s acquisi­ this Order. Each of the periods described in (b) and tion of Bank, a proposed new bank, would not in­ (c) may be extended for good cause by the Board, crease the concentration of banking resources nor or by the Federal Reserve Bank of Atlanta pursu­ have any significant adverse effect on any com­ ant to delegated authority. peting bank, in any relevant area. By order of the Board of Governors, March 16, Applicant’s office closest to Bank’s proposed 1972. site in Palm Bay is the Melbourne subsidiary Voting for this action: Chairman Burns and Governors Rob­ located 3.2 miles to the north of the site. Each of ertson, Mitchell, Daane, and Brimmer. Absent and not voting: Applicant’s other subsidiaries is located at least Governors Maisel and Sheehan. 24 miles from Bank and derives little if any busi­ (Signed) Tynan Smith, ness from Bank’s proposed service area. The [seal] Secretary of the Board. relevant market, which is the southern portion of Brevard County, encompasses Melbourne, a por­ tion of West Melbourne, all of the City of Palm MIDLANTIC BANKS INC., Bay, and the communities of Grant, Valkaria and NEWARK, NEW JERSEY Micco, as well as other unincorporated areas of Order Approving Acquisition of Bank South Brevard County. Applicant’s Melbourne subsidiary is the second largest bank in this Midlantic Banks Inc., Newark, New Jersey, market, and controls approximately 16 per cent of has applied for the Board’s approval under § 3(a) the total commercial bank deposits in that market. (3) of the Bank Holding Company Act (12 U.S.C. The market’s largest bank holds approximately 1842(a)(3)) to acquire 100 per cent (less directors’ 31 per cent of total deposits in the area and is located qualifying shares) of the voting shares of Mid­ between Bank and Applicant’s Melbourne sub­ lantic National Bank, Parsippany-Troy Hills, New sidiary. No present competition exists between Jersey (“Bank”), a proposed new bank. Bank, a proposed new bank, and any of Applicant’s Notice of receipt of the application has been subsidiaries; and it appears that Applicant’s given in accordance with § 3(b) of the Act, and the acquisition of Bank would not substantially lessen time for filing comments and views has expired. future competition in the market area nor raise any The Board has considered the application and all significant barrier to entry by others into the 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 its subsidiary banks are regarded as finds that: satisfactory and prospects for the group appear Applicant controls five banks with aggregate favorable. Bank has no financial or operating deposits of about $783 million, representing 5 per history. However, as a subsidiary of Applicant, cent of the commercial bank deposits in New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN □ APRIL 1972 Jersey and is the third largest banking organiza­ Voting for this action: Chairman Burns and Governors Rob­ tion in the State.1 Since bank is a proposed new ertson, Mitchell, Daane, and Brimmer. Absent and not voting: Governors Maisel and Sheehan. bank, no existing competition would be eliminated, nor would concentration be increased in any rele­ (Signed) Tynan Smith, vant area. Applicant presently operates two banks [seal] Secretary of the Board. in the Greater Newark Market, which includes Parsippany-Troy Hills, which together control FLORIDA COMMERCIAL BANKS, INC., about 16.2 per cent of area deposits.2 However, MIAMI, FLORIDA neither of these banks draws a significant amount of deposits or loans from the proposed service Order Approving Acquisition of Bank area of Bank. Moreover, there are two larger or­ Florida Commercial Banks, Inc., Miami, ganizations in the Greater Newark Market than Florida, a bank holding company within the mean­ Applicant so that Applicant does not dominate the ing of the Bank Holding Company Act, has ap­ area. Additionally, approval of this application plied for the Board’s approval, under § 3(a)(3) of should have procompetitive consequences since the Act (12 U.S.C. 1842(a)(3)), to acquire 80 per Parsippany-Troy Hills is presently closed to cent or more of the voting shares of Florida Com­ branching because of the home office provisions mercial Bank of Hollywood, Hollywood, Florida of New Jersey law. The establishment of a de (“Bank”), a proposed new bank. novo institution such as Bank is an effective way Notice of receipt of the application has been of providing competition in such closed areas. For given in accordance with § 3(b) of the Act, and the these reasons and other facts of record, the Board time for filing comments and views has expired. concludes that consummation of the transaction The Board has considered the application and all will not adversely affect competition in any rele­ comments received in the light of the factors set vant area. forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and The financial and managerial resources and finds that: future prospects of Applicant, its subsidiary banks, Applicant controls five banks with aggregate and Bank are generally satisfactory and consis­ deposits of approximately $188 million, repre­ tent with approval of the application. Considera­ senting 1.3 per cent of the commercial bank de­ tions relating to the convenience of the community posits in Florida, and is the sixteenth largest bank­ to be served lend some weight to approval of the ing organization and bank holding company in application since the service area of Bank appears the State. (All banking data are as of June 30, to be relatively underbanked and would benefit 1971, and reflect holding company formations and from an additional source of services. The Board acquisitions through February 29, 1972.) Acquisi­ finds that the proposed application is in the public tion of Bank will not increase the percentage of interest and should be approved. deposits held by Applicant since Bank is a proposed On the basis of the record, the application is new bank. The proposal would not eliminate approved for the reasons summarized above. The existing competition nor significantly increase the transaction shall not be consummated (a) before concentration of banking resources in any relevant the thirtieth calendar day following the date of this area. Order or (b) later than three months after the date The proposed site of Bank is in the western sec­ of this Order; and (c) Midlantic National Bank, tion of the City of Hollywood. The relevant bank­ Parsippany-Troy Hills, New Jersey, shall be ing market is the Hollywood metropolitan area. opened for business not later than six months Bank would compete in this market with 12 banks, after the date of this Order. Each of the periods six of which are subsidiaries of three multi-bank described in (b) and (c) may be extended for good holding companies, controlling approximately 47 cause by the Board, or by the Federal Reserve Bank per cent of the total commercial bank deposits of New York pursuant to delegated authority. in that market. Each of Applicant’s five subsidiary By order of the Board of Governors, March 16, banks is located outside the Hollywood metro­ 1972. politan area, and the subsidiary nearest to Bank’s proposed site is located in Miami, approximately banking data are as of June 30, 1971, and reflect holding company 14 miles south of Bank’s site. On the facts of record formations and acquisitions approved by the Board through February 29, and particularly in view of the density of popula­ 1972. tion and the number of banking offices located in 2The Greater Newark Market consists of all of Essex County and parts of Union, Hudson, and Morris Counties. the intervening areas, it appears that consumma­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 411 tion of the proposal would not foreclose any sig­ (1) of the Bank Holding Company Act (12 U.S.XT. nificant amount of future competition between 1842(a)(1)) of formation of a bank holding com­ Bank and any of Applicant’s present subsidiaries. pany through acquisition of 51 per cent of the vot­ On the basis of the record before it, the Board ing shares of Bank of Belleville, Belleville, concludes that consummation of the proposed Illinois (“Bank”). acquisition would not have a significant adverse Notice of receipt of the application has been effect on competition in any relevant area, nor given in accordance with § 3(b) of the Act, and the have a significant adverse effect on any of the time for filing comments and views has expired. area’s competing banks. The Board has considered the application and all The financial and managerial resources of Ap­ comments received in the light of the factors set plicant and its subsidiary banks are deemed sat­ forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and isfactory, and projected growth and earnings for finds that: the group appear favorable. Bank, as a proposed Bank ($20.7 million in deposits) is the fourth new bank, has no financial or operating history; largest of six banks competing in the Belleville however, its prospects under Applicant’s man­ market area and holds 8.1 per cent of the deposits agement appear favorable. Banking factors as they in commercial banks in the area.1 Applicant is a concern Applicant’s group and the proposed new newly organized corporation formed by members bank are consistent with approval of the applica­ of a family for the purpose of effecting a reorgan­ tion. It appears that the major banking needs of the ization of their individual ownership of Bank’s area are being adequately served at the present shares. Members of this family also control the time. However, Bank would provide an additional smallest bank in the area ($7.9 million in de­ source of convenient banking services to the area. posits) and consummation of the proposal would Considerations under convenience and needs tend to perpetuate the family’s control of two banks aspects of the proposal are consistent with approval and 11.2 per cent of area deposits. This would be and lend some weight thereto. It is the Board’s an adverse circumstance were it not for the fact judgment that consummation of the proposed that Bank was acquired in early 1971 at a time acquisition would be in the public interest and that when it was in very serious financial condition, the application should be approved. and under the family’s management it has shown On the basis of the record, the application is a marked improvement, as discussed below. Under approved for the reasons summarized above. The these circumstances, the Board does not believe transaction shall not be consummated (a) before that the anticompetitive effects of the proposal are the thirtieth calendar day following the date of this significant. Order or (b) later than three months after the date As noted above, Bank’s financial condition was of this Order; and (c) Florida Commercial Bank marginal when the family acquired Bank. Since of Hollywood, Hollywood, Florida, shall be that time, Bank’s capital position has been sig­ opened for business not later than six months nificantly improved, loan losses have been mini­ after the date of this Order. Each of the periods mized, and qualified management has been brought described in (b) and (c) may be extended for good into the Bank. Since the present proposal 'will cause by the Board, or by the Federal Reserve Bank continue this support for Bank, considerations re­ of Atlanta pursuant to delegated authority. lating to the financial and managerial resources and By order of the Board of Governors, March 16, prospects of Bank lend weight toward approval 1972. of the application. Consummation of the proposal Voting for this action: Chairman Burns and Governors Rob­ would have no immediate effect on the convenience ertson, Mitchell, Daane, and Brimmer. Absent and not voting: and needs of the community involved; however, Governors Maisel and Sheehan. the original acquisition of the Bank, at a time when (Signed) Tynan Sm ith, it was experiencing financial difficulties, was in­ [seal] Secretary of the Board. strumental in the continuation of Bank as a viable competitive force in the area and, as a subsidiary BELLEVILLE BANCSHARES, INC., of Applicant, Bank should be able to continue to BELLEVILLE, ILLINOIS offer a wide range of banking services. Thus, con­ Order Approving Formation of Bank siderations relating to the convenience and needs Holding Company lend weight toward approval. It is the Board’s Belleville Bancshares, Inc., Belleville, Illinois, has applied for the Board’s approval under § 3(a) *A11 banking data are as of June 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN □ APRIL 1972 judgment that consummation of the proposal would Because Bank had not been chartered at the time of be in the public interest and that the application Palmer Bank Corporation’s application to become a should be approved. bank holding company it was not included within On the basis of the record, the application is that application. Nevertheless, Bank was organized approved for the reasons summarized above. The by principals of Applicant with the intention of transaction shall not be consummated (a) before including it in the holding company. (It should be the thirtieth calendar day following the date of this noted, however, that Applicant does not directly Order or (b) later than three months after the date or indirectly own any shares of Bank.) As such, of this Order, unless such period is extended for this application essentially involves the establish­ good cause by the Board, or by the Federal Re­ ment of a de novo institution by Applicant. In the serve Bank of St. Louis pursuant to delegated light of the above facts, although all of Applicant’s authority. subsidiary banks are located within seven miles By order of the Board of Governors, March 16, of Bank, it does not appear that there is any actual 1972. or potential competition between Applicant and Bank. Neither does it appear that consummation of Voting for this action: Chairman Burns and Governors Rob­ the proposal would confer a position of market ertson, Mitchell, Daane, and Brimmer. Absent and not voting: Governors Maisel and Sheehan. dominance to Applicant to the detriment of com­ peting banks. Competitive considerations are, (Signed) Tynan Smith, [seal] Secretary of the Board. thus, regarded as consistent with approval. The financial and managerial resources and future prospects of Applicant, its subsidiary banks, PALMER BANK CORPORATION, and Bank, appear to be generally satisfactory and SARASOTA, FLORIDA are consistent with approval. However, Bank has been and will continue to be dependent upon Ap­ Order Approving Acquisition of Bank plicant for support. Bank is located in a growing suburban area two miles from the nearest banking Palmer Bank Corporation, Sarasota, Florida, a office and 5.5 miles from Applicant’s lead bank bank holding company, within the meaning of the and closest subsidiary. Bank is providing area Bank Holding Company Act, has applied for the residents with a convenient source of full-service Board’s approval under § 3(a)(3) of the Act (12 banking. Direct affiliation with Applicant assures U.S.C. 1842(a)(3)) to acquire 100 per cent (less Bank of Applicant’s continuing support. Thus, directors’ qualifying shares) of the voting shares of considerations related to financial and managerial Village Plaza Palmer National Bank, Sarasota resources and the needs of the community in­ County, Florida (“Bank”). volved lend some weight toward approval. It is the Notice of receipt of the application has been Board’s judgment that the transaction would be in given in accordance with § 3(b) of the Act, and the the public interest, and that the application should time for filing comments and views has expired. be approved. The Board has considered the application and all On the basis of the record, the application is comments received in the light of the factors set approved for the reasons summarized above. The forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and transaction shall not be consummated (a) before finds that: the thirtieth calendar day following the date of this Applicant has three subsidiary banks, all located Order or (b) later than three months after the date in the Sarasota area, with aggregate deposits of of this Order, unless such period is extended for $113.5 million representing. 1 per cent of total com­ good cause by the Board, or by the Federal Re­ mercial bank deposits within the State. (Banking serve Bank of Atlanta pursuant to delegated author­ data are as of June 30, 1971, and reflect holding ity. company formations and acquisitions approved By order of the Board of Governors, March 16, through January 31, 1972.) Acquisition of Bank 1972. which opened on September 29, 1971, would not significantly increase Applicant’s share of total deposits within the State. Voting for this action: Chairman Burns and Governors Rob­ ertson, Mitchell, Daane, and Brimmer. Absent and not voting: Applicant is the second largest of seven bank­ Governors Maisel and Sheehan. ing organizations in the relevant banking market which is approximated by Sarasota and surround­ (Signed) Tynan Smith, ing areas with 34.6 per cent of market deposits. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 413 COLORADO NATIONAL BANKSHARES, a competitor for Colorado National in this area. INC., DENVER, COLORADO Acquisition of Bank would add only one-half percentage point to Applicant’s share of deposits Order Approving Acquisition of Bank in the Denver banking market. The two larger Colorado National Bankshares, Inc., Denver, organizations’ share of market deposits would Colorado, a bank holding company within the be respectively 7.5 and 10 percentage points larger. meaning of the Bank Holding Company Act, has Additionally there would be 45 banking organiza­ applied for the Board’s approval under § 3(a)(3) tions remaining in the market, of which 26 are of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 larger than Bank. Consummation of the proposal per cent or more of the voting shares of Boulevard would have only a slightly adverse effect on present National Bank, Denver, Colorado (“Bank”). and potential competition. Notice of receipt of the application has been Considerations relating to the financial condition, given in accordance with § 3(b) of the Act, and managerial resources and prospects of Applicant the time for filing comments and views has expired. and its subsidiary banks are satisfactory and con­ The Board has considered the application and all sistent with approval. Bank’s growth since its comments received in the light of the factors set establishment in 1963 has continually placed it forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and in the position of seeking capital funds to support finds that: this growth. Affiliation with Applicant would Applicant has seven subsidiary banks control­ likely provide a source of capital to support con­ ling aggregate deposits of $335 million and is the tinued growth of Bank. This consideration lends third largest banking organization in Colorado some weight toward approval of the application. controlling 7.2 per cent of deposits in commercial It appears that the area served by Bank has reason­ banks in the State.1 Acquisition of Bank ($13 able access to most banking services. However, million in deposits) by Applicant would not affiliation with Applicant will allow Bank to make increase the percentage share of deposits held larger loans through a more ready access to partici­ by Applicant to a significant extent and would pations and will provide a more convenient source not alter its Statewide ranking. for more specialized banking needs. These con­ Bank is located about four miles from down­ siderations lend weight toward approval of the town Denver near the largest medical complex application. It is the Board’s judgment that con­ in the Rocky Mountain region and the largest summation of the proposed acquisition would be suburban office building and retail shopping com­ in the public interest, and that the application plex in the Denver area. Bank, controlling .5 per should be approved. cent of market deposits, does primarily a local, On the basis of the record, the application is consumer oriented business with the majority of approved for the reasons summarized above. The its accounts being individual accounts of employ­ transaction shall not be consummated (a) before ees of the medical complex. Applicant presently the thirtieth calendar day following the date of has five banking subsidiaries in the Denver area. this Order or (b) later than three months after the Four of these are small suburban banks whose date of this Order, unless such period is extended service areas do not overlap to any significant for good cause by the Board, or by the Federal extent with that of Bank. However, Applicant’s Reserve Bank of Kansas City pursuant to dele­ lead bank, Colorado National Bank ($290 million gated authority. in deposits), is located in downtown Denver and By order of the Board of Governors, March 16, serves the entire Denver area. Despite these over­ 1972. lapping service areas, consummation of the pro­ Voting for this action: Chairman Burns and Governors posal would eliminate little competition between Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: the institutions involved. Colorado National Bank Governor Maisel. specializes in providing corporate banking services (Signed) Tynan Sm ith, and Bank does not participate in this market to [seal] Secretary of the Board. any significant extent (it has none of the institu­ tional accounts from the medical center). It does not appear likely that Bank would develop into D issenting Statement of Governors Robertson and Brimmer banking data are as of June 30, 1971, and reflect all holding com­ The majority’s approval of this application pany formations and acquisitions approved by the Board through January 31, 1972. permits the third largest banking organization in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN □ APRIL 1972 the Denver area to acquire a direct competitor in minimum, the majority should have required at that area. Applicant’s lead bank, Colorado Na­ least some evidence that Bank’s capital problem tional, and Bank have overlapping service areas, (which we think has been exaggerated) could not while two other subsidiaries of Applicant have be solved by some less anticompetitive alterna­ offices within five miles of Bank. Colorado Na­ tive means. We find none. For ourselves, we would tional alone derives 3 per cent of its demand de­ be reluctant to permit any bank which had real posits and 10 per cent of its time and savings de­ capital problems to be acquired by a holding com­ posits from Bank’s service area. Such figures pany whose own capital structure includes a debt are, respectively, 67 per cent and 333 per cent of to equity ratio of 78 per cent. the amount derived by Bank from the area. Con­ In the absence of any showing on the record summation of the proposal would eliminate exist­ of public benefits which would outweigh the ing direct competition between the two institu­ adverse competitive effect of consummation of tions and would have adverse effects. Additionally, the proposal, we believe the provisions of the Applicant would have six banking subsidiaries Bank Holding Company Act direct the Board to in the Denver area, two more than any other bank­ deny the application, and hence we dissent from ing organization. the action taken. Against these actual substantial anticompetitive effects, the majority weighs the probability that WYOMING BANCORPORATION, affiliation with Applicant will give Bank a more CHEYENNE, WYOMING ready access to capital funds and thus enable it to make larger loans. The majority asserts that affil­ Order Approving Acquisition of Banks iation with Applicant will enable Bank to service Wyoming Bancorporation, Cheyenne, Wyo­ large commercial accounts. There is no showing in ming, has applied for Board approval under the record that any such accounts are going un­ § 3(a)(3) of the Bank Holding Company Act (12 served in the Denver area. Furthermore, whatever U.S.C. 1842(a)(3)) to acquire 59.5 per cent or need the Bank has for more capital funds has arisen more of the voting shares of The First National from Bank’s growth and the rapid expansion of Bank of Rawlins (“Rawlins Bank”), Rawlins, its deposits. Such growth in deposits makes it Wyoming, 58.4 per cent or more of the voting likely that Applicant’s subsidiaries and Bank shares of The First National Bank of Lander would be even more substantial competitors in (“Lander Bank”), Lander, Wyoming, and 84 the future, absent the proposal. Consummation per cent or more of the voting shares of Stockmans of the proposal would therefore have an adverse National Bank of Lusk (“Lusk Bank”), Lusk, effect on potential competition. Wyoming. The record in this case establishes beyond any Notice of receipt of the applications has been doubt that: given in accordance with § 3(b) of the Act, and the 1. The proposed acquisition would have an ad­ time for filing comments and views has expired. verse effect on competition in the Denver metro­ The Board has considered the applications and all politan area. comments received in the light of the factors set 2. The acquisition would eliminate present forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and competition, and some possibly greater competition finds that: in the future between Colorado National and Bank. Applicant, the third largest banking organization 3. The Applicant would acquire an additional in Wyoming, controls five banks with aggregate bank in a market area in which it controls more deposits of $45.4 million, representing 5.4 per banking subsidiaries than any other holding com­ cent of commercial bank deposits in the State. pany. (All banking data are as of June 30, 1971, and 4. Consummation of the proposal would fore­ reflect holding company formations and acquisi­ close an opportunity for possible entry into the tions approved through February 29, 1972.) The Denver banking market by other bank holding largest and second largest banking organizations companies or individuals. in Wyoming control 15 per cent and 8.9 per cent, 5. The proposed acquisition would result in respectively, of the State’s total commercial bank only a slight improvement in convenience and deposits. However, Applicant is the only multi­ services—a convenience too slight to outweigh the bank holding company, at present, which is allowed adverse effects on competition. by law to acquire additional banking subsidiaries On the basis of this record, we think that, at a in Wyoming. Rawlins Bank, Lander Bank, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 415 Lusk Bank control, respectively, $16.9, $12.4, cant to give continued needed support to each and $6.6 million of deposits. Upon consummation Bank. of the proposal, Applicant would become the Considerations relating to the financial and second largest banking organization in the State, managerial resources and future prospects of holding 9.7 per cent of total deposits in Wyoming. Applicant and Lusk Bank are satisfactory. The Rawlins Bank is the largest of the three banks future prospects of Lander Bank and Rawlins located in its service area, which is approximated Bank are considered satisfactory. Convenience by Carbon County and a portion of Sweetwater and needs considerations lend support to approval County, and holds 47.5 per cent of the total de­ in that Applicant plans to initiate trust services posits in commercial banks in that area. Lander at Lusk Bank and Lander Bank and increase the Bank is the second largest of the five banks lo­ trust services at Rawlins Bank. In addition Appli­ cated in its service area, approximated by Fremont cant intends to supply an overline source for large County. Lander Bank holds 24.5 per cent of the agricultural transactions. These factors lend some total deposits in commercial banks in that area. weight toward approval of the applications. It is Lusk Bank is the fourth largest of the eight banks the Board’s judgment that consummation of the located in its service area, holding 12.2 per cent proposed transactions would be in the public in­ of the total deposits in commercial banks in that terest, and that the applications should be approved. area which is approximated by Niobrara County On the basis of the record, the applications are and portions of Converse, Goshen, and Platte approved for the reasons summarized above. The Counties in Wyoming, and a portion of Sioux transactions shall not be consummated (a) before County in Nebraska. the thirtieth calendar day following the date of No proposed subsidiary bank is closer than 126 this Order or (b) later than three months after the miles to any other proposed subsidiary bank, and date of this Order, unless such period is extended none is closer than 90 miles to any of Applicant’s for good cause by the Board, or by the Federal present subsidiaries. There is no meaningful exist­ Reserve Bank of Kansas City pursuant to delegated ing competition between the proposed subsidiary authority. banks, nor between any of Applicant’s present sub­ By order of the Board of Governors, March 23, sidiaries and the proposed subsidiaries. It also 1972. appears unlikely that consummation of this pro­ Voting for this action: Chairman Burns and Governors Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent posal would preclude potential competition be­ and not voting: Governor Mitchell. cause of the distances involved, the number of intervening banks, and Wyoming’s prohibition (Signed) Tynan Smith, against branch banking. Based on the foregoing, [seal] Secretary of the Board. and the record before it, the Board concludes that consummation of the proposed transactions would BANCOHIO CORPORATION, not have an adverse effect on competition in any COLUMBUS, OHIO relevant market. Order Approving Acquisition of Bank In 1970, Applicant acquired indirect control of the three proposed subsidiary banks through BancOhio Corporation, Columbus, Ohio, a Enterprises Limited, a partnership comprised of bank holding company within the meaning of the certain of Applicant’s officers, directors, and Bank Holding Company Act, has applied for the shareholders. Applicant has indicated that should Board’s approval under § 3(a)(3) of the Act (12 any of these applications be denied, the partner­ U.S.C. 1842(a)(3)) to acquire 100 per cent (less ship would sell the respective bank to independent directors’ qualifying shares) of the voting shares parties. However, strong competition exists in of the successor by merger to The Central National each banking market of the proposed subsidiaries. Bank at Cambridge, Cambridge, Ohio (“Bank”). No significant adverse competitive effects would The bank into which Bank is to be merged has result from consummation of the proposal. Ap­ no significance except as a means of acquiring the proval of the application would formalize the voting shares of Bank. Accordingly, the proposed present relationship and perpetuate Applicant’s acquisition of the shares of the successor organi­ assistance to the banks. Both Rawlins Bank and zation is treated herein as the proposed acquisition Lander Bank have been assisted by Applicant in of the shares of Bank. resolving management and capital adequacy prob­ Notice of receipt of the application has been lems; approval of the application will enable Appli­ given in accordance with § 3(b) of the Act, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN □ APRIL 1972 time for filing comments and views has expired. Applicant, through its lead bank, would make The Board has considered the application and all available international banking services and FHA comments received in the light of the factors set mortgage loans, neither of which is presently forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and available locally. The affiliation would also facil­ finds that: itate larger loans by the Bank through participa­ Applicant, the largest bank holding company tions and would increase access to computer serv­ and second largest banking organization in Ohio, ices. Thus, considerations related to the conven­ has 31 subsidiary banks controlling deposits in ience and needs of the communities involved also excess of $1.6 billion, representing 7.4 per cent lend some weight toward approval. It is the Board’s of the total commercial bank deposits in the State. judgment that the transaction would be in the pub­ (All banking data are as of June 30, 1971, and lic interest, and that the application should be reflect holding company formations and acquisi­ approved. tions approved through February 29, 1972.) Con­ On the basis of the record, the application is summation of the proposal herein would increase approved for the reasons summarized above. The the percentage of total State deposits controlled transaction shall not be consummated (a) before by Applicant slightly to 7.5 per cent and Appli­ the thirtieth calendar day following the date of cant would remain the State’s second largest bank­ this Order or (b) later than three months after the ing organization. date of this Order, unless such period is extended Bank, with deposits of $26.7 million, holds for good cause by the Board, or by the Federal 41.9 per cent of deposits within Guernsey County Reserve Bank of Cleveland pursuant to delegated which approximates the relevant market within authority. which the competitive aspects of the proposal are to By order of the Board of Governors, March 23, be considered. Bank is the second largest of three 1972. banks within the market; the largest bank is affili­ ated with the fifth largest bank holding company Voting for this action: Chalirman Burns and Governors in the State, while the smallest bank, located 19 Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent andnotvoting: Governor Mitchell. miles from Cambridge, is unaffiliated. The acqui­ sition should intensify competition between the (Signed) Tynan Smith, two Cambridge banks which are comparable in size [seal] Secretary of the Board. without adversely affecting the smallest bank which has shown itself to be an aggressive competitor. FIRST FINANCIAL GROUP, INC., Although Applicant has subsidiary banks in four JANESVILLE, WISCONSIN of the six counties adjacent to Guernsey County, the nearest office of a subsidiary to an office of Order Approving Formation of Bank Bank is 20 miles away and there is no significant Holding Company competition between Bank and any subsidiary of First Financial Group, Inc., Janesville, Wiscon­ Applicant. Because of the distances involved, sin, has applied for the Board’s approval under Ohio’s restrictive branching laws, and other facts § 3(a)(1) of the Bank Holding Company Act (12 of record, it is considered unlikely that meaning­ U.S.C. 1842(a)(1)) of formation of a bank holding ful future competition will develop between Bank company through acquisition of 80 per cent or and Applicant’s subsidiaries. Therefore, it would more of the voting shares of The First National appear that approval of the application would not Bank (“First Bank”) and Peoples State Bank eliminate significant present competition or poten­ (“Peoples Bank”), both of Janesville, Wisconsin. tial competition. Accordingly, the Board concludes that competitive considerations are consistent with Notice of receipt of the application has been approval. given in accordance with § 3(b) of the Act, and the time for filing comments and views has expired. The financial and managerial resources and The Board has considered the application and all future prospects of Applicant and its subsidiaries comments received in the light of the factors set are regarded as satisfactory. The latest examination forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and of Bank indicates that it is in sound condition, but finds that: the application indicates that a management suc­ cession problem exists. Since Applicant could read­ Applicant is a newly-formed organization and ily resolve such a problem, banking factors lend has no operating history. Upon acquisition of First some weight toward approval. Bank ($36 million in deposits) and Peoples Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 417 ($3 million in deposits), Applicant would become expanded services in the future. Considerations the 19th largest bank holding company and the 20th relating to the convenience and needs of the com­ largest banking organization in the State and would munities to be served lend some weight toward control about 0.4 per cent of the commercial bank approval of the application. deposits in the State. (All banking data are as of Considerations relating to financial and mana­ June 30, 1971, and reflect holding company for­ gerial resources and future prospects as they relate mations and acquisitions approved through Feb­ to Applicant and its proposed subsidiaries are re­ ruary 29, 1972.) garded as generally satisfactory and consistent Both of the proposed subsidiary banks are lo­ with approval. Banking factors are consistent with cated in Janesville, a city of 46,000 in Rock approval. It is the Board’s judgment that the pro­ County, Wisconsin. There are six banks in Janes­ posed transaction would be in the public interest ville representing three banking groups, each of and that the application should be approved. which has two closely related banks. Applicant’s On the basis of the record, the application is group is the second largest as the two other groups approved for the reasons summarized above. The have deposits of $56 million and $29 million, re­ transaction shall not be consummated (a) before spectively. First Bank, Applicant’s lead bank, is the thirtieth calendar day following the date of located in the downtown business section of the this Order or (b) later than three months after the city. Peoples Bank is located in a shopping center date of this Order, unless such period is extended in the western part of Janesville, approximately for good cause by the Board, or by the Federal 1.3 miles from First Bank. The area served by Reserve Bank of Chicago pursuant to delegated First Bank includes practically the entire city of authority. Janesville, and encompasses the service area of Peoples Bank. First Bank and Peoples Bank are, By order of the Board of Governors, March 23, respectively, the second largest and smallest of the 1972. six Janesville banks and the fourth and sixteenth Voting for this action: Chairman Burns and Governors largest of 18 banks in Rock County, the relevant Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent and market. not voting: Governor Mitchell. The two proposed subsidiary banks have been (Signed) Tynan Smith, closely associated since Peoples Bank was orga­ [seal] Secretary of the Board. nized by the principal officers and directors of First Bank in 1969. First Bank has assisted Peoples ORDER UNDER SECTIONS 3 AND 4 Bank durirlg the entire priod of Peoples Bank’s OF BANK HOLDING COMPANY ACT operations. Presently, shareholders common to both banks control 54 per cent of First Bank and OLD COLONY CO-OPERATIVE BANK, 66 per cent of Peoples Bank. Additionally, there are eight common directors, representing more PROVIDENCE, RHODE ISLAND than a majority of either bank’s board of directors. Order Approving Retention of Bank and Because of this close relationship, no meaningful Continuation of the Activities of a competition exists between the subject banks, Thrift Institution and it appears likely that such relationships will continue regardless of the Board’s action on the Old Colony Co-operative Bank, Providence, present application. On the basis of the record be­ Rhode Island, has applied for the Board’s approval fore it, the Board concludes that consummation of under § 3(a)(1) and § 4(c)(8) of the Bank Holding the proposed acquisition would not have a signif­ Company Act (12 U.S.C. 1842(a)(1) and 1843(c) icantly adverse effect on competition in any rele­ (8)) to retain 87.15 per cent or more of the voting vant area. Nor is consummation likely to have any shares of The Newport National Bank, Newport, significant adverse effects on Bank’s competitors. Rhode Island, and to continue to engage in the activities of a thrift institution. Applicant proposes to assist Peoples Bank, through its lead bank, in the technical aspects of Pursuant to § 3(b) of the Act, the Board gave lending, data processing, trust services, marketing, written notice of receipt of the application to retain accounting, and auditing. While some of these voting shares of a bank to the Comptroller of the services are already being furnished, approval of Currency and requested his views and recom­ this formation would assure the continuation of mendation; the Comptroller recommended ap­ present services and the addition of improved and proval. Additionally, the Bank Commissioner and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN □ APRIL 1972 the Director of the Department of Business Regu­ of its decision to hold a hearing regarding Rhode lation for the State of Rhode Island recommended Island thrift institutions investments in commercial that the applications be approved. banks. Applicant participated in the hearing by Notices regarding the receipt of the applications presenting testimony bearing on the questions and the Board’s decision to conduct a hearing with before the Board. The Board has considered the respect to the applications were published in the applications, the comments received, and the evi­ Federal Register on November 12, 1971 (36Federal dence offered at the hearing, including testimony Register 21708, 21710). The hearing was held presented by representatives of the Federal Home before available members of the Board on Novem­ Loan Bank Board expressing opposition to the ber 29, 1971. All persons desiring to give testi­ proposal. mony, present evidence or otherwise participate Applicant is the largest thrift institution and in the hearing were permitted to do so. Time for fifth largest financial organization in Rhode Island. filing additional comments and views has expired; It is headquartered in Providence and operates all those received and the entire record of the hear­ 13 branches in the Providence banking market and ing have been considered by the Board. one branch 25 miles south of Providence. Applicant On the basis of the record and other relevant presently holds $308.9 million in deposits, which material, the applications are approved for the represent 8.9 per cent of the total deposits held by reasons set forth in the Board’s Statement of this all the financial organizations in Rhode Island. date. Because of its inability to offer checking account By order of the Board of Governors, March 9, services, Applicant is at a distinct competitive 1972. disadvantage in relation to the 11 commercial Voting for this action: Chairman Burns and Governors banks, 6 mutual savings banks, and 8 credit unions Robertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. in the Providence market which presently accept demand deposits or are authorized to do so.3 (Signed) Tynan Sm ith, Newport Bank ($28.1 million deposits) is the [seal] Secretary of the Board. second largest of nine financial organizations operating in the Newport market and holds about Statement 19 per cent of the total deposits derived from the area. There is little meaningful competition be­ Applicant is a State-chartered building and loan tween Applicant and Bank at the present time, association1 that became a bank holding company and it is unlikely that such competition would by its acquisition of shares in The Newport National develop in the future. Each serves different and Bank, Newport, Rhode Island, in January of 1971 distinct markets and their nearest offices are sepa­ apparently without knowledge that such acquisi­ rated by a distance of 14 miles and a toll bridge tion required Board approval under the Bank costing $2.00 per round trip. Furthermore, it is Holding Company Act.2 Subsequently, pursuant unlikely that either Applicant or Bank would to contracts entered into in January and February independently branch into the area served by the of 1971 and decisions handed down by the United other. It appears, therefore, that no meaningful States District Court for the District of Rhode competition would be eliminated, nor significant Island, Applicant purchased additional shares of potential competition foreclosed, by the approval Bank. The present applications are for the Board’s of Applicant’s proposal. permission to retain all shares acquired and to On the contrary, as a result of approval of Appli­ continue the activities of a thrift institution. cant’s proposal, competition should be increased In view of the issues raised by these applica­ in each of the markets served by Applicant and tions and a proposal involving another Rhode Bank. Applicant proposes establishing an office Island thrift institution, the Board published notice of Bank in each of its existing offices, thereby enabling Applicant to offer checking account 'The Rhode Island Legislature, in 1970, specifically authorized an services, and a branch of Applicant in each of association such as Applicant to establish de novo a bank or trust company Bank’s offices. The effect would be to add an or to hold a majority of the issued and outstanding stock of a bank or trust company. additional source of commercial banking services to 2On June 22, 1971, the Board ordered that any company which acquired a bank between December 31, 1970, and June 22, 1971, without first securing prior Board approval because of lack of knowledge 3Each mutual savings bank in Rhode Island owns a commercial bank of that requirement might file for such approval by August 31, 1971. subsidiary through which it offers checking account services. In 1971, Applicant filed its application with the Federal Reserve Bank of Boston the Rhode Island Legislature authorized State-chartered credit unions on August 30,1971. with shares over $ 1 million to accept demand deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 419 the Providence market and an additional source of ORDERS UNDER SECTION 4(c)(8) OF BANK thrift institution services to the Newport market. HOLDING COMPANY ACT CROCKER NATIONAL CORPORATION, The financial and managerial resources of Appli­ cant are regarded as satisfactory and consistent SAN FRANCISCO, CALIFORNIA with approval of the proposal, and its prospects Order Denying Determination under upon approval of the proposal appear favorable. § 4(c)(8) of Bank Holding Company Act Bank is somewhat undercapitalized and needs Crocker National Corporation, San Francisco, management personnel. Applicant intends to assist California, a bank holding company within the Bank in remedying these deficiencies; it possesses meaning of the Bank Holding Company Act of both the resources and expertise to do so. Pros­ 1956, has applied for the Board’s approval under pects of Bank as a subsidiary of Applicant appear section 4(c)(8) of the Act and § 225.4(b)(2) of the favorable. The major banking needs of the Provi­ Board’s Regulation Y to acquire all of the voting dence and Newport areas are presently being met shares of Ralph C. Sutro Co. (“Sutro”), Los by the existing institutions, and approval of this Angeles, California. Notice of the application proposal would result in no new services. In the affording opportunity for interested persons to sub­ Board’s judgment, the balance of the banking mit comments and views was duly published. The factors the Board is required to consider under sec­ time for filing comments and views has expired tion 3(c) of the Act favors approval. and all received have been considered, including those presented orally and in writing in connection In considering Applicant’s request to continue with a Board hearing on November 8, 1971, per­ the activities of a thrift institution, the Board has taining to mortgage banking in general, and this determined that, in view of the history of affiliation application in particular. of mutual thrift institutions and commercial banks Applicant owns the Crocker National Bank in Rhode Island, Applicant’s continuing to engage (“Bank”), San Francisco, the twelfth largest bank in the activities of a thrift institution is so clearly in the country and the fourth largest in California. related to Rhode Island banking as to be a proper Bank’s total deposits of $4.4 billion represent 8.5 incident thereto. As the Board noted in the recent per cent of all commercial bank deposits in the case involving another Rhode Island thrift institu­ State. Bank operates 283 branches which are tion, the Board believes that the situation in Rhode located throughout the State of California with Island may and should be treated separately from the principal exceptions of San Diego and Imperial the question whether the operation of a savings and Counties. Through Bank, Applicant originates loan association by a bank holding company is so mortgages for its own account and services its own closely related to banking that it can be a permis­ mortgage loan portfolio, which exceeds $300 sible activity within the meaning of section 4(c)(8) million. of the Act. Sutro is active in the origination of mortgage Approval of the applications would permit Appli­ loans in most of the major markets in California, cant to compete more effectively with the other and is in direct competition with Bank for origina­ Rhode Island financial organizations in which a tions in many of these markets. Headquartered in thrift institution owns a commercial bank. This Los Angeles, Sutro operates branch offices in should produce benefits to the public of greater Orange County, San Diego, and San Francisco. convenience and increased competition without Sutro is the 29th largest mortgage banking firm in any significant adverse effects. Therefore, the con­ the country, based on its mortgage servicing port­ siderations affecting the competitive factors under folio of $560.2 million.1 Of real estate mortgages section 3(c) of the Act and the balance of the public recorded in the Los Angeles area2 during 1970, interest factors the Board must consider under sec­ Bank originated approximately $35 million mort­ tion 4(c)(8) of the Act in permitting a holding gage loans, representing 0.5 per cent of all origina­ company to engage in an activity on the basis that tions in that market. Sutro originated approxi­ it is closely related to banking both favor approval. mately $45 million mortgage loans in the Los Angeles area, or 0.7 per cent in the same market. Conclusion. On the basis of all the relevant In the six-county San Francisco market,3 Bank’s facts before it, including the record of the hearing relating to this matter, the Board concludes that the 1 Mortgage servicing data as of June 30, 1971. 2Los Angeles, Ventura, Orange and Santa Barbara Counties. proposal would be in the public interest and that the 3Alameda, Contra Costa, Marin, San Francisco, San Mateo and applications should be approved. Santa Clara Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 FEDERAL RESERVE BULLETIN □ APRIL 1972 mortgage loan originations represented a market In enacting the 1970 Amendments to the Act, share of 2.4 per cent, while those of Sutro repre­ Congress specified in § 4(c)(8) that the Board sented 0.1 per cent. Consummation of the proposed shall consider whether the performance of a par­ transaction would foreclose this existing com­ ticular activity by an affiliate of a holding company petition. “can reasonably be expected to produce benefits Both Applicant and Sutro have the capability to the public, such as greater convenience, in­ and appear to have the incentive to enter geographic creased competition, or gains in efficiency, that markets in which neither has offices. In view of outweigh possible adverse effects, such as undue the size, resources, experience, and expertise of concentration of resources, decreased or unfair both parties and the structural conditions of the competition, conflicts of interests, or unsound California mortgage market, the Board believes banking practices”. On the record of this case, the that the likelihood for competition between Appli­ evidence of adverse effects that would flow from cant and Sutro in new markets is substantial and approval of Applicant’s proposal has not been out­ that the Applicant should enter those markets weighed by evidence of likely benefits to the either by the establishment of new offices or, per­ public.5 haps, through the acquisition of a small going Accordingly, based upon the foregoing and concern. other considerations reflected in the record, the The Board also views unfavorably the concentra­ application is denied. tion of economic resources that would result from By order of the Board of Governors, March 9, the proposed acquisition.4 The proposal would 1972, released on March 16, 1972. combine one of the largest commercial banks in Voting for this action: Chairman Burns and Governors California and the nation with a mortgage company Robertson, Maisel, and Brimmer. Voting against this action: that itself is on major significance in its field. The Governors Mitchell, Daane, and Sheehan. consolidated assets of the two financial institutions (Signed) Tynan Smith, would exceed $6 billion; their combined mortgage [seal] Secretary of the Board. servicing portfolio would approximate $877 million. Concurring Statement of Chairman Burns Applicant states that California mortgage com­ panies find it essential to look to markets outside Approval of Crocker National Corporation’s California to satisfy the demands of their institu­ application to acquire Ralph C. Sutro Co. would tional investors, because California is shifting lead to elimination of existing competition be­ from a capital deficit state to a capital surplus tween the two firms in the origination of mortgage state. On the other hand, no significant public loans. However, the extent of this existing competi­ benefit to California borrowers would derive from tion is relatively insignificant. I voted to deny the proposed acquisition either by way of greater the application principally because approval would convenience or of gains in efficiencies. In these foreclose future competition between the two circumstances, the Board finds that any public organizations in a number of mortgage banking benefits to be derived from consummation of the markets in California. proposed acquisition do not outweigh the probable In my judgment, Crocker’s size alone does not adverse competitive effects. preclude it from making a procompetitive entry into mortgage banking through acquisition of a ‘With respect to an undue concentration of resources, the Conference going concern. However, being a strong and pro­ Report accompanying the 1970 Amendments to the Bank Holding Com­ gressive banking organization, Crocker has the pany Act states: “The danger of undue concentration of economic resources and power is one of the factors which led to the enactment of capacity to become a significant competitor in this legislation, and constitutes a significant threat to the continued mortgage banking without acquiring a large Cali­ healthy evolution of our free economy. American trade has always oper­ fornia firm such as Sutro. ated on the principle that relationships between businessmen, large and small, should be founded on economic merit rather than monopoly Acquisition by Crocker of either a small mort­ power. Our national policies of limited governmental regulation and gage company in California, or of a large mortgage interference in trade and commerce, however, do make it possible for undue concentrations of resources and economic power to override funda­ mental fairness and economic merit when responding to the profit 5The House Conference Report (91-1747) states at page 19: motive. This possibility is enhanced when concentrations of power are “In connection with the overall application of the public benefits centered about money, credit and other financial areas, the common test, it is important to emphasize that the bank holding company denominators of the economy. ... It should be clear that this legislation making application under section 4(c)(8) must bear the burden of directs the Board to consider all reasonable ramifications of the concen­ proof in showing that its carrying on of a particular nonbank activity tration of resources in fulfilling its responsibilities under Section 4." would produce benefits to the public that outweigh any adverse Report No. 91-1747, p. 17. effects.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 421 company whose present activities are carried on State’s top 10 commercial banks (excluding primarily or solely outside the State, should have Crocker) service mortgages for others in addition to a more beneficial effect on future competition than those for their own account. would result from acquisition of Sutro. Approval Inasmuch as the majority of commercial banks of Crocker’s proposal would reduce the potential in California originate mortgages for institutional for significant new competition in California investors, there is direct competition between mortgage banking. In view of the concentration commercial banks and mortgage banks in both the of California banking in a few State-wide firms, it origination and servicing of mortgage loans. Up is important to assure that smaller California to now, Crocker has not been engaged in this organizations as well as organizations presently competition. located in other States have the opportunity to Residential mortgage credit in California is enter the market as strong competitors. Acquisi­ dominated by the role of savings and loan associa­ tion of a sizable concern such as Sutro may well tions. Their portfolios of conventional mortgages be the best way for one or the other type of organiza­ are 5 times as large as those of commercial banks. tion to enter the market effectively. I am satisfied Crocker’s share of the combined total of bank and that the potential for such entry is a real and prac­ savings and loan outstandings on residential mort­ tical alternative in this case. gages of all kinds in California is 1.8 per cent.2 The amount of insurance company and other investor D issenting Statement holdings of California residential mortgages is of unknown but they are the major buyers of mort­ Governors M itchell, D aane, and Sheehan gages generated by mortgage banking companies. As of September 1971, HUD estimates that for the Crocker National Corporation’s banking sub­ entire country mutual savings banks, life insurance sidiary, Crocker National Bank (“Crocker”), is companies and four other institutional holders had the fourth largest bank in California with 8.5 per in their portfolios $ 128 billion of residential mort­ cent of the State’s commercial bank deposits. gages compared to $147 billion held by savings and Nonbanking subsidiaries of Applicant include a loan associations and $45 billion held by commer­ Small Business Investment Company, as well as cial banks. companies engaged in the leasing of equipment Ralph C. Sutro Co. (“Sutro”), Los Angeles, and machinery, automobiles and trucks. None of California, is engaged in the general mortgage Crocker’s nonbanking assets is employed in the banking business in California. However, it not mortgage banking field. only competes with commercial banks and other All of California’s top 10 commercial banks are actively engaged in making real estate loans of one type or another. Crocker is especially active Mortgage Portfolios of Banks and in conventional residential mortgages and in the Savings and Loan Associations in California nonfarm nonresidential category.1 Six of the Outstandings (millions) Dec. 31, ‘According to the June 30, 1971 Report of Condition, the Crocker 1971 June 30, 1971 Citizens National Bank held the following portfolio of real estate loans: Crocker Savings Banks & Per cent Outstandings & Loans Banks S & Ls Crocker of Total Crocker- Share All Calif. Crocker California Citizens of Bank Banks 1971 Activity FHA $ 1,215 $2,312 $ 3,527 $142 4.0 (millions) Outs. (millions) Added Paid VA 1,536 550 2,086 32 1.5 Conventional 29,152 6,396 35,548 575 1.6 Type of R.E. loan Total $31,903 $9,258 $41,161 $749 1.8 Secured by farm land $ 18.6 8.7% $ 213.9 $ 2.5 $ 4.9 Secured by 1-4 fam. San Francisco SMSA res. FHA $ 183 Insured FHA 140.6 6.2 2,262.1 12.7 14.6 VA 144 Guaranteed by VA 31.6 5.7 549.9 3.0 2.6 Conventional 5,860 Conventionally fin. 505.3 12.4 4,080.7 193.9 79.3 $ 6,187 Sec. by 5 or more res. prop. Los Angeles SMSA Insured by FHA 1.0 2.0 49.7 .1 FHA $ 744 Conventionally fin. 70.2 11.1 630.9 8.9 12.7 VA 1,159 Nonfarm nonres. 248.8 10.7 2,315.1 58.0 54.7 Conventional 17,162 Total $1,016.1 10.0 $10,102.3 $279.0 $168.9 Total $19,065 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN □ APRIL 1972 mortgage bankers headquartered in California, but to billions of dollars and not to the range of tens with mortgage bankers from outside the State as and hundreds of millions. well. National mortgage banking firms, with Our fears of concentration arise from the pre­ offices in Los Angeles and San Francisco, include ponderant role of California savings and loan subsidiaries of First National City Corporation, associations in the California housing market. Philadelphia National Bank, and Pittsburgh Na­ Those institutions would become more competi­ tional Corporation. Lomas & Nettleton, the tive and the market more stable if the role of banks nation’s largest mortgage banking firm, has four and other institutional investors were larger. offices in Los Angeles and three offices in San We do not visualize Sutro as continuing an Francisco alone. The number of firms competing independent existence in light of the housing in the mortgage markets in California, as well as record. The majority conceives a more productive the size of the firms, give some measure of the union with an out-of-State institution or a smaller intense competition prevailing in these markets. California bank. It is possible that this could take Compared to Crocker ’ s mortgage business, Sutro place. It is also possible that with some out-of-State is a small operation. Overall, its originations in or smaller California affiliation Sutro’s position 1971 were about one-fourth those of Crocker. could be eroded and it could disintegrate even as However, in Southern California it did twice as a minor competitive influence in the huge Califor­ much business as Crocker. And in the VA market nia market. it outdid Crocker 10 to 1 and in the FHA market The concept of de novo entry, as espoused nearly 2 to 1. Its originations of conventional mort­ by the majority, is inappropriate where, as here, gages on the other hand were 1 per cent of Applicant would find substantial difficulty in be­ Crocker’s.3 coming a significant competitive threat to the These data on the geographical and product leading firms already engaged in mortgage bank­ markets of Crocker and Sutro attest to the minimal ing. A de novo entry by Crocker will require many competition existing between them. Whatever ad­ years, if the experience of other bank holding verse effects on existing competition that may companies who entered mortgage banking in this result from the proposed acquisition can only be manner is any indication, before even a modest described as minute. market share is obtained. Acquisition of Sutro, on The majority apprehension on potential com­ the other hand, would be procompetitive, as it petition is, in our opinion, not supported by infer­ would enable Crocker to compete in each separate ences from known facts. For all practical purposes, product market of mortgage banking with the indus­ Sutro and Crocker do not compete now and have try leaders. Thus, entry through acquisition would not in the past. What is the evidence they would enhance competition, not hinder it, within each compete in the future? They are and have been of the local mortgage markets in the State. active in different geographical and product mar­ In our view, the clear public benefits to be kets. Combined, their range of operation would derived from this particular acquisition more than expand product-wise and geographically. Com­ outweigh the conjectural, and in our judgment bined, they would be a more diversified and knowl­ unrealistic, possibility of greater public benefits edgeable lender than either is now. from a different affiliation with an unknown and Concentration apprehensions appropriate to the uncertain partner. Therefore, applying the statutory giant California mortgage market must be geared standards of § 4(c)(8) to the facts of record, we would approve the application. Crocker & Sutro originations in 1971 COLORADO NATIONAL BANKSHARES, (millions of dollars) INC., DENVER, COLORADO Crocker Sutro DOCKET NO. BHC-110 Type of Real Estate Loan Amount Amount _ Farm land $ 2.5 Residential D etermination Regarding Planned FHA 12.7 $21.5 VA 3.0 31.9 Activities of N onbanking Subsidiary No C n o fa n r v m en — tio N n o a n l residential 20 5 2 8 . . 8 0 1 2 7 . . 1 7 under Bank H olding Company Act Construction NA .8 Total In the matter of the application of Colorado $279.0 $74.0 Northern California National Bankshares, Inc., for a determination Southern California $246.4 $ 4.5 32.5 69.6 under § 4(c)(8) of the Bank Holding Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 423 Act of 1956, respecting the planned activities of That the planned activities of the proposed sub­ B-G Service Corp. and Aspen Industrial Bank, sidiary, Aspen Industrial Bank, are determined to proposed subsidiaries. be so closely related to banking or managing or Applicant, Colorado National Bankshares, Inc., controlling banks as to be a proper incident Denver, Colorado, a bank holding company within thereto. the meaning of the Bank Holding Compay Act of By order of the Board of Governors, March 1956, had filed a request for a determination by 23, 1972. the Board of Governors that the planned activities Voting for this action: Chairman Burns and Governors of its proposed subsidiaries, B-G Service Corp. Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent and Aspen Industrial Bank, are of the kind and not voting: Governor Mitchell. described in § 4(c)(8) of the Act (12 U.S.C. (Signed)TYNAN Smith, 1843(c)(8)) so as to make it unnecessary for the [seal] Secretary of the Board. prohibitions of § 4 of the Act with regard to the acquisition or retention of shares in nonbanking Recommended Decision, Findings organizations to apply in order to carry out the of Fact, and Conclusions of Law purposes of the Act. Preliminary Statement The application was filed prior to the passage of the Bank Holding Company Act Amendments Pursuant to the order of the Board of Governors of 1970. In accordance with applicable provisions of the Federal Reserve System, dated October 15, of the Act prior to the passage of the 1970 Amend­ 1970, a hearing was held before the undersigned ments, a hearing was held on this matter on De­ hearing examiner on December 1, 1970, at the cember 1, 1970, pursuant to an Order of the Denver branch of the Federal Reserve Bank of Board of Governors, before a hearing examiner Kansas City, pursuant to Section 4(c)(8) of the selected by the Civil Service Commission pursuant Bank Holding Company Act of 1956 (12 U.S.C. to § 3344 of Title 5 of the United States Code. 1843 (c)(8)), upon the application in the form of a The record made at said hearing was duly filed letter, dated June 17, 1970, from Colorado CNB with the Board. Inasmuch as § 4(c)(8) of the Act, Bankshares, Inc., Denver, Colorado, whose name as amended, is controlling with respect to the has since been changed to Colorado National issues to be determined in this matter, on April Bankshares, Inc., a bank holding company, 29, 1971, the Board issued a notice of opportunity for a determination that the activities of its proposed for hearing in this matter pursuant to § 4(c)(8), as subsidiaries, B-G Service Corp. and Aspen In­ amended. Requests for hearing were made by dustrial Bank, are each of an insurance, fiduciary letters dated May 18, 1971, by the National As­ or financial nature, and so closely related to the sociation of Insurance Agents, Inc., and the Na­ business of banking or managing or controlling tional Association of Mutual Insurance Agents. banks as to be a proper incident thereto, and make By letter dated November 2, 1971, Applicant it unnecessary for the prohibitions of Section 4 moved to amend its original application, stating of the Bank Holding Company Act of 1956, as that B-G Service Corp. will cease doing business amended, to apply to the acquisition by Colorado and be liquidated upon its acquisition and that CNB Bankshares, Inc., now Colorado National Applicant sought only a determination by the Board Bankshares, Inc., of the controlling shares of B-G that the activities of Aspen Industrial Bank are of Service Corp. and its subsidiary, Aspen Industrial the kind described in § 4(c)(8) of the Act. By Bank, in order to carry out the purposes of the letters dated November 9 and November 13, 1971, Bank Holding Company Act of 1956, as amended. respectively, the proposed intervenors withdrew The record made at said hearing has been filed their request for a further hearing. On December with the Board. 16, 1971, Hearing Examiner Poindexter filed his Subsequent to the date of the hearing held on recommended decision, a copy of which is an­ December 1, 1970, the Congress, on or about nexed hereto, wherein he recommended that the December 30, 1970 (Public Law 91 -607), amended Board make the requested determination. The time the Bank Holding Company Act of 1956 and, for filing exceptions to the recommended decision among other things, changed the language of has expired and none have been filed. The findings Section 4(c)(8) from the language which existed of fact, conclusions of law, and recommendations therein at the time of the hearing. of the Hearing Examiner are adopted, and, on the After the 1970 amendments of the Bank Hold­ basis of the entire record, It is hereby ordered: ing Company Act above referred to, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN □ APRIL 1972 National Bankshares, Inc. amended its applica­ to banking or managing or controlling banks as tion, and again requested a determination by the to be a proper incident thereto. In other words, Board pursuant to Section 4(c)(8) of the said Act Applicant, Colorado National Bankshares, Inc., as amended on December 30, 1970, that the does not now apply for a determination pursuant activities of B-G Service Corp. and Aspen In­ to Section 4(c)(8) concerning the activities of B-G dustrial Bank are each so closely related to banking Service Corp. In said motion to amend, Applicant or managing or controlling banks as to be a proper states that, if it acquires the shares of B-G Service incident thereto. Corp., B-G Service Corp. will cease doing busi­ Accordingly, since the Board has found that Sec­ ness, be liquidated, and Applicant will acquire tion 4(c)(8) of the Act, as amended on December the assets of B-G Service Corp., including all of 30, 1970, is controlling with respect to the issues the capital stock of Aspen Industrial Bank. to be determined in this proceeding, the Board The motion to amend further states that the of Governors of the Federal Reserve System, by Board of Governors of the Federal Reserve Sys­ order dated April 29, 1971, issued a second Notice tem has amended Regulation Y, Part 222, Title of Opportunity for Hearing so as to give any per­ 12, Code of Federal Regulations, to provide by son an opportunity to file a written request for Section 222.4(a) thereof that the Board has deter­ further hearings in this matter under the provisions mined that operating as an industrial bank in the of the Act as amended on December 30, 1970. manner authorized by state law, so long as the in­ By separate letters dated May 18, 1971, counsel stitution does not both accept demand deposits for the National Association of Insurance Agents, and make commercial loans, is an activity so Inc. and National Association of Mutual Insurance closely related to banking or managing or con­ Agents, respectively, requested, among other trolling banks as to be a proper incident thereto. things, a hearing on the issues raised in the Ap­ The motion to amend also requests that the plication, and for permission to intervene in this original Application to the Board, dated June 17, proceeding. Following informal discussions be­ 1970, relating to the insurance activities of Aspen tween counsel for the Applicant, proposed inter- Industrial Bank set out on page 5 thereof be venors and counsel for the Board, the Applicant amended as follows: agreed that, after Applicant acquires the capital It also writes insurance upon property mortgaged to it and a stock of B-G Service Corp., B-G Service Corp. life and accident and health insurance policy upon borrowers in connection with the making of a loan, as it is permitted will be liquidated and its assets, including 100% to do under existing Colorado law, and charges commissions of the shares of stock of Aspen Industrial Bank, for such services. It does not propose to write insurance which and its shares of stock of Colorado National it is not permitted to write under existing Colorado law. Bankshares, Inc., will be distributed in liquida­ The motion to amend further states, among tion to the Applicant, Colorado National Bank­ other things, that, on March 23, 1971, the name shares, Inc. Applicant further agreed to amend its of Colorado CNB Bankshares, Inc. was changed Application accordingly, and omit therefrom any to Colorado National Bankshares, Inc., and re­ request for a determination pursuant to Section quests that the name, Colorado National Bank­ 4(c)(8) of the Amended Act concerning the ac­ shares, Inc., be substituted for the name, Colo­ tivities of B-G Service Corp. rado CNB Bankshares, Inc., in the caption, body, In furtherance of its agreement, and with a and signature on the Application. covering letter addressed to the Board, dated Along with the motion to amend application, November 2, 1971, counsel for the Applicant counsel submitted the affidavit of Mr. Charles A. enclosed therewith for filing an original and two Baer, Executive Vice President of Colorado Na­ copies of an undated “Motion to Amend Applica­ tional Bankshares, Inc., which affidavit contains tion”. This is the second motion to amend its additional factual information concerning matters original application filed by Applicant. In this which have occurred since the hearing was closed. latest motion to amend its original application, Pursuant to the request of counsel, the name, Applicant has abandoned the request made in its Colorado National Bankshares, Inc., has been sub­ original application for a determination pursuant stituted for the name, Colorado CNB Bankshares, to Section 4(c)(8) of the Act, as amended, con­ Inc., in the caption hereof, and Mr. Baer’s af­ cerning the activities of both B-G Service Corp. fidavit accepted and considered as a part of the and Aspen Industrial Bank, and now seeks a record in this matter. determination by the Board that the activities of By letters to the Board, dated November 9 and Aspen Industrial Bank only are so closely related 19, 1971, respectively, the proposed intervenors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 425 withdrew their requests to intervene and for a insurance, with reference to chattel property or further hearing herein. Therefore, the matter is real estate which may be pledged or mortgaged to now ready for a recommended decision under one or more of the banks to secure the payment of Section 4(c)(8) of the Amended Act upon the monies borrowed from such banks. In addition, basis of the latest Motion to Amend Application Applicant and the subsidiary banks require a which accompanied the letter, dated November 2, banker’s blanket bond and fire, extended coverage 1971, from counsel for the Applicant to the Board, and liability policies on all properties owned by “Attention: Mr. CharlesL. Marinaccio Attorney”, Applicant and by each of its subsidiary banks. above referred to, the affidavit of Mr. Baer, and No application is currently being made for approval the record made at the hearing. of these activities. Proposed findings of fact, conclusions of law, 4. B-G Service Corp. is a Colorado corpora­ and brief have been submitted by counsel for tion which was incorporated in 1968 for the pur­ Colorado National Bankshares, Inc., the applicant pose of writing insurance, primarily accident, herein. These have been considered. All proposed health and credit life insurance and some casualty findings and conclusions not found or concluded insurance, for customers of Bank of Glenwood. herein are rejected. Upon the basis of the entire All shareholders of B-G Service Corp. were also record, the undersigned hearing examiner makes shareholders of Bank of Glenwood until they ex­ the following findings of fact and conclusions of changed their shares of Bank of Glenwood stock law, and issues the following recommended deci­ for stock of the Applicant on March 18, 1971, sion: and now all shareholders of B-G Service Corp. are shareholders of Applicant. The office of B-G Findings of Fact Service Corp. is at Bank of Glenwood, and it has 1. The Applicant, Colorado National Bank­ only one part-time employee who is also a full­ shares, Inc., formerly known as Colorado CNB time employee of Bank of Glenwood. B-G Service Bankshares, Inc., is a corporation organized under Corp. will be acquired and liquidated and conduct the laws of the State of Colorado, with its prin­ no further activities. cipal place of business located at 17th and 5. B-G Service Corp. holds 100% of the stock Champa Streets, Denver, Colorado. Colorado Na­ of Aspen Industrial Bank, and 1,901 shares of tional Bankshares, Inc. is a registered bank hold­ Applicant’s stock which it acquired on March 18, ing company under the Bank Holding Company 1971 in exchange for 667 shares out of 20,000 Act of 1956, as amended (Application dated June shares outstanding of Bank of Glenwood, and 667 17, 1970) and, by action of its shareholders on shares out of 20,000 shares outstanding of Glen­ March 23, 1971, the name of the Applicant was wood Bank Building Corporation. The shares of changed from Colorado CNB Bankshares, Inc. to Aspen Industrial Bank and of Applicant will be Colorado National Bankshares, Inc. (Baer Affidavit acquired by applicant on liquidation of B-G Service dated May 13, 1971). Corp. 2. The Applicant, Colorado National Bank­ 6. Aspen Industrial Bank is an industrial bank shares, Inc., controls five banks located in the chartered under Article 17 of Chapter 14, Colorado Denver Metropolitan Area, as follows: The Colo­ Revised Statutes Annotated 1963. As an industrial rado National Bank of Denver, Northeast Colorado bank, it is permitted by the Colorado Statutes National Bank, South Colorado National Bank, and does engage in the business of loaning money Lakewood Colorado National Bank, and Arapahoe on a secured or unsecured basis (with certain Colorado National Bank. Each bank is engaged in limitations with respect to interest it may charge), the general banking business. On March 18, 1971, accepts savings deposits and pays interest thereon, Applicant acquired in exchange for its stock all of issues investment certificates on savings deposits, the shares of Bank of Glenwood, a Colorado State such certificates having a maturity of not less than Chartered Bank engaged in the general banking one year, and it writes insurance upon property business in Glenwood Springs, Colorado. mortgaged to it and a life, accident and health 3. All banks do a substantial amount of in­ insurance policy upon borrowers in connection stallment lending and in connection therewith write with making loans to its borrowers, and performs or arrange for the writing of credit life, accident other banking services. and health insurance. In addition, the banks re­ 7. The Colorado Statutes specifically prohibit quire hazard insurance of various types, such as industrial banks from carrying any demand or fire, extended coverage, collision, and liability commercial bank deposits or to accept trusts, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN □ APRIL 1972 Aspen Industrial Bank complies. All savings ings deposits. The availability of advice to Aspen account passbooks issued by Aspen Industrial Industrial Bank from the Applicant with its ex­ Bank to its depositors specifically provide that perience and the experience of its various banks, Aspen Industrial Bank may defer the repayment of should make the operations of Aspen Industrial the deposit for up to sixty (60) days following de­ Bank more efficient and thus benefit the public in mand therefor by the depositor, and following that the area it serves. Colorado National Bankshares, 60-day period may then pay out the deposit in incre­ Inc. has been of assistance to Aspen Industrial ments of 10% per month over a ten month period. Bank in training its Chief Executive Officer, Aspen Industrial Bank depositors do not have a Richard W. Ducic, providing Aspen Industrial legal right to withdraw their savings deposits on Bank with a line of credit in the amount of $50,000, demand, and Aspen Industrial Bank is not a making available to it personnel for public re­ “bank” as that term is defined in the Bank Holding lations purposes when Aspen Industrial Bank Company Act of 1956. was opening, making available to it assistance 8. The insurance activities of Aspen Industrial in designing forms in working out procedures Bank are confined to writing insurance (as found for the operations of Aspen Industrial Bank. All in paragraph 6 hereof) for borrowers of Aspen such services have been helpful to Aspen In­ Industrial Bank in connection with loans made dustrial Bank. The continued assistance and to those borrowers from Aspen Industrial Bank availability of Applicant to Aspen Industrial Bank and it does not intend to write insurance which would be of assistance to Aspen Industrial Bank it is not permitted to write under the present in conducting its business. This continued as­ Colorado Statutes if its Application herein is sistance by Applicant cannot be assured if the granted. It has no plans to offer insurance to other proposed acquisition of Aspen Industrial Bank than borrowers of Aspen Industrial Bank, and by Applicant does not take place. while it urges its borrowers to obtain insurance 11. The greater convenience of the community in connection with such loans, the obtaining of of Aspen would be served by having a strong insurance, either written by Aspen Industrial Bank viable industrial bank located there able to furnish or by an outside insurance agency, is not a con­ the services mentioned above, and to make avail­ dition of obtaining a loan. able lending services to relatively high-risk bor­ 9. Aspen Industrial Bank commenced operation rowers who might find serious difficulty in ob­ in July 1970. It was organized by officers and taining loans upon satisfactory terms from the directors of B-G Service Corp. in order to service existing commercial banks in Aspen. the needs of the residents of Aspen, Colorado, and 12. At the present time there are two com­ the outlying areas near Aspen, which were con­ mercial banks in Aspen: sidered to be somewhat different than those of Bank of Aspen, which had deposits as of customers of commercial banks. Aspen has a December 31, 1970, of $13,247,445, and permanent population of approximately 2,350. First National Bank of Aspen, which had However, Aspen and the neighboring community deposits on the same date of $3,174,640. of Snowmass-at-Aspen are each predominantly 13. All activities of Aspen Industrial Bank recreational and tourist areas, with a large tem­ listed herein are so closely related to banking or porary population of persons engaging in tem­ managing or controlling banks as to be a proper porary employment who present greater credit incident thereto. If Applicant acquires B-G risks, and Aspen Industrial Bank therefore can, Service Corp., it plans to acquire direct ownership and does, loan money at generally higher rates of B-G Service Corp.’s Aspen Industrial Bank than commercial banks in the area, and makes stock by liquidation of B-G Service Corp. as in­ loans not usually available from commercial dicated. banks because of the risk involved. 14. For the foregoing reasons, it is found that 10. If Applicant, Colorado National Bank­ all of the activities of Aspen Industrial Bank are shares, Inc., acquires control of Aspen Industrial so closely related to banking and managing or Bank, it will be in a position to assist Aspen In­ controlling banks as to be a proper incident there­ dustrial Bank through loans and furnishing tech­ to, and the acquisition of Aspen Industrial Bank nical advice, and thus Aspen Industrial Bank under the conditions set forth herein by Applicant should become a stronger competitor of the two may be authorized under Section 4(c)(8) of the other banks in Aspen for the types of loans which Bank Holding Company Act of 1956, as amended. an industrial bank is able to handle, and for sav­ 15. Performance by Aspen Industrial Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 427 its activities as an affiliate of Applicant can be mortgage company is an activity that the Board expected to produce benefits to the public in the has previously determined to be closely related form of greater convenience, increased com­ to the business of banking (12 CFR 225.4(a)(1)). petition, and gains in efficiency. Such benefits A bank holding company may acquire a company outweigh any possible adverse effect which might engaged in this activity in accordance with the result from such acquisition, such as undue con­ procedures the Board has established pursuant centration of resources, decreased or unfair to § 4(c)(8) of the Act. competition, conflicts of interest, or unsound bank­ Applicant is the sixth largest bank holding ing practices, but there is no evidence of any such company in Missouri. Applicant’s principal sub­ possible adverse effect. sidiary, Boatmen’s National Bank of St. Louis 16. Upon the basis of the evidence, it is found (deposits of $295.3 million),1 is the sixth largest that the activities of Aspen Industrial Bank are bank in Missouri and is the third largest bank in so closely related to banking and managing or the St. Louis Standard Metropolitan Statistical controlling banks as to be a proper incident Area (“SMSA”) where the bank holds 4.9 per thereto, and the acquisition of Aspen Industrial cent of deposits. In the St. Louis SMSA Ap­ Bank by Colorado National Bankshares, Inc. plicant also controls three other banks with com­ should be authorized under Section 4(c)(8) of the bined deposits of $54 million. Applicant’s com­ Bank Holding Company Act of 1956, as amended. mercial bank subsidiaries originate and service a limited number of long-term mortgage loans Conclusions and interim construction loans exclusively for Performance by Aspen Industrial Bank of its their own accounts. During 1970, Applicant’s activities as an affiliate of Colorado National banks originated 20 loans on income producing Bankshares, Inc. can be expected to produce properties which totalled $3.8 million. None benefits to the public in the form of greater of Applicant’s banks service mortgage portfolios convenience, increased competition, and gains for institutional investors. in efficiency. Company is a mortgage banking firm specializ­ ing in the origination and servicing of com­ Accordingly, it is recommended that the Ap­ mercial and industrial mortgage loans for the plication of Colorado National Bankshares, Inc. accounts of long-term investors. It does no mort­ be granted. gage financing on new one-four family residences, (Signed) John B. Poindexter, nor does it normally warehouse loans. On the Hearing Examiner. basis of its mortgage servicing portfolio of $106 million,2 Company ranks fifth among mortgage BOATMEN’S BANCSHARES, INC., companies located in the St. Louis area, and 192nd ST. LOUIS, MISSOURI in the nation. Five mortgage loans (totaling $16.2 million) on income producing property were Order Approving Acquisition of originated by Company during its last fiscal year W illiams, K urrus and Co. ending March 1971. The record herein evidences Boatmen’s Bancshares, Inc., St. Louis, Mis­ that neither Applicant nor Company have a souri, a bank holding company within the mean­ significant share of the market in mortgage lending ing of the Bank Holding Company Act of 1956, as on income producing properties—the only product amended, has applied for the Board’s approval, market in which they compete. On this basis, under section 4(c)(8) of the Act and § 225.4(b)(2) consummation of the proposed acquisition would of the Board’s Regulation Y, to acquire all of the have only a slightly adverse effect on existing voting shares of Williams, Kurrus and Co. (“Com­ competition. Company’s limited capital resources pany”), St. Louis Missouri. Notice of the ap­ limit its potential as a competitor to Applicant plication affording opportunity for interested in either the construction loan market or the market persons to submit comments and views has for permanent loans on one-four family residences. expired and all received have been considered, It is anticipated that Company’s affiliation with including those presented orally and in writing Applicant will enable Company to compete more in connection with a Board hearing on November effectively with the two largest mortgage banking 8, 1971, pertaining to mortgage banking in gen­ eral, and this application in particular. 1 Deposit data as of June 1971. The operation by a bank holding company of a 2Data as of June 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN □ APRIL 1972 firms in the St. Louis SMSA, both of which are of the Act and § 225.4(b)(2) of the Board’s Regu­ affiliated with banks. Company will also be able lation Y to retain all of the voting shares of H. S. to broaden the range of its mortgage banking Pickrell Company, Phoenix, Arizona. Said shares services through access to the resources of Ap­ were purchased by Applicant in May 1970, and plicant, and thus offer better services to the public. under the provisions of § 4(a)(2) of the Act may On balance, the Board concludes that the public not be retained beyond December 31, 1980, with­ benefits factors the Board is required to consider out prior Board approval. Notice of the applica­ under section 4(c)(8) outweigh any possible ad­ tion affording opportunity for interested persons verse effects that might result from the proposed to submit comments and views was duly published. acquisition. Time for filing comments and views has expired In addition to its mortgage loan and servicing and none have been received. activity, Company is engaged and proposes to Applicant owns the United Bank of Arizona continue to engage in real estate brokerage. Real (“Bank”), Phoenix, the sixth largest bank in estate brokerage is not an activity that the Board Arizona. Bank’s total deposits of $130.6 million has determined to be so closely related to banking represent 3.4 per cent of all commercial bank or managing or controlling banks as to be a proper deposits in the State.1 Bank is engaged in the incident thereto. Nor has Applicant demonstrated business of originating mortgage loans for its to the Board’s satisfaction that Applicant’s ac­ own account, consisting primarily of conven­ tivities in the real estate brokerage field are so tional residential mortgages and shorter-term closely related to banking or managing or con­ commercial mortgages. In 1970, Bank originated trolling banks as to be a proper incident thereto. $231 thousand in conventional single family Accordingly, in the Board’s judgment, approval residential loans, and $3.7 million in commercial of the application herein is appropriate only on real estate loans. Its mortgages servicing port­ condition that Company terminates its real estate folio of $12.7 million represented the total volume brokerage activities. of real estate loans serviced for its own account. Based on the record herein, the application is Bank does not service loans for others. approved on condition that Company terminates H. S. Pickrell Company is engaged in the its real estate brokerage activities. This approval business of originating and servicing mortgage is subject further to the Board’s authority to re­ loans through its head office in Phoenix and one quire reports by, and make examinations of, hold­ branch located in Tucson, Arizona. In 1969, its ing companies and their subsidiaries and to re­ last full year of operation as an independent mort­ quire such modification or termination of the gage company, it originated $10.5 million in activities of a holding company or any of its sub­ residential mortgages (all FHA or VA loans). In sidiaries as the Board finds necessary to assure 1970, this volume increased to $14.6 million. compliance with the provisions and purposes Its commercial loan originations have fluctuated of the Act and the Board’s regulations and orders between $8.1 million in 1968; $3.6 million in issued thereunder, or to prevent evasion thereof. 1969; and $17 million in 1970. H. S. Pickrell By order of the Board of Governors, March 23, Company’s total mortgage originations in the 1972. Phoenix area in 1970 accounted for 3.2 per cent of all mortgages recorded in the Phoenix market, Voting for this action: Chairman Burns and Governors while those of Applicant accounted for less than Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent and not voting: Governor Mitchell. 0.4 per cent. Based upon a mortgage servicing portfolio of $125 million,2 H. S. Pickrell Com­ (Signed) Tynan Smith, [seal] Secretary of the Board. pany ranks as the 167th largest mortgage banking company in the country. UB FINANCIAL CORP., The Board concludes that Applicant’s proposed PHOENIX, ARIZONA retention of H. S. Pickrell Company would have no adverse effects on competition, as neither in­ Order Approving Retention of H. S. stitution has more than a minor share of the mort­ Pickrell Company gage banking business in any local market in UB Financial Corp., Phoenix, Arizona, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended, has 1 Deposit data as of June 30, 1971. applied for the Board’s approval under § 4(c)(8) 2 Servicing portfolio as of June 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 429 Arizona, or in the State as a whole. Nor is there ORDER UNDER SECTION 4(d) OF BANK HOLDING anything in the record to indicate that the proposed COMPANY ACT retention would lead to an undue concentration of resources, conflicts of interests, or unsound CPC INTERNATIONAL, INC., banking practices. To the contrary, it appears ENGLEWOOD CLIFFS, NEW JERSEY that the public would benefit from the strengthening Order Approving Exemption of Nonbanking of H. S. Pickrell Company through the continu­ Activities of Bank Holding Company ance of its enhanced ability to offer larger lines of credit to its customers, and to compete more CPC International, Inc., Englewood Cliffs, effectively with the larger financial institutions in New Jersey, a bank holding company within the State. These public benefits clearly outweigh the meaning of the Bank Holding Company Act any possible adverse effects on competition. of 1956 (12 U.S.C. 1841), by virtue of ownership In addition to engaging in the activity of mort­ of more than 90 per cent of the voting shares of gage banking, Applicant seeks permission to re­ Argo State Bank, Summit, Illinois (“Bank”), tain H. S. Pickrell Company for the purpose of: has applied to the Board of Governors, pursuant (1) engaging in the purchase and sale of land, and to § 4(d) of the Act, for an exemption from the (2) acting as a joint venturer in real estate develop­ prohibitions of § 4 (relating to nonbanking ac­ ment. It appears that H. S. Pickrell is not cur­ tivities and acquisitions). rently engaged in any real estate joint ventures Notice of receipt of the application was pub­ but in June 1971, it purchased 19 acres of land, lished in the Federal Register on January 5, 1972 which it subsequently subdivided and improved (37 Federal Register 117). Time for filing com­ and has contracted to sell to an independent ments and views has expired. builder. Such land development activity was not Section 4(d) of the Act provides that to the ex­ then and is not now permissible for bank holding tent such action would not be substantially at companies. The Board is of the opinion that the variance with the purposes of the Act and sub­ activities of purchasing and selling of land or ject to such conditions as the Board considers participating as a joint venturer in real estate necessary to protect the public interest, the Board development are not so closely related to bank­ may grant an exemption from the provisions of ing as to be a proper incident thereto, and that § 4 of the Act to certain one-bank holding com­ insofar as the application pertains to these ac­ panies in order (1) to avoid disrupting business tivities, it should be denied. relationships that have existed over a long period Based upon the foregoing and other considera­ of years without adversely affecting the banks tions reflected in the record, the application is ap­ or communities involved, or (2) to avoid forced proved provided that H. S. Pickrell Company sales of small locally owned banks to purchasers shall not engage in the activities of purchasing not similarly representative of community in­ and selling land or participating in real estate terests, or (3) to allow retention of banks that are joint ventures. This approval is subject further so small in relation to the holding company’s to the Board’s authority to require reports by, total interests and so small in relation to the bank­ and make examinations of, holding companies ing market to be served as to minimize the likeli­ and their subsidiaries and to require such modifi­ hood that the bank’s powers to grant or deny cation or termination of the activities of a hold­ credit may be influenced by a desire to further ing company or any of its subsidiaries as the Board the holding company’s other interests. finds necessary to assure compliance with the The Board has considered the application and provisions and purposes of the Act and the Board’s all comments received in the light of the factors regulations and orders issued thereunder, or to set forth in § 4(d) of the Act and finds that: prevent evasion thereof. CPC International is a diversified multinational By order of the Board of Governors, March manufacturing company with assets in excess of $ 1 28, 1972. billion. Applicant’s largest plant, currently em­ ploying 2,800 people, has been located in Bed­ Voting for this action: Chairman Burns and Governors ford Park, a community adjoining Summit, Robertson, Mitchell, Brimmer, and Sheehan. Absent and not Illinois, since the beginning of the century. The voting: Governors Daane and Maisel. record shows that predecessors of Applicant be­ (Signed) Tynan Sm ith, gan acquiring shares of Bank’s common stock, [seal] Secretary of the Board. and below standard investments from Bank’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN □ APRIL 1972 portfolio in 1931, in a successful effort to prevent cally a part of the Chicago metropolitan area. Bank from failing; at that time, Bank was the Bank competes with the many other banks in the only Banking organization in Summit and, ap­ Chicago banking market and controls 0.1 per cent parently because over 1,000 employees of Ap­ of the total deposits in that market as of June 30, plicant were depositors of Bank, Applicant de­ 1971. cided to assist Bank in overcoming its problems. Based on the foregoing and other considera­ Continued purchases resulted in Applicant’s be­ tions reflected in the record, the Board has con­ coming the majority shareholder shortly there­ cluded, pursuant to § 4(d)(1), that an exemp­ after. An ownership interest in excess of 90 per tion is warranted to avoid disrupting a business cent was attained by 1936 and has been maintained relationship that has existed over a long period to the present date. It appears that Bank is well of years without adversely affecting the banks or managed and in sound financial condition and the communities involved; and pursuant to § 4(d)(3), record contains nothing to suggest that Applicant that Bank is so small in relation to the total in­ has abused its relationship with Bank or misused terests of Applicant and so small in relation to Bank’s services for the benefit of Applicant’s the banking market served by Bank as to minimize other interests. There is no reason to believe that the likelihood that Bank’s powers to grant or permitting this relationship to continue indefinitely deny credit may be influenced by a desire to will adversely affect the Bank or the communities further CPC’s other interests. Accordingly, an involved. exemption is granted; provided, however, that Bank’s total assets ($30 million) at year-end this determination is subject to revocation if the 1970 were about 3 per cent of Applicant’s con­ facts upon which it is based change in any material solidated assets and Bank’s earnings represent less respect. than 1 per cent of Applicant’s 1970 net income. By order of the Board of Governors, March It appears that CPC has never borrowed from 23, 1972. Bank and there has been no preferential treatment Voting for this action: Chairman Burns and Governors of CPC’s suppliers; and the small size of Bank Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent in relation to the credit needs of CPC makes it and not voting: Governor Mitchell. unlikely that CPC would use Bank unfairly to (Signed) Tynan Sm ith, further other interests of CPC. Summit is economi­ [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGE IN BOARD STAFF Margin regulations apply to extensions of credit by brokers and dealers (Regulation T) and Charles L. Marinaccio has been appointed an loans by banks and other lenders (Regulations Adviser in the Division of Supervision and U and G, respectively) for the purpose of pur­ Regulation effective April 3, 1972. A grad­ chasing or carrying stocks registered on a national uate with honors of the George Washington stock exchange or named in the Board’s List of University Law School, Mr. Marinaccio was OTC Margin Stocks. Stocks appearing on the with the U.S. Department of Justice before list have not been approved, in any way, by the joining the Board’s staff in 1969. Board and representation by any person that their appearance on the list indicates approval by the RESIGNATION OF DIRECTOR Board or is based on approval by any Government agency is unlawful. D. Ben Kleinpeter, who had served since Jan­ The criteria employed in selecting OTC stocks uary 1, 1970, as a Board-appointed director for inclusion on the list were announced on July of the New Orleans Branch of the Federal Re­ 9, 1969. The delisting criteria are substantially serve Bank of Atlanta, resigned on April 1, the same as those proposed by the Board on Feb­ 1972. ruary 28, 1972. CRITERIA FOR OTC MARGIN STOCKS PUBLICATION OF ANNUAL REPORT The Board of Governors, on April 11, 1972, The Fifty-Eighth Annual Report of the Board of issued the criteria that over-the-counter (OTC) Governors of the Federal Reserve System, cov­ stocks must continue to meet in order to remain on ering operations for the calendar year 1971, is its List of OTC Margin Stocks. The approximately available for distribution. Copies may be ob­ 430 stocks now on the list are subject to mar­ tained upon request to Publications Services, gin requirements. Division of Administrative Services, Board of The Board’s action, effective May 15, means Governors of the Federal Reserve System, Wash­ that margin stocks failing to meet the criteria ington, D.C. 20551. will be removed from the list and will not be subject to the Board’s margin requirements. ADMISSION OF STATE BANK TO MEMBERSHIP Federal Reserve margin requirements set the IN THE FEDERAL RESERVE SYSTEM minimum down payment that must be made to purchase margin securities. Under the present The following bank was admitted to membership 55 per cent requirement, a purchaser is required in the Federal Reserve System during the period to pay 55 per cent of the purchase price of a mar­ March 16, 1972, through April 15, 1972: gin security and may obtain credit for the remain­ Montana ing 45 per cent. Malta .....................First Security Bank of Malta 431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication April 14 Industrial production expanded further in March. EMPLOYMENT Nonfarm payroll employment and retail sales also Nonfarm payroll employment increased substan­ increased but the unemployment rate was higher tially in March with gains widespread among major as the labor force increased sharply. Wholesale industry groups. The average workweek of manu­ prices were little changed on average. Commercial facturing production workers was little changed bank credit, the money stock, and time and savings at close to the highest level in over 2 years. The deposits rose. Between mid-March and mid- unemployment rate rose to 5.9 per cent from 5.7 April, yields declined on short-term U.S. Govern­ in February, as large employment gains were ex­ ment securities but moved up in most other secur­ ceeded by an unusually sharp rise in the civilian ity markets. labor force. INDUSTRIAL PRODUCTION RETAIL SALES Industrial production at 109.6 per cent (1967 = 100) The value of retail sales in March rose 2.5 per cent in March was 0.6 per cent above the February index from the upward revised February level and was of 108.9 per cent. The March index was 4 per cent about 8 per cent above a year earlier, according to above a year earlier but still 2 per cent below the the advance report. Sales at durable goods stores 1969 high. Gains were moderate in consumer increased 4.5 per cent from February and sales at goods and fairly rapid in business equipment and nondurable goods stores were up 1.5 per cent. materials. Among consumer goods, output of carpeting, WHOLESALE AND CONSUMER PRICES household furniture, and consumer staples in­ The wholesale price index, seasonally adjusted, creased further while production of household rose 0.1 per cent between February and March. In­ appliances was off slightly from the advanced dustrial commodities increased 0.3 per cent, in February level and auto assemblies declined a little large part as a result of higher prices for metals, in March to an annual rate of 8.3 million units. In hides, lumber and plywood, and paper products. the materials group, production of steel, textiles, Prices of farm and food products fell 0.3 per cent and paper increased. Output of construction prod­ as marked declines were reported for livestock, ucts also rose. meat, and fresh vegetables. INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit, adjusted for transfers of loans between banks and their affiliates, increased substantially further in March—rising at an annual rate of about 18 per cent, somewhat more rapidly than in February. Loan expansion was substantial 120 in March with business loans increasing at about the strengthened rate of a month earlier. Holdings of both U.S. Treasury securities and municipal issues also expanded sharply with most of the SO growth in the short-term area. The narrowly-defined money stock increased 1972 1966 at an annual rate of 12.5 per cent in March, the F.R. indexes, seasonally adjusted. Latest figures: March. same as the rapid February rate and well above the 432 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRICES higher than in mid-March, with the increases on =100 Wholesale __ Consumer 1967=100 the longer maturities. The 3-month bill was bid at about 3.85 per cent in the middle of April, com­ pared with around 3.90 per cent a month earlier. Yields on U.S. Government notes and bonds rose by some 10 to 30 basis points over the same period. From mid-March to early April yields on new corporate securities increased, while yields on seasoned securities remained steady on balance. During the same period, interest rates on taxexempt securities also rose. Common stock prices rose over the period on active trading. INTEREST RATES Bureau of Labor Statistics. "Farm products and foods” is BLS PER CENT '‘Farm products, and processed foods and feeds."' Latest figures: Consumer, Feb.; Wholesale, Mar. slow pace of January and the second half of 1971. Total time and savings deposits increased at an annual rate of about 8 per cent, considerably less rapidly than in February. Expansion in consumertype time and savings deposits slowed further and large negotiable CD’s outstanding declined. Free reserves of member banks averaged about $75 million over the 5 weeks ending March 29 compared with $160 million in February. Member bank borrowings increased and excess reserves declined somewhat. SECURITY MARKETS Discount rate, range or level for all F.R. Banks. Weekly Treasury bill rates in mid-April averaged from average market yields for U.S. Govt, bonds maturing in 10 years or more and for 90-day Treasury bills. Latest figures: about 10 basis points lower to 25 basis points week ending Apr. 8. 433 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 □ APRIL 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 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: A 98 Number of banks and branches in operation on December 31,1971 A 108 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 Page Annually—Continued Issue Page Flow of funds.......................................... Mar. 1972 A-72—A-73.9 Banks and branches, number, by class and State...............................Apr. 1972 A-98—A-99 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 Insured commercial banks....................June 1971 A-94—A-95 Banking offices and deposits of group banks, Dec. 31,1970......... Aug. 1971 A-98 Member banks: Calendar year.....................................June 1971 A-94—A-103 Income ratios.......................................June 1971 A-104—A-109 Banking and monetary statistics: Operating ratios..................................July 1971 A-100—A-105 1971 ...................................................... Feb. 1972 A-100—A-101 Mar.1972 A-98—A-l 10 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 □ APRIL 1972 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Gold Drawing u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ assets 3 account stand­ Total out­ chase ing right agree­ ment Averages of daily figures 1939 Dec................................... 2,510 2,510 8 83 2,612 17,518 2,956 ................................... 2,219 2,219 5 19411 70Dec 2,404 22,759 3,239 1945 Dec................................... 23,708 23,708 381 652 24,744 20 047 4,322 1950—Dec................................... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 I960—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 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 62,719 62,381 338 319 2,671 896 66,691 10,732 400 7,235 63,371 63,153 218 148 3,047 1,103 67,747 10,732 400 7,291 64,714 64,368 346 330 2,704 1,076 68,926 10,448 400 7,357 64,642 64,574 68 453 2,690 979 68,834 10,332 400 7,419 66,001 J3u,l0y0.1................1...,.1..5...0.......... 71,052 10,36352,652 400349 7,437820 66,324 66,143 181 804 2,572 991 70,749 10,184 400 7,460 67,106 626, 977944 391020 71,550618 10,132 400 7,523 67,690 67,488 202 360 3,122 1,105 72,349 10,132 400 7,545 68,052 67,655 397 407 3,129 1,013 72,694 10.132 400 7,573 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 33 2,959 957 73,994 9,851 400 7,795 69,273 69,133 140 99 2,966 780 73,199 9,588 400 7,859 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 5........................... 70,658 69,517 1,141 57 4,260 1,078 76,258 10,132 400 7,626 12........................... 70,712 70,211 501 17 3,594 1,125 75,592 10,132 400 7,634 19........................... 71,130 70,560 570 14 3,353 1,181 75,833 10,132 400 7,649 70,561 12 3,024 1,228 74,902 400 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 14 3,020 574 74,000 9.588 400 7,811 68,622 68,622 67 3,447 662 72,863 9.588 400 7,818 8 ......................... 68 772 68,772 103 2 885 707 72,532 9 588 400 7,834 15........................... 69,110 68,813 297 13 2,932 749 72,901 9,588 400 7,848 69,095 69 095 115 3,274 797 73,348 9 588 400 7,868 29 v......................... 69,744 69,615 129 155 2,728 850 73,560 9,588 400 7,882 End of month 1972 Jan..................................... 70,202 6 70,202 15 1,884 1,280 73,456 10,132 400 7,759 Feb.................................... 68,425 6,7 68,425 6 2,715 656 71,865 9,588 400 7,824 70.754 6 70,065 689 255 3,094 878 75,124 9,588 400 7,889 Wednesday 1972 Jan. 5........................... 70,275 6 69,689 586 44 4,254 1,099 75,791 10,132 400 7,627 12........................... 70,518 6 70,361 157 17 3,103 1,179 74,951 10,132 400 7,644 19........................... 71,451 6 70,561 890 24 3,156 1,223 75,995 10,132 400 7,653 26........................... 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 2,749 1,311 74,353 10.132 400 7,765 9........................... 69,995 6 69,995 176 2,528 1,357 74,124 10.132 400 7,788 16........................... 71,928 6 70,623 1,305 28 2,953 611 75,663 9.588 400 7,802 23 ......................... 69,619 6 69,619 18 2,610 641 72,951 9.588 400 7,813 68 872 * 68,872 59 2,794 707 72,495 9,588 400 7,820 8p ...................... 68 772 6 68,772 703 2,718 749 73,005 9,588 400 7,842 15p ....................... 68,802 t> 68 802 28 3,626 790 73,313 9.588 400 7,855 22p ...................... 69,395 6 69,395 732 3,047 843 74,086 9.588 400 7,877 29 ^......................... 70,689 o 69,785 904 1,030 2,620 897 75,405 9.588 400 7,889 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ BANK RESERVES AND RELATED ITEMS A 5 ERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds eposits, other n member bank Member bank reserves, Other reserves Period or date th F.R. Banks Other F.R. F.R. lia­ ac­ bilities counts3 and With Cur­ Other2 capital3 F.R. re a n n c d y Total Banks coin* Averages of daily figures 7,, 739 248 11,473 11,473 .1939—Dec. 10 1,531 292 12,812 12,812 . 1941—Dec. 28, 1,247 493 16,027 16,027 . 1945—Dec. 27, 920 353 739 17,391 17,391 . 1950—Dec. 33, 495 1,029 16,688 2,595 19,283 . 1960—Dec. 42, 231 389 18,747 3,972 22,719 . 1965—Dec. 47, 451 -204 20,753 4,507 25,260 .1967—Dec. 50, 458 -1,105 22,484 4,737 27,221 .1968—Dec. 53, 458 2,192 23,071 4,960 28,031 .1969—Dec. 57, 735 2,265 23,925 5,340 29,265 .1970—Dec. 56, 718 2.227 24,601 5,085 29,686 .1971—Mar. 56, 752 2,194 24,814 5,071 29,885 ..............Apr. 57, 690 2,244 25,251 5,168 30,419 ..............May 57, 698 2.227 24,793 5,230 30,023 ..............June 58, 714 2,251 25,231 5,316 30,547 ................July 58, 712 2,298 25,098 5,357 30,455 ..............Aug. 59, 712 2,296 25,365 5,437 30,802 ..............Sept. 59, 736 2,327 25,463 5,397 30,860 ................Oct. 59, 714 2,320 25,500 5,453 30,953 .............Nov. 61, 728 2,287 25,653 5,676 31,329 ..............Dec. 60, 750 2,208 26,955 5,910 32,865 .1972—Jan. 59 683 2,273 26,374 5,548 31,922 ...........Feb. 60 597 2,247 26,573 5,365 31,938 ...........Mar.9 Week ending— 6600;. 732 2,328 25.783 5,492 31,275 .1971—Dec. 1 6i; 717 2,398 25,151 5,592 30,743 710 2,219 25,246 5,907 31,153 .15 61, 736 2,234 25,785 5,366 31,151 .22 61, 708 2,301 26,081 5,843 31,924 .29 61 862 2,152 27,068 5,746 32,814 .1972—Jan. 5 6o; 727 2,155 26.784 6,009 32,793 .......................12 6o; 737 2,210 27.694 5,971 33,665 ..........................19 59; 724 2,259 26.695 5,897 32,592 .........................26 59. 755 2,318 26,576 5,859 32,435 .Feb. 2 59: 764 2,382 26,030 5,862 31,892 ............9 59; 733 2,209 26,593 5,664 32,257 ...........16 59 592 2,216 26,702 5,121 31,823 ............23 59 590 2,269 26,187 427 31,614 . Mar. 1 59 587 2,337 26,012 453 31,465 60 596 2,169 26,448 660 32,108 . 15 60 617 2,191 26,581 021 31,602 .22p 60 576 2,263 26,947 306 32,253 .29p End of month 59. 814 2,344 25,650 5,860 31,510 .1972—Jan. 6509;; 677 2,294 25,525 5,427 30,952 ...........Feb. 647 2,339 27,746 5,397 33,143 ...........Mar.p Wednesday 60, 729 2,108 26,279 5,743 32,022 .1972—Jan. 5 60, 707 2,173 26,858 6,016 32,874 .........................12 60, 778 2,234 27,992 5,974 33,966 .........................19 59, 716 2,279 26,848 5,895 32,743 .........................26 59, 779 2,351 26,116 5,860 31,976 .Feb. 2 5599;. 739 2,405 26,022 5,865 31,887 ..............9 612 2,198 27,745 5,669 33.414 ............16 59, 590 2,236 26,331 5,122 31,453 ............23 59. 575 2,299 25,996 5,419 31.415 .. .M..a.r... .81*p 60; 548 2,360 26,099 5,441 31,540 6600;; 620 2,146 26,581 5,663 32,244 ............15p 60; 608 2,215 26,912 5,021 31,933 ...........22p 589 2,302 28,418 5,306 33,724 ............29 p 11 held under repurchase agreements as on Wed. and end-of-month dates, see tables on F.R. Banks on following f m D< . issues bought outright as of Sept. 29, pages. See also note 2. 21 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 93611 weekly averages. Beginning Sept. 12, 1968, amount is based on closeher F.R. assets” and “Other F.R. of-business figures for reserve period 2 weeks previous to report date. abi! n separately; formerly, they were 6 Includes securities loaned—fully secured by U.S. Govt, securities Digitize e4t d t1e for FRASER c ‘ e O p t t h a e n r c e F s, . R u . n ti a l c A co u u g n . t 2 s 1 .” , 1959, when ple 7 d g R e e d fl e w c i t t s h s F e . c R u . r it B ie a s n k s s o . ld, and scheduled to be bought back, under http://fraser.stlouisfed.org/ tinued. For holdings of acceptances matched sale/purchase transactions. Federal Reserve Bank of St. Louis

SERVES AND RELATED ITEMS □ APRIL 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Reserves Bor­ Reserves Bor­ Reserves row­ Free row­ Free ings re­ ings re­ qu R ir e e ­ d 1 Excess F a .R t . serves T h o e t l a d l qu R ir e e ­ d 1 Excess F a .R t . serves T h o e t l a d l qu R ir e e ­ d 1 Banks Banks 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 3 2 1 2 8 , , 2 5 6 2 7 7 4 7 5 5 2 6 45 8 4 7 6 - 6 2 9 4 3 , , 3 6 0 8 1 7 4 3 , , 2 6 6 58 0 4 2 1 9 11 1 1 9 -7 1 0 0 1,1 9 4 5 3 8 1,1 9 2 5 8 3 --84 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 -5 26,766 455 765 -310 5,157 5,057 100 230 -130 1 ,199 1,184 70 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1 ,285 1 ,267 -9 28,993 272 321 -49 5,623 5,589 34 25 9 1,329 1,322 3 29,487 199 319 -120 5,664 5,703 -39 51 -90 1,375 1,384 25 29,745 140 148 -8 5,690 5,696 -6 15 -21 1,392 1,385 23 30,107 312 330 -18 5,837 5,791 46 113 -67 1,436 1,421 29,892 131 453 -322 5,637 5,674 -37 90 -127 1,387 1,405 39 30,385 162 820 -658 5,729 5,754 -25 86 -111 1,407 1,408 29 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 30,596 206 501 -295 5,683 5,674 9 38 -29 1,417 1,423 io 2 30,653 207 360 -153 5,678 5,667 11 67 -56 1,425 1,408 30,690 263 407 -144 5,644 5,608 36 107 -71 1 ,408 1 ,400 14 31 ,164 165 107 58 5,774 5,749 25 35 c-10 1,426 1,425 -7 32,692 173 20 153 6,066 6,058 8 8 1,503 1,512 -9 31,798 124 33 91 5,775 5,807 -32 5 -37 1,446 1 ,442 4 31,689 249 99 150 5,819 5,761 58 71 -13 1,432 1,443 15 29.372 170 258 -88 5,583 5,568 15 15 1,387 1,402 15 29,322 82 421 -339 5,595 5,657 -62 120 -182 1,355 1,367 56 29,690 265 290 -25 5,853 5,830 23 46 -23 1,447 1,419 28 29,414 68 333 -265 5,664 5,669 -5 59 -64 1,354 1,365 25 29.564 376 257 119 5,847 5,714 133 133 1,390 1,379 -3 30,460 434 764 -330 5,781 5,677 104 43 61 1,447 1,434 13 30,303 27 593 -566 5,625 5,699 -74 -74 1,419 1,431 •12 30,381 224 1,179 -955 5,816 5,748 68 342 -274 1,416 1,412 ■27 30,020 91 771 -680 5,456 5,522 -66 267 -333 1,387 1,383 4 -2 30,195 324 706 -382 5,679 5,561 118 116 2 1,398 1,399 1 30,650 205 765 -560 5,719 5,759 -40 -40 1,428 1,423 30,604 247 457 -210 5,762 5,690 72 72 1,441 1,448 -10 30,421 -61 329 -390 5,469 5,578 -109 86 -195 1,410 1,413 -12 30,730 343 424 -81 5,825 5,689 136 36 100 1,410 1,412 -2 30,779 214 309 -95 5,644 5,671 -27 29 -56 1,441 1,422 19 30,653 49 449 -400 5,668 5,693 -25 100 -125 1,413 1,432 •26 30,861 210 332 -122 5,808 5,818 -10 35 -45 1,429 1,421 4 30.373 51 413 -362 5,513 5,508 5 133 -128 1,353 1,364 •65 30.565 396 216 180 5,681 5,626 55 55 1,435 1,400 35 30,570 10 122 -112 5,589 5,597 -8 21 -29 1,376 1,406 •30 30,984 188 287 -99 5,705 5,761 -56 64 -120 1,447 1,433 14 30,572 144 538 -394 5,589 5,520 69 150 -81 1,358 1,374 •63 30,685 590 705 -115 5,701 5,538 163 222 -59 1,438 1,386 5 30,600 143 59 84 5,671 5,604 67 67 1,356 1,366 10 30,949 204 25 179 5,699 5,757 -58 -58 1 ,479 1,451 28 31,180 -29 141 -170 5,747 5,764 -17 79 -96 1 ,371 1,414 •57 31,610 314 216 98 5,793 5,799 -6 76 -82 1,511 1,445 45 -6 32,502 312 57 255 6,200 6,120 80 80 1,520 1 ,526 32,688 105 17 88 6,055 6,141 -86 -86 1,569 1,549 20 33,447 218 14 204 6,369 6,267 102 102 1,526 1,563 •37 32,400 192 12 180 5,766 5,848 -82 -82 1,475 1,459 16 32,190 245 16 229 5,936 5,880 56 56 1,460 1,451 9 50 42 8 5,733 5,825 -92 22 -114 1,439 1,445 -6 311 18 293 6,078 5,895 183 183 1,450 1,466 16 31,693 130 14 116 5,686 5,789 -103 -103 1,453 1 ,427 26 31,532 82 67 15 5,643 5,679 -36 -36 1,411 1,425 14 31,289 176 103 73 5,649 5,658 -9 99 -108 1,435 1,419 16 31,715 393 13 380 5,982 5,796 186 186 1,473 1,479 -6 31,676 -74 115 -189 5,585 5,725 -140 95 -235 1,424 1,432 12 31,943 310 155 155 5,908 5,829 79 94 -15 1,440 1,436 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) reserve city banks Country banks Reserves Period Borrow­ Borrow­ ings at Free ings at Free F.R. reserves F.R. reserves Excess Banks T h o e t l a d l' Required i Excess Banks 3 1,188 1,188 1,568 897 671 3 668 ...1939—Dec. 4 1,303 I 1,302 2,210 1,406 804 4 800 ...1941—Dec. 6 418 96 322 4,576 3,566 1,011 46 965 . ..1945—Dec. 6 232 50 182 4,761 4,099 663 29 634 ...1950—Dec. 7 9 100 20 80 6,689 6,066 623 40 583 ...I960—Dec. 10 67 228 -161 8,219 7,889 330 92 238 ...1965—Dec. 10 50 105 -55 8,901 8,634 267 80 187 ...1967—Dec. 90 270 -180 9,875 9,625 250 180 70 . ..1968—Dec. i 1 o 1 ; ; 42 6 2 4 6 7 4 9 - -4 2 7 2 3 2 1 1 0 0 , , 7 3 6 3 5 5 1 1 0 0 , , 5 1 7 5 6 8 1 18 7 9 7 32 2 1 8 -1 1 4 6 4 1 . . . . . 1 .1 9 9 6 7 9 0 — — D D e e c c . . n. u; 81 236 -155 10,915 10,749 166 16 150 .. .1971—Mar. -35 119 -154 11,049 10,875 174 10 164 .....................Apr. i i i i , . 91 136 -45 11,223 11,063 160 68 92 ....................May n; 10 8 4 1 4 8 1 1 - -4 1 3 7 1 3 1 1 1 1 , , 4 2 7 5 2 6 1 1 1 1 , ,0 2 7 9 8 4 1 1 7 7 8 8 2 1 6 61 5 -8 1 7 7 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. J J u u n ly e h12., -12 425 -437 11,474 11,324 150 208 -58 ...................Aug. 38 318 -280 11,587 11,422 165 141 24 ..................Sept. 12,; 19 163 -144 11,688 11,528 160 115 45 ....................Oct. 12 65 177 -112 11,795 11,641 154 101 53 ..................Nov. 12, -35 22 -57 11,931 11 ,757 174 42 132 ..................Dec. 12, , 13 13 12,342 12,181 161 20 141 ....1972—Jan. 12 5 12 -7 12,123 11,976 147 16 131 ...................Feb. 12, 50 9 41 12,104 11,951 153 15 138 ...................Mar.p , Week ending— 11 -22 242 -264 10,939 10,747 192 16 176 .1971 _Mar. 11, -35 244 -279 10,917 10,726 191 13 178 1111,, -4 5 6 0 2 23 4 1 5 - -1 2 8 9 1 1 1 1 0 0 , , 8 8 8 9 1 7 1 1 0 0 , , 7 7 1 6 7 7 1 1 6 3 4 0 1 1 3 5 1 1 5 1 1 5 11, 58 221 -163 10,951 10,777 174 22 152 12, 11, - 1 4 2 2 1 4 3 2 7 9 5 - - 3 4 0 1 8 7 1 1 1 1 , , 4 57 3 2 0 1 11 1 , , 2 3 7 7 5 6 1 15 9 5 6 2 21 9 8 2 - - 9 6 6 3 • Aug. 114 11, -18 545 -563 11,490 11,320 170 261 -91 ............18 11, 10 372 -362 11,470 11,327 143 132 11 ............25 11, 39 404 -365 11,507 11,339 168 185 -17 ..S..e.p.t... 81 1122,, 44 588 -544 11,526 11,330 196 173 23 42 324 -282 11,508 11,368 140 130 10 ............15 1121,, -76 146 -222 11,544 11,417 127 88 39 ...........22 55 231 -176 11,703 11,549 154 157 -3 ...........29 12, 12, 48 118 -70 11,743 11,569 174 162 12 .Oct. 6 -81 234 -315 11,610 11,436 174 108 66 ...........13 12, 73 194 -121 11,65i 11,512 139 99 40 .....20 11, -57 129 -186 11,682 11,568 114 97 17 ...........27 12, 97 105 -8 11,772 11,563 209 111 98 .Nov. 3 11, -83 47 -130 11,648 11,517 131 54 77 .........10 12, 33 174 -141 11,848 11,651 197 49 148 ...........17 11, -6 201 -207 11,802 11,705 97 140 -43 ...........24 12, 156 282 -126 11,955 11,736 219 154 65 Dec. 1 11, -60 15 -75 11,784 11,638 146 44 102 12, 57 57 11,819 11,642 177 25 152 ..1252 12, -74 24 -98 11,853 11 ,748 105 24 81 12, 68 58 10 12,099 11,913 186 61 125 .29 •2, 52 52 12,223 12,037 186 57 129 .1972—Jan. 5 12, -29 -29 12,271 12,071 200 17 183 .12 13, -18 -18 12,461 12 290 171 14 157 .19 12, 95 95 12,419 12,256 163 12 151 .26 2 12, -2 -2 12,353 12,171 182 16 166 .Feb. 12, 10 10 12,143 12,005 138 20 118 . 9 12, -34 I -35 12,127 11,949 178 17 161 .16 12, 46 46 12,101 11,940 161 14 147 .23 12, -28 57 -85 12,096 11 ,936 160 10 150 .. M...a.r.. 81 12, 12 12 11,985 11,828 157 4 153 12, 51 2 49 12,048 11,886 162 11 151 ...........15 12, -15 9 -24 12,069 11,980 89 7 82 ...........22p 12, 79 21 58 12,215 12,067 148 26 j 122 ...........29p 1 I 1968, amount is based on close-of-business fig- Total reserves held: Based on figures at close of business through Nov. 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. aily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. 1ar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. hat fall within the month. Beginning with Jan. ited except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ APRIL 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 Less— Net- Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N d a n t n e e e d r t r k s a ­ l S d u e r o f p i r c lu it s r P e e q a r u v o c i g f r e . e n d t c P ha u s r e - s , Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c o P u h f y a u n s i r n e e ­ s g t s o b S e a f a l n l l n i e k n e s g s t d L ea o t l a o e n r s s3 de f r B i a r o n o o l w g e m r s r ­ ­ s4 lo N a e n t s trans. reserves banks Total—46 banks 1972—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 Mar. 1......... -11 6 6,335 -6,352 48.1 11,347 5,012 3,966 7,381 1,047 2,515 212 2,303 8......... -1 95 7,282 -7,377 56.0 11,925 4,644 4,003 7,922 7,282 1,897 200 -1,697 15......... 227 7,162 -6,935 51.6 12,237 5,075 4,370 7,867 705 1,809 259 1,550 22......... -55 99 6,959 -7,113 53.5 12,050 5,091 4,162 7,888 929 1,995 197 1,799 29......... 67 117 5,722 -5,772 42.9 11,049 5,327 4,032 7,017 1,295 1,676 363 1,314 8 in New York City 1972 Feb. 2......... 53 2 214 -2,160 40.6 3,148 934 934 2,214 1 397 30 1,366 9......... 47 22 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 -32 3,510 -3,543 69.0 3,916 406 406 3,510 1,714 47 1,668 8......... -10 95 3,472 -3,577 69.4 4,058 586 585 3,472 3,472 1,431 40 -1,391 15......... 167 3,279 -3,112 59.0 4,137 858 857 3,279 1,400 74 1,326 22......... -32 91 3,279 -3,403 65.4 4,037 757 757 3,279 1,575 46 1,529 29......... 54 91 2,588 -2,625 49.5 3.365 777 777 2,588 1,279 84 1,194 38 outside New York City 1972 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 1 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 Mar. 1......... 21 6 2,825 -2,810 34.8 7,431 4,606 3,560 3,871 1.047 800 165 636 8......... 9 3,810 -3,800 47.4 7,868 4,058 3,417 4,450 3,809 466 160 -306 15......... 60 3.883 -3,823 46.7 8,101 4,218 3,513 4.588 705 409 186 224 22......... -22 8 3,680 -3,710 45.9 8,014 4,334 3,405 4,609 929 420 151 270 29......... 14 27 3,133 -3.147 38.7 7,684 4,550 3,255 4,428 1,295 398 278 120 5 in City of Chicago 1972 Feb. 2......... 14 1 ,390 -1,376 104.3 2,078 688 638 1,441 51 110 110 1 510 -1 508 114.8 2,132 622 585 1,547 37 95 95 16. 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 10 1 386 -1,396 107.7 2,167 781 645 1.523 137 240 240 8 8 - 1 693 -1,684 130.6 2,384 692 642 1,742 1,692 274 -274 15 6 1 .712 -1,706 126.5 2,357 645 590 1,767 55 250 250 22 4 1 666 — 1 674 128.5 2,380 715 638 1,742 76 228 228 29 14 1 623 -1,642 125.8 2 359 736 616 1,744 120 220 220 33 others 1972 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 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 Mar. 1......... 31 6 1,439 -1,414 20.9 5,263 3,825 2.915 2,348 910 560 165 395 8......... 1 2,117 -2,116 31.4 5,484 3,366 2,775 2,708 2,117 192 160 -32 15......... 54 2.171 -2.118 31.0 5,744 3.573 2,923 2,821 650 159 186 -27 22......... -18 4 2.014 -2.036 30.0 5,633 3,619 2,767 2,867 852 192 151 41 29 18 12 1.510 -1,504 22.0 5,324 3,814 2,640 2,685 1,175 178 278 -100 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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)2 last par. Sec. 133 Federal Reserve Bank M R 1 a a t 9 r e . 7 2 o 31 n , Ef d fe a c t t e ive Pre ra v t i e ous M Ra 1 a t 9 r e . 7 2 o 31 n , Ef d fe a c t t e ive Pre ra v t i e ous M Ra 1 a t 9 r e . 7 2 o 31 n , Eff d e a c t t e ive Pre r v at io e us Boston..................................................... 4 Vi Dec. 13, 1971 434 5 Dec. 13, 1971 5i4 6 Vi Dec. 13, 1971 634 New York.............................................. 4Vi Dec. 17, 1971 434 5 Dec. 17, 1971 514 6Vi Dec. 17, 1971 63/4 Philadelphia.......................................... 4 Vi Dec. 17, 1971 434 5 Dec. 17, 1971 514 61/2 Dec. 17, 1971 634 Cleveland................................................ 4 Vi Dec. 17, 1971 434 5 Dec. 17, 1971 514 6*4 Dec. 17, 1971 634 Richmond............................................... 4*4 Dec. 24, 1971 434 5 Dec. 24, 1971 514 61/2 Dec. 24, 1971 634 Atlanta.................................................... 4Vi Dec. 23, 1971 434 5 Dec. 23, 1971 514 6 Vi Dec. 23, 1971 634 Chicago................................................... 4 Vi Dec. 17, 1971 434 5 Dec. 17, 1971 514 6 Vi Dec. 17, 1971 634 St. Louis................................................. 4 Vi Dec. 13, 1971 434 5 Dec. 13, 1971 514 6 Vi Dec. 13, 1971 634 Minneapolis........................................... 4 Vi Dec. 23, 1971 434 5 Dec. 23, 1971 514 6 Vi Dec. 23, 1971 634 Kansas City........................................... 4 Vi Dec. 13, 1971 434 5 Dec. 13, 1971 514 6 Vi Dec. 13, 1971 634 Dallas...................................................... 4 Vi Dec. 24, 1971 43/4 5 Dec. 24, 1971 514 61/2 Dec. 24, 1971 634 San Francisco....................................... 4*4 Dec. 13, 1971 434 5 Dec. 13, 1971 51/4 61/2 Dec. 13, 1971 634 1 Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and of agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully over 6 months and 9 months, respectively. guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 1 Vt 1959—Mar. 6 2Vi— 3 3 1969 Apr. 4....................... 5 Vi-6 6 1955—Apr. 14.............. 11/2-1 3/4 ivi May 2 1 9 6 . 3 3 -31/2 3 3 Vi 8....................... 6 6 May 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . lfciy- 4 1 % 1 1 * * 4 4 J S u e n p e t. 1 11 2 31/32V-4i 4 3 Vi 1970 Nov. 11....................... 534-6 6 Aug. 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3V4 4--2 2 *V4 4 2 iy 4 18 31/ 4 2-4 4 1 1 3 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 5 4 3 - 4 6 5 53 % 4 S N e o p v t . . 2 1 1 1 9 3 8 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 21 / 2 4 2 1 - - V ~ 2 /24 2 i V V 1/2 4 4 2 2 2 2 2 V V V V 4 a i i 1960—J S A u e u n p g e t . . 1 1 1 9 4 2 3 0 , , , 3 3 V 3 3 i - - % 4 31 /2 4 3 3 3 3 V V i i Dec. 1 4 1 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5V 1/ 5 i 2 1 - - 5 / 5 2 3 3 /4 4 5 5 5 3 i V / 4 i i 1956— A A u p g r. . 2 2 1 0 4 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 223* ^ ^4 - -- 3 33 2 2 3 3 3 4 4 1963—July 2 1 6 7 , , 3 31-/32fc 3 3 V V i i 1971 Jan. 1 1 8 5 9 . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 14 5 - 1 - 5 5 4 1 1 / 4 2 5 5 5 1 1 1 4 4 4 31.............. 3 3 1964—Nov. 2 3 4 0 . , 3 4 Vi-4 4 4 2 2 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 -514 5 5 1957—Aug. 9.............. 3 -3 Vi 3 Feb. 13....................... 434-5 5 N D o ec v . . 2 1 2 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 - V 3 i Vi 3 3 3 Vi 1965—Dec. 1 6 3. 4 4* -4 4 Vi 44* V6i July 1 1 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 3 ^ 4 -5 4 5 34 2*4-3 1967—Apr. 7 4 -4 Vi 4 23....................... 5 5 1958—Jan. 22.............. 234-3 2334 14. 4 4 Nov. 11...................... 434-5 5 Mar. 2 2 1 7 1 3 . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 ^ 2 4 - V - 2 3 a 34 2 2 2 1 1 * / / 4 4 4 1968— N M o a v r . . 2 2 1 0 7 5 , 4 4 V 4 i 1 - - 4 / 5 2 1/2 4 4 4 * V V 4 i i Dec. 2 1 1 4 3 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 3 ^ 4 4 - * 4 4 34 4 4 4 3 3 V 4 4 i A M p a r y . 1 9 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1^ 1 - * 2 4 14 1 1 * % 4 Apr. 2 19 2 . 5 5 -5 Vi 5 5 Vi In effect Mar. 31, 1972......... 4i/2 4 Vi S A e u p g t . . 1 1 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 V* a 2 4--22 2 1% Aug. 2 1 6 6 5 * 5 4 V -5 i Vi 5 551 V V/4 i i Oct. 2 2 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 -2% 2 2 Dec. 3 1 0 8 51451-5/41 /2 51/2 Nov. 7.............. 2% 21/2 20, 5 Vi 5 Vi 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): 195S—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, 1960—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^t, 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; Mar. 10,3.50; Mar. 14,3.75; Mar. 29,4.00. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ APRIL 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 r b e e c s a n i e n t t r y k r v a s e l b s c R a e i n r t e v y k ­ e s C ba o tr n u y k n s ­ b cl a a ( o n a s k l f s l e s s ) Effective date 1 $ U 5 n c m d it e i y l r ­ ba $ n O 5 k v m s e i r l ­ $ U 5 n m de i b l r a ­ nk $ s O 5 v m e i r l ­ d S e in i p a t g s v o s ­ s­ $ U 5 ti n m m d e e il r ­ d ep $ O 5 o s v m it e s i r l ­ lion lion lion lion lion lion In effect Dec. 31, 1949......... 22 18 12 5 1966—July 14,21 , , « 16% « 12 64 64 5 6 1951—Jan. 11,16.................. 23 19 13 6 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 5 July 29, Aug. 1.... 20 18 12 1968—Jan. 11,18......... 16% 17 12 12% 1958—Feb. 27, Mar. 1.... 19^/2 1 m 11 Vi Mar. 20, Apr. 1.... 19 17 11 1969——Apr. 17................ 17 m/2 12% 13 Apr. 17......................... 18% 18 16i/2 1970—Oct. 1.................... 5 1960—Sept. 1......................... 171/2 Nov. 24......................... 12 In effect Mar. 31, 1972. 17 17% 12% 13 3 3 5 I6I/2 1962—July 28......................... (3) Present legal Oct. 25, Nov. 1.... 4 requirement: 10 7 3 3 3 Maximum.................... 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central rowings above a specified base from foreign banks by domestic offices reserve or reserve city banks and the second to the change at country of a member bank. For details concerning these requirements, see Regula­ banks. For changes prior to 1950 see Board’s Annual Reports. tions D and M and appropriate supplements and amendments thereto. 2 Demand deposits subject to reserve requirements are gross demand 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation deposits minus cash items in process of collection and demand balances club accounts became subject to same requirements as savings deposits. due from domestic banks. 6 See preceding columns for earliest effective date of this rate. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. Note.—All required reserves were held on deposit with F.R. Banks 4 Since Oct. 16, 1969, member banks have been required under Regula­ June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member tion M to maintain reserves against balances above a specified base due banks were allowed to count part of their currency and coin as reserves; from domestic offices to their foreign branches. Effective Jan. 7, 1971, the effective Nov. 24, 1960, they were allowed to count all as reserves. For applicable reserve percentage was increased from the original 10 per cent further details, see Board’s Annual Reports. to 20 percent. Regulation D imposes a similar reserve requirement on bor­ MARGIN REQUIREMENTS (Per cent of market value) For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. ?() 17050 75 1946—Jan. 21 1947—Jan. 31 100 1947—Feb. 1 1949—Mar. 79, 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. ?? 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 ?7 90 90 1960—July 28 1962—July 9 70 70 1962—July 10 1963—Nov. 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. A 65 50 65 Effective Dec. 6, 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 percent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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................ 12 months or more. . 4 Other time deposits:2 Less than 12 months. 3% Multiple maturity:3 4% 30-89 days............. 4 90 days-1 year... 5 1 year to 2 years.. 5 5% 2 years and over.. SVa Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 6 1 2 m m o o n n th th s s t o o r 1 2 m m or o e n . t . h . s . 2 4 3 % % 4% 2 1 y y e e a a r r s t o an 2 d y o e v ar e s r . . . . 5% 5 5V % a 9 L 0 e ( s d 3 s a 0 t y - h 8 s a 9 n t o d 9 a 6 0 y s m d ) a o y n s t . h ... s .. . .. . .. . . 1 4 $1 9 6 3 0 0 0 0 0 - , - - 0 1 8 5 0 7 9 9 0 9 d d a d a a n y a y d y s s . . s o . . . . . . . v . . . . . . . e . . . . . . r . . . . . : . . . . . . . 5% 5 5 6 % % 6 ( ( V 4 4 ) ) 4 1 1 8 y 0 e d a a r y o s r t m o 1 o r y e e . a . r . . Wa 7 VA 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member banks are estab­ Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, lished by the Board of Governors under provisions of Regulation Q; p. 167. however, a member bank may not pay a rate in excess of the maximum 3 Multiple-maturity time deposits include deposits that are automati­ rate payable by State banks or trust companies on like deposits under cally renewable at maturity without action by the depositor and deposits the laws of the State in which the member bank is located. Beginning that are payable after written notice of withdrawal. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6*4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6% 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 January 26, 1972 Four weeks ending Feb. 23, 1972 Gross demand—Total... 203,930 44,766 8,246 72,179 78,739 Gross demand—Total___ 196,827 44,590 7,969 68,843 75,425 Interbank......................... 27,971 12,937 1,516 10,121 3,396 Interbank......................... 28,058 14,048 1,451 9,430 3,130 U.S. Govt........................ 5,904 984 250 2,287 2,383 U.S. Govt......................... 6,373 1,055 290 2,535 2,493 Other................................. 170,055 30,845 6,479 59,772 72,960 Other.................................. 162,396 29,487 6,228 56,878 69,803 Net demand 1.................... 154,107 27,350 6,488 54,685 65,584 Net demand 1...................... 147,940 26,204 6,235 52,589 62,912 Time...................................... 213,086 25,514 7,658 78,360 101,555 Time........................................ 215,386 25,404 7,654 78,950 103,378 Demand balances due Demand balances due from domestic banks. . 11,994 1,553 148 2,803 7,491 from domestic banks... 12,502 2,635 160 2,587 7,121 Currency and coin............ 5,906 480 129 1,875 3,422 Currency and coin............. 5,627 454 105 1,758 3,310 Balances with F.R. Balances with F.R. Banks................................ 27,060 5,618 1,394 11,128 8,922 Banks................................. 26,475 5,404 1,346 10,854 8,871 Total reserves held............ 32,966 6,098 1,523 13,003 12,344 Total reserves held............. 32,102 5,858 1,451 12,612 12,181 Required........................... 32,759 6,094 1,524 12,978 12,164 Required............................ 31,918 5,847 1,447 12,607 12,016 Excess............................... 207 4 -1 25 180 Excess................................ 184 11 4 5 165 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 □ APRIL 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 Mar. 29 Mar. 22 Mar. 15 Mar. 8 Mar. 1 Mar. 31 Feb. 29 Mar. 31 Assets 9.475 9,475 9.475 9.475 9,475 9,475 9,475 10,464 400 400 400 400 400 400 400 400 323 324 322 322 325 327 326 268 Loans: t 1 ,030 732 28 703 59 255 6 391 Acceptances: 79 69 67 63 63 82 63 53 90 61 85 Federal agency obligations: 810 810 810 727 727 810 111 8 16 185 U.S. Govt, securities: Bought outright: Bills ............................................................................... 29,396 29,006 28,517 28,646 28,746 29,676 28,299 25,638 36,147 36,147 36,076 36,034 36,034 36,147 36,034 34,031 3,432 3,432 3,399 3,365 3,365 3,432 3,365 3,172 i 68,975 i 68,585 i 67.992 i 68,045 i 68,145 i 69,255 1,267,698 i 62,841 896 673 1,319 69,871 68,585 67,992 68,045 68,145 69,928 67,698 64,160 p 7 1 1 0 , , 8 1 8 3 8 4 p 7 1 0 1 , , 1 3 9 1 6 0 p 6 1 8 2 , , 8 6 9 85 7 p 6 1 9 0 , , 5 7 3 1 8 6 p 6 1 8 1 , , 9 2 9 0 4 4 p 7 9 1 , , 9 1 0 5 5 2 6 1 8 0. , 4 4 3 9 1 4 6 9 4 , , 8 8 9 7 2 4 159 159 159 157 154 159 154 134 Other assets: 17 17 17 17 17 17 17 33 159 721 667 614 575 536 702 485 671 p 93,117 p 92,548 p 92,569 p 91,200 p 91,105 p 92,137 89,782 86,895 Liabilities 53,172 53,061 53,128 52,964 52,560 53,110 52,549 49,513 Deposits: p p p p p p 28,418 26,912 26,581 26,099 25,996 27,746 25,525 25,932 917 1,314 851 1,081 1,128 1,293 884 858 205 175 184 150 137 191 137 201 Other: 159 589 608 620 548 575 715 677 635 p 30,129 p 29,009 p 28,236 p 27,878 p 27,836 p 29,945 27,223 27,785 7,514 8,263 9,059 7,998 8,410 6,743 7,716 7,342 534 513 505 524 525 555 521 546 p p p p p 91,349 90,846 90,928 p 89,364 89,331 90,353 88,009 85,186 Capital accounts 761 756 756 756 755 761 753 717 742 742 742 742 742 742 742 702 265 204 143 338 277 281 278 290 p 93,117 p 92,548 p 92,569 p 91,200 p 91,105 p 92,137 89,782 86,895 Contingent liability on acceptances purchased for 264 262 263 263 266 263 267 255 Marketable U.S. Govt, securities held in custody for 30,763 30,796 30,742 29,532 29,336 30,758 29,317 15,130 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)... 56,934 56,944 56,889 56,794 56,774 57,027 56,759 52,996 Collateral held against notes outstanding: Gold certificate account............................... 2,445 2,445 2,445 2,445 2,445 2,445 2,445 3,220 U.S. Govt, securities...................................... 56,075 56,075 56,025 56,025 56,025 56,075 56,025 51,665 Total collateral. 58,520 58,520 58,470 58,470 58,470 58,520 58,470 54,885 1 See note 6 on p. A-5. 3 See note 1(b) to table at top of p. A-77. 2 See note 7 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1972 (In millions of dollars) Item Total Boston Y N o ew rk P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a i a t n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account........................ 9,475 534 1,139 489 880 917 499 1,514 410 160 362 441 2,130 Special Drawing Rights certif. acct___ 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks..................... 1,230 146 260 114 67 85 265 59 23 18 35 51 107 Other cash................................................ 327 10 25 10 40 40 36 46 20 10 34 15 41 Loans: Secured by U.S. Govt, and agency obligations........................................ 53 48 * 4 1 Other..................................................... 202 200 2 Acceptances: Bought outright.................................. 82 82 Held under repurchase agreements.. 61 61 Federal agency obligations: Bought outright................................... 810 37 208 42 62 61 43 133 30 16 32 37 109 Held under repurchase agreements.. 16 16 U.S. Govt, securities: Bought outright.................................. 169,255 3,207 17,745 3,620 5,286 5,190 3,656 11,390 2,552 1,365 2,781 3,165 9,298 Held under repurchase agreements.. 673 673 Total loans and securities..................... 71,152 3,244 19,033 3,662 5,348 5,251 3,701 11,523 2,582 1,381 2,817 3,203 9,407 Cash items in process of collection... 13,264 679 2,534 653 883 931 1,497 2,143 734 503 849 861 997 Bank premises.......................................... 159 2 8 3 26 13 16 17 15 22 17 12 8 Other assets: Denominated in foreign currencies.. 17 1 2 5 1 1 1 1 2 1 * 1 1 2 All other............................................... 702 57 173 40 49 50 34 107 23 16 27 30 96 Total assets.............................................. 96,726 4,696 23,270 4,995 7,327 7,324 6,071 15,481 3,823 2,117 4,157 4,628 12,837 Liabilities F.R. notes................................................. 54,340 2,882 13,357 3,177 4,384 4,838 2,721 9,405 2,123 925 2,048 2,097 6,383 Deposits: Member bank reserves....................... 27,746 994 6,800 1,163 1,807 1,447 1,805 3,839 974 684 1,222 1,727 5,284 U.S. Treasurer—General account.. 1,293 75 353 26 94 138 123 61 44 56 78 66 179 Foreign.................................................. 191 8 3 65 9 15 9 12 25 6 4 7 9 22 Other: All other........................................... 1,174 40 647 2 62 61 54 71 44 40 54 41 58 Total deposits.......................................... 30,404 1,117 7,865 1,200 1,978 1,655 1,994 3,996 1,068 784 1,361 1,843 5,543 Deferred availability cash items.......... 9,643 592 1,439 498 762 691 1,209 1,720 553 356 651 568 604 Other liabilities and t.~crued dividends 555 27 150 28 43 41 31 82 20 13 22 25 73 Total liabilities........................................ 94,942 4,618 22,811 4,903 7,167 7,225 5,955 15,203 3,764 2,078 4,082 4,533 12,603 Capital accounts Capital paid in........................................ 761 33 196 39 69 40 52 118 25 17 32 42 98 Surplus....................................................... 742 34 193 38 68 38 50 111 25 17 32 41 95 Other capital accounts........................... 281 11 70 15 23 21 14 49 9 5 11 12 41 Total liabilities and capital accounts.. 96,726 4,696 23,270 4,995 7,327 7,324 6,071 15,481 3,823 2,117 4,157 4,628 12,837 Contingent liability on acceptances purchased for foreign correspond­ ents......................................................... 263 12 4 68 14 24 14 18 39 9 6 11 14 34 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)................................................. 57,027 3,056 14,158 3,294 4,601 4,985 2,980 9,695 2,195 955 2,115 2,248 6,745 Collateral held against notes out­ standing: Gold certificate account.................... 2,445 150 500 300 350 285 700 155 5 U.S. Govt, securities.......................... 56,075 3,000 13,800 3,150 4,400 4,720 3,ioo 9,300 2,130 970 2,175 2,330 7,000 Total collateral........................................ 58,520 3,150 14,300 3,450 4,750 5,005 3,100 10,000 2,285 970 2,175 2,335 7,000 1 See note 6 on page A-5. 4 After deducting $195 million participations of other Federal Reserve 2 After deducting $12 million participations of other Federal Reserve Banks. Banks. 3 After deducting $126 million participations of other Federal Reserve Note.—Some figures for cash items in process of collection and for Banks. member bank reserves are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ APRIL 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 p ha u s r e ­ s G sa r l o e s s s Re t d io e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s 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 p h r a u o s r s e ­ s s G sa r l o e s s s m E s a h x o t i u c f r r h ts i . ty tions 1971—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 83 104 189 -104 Oct.. 772 1,133 772 1,133 Nov. 1,883 1,070 ’266’ 1,129 1,070 ’266’ 24 -3,548 406 1,478 Dec. 3,160 1,981 3,055 1,981 11 130 21 -130 1972—Jan.. 915 248 110 499 248 110 16 187 Feb. 2,036 3,481 410 1.894 3,481 410 10 1,301 73 959 Outright transactions in U.S. Govt, securities—Continued Repurchase agreements Federal agency (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Govt, 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 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 h p r a u o s r s e ­ s s G sa r l o e s s s se it c ie u s r­ r O ig u h t t ­ R a m c g e h e r p a n e s u e t e s r ­ ­ 1971—Feb. . I 189 -360 121 4.183 4,183 679 Mar. .| 205 74 6,561 5,242 1,698 Apr. . 62 16 5,085 6,404 -439 May. 82 4,076 4,076 1,043 June . 11 14 1,165 1,165 754 July................. 3,044 3,044 323 Aug.. 16 -547 2.184 1,951 1,027 Sept.. 34 14 3,697 3,930 698 Oct.................. 2,616 2,616 -361 Nov.. 267 1,920 58 150 5,003 5,003 613 Dec..: 67 6 4,830 3,607 2,401 1972--Jan..1 191 23 4,722 5,945 -666 Feb..1 52 1,694 1,694 -1,854 1 000 0 \GS O Bankers’ acceptances Under Net Out­ r c e h p a u s r e ­ change1 right, agree­ net ments, net 673 85 1,968 -85 -707 48 1,099 -1 -48 705 -7 316 69 -3 55 1,148 61 -69 -1 -55 634 35 1 -326 244 6 862 145 101 22 181 2,850 165 -101 -4 -181 -787 77 -12 -1,789 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 c u hi s l t l r i i n a g n s B fr e a l n gi 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 la e il n t d 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 Dec.............. 257 154 * * 98 1 * 4 1971 Jan................ 186 80 1 • 99 1 5 Feb ........... 107 * 1 * 100 1 5 34 * 1 * 27 1 5 34 * 1 * 27 1 5 94 • 1 * 87 1 5 96 * 2 • 87 1 6 July ... 23 * 2 * 12 I 8 23 * 2 * 12 1 8 23 * 2 * 12 1 8 30 * 9 * 12 1 8 15 * 4 * 2 1 8 18 3 3 * 2 1 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 Mar. 29 Mar. 22 Mar. 15 Mar. 8 Mar. 1 Mar. 31 Feb. 29 Mar. 31 1,030 732 28 703 59 255 6 391 1,028 730 26 702 58 254 5 389 2 2 ' 2 1 1 1 1 2 169 69 67 63 63 143 63 138 100 10 16 22 22 70 20 98 69 59 51 41 41 73 43 40 69,871 68,585 67,992 68,045 68,145 69,928 67,698 64,160 5,361 4,357 3,492 3,484 3,501 3,296 2,320 4,249 16,757 16,610 17,208 17,099 16,434 18,119 17,134 14,414 14,458 14,323 14,092 14,337 15,085 15,218 15,119 14,934 26,410 26,410 26,354 26,318 26,318 26,410 26,318 23,619 5,678 5,678 5,652 5,647 5,647 5,678 5,647 6,080 1,207 1,207 1 ,194 1,160 1,160 1,207 1,160 864 818 810 810 727 727 826 727 185 8 16 185 43 43 43 42 6 55 6 170 170 170 150 186 158 186 397 397 397 366 366 397 366 116 116 116 99 99 116 99 84 84 84 70 70 84 70 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 al ’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 SM T 2 o 3 S t 3 A al ’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 42.6 971—Jan................................... 10,688.4 4,825.9 2,453.5 5,862.5 3,408.9 76.3 168.3 76.8 52.6 42.9 Feb.................................. 11,508.9 5,477.4 2,524.1 6,031.5 3,507.4 82.0 191.3 79.5 54.0 43.9 Mar................................. 11,425.9 5,309.7 2,505.3 6,116.2 3,610.9 79.5 183.5 76.5 53.3 44.1 Apr.................................. 11,658.7 5,356.8 2,597.1 6,301.9 3,704.8 80.5 185.6 78.7 54.4 44.7 May................................ 11,119.2 4,903.9 2,573.9 6,215.3 3,641.4 76.6 171.2 77.9 53.4 43.7 June................................ 11,815.7 5,202.8 2,765.2 6,612.9 3,847.7 80.1 179.3 82.4 55.8 45.3 July.................................. 11,770.0 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.................................. 12,328.4 5,555.5 2,813.1 6,772.8 3,959.7 83.1 195.6 83.5 56.5 45.9 ^ Revised data will be published in the Bulletin for May. For description of series, see Mar. 1965 Bulletin, p. 390. 1 Excludes interbank and U.S. Govt, demand deposit accounts. The data shown here differ from those shown in the Mar. 1965 Bulletin 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and because they have been revised, as described in the Mar. 1967 Bulletin, Los Angeles-Long Beach. p. 389. Note.—Total SMSA’s includes some cities and counties not designated as SMSA’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ APRIL 1972 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 . 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1 ,433 261 556 24 46 1945, 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 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 I960. 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 . 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965. 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1066. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968. 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970. 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 1971--Feb............. 55,611 38,298 6,266 2,178 136 2,972 8,753 17,994 17,313 4,822 12,022 213 249 3 4 Mar............ 56,304 38,785 6,303 2,200 136 3,011 8,835 18,300 17,519 4,892 12,160 212 248 3 4 Apr............. 56,592 38,917 6,360 2,206 136 3,001 8,826 18,388 17,675 4,917 12,294 210 246 3 4 May........... 57,403 39,509 6,410 2,245 136 3,048 8,960 18,711 17,894 4,994 12,438 210 245 3 4 June........... 58,393 40,263 6,472 2,277 136 3,099 9,137 19,144 18,130 5,075 12,596 209 243 3 4 July............ 58,558 40,238 6,493 2,260 136 3,068 9,031 19,251 18,321 5,129 12,735 208 242 3 4 Aug............ 58,904 40,442 6,537 2,267 136 3,058 9,045 19,398 18,462 5,162 12,845 207 241 2 4 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 4 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 4 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 4 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 4 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 Feb............. 59,795 40,725 6,812 2,275 135 3,087 9,010 19,405 19,070 5,257 13,371 201 234 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 Feb. 29, against Treasury F.R. Banks 1972 gold and cash Banks and silver and Agents Feb. Jan. Feb. certificates Agents 29 31 28 Gold........................................ 9,588 (9,475) 113 Gold certificates................... (9,475) 2 9,474 1 Federal Reserve notes......... 56,759 184 4,206 52,369 52,041 48,734 Treasury currency—Total.. 7,824 72 325 7,426 7,389 6,876 Dollars................................ 651 17 36 598 581 482 Fractional coin................ 6,556 54 289 6,214 6,193 5,785 United States notes..... 323 2 321 321 312 In process of retirement 3 294 293 294 298 Total—Feb. 29, 1972........ 474,171 (9,475) 370 9,474 4,533 59,795 Jan. 31, 1972.......... 4 74,855 (9,875) 505 9,874 5,046 59,429 Feb. 28, 1971.......... 4 70,736 (10,464) 471 10,463 4,191 55,611 1 Outside Treasury and F.R. Banks. Includes any paper currency held 4 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 Consists of credits payable in gold certificates, the Gold Certificate Note.—Prepared from Statement of United States Currency and Coin Fund—Board of Governors, FRS. and other data furnished by the Treasury. For explanation of currency 3 Redeemable from the general fund of the Treasury. reserves and security features, see the Circulation Statement or the Aug. 1961 Bulletin, p. 936. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted r Not seasonally adjusted r Month or week M2 Mz Mi Mx Mi (Mi plus time (M2 plus deposits Mi (Mi plus time (Mi 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—De c 197.4 378.0 572.6 203.4 383.0 577.5 1969—De c 203.7 386.8 588.3 209.8 392.0 593.4 1970—De c 214.8 418.2 634.0 221.2 423.5 637.2 1971—Ma r 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—Ja n 228.8 469.9 727.3 235.3 475.3 732.8 Feb.......... 231.2 475.5 737.4 229.0 472.7 734.1 Mar.p... 233.6 480.1 746.0 231.3 478.7 744.9 Week ending— Mar. 1. 231.4 477.3 228.2 473.7 8. 232.5 478.1 230.4 476.4 15. 233.9 480.7 232.1 480.2 22. 233.8 480.1 231.0 478.4 29* 233.4 479.9 230.4 478.5 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 Mar..................... 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 June.................... 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 52.5 175.7 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...................... 53.2 178.0 33.8 244.3 278.1 261.9 52.6 176.4 33.6 243.7 277.3 261.4 7.2 Mar.y................. 53.7 179.9 33.4 246.5 279.9 265.9 53.2 178.1 33.3 247.4 280.7 266.1 7.7 Week ending— 53.2 178.2 33.8 245.9 279.7 52.3 175.9 33.8 245.5 279.3 7.1 8............. 53.5 179 0 33 7 245 7 279 4 53 4 177 0 34.0 246.0 280.0 6.5 15............. 53.7 180.2 33 0 246 8 279 8 53 3 178.8 32.8 248.1 280.9 6.5 22............. 53.7 180.1 33.1 246 4 279.5 53.2 177.7 33.0 247.4 280.4 9.1 29'’.......... 53.9 179.5 33.7 246.5 280.2 52.9 177.5 33.5 248.0 281.5 9.0 1 Includes, in addition to currency and demand deposits, savings de­ Note.—For description of revised series and for back data, see pp. 880­ posits, 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 A/2, 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 □ APRIL 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—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 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 3.2 358.0 357.0 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 31.56 360.9 213.7 141.0 6.3 366.3 213.4 146.9 6.0 364.9 370.3 Feb................ 31.62 31.58 31.47 363.1 216.4 142.9 3.7 363.4 215.9 141.5 6.1 366.7 367.1 Mar.*........... 32.04 31.94 31.83 368.4 217.4 144.9 6.1 368.0 218.1 143.4 6.6 372.2 371.8 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, Division 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 affiliates3 Date Securities Securities Total1,2 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—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 Mar. 29*....................... 502.6 331.9 62.3 108.4 499.1 328.5 62.5 108.1 334.7 331.3 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

APRIL 1972 o BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities Total Bank credit assets, Date c c s G S e a a to r t D n o e t c d i l s R f d k i 1 ­ T r s c o e u r i t n n u a u e r g c a r n y 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 u ry R F s B e e e a s c d n e u e r k r r v i a s 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 t i e t — t d a t i s a l l ­ l , c d u e T r a p o r n o e t d s n a i l c t y s c C o m a a n a u p n i c e n s d i ­ t c t t a s . , l ■ 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 _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 Mar. 29*................... 10,000 7,900 650,000 384,500 138,200 65,800 69,900 2,500 127,300 667,800 602,800 65,100 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S Government Date De­ De­ For­ Treas­ At Total o b r u C e a t n n u s c i k r d y ­ s e d ju e m p s a a t o d e n s ­ d d it 7 s Total o b r u C e a t n n u s c i k r d y ­ s e d ju e m p s a a t o d e n s ­ d d it 7 s Total b m C a e n o r k c m s ia ­ l 8 b M sa a v u n 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 e ig t n 1 , 0 h c i u n o a r g l s y d s h ­ s b c a a a o v n n m i d n k l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950-Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1 ,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315... 206,80C 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—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 Mar. 29*... 229,000 52,700 176,300 225,700 52,200 173,500 364,000 280,700 83,300 2,500 400 9,200 900 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 □ APRIL 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 assets3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks U.S. capital De­ Treas­ Other ac­ mand Time5 ury 2 counts4 U.S. Govt. Other AH commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31 ... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 116,284 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--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 60,020101,340 95,590 610,880 505,960 28,950 2,610 5,940 204,350 264,110 27,240 45.530 13.768 Nov. 24 p. 495,560 333,040 61,140101,380 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 62,810104.500 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 13.799 Mar. 29». 520,000 349.450 62,490108.060 90.350 635,300 522,990 26,500 2,820 8,710 203,800 281,1^0 32,970 47,400 13.799 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,: 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—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 5.720 Mar. 29p. 409,024 281,182 45,486 82,356 78,710 508,747 413,132 25,154 2,590 7,216 161,976 216,196 31,792 37,683 5.720 Reserve city member: New York City:8 1941—Dec. 31 .. 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 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 i,r- 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 ? 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 20,4481 4,500 6,486 12 1971—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 8,700 26,200 92,767 73,710 15,221 937 1,199 32,816 23,536 4,531 6,860 12 July 28.. 59,988 46,382 4,837 8,769 22,281 88,057 67,319 12,062 835 939 29,379 24,104 5.954 7,008 12 Aug. 25.. 60,886 47,659 4,793 8,434 21,431 88,217 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, 8.675 24,405 91,671 68,923 13,005 1086 710 29,561 24,561 6,748 7,207 12 Nov. 24.. 61,776 47,626 5,582 8,568 23,026 90.162 67,792 12,988 1196 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,' 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 8,445 23,615 91,094 69,674 15,152 1.258 878 28,084 24,302 6,906 7,306 12 Mar. 29.. 64,450 50,063 5,567 8,820 21,400 91,687 68,029 11,674 1,231 1,360 28.793 24,971 8,428 7,342 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 lia­ 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 Time 5 ury 2 counts4 mand U.S. Govt. Other Reserve city member (cont.): City of Chicago: *■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 7......... 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—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 2,76C 2,756 20,438 15,571 1,339 191 374 6,028 7,639 1,952 1,649 9 Oct. 27............. 16,526 11,93* 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 1,78C 2,926 3,856 21,333 15,364 1,431 219 102 6,097 7,515 2,712 1,649 9 Dec. 29............. 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 Mar. 29............. 17,668 12,898 1,582 3,188 3,204 21,806 15,912 1,398 191 341 6,462 7,520 3,180 1,820 9 Other reserve city: *>9 1941 Dec. 31............. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945 Dec. 31............. 40,108 8,514 29 552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947 Dec. 31............. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31............. 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967 Dec. 30............. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968 Dec. 31............. 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 7......... 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970 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—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 Mar. 29............. 149,384 106,665 14,583 28,136 29,082 186,613 147,937 9,004 944 2,889 57,001 78,099 16,508 13,657 156 Country member: *>9 1941—Dec. 31............. 12,518 5,89C 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—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............. 164,524 103,68- 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............. 166,63( 105,26; 22,86' 38,503 23,519 196,237 170,06C 2,782 224 2,730 67,186 97,138 3,146 14,195 5,547 Oct. 27............. 168,253 106,317 22,956 38,98C 24,987 199,382 173,198 3,052 224 1,927 69,821 98,174 3,261 14,291 5,548 Nov. 24............. 169,62C 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............. 174,639 109,715 23,568 41,356 25,387 205,717 179,050 3,176 224 2,294 69,521 103,835 3,459 14,775 5,543 Mar. 29*........... 177,522 111,556 23,754 42,212 25,024 208,641 181,254 3,078 224 2,626 69,720105,606 3,676 14,864 5,543 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ APRIL 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 Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Loans and Total3 Demand ings ac­ of 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 13,383 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25.277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13.464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13.464 1970—June 30.. 421,141 294,963 51,248 74,929 84,885 526,484 431,094 26,017 829 8,040 191,752 204,456 18,215 41,159 13,478 Dec. 31.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1971—June 30.. 478,302 321,575 59,991 96,735 95,181 595,819 501,283 30,953 2,166 8,391 205,736 254,036 22,297 44,816 13,547 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3, soel 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137, 20,144 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178' 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30. . 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572! 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 437 3,534 113,134 120,060 9,895 22,628 4,700 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 1970—June 30.. 247,862 176,376 28,191 43,295 51,942 312,480 254,261 14,947 393 5,066 113,296 120,559 13,051 24,106 4,637 Dec. 31.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—June 30.. 281,830 192,339 33,759 55,732 57,244 352,807 294,025 16,575 1,441 5,118 121,096 149,795 15,629 25,999 4,598 State member: 1 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 ,9331 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 10,777i 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065, 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247, 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966! 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 30?. 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 (963—Dec. 20. 42,464 23,55C 13,391 5,523 5,942 49,275 44,280 555 61 726 23,140 19,793 12 4,234 7,173 1964—Dec. 31. 46,567 26,544 13,79( 6,233 7,174 54,74' 49,389 65* 7C 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31. 52,028 30,31C 14,13" 7,581 7,513 60,67$ 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31. 56,857 33,63( 13,87: 9,349 7,777 65,92 59,434 7091 8" 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30. 64,449 37,67. 15,14( 11,629 8,403 74,328 67,107 786 89 588 31,004 34,64( 162 5,83( 7,440 1968—Dec. 31. 73,553 43,378 16,15. 14,020 9,305 84,60> 76,368 9081 94 691 34,615 40,06() 21' 6,48;. 7,504 1969—June 307 78,032 48,358 14,34 15,333 8,69( 88,80:. 78,61C 791 78 745 34,07( 42,92 45 7,00'I 7,528 Dec. 31. 82,132 51,64 14,565 15,925 10,056 94,45 83,38C 1,017 8. 92'1 37,56 43,79.> 629 7,40 7,595 1970—June 30. 84,875 5 4,14S ) 13,92' I 16,802 9,34( 96,79'I 84,865 894 13­r 1,08 35,83' 46,91I 708 7,97. 7,675 Dec. 31. 92,39$ 57,485) 16,035) 18,871 11,208 106,45'1 93,998 1,091 14 1,438i 40,00. 51,32I 57 8,32<S 7,735 1971—June 30. 99,53: 61,50<) 15,95i 22,070 10,435) 113,053 99,77-: 989 185 1,40*) 39,90S 57,28J 597 8,99J 7,811 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 a in n s d u F ra D nc IC e Total Loa l ns T U re .S as . ­ Oth 2 er assets3 c b a i a a l p i n c t i d i ­ t e a s l Total3 m D a e n ­ d Time Demand Tim 5 e r i o n w gs ­ c c a o a p u c i n ­ ta ts l ba b o n e f k r s ury counts * U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31........... 1,457 455 761 241 763 2,283 1,872 3 9 i 91 253 13 329 852 1945—Dec. 31........... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 31«......... 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 Dcc. 31........... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1970—June 30........... 3,043 2,073 321 650 746 4,140 2,280 321 69 36 1,247 606 331 549 193 Dec. 31........... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 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 * 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 □ APRIL 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans * Investments For To U.S. Treasury b C a l n a k s s a o n f d 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 u a h r r a r it y s i i i e n n s g g in f s in ti a t n u c ti i o a n l s Real Ot t h o er, securities 6 S a t n a d te call date invest­ sold, Total cial cul­ es­ in- Other local Other ments etc.2 3.4 and tur­ To tate di- 5 govt. secu­ in­ al 5 bro­ vid- Bills secu­ rities5 dus­ kers To Banks Others uals3 Total and Notes Bonds rities trial and others certifi­ deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1969—Dec. 3110422,728 9,928286,750108,443 10,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1970—Dec. 31..461,998 16,241297,897 112,486 11,1556,332 3,536 2,660 15,85572,49265,8077,57461,742 69,637 16,481 1971—June 30.481,270 15,663307,969 114,36212,2265,634 3,493 2,844 16,95875,777 69,1497,52760,254 77,994 19,389 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,164 3,606 49 4,677 2,361 1,132 “ ,91221,526 16,045 51,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 io419,746 9,693284,945 107,68510.314 5,644 3,991 2,425 14,89069,66963,008 7,319 54,399 58,84011,869 1970—Dec. 31..458,919 15,942296,064 111,54011,1416,207 3,516 2,581 15,71372,302 65,556 7,50761,438 69,301 16,174 1971—June 30.478,30215,381306,194 113,41112,2115,555 3,480 2,718 16,82575,615 68,9427,43759,991 77,687 19,048 Member—rTotal: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1969—Dec. 31 io337,613 7,35<6235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,20748,388 6.776 39,833 47,2277,558 1970—Dec. 31..366,520 12,677241,840 97,9546,538 5,963 3,028 2,345 14,688 54,60049,8296,89545,399 55,662 10,942 1971—June 30.378,769 12,026248,04098,573 7,0945,333 3,024 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 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,503 28.189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 1970—Dec. 31. 62,347 774 46,386 27.189 4,174 686 1,169 3,741 3,883 3,907 1,622 6,009 7,757 1,420 1971—June 30 61,059 996 46,24726,948 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 1,015 346 2,105 2,055 372 1971—June 30. 16,477 612 11,164 6,515 373 245 218 1,465 861 1,078 367 1,736 2,580 384 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945— Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 387 29.552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,706 17,569 2,757 11,944 16,625 1,859 1970—Dec. 31.. 133,861 6,007 90,293 38,627 1,428 909 1,322 798 7,015 19,848 17,3223,024 14,700 19,771 3,089 1971—June 30. 137,451 5,010 92,176 38,189 1,601 7861,419 893 7,517 20,722 17,929 3,120 14.552 22,409 3,304 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31. 35,002 5,596 1,484 648 42 471 1,881 707 359 26,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31. 36,324 10,199 3,096 818 23 227 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31 141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,824 26,362 1,85821,278 22,5724,718 1970—Dec. 31.. 154,568 5,420 94,421 25,6375,052 524 828 239 2,648 30,005 27,585 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 22,634 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. 311 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 1970—Dec. 31.. 95,478 3,564 56,058 14,5324,617 369 507 316 1,168 17,891 15,978 679 16,342 13,975 5,538 1971—June 30. 102,500 3,638 59,929 15,7895,131 301 468 348 1,187 18,843 17,112 749 16,216 16,031 6,687 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for 1941 and 1945 appear in the add to the total and are not entirely comparable with prior figures. Total table on pp. A-20—A-23. loans continue to be shown net. See also note 10. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed 2 Includes securities purchased under resale agreements. Prior to June 30, by CCC were reclassified as “Other securities,” and Export-Import Bank 1967, they were included in loans—for the most part in loans to “Banks.” portfolio fund participations were reclassified from loans to “Other Prior to Dec. 1965, Federal funds sold were included with “Total” loans securities.” This increased “Other securities” by about $1 billion. and loans to “Banks.” 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

APRIL 1972 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d s B w F e R a r . i n v R e t k e h ­ . s s r C c e a o n n u i c d r n y ­ b m a a B n d e n c a o s k e l t ­ ­ i s s c 7 ju p m D s o a a t s d e e n i ­ d t ­ d s 8 D In o t ­ erba F nk or­ G U o .S vt . . g S l a o o t n c a v d a t t e l . C c o a e e f n r r f d i t s ­ i ’ - IPC I b n a t n e k r­ G P U S a o o a n . s S v v d t t ­ . a . l S g l a o o t n c a v d a t t e l . IPC3 B in o g r s ­ c C o a t a a u c p l n ­ i t ­ s mestic7 eign9 checks, 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 *o.. 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 46323,225 208,201 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 51726.221 228,176 22,54745,311 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 1,248 23,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31 *<>.. 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 1,243 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31___ 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1969—Dec. 31 io. . 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 1970—Dec. 31.... 23,319 5,445 13,744 133,169 26,260 2,882 6,460 13,250 7,309 147,473 1,733 406 18,406 160,998 18,57834,100 1971—June 30... 24,066 5,870 12,971 127,670 27,605 2,360 6,983 12,953 10,654 142,220 1,980 46220,534 175,75721,70035,822 New York City: 1941—Dec. 31___ 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 31 *<>.. 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 8 127 233 34 2,152 476 288 1945 Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1969—Dec. 31 !<>.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1970—Dec. 31___ 1,148 126 160 5,120 1,853 77 282 240 210 6,213 49 568 5,549 1,851 1,586 1971—June 30... 991 126 247 5,044 1,439 51 318 352 211 6,084 85 3 741 6,353 2,359 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. 3110.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,439 9,881 11,464 1970—Dec. 31.... 9,710 1,748 3,731 44,093 10,805 512 2,547 3,793 2,035 53,499 592 222 8,489 58,165 10,391 12,221 1971—June 30... 10,394 1,822 4,069 43,872 9,631 535 2,954 3,716 2,455 51,451 735 249 8,863 62,312 12,15312,826 Country: 1941—Dec. 31 .... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945— Dec. 31___ 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 31 *o.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 1970—Dec. 31 . , 7,778 3,135 8,544 64,185 3,319 68 2,592 8,045 1,779 59,982 135 112 7,885 78,370 1,836 13,807 1971—June 30... 7,964 3,455 7,461 63,490 3,031 56 2,513 8,095 1,956 58,691 223 143 9,033 85,521 2,656 14,499 Nonmember:3 1947—Dec. 31___ 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1 596 1969—Dec. 3110.. 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 ___ 1,602 9,392 40,743 1,182 284 1,47819740,—51D3ec. 13,1230 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 10 Beginning June 30,1969, reflects (1) inclusion of consolidated reports is treated as a noninsured bank and not as a member bank for the period (including figures for all bank-premises subsidiaries and other significant June 30, 1969—June 30, 1970. majority-owned domestic subsidiaries) and (2) reporting of figures for Comparability of figures for classes of banks is affected somewhat by total loans and for individual categories of securities on a gross basis—that changes in F.R. membership, deposit insurance status, and the reserve is, before deduction of valuation reserves. See also notes 1 and 6. classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ APRIL 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 ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1971 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 1972 Feb. 2................ 281,037 10,718 9,633 723 227 135 189,771 82,047 1,106 5,093 161 2,484 6,035 7,809 9............... 280,464 10,958 10,128 515 207 108 189,478 82,082 964 4,926 163 2,495 6,135 7,862 16............... 281,544 11,625 10,995 386 177 67 190,115 82,581 624 5,225 179 2,510 6,184 7,929 2 3 281,250 10,496 9,568 582 238 108 190,667 82,490 771 5,388 182 2,499 6,196 7,967 Mar. 1*............. 283,969 10,755 9,694 650 220 191 192,213 82,597 2,350 1,031 6,026 190 2,518 6,336 8,061 8 p.......... 283,777 9,919 8,932 734 172 81 191,742 82,702 2,364 900 5,802 175 2.542 6,090 8,039 15*.......... 288,182 11,531 10,445 725 272 89 194,387 83,517 2,372 1,118 6,270 186 2,555 6,533 8,212 22*.......... 287,254 11,475 10,350 670 228 227 193,952 83,462 2,393 869 6,141 174 2.543 6,350 8,291 29"............. 288,161 11,892 10,988 490 240 174 194,777 83,795 2,396 683 6,152 169 2,522 6,412 8,361 New York City 1971 Mar. 3............... 57,412 1,467 1,395 42,975 25,734 1,059 2,391 615 2,176 1,459 10............... 56,197 551 456 42,390 25,746 614 2,480 618 1,973 1,464 17............... 56,974 1,367 1,291 42,613 25,825 647 2,412 617 2,094 1,478 2 4 55,849 646 610 42,334 25,716 695 2,247 613 2,067 1,456 31............... 56,048 390 363 42,419 25,591 601 2,702 601 2,190 1,463 1972 Feb. 2............... 59,227 1,340 1,319 21 44,309 25,067 923 3,382 607 1,698 1,779 9 58,440 980 936 44 44,155 25,158 800 3,266 608 1,779 1,803 16............... 58,493 1,492 1,437 48 7 44,311 25,324 490 3,431 619 1,819 1,850 2 3 58,202 669 638 31 44,610 25,107 650 3,575 611 1,923 1,892 Mar. 1*............. 59,878 933 891 42 45,498 25,044 834 4,116 610 2,042 1,922 8*.......... 59,406 615 567 19 44,856 25,076 736 3,846 616 1,809 1,941 15 p............. 61,465 1,396 1,339 32 46,320 25,458 930 4,094 628 2,176 2,007 22*............. 60,959 1,456 1,326 130 45,578 25,337 709 4,005 629 2,012 1,979 29*>............. 60,867 1,173 995 55 119 46,002 25,460 570 4,152 621 2,075 2,045 Outside New York City 1971 Mar. 3............... 202,125 7,555 6,430 765 335 25 132,800 55,334 2,018 225 1,303 115 1,730 4,605 4,531 1 0 201,819 7,236 6,003 861 326 46 132,785 55,442 2,011 174 1,274 89 1,741 4,615 4,543 17............... 202,645 6,911 6,032 434 360 85 133,533 55,969 2,016 175 1,264 106 1.737 4,652 4,670 2 4 202,057 6,794 5,929 511 290 64 133,444 55,703 2,021 177 1,268 84 1,734 4,654 4,703 31............... 203,999 7,897 6,521 878 376 122 133,832 55,571 2,031 253 1,268 71 1.738 4,819 4,798 1972 Feb. 2............... 221,810 9,378 8,314 723 227 114 145,462 56,980 2,287 183 1,711 113 1,877 4.337 6,030 9............... 222,024 9,978 9,192 515 207 64 145,323 56,924 2,294 164 1,660 114 1,887 4.356 6,059 1 6 223,051 10,133 9,558 338 177 60 145,804 57,257 2,290 134 1,794 130 1,891 4,365 6,079 23............... 223,048 9,827 8,930 582 238 77 146,057 57,383 2,306 121 1,813 130 U 4,273 6,075 Mar. 1*............. 224,091 9,822 8,803 650 220 149 146,715 57,553 2,323 197 1,910 136 1,908 4,294 6,139 8*......... 224,371 9,304 8,365 705 172 62 146,886 57,626 2,337 164 1,956 127 1.926 4,281 6,098 15*............. 226,717 10.135 9,106 700 272 57 148,067 58,059 2.345 188 2,176 135 1.927 4.357 6,205 22*............. 226,295 10,019 9,024 670 228 97 148,374 58,125 2,365 160 2,136 125 1,914 4.338 6,312 29*............. 227,294 10,719 9,993 435 236 55 148,775 58,335 2,368 113 2,000 121 1,901 4,337 6,316 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 o WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing- Wednesday Con­ 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 34,408 418 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 1972 38,887 816 2,611 24,181 910 15,316 27,881 3,909 4,005 16,218 3,749 ...........................Feb. 2 38,945 845 2,656 24,123 905 15,057 27,497 3,473 4,026 16,218 3,780 ...................................... 9 39,056 837 2,529 24,084 886 15,175 27,156 3,222 4,547 15,658 3,729 ......................................16 39,135 785 2,598 24,072 910 15,342 27,455 3,597 4,605 15,554 3,699 ......................................23 39,178 957 2,487 24,099 919 15,464 27,927 4,145 4,755 15,486 3,541 ............................Mar. 1p 39,300 975 2,497 24,084 889 15,383 28,862 5,173 4,820 15,394 3,475 ...................................... 8p 39,448 1,029 2,559 24,098 908 15,582 28,431 4,842 4,832 15,252 3,505 ......................................15p 39,557 1,068 2,538 24,100 912 15,554 27,989 4,567 4,820 15,228 3,374 ......................................22p 39,709 1,143 2,672 24,208 943 15,612 27,749 4,468 4,797 15,209 3,275 ......................................29* New York City 1971 3,559 148 870 1,845 480 2,605 5,030 1,283 386 2,867 494 ............................Mar. 3 3,591 136 873 1,839 485 2,536 5,238 1,430 409 2,860 539 ......................................10 3,592 172 839 1,835 482 2,583 5,052 1,223 401 2,855 573 ......................................17 3,617 169 783 1,841 501 2,590 4,826 964 421 2,870 571 ......................................24 3,607 142 723 1,823 481 2,456 5,384 1,459 429 2,875 621 ......................................31 1972 4,126 286 1,085 1,940 542 2,798 5,285 955 855 3,045 430 ...........................Feb. 2 4,130 318 1,144 1,943 549 2,582 5,097 711 839 3,073 474 ...................................... 9 4,156 330 1,066 1,926 544 2,681 4,731 621 969 2,683 458 ......................................16 4,167 234 1,125 1,928 579 2,741 5,012 893 990 2,708 421 ......................................23 4,182 269 1,054 1,919 549 2,876 5,333 1,218 970 2,703 442 ............................Mar. 1p 4,195 307 1,101 1,918 548 2,688 5,850 1,806 1,039 2,615 390 ...................................... 8p 4,196 299 1,163 1,916 560 2,815 5,679 1,646 1,057 2,545 431 ......................................15p 4,213 312 1,124 1,911 563 2,707 5,521 1,582 1,029 2,559 351 ......................................22* 4,229 341 1,201 1,913 571 2,748 5,376 1,543 1,031 2,493 309 ......................................29p i Outside | New York City 1971 30,849 270 638 19,700 278 11,204 23,192 4,666 2,646 12,340 3,540 ............................Mar. 3 30,898 291 637 19,660 275 11,135 22,885 4,432 2,647 12,404 3,402 ......................................10 30,891 298 614 19,676 273 11,192 22,657 4,244 2,644 12,338 3,431 ......................................17 30,916 314 616 19,698 286 11,270 22,220 3,742 2,702 12,294 3,482 ......................................24 30,953 312 619 19,768 300 11,331 22,676 4,217 2,712 12,311 3,436 ......................................31 1972 34,761 530 1,526 22,241 368 12,518 22,596 2,954 3,150 13,173 3,319 ...........................Feb. 2 34,815 527 1,512 22,180 356 12,475 22,400 2,762 3,187 13,145 3,306 ...................................... 9 34,900 507 1,463 22,158 342 12,494 22,425 2,601 3,578 12,975 3,271 ......................................16 34,968 551 1,473 22,144 331 12,601 22,443 2,704 3,615 12,846 3,278 ......................................23 34,996 688 1,433 22,180 370 12,588 22,594 2,927 3,785 12,783 3,099 ...........................Mar. 1p 35,105 668 1,396 22,166 341 12,695 23,012 3,367 3,781 12,779 3,085 ...................................... 8p 35,252 730 1,396 22,182 348 12,767 22,752 3,196 3,775 12,707 3,074 ......................................15p 35,344 756 1,414 22,189 349 12,847 22,468 2,985 3,791 12,669 3,023 ......................................22 p 35,480 802 1,471 22,295 372 12,864 22,373 2,925 3,766 12,716 2,966 ......................................29 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 a APRIL 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 other5 pation4 Large banks— Total 1971 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 31............................... 47,449 6,898 33,831 1,184 5,536 36,285 19,482 3,327 7,495 738 15,482 342,856 1972 Feb. 2............................. 52,667 8,489 36,837 1,533 5,808 32,493 19,477 3,488 7,043 937 16,294 360,769 9 52,531 8,438 36,703 1,546 5,844 29,959 19,413 3,488 8,862 933 16,021 359,140 16............................... 52,648 8,408 36,706 1,542 5,992 33,385 21,013 3,519 8,658 933 15,786 364,838 2 3 52,632 8,412 36,667 1,516 6,037 32,783 19,509 3,742 9,399 933 15,881 363,497 Mar. 1*........................... 53,074 8,523 36,801 1,549 6,201 35,276 19,403 3,429 10,403 934 16,409 369,823 8*..................... 53,254 8,648 36,927 1,552 6,127 31,469 19,727 3.377 9,351 919 16,225 364,845 15*............................. 53,833 9,031 37,046 1,549 6,207 33,101 19,781 3,475 9,521 920 16,724 371,704 22*............................. 53,838 9,251 36,902 1,521 6,164 28,400 20,044 3,612 8,597 920 16,493 365,320 29 *........................... 53,743 9,144 36,946 1,567 6,086 27,114 21,729 3,664 8,790 922 16,632 367,012 New York City 1971 Mar. 3............................. 7,940 1,348 5,348 94 1,150 15,357 3,786 408 1,206 346 5,423 83,938 1 0 8,018 1,518 5,292 94 1,114 15,075 5,131 428 1,211 346 5,271 83,659 17............................. 7,942 1,498 5,225 100 1,119 16,261 4,531 436 1,293 346 5,230 85,071 2 4 8,043 1,329 5,444 91 1,179 14,463 5,081 423 1,110 346 5,734 83,006 31............................. 7,855 1,326 5,181 93 1,255 18,904 5,153 412 1,904 346 5,767 88,534 1972 Feb. 2............................. 8,293 1,659 5,412 285 937 14,133 4,926 433 1,384 425 5,114 85,642 9............................. 8,208 1,602 5,407 296 903 13,812 4,969 428 3,543 425 5,077 86,694 16............................. 7,959 1,572 5,248 278 861 14,426 5,534 426 3,193 424 4,972 87,468 23............................. 7,911 1,619 5,164 262 866 14,008 4,867 435 3,652 424 5,092 86,680 Mar. \p........................... 8,114 1,726 5,207 266 915 15,999 4,896 412 4,274 426 5,085 90,970 8*..................... 8,085 1,739 5,175 272 899 14,361 5,259 415 4,101 426 5,059 89,027 15*..................... 8,070 1,744 5,167 265 894 13,295 4,779 429 3,642 426 5,332 89,368 22*........................... 8,404 2,047 5,231 250 876 10,949 4,550 426 3,475 425 5,217 86,001 29*........................... 8,316 1,985 5,230 261 840 10,527 6,111 435 3,662 426 5,289 87,317 Outside New York City 1971 Mar. 3. 38,578 5,460 27,999 1,076 4.043 17,875 14,685 2,751 5,456 392 9,595 252,879 10. 38,913 5,570 28,218 1,055 4,070 15,596 13,494 2,879 5,347 391 9,494 249,020 17. 39,544 5,705 28,523 1,085 4,231 17,463 14,977 2,937 5,430 392 9,489 253,333 24. 39,599 5,712 28,592 1,114 4,181 15,176 13,086 3,008 5,258 392 9,580 248,557 31. 39,594 5,572 28,650 1,091 4,281 17,381 14,329 2,915 5,591 392 9,715 254,322 1972 Feb. 2. 44,374 6,830 31,425 1,248 4,871 18,360 14,551 3,055 5,659 512 11,180 275,127 9. 44,323 6,836 31,296 1,250 4,941 16,147 14,444 3,060 5,319 508 10,944 272,446 16. 44,689 6,836 31,458 1,264 5,131 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 Mar. 1*. 44,960 6,797 31,594 1,283 5,286 19,277 14,507 3,017 6,129 508 11,324 278,853 8*. 45,169 6,909 31,752 1,280 5,228 17,108 14,468 2,962 5,250 493 11,166 275,818 15*. 45,763 7,287 31,879 1,284 5,313 19,806 15,002 3,046 5,879 494 11,392 282,336 22*. 45,434 7,204 31,671 1,271 5,288 17,451 15,494 3,186 5,122 495 11,276 279,319 29*. 45,427 7,159 31,716 1,306 5,246 16,587 15,618 3,229 5,128 496 11,343 279,695 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 ComC­om­ 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 141,127 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 ...............Mar. 3 136,350 95,173 6,264 3,080 20,814 616 742 2,36C 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 2,38C 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 1972 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 17,60C 2,328 5,038 .......................... 9 145,910 101,714 6,403 3,193 23,677 686 690 2,325 7,222 143,205 56,218 61,578 17,536 2,318 5,060 ..........................16 146,174 100,311 6,323 4,471 24,809 643 753 2,527 6,337 144,122 56,422 62,052 17,709 2,313 5,131 ..........................23 151,788 102,735 7,311 3,518 26,500 683 687 2,586 7,768 144,286 56,578 62,085 17,679 2,310 5,151 ...............Mar. 1p 144,988 99,467 6,209 3,895 24,357 665 654 2,504 7,237 144,740 56,879 62,269 17,636 2,291 5,194 .......................... 8 p 152,257 105,657 6,205 6,122 22,597 669 778 2,618 7,611 143,659 57,103 61,217 17,475 2,253 5,151 ....................15* 144,487 100,854 6,593 6,291 20,953 625 667 2,555 5,949 144,026 57,382 61,535 17,283 2,251 5,151 ..........................22 p 143,920 100,628 6,575 5,579 20,190 653 822 2,627 6,846 144,863 57,616 61,931 17,473 2,270 5,133 ..........................29* New York City 1971 42,397 22,716 508 1,392 10,282 328 620 1,590 4,961 20,697 4,886 11,620 1,142 836 2,086 . Mar. 3 40,916 22,632 483 707 9,621 309 595 1,741 4,828 20,988 4,962 11,885 1,131 821 2,060 ...........10 42,567 23,383 549 857 9,883 342 573 1,69? 5,282 21,125 5,032 11,855 1,090 784 2,235 ...........17 39,994 22,610 653 307 9,138 309 582 1,609 4,786 21,092 5,088 11,775 1,117 803 2,176 ...........24 46,755 24,452 664 551 12,543 424 650 1,605 5,866 21,074 5,182 11,633 1,170 786 2,170 ...........31 1972 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 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 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 45,780 23,405 470 661 14,157 353 512 1,810 4,412 23,928 5,615 12,555 1,675 1 ,189 2,795 . Mar. 1 p 42,637 21,969 398 925 12,676 329 491 1,722 4,127 24,219 5,649 12,714 1,713 1,191 2,851 8 p 44,041 23,890 347 1,815 10,786 346 628 1,844 4,385 23,559 5,685 12,079 1,696 1 ,168 2,830 15 p 40,232 22,416 511 1,780 9,831 313 515 1 ,795 3,071 23,892 5,723 12,344 1,717 1,162 2,846 22 p 40,212 22,302 478 1,326 9,354 347 659 1,851 3,895 24,537 5,753 12,756 1,936 1 ,163 2,827 29 p Outside New York City 1971 98,730 73,327 6,185 3,552 11,971 311 150 639 2,595 106,346 46,137 43,765 13,543 745 1,773 . Mar. 95,434 72,541 5,781 2,373 11,193 307 147 619 2,473 107,117 46,582 44,062 13,535 765 1,763 97,882 74,125 5,632 3,093 11,426 302 161 682 2,461 107,850 46,993 44,153 13,569 785 1,931 94,084 72,507 5,816 1,837 10,509 285 158 634 2,338 107,937 47,291 44,067 13,491 776 1,934 99,701 74,801 6,293 2,338 12,160 361 155 666 2,927 108,054 47,791 43,881 13,328 759 1,909 1972 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 .................23 106,008 79,330 6,841 2,857 12,343 330 175 776 3,356 120,358 50,963 49,530 16,004 1,121 2,356 ... Mar. 1 p 102,351 77,498 5,811 2,970 11,681 336 163 782 3,110 120,521 51,230 49,555 15,923 1,100 2,343 ........... 8 p 108,216 81,767 5,858 4,307 11,811 323 150 774 3,226 120,100 51,418 49,138 15,779 1,085 2,321 ...............15p 104,255 78,438 6,082 4,511 11,122 312 152 760 2,878 120,134 51,659 49,191 15,566 1,089 2,305 ...............22 p 103,708 78,326 6,097 4,253 10,836 306 163 776 2,951 120,326 51,863 49,175 15,537 1,107 2,306 ...........29* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ APRIL 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 liaoili- Wednesday funds liabili­ capital Total and De­ and savings deposits11 ties of pur­ F.R. ties Secur­ loans invest­ mand banks chased, Banks Others etc.8 ities (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed i o Total to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1971 Mar. 3........................ 19,176 245 887 19,158 4.077 25,023 176,554 251,294 80,698 27,748 18,108 9,640 5,018 10........................ 17,882 1,503 829 18,740 4.078 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 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 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 25,303 177,200 252,709 82,579 27,458 17,623 9,835 2,858 1972 Feb. 2........................ 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........................ 24,856 155 1.087 15,008 4.119 27,385 189,463 269,491 85,013 33,465 20,505 12,595 1,062 16........................ 27,302 1.088 15,781 4.120 27,348 189,908 269,712 85,655 33,436 20,524 12,912 1,006 2 3 25,483 1,095 15,061 4,122 27,364 190,810 270,897 84,111 34,012 20,859 13,152 1,068 Mar. Ip...................... 25,358 52 1,214 15,323 4.138 27,587 192,317 273,318 86,494 33,765 20,556 13,208 951 8p...................... 25.710 695 1,321 15,555 4.139 27,620 191,754 273,870 85,267 33,989 20,684 13,305 1,164 15p...................... 26,609 15 1,367 16,039 4,135 27,546 194,444 276,708 90,437 32,815 19,657 13,158 1,263 22p...................... 26,699 721 1,417 16,197 4,134 27,562 194,009 275,836 88,843 33,015 19,910 13,105 1,339 29 p...................... 28,237 991 1,116 16,010 4,148 27,656 194,538 276,030 91,037 33,480 20,155 13,325 1,525 New York City 1971 Mar. 3........................ 4,681 8,606 1,216 6,259 42,899 55,869 15,366 8,731 6,472 2,259 3,059 10........................ 4,783 800 8,539 1,216 6,335 42,349 55,605 15,513 8,954 6,741 2,213 3,096 17........................ 5,171 320 8,254 1.219 6,343 42,517 55,511 15,566 9,018 6,663 2,355 2,550 2 4 5,233 393 8,676 1.219 6,327 42,201 55,070 16,086 8,995 6.615 2,380 2,712 31........................ 5,337 7,686 1,200 6,411 42,304 55,543 14,757 8,820 6,381 2,439 1,646 1972 Feb. 2........................ 6,283 169 6,130 1,199 6,979 44,044 57,622 16,547 11,066 7,164 3,902 947 9 6,564 220 5,881 1,202 6,974 43,881 57,186 15,115 11,100 7,098 4,002 739 16........................ 7,161 245 5,857 1,201 6,968 44,036 56,726 15,815 11,178 7,186 3,992 616 2 3 6,197 280 5,722 1,204 6,959 44,407 57,330 14,730 11,374 7,337 4,037 702 Mar. Ip...................... 6,984 305 5,726 1,210 7,037 45,271 58,718 14,963 11,323 7,287 4,036 686 8p................. 6,811 382 6,071 1,210 7,035 44,597 58,532 14,675 11,575 7,460 4,115 884 15p................ 6,929 463 6,137 1.209 7,030 46,078 59,827 18,145 10,965 6,901 4,064 946 22?................ 6,364 640 474 6,185 1.210 7,004 45,396 59,321 17,672 11,252 7,161 4,091 968 29p...................... 7,103 655 184 6,414 1,218 6.994 45,839 59,531 19,005 11,812 7,506 4,306 1,191 Outside New York City 1971 Mar. 3........................ 14,495 245 805 10,552 2,861 18,764 133,655 195,425 65,332 19,017 11,636 ,381 1,959 1 0 13,099 703 747 10,201 2,862 18,777 133,727 195,525 66,272 19,146 11,746 ,400 1,711 17........................ 14,521 231 756 10,422 2,857 18,734 134,114 196,315 65,900 19,297 11,737 ,560 1,627 2 4 13,249 402 793 10,398 2.859 18,755 133,995 195,814 66,562 19,063 11,558 ,505 1,617 31........................ 13,517 377 757 10,086 2.859 18,892 134,896 197,166 67,822 18,638 11,242 ,396 1,212 1972 Feb. 2........................ 17,370 893 9,269 2,907 20,387 145,996 212,966 70,782 22,290 13,412 8,878 354 9........................ 18,292 867 9,127 2.917 20,411 145,582 212,305 69,898 22,365 13,407 8,957 323 16........................ 20,141 843 9,924 2,919 20,380 145,872 212,986 69,840 22,258 13,338 8,920 390 23........................ 19,286 815 9,339 2.918 20,405 146,403 213,567 69,381 22,638 13,522 9,115 366 Mar. \v...................... 18,374 52 909 9,597 2.928 20,550 147,046 214,600 71,531 22,442 13,269 9,172 265 8?................. 18,899 33 939 9,484 2.929 20,585 147,157 215,338 70,592 22,414 13,224 9,190 280 15p................. 19,680 15 904 9,902 2,926 20,516 148,366 216,881 72,292 21,850 12,756 9,094 317 22?................ 20,335 81 943 10,012 2,924 20,558 148,613 216,515 71,171 21,763 12,749 9,014 371 29p...................... 21,134 336 932 9,596 2.930 20,662 148,699 216,499 72,032 21,668 12,649 9,019 334 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 1972 1971 1971 Mar. Mar. Mar. Mar. Mar. Mar. Feb. Jan. I IV III 2nd 1st 29 22 15 8 half half Durable goods manufacturing: Primary metals.................................... 2,063 2,076 2,077 2,043 2,046 36 32 -14 54 -162 -120 -282 145 Machinery............................................. 4,289 4,253 4,239 4,101 4,075 185 -78 -198 -91 -600 -231 -831 -218 Transportation equipment................ 2,676 2,651 2,654 2,608 2,632 -19 129 -96 14 -101 24 -77 -190 Other fabricated metal products... 1,733 1,709 1,723 1,672 1,676 93 25 -101 17 -259 -130 -389 197 Other durable goods.......................... 2,641 2,630 2,603 2,562 2,517 121 77 -52 146 -328 11 -317 258 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,666 2,691 2,733 2,772 2,774 -139 12 -100 -227 205 293 498 -709 Textiles, apparel, and leather........... 2,574 2,537 2,527 2,382 2,320 253 140 -112 281 -273 -31 -304 279 Petroleum refining.............................. 1,077 1,047 1,070 1,107 1,127 -58 6 -45 -97 56 -4 52 -404 Chemicals and rubber....................... 2,151 2,156 2,146 2,130 2,157 5 55 -163 -103 -437 -155 -592 66 Other nondurable goods................... 1,747 1,750 1,754 1,748 1,728 53 -4 -124 -75 -96 60 -36 -140 Mining, including crude petroleum and natural gas.............................. 3,670 3,675 3,657 3,642 3,642 66 -66 -137 -137 -17 204 187 -383 Trade: Commodity dealers................... 1,482 1,507 1,508 1,484 1,468 6 -154 -46 -194 460 72 532 -235 Other wholesale......................... 4,381 4,381 4,326 4,295 4,313 66 -57 -61 -52 132 392 524 208 Retail............................................ 4,381 4,204 4,265 4,199 4,187 219 85 -45 259 -340 81 -259 336 Transportation........................................ 5,613 5,619 5,578 5,592 5,579 40 15 -88 -33 -78 -246 -324 -30 Communication....................................... 1,240 1,257 1,222 1,245 1,251 -101 15 12 -74 -249 24 -225 231 Other public utilities.............................. 2,452 2,500 2,538 2,593 2,630 -184 7 -97 -274 176 349 525 -147 Construction............................................. 3,973 3,982 4,029 3,943 3,905 38 194 -76 156 77 106 183 182 Services...................................................... 8,240 8,205 8,153 8,076 8,041 218 111 37 366 276 13 289 187 All other domestic loans....................... 5,918 5,952 5,915 5,824 5,844 186 118 -40 264 305 305 610 118 Bankers’ acceptances.............................. 1,741 1,700 1,881 1,890 1,908 -146 -41 -366 -553 696 462 1,158 -555 Foreign commercial and industrial 3,314 3,254 3,285 3,241 3,234 127 -28 -10 89 254 324 578 238 Total classified loans.............................. 70,022 69,736 69,883 69,149 69,054 1,065 593 -1,922 -264 -303 1,803 1,500 -566 Total commercial and industrial loans. 83,795 83,462 83,517 82,702 82,597 1,305 730 - 2,010 25 335 1,279 1,614 463 See Note to table below. “TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1972 1971 1972 1971 1971 Industry Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. July I IV III II 2nd 29 23 26 29 24 27 29 25 28 half Durable goods manufactur­ ing: Primary metals..................... 1,342 1,330 1,315 1,362 1,406 1,495 1,524 1,481 1,534 -20 -162 -62 -43 -224 Machinery............................ 2,072 2,001 2,179 2,285 2,396 2,476 2,479 2,505 2,511 -213 -194 -57 -52 -251 Transportation equipment. 1,493 1,553 1,605 1,620 1,592 1,626 1,689 1,582 1,552 -127 -69 130 -54 61 Other fabricated metal products............................ 688 683 699 713 707 743 775 804 802 -25 -62 -39 82 -101 Other durable goods........... 1,145 1,118 1,117 1,135 1,162 1,204 1,214 1,269 1,239 10 -79 -19 16 -98 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 912 937 987 1,021 1,010 971 985 938 946 —109 36 17 -2 53 Textiles, apparel, and leather................................ 653 580 567 576 577 585 607 609 597 77 -31 10 -20 -21 Petroleum refining............... 757 818 848 892 867 900 857 841 901 -135 35 -34 -23 1 Chemicals and rubber........ 1,226 1,315 1,330 1,441 1,528 1,654 1,785 1,809 1,821 -215 -344 -32 -26 -376 Other nondurable goods.. 977 973 1,010 1,024 1,018 1,047 1,018 1,006 1,008 -47 6 -2 -79 4 Mining, including crude pe­ troleum and natural gas. 2,872 2,891 2,927 3,039 2,998 3,021 2,934 3,000 3,017 -167 105 -56 -130 49 Trade: Commodity dealers.. 125 132 119 115 104 116 109 117 101 10 6 12 17 18 Other wholesale......... 927 883 915 893 860 862 847 834 845 34 46 11 60 57 Retail............................ 1,340 1,352 1,349 1,383 1,429 1,475 1,471 1,450 1,416 -43 -88 57 3 -31 Transportation......................... 4,383 4,314 4,397 4,440 4,448 4,444 4,571 4,471 4,596 -57 -131 -26 -253 -157 Communication....................... 440 417 432 427 427 418 420 422 471 13 7 -48 66 -41 Other public utilities............... 1,160 1,191 1,305 1,316 1,292 1,304 1,272 1,180 1,141 -156 44 178 122 222 Construction............................ 1,417 1,327 1,257 1,244 1,255 1,240 1,192 1,202 1,225 173 52 5 107 57 Services...................................... 3,653 3,542 3,539 3,488 3,438 3,397 3,347 3,311 3,237 165 141 89 124 230 All other domestic loans .... 1,728 1,627 1,570 1,431 1,413 1,390 1,390 1,362 1,311 297 41 141 -21 182 Foreign commercial and in­ dustrial loans................... 1,939 1,898 1,995 2,076 1,956 1,940 1,892 1,950 1,908 -137 184 100 184 Total loans................................ 31,249 30,882 31 462 31,921 31,883 32,308 32,378 32,143 32,179 -672 -457 275 -6 -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 □ APRIL 1972 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder 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 Sept......................................................................................... 17.0 88.0 51.4 1.4 10.0 167.9 Dec.......................................................................................... 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar........................................................................................ 18.3 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—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 May........................................................................................ 13.7 52.9 24.1 1.2 5.5 97.4 June........................................................................................ 14.0 54.2 24.4 1.2 6.0 99.8 July......................................................................................... 14.1 54.7 24.8 1.2 5.4 100.3 Aug......................................................................................... 13.5 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 1.1 6.0 103.7 Feb.......................................................................................... 13.7 55.4 24.5 1.1 5.9 100.5 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 730 688 433 407 605 571 437 411 State member.... 207 188 147 129 All nonmember........................ 278 255 224 210 All member............. 937 876 580 536 278 253 223 209 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

APRIL 1972 o 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—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 Mar. 1.......... 2,936 1,711 1,225 1,647 353 1,294 8........... 2,890 1,735 1,155 1,665 369 1,296 15.......... 2,801 1,703 1,098 1,664 366 1,298 22........... 2,795 1,711 1,084 1,629 364 1,265 29........... 2,772 1,785 987 1,622 367 1,255 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 Held by— Based on- Placed End of period dealers directly Ex­ Others ports ports All Bank Bank For­ into from other related Other i 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 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 31,223 13,215 1,337 16,316 7,174 2,953535 2,276 2,681 1,561798 2,917348 255 3,827 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 31,115 392 12,608 1,356 16,759 7,494 2,927 2,382 545 112 253 4,203 2,889 1,479 3,126 448 11,288 1,285 16,451 7,645 2,80279,4722,355 451 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 30,057 11,494 1,338 16,771 8,377 2,641524 2,131 481 107 245 5,413 3,405 1,505 3,467 29,946 395 11,909 1,505 16,137 8,148 2,803 2,227 575 51 259 5,036 3,286 1,470 3,391 31,205 454 11,897 1,527 17,327 7,811 3,000 2,350 650 52 261 4,499 3,148 1,366 3,296 31,164 406 11,825 1.624 17,309 7,479 2,852 2,204 648 58 258 4,312 2,848 1,392 3,239 29,934 495 10.923 1.478 17,038 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 30,824 495 10.923 1.478 17,928 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 Feb................. 32,247 525 12,262 1.624 17,836 7,935 3,123 2,408 715 63 267 4,482 2,589 1,717 3,629 ^ 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 □ APRIL 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate Effective date Rate Effective date Rate Effective date 192 9 5J4-6 1954—Mar. 17.......... 3 1967—Jan. 26-27... 5V4-534 1971—Apr. 23., 5%-5*4 Mar. 27........... 5*4 May 11.. 5% 193 0 3*4-6 1955—Aug. 4........... 314 Nov. 20........... 6 July 6.. 5 *4-6 193 1 2%-5 Oct. 14.......... W 7.. 6 1 1 9 9 3 3 2 3 3 1 1 S 4 4 - - 4 4 1956—Apr. 13........... 33/4 1968— S A e p p r t . . 2 1 5 9. . . . . . . . . . . . . . . . . .. . . . 6 6 * 4 -614 O N c o t v . . 20 1 . . 5 5 V V 4 4-5% Aug. 21 , 4 Nov. 13........... 6*4 4. 5*4-5% 193 1 4 9 — 47 (Nov.) m 1957—Aug. 6 4*4 Dec. 1 2 8. . . . . . . . . . . .. . . . . . . . . . 6 63 * 4 4 22 8 . . 5 5 * H 4 -5V4 29. 5M-5% 1958—Jan. 22........... 4 1969—Jan. 7........... 7 Dec. 6. 5V4-53/8- Effective date A Se p p r t . . 2 1 1 1. . . . . . . . . . . . . . . . . .. .. . 3 4 *4 J M un ar e . 1 9 7. . . . . .. . . . . . . . . . . . . . . . 7 8 * * 4 4 27. 5* 5 4 * - 4 5 *4 1970—Mar. 25........... 8 31. 51/4 1947—Dec. 1 134 1959—May 18........... 4*4 Sept. 21........... 7H 1972—Jan. 3 5-51/8- Sept. 1........... 5 Nov. 12........... 7 X 5!4 1948—Aug.1.... 2 23........... 7 17. 4%-5i4 1960—Aug. 23........... 4% Dec. 22........... 6*4 24. 45/8-5 1950—Sept. 22. 21/4 1965—Dec. 6........... 5 1971—Jan. 6........... 6*4 Feb. 2 3 8 1 . . 4 4H-4V4- 1951—Jan. 8. 2% 15.......... 614 4% O D c e t c . . 1 1 7 9 . . 2 3 34 1966— J M un ar e . 2 1 9 0 . . . . . . . . . . . . . . . . . .. . . . 5 53 * 4 4 Feb. 1 1 8 6 . . . . . . . . . . . . . . . . . . . . . 5 6 34 Mar. 2 1 3 3. . 4 4% *4-4% Aug. 16.......... 6 Mar. 11........... 514-5^ 27. 454-4 %- 1953—Apr. 27. 31/4 19........... 514 5 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 Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1972 1971 1972 1971 1972 1971 1972 1971 1972 1971 1972 1971 Short-term 35 centers......................................... 5.52 6.18 7.08 7.51 6.44 7.05 5.76 6.51 5.44 6.26 5.31 5.93 New York City.......................... 5.35 5.86 6.47 7.33 5.92 6.79 5.27 6.17 4.97 5.99 5.38 5.78 7 other Northeast...................... 5.72 6.40 7.20 7.75 6.58 7.31 5.91 6.73 5.54 6.46 5.45 6.00 8 North Central......................... 5.37 6.13 6.72 7.13 6.21 6.89 5.60 6.45 5.46 6.13 5.17 5.95 7 Southeast.................................. 5.87 6.47 7.39 7.72 6.73 7.16 6.11 6.65 5.76 6.39 5.29 6.01 8 Southwest................................. 5.79 6.43 7.05 7.38 6.43 6.83 5.81 6.44 5.60 6.27 5.58 6.31 4 West Coast.............................. 5.39 6.21 7.41 7.93 6.69 7.29 6.08 6.64 5.46 6.65 5.07 5.92 Revolving credit 35 centers......................................... 5.24 5.98 6.60 7.24 6.16 6.74 5.60 6.16 5.31 6.01 5.18 5.94 New York City.......................... 5.07 5.94 6.06 6.78 5.51 6.52 5.34 6.02 5.22 5.85 5.05 5.94 7 other Northeast...................... 5.41 6.16 7.37 8.17 6.56 7.20 5.44 6.15 5.28 6.30 5.38 6.11 8 North Central......................... 5.67 6.10 7.14 7.21 5.95 6.79 5.55 6.22 5.32 5.93 5.73 6.09 7 Southeast.................................. 5.76 6.04 6.03 6.52 6.13 6.56 5.56 6.30 5.86 6.25 5.74 5.81 8 Southwest................................. 5.91 6.70 6.65 7.54 5.94 6.72 5.69 6.57 6.44 6.63 5.73 6.77 4 West Coast.............................. 5.13 5.88 6.67 7.65 6.36 6.69 5.72 6.10 5.10 5.94 5.04 5.84 Long-term 35 centers......................................... 5.64 6.44 6.98 7.55 6.85 6.95 6.19 6.79 6.13 6.57 5.44 6.35 New York City.......................... 5.35 6.36 5.75 6.39 5.77 6.24 5.83 6.40 5.62 6.50 5.29 6.35 7 other Northeast...................... 5.99 6.64 7.59 8.36 7.07 7.00 6.51 7.08 6.88 7.50 5.52 6.27 8 North Central......................... 5.42 6.58 6.39 7.69 6.75 7.38 6.08 6.79 6.04 6.32 5.17 6.53 7 Southeast.................................. 7.07 7.28 7.81 6.97 9.03 6.29 6.78 7.78 9.53 7.78 5.50 7.05 8 Southwest................................. 6.16 6.44 6.57 6.85 6.67 6.93 6.42 6.63 6.68 6.11 5.87 6.46 4 West Coast.............................. 5.80 6.20 7.55 8.16 6.24 7.19 6.02 6.64 5.04 6.16 5.87 6.12 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

APRIL 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 Finance Prime CO. Prime Period m 4 p c - o o a t n m p o t e h l 6 r . s - 1 d 3 p p i - r l a e a t p c o c t e e l 6 r d y - , 9 b a 0 a a c n n d c c k e a e e p y s r t , s s ­ 1 ’ F f r e u a d n t e e d r 3 s al Rat 3 e - m on o nth b M il a ls r 5 ket Ra 6 te -m o o n nth b M ill a s r 5 ket 9- 1 - to y e 1 a 2 r -month issues 3 is - y s t e u o a e r s 5 7 months2 new issue yield new issue yield bill (mar­ Other6 ket yield)5 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—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 Mar................... 4.17 4.03 3.95 3.83 3.723 3.72 4.086 4.12 4.42 4.54 5.74 Week ending— 1971—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 Mar. 4........... 3.90 3.80 3.60 3.18 3.446 3.44 3.762 3.78 4.17 4.19 5.60 11........... 4.00 3.88 3.73 3.43 3.553 3.56 3.796 3.86 4.21 4.22 5 57 18........... 4.20 4.03 4.03 3.88 3.845 3.85 4.195 4.25 4.51 4.64 5. ov 25........... 4.30 4.13 4.13 3.91 3.920 3.81 4.322 4.27 4.50 4.72 5.83 Apr. 1........... 4.33 4.20 4.13 4.09 3.849 3.82 4.354 4.36 4.67 4.89 5.92 1 4 Averages of daily offering rates of dealers. Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 INTEREST RATES □ APRIL 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 States (long­ Total1 term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 196 2 3.95 3.30 3.03 3.67 4 62 4 33 5.02 4.47 4 86 4.51 4.50 3.37 6 06 196 3 4.00 3.28 3.06 3.58 4 50 4 26 4.86 4.42 4 65 4.41 4.30 3.17 5 68 196 4 4.15 3.28 3.09 3.54 4 57 4 40 4.83 4.52 4 67 4.53 4.32 3.01 5 54 196 5 4.21 3.34 3.16 3.57 4 64 4 49 4.87 4.61 4 72 4.60 4.33 3.00 5 87 196 6 4.66 3.90 3.67 4.21 5 34 5 13 5.67 5.30 5 37 5.36 4.97 3.40 6 72 196 7 4.85 3.99 3.74 4.30 5 82 5 51 6.23 5.74 5 89 5.81 5.34 3.20 5 71 196 8 5.25 4.48 4.20 4.88 6 51 6 18 6.94 6.41 6 77 6.49 5.78 3.07 5 84 196 9 6.10 5.73 5.45 6.07 7 36 7 03 7.81 7.22 7 46 7.49 6.41 3.24 6 05 197 0 6.59 6.42 6.12 6.75 8 51 8 04 9.11 8.26 8 77 8.68 7.22 3.83 6 28 197 1 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—Ma r 5.71 5.26 5.00 5.56 7 84 7 21 8.46 7.36 8 39 8.08 6.48 3.10 s 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 s 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 s 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—Ja.................n 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 77 8.23 7.39 8 00 7.84 6.67 2.92 Mar............ 5.66 5.31 4.99 5.61 7 66 7 24 8.24 7.35 8 03 7.81 6.76 2.86 Week ending— 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 Mar. 4. .. 5.62 5.31 5.00 5.60 7 67 7 25 8.21 7.35 8 03 7.82 6.74 2.86 II . . . 5.62 5.18 4.90 5.50 7 66 7 24 8.22 7.34 8 02 7.81 6.80 2.82 18. . . 5.67 5.30 5.00 5.60 7 66 7 22 8.24 7.34 8 02 7.81 6.78 2.85 25... 5.68 5.35 5.00 5.65 7 67 7 24 8.26 7.36 8 04 7.82 6.71 2.87 Apr. I . . . 5.69 5.40 5.05 5.70 7 67 7 24 8.25 7.37 8 04 7.82 6.75 2.89 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: 1 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 27 Vi hours per week. homebuilders; and permanent loans that are coupled with construction In recent years shorter days and/or weeks have cut total weekly trading loans to owner-builders. Series beginning 1965, not strictly comparable to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- with earlier data. See also the table on Home-Mortgage Yields, p. A-55. Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3,20; July 7-Dec. 31­ 22.5; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 S v g t . ) . ­ S l a o t n c a d a te l p C or o a r t ­ e Total In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d i u al s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l l NYSE AMEX 196 2 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1,225 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 197 1 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—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 66.4 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—Ja............n 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 Mar....... 68.43 84.1 66.2 107.69 119.73 46.48 57.73 59.96 65.18 53.71 38.56 77.15 28.03 18,351 5,680 Week ending— Mar. 4 68.75 84.0 66.6 107.07 119.08 45.61 57.37 59.55 64.85 53.52 38.31 74.58 27.95 20,964 7,021 11 68.77 85.3 66.3 108.78 120.99 46.61 58.11 60.59 65.91 54.60 38.98 76.89 28.31 21,220 7,431 18 68.32 84.3 66.0 107.62 119.57 47.15 58.11 59.97 65.12 53.88 38.87 76.88 28.14 18,260 5,139 25 68.21 83.7 66.1 107.28 119.23 46.44 57.81 59.70 64.80 53.02 38.50 78.06 27.79 16,844 4,762 Apr. 1 68.14 83.3 66.0 107.04 119.08 46.19 56.95 59.60 64.79 53.21 37.92 78.26 27.82 13,951 3,795 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 & 1 s M (y a e t a u r r s i ) ty L r c p ( a o e p r t i n a e c i n t o r e ) / (t d h c o p o P h l r u u l a i a c s r s r . e ­ e s o ) f (t a d h L m o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t 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 o e p r t i n a e i c t n o r e ) / (t d h c o o p P h l r u u l a i a s c r s r . e ­ e s o ) f (t d a h L m o o l o u l o a s 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 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............... 7.62 .93 26.6 74.5 36.4 26.5 7.51 .80 24.6 74.6 32.5 23.9 1972—Jan.r............ 7.62 .95 26.5 75.0 37.3 27.6 7.45 .82 24.9 74.7 32.5 24.1 Feb............... 7.43 1.01 27.0 76.4 37.1 27.8 7.37 .75 25.0 75.5 32.8 24.3 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ APRIL 1972 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated : 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—Feb.. 5,174 4,311 863 4,090 776 186 70 35 1,121 1.205 484 2,259 Mar. 5,392 4,531 861 4,300 772 193 72 38 1,137 1.183 465 2,333 Apr. 5,598 4,776 822 4,530 739 206 67 40 1,122 1.206 445 2,216 May 5,701 4,874 827 4,620 754 213 57 41 1,122 1,235 431 2,084 June 5,783 4,976 807 4,720 733 213 58 43 1,228 1,263 415 2,023 July. 5,860 5,050 810 4,790 737 215 56 45 1,091 1.183 410 1,841 Aug. 5,917 5,121 796 4,850 723 227 58 44 1,208 1,206 405 1,838 Sept. 5,990 5,208 782 4,930 713 230 54 48 1,182 1,237 364 1,734 Oct.. 6,016 5,238 778 4,950 711 239 53 49 1,194 1,204 393 1,765 Nov. 5,995 5,198 797 4,910 731 242 51 46 1,193 1,209 412 1,758 Dec. 6,835 c5,700 835 c5,400 764 258 57 42 1,197 1,298 387 1,837 1972—Jan. 6,850 5,989 861 5,700 789 252 56 37 1,182 1,313 448 2,040 Feb., 7,427 6,477 950 6,180 877 256 56 41 1,170 1,327 434 2,108 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 d i m o o e o n b i f l l ­ s t ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period c s N t 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 tu s e s r t h c a e n n t o ( f b m T a d i l o o l a l t l i n a l o a c l n e r s s ) lars)1 1971 Feb......................... 49.1 44.2 6.7 4,380 1971—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 June........................ 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 Aug......................... 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.. c5,400 8.6 12.7 27.1 29.9 10.2 11.5 1972—Jan.......................... 36.8 55.9 7.3 5,780 1972—Jan... c5,700 8.7 13.5 27.1 32.6 8.5 9.6 Feb......................... 35.1 57.0 7.9 5,910 Feb.. 6,180 8.4 12.4 25.9 35.1 8.5 9.7 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

APRIL 1972 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 Total Other General classified by maturity End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r lia a t b i n e i d s li ­ D i e t p s o 2 s­ lia ti b e i s li­ r c e o s a u e c n r ­ v ts e (in months) govt. other1 general reserve accts. 3 or 3-6 6-9 Over Total less 9 1 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 54 238 48,849 989 4 400 2,820 1965................. 44,433 862 5,485 320 5,170 1,017 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................. 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 1972—Jan.*.. 62,258 3,225 3,261 433 18,417 1,246 1,801 90,641 82,326 1,962 6,352 1,045 676 409 1,442 3,572 1 Also includes securities of foreign governments and international data previously reported by NAMSB which were net of valuation reserves. organizations and nonguaranteed issues of U.S. Govt, agencies. For most items, however, the differences are relatively small. 2 See note 8, p. A-19. 3 Commitments outstanding of banks in New York State as reported to Note.—National Assn. of Mutual Savings Banks data; figures are the Savings Banks Assn. of the State of New York. Data include building estimates for all savings banks in the United States and differ somewhat loans beginning with Aug. 1967. from those shown elsewhere in the Bulletin; the latter are for call dates 4 Balance sheet data beginning Jan. 1972 are reported on a gross of and are based on reports filed with U.S. Govt, and State bank supervisory valuation reserves basis. The data differ somewhat from balance sheet agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd 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 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.r............................... 208,863 11,097 4,604 3,308 3,185 90,298 74,331 15,967 74,421 6,372 16,144 10,531 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 1972—Jan....................................... 223,312 11,325 4,594 3,535 3,196 101,350 80,087 21,263 75,517 7,097 17,074 10,949 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 □ APRIL 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o ge rt s ­ I s n i m e t v i c e e e u s n s r t 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 p L ro o i c a n e n s s s Other d p M u er r a i i d o n e d g O e p u in n e t g s d ri t o a a o d n t f d ­ 1961......................... 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1 872 1962......................... 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1 999 1 221 2 193 1963......................... 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2 572 1964......................... 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2 549 1965......................... 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2 707 1966......................... 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1,270 2,136 1 482 1967......................... 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3 004 1968......................... 130,802 i 11,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3 584 1969 5...................... 140,232 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—Feb............... 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.............. 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............... 156,343 18,264 3,132 9,723 187,462 157,721 12,010 8,602 3,868 5,261 3,370 7,359 May............. 158,516 18,615 2,986 9,976 190,093 159,881 12,027 7,745 4,327 6,113 3,505 8,300 June............ 161,209 18,571 2,769 10,002 192,551 162,986 12,336 7,874 4,725 4,630 3,537 8,545 July.............. 163,720 19,281 2,139 10,084 195,224 164,524 12,337 8,011 4,944 5,408 3,144 8,555 Aug.............. 166,111 18,972 2,077 10,312 197,472 165,633 12,329 8,203 5,023 6,284 2,880 8,311 Sept.............. 168,233 18,663 2,056 10,474 199,426 168,303 12,339 8,388 4,996 5,400 2,639 8,004 Oct............... 170,106 18,971 2,166 10,603 201,846 169,796 12,327 8,353 5,001 6,369 2,537 7,806 Nov.............. 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.r............ 175,838 19,691 2,785 10,926 209,240 177,738 13,250 8,053 4,874 5,325 2,508 7,510 Feb.?1........... 177,575 20,687 2,826 11,147 212,235 180,538 13,254 7,274 4,850 6,319 3,326 8,666 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 Ad­ Cash Mem­ Deben­ Loans Loans v m a b n t e e o c m rs e ­ s I m nv e e n s ts t­ p a o d n s e d i ­ ts B n a o o n n te d d s s po b d s e e i r ­ ts C s a to p c it k al M l g o ( a A a o g n r ) e s t­ n t a u ( o L n r t e e d ) s s c a o t ( o i A t v o p e ) e s r­ D t e u (L b re e ) s n­ co a d ( u A n is n d ) ­ ts D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1967 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969, 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 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--Feb... 9,926 4,187 105 9,182 3,094 1,619 15,448 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 16,304 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 2,098 1,867 5,785 5,537 7,970 7,063 Feb... 6,515 3,805 115 6,731 2,014 1,696 18,220 17,814 2,149 1,840 5,720 5,591 8,039 7,186 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

APRIL 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE 31NG ISSUES OF FEDERALLY SPONSORED AGENCIES, JANUARY 31, 19 Cou­ Amount Cou­ Amount pon (millions Agency, and date of issue pon (millions Agency, and date of issue illior rate of dollars) and maturity rate of dollars) and maturity lolla: Federal National Mortgage Federal intermediate Association—Cont. credit banks 8.15 200 Debentures—Cont: Debentures: 61/4 394 11/10/70 - 3/12/73... 7.30 450 6/1/71 -3/1/72.. 461 7% 250 12/12/69 - 3/12/73... 8.30 250 7/1/71 -4/3/72.. 394 5H 310 6/12/61 - 6/12/73.... 4'A 146 8/2/71 -5/1/72.. 614 8.35 350 7/10/70 - 6/12/73.... 8.35 350 9/1/72- 6/1/72.. 403 5.70 400 7/12/71 -6/12/73......... 6.75 550 10/4/71 - 7/3/72 435 4.20 400 3/10/70 - 9/10/73___ 8.10 300 11/1/71 - 8/1/72. 594 7.20 450 6/10/71 -9/10/73......... 6.13 350 12/1/71 - 9/5/72 529 8.40 300 12/10/70 - 12/10/73. . 5.75 500 1/3/72 - 10/2/72. 397 8.40 250 8/10/71 - 12/10/73.... 7.15 500 2/1/72 - 11/1/72. 624 7.10 300 12/1/71 - 3/11/74___ 5.45 400 3/2/70 - 3/1/73. 203 6.35 300 4/10/70 - 3/11/74. . .. 7.75 350 9/1/70-7/2/73. . 200 7.65 183 8/5/70 - 6/10/74........ 7.90 400 7/1/71 -1/2/74.. 212 8.00 229 11/10/71 - 6/10/74.... 5.70 350 1/4/71 - 7/1/74. 224 6.10 250 9/10/69 - 9/10/74.... 7.85 250 1/3/72 - 7/1/75.. 302 8.05 265 2/10/71 -9/10/74......... 5.65 300 7.95 300 5/10/71 - 12/10/74.... 6.10 250 6.50 350 9/10/71 - 12/10/74.... 6.45 450 7% 300 11/10/70 - 3/10/75. . . 7.55 300 6.95 200 10/12/71 - 3/10/75... 6.35 600 7.75 350 4/12/71 -6/10/75......... 5.25 500 7.80 200 10/13/70 - 9/10/75... 7.50 350 6.60 200 3/11/71 - 3/10/76......... 5.65 500 6/10/71 - 6/10/76......... 6.70 250 Federal land banks 2/10/72 - 6/10/76........ 5.85 450 Bonds: 11/10/71 - 9/10/76.. .. 6.13 300 2/23/71 -4/20/72.... 4.45 300 7/12/71 - 12/10/76.. .. 7.45 300 4/20/71 -4/20/72.... 4'A 437 2/13/62 - 2/10/77.... 4% 198 6/22/70 - 7/20/72. . . 8.20 442 12/10/70 - 6/10/77. . . 6.38 250 9/14/56 - 9/15/72... IV* 109 1.070 5/10/71 -6/10/77........ 6.50 150 9/22/69 - 9/15/72... 8.35 337 9/10/71 -9/12/77......... 6.88 300 10/23/72 - 10/23/72. 5Vh 200 6.00 250 10/12/71 - 12/11/78.. 6.75 300 7/20/71 - 10/23/72... 6.50 446 8.00 200 12/10/71 - 12/10/79. . 6.55 350 7/20/70 - 1/22/73. . . 7.95 407 4.38 250 2/10/72 - 3/10/80........ 6.88 250 2/20/63 - 2/20/73-78 4'A 148 1/21/71 - 6/10/81.. .. 7.25 250 1/20/70 - 7/20/73... 8.45 198 9/10/71 -9/10/81........ 7.25 250 8/20/73 - 7/20/73.... 7.95 350 2/10/71-6/10/82......... 6.65 250 4/20/70 - 10/22/73. . 7.80 300 7.50 400 3/11/71 -6/10/83......... 6.75 200 2/20/72 - 2/20/74... 4% 155 8.38 250 11/10/71 -9/12/83.... 6.75 250 10/20/70 - 4/22/74. . 7.30 354 8.63 200 4/12/71 -6/11/84......... 6.25 200 10/21/71 - 7/27/74. . 5.85 326 12/10/71 - 12/10/84. . 6.90 250 4/20/71 - 10/21/74... 5.30 300 2/20/70 - 1/20/75... 8 H 220 4/20/65 - 4/21/75. .. 4V8 200 6% 250 Banks for cooperatives 2/15/72 - 7/21/75 5.70 425 6Va 200 Debentures: 7/20/71 - 10/20/75... 7.20 300 100 10/4/71 - 4/3/72......... 5 Ys 295 2/21/66 - 2/24/76. . . 5.00 123 8.70 300 11/1/72 - 5/1/72........... 4.85 312 7/20/66 - 7/20/76.. . 5H 150 8.40 400 12/1/71 - 6/1/72......... 4 Vi 357 10/27/71 - 10/20/77. 6.35 300 7.40 200 1/3/72 - 10/1/73........... 4.65 346 5/2/66 - 4/20/78___ 5H 150 8.00 200 2/1/72 - 8/1/72............. 3.80 430 2/20/67 - 1/22/79... 5.00 285 7.20 400 10/1/70 - 10/1/73___ 7.30 100 2/23/71 -4/20/81.... 6.70 224 not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 FEDERAL FINANCE □ APRIL 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 meaps 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 i p ss e u c e ia s l Other balance Fiscal year: 196 8 153,671 172,802 6,030 178,833 -25,161 21,357 5,944 3,271 2,049 -1,119 23,100 -397 1,700 3,364 196 9 187,784 183,072 1,476 184,548 3,236 6,142 633 7,364 2,089 -1,384 -1,295 596 1,616 269 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 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.r. . 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 80 -2,122 Month: 1971—Fe b *-15,128 '16,696 -170 *•16,526 '1,398 2,324 -1,001 **1,463 *■-364 *•237 1,718 M53 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 Feb................ 15,239 18,589 175 18,764 -3,525 1.169 568 1,450 286 1 -4,018 -208 -702 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A et g e . n it c ie y s S i p s G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t c s e s i s a : 3 l E p T h q u b o e b u y t l l d a a i l l c s: s c p p o G r o N r i n o v p o s v s a w o . t t — . r e - e 6 d 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 *■39,860 Month: 1971 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 *■39,860 1972—Jan................ 2,860 8,118 5 134 11,112 422,862 10,570 84,037 22,522 825 326,017 *■39,701 Feb................ 884 6,075 134 7,094 424,032 11,137 85,486 22,839 825 326,019 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

APRIL 1972 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a t t a i x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Employment Estate Misc. Total taxes and Excise Cus­ and re­ W he i l t d h­ N w he i o t l h n d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s co P r n o ay t l r l ­ ibut S i e o l n f- s1 e in U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 2 t N ot e a t l taxes toms gift ceipts 3 empl. taxes Fiscal year: 196 8 153,671 57,301 20,951 9,527 68,72629,897 1,232 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 196 9 187,78470,18227,258 10,191 87,249 38,338 1,660 32,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,908 197 0 193,74377,416 26,236 13,24090,41235,037 2,208 37,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 197 1 188,39276,49024,262 14,52286,230 30,320 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 1,41625,558 7,464 1,168 2,148 1,615 July-Dee. 87,58437,465 5,569 56542,469 12,744 1,467 17,768 133 1,348 1,57620,826 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 1,63027,752 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 1,673 22,989 8,961 1,838 2,395 1,718 Month: 1971—Fe b *•15,128 r7,244 654 1,407 r6,491 683 310 4,835 141 721 248 5,943 r1,504 175 280 r363 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 Feb............ 15,239 7,581 682 1,416 6.846 878 212 4,774 147 545 274 5,740 819 224 596 347 Budget outlays4 Period Total t f i e N o d n e n a s ­ a ­ e l a I f n fa t i l r . s s S e p r a e a r ­ c c e h A t c u g u r r l e ­ i­ so N u u r 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 n d c n e a ­ r ­ w H e a e l n a f d a lt r h e e V ra e n t­ s In e t s e t r­ g G e o r e v a n t l . ­ t I t g i r n o a o a t c n n v r ­ a t s s . - ­ 5 Fiscal year: 1968........................................ 178,833 80,517 4,619 4,721 5,943 1,655 8,094 4,076 6,739 43,780 6,882 13,744 2,561 -4,499 1969........................................ 184,548 81,232 3,785 4,247 6,221 2,081 7,921 1,961 6,525 49,395 7,640 15,791 2,866 -5,117 1970........................................ 196,588 80,295 3,570 3,749 6,201 2,480 9,310 2,965 7,289 56,785 8,677 18,312 3,336 -6,380 1971....................................... 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 1973e 6................................... 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 10,014 2,147 -3,770 Julv-Dec................... 111,557 35,755 1,752 1,777 5,999 1,952 6,030 2,181 4,355 38,131 5,003 10,050 2,392 -3,822 Month: 1971—Feb............................. r16,526 '5,830 236 295 -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 Feb............................. 18,764 6,333 307 276 298 237 619 254 908 6,938 864 1,714 400 -385 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 □ APRIL 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p g u r b o l s i s c Marketable Con­ Nonmarketable i S ss p u e e c s ia 4 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n l r e d t­ s Total 3 bo S in n a g v d s ­ s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6 1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 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—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 Mar. 427.3 340.6 265.4 102.4 112.9 50.1 2.3 72.9 55.6 84.9 1 Includes ^non-interest-bearing debt (of which $624 million on Mar. 31, 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 ana 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 io o d f p T g d u r o e b o t b l s a i t s c l ag G t U e a r o n u n .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t s e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 O i m t n o t v i r h s e s c e s . ­ r 2 funds bonds securities 1939—Dec................. 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................. 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 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—Feb.................. 390.7 98.0 62.5 230.2 61.3 2.8 7.2 10.2 24.0 52.3 28.3 22.9 21.1 Mar................. 391.7 98.8 64.2 228.7 61.8 2.8 6.8 10.7 22.8 52.5 26.9 25.4 18.9 Apr.................. 391.9 99.1 63.7 229.1 60.5 2.8 6.8 9.9 21.8 52.8 26.2 29.2 19.1 May................ 396.8 101.8 64.8 230.2 59.4 2.9 6.8 9.6 21.8 53.0 25.0 33.8 18.1 June................ 398.1 102.9 65.5 229.7 61.0 2.9 6.6 10.1 21.4 53.2 24.8 32.7 17.2 July................. 405.3 104.9 65.8 234.6 60.5 2.9 6.7 11.6 21.9 53.4 24.8 35.4 17.3 Aug................. 414.6 107.3 66.9 240.4 59.5 2.8 6.7 10.9 21.1 53.6 24.5 42.7 18.6 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 Feb.................. 424.0 106.2 67.7 250.2 62.1 2.7 6.5 12.5 22.0 54.9 22.4 48.9 18.2 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 8 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

APRIL 1972 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 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 Feb. 29............................................................. 261,215 122,067 98,122 23,945 93,089 26,347 9,459 10,253 U.S. Govt, agencies and trust funds: 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 Feb. 29..................................................... 18,621 1,324 639 685 7,810 4,708 2,323 2,456 Federal Reserve Banks: 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 Feb. 29..................................................... 67,698 34,574 28,300 6,274 26,318 5,647 566 594 Held by private investors: 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 Feb. 29..................................................... 174,896 86,169 69,183 16,986 58,961 15,992 6,570 7,203 Commercial banks: 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 Feb. 29............................................ 48,971 14,868 6,928 7,940 27,384 6,035 490 195 Mutual savings banks: 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 Feb. 29............................................ 2,683 377 180 197 1,223 483 299 301 Insurance companies: 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 Feb. 29............................................ 5,575 659 309 350 1,441 1,024 1,369 1,082 Nonfinancial corporations: 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 IS 20 1972 Jan. 31............................................. 5,654 3,954 3,206 748 1,339 315 20 26 Feb. 29............................................ 5,830 4,411 3,217 1,194 1,119 258 16 27 Savings and loan associations: 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 Feb. 29............................................ 3,125 835 481 354 1,330 631 149 180 State and local governments: 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 Feb. 29............................................ 10,895 5,816 4,989 827 2,099 771 882 1,327 AH others: 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 Feb. 29............................................ 97,817 59,203 53,079 6,124 24,365 6,790 3,365 4,091 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 5,653 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 465 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 □ APRIL 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 All 1 year years years 10 years mercial other U.S. Govt, Other banks securities 1971—Feb.................................. 3,316 2,291 579 397 49 1,178 145 1,232 760 679 Mar................................. 3,072 2,122 506 388 57 1,036 143 1,204 688 567 Apr................................. 2,458 1,881 328 216 33 828 116 878 636 516 May................................ 2,322 1,695 406 192 29 837 100 742 643 480 June................................ 2,195 1,802 273 92 28 727 110 687 672 418 July................................. 2,484 2,103 280 74 28 814 131 837 702 471 Aug................................. 2,482 1,848 512 97 25 859 129 855 640 462 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 Feb.................................. 3,260 2,339 652 242 27 913 363 1,170 815 611 Week ending— 1972—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 Mar. 1......................... 2,969 2,483 354 105 28 677 342 1,198 753 571 8......................... 3,127 2,548 342 197 40 729 294 1,212 892 389 15......................... 2,951 2,200 435 296 19 731 464 968 788 417 22......................... 3,215 2,418 502 259 37 912 493 1,029 781 630 29......................... 3,324 2,569 556 179 21 852 490 1,012 970 404 Note.—The transactions data combine market purchases and sales of sales of securities under repurchase agreement, reverse repurchase (resale), U.S. Govt, securities dealers reporting to the F.R. Bank of New York. or similar contracts. Averages of daily figures based on the number of They do not include allotments of, and exchanges for, new U.S. Govt, trading days in the period. securities, redemptions of called or matured securities, or purchases or DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t i 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 sou A r 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—Feb.................. 4,655 3,320 569 691 75 946 1971—Feb.............. 5,684 1,673 1,318 369 2,324 Mar................. 4,421 3,511 437 404 70 981 Mar............. 4,543 1,356 926 399 1,862 Apr................. 4,870 4,019 415 416 20 1,118 Apr............. 5,700 1,759 1,415 724 1,802 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 July............. 3,516 1,151 391 721 1,254 Aug.................. 2,897 2,473 344 70 11 698 Aug............. 3,071 894 390 821 967 Sept................. 3,856 3,089 355 377 36 926 Sept............. 4,146 1,049 856 811 1,430 Oct................... 4,353 3,612 394 310 37 903 Oct.............. 4,511 1,188 704 921 1,699 Nov................. 5,846 3,725 914 943 265 1,063 Nov............. 6,455 1,877 932 1,564 2,082 Dec.................. 5,335 3,877 626 600 232 1,101 Dec............. 5,517 1,375 912 1,659 1,571 1972—Jan................... 5,561 4,665 437 365 94 847 1972—Jan.............. 5,714 1,296 904 1,750 1,763 Feb.................. 4,960 4,094 479 304 83 554 Feb.............. 5,205 1,456 719 1,344 1,686 Week ending— Week ending— 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 26......... 5,721 4,933 443 268 77 960 26. .. 5,846 1,494 1,070 1,781 1,501 Feb. 2......... 5,683 5,017 424 164 78 712 Feb. 2... 5,732 1.501 1,021 1,625 1,584 9......... 5,088 3,885 761 361 81 493 9... 5,811 1.556 865 1,539 1,852 16......... 4,299 3,364 508 340 87 508 16... 4,993 1.072 555 1,286 2,080 23 4,827 4,144 321 282 80 664 23... 4,583 1.387 580 1,271 1,345 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 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—Cont. Treasury notes—Cont. Treasury bonds Apr. 6, 1972................. 3,901 Sept. 7, 1972............. 1,800 Aug. 15, 1973.... 8H 1,839 June 15, 1967-72..2ft 1,227 Apr. 13, 1972................. 3,903 Sept. 14, 1972............. 1,801 Oct. 1, 1973....Aft 30 Sept. 15, 1967-72..2ft 1,951 Apr. 20, 1972................. 3,901 Sept. 21, 1972............. 1,801 Feb. 15, 1974.....7 Va 2,960 Dec. 15, 1967-72..2ft 2,550 Apr. 21, 1972f............... 4,033 Sept. 28, 1972............. 1,805 Apr. 1, 1974....• 1 ft 34 Aug. 15, 1972.... 4 1,453 Apr. 27, 1972................. 3,902 Sept. 30, 1972............. 1,702 May 15, 1974.....71/4 4,334 Aug. 15, 1973.... 4 3,894 Apr. 30, 1972................. 1,702 Oct. 31, 1972............. 1,700 Aug. 15, 1974.....5% 10,284 Nov. 15, 1973....• 4M, 4,340 May 4, 1972................. 3,902 Nov. 30, 1972............. 1,701 Oct. 1, 1974....Aft 42 Feb. 15, 1974....Aft 2,468 May 1972................. 3,901 Dec. 31, 1972............. 1,701 Nov. 15, 1974....• 5*4 7,212 May 15, 1974.....41/4 2,854 May 18, 1972................. 4,007 Jan. 31,1973............. 1,200 Feb. 15, 1975.....5V4 5,148 Nov. 15, 1974.....3% 2,237 May 25, 1972................. 4,001 Feb. 28, 1973............. 1,200 Feb. 15, 1975....• 5% 2,045 May 15, 1975-85.AVa 1,209 May 31, 1972................. 1,701 Mar. 31, 1973............. 1,201 Apr. 1, 1975....Aft 8 June 15, 1978-83..31/4 1,521 June 1, 1972................. 4,001 Apr. 6 to July 6, 1972, May 15, 1975.... 6 6,760 Feb. 15, 1980.....4 2,585 June 1972................. 4,002 strip........................... 2,860 Aug. 15, 1975.....5% 7,679 Nov. 15, 1980.....3 ft 1,901 June 15, 1972................. 4,002 Oct. 1, 1975....Aft 30 Aug. 15, 1981.....7 807 June 21, 1972f............... 3,026 Nov. 15, 1975.... 7 3,115 Feb. 15, 1982....• 6V* 2,197 June 22, 1972................. 4,002 Feb. 15, 1976.....6V4 3,739 May 15, 1985.....31/4 1,025 June 29, 1972................. 3,902 Treasury notes Apr. 1, 1976.... 27 Nov. 15, 1986....• 61/r 1,216 June 30, 1972................. 1,701 Apr. 1, 1972........lft 34 May 15, 1976....• 544 2,804 Aug. 15, 1987-92..4i/4 3,787 July 6, 1972................. 1,601 May 15, 1972.........4y4 3,676 May 15, 1976.... bft 2,697 Feb. 15, 1988-93..4 244 Julv 13, 1972................. 1,600 May 15, 1972........6% 1,377 Aug. 15, 1976.... 7V? 4,194 May 15, 1989-94.Aft 1,536 Julv 20, 1972................. 1,601 Aug. 15, 1972........5 2,574 Oct. 1, 1976.... \ft 9 Feb. 15, 1990.....314 4,449 Julv 27, 1972................. 1,603 Oct. I. 1972........lft 33 Nov. 15, 1976.... 61/4 1,283 Feb. 15, 1995.... 3 1,053 Julv 31, 1972................. 1,703 Nov. 15, 1972.........6 2,285 Feb. 15, 1977.... X 5,163 Nov. 15, 1998....•3ft 3,571 Aug. 3, 1972................. 1,600 Feb. 15, 1973.........6ft 2,514 Aug. 15, 1977.... m 2,264 Aug. 10, 1972................. 1,600 Feb. 15, 1973.........4% 4,268 Feb. 15, 1978.... 61/4 8,389 Convertible t>onds Aug. 17, 1972................. 1,801 Apr. 1, 1973.........lft 34 Nov. 15, 1978.... 6 8,207 Investment Series B Aug. 24, 1972................. 1,803 May 15, 1973.........7y4 5,844 Apr. 1, 1975-80. 2 y4 2,314 Aug. 31, 1972................. 3,496 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HA A1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E a d ti u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 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—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 Feb... 1,953 1,021 928 4 354 173 1,425 1.895 521 78 426 29 843 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 □ APRIL 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 agency3 (U.S.)4 Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 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 U ,460 961 26,744 18,347 12,734 5,613 682 7,714 1970....................... 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 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 May.......... 6,969 466 1,000 2,114 118 3,271 2,638 2,148 491 54 579 June.......... 10,994 2,779 1,812 1,988 40 4,375 3,042 2,283 760 104 1,228 July........... 9,316 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............ 8,353 412 2,169 1,882 113 3,777 2,694 2,390 304 180 903 Nov........... 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 1972—Jan............ 7,115 529 1,401 1,737 297 3,151 2,319 1,767 552 303 529 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 1970................................................... 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 1971................................................... 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1971 Jan......................................... 647 69 259 239 167 608 68 391 555 112 Feb........................................ 644 17 72 112 89 1 752 317 672 11 248 66 Mar....................................... 2,123 294 289 186 160 1 895 557 481 52 834 204 Apr........................................ 819 316 198 243 268 67 607 660 247 26 484 107 May...................................... 631 158 143 131 250 89 447 141 403 2 763 113 June...................................... 1,031 175 497 290 182 115 616 439 204 14 513 300 July....................................... 383 200 159 188 157 62 520 212 232 1,390 500 144 262 212 76 175 76 12 687 162 359 385 126 Sept....................................... 991 154 123 295 120 29 578 492 235 46 525 179 571 91 150 172 185 5 703 230 432 624 224 Nov....................................... 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 1972 Jan......................................... 307 7. 169 138 254 14 416 113 456 294 717 203 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ­ 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 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 1971......................... 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1970—IV................ 11,936 2,577 9,359 9,034 2,069 6,964 2,902 508 2,394 1971 I................... U,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 IV................ 11,488 2,521 8,967 8,019 2,084 5,935 3,469 437 3,032 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 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 1971......................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1970—IV................. 2,054 374 407 404 428 58 1,777 1,189 1,135 51 1,165 318 1971 I................... 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 IV................. 1,361 45.' 190 445 -27 163 1,749 1,183 980 54 1,683 734 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 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position3 1960............... 2,097 842 1,255 17,026 973 16,053 1971—Feb.. . 349 322 27 51,300 3,600 47,700 Mar... 468 425 43 53,618 3,328 50,290 1961............... 2,951 1,160 1,791 22,789 980 21,809 Apr... 547 394 153 55,883 3,046 52,837 1962................ 2,699 1,123 1,576 21,271 1,315 19,956 May.. 307 428 -121 53,610 2,607 51,003 1963............... 2,460 1,504 952 25,214 1,341 23,873 June.. 434 467 -33 53,560 2,830 50,730 July... 371 444 -73 51,424 2,856 48,568 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Aug... 432 394 38 53,798 3,016 50,782 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Sept... 304 471 -167 53,291 2,511 50,780 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Oct.... 596 419 177 51,160 2,885 48,275 Nov... 397 334 63 50,958 3,172 47,786 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Dec... 453 411 42 55,045 3,038 52,007 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 1972—Jan.... 521 475 46 56,694 3,163 53,531 Feb... 404 514 -110 58,536 3,478 55,058 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 □ APRIL 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................................................... 177,237 195,738201,399225,740243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 Profits before taxes......................... 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes............................ 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends......................................... 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.):2 Sales.................................................. 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes......................... 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes............................ 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends......................................... 2,527 2,729 3,027 3,082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.):3 Sales................................................... 112,341 122,094 123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 Profits before taxes......................... 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 Profits after taxes............................ 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 Dividends.......................................... 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales................................................... 16,427 19,038 20,134 22,109 24,593 5,184 5,389 5,737 5,799 5,714 5,923 6,631 6,325 Profits before taxes......................... 1,710 1,916 1,967 2,227 2,425 498 563 590 576 534 581 666 644 Profits after taxes........................... 896 1,008 1,041 1,093 1,171 255 260 285 293 261 275 314 321 Dividends......................................... 509 564 583 616 661 150 155 155 156 162 165 164 170 Chemical and allied products (20 corps.): Sales................................................. 18,158 20,007 20,561 22,808 24.494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 6,183 Profits before taxes....................... 2,891 3,073 2,731 3,117 3,258 760 807 806 744 844 875 818 721 Profits after taxes......................... 1,630 1,737 1,579 1,618 1,773 390 419 412 398 448 473 441 411 Dividends........................................ 926 948 960 1,002 1,031 236 236 243 287 252 251 254 274 Petroleum refining (16 corps.): Sales................................................ 17,828 20,887 23,258 24,218 25,586 5,890 6,013 6,100 6,214 6,107 6,610 6,264 6,605 Profits before taxes....................... 1,962 2,681 3,004 2,866 2,941 767 692 740 667 726 728 750 737 Profits after taxes.......................... 1,541 1,898 2,038 2,206 2,224 592 520 561 534 562 558 554 550 Dividends....................................... 737 817 1,079 1,039 1,123 253 255 258 273 282 273 282 286 Primary metals and products (34 corps.): Sales................................................. 26,548 28,558 26,532 30,171 33,674 7,150 8,427 7,461 7,133 7,671 8,612 8,448 8,943 Profits before taxes....................... 2,931 3,277 2,487 2,921 3,052 669 915 601 735 691 828 715 818 Profits after taxes......................... 1,689 1,903 1,506 1,750 1,912 376 550 343 482 431 504 435 542 Dividends........................................ 818 924 892 952 987 224 230 233 264 242 245 247 253 Machinery (24 corps.): Sales................................................. 25,364 29,512 32,721 35,660 38,719 8,371 8,864 8,907 9,517 8,957 9,757 10,542 9,463 Profits before taxes....................... 3,107 3,612 3,482 4,134 4,377 936 1,008 1,112 1,079 1,071 1,167 1,141 998 Profits after taxes.......................... 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends........................................ 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales............................................. 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes................... 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1,663 1,542 652 1,411 Profits after taxes..................... 3,294 2,877 1,999 2,903 2,604 783 847 330 943 806 750 342 706 Dividends................................... 1,890 1,775 1,567 1,642 1,723 364 364 364 550 365 436 366 556 Public utility Railroad: Operating revenue. . 10 208 10,661 10,377 10,859 11,451 2,611 2,758 2,708 2,782 2,741 2,916 2,836 2,958 Profits before taxes., 979 1,094 385 678 683 127 206 149 196 128 220 149 186 Profits after taxes. .. 815 906 319 565 461 112 174 110 169 98 173 98 92 Dividends.................. 468 502 538 515 488 117 132 100 166 116 136 100 136 Electric power: Operating revenue., 15,816 16,959 17,954 19,421 21,075 5,106 4,553 4,869 4,892 5,480 4,913 5,370 5,312 Profits before taxes. 4,213 4,414 4,547 4,789 4,938 1,351 1,040 1,271 1,125 1,384 1,065 1,366 1,123 Profits after taxes... 2,586 2,749 2,908 3,002 3,186 863 641 764 733 873 707 827 779 Dividends.................. 1,838 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 ^Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federal Reserve to include accounting methods and other reporting procedures. affiliated nonelectric operations. 2 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 3 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts. of American Telephone and Telegraph Co.) published reports of companies. and for two affiliated telephone companies. Dividends are for the 20 Railroad: Interstate Commerce Commission data for Class I line- operating subsidiaries and the two affiliates. haul railroads. All series: Profits before taxes are income after all charges and before Electric power: Federal Power Commission data for Class A and B Federal income taxes and dividends. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. Series have been temporarily discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ BUSINESS FINANCE A 51 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate 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 t e s s d ­ co c a n a l t l s i p o o u i w n t m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a t n a l i l s o p o u n i w t m a ­ l p ­ ances1 ances 1 1966. 84.2 34.3 49.9 20.8 29.1 39.5 1970—1.... 75.6 34.1 41.5 25.0 16.6 54.4 1967. 79.8 33.2 46.6 21.4 25.3 43.0 II... 75.8 34.5 41.3 24.9 16.4 55.7 III... 78.5 35.6 42.9 25.2 17.7 56.7 1968. 87.6 39.9 47.8 23.6 24.2 46.8 IV... 71.6 32.3 39.2 25.0 14.3 58.0 1969. 84.2 39.7 44.5 24.4 20.0 51.3 1970. 75.4 34.1 41.2 25.0 16.2 56.2 1971—1.... 83.0 38.3 44.8 25.6 19.2 59.4 1971 ^ 85.5 37.8 47.6 25.5 22.1 61.9 II . .. 86.9 39.1 47.8 25.4 22.4 61.0 III... 85.8 37.5 48.2 25.7 22.5 62.7 IV*.. 86.2 36.4 49.8 25.3 24.5 64.4 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 Govt. Inven­ Other Total Federal Other securi­ tories income ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1966................................. 188.2 442.6 49.3 15.4 4.5 205.2 143.1 25.1 254.4 4.4 179.0 18.3 52.8 1967................................. 198.9 470.4 54.1 12.7 5.1 216.0 153.4 29.0 271.4 5.8 190.6 14.1 60.8 1968................................. 212.0 513.8 58.0 14.2 5.1 237.1 165.8 33.6 301.8 6.4 209.8 16.4 69.1 1969................................ 213.2 555.9 54.9 12.7 4.8 261.0 184.8 37.8 342.7 7.3 238.1 16.6 80.6 1970—1........................... 213.3 561.0 52.9 12.5 4.7 264.5 188.0 38.5 347.7 7.2 238.4 18.0 84.2 II......................... 213.6 566.3 52.5 10.7 4.4 268.7 190.2 39.9 352.7 7.0 244.1 14.6 87.1 Ill....................... 214.0 567.6 53.7 9.3 4.2 270.0 191.8 38.5 353.6 6.8 243.0 15.4 88.3 IV....................... 217.0 572.1 56.9 9.7 4.2 268.1 194.4 38.8 355.2 6.6 244.5 15.9 88.1 1971 I........................... 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 IV....................... 235.7 601.8 63.0 13.0 3.5 277.9 201.3 43.0 366.1 4.9 247.4 19.5 94.4 ► Ill....................... 231.2 592.2 59.8 10.6 4.3 276.8 200.6 40.2 361.0 3.6 241.9 18.7 96.8 ► IV........................ 235.6 601.9 63.0 13.0 3.8 278.0 202.0 42.0 366.3 3.5 247.4 19.5 95.9 ► Change in series (in manufacturing sector), to be consistent with the Note.—Securities and Exchange Commission estimates; excludes change in the FTC Quarterly Financial Report series. banks, savings and loan assns., insurance companies, and investment 1 Receivables from, and payables to, the U.S. Govt, exclude amounts companies. offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Mining Commu­ Other1 T (S o . t A a . l Durable d N ur o a n bl ­ e R ro a a i d l­ Air Other Electric and G a o s th er nications A.R.) 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 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 ................ 19.56 3.43 3.60 .53 .45 .52 .35 3.15 .45 7.08 87.54 II 2............... 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 □ APRIL 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 period h A e o r l l s d l ­ tu i t n c i i s o a t n l i­ s1 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 ­ t F u i t i n c i n i s o 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 s o 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 s o a t n i n ­ s . 1 O h e o t r h l s d er ­ F w u H V n ri d A A tt e e - — r n ­ t C i v o e o n n n a ­ ­ l 1941........... 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945........... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1964........... 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965........... 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966........... 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967........... 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968........... 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 1969—I.... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 II. .. 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.5 123.4 101.0 22.4 96.6 286.2 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—1.... 429.4 340.7 28.6 60.1 29.8 9.8 20.0 399.6 268.5 223.8 44.7 r131.1 107.1 23.9 101.9 297.6 11... 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 24.5 103.2 302.0 111.. 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, lifd 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 holdings 2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in­ guar­ ven­ Total in­ guar­ 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 24 196 4 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 196 5 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1968—III. 63,779 40,251 7,768 2,657 29,826 19,771 3.757 52,496 46,051 15,367 11,945 18,739 6,329 116 IV., 65,696 41,433 7,926 2,708 30,800 20,505 3.758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1... 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II. . 69,079 43,532 8,060 2,743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19,898 6,908 117 III. 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV.. 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1... 70,854 44,568 7,888 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 III. 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21,654 7,671 103 IV.. 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—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

APRIL 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 1 Farm Total Total i F ns 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 1971 Jan......................................... 448 451 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 1972—Jan......................................... 503 475 37 16 393 28 81,056 75,517 10,722 4,986 53,704 5,539 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 (I) 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 outsl anding Loans made Loans outstanding (end of period) (end of period) Members Ad­ Repay­ deposits Period vances ments (end of New Total Short­ Long­ period) Period home Home FHA- VA- Con­ term 1 term 2 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 1 %V 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 196K 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--Feb.............. 27 428 9,926 2,697 7,230 3,093 1970. 21,387 4,150 10,239 150,562 10,195 8,507 131,860 71 1,492 8,269 2,226 6,043 2,828 151 1,151 7,267 2,322 4,945 2,376 1971--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 1,143 154,430 12,123 8,922 134,320 July............. 309 213 7,338 2,544 4,794 1,696 Apr.. 3,168 597 1,306 156.574 11,560 9,128 135,886 358 183 7,514 2,812 4,702 1,528 May. 3,438 620 1,451 158,747 11,885 9,299 137,563 Sept............. 327 203 7,637 2,844 4,793 1,522 June. 4,301 718 2,109 161,440 12,273 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 2,225 166,342 12,852 10,034 143,456 490 262 7,936 3,002 4,934 1,789 Sept.. 3,672 628 1,951 168,464 13,130 10,232 145,102 Oct.. 3,405 609 1,717 170,106 13,278 10,374 146,454 1972- 186 885 7,238 2,569 4,669 1,948 Nov.. 3,298 589 1,661 172,047 13,521 10,582 147,944 Feb.............. 148 871 6,515 2,342 4,173 2,014 Dec.. 3,592 573 1,590 174,385 13,798 10,848 149,739 1972—Jan.r. 2,632 481 1,253 175,838 13,976 11,013 150,849 1 Secured or unsecured loans maturing in 1 year or less. Feb.. 2,834 514 1,400 177.575 14,143 11,240 152,192 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 □ APRIL 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 Multifamily1 underwritten Con­ E pe n r d io o d f Total F i i n c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i i c n 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 ­ 1 ti v o e n n a ­ l tutions tutions 1 1 1 9 9 9 4 4 6 5 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 1 4 . . . 3 2 2 1 1 1 7 5 4 6 . . . 7 9 7 3 9 8 4 . . .5 4 6 2 5 5 9 . . . 9 7 0 2 3 3 0 . . .7 6 5 2 2 8. . . 3 2 2 1 1 1 9 9 9 5 6 6 4 4 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 8 9 8 2 7 . . . 6 2 6 6 6 4 5 9 . . . 3 2 9 3 3 4 8 5 . . . 1 3 0 3 3 0 0 . . . 9 9 2 1 1 1 2 1 4 8 6 . . . 3 3 3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 1965.................................. 212.9 73.1 42.0 31.1 139.8 1966.................................. 223.6 76.1 44.8 31.3 147.6 1965................ 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 p ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 6 8 4 0. . 0 0 2 22 3 3 6 . . 7 6 4 4 0 3 . . 3 4 4 4 0 3 . . 3 9 3 3 1 4 . . 5 7 8 9 . . 8 2 1968*................................ 251.2 84.4 50.6 33.8 166.8 1968p.............. 298.6 250.8 47.8 47.3 37.7 9.6 1969—1............................. 254.8 85.3 51.4 33.9 169.6 1969— I I V II . _ .. _ .. _ ... 3 3 1 1 4 9 . . 1 0 2 2 6 6 5 2. . 7 0 5 5 1 4 . . 4 0 5 5 0 2 . . 6 2 4 41 0 . . 3 2 1 1 0 0 . . 9 4 I I I V l I l .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 26 6 5 3 9 6 . . . 5 8 5 8 9 8 8 7 0 . . . 1 8 2 5 5 5 2 4 3 . . . 2 5 4 3 3 3 5 4 5 . . . 7 9 5 1 1 1 7 7 7 2 6 4 . . . 3 6 6 1970— I I 1 I V I l .. l . . . . . _ . . . . . . _ . . . . . . _ . . . . . . . . . 3 3 3 3 2 2 3 3 1 6 2 8 . . . . 3 7 2 2 2 2 2 2 7 6 6 7 2 5 8 7 . . . . 8 9 9 2 6 5 5 5 1 5 9 7 . . . . 8 4 0 4 5 5 5 5 6 8 4 3 . . . . 1 0 5 2 4 4 4 4 4 5 2 3 . . . . 3 8 9 2 1 1 1 1 1 2 1 0 . . . . 8 2 3 3 1970— I I I 1 V l I .. l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 6 7 7 8 8 1 6 0 . . . . 5 7 2 0 9 9 9 9 5 1 2 7 . . . . 1 6 3 2 5 5 5 5 6 5 8 9 . . . . 1 1 6 9 3 3 3 3 7 6 6 7 . . . . 3 0 0 0 1 1 1 1 7 7 8 8 6 2 9 1 . . . . 9 9 6 0 1971—1........... 343.3 281.6 61.7 59.7 47.2 12.5 1971 I.............................. 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. i 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 Mortgages Mortgages Total 30 days 60 days o 9 r 0 m da o y r s e 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 * m pr i e m o n v ­ t e s ­ 2 Total 3 h N om ew es h i o s 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 . . 5 6 5 0 . .3 3 1 8 . . 3 38 4 1965................ 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 1969................. 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— Dec.. 1,351 280 472 549 50 316 109 207 II......... 2.89 2.23 .44 .22 .28 Ill___ 2.93 2.23 .48 .22 .26 1971—Jan... 999 295 476 187 41 297 102 195 IV___ 3.17 2.43 .51 .23 .26 Feb.. 951 284 450 185 32 256 90 166 Mar.. 1,097 318 531 202 46 303 98 205 1969—1........... 2.77 2.04 .49 .24 .26 Apr.. 1,136 293 467 330 46 350 98 252 II......... 2.68 2.06 .41 .21 .25 May. 1,203 290 504 354 55 417 111 306 III.... 2.91 2.18 .47 .26 .25 June. 1,372 322 629 399 21 519 127 392 IV___ 3.22 2.43 .52 .27 .27 July.. 1,34C 338 646 304 53 561 135 426 Aug.. 1,393 407 710 216 60 577 146 431 1970—1........... 2.96 2.14 .52 .30 .31 Sept.. 1,242 320 543 290 89 693 188 506 II......... 2.83 2.10 .45 .28 .31 Oct. . 1,202 318 504 276 105 Ill___ 3.10 2.26 .53 .31 .25 Nov.. 1,220 358 511 273 77 757 226 526 IV........ 3.64 2.67 .61 .36 .33 Dec.. 1,598 358 502 691 47 685 220 465 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 totals. 2 3 I N n o cl t u o d r e d s i n a a r s i m ly a l s l e c a u m re o d u n b t y o m f o a r l t t g e a ra g t e i s o . n and repair loans, not shown separ­ rep N o o rt t s e . o — n M 1 o - r t 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 ­ ately; only such loans in amounts of more than $1,000 need be secured. ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured savings and loan associations. 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

APRIL 1972 □ 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 e r r a i i d o n e d g st O i a n n u g d t ­ Total F su H in re A ­ d - a g n V u t A e a e r - ­ d c P ha u s r e ­ s d p M u e r r a i i d n o e g d st O i a n n u g d t ­ 1967. 3,348 2,756 592 860 1,045 1,171 196 7 5,522 4,048 1,474 1,400 12 1,736 501 1968. 4,220 3,569 651 1,089 867 1,266 196 8 7,167 5,121 2,046 1,944 2,697 1,287 1969. 4,820 4,220 600 827 615 1,130 196 9 10,950 7,680 3,270 4,121 6,630 3,539 1970. 5,184 4,634 550 621 897 738 197 0 15,502 11,071 4,431 5,078 8,047 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 4,926 June. 5,275 4,751 524 43 424 1,247 June. 15,363 10,970 4,393 239 10 1,294 5,750 July.. 5,282 4,761 520 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. . 17,202 655 5,208 Nov.. 5.260 24 Nov.. 17,535 406 893 5,466 Dec.. 5,294 32 Dec.. 17,791 350 1,014 5,694 1972-Jan... 5,287 1972-Jan... 17,977 281 574 5,558 Feb.. Feb.. 18,220 324 578 5,696 Note.—Government National Mortgage Assn. data. Data prior to Note.—Federal National Mortgage Assn. data. Total holdings include Sept. 1968 relate to Special Assistance and Management and Liquidating conventional loans. Data prior to Sept. 1968 relate to secondary market portfolios of former FNMA and include mortgages subject to participation portfolio of former FNMA. Mortgage commitments made during the pool of Government Mortgage Liquidation Trust, but exclude conven­ period include some multifamily and nonprofit hospital loan commit­ tional mortgage loans acquired by former FNMA from the RFC Mortgage ments in addition to 1- to 4-family loan commitments accepted in FNMA’s Co., the Defense Homes Corp., the Public Housing Admin., and Com­ free market auction system, and through the FNMA-GNMA Tandem munity Facilities Admin. Plan (Program 18). 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) home New Existing homes loans homes homes In millions of In In millions of In dollars per cent dollars per cent 1968......................... 6.97 7.03 7.12 7.21 1969......................... 7.81 7.82 7.99 8.26 1971 Sept. 20.......... 437.5 193.0 7.89 1970......................... 8.44 8.35 8.52 9.05 1971......................... 7.60 7.54 7.75 7.70 365.1 194.8 7.89 18 . . 219.8 103.6 7.85 1971 Feb.............. 7.91 7.80 7.75 Mar.............. 7.66 7.60 7.60 7.32 126.0 56.4 7.79 Apr.............. 7.49 7.47 7.55 7.37 15 ... 145.2 102.0 7.71 May............. 7.47 7.45 7.65 7.75 29 ... 210.6 101.1 7.67 June............. 7.50 7.50 7.70 7.89 July............. 7.66 7.63 7.80 7.97 232.5 70.2 7.63 Aug.............. 7.74 7.71 7.85 7.92 27 ... 222.7 148.1 7.63 Sept.............. 7.83 7.76 7.85 7.84 Oct............... 7.84 7.75 7.80 7.75 1972 Jan. 10 .... 136.9 72.9 7.62 Nov.............. 7.79 r7.69 7.75 7.62 24 ... 103.6 54.9 7.61 Dec.............. rl .11 r7.64 7.70 7.59 Feb. 7............ 88.7 63.9 7.61 62.4 34.9 7.74 1972—Jan............... r7.78 r7.58 7.60 7.49 22............ 68.6 44.8 7.61 21.1 11.5 7.64 Feb.............. 7.60 7.49 7.60 7.46 Mar. 6............ 86.9 50.6 7.56 10.1 5.5 7.64 20 ___ 202.9 86.2 7.54 7.61 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 □ APRIL 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 * 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—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 Oct................................... 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 Jan................................... 135,830 108,826 38,111 32,096 4,319 34,300 27,004 10,324 8,929 7,751 Feb.................................. 135,253 108,634 38,239 31,615 4,332 34,448 26,619 10,433 8,141 8,045 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and, Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- and pp. 983-1003 of the Bulletin for Dec. 1968. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Mis­ Auto­ Other Total mercial Finance Credit cellaneous Total mobile retail banks cos. 1 unions lenders 1 dealers 2 outlets 1939. 4,503 3,065 1,079 1,836 132 18 1,438 123 1,315 1941. 6,085 4,480 1,726 2,541 198 15 1,605 188 1,417 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960, 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965, 71,324 61,533 28,962 24,282 7,324 965 9,791 315 9,476 1966. 77,539 66,724 31,319 26,091 8,255 1,059 10,815 277 10,538 1967 80,926 69,490 32,700 26,734 8,972 1,084 11,436 285 11,151 1968, 89,890 77,457 36,952 29,098 10,178 1,229 12,433 320 12,113 1969. 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 12,851 1970. 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1971. 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1971--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 May....................................................... 100,692 87,491 42,482 30,441 12,874 1,694 13,201 334 12,867 June....................................................... 101,862 88,544 43,011 30,609 13,206 1,718 13,318 339 12,979 July....................................................... 102,848 89,458 43,509 30,906 13,296 1,747 13,390 344 13,046 104,060 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--Jan......................................................... 108,826 93,668 45,878 31,948 14,062 1,780 15,158 359 14,799 Feb........................................................ 108,634 93,955 45,963 31,979 14,126 1,887 14,679 360 14,319 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with “other retail outlets.” cellaneous lenders include savings and loan associations and mutual See also Note to table above, savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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) Autornobile Repair paper Other and Other Repair E p n er d i o o d f Total Pur­ s g c u o o m o n d e ­ s r m iz l o o a d a ti e n o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s g c u o o m o n d e ­ s r m iz o a a n d ti d e o r n n­ s l P o o a e n n r a ­ s l chased Direct paper paper loans 1939. 1,079 237 178 166 135 363 1939.................................. 1,836 932 134 151 619 1941. 1,726 447 338 309 161 471 1941.................................. 2,541 1,438 194 204 705 1945 745 66 143 114 110 312 1945.................................. 910 202 40 62 606 1950, 5,798 1,177 1,294 1,456 834 1,037 1950.................................. 5,315 3,157 692 80 1,386 1955, 10,601 3,243 2,062 2,042 1,338 1,916 1955.................................. 11,838 7,108 1,448 42 3,240 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--Feb.... 41,446 12,165 7,561 8,535 2,704 10,481 1971—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 July....................... 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 15,233 197?,--Jan.... 45,878 12,957 8,734 9,783 2,835 11,569 1972—Jan......................... 31,948 10,197 6,501 108 15,142 Feb.... 45,963 13,007 8,763 9,769 2,824 11,600 Feb........................ 31,979 10,207 6,508 107 15,157 See Note to first table on preceding page. Note.—Finance companies consist of those institutions formerly clas­ sified as sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards1 1939................................... 150 27 5 12 106 banks insti­ 1941.................................. 213 47 9 11 146 tutions 1945................................... 121 16 4 10 91 1950................................... 692 159 40 102 391 1939................. 2,719 625 162 1,414 518 1955................................... 1,959 560 130 313 956 1941................. 3,087 693 152 1,645 597 1960.................................. 4,566 1,460 297 775 2,034 1945................. 3,203 674 72 1,612 845 1965.................................. 8,289 3,036 498 933 3,822 1950................ 6,768 1,576 245 3,291 76 1,580 1966.................................. 9,314 3,410 588 980 4,336 1955................ 9,924 2,635 367 4,579 216 2,127 1967.................................. 10,056 3,707 639 1,006 4,704 1960................ 13,173 3,884 623 4,893 436 3,337 1 1 1 9 9 9 7 6 6 0 8 9 . . . . . .. . . . . .. . .. . .. . . . . .. . .. . .. . . . . .. . .. . .. . . . . .. . .. . .. . .. . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . 1 1 1 2 1 4 , , , 4 9 0 4 0 4 3 7 6 5 4 4 , , , 2 2 80 1 0 3 9 2 7 8 8 2 2 9 7 9 8 1 1 1 , , , 0 1 2 9 8 5 3 3 6 5 6 6 , , , 1 3 6 2 7 9 2 4 0 1 1 9 9 6 6 5 6 2 1 0 8 . , 0 9 0 9 4 0 6 6 , , 6 9 9 4 0 6 1,0 9 2 81 6 5 5 , , 8 7 1 2 2 4 7 8 0 7 6 4 4 5 , , 8 3 8 4 9 6 1971................................... 15,970 5,916 1,022 1,385 7,647 196 7 21,206 7,340 1,088 5,939 1,029 5,810 196 8 23,301 7,975 1,163 6,450 1,305 6,408 1971 M Fe a b r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4 , , 9 1 5 2 3 6 5 5, , 2 1 1 4 5 8 9 8 0 8 1 9 1 1 , , 2 2 6 5 0 4 6 6 , , 7 66 5 2 0 1 1 9 9 6 7 9 0 2 25 4 , , 6 3 4 0 1 0 7 8 , . 9 20 0 5 0 1 1 , , 1 2 9 7 6 9 6 6 , , 6 93 5 2 0 1 1 , . 5 91 8 8 4 6 7, , 3 9 0 7 7 0 Apr........................ 14,342 5,292 914 1,277 6,859 197 1 27.692 8.916 1.384 7.597 2,221 7.574 May...................... 14,568 5,372 927 1,297 6,972 June....................... 14,924 5,510 952 1,320 7,142 1971—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 Feb........................ 16,013 5,902 1,019 1,401 7,691 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 te s .— len O de th rs e . r financial lenders consist of credit unions and miscel­ 1972—J F a e n b . . . . . . . . 2 26 7 , . 6 0 1 0 9 4 9 8 , , 0 9 0 3 8 7 1 1 . , 3 4 8 2 7 5 6 6 , , 7 00 1 8 9 2 2 , ,1 2 3 1 3 0 7 8 , , 7 0 5 4 1 5 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 □ APRIL 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.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. Extensions 1965. 78,586 27,227 22,750 2,266 26,343 1966. 82,335 27,341 25,591 2,200 27,203 1967. 84,693 26,667 26,952 2,113 28,961 1968. 97,053 31,424 30,593 2,268 32,768 1969. 102,888 32,354 33,079 2,278 35,177 1970. 104,130 29,831 36,781 2,145 35,373 1971 . 117,638 34,638 40,979 2,550 39,471 1971—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 Feb. 10,339 8,902 3,046 2,762 3,698 2,926 243 202 3,352 3,012 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 1 19 9 7 6 0 9 ). .. ........................... 1 9 01 4 ,6 1 0 3 9 8 2 30 9 ,8 9 8 4 2 3 3 34 0 , , 4 3 4 6 1 9 2 2 ,1 0 6 7 3 5 3 3 2 3 6 1 7 9 9 5 1971 . 109,254 31,818 38,481 2,304 36 651 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 Jan................................... 9,547 9,485 2,761 2,669 3,501 3,648 201 193 3,084 2,975 Feb.................................. 9,373 9,094 2,693 2,634 3,408 3,407 200 189 3,072 2,864 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—Feb.. 102 -857 51 -135 -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 Feb.. 966 -192 353 128 290 -481 43 13 280 148 1 Includes adjustments for differences in trading days. purchases and sales of instalment paper, and certain other transac­ 2 Net changes in credit outstanding are equal to extensions less tions may increase the amount of extensions and repayments repayments. without affecting the amount outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often Credit,” Section 16 (New) of Supplement to Banking and Monetary include financing charges. Renewals and refinancing of loans, Statistics, 1965, and pp. 983-1003 of the Bulletin for Dec. 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 1966............................................ 82,335 30,073 25,406 10 362 16 494 1967............................................. 84,693 30,850 25,496 10,911 17 436 1968............................................ 97.053 36,332 28,836 12,850 19 035 1969............................................ 102,888. 38,533 30,854 14,245 19 256 1970............................................. 104,130 39,136 29,662 14 619 20 713 1971............................................ 117,638 45,099 32,036 17,312 23 191 1971—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 Feb.................................. 10,339 8,902 3,947 3,539 2,666 2,354 1,602 1,465 2,124 1,544 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—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 Feb.................................. 9,373 9,094 3,538 3,454 2,463 2,323 1.377 1,294 1,995 2,023 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—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 Feb.................................. 966 -192 409 85 203 31 225 171 129 -479 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. □ APRIL 1972 MARKET GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ aver­ tion age* Feb. Mar. Apr. May June July Aug. Sept. Nov. Dec. Jan. Feb. Total index. 100.00 106.4 105.7 105.5 106.2 107.0 107.2 106.1 105.3 106.2 106.4 107.0 107.6 108.2 108.9 Products, total.................. 62.21 106.2 105.0 104.5 105.5 105.9 106.1 106.8 106.2 106.2 106.9 107.6 107.5 108.1 108.5 Final products............... 48.95 104.4 103.0 102.5 103.6 103.9 104.5 104.9 105.0 104.6 105.3 105.9 105.6 106.2 106.7 Consumer goods.... 28.53 115.5 112.9 112.7 114.6 115.7 116.1 116.0 116.0 115.0 116.9 118.2 117.9 118.5 119.3 Equipment................ 20.42 88.9 89.3 88.4 88.1 87.8 88.2 89.3 89.6 90.2 89.0 88.8 88.5 88.7 89.1 Intermediate products. 13.26 112.8 112.5 112.0 112.4 113.5 112.4 113.8 110.7 112.5 113.0 114.0 114.7 115.0 115.3 Materials........................... 37.79 106.8 106.8 107.1 107.5 108.9 109.0 105.3 104.0 106.2 105.6 106.0 107.6 108.4 109.4 Consumer goods Durable consumer goods............... 7.86 114.3 110.6 111.6 112.2 117.2 116.1 115.8 115.8 113.6 115.3 115.5 116.4 116.8 118.2 Automotive products................ 2.84 119.4 117.8 117. 113.7 123.1 121.2 120.1 121.1 118.0 119.6 119.6 119.8 116.5 117.5 Autos........................................ 1.87 108.3 112.8 112.2 103.2 108.3 107.9 107.9 108.5 108.0 107.8 109.2 109.4 102.8 106.4 Auto parts and allied goods. .97 140.8 127.4 128.6 133.9 151.4 146.8 143.6 145.2 153.4 142.2 139.7 139.6 143.0 138.4 Home goods................................. 5.02 111.5 106.5 108.2 111. 4 113.9 113.3 113.5 112.9 111.1 112.9 113.4 114.7 117.0 118.5 Appliances, TV, and radios. 1.41 111.2 102.5 107.9 116.4 120.7 116.9 115.0 112.1 105.7 110.7 113.4 116.0 123.1 121.9 Appliances and A/C......... .92 127.2 117.6 124.9 126.0 132.1 129.3 126.0 128.0 121.7 131.1 135.5 134.5 142.3 145.3 TV and home audio.......... .49 81.4 74.0 76.1 98.6 99.4 93.9 94.5 82.4 75.6 72.6 71.8 81.3 87.1 78.3 Carpeting and furniture.... 1.08 112.9 110.1 108.3 110.7 111.7 113.6 114.8 114.7 116.1 115.3 117.3 116.0 117.8 118.4 Misc. home goods................. 2.53 111,0 107.5 108.1 109.0 111.1 111.2 112.0 112.5 112.1 113.1 111.7 113.4 113.1 116.7 Nondurable consumer goods............. 20.67 116.0 113.8 113.1 115.5 115.1 116.1 116.1 116.1 115.6 117.5 119.3 118.5 119.2 119.7 Clothing........................................... 4.32 101.4 97.3 96.9 101.0 102.6 101.9 102.4 100.3 102.5 103.5 103.6 104.9 105.5 Consumer staples........................... 16.34 U9.8 118.1 117.4 119.4 118.5 119.9 119.8 120.2 119.1 121.2 123.5 122.1 122.9 123.5 Consumer foods and tobacco. 8.37 113.2 112.6 111.8 112.7 113.2 113.5 112.0 112.6 110.4 113.9 117.2 114.6 115.6 115.5 Nonfood staples........................... 7.98 126.8 123.9 123.2 126.4 124.2 126.5 128.0 128.4 128.2 128.9 130.1 130.0 130.5 131.8 Consumer chemical products. 2.64 133.2 131.8 131.6 134.0 133.2 130.9 133.1 133.1 133.5 131.7 136.9 134.0 136.5 138.8 Consumer paper products___ 1.91 107. 104.6 103.0 108.2 105.0 109.9 106.9 106.2 109.2 110.3 111 114.8 115.6 116.9 Consumer fuel and lighting.. 3.43 132.4 128.9 127.9 130.5 128.0 132.5 135.9 137.2 134.7 137.1 135.2 135.7 134.3 134.6 Residential utilities.............. 2.25 140.1 135.2 133.2 136.4 135.1 140.6 145.1 146.2 144.2 147.0 144.5 144.5 141.8 142.0 Equipment Business equipment....................... 12.74 96.0 96.0 95.0 95.1 94.4 95.0 96.3 96.8 97.8 97.4 97.0 96.6 97.5 97.6 Industrial equipment............... 6.77 92.3 93.4 92.4 92.4 90.9 90.9 91.8 92.0 92.4 92.6 93 92.8 93.1 93.5 Building and mining equip. 1.45 92.9 94.3 92.4 91.2 91.5 88.8 88.9 96.4 96.6 95.5 95.2 94.0 97.7 99.4 Manufacturing equipment. 3.85 81.4 82.2 81.3 82.1 79.5 80.1 81.1 79.9 80.5 81.1 81.3 81.0 80.3 80.2 Power equipment................. 1.47 120.5 121.7 121.5 120.5 120.2 121 122.7 119.7 119.5 119.7 122.2 122.2 121.9 122.5 Commercial, transit, farm eq*. 5-97 100.1 99.0 98.0 98.2 98.4 99 101.5 102.2 103.8 102.8 101.3 100. 102.6 102.2 Commercial equipment......... 3.30 108.4 107.0 106.6 107.1 107.6 107.6 109.9 109.9 112.0 111.0 109.1 106.9 108.6 109.6 Transit equipment................. 2-00 89.o 89.1 87.2 87.3 87.3 90 88.4 90.2 90.2 90.4 6 92.1 94.1 92.0 Farm equipment..................... •67 92.8 88.0 86.6 86.6 87.7 99.9 100.0 103.9 99.5 101.1 96.1 98.0 96.4 Defense and space equipment. 7.68 77.1 78.1 77. 76.5 76.9 77.1 77.7 77.9 77.7 75.1 75.3 74.9 74.1 74.9 Military products................. 5.15 80.4 80.4 79.8 79.1 79.5 80.5 81.4 82.2 82.3 79.0 78.7 78.2 77.5 78.1 Intermediate products Construction products.......... 5.93 113.0 111.9 112.6 113.4 115.5 113.5 115.3 109.4 111.3 112.7 112.9 115.1 115.6 115.1 Misc. intermediate products. 7.34 112.5 113.1 111.4 111.6 111.9 111.6 112.7 111 .7 113.4 113.4 114.9 114.4 114.7 115.4 Materials Du C ra o b n l s e u g m o e o r d s d u m r a a t b e l r e i a p l a s. r . ts .. . 2 4 0 . . 7 9 5 1 1 1 0 0 0 1 . . 8 4 1 1 0 0 1 1. .6 4 1 1 0 0 1 3 . . 9 2 1 1 0 02 2 . .2 8 1 10 0 5 4 . . 1 8 1 1 0 0 3 4. . 8 0 9 9 8 8 . . 7 8 1 9 0 4 0 . . 9 4 1 9 0 8 0 . . 7 7 1 1 0 0 0 1. . 8 4 9 9 9 9 . . 5 4 1 9 0 9 0. . 1 2 1 1 0 02 2 . . 7 5 1 1 0 0 4 5. . 2 2 Equipment parts.............. 5.41 86.6 87.6 86.4 86.0 88.9 87.1 87.0 82.1 86.0 86.9 86.0 87.6 88.6 90.0 Durable materials nec... 10.75 107.8 108.8 109.2 110.2 112 110.2 104.6 99.0 104.1 106.6 106.4 106.8 109.5 110.8 Nondurable goods materials............ 13.99 113.8 112.1 112.0 112.7 112.8 115.5 112.3 114.8 114.7 114.6 116.0 116.6 115.5 115.7 Textile, paper, and chem. mat.. 8.58 116.1 111.7 111.9 113.2 113.7 117.5 113.4 117. 118.8 118.8 121.7 122.9 120.5 120.1 Nondurable materials n.e.c..... 5.41 110.3 112.7 112.3 111.9 111.3 112.0 110.5 109.9 108.2 108.3 107.1 106.7 107.6 108.6 Fuel and power, industrial........... 2.89 116.2 118.6 121.1 121.0 119.7 121 119.7 117.2 119.3 99.4 105.0 117.6 116.9 117.1 Supplementary groups Home goods and clothing. 9.34 106.8 102.3 102.9 106.6 108.7 108.0 108.3 107.1 107.1 108.5 108.9 110.1 111.6 112.5 Containers............................. 1.82 116.7 119.6 108.1 113.5 117 115.5 118.2 117.2 115.0 116 119.1 120. 118.4 118.7 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 392.0 388.6 385.9 390.2 391.6 392.6 395.2 393.0 392.8 395.3 396.1 394.6 397.6 398.6 Final products............. 302.3 298.5 291A 300.4 301.3 303.2 304.6 305.4 302.9 305.2 305.9 303.4 306.3 307.0 Consumer goods.... 213.6 209.5 209.6 212.6 213.4 214.8 216.4 215.5 212.1 215.7 217.1 215.9 217.1 217.8 Equipment................ 88.8 89.2 87.9 87.9 87.6 88.5 88.1 90.1 90.7 89.4 88.8 87.7 89.2 89.2 Intermediate products. 89.6 89.9 88.5 89.3 90.2 89.6 90.8 87.7 89.7 90.1 90.2 91.0 91.4 91.6 For Note see p. A-63. * Referred to as “nonindustrial equipment” in the article published in the July 1971 Bulletin, pp. 551-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ aver­ tion age^ Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.? Manufacturing.......................................... 55.55 104.8 103.9 103.2 104.4 105.7 105.6 104.9 103.6 104.9 105.4 105.3 105.4 106.5 107.4 Durable................................................. 52.33 98.8 98.6 98.3 99.1 100.5 100.1 99.4 96.6 98.5 99.1 98.0 98.2 99.6 100.5 Nondurable.......................................... 36.22 113.3 111.7 110.4 112.1 113.3 113.7 113.0 113.8 114.2 114.6 115.9 115.9 116.5 117.4 Mining and utilities................................ 11.45 119.6 119.9 120.2 120.6 119.0 120.7 120.3 120.0 120.3 116.1 118.7 121.4 120.5 120.5 Mining................................................... 6.37 107.0 110.1 111.4 110.4 108.6 108.9 105.7 106.5 106.0 97.7 102.3 107.8 107.2 106.4 5.08 135.3 132.2 131.5 133.2 132.1 135.6 138.7 137.0 138.4 139.3 139.6 138.3 137.4 138.2 Durable manufactures Primary and fabricated metals............. 12.55 103.9 106.0 105.8 108.6 111.5 108.3 104.2 93.8 99.5 100.9 98.7 100.0 104.1 103.5 Primary metals.................................... 6.61 100.9 105.5 106.6 108.7 114.3 108.1 98.2 81.0 93.9 95.7 91.4 93.6 102.5 100.4 Iron and steel, subtotal................. 4.23 96.5 104.8 105.2 109.1 112.9 105.3 99.0 66.2 85.9 88.7 81.9 85.5 95.2 94.6 Fabricated metal products............... 5.94 107.3 106.6 104.9 108.5 108.5 108.5 110.8 108.0 105.7 106.9 106.9 107.1 105.8 106.9 Machinery and allied goods................... 32.44 94.2 93.5 93.0 92.7 93.8 94.4 94.7 94.5 95.2 95.3 94.6 94.1 94.7 95.8 Machinery............................................ 17.39 95.5 94.2 94.0 94.2 95.3 95.2 97.4 95.6 96.3 97.0 96.3 96.6 97.6 98.4 Nonelectrical machinery............... 9.17 92.9 92.3 91.1 91.4 90.9 91.6 94.9 94.1 95.0 95.3 93.3 92.5 93.6 94.5 Electrical machinery...................... 8.22 98.4 96.3 97.1 97.4 100.2 99.2 100.2 97.3 97.8 98.9 99.6 101.2 102.1 102.7 Transportation equipment............... 9.29 91.3 92.6 91.3 89.5 90.9 91.7 88.5 91.1 91.7 92.4 91.6 89.8 90.0 91.6 Motor vehicles and parts............. 4.56 111.6 113.0 112.2 108.4 110.2 111.7 106.7 111.6 111.8 112.9 113.4 111.7 111.6 115.0 Aerospace and misc. trans. eq... 4.73 71.8 72.9 71.2 71.4 72.3 72.4 71.0 71.5 72.4 72.6 70.7 68.7 69.3 69.0 Instruments.......................................... 2.07 108.5 105.3 105.5 106.7 108.0 108.5 110.9 109.1 110.5 111.2 110.4 109.3 111 .7 114.3 Ordnance, private and Govt............ 3.69 87.0 85.5 85.7 85.2 86.0 88.8 88.8 90.0 90.2 85.6 85.1 84.8 83.5 84.2 Lumber, clay, and glass......................... 4.44 III.3 109.8 110.8 113.0 112.3 111.0 111.2 110.4 111.1 112.7 113.0 114.3 115.1 117.3 Lumber and products....................... 1.65 113.4 110.8 110.3 112.5 110.0 111.0 115.4 113.1 113.9 117.3 117.9 120.7 120.6 121.0 Clay, glass, and stone products.... 2.79 110.1 109.2 111.1 113.3 113.7 111.1 108.7 108.8 109.4 109.9 110.1 110.5 112.1 115.2 Furniture and miscellaneous.................. 2.90 110.1 107.1 105.6 109.5 109.9 111.3 113.5 111.3 112.0 112.1 111.5 112.7 112.7 114.8 Furniture and fixtures....................... 1.38 98.7 96.0 95.0 98.7 97.6 100.9 99.9 99.6 100.8 100.3 101.6 100.4 100.9 101.9 Miscellaneous manufactures............ 1.52 120.5 117.2 115.4 119.3 121.2 120.7 126.1 122.0 122.2 122.6 120.5 123.9 123.7 126.4 Nondurable manufactures Textiles, apparel, and leather............... 6.90 100.7 98.0 97.3 99.8 101.5 102.4 100.2 100.1 102.5 102.2 101.6 102.8 101.9 103.7 Textile mill products......................... 2.69 108.5 105.4 105.3 106.3 107.5 109.1 108.5 110.5 111.0 110.1 110.2 112.0 108.2 Apparel products................................ 3.33 97.9 94.5 94.C 97.3 99.7 97.1 97.0 96.0 99.5 100.0 99.5 99.7 100.0 Leather and products........................ .88 87.3 89.0 85.4 89.9 89.8 89.3 86.7 84.1 87.6 87.2 82.9 86.8 89.4 86.1 Paper and printing.................................. 7.92 107.8 108.1 104.6 106.9 106.9 106.0 106.8 108.2 108.3 109.0 110.6 110.8 112.2 112.3 Paper and products............................ 3.18 116.0 116.C 111.0 114.4 115.1 113.4 115.5 117.8 116.4 116.1 119.5 120.0 122.1 121.2 Printing and publishing..................... 4.74 102.2 102.8 100.2 101.8 101.4 101.0 101.0 101.7 102.9 104.3 104.5 104.7 105.6 106.3 Chemicals, petroleum, and rubber___ 11.92 124.3 120.9 120.5 122.4 124.2 125.3 124.0 126.2 127.3 126.5 127.8 127.8 128.5 130.1 Chemicals and products................... 7.86 125.8 121.7 121.0 123.4 123.7 126.8 125.0 127.6 129.7 128.2 130.7 130.3 130.7 133.2 Petroleum products............................ 1.8C 115.7 117.1 116.3 115.8 112.7 115.0 114.8 115.8 113.7 115.7 116.0 118.3 118.4 118.9 Rubber and plastics products.......... 2.26 125.9 120.6 122.7 124.5 127.2 129.1 128.0 129.9 129.6 129.0 127.6 126.6 128.6 127.8 Foods and tobacco.................................. 9.48 113.3 113.1 112.2 112.9 113.6 113.7 113.8 112.8 111.1 113.2 115.6 114.3 115.7 115.6 8.81 114.5 114.1 113.8 114.1 114.6 115.4 115.2 114.C 111 .9 114.3 117.C 115.8 116.6 116.5 Tobacco products............................... .67 97.7 100.1 90.3 96.9 100.3 92.1 96.6 98.2 100.3 98.5 98.2 93.8 103.8 Mining Metal, stone, and earth minerals.......... 1.26 104.6 113.6 111.6 106.5 104.6 104.9 91.6 96.8 98.1 102.0 110.9 111.1 108.3 105.8 Metal mining....................................... .51 121 .A 139.( 135.1 124.7 122.6 117.3 93.5 104. i 109.7 117.1 136.7 137.7 129.1 127.6 Stone and earth minerals................. .75 93.2 96.3 95.6 94.2 92.4 96.4 90.2 91.4 90.1 91.7 93.4 92.7 94.3 90.9 Coal, oil, and gas.................................... 5.11 107.5 109.3 111.4 111.4 109.6 109.9 109.2 108.9 108.0 96.7 100.2 107.0 106.9 106.6 Coal....................................................... .6S 99.( 108.1 116.2 115.5 110.2 109.4 109.4 109.4 109.7 29.1 55.7 112.4 104 99.6 Oil and gas extraction....................... 4.42 108.9 109.3 110.6 114.3 109.6 110.0 109.2 108.8 107.7 107.3 107.2 106.1 107.2 107.7 Utilities Electric...................................................... 3.91 138.0 134.9 133.6 135.5 133.8 138.3 142.0 139.7 141.5 142.3 142.3 141.9 141.2 142.7 1.1' 126.5 123.6 124.: 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. □ APRIL 1972 MARKET GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ avertion age1* Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Total index.......................................... 100.00 106.4 106.1 106.0 106.5 107.3 109.7 102.1 105.5 109.8 109.8 107.2 103.9 106.1 108.9 Products, total....................................... 62.21 106.2 104.7 104.5 105.0 105.1 109.0 103.9 107.5 111.7 111.2 107.4 102.6 105.1 107.8 Final products.................................... 48.95 104.4 103.4 103.0 102.9 102.7 107.2 101.6 105.6 110.0 109.3 105.6 100.7 104.1 106.7 Consumer goods............................. 28.53 115.5 113.2 112.9 113.6 113.5 119.3 111.9 118.4 123.1 122.9 117.3 109 9 115.7 118.9 Equipment....................................... 20.42 88.9 89.6 89.1 88.0 87.6 90.4 87.1 87.6 91.8 90.3 89.2 87.8 87.8 89.5 Intermediate products....................... 13.26 112.8 109.5 110.2 112.6 113.8 115.5 112.4 114.5 118.1 118.1 114.1 109.7 108.6 112.1 Materials................................................ 37.79 106.8 108.3 108.4 109.0 110.8 110.9 99.2 102.3 106.8 107.6 107.0 106.0 107.7 110.6 Consumer goods Durable consumer goods......................... 7.86 114.3 113.8 114.8 114.7 117.3 120.5 101.9 108.6 121.5 125.7 118.9 106.9 116.4 120.7 Automotive products......................... 2.84 119.4 125.1 125.3 121.9 127.2 130.5 94.9 102.0 128.6 135.8 123.7 102.4 120.6 124.5 Autos................................................ 1.87 108.3 124.1 123.4 112.5 120.2 120.8 69.4 76.5 112.0 124.0 115.6 87.5 112.0 117.0 Auto parts and allied goods........ .97 140.8 127.0 128.9 139.9 140.8 149.0 144.0 151.0 160.5 158.6 139.4 130.9 137.1 138.7 Home goods.............................................. 5.02 111.5 107.4 108.8 110.7 111.7 114.9 105.8 112.4 117.5 120.0 116.2 109.4 114.0 118.6 Appliances, TV, and radios............. 1.41 111.2 108.9 113.6 116.1 117.1 117.3 102.5 104.1 113.4 125.3 116.2 97.9 122.5 126.2 Appliances and A/C...................... .92 127.2 124.7 133.6 133.1 132.2 136.1 122.3 114.4 128.0 142.8 131.6 107.5 142.8 148.8 TV and home audio...................... .49 81.4 79.3 76.2 84.3 88.8 81.9 65.4 84.8 86.2 92.5 87.4 80.1 84.3 83.9 Carpeting and furniture.................... 1.08 112.9 114.7 111.4 111.1 108.6 112.6 97.9 114.9 119.5 116.6 120.5 118.6 119.6 123.4 Misc. home goods.............................. 2.53 111.0 103.4 105.1 107.5 110.0 114.4 111.0 116.0 118.9 118.5 114.4 112.0 106.8 112.3 Nondurable consumer goods.................. 20.67 116.0 113.0 112.2 113.2 112.1 118.8 115.7 122.1 123.7 121.8 116.7 111.0 115.4 118.3 Clothing................................................ 4.32 101.4 102.0 102.5 102.6 101.4 105.5 93.6 105.6 107.0 110.7 100.5 90.5 100.5 Consumer staples............................... 16.34 119.8 115.9 114.8 116.0 114.9 122.3 121.6 126.5 128.1 124.7 121.0 116.4 119.3 120.6 Consumer foods and tobacco___ 8.37 113.2 108.5 108.7 110.0 110.8 116.6 112.6 118.6 120.0 120.5 115.7 108.1 109.4 110.9 Nonfood staples............................. 7.98 126.8 123.7 121.2 122.3 119.1 128.3 131.2 134.7 136.5 129.2 126.5 125.1 129.7 130.7 Consumer chemical products.. 2.64 133.2 125.7 125.7 131.2 132.4 142.2 131.8 139.4 145.2 139.1 136.8 124.6 128.3 132.4 Consumer paper products........ 1.91 107.8 101.8 100.1 107.1 102.0 110.2 109.6 113.9 116.0 113.9 110.7 108.9 110.3 113.7 Consumer fuel and lighting. . . 3.43 132.4 134.3 129.6 123.8 118.4 127.6 142.7 142.6 141 .2 130.0 127.4 134.6 141.5 138.9 Residential utilities................ 2.25 140.1 143.0 137.1 129.2 122.3 132.4 154.4 153.2 153.0 136.6 132.5 141.0 152.3 148.1 Equipment Business equipment.................................. 12.74 96.0 96.6 96.0 95.3 94.2 98.0 93.3 93.9 100.3 99.4 97.2 95.0 95.7 98.3 Industrial equipment......................... 6.77 92.3 93.9 92.8 92.4 90.3 92.6 90.4 90.1 94.9 94.3 93.6 92.0 92.C 94.2 Building and mining equip........... 1.45 92.9 93.3 90.3 91.7 90.9 91.6 87.0 90.5 98.2 97.0 99.C 95.7 96.8 99.3 Manufacturing equipment........... 3.85 81.4 84.3 82.9 82.0 79.1 81.5 79.3 78.5 83.3 81.9 81.1 80.4 79.3 82.3 Power equipment........................... 1.47 120.5 119.6 120.9 120.3 119.2 122.6 122.7 119.8 122.0 124.0 120.9 118.7 120.2 120.4 Commercial, transit, farm eq.*.... 5.97 100.1 99.7 99.7 98.5 98.6 104.2 96.6 98.3 106.5 105.2 101.3 98.3 100.0 102.9 Commercial equipment................. 3.30 108.4 105.3 104.7 105.3 106.0 112.4 112.6 110.7 115.6 112.0 109.4 105.0 104.8 107.8 Transit equipment......................... 2.00 89.0 91.5 91.0 88.9 89.0 93.8 75.1 82.6 92.3 95.3 91.0 89.8 92.5 94.5 Farm equipment............................. .67 92.8 96.7 100.9 93.7 90.9 94.3 81.7 83.8 103.7 101.2 92.1 90.6 98.5 103.4 Defense and space equipment............... 7.68 77. / 78.1 77.7 76.0 76.7 77.8 76.7 77.1 77.8 75.2 75.8 75.9 74.6 74.9 Military products............................... 5.15 80.4 80.3 80.1 78.9 79.7 81.8 80.8 81.6 82.2 78.7 78.9 78.7 77.7 78.0 Intermediate products Construction products........................... 5.93 113.0 109.9 111.6 115.8 118.0 118.6 112.3 111.9 115.9 117.5 112.6 109.0 107.5 113.0 Misc. intermediate products................. 7.34 112.5 109.1 109.1 110.0 110.4 113.0 112.4 116.6 119.8 118.6 115.4 110.3 109.5 111.4 Materials Durable goods materials......................... 20.91 100.8 103.2 104.2 104.1 107.2 106.3 92.1 92.0 99.9 102.3 100.2 98.6 101.5 105.3 Consumer durable parts................... 4.75 101.4 104.6 104.5 102.0 106.4 104.5 88.3 92. C 100.1 104.2 103.8 104.0 106.3 108.6 Equipment parts................................. 5.41 86.6 88.9 89. C 87.0 89.4 89.4 81.7 80.1 86.9 86.6 85.2 86.8 88.9 91.4 Durable materials n.e.c..................... 10.75 107.8 109.8 111.8 113.7 116.6 115.6 99.1 98.0 106.3 109.4 106.2 102.1 105.8 110.8 Nondurable goods materials.................. 13.99 113.8 113.3 112.0 113.7 114.3 115.8 107.2 114.5 114.8 117.4 117.5 114.3 114.7 116.9 Textile, paper, and chem. mat.......... 8.58 116.1 114.3 112. £ 115.6 116.0 118.C 106.5 116.9 118.7 121.3 123.C 119.1 119.7 122.9 Nondurable materials n.e.c.............. 5.41 110.3 111 .6 110. 8 110.8 111.6 112.4 108.2 110.6 108.6 111.2 108.S 106.7 106.7 107.5 Fuel and power, industrial................... 2.89 116.2 120.5 121.9 121.4 119.5 120.4 111.4 117.7 118.3 98.5 105.7 119.2 118.9 118.9 Supplementary groups Home goods and clothing.................... 9.34 106.8 104.9 105.9 106.9 106.9 110.6 100.2 109.3 112.6 115.7 108.9 100.7 107.8 114.4 Containers................................................ 1.82 116.7 119.2 108.1 113.8 119.6 119.1 113.0 121.2 120.1 123.5 118.0 111.7 111.9 118.3 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

APRIL 1972 o INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967= 100) 1967 1971 1972 Grouping por­ avertion ageP Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p Manufacturing, total............................... 88.55 104.8 104.3 104.4 105.0 106.0 108.3 99.7 103.1 108.1 109.2 106.2 101.9 104.1 107.5 Durable................................................ 52.33 98.8 100.2 100.6 100.4 101.7 102.7 93.2 93.6 100.6 101.6 98.9 95.8 98.4 101.9 Nondurable.......................................... 36.22 113.3 110.2 109.8 111.7 112.1 116.3 109.2 116.8 119.0 120.1 116.8 110.6 112.3 115.6 Mining and utilities............................... 11.45 119.6 119.7 119.4 117.9 117.0 120.7 121.9 124.2 123.8 114.9 115.3 119.2 120.9 119.9 Mining.................................................. 6.37 107.0 108.6 109.7 110.4 110.9 111.0 103.0 107.7 106.4 98.0 101.8 107.5 104.6 104.8 Utilities................................................. 5.08 135.3 133.7 131.5 127.3 124.6 132.8 145.7 144.9 145.7 136.1 132.3 133.9 141.5 138.8 Durable manufactures Primary and fabricated metals............. 12.55 103.9 110.0 lll.O 112.0 114.6 111.1 95.8 90.0 99.0 101.5 98.9 97.4 102.7 107.3 Primary metals.................................... 6.61 100.9 111.6 115.2 115.8 119.8 112.6 87.9 76.2 91.1 94.5 90.3 88.8 101.0 106.2 Iron and steel, subtotal................. 4.23 96.5 110.7 114.3 117.1 119.1 109.0 90.4 62.4 81.9 86.2 80.7 81.3 93.7 99.9 Fabricated metal products............... 5.94 107.3 108.2 106.3 107.7 108.8 109.5 104.7 105.3 107.7 109.3 108.4 107.1 104.6 108.5 Machinery and allied goods................... 32.44 94.2 95.1 94.9 93.4 94.4 96.7 88.8 90.3 97.6 98.1 95.5 92.2 94.8 97.3 Machinery............................................ 17.39 95.5 96.0 95.8 94.9 94.8 97.0 92.2 92.6 99.5 99.4 96.8 94.3 96.9 100.0 Nonelectrical machinery............... 9.17 92.9 94.3 93.6 92.5 91.4 94.2 91.8 90.6 97.2 95.5 93.4 91.4 92.4 96.6 Electrical machinery...................... 8 22 98.4 97.8 98.3 97.5 98.6 100.2 92.6 94.9 102.0 103.8 100.6 97.6 101.9 103.8 Transportation equipment............... 9.29 91.3 95.4 94.6 91.6 94.2 96.1 77.8 81.7 93.2 97.2 93.6 87.2 92.0 94.4 Motor vehicles and parts............. 4.56 111.6 118.9 117.7 112.0 116.9 120.5 86.1 93.5 114.4 122.4 117.5 105.9 116.6 120.8 Aerospace and misc. trans. eq. .. 4.73 71.8 72.8 72.3 72.0 72.4 72.6 69.7 70.4 72.8 73.0 70.6 69.2 68.3 68.9 Instruments.......................................... 2.07 108.5 102.2 103.7 103.4 106.9 110.8 110.9 111.4 114.9 114.4 111 .0 109.2 108.5 111.0 Ordnance, private and Govt............ 3.69 87.0 86.3 86.2 85.2 86.2 89.2 88.1 88.9 89.8 85.0 85.2 85.2 84.0 84.5 Lumber, clay, and glass......................... 4.44 111.3 104.5 108.7 113.2 114.5 116.6 110.4 116.0 116.5 118.1 113.0 106.6 105.7 111.8 Lumber and products........................ 1.65 113.4 110.6 112.1 114.5 112.5 117.5 112.2 117.6 119.5 121.6 115.3 108.4 109.9 120.8 Clay, glass, and stone products___ 2.79 110.1 100.9 106.7 112.5 115.7 116.1 109.4 115.1 114.7 116.1 111.6 105.6 103.2 106.4 Furniture and miscellaneous................... 2.90 110.1 107.4 106.6 108.7 107.6 112.3 104.2 112.0 115.9 115.3 115.6 113.5 109.7 115.1 Furniture and fixtures........................ 1.38 98.7 100.7 98.5 98.6 95.8 99.3 86.8 98.0 101.8 100.6 104.6 103.4 103.0 106.9 Miscellaneous manufactures............. 1.52 120.5 113.6 114.0 117.9 118.4 124.1 120.0 124.8 128.8 128.7 125.6 122.7 115.9 122.5 Nondurable manufactures Textiles, app irel, and leather............... 6.90 100.7 101.8 101.7 101.6 101.3 104.6 90.8 104.4 104.9 107.8 101.3 92.4 100.2 106.6 2.69 108.5 107.6 108.2 108.5 110.4 114.0 96.9 114.5 113.6 113.8 111 .C 101.4 105.9 3.33 97.9 99.4 99.4 99.3 97.4 100.8 89.9 100.4 102.4 107.3 98.1 87.7 98.6 Leather and products......................... .88 87.3 92.7 90.4 88.8 87.9 89.8 75.2 88.7 88.0 91.3 83.5 82.7 88.7 89.7 Paper and printing................................... 7.92 107.8 105.4 103.2 107.4 106.8 108.5 103.5 111.6 113.4 114.8 112.1 105.0 106.1 109.6 Paper and products............................ 3.1? 116.C 118.9 113.6 117.8 116.2 116.6 105.7 117.6 116.1 122.1 120.5 111.0 120.6 124.2 Printing and publishing..................... 4.74 102.2 96.4 96.2 100.4 100.5 103.1 102.1 107.5 111.5 109.9 106.5 100.9 96.3 99.7 Chemicals, petroleum, and rubber........ 11.92 124.3 119.4 119.7 122.2 123.2 128.6 121.6 126.7 130.7 129.9 129.0 125.8 124.6 128.5 Chemicals and products................... 7.86 125. £ 118.9 119.5 124.3 125.3 131.1 124.2 128.6 133.1 130.8 131.2 127.6 126.1 130.1 Petroleum products............................ 1. 8C 115.7 113.5 112.C 110.9 111.7 119.1 118.9 120.9 118.9 117.8 115.2 116.5 113.5 115.2 Rubber and plastics products.......... 2.26 125.9 125.8 126.4 124.0 125.0 127.7 114.8 124.7 131.9 136.6 132.2 126.9 128.3 133.3 Foods and tobacco................................... 9.48 113.3 108.8 108.8 109.6 110.5 115.9 112.0 117.7 119.4 121.2 116.8 109.5 110.8 111.0 8.81 114.5 109.2 110.2 110.9 111.4 117.2 114.0 118.6 120.4 122.3 118.2 111.9 111 .4 111.3 .67 97.7 103.C 90.5 92.7 99.3 98.5 86.2 105.7 106.5 106.1 99.C 78.7 103.6 Mining Metal, stone, and earth minerals.......... 1.26 104.6 98.7 101.0 107.2 116.9 118.3 97.3 104.1 104.1 105.8 103.9 100.5 93.5 91.9 Metal mining....................................... .51 121.4 118.3 117.9 126.1 145.7 147.7 106.8 116.9 118.7 117.9 114.8 111.3 106.C 108.6 Stone and earth minerals................. .75 93.2 85.3 89.5 94.4 97.4 98.3 90.9 95.4 94.2 97.6 96.6 93.1 84.9 80.5 Coal, oil, and gas.................................... 5.11 107.5 111.0 111.8 111.2 109.4 109.2 104.4 108.6 107.0 96.0 101.3 109.2 107.4 108.0 Coal....................................................... .69 99.0 109.1 114.7 117.6 112.4 111.6 82.7 116.5 112.6 31.1 56.9 111.7 103.6 99.9 Oil and gas extraction....................... 4.42 108.9 111.3 111.3 114.1 108.9 108.8 107.8 107.4 106.1 106.2 108.2 108.8 108.0 109.3 Utilities Electric...................................................... 3.91 138.0 136.7 133.6 128.0 124.2 134.6 151.3 150.0 150.8 138.0 132.8 136.2 146.6 143.3 1.17 126.5 123.6 124.3 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 o APRIL 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry pacity Nonag- Con­ riculutiliza­ Products tion struc­ tural Total Period Total in mfg. tion em­ retail Whole Total Final C p o r n o ­ diicts m I e n d te ia r t ­ e M ri a al t s e­ f M a i c a n t n g u u r­ ­ o = ( u 1 1 9 tp 0 6 u 0 7 ) t tr c a o c n ts ­ T m p o e lo t n a y t l — - i p m E lo m e y n ­ - t P ro a l y ls ­ sales3 s C um on e ­ r m c s o o a d m le it ­ 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 r82.1 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 86.1 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 1971p..................... 106.5 106.2 104.5 115.6 88.9 112.8 106.8 104.8 r74.4 132.0 107.4 94.3 116.9 122 121.3 113.9 1971 _Feb............ 105.7 105.0 103.0 112.9 89.3 112.5 106.8 103.9 126.0 106.9 94.4 115.0 126 119.4 112.8 Mar........... 105.5 104.5 102.5 112.7 88.4 112.0 107.1 103.2 141.0 107.0 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 !• r75.4 141.0 107.5 94.8 117.6 128 120.8 113.8 107.2 106.1 104.5 116.1 88.2 112.4 109.0 105.6 j 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 1 151.0 107.1 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 r73.9 153.0 107.1 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 \ r73.8 155.0 107.9 94.4 '■118.4 136 122.6 114.5 Dec............ 107.6 107.5 105.6 117.9 88.5 114.7 107.6 105.4 j 160.0 108.1 94.2 121.1 133 123.1 115.4 1972—Jan............ 108.2 108.1 106.2 118.5 88.7 115.0 108.4 106.5 1 165.0 108.7 94.5 r122.2 r133 123.2 116.3 Feb............ 108.9 108.5 106.7 119.3 89.1 115.3 109.4 107.4 } 74.5 155.0 108.9 r94.9 r124.6 134 123.8 117.3 Mar.*'.... 109.6 108.9 107.0 119.5 89.6 116.1 110.6 108.0 J 109.3 95.5 125.4 117.4 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. value of total construction contracts, including residential, nonresidential, 5 Figure is for first quarter 1971. and heavy engineering; does not include data for Alaska and Hawaii. 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. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1971 1972 Type of ownership and 1970 1971 type of construction Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total construction 1............................ 67,097 78,878 4,993 6,386 7,743 7,555 8,077 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607 By type of ownership: Public............................................ 23,362 24,183 1,578 1,722 2,074 2,065 2,795 2,683 2,299 2,010 1,837 1,960 1,696 2,137 1,634 Private 1....................................... 45,058 56,408 3,415 4,663 5,669 5,489 5,489 4,987 5,413 4,804 4,731 4,445 4,590 4,097 3,973 By type of construction: 24,910 35,226 1 819 2,729 3,168 3,310 3,485 3,357 3,255 3,196 3,170 3,001 2,997 2,667 24,180 26,577 1,654 2 199 2,080 2,264 2,800 2,621 2,120 2,246 2,064 2,128 1.959 1,728 18,489 20,509 1,520 1 458 2,495 1,981 1,792 1,691 2,337 1,371 1 332 1,274 1.959 1,840 Private housing units authorized... 1,324 1,885 1,563 1,627 1,638 1,927 1,849 2,052 2,006 1,900 2,173 1,961 2,292 r2,105 2,112 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Nonresidential 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 C v e o a v n & t e i s o l e o n r p ­ ­ Other 2 In tr d i u al s­ m C e o rc m ia ­ l b O u t i h l e d r ­ Other ment ings 1 1962 3 ......... 59,965 42,096 25,150 c16,946 2,842 5,144 3,631 c5,329 17,869 1,266 6,365 1963 4 ......... 64,563 45,206 27,874 *17,332 2,906 4,995 3,745 c5,686 19,357 1,179 7,084 1964 67,413 47,030 28,010 cl 9,020 3,565 5,396 3,994 *6,065 20,383 910 7,133 1965 73,412 51,350 27,934 c23,416 5,118 6,739 4,735 c6,824 22,062 830 7,550 1966 76,002 51.995 25,715 c26,280 6,679 6,879 5,037 c7,685 24,007 727 8,405 1967 77,503 51,967 25,568 c26,399 6,131 6,982 4,993 c8,293 25,536 695 8,591 1968 86,626 59,021 30,565 =28,456 6,021 7,761 4,382 no,292 27,605 808 9,321 1969 93,347 65,384 33,200 c32,184 6,783 9,401 4,971 "11,029 27,963 879 9,252 1970 94,265 66,147 31,748 *34,399 6,538 9,754 5,125 '12,982 28,118 719 9,986 197 1 108,968 79,080 42,379 36,701 5,423 11,619 5,437 14,222 1971—Feb... 102.340 70,743 36,509 34,234 6,258 10,106 5,009 12,861 31,597 812 1,566 Mar.. 103,027 72,961 37,678 35,283 6,072 10,734 5,099 13,378 30,066 863 1,676 Apr.. 105,875 76,263 39,589 36,674 6,110 11,262 5,355 13,947 29,612 824 1,756 May.. 107,591 77,880 41,500 36,38^ 5,766 11,038 5,289 14,287 29,711 848 1,702 June. 109,210 79,941 42,326 37,615 5,508 11,795 5,815 14,497 29,269 865 1,614 July'. 109,801 80,328 42,533 37,795 5,428 12,690 5,499 14,178 29,473 1,142 2,150 Aug.r 111,778 81,939 43,795 38,144 4,852 13,069 5,482 14,741 29,839 900 1,609 Sept.r 110,319 81,730 45,027 36,703 4,597 11,702 5,591 14.813 28,573 786 1,570 Oct.r. 114,748 82,905 46,135 36,770 4,993 11,510 5,372 14,895 31,843 881 1,540 Nov.r 115,186 84,764 46,841 37,923 4,885 12,188 5,670 15,180 30,422 938 1,697 Dec.r 117,017 85,989 47,741 38,248 4,914 12,391 5,770 15,173 31,028 918 1,454 1972—Jan.r. 120,213 88,220 49,725 38,495 4,864 13,366 5,698 14,567 31,993 1,015 1,914 Fib... 120.340 88.996 51,690 37,306 4,748 13,124 5,621 13.813 31,344 998 1,769 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 more- Total Private Public Total FHA VA family 1963............................ 1,610 261 328 591 431 1,021 589 1,642 1,610 32 292 221 71 151 1964............................ 1,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 59 191 1965............................ 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966............................ 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967............................ 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968............................ 1,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 318 1969............................ 1,467 206 349 588 323 810 87 571 1,500 1,467 33 288 237 51 413 1970............................ 1,434 218 294 612 310 813 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—Feb................. 1,794 231 337 762 463 1,005 112 677 105 102 2 32 27 5 28 Mar................ 1,938 233 413 821 471 1,080 117 741 169 168 1 40 33 7 36 Apr................. 1,951 224 435 841 450 1,122 120 709 204 201 3 53 45 8 43 May............... 2,046 257 412 860 517 1,152 115 779 204 199 5 49 41 8 41 June............... 2,008 250 396 864 498 1,150 127 731 197 194 3 55 46 9 47 July................. 2,091 271 436 849 535 1,162 131 798 197 194 3 52 43 9 45 Aug................. 2,219 279 493 941 505 1,198 143 878 206 205 2 55 46 9 50 Sept................ 2,029 249 454 876 449 1,172 137 720 176 174 2 58 50 9 53 Oct.................. 2,038 242 435 895 465 1,155 108 774 182 180 2 47 39 8 50 Nov................ 2,228 305 483 950 489 1,242 102 883 179 176 3 57 48 9 40 Dec.r............. 2,457 437 508 995 518 1,347 121 989 155 152 3 92 85 7 34 1972—Jan.'............... 2,471 430 430 984 628 1,410 174 888 150 148 2 44 36 8 33 Feb................. 2,678 279 570 1,215 614 1,315 216 1,147 153 152 1 28 28 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 EMPLOYMENT □ APRIL 1972 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total non- Total Unemploy Not in Employed1 ment Period i p n o ( s N t p i u . t S u la t .A i t o i . o n ) n al la ( b N o . r S . f A o . r ) ce ( l f S a o b . r A c o e . r ) Total Total In c n u o lt n u a ra g l r i- In U pl n o e y m ed ­ (pe r S r a . A t c e e . 2 ) n t; industries agriculture 1966............................. 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 1968............................. 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969............................. 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970............................. 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971............................. 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1971—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 4,80t 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 Mar................. 145,077 57,163 88,817 86,313 81,241 77,759 3,482 5,072 5.9 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 r n a u c c t ­ T ti l o i 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 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—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.................................................... 71,584 18,609 616 3,320 4,502 15,447 3,872 12,120 13,098 Feb.^................................................ 71,702 18,676 611 3,239 4,483 15,491 3,878 12,164 13,160 Mar.p............................................... 71,978 18,766 613 3,257 4,528 15,529 3,887 12,198 13,200 NOT SEASONALLY ADJUSTED 1971 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 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 70,542 18,651 625 3,509 4,486 15,151 3,865 11,994 12,261 71,184 18,840 623 3,471 4,509 15,242 3,829 11,986 12,684 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..................................................... 70,643 18,440 602 2,965 4,430 15,266 3,833 11,926 13,181 Feb.*-................................................ 70,749 18,523 595 2,883 4,411 15,143 3,843 12,018 13,333 Mar.P............................................... 71.328 18,645 599 2,961 4,474 15,285 3,864 12,113 13,387 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

APRIL 1972 o EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1971 1972 1971 1972 Mar. Jan. Feb.p Mar.? Mar. Jan. Feb.2 Mar.p 13,448 13,527 13,581 13,662 13,345 13,373 13,448 13,557 Durable goods........................................................................ 7,569 7,629 7,668 7,728 7,552 7,581 7,630 7,710 Ordnance and accessories.......................................... 99 90 - 89 89 99 90 90 89 Lumber and wood products...................................... 487 520 517 523 476 501 502 511 Furniture and fixtures................................................ 370 395 397 398 367 395 395 396 Stone, clay, and glass products................................ 492 510 510 512 480 491 492 499 Primary metal industries............................................ 1,002 934 934 954 1,004 929 935 956 Fabricated metal products........................................ 980 1,016 1,025 1,035 974 1,014 1,020 1,029 Machinery..................................................................... 1,172 1,168 1,177 1,179 1,187 1,168 1,186 1,195 Electrical equipment and supplies........................... 1,173 1,192 1,205 1,219 1,168 1,194 1,203 1,214 Transportation equipment........................................ 1,225 1,219 1,223 1,225 1,237 1,232 1,232 1,237 Instruments and related products........................... 255 260 262 263 254 260 262 264 Miscellaneous manufacturing industries................ 316 325 329 331 305 307 314 320 5,879 5,898 5,913 5,934 5,793 5,792 5,818 5,847 Food and kindred products...................................... 1,184 1,183 1,177 1,180 1,108 1,120 1,102 1,104 Tobacco manufactures............................................... 64 58 58 61 57 58 56 55 Textile-mill products................................................... 839 862 862 869 836 855 857 866 Apparel and related products................................... 1,197 1,180 1,189 1,189 1,205 1,164 1,191 1,196 Paper and allied products.......................................... 526 528 529 531 522 524 524 526 Printing, publishing, and allied industries............. 668 666 668 669 669 662 666 669 Chemicals and allied products................................. 583 581 578 576 585 575 576 578 Petroleum refining and related industries............... 116 114 119 116 113 110 113 113 Rubber and misc. plastic products........................... 440 464 467 474 437 462 467 471 Leather and leather products.................................... 262 262 266 269 261 261 266 267 l 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 Mar. Jan. Feb.p Mar.p Mar. Jan. Feb.p Mar.P Mar. Jan. Feb.p Mar.p Total.......................................................................... 39.8 40.0 40.5 40.4 139.74 147.66 149.17 150.72 3.52 3.71 3.72 3.74 40.4 40.6 41.1 41.0 151.50 159.58 161.17 163.59 3.75 3.95 3.96 3.99 Ordnance and accessories............................. 41.9 41.2 42.5 42.1 157.59 165.97 170.89 168.42 3.77 3.98 4.04 4.01 Lumber and wood products........................ 39.9 40.9 40.8 40.9 121.70 128.40 128.96 132.93 3.05 3.21 3.20 3.25 Furniture and fixtures.................................... 39.7 40.3 40.8 40.5 112.29 118.31 118.90 120.60 2.85 2.98 2.98 3.00 Stone, clay, and glass products................... 41.7 41.8 42.1 42.2 147.44 153.78 156.11 158.84 3.57 3.76 3.78 3.80 Primary metal industries.............................. 40.8 40.6 41.1 41.0 168.10 184.78 186.10 187.83 4.12 4.54 4.55 4.57 Fabricated metal products........................... 40.3 40.4 41.0 40.8 146.77 155.59 157.16 159.15 3.66 3.88 3.89 3.92 Machinery........................................................ 40.2 41.0 41.3 41.4 159.57 170.56 172.63 175.97 3.94 4.16 4.18 4.22 Electrical equipment and supplies.............. 39.7 40.1 40.6 40.2 137.36 144.00 145.16 146.73 3.46 3.60 3.62 3.65 Transportation equipment........................... 41.7 40.7 41.9 42.0 182.55 186.76 191.58 193.86 4.42 4.60 4.65 4.66 Instruments and related products............... 39.7 40.3 40.7 40.3 138.55 147.17 148.30 149.51 3.49 3.67 3.68 3.71 Miscellaneous manufacturing industries... 38.8 39.0 39.5 39.3 113.68 118.81 120.04 120.65 2.93. 3.07 3.07 3.07 39.1 39.4 39.7 39.5 124.87 132.16 133.23 133.62 3.21 3.38 3.39 3.40 Food and kindred products......................... 40.5 40.1 40.0 40.1 133.27 140.10 139.79 142.04 3.34 3.52 3.53 3.56 38.0 34.8 34.0 35.0 114.45 113.21 113.57 114.92 3.11 3.32 3.39 3.39 Textile-mill products...................................... 40.3 41.3 41.2 41.2 102.51 109.75 111.11 111.38 2.55 2.69 2.71 2.71 Apparel and related products..................... 35.2 35.7 36.3 35.7 87.44 90.37 92.52 92.26 2.47 2.56 2.57 2.57 Paper and allied products............................ 41.9 42.1 42.7 42.6 149.76 159.64 162.01 162.01 3.60 3.81 3.83 3.83 Printing, publishing, and allied industries. 37.5 37.5 37.5 37.7 153.38 161.39 162.19 165.88 4.09 4.35 4.36 4.40 Chemicals and allied products..................... 41.4 41.8 41.9 41.7 158.98 170.56 171.39 170.97 3.84 4.10 4.11 4.10 Petroleum refining and related industries . 41.9 42.2 42.0 41.7 188.10 201.83 202.03 202.59 4.50 4.84 4.88 4.87 Rubber and misc. plastic products............. 40.3 40.8 41.0 40.9 132.47 143.72 144.08 142.56 3.32 3.54 3.54 3.52 Leather and leather products...................... 37.4 38.0 38.5 38.1 96.09 101.99 103.95 101.68 2.59 2.67 2.70 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 □ APRIL 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 P c 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 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55 1 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—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................ tl22.1 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 tl19.3 123.1 130.0 117.5 119.7 121.8 Sept................ t122.2 119.1 125.5 116.1 135.1 117.8 115.7 119.4 120.6 t118.6 123.6 130.4 117.6 120.5 122.4 Oct.................. t122.4 118.9 125.9 116.4 135.7 117.8 115.7 119.5 121.6 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 Feb................. 123.8 122.2 127.6 117.5 138.0 118.7 119.4 119.6 120.7 118.3 124.7 131.0 118.4 121.5 124.3 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 Farm cessed Ma­ Period m c t o i o e m d s i ­ ­ p u r c o t d s ­ f f o a e n o ed d d s s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u e tc r b . , ­ L b e u e tc m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c a q e h n r u i y n d ip ­ ­ F t e u u t r r c e n . , i­ N t m m a o l i e l n n i ­ c ­ - T e p t q r o i a o u r n n i t p a s ­ ­ ­ n c M e e o l i l u s a ­ s ­ ment erals ment1 I960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961................................ 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962................................ 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963................................ 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964................................ 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965................................ 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................ 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968................................ 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 ioo.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—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 Feb..................... 117.3 120.7 118.8 116.5 112.0 119.1 116.1 103.5 109.2 137.7 111.6 122.6 117.1 110.8 124.6 113.6 114.0 1 For transportation equipment, Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967=100) 1972 1971 1972 Group Group Feb. Dec. Jan. Feb. Feb. Dec Feb. Farm products: Pulp, paper, and allied products: Fresh and dried produce....................... 118.3 126.3 124.9 127.5 Pulp, paper and products, excluding Grains......................................................... 111.7 95.3 94.1 93.0 building paper and board.............. 109.6 111.0 111.1 111.9 Livestock................................................... 118.9 124.7 132.2 139.6 Woodpulp.............................................. 112.2 111.5 111.5 111.5 Live poultry.............................................. 100.0 87.2 94.3 105.4 Wastepaper............................................ 105.0 124.6 124.9 126.6 Plant and animal fibers.......................... 88.0 102.5 109.5 113.2 Paper....................................................... 112.7 114.7 114.9 115.3 Fluid milk................................................. 117.7 119.0 120.5 120.5 Paperboard............................................ 101.3 102.7 102.7 103.5 Eggs............................................................ 97.6 114.4 92.6 91.9 Converted paper and paperboard... 109.4 110.1 110.3 111.4 Hay and seeds.......................................... 108.6 109.2 108.7 110.2 Building paper and board.................. 100.4 104.6 104.7 104.7 Other farm products............................... 119.5 117.3 118.0 116.8 Processed foods and feeds: Metals and metal products: Cereal and bakery products................. 111.1 111 .6 112.2 112.4 Meat, poultry, and fish.......................... 115.2 120.4 125.4 130.5 Iron and steel.................................... 118.0 125.3 126.8 128.2 Dairy products........................................ 112.3 117.4 117.3 117.5 Steelmill products............................ 117.0 128.2 129.6 131.0 Processed fruits and vegetables............ 111.5 115.8 116.0 116.1 Nonferrous metals........................... 114.2 114.9 114.4 115.0 Sugar and confectionery........................ 118.3 120.2 120.1 121.1 Metal containers.............................. 115.8 124.2 124.2 127.1 Beverages and beverage materials.... 115.2 116.4 116.4 116.8 Hardware........................................... 115.5 117.7 118.4 119.0 Animal fats and oils............................... 122.6 122.3 121.4 133.5 Plumbing equipment....................... 113.2 118.4 118.2 118.6 Crude vegetable oils............................... 127.6 118.2 114.2 116.8 Heating equipment.......................... 114.1 116.3 115.9 116.2 Refined vegetable oils........................... 147.7 122.7 121.0 120.1 Fabricated structural metal products 115.7 120.4 121.6 122.0 Vegetable oil end products................. 119.4 122.0 121 7 121.1 Miscellaneous metal products.... 117.7 120.9 121.3 123.2 Miscellaneous processed foods............ 111.9 113.1 113.6 113.8 Manufactured animal feeds.................. 104.9 104.5 103.8 103.7 Textile products and apparel: Machinery and equipment: Cotton products.................................... 107.5 113.6 116.7 118.0 Agricultural machinery and equip... 116.8 118.6 119.9 121.5 Wool products...................................... 95.4 91.5 92.0 92.2 Construction machinery and equip.. 120.5 123.2 124.3 124.7 Manmade fiber textile products..... 97.4 104.3 105.4 105.9 Metalworking machinery and equip. 116.0 118.4 118.5 118.9 T A M e p i x s p t c i a e l r e l e l a h l. n o .. e . u . o . s . u . e . s . f . u . t .. e m .. x . i . t . s i . l . h . e . i . n . p .. g r .. s o .. . d . . . . . . u . . . . c . . . . . t . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 0 0 2 7 3 . . . 3 4 0 1 1 1 0 1 3 6 3 6 . . . 1 8 2 1 1 1 1 0 3 3 6 7 . . . 8 2 4 1 1 1 0 1 4 8 4 1 . . . 5 6 0 S G p e e e n q c e u ia r i a l p l m i p n e u n d r t u . p s .. o t .. r s . y . e . . ... m . m ... a a .. c c .. h h .. i i . n . n .. e e .. r r . y y .. . ... a a .. n n .. d d . 120.5 120.8 121.2 equipment........................................ 119.4 122.1 122.6 123.1 Hides, skins, leather, and products: Electrical machinery and equip.... 109.3 109.3 109.5 110.0 Miscellaneous machinery................. 115.9 117.9 118.3 118.8 Hides and skins...................................... 105.3 i 128.6 136.0 148.9 Leather..................................................... 108.7 j 117.0 120.0 120.6 O Fo th o e tw r l e e a a r t . h .. e .. r . .. p .. r .. o .. d .. u ... c .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 0 6 7 . . 3 6 | i 1 1 0 17 9 . . 1 8 1 1 1 1 8 0 . . 1 6 1 1 1 1 8 1 . . 5 2 Furniture and household durables: Fuels and related products, and power: C H o o m us m eh e o rc ld ia l f u fu rn rn it i u tu re r . e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 8 3. . 9 2 1 1 1 1 5 8 . . 5 2 1 11 1 8 6 . . 3 0 1 11 1 8 6 . . 3 7 C E C G l o o a e s k a c t e l f r . . u . i . . c . . e . . . . l . p . s . . . . o . . . . . . . . w . . . . . . . . . . . e . . . . . . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 1 1 1 0 1 4 7 8 0 5 6 . . . . 1 9 0 2 , ; j | 1 1 1 1 0 1 9 5 7 6 0 0 . . . . 9 3 2 5 1 1 1 1 9 1 5 1 2 0 0 8 . . . . 7 5 9 0 1 1 1 1 9 5 1 2 2 5 0 0 . . . . 6 0 2 0 H O H Fl o o t o h u m o e s r r e e h c h e o o o le v l u d c e s t r e r a i h o n p o n g p l i s l c d i . a . e . d n .. q u . c . u r . e . a i . s . p b . . . . m l . . . . e . . . . e . . g . . n . . o . . . t . o . . . . . . . . d . . . . . s . . . 1 1 1 9 0 1 0 4 7 9 0 . . . . 1 8 2 6 1 1 9 9 2 0 7 3 2 7 . . . . 9 1 4 4 1 1 9 9 2 0 8 3 2 6 . . . . 1 3 3 9 1 1 9 9 2 0 8 2 4 7 . . . . 1 9 2 5 Crude petroleum.................................... 113.2 ! 113.2 113.2 113.2 Petroleum products, refined............... 106.9 106.1 106.1 105.5 Nonmetallic mineral products: Chemicals and allied products: Flat glass.............................................. 123.1 | 123.6 123.6 123.6 Industrial chemicals.............................. 101.9 101.1 101.4 101.4 Concrete ingredients......................... 117.3 i 124.2 124.4 124.6 Prepared paint........................................ 114.5 115.9 116.2 117.3 Concrete products.............................. 117.6 | 122.9 123.4 123.8 Paint materials....................................... 103.6 101.9 102.7 102.7 Structural clay products excluding Drugs and pharmaceuticals................. 102.4 102.5 102.3 102.2 refractories...................................... 112.7 114.9 114.8 116.1 Fats and oils, inedible.......................... 142.6 115.9 111.3 110.7 Refractories......................................... 126.7 127.1 127.1 127.1 Agricultural chemicals and products. 92.6 90.3 90.3 90.2 Asphalt roofing.................................. 108.8 ! 131.2 131.2 131.2 Plastic resins and materials................. 89.8 89.0 88.6 89.3 Gypsum products.............................. 97.9 114.1 113.4 112.8 Other chemicals and products........... 111.2 112.4 112.4 112.5 Glass containers................................. 131.9 I 131.5 131.5 131.5 Other nonmetallic minerals............. 121.0 125.6 125.7 125.9 Rubber and plastic products: Crude rubber.......................................... 99.1 98.5 99.2 98.8 Tires and tubes...................................... 107.5 110.8 110.3 108.4 Transportation equipment: Miscellaneous rubber products.......... 117.0 119.2 119.7 120.4 Plastic construction products (Dec. Motor vehicles and equipment. 114.1 117.5 117.9 118.1 1969 = 100).......................................... 95.8 93.8 93.7 93.8 Railroad equipment..................... 119.0 122.6 123.7 123.9 Unsupported plastic film and sheeting (Dec. 1970=100)............................... 102.9 100.0 100.0 99.9 Laminated sheets, high pressure (Dec. 1970= 100)............................... 99.9 97.9 98.2 98.6 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition....................................... 112.3 j 113.1 113.5 114.0 Lumber.................................................... 120.3 143.8 146.9 150.4 Tobacco products................................ 116.9 116.7 117.4 117.4 Millwork................................................. 115.2 124.3 124.9 125.5 Notions................................................... 111.3 111.7 111.7 111.7 Plywood................................................... 112.8 117.8 120.2 125.1 Photographic equipment and supplies 105.6 106.5 106.4 106.7 Other wood products............................ 118.1 119.1 119.6 119.9 Other miscellaneous products........... 111.7 113.0 113.9 114.4 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 □ APRIL 1972 GROSS NATIONAL PRODUCT (In billions of dollars) 1970 1971 Item 1929 1933 1941 1950 1967 1968 1969 1970 j1971 1 1 IV I II III IV 1 Gross national product........................................ 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.11,046.8 988.41,020.81,040.01,053.4 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 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 Fixed investment............................................... 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 83.3 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 Producers’ durable equipment.............. 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 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 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 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 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.C 16.9 18.4 90.7 98.1 99.2 97.2 97.6 95.9 96.4 96.0 97.6 100.3 13.8 14.1 12.* 78.: 78.< 75.4 71.4 73.2 72.6 71.4 70.2 71.4 3.1 4.3 18.4I 20.5 707 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................................................................. 203.6 141.5 263.7 355.3 675.2! 706.6 724.7| 720.0 739.4 715.9 729.7 735.8 740.7 751.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, July 1968, July 1969, July 1970, July adjusted totals at annual rates. For back data and explanation of series, 1971, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1970 1971 1929 1933 1941 1950 1967 1968 1969 1970 1971-° Item IV I II III m National income..................................................... 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 802.1 831.7 847.3 855.2 870.3 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 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 .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- .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.C 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 10.5 -1.2 15.2 37.7 78.7 84.3 78.6 70.8 81.0 69.0 79.5 82.5 80.0 82.2 Profits before tax............................................. 10.0 1.0 17.7 42.6 79.8 87.6 84.2 75.4 85.5 71.6 83.0 86.9 85.8 86.2 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 36.4 Profits after tax............................................. 8.6 .4 10.1 24.9 46.6 47.8 44.5 41.2 47.6 39.2 44.8 47.8 48.2 49.8 Dividends................................................... 5.8 2.0 4.4 8.8 21.4 23.6 24.4 25.C 25.5 25.0 25.6 25.4 25.7 25.3 2.8 -1.6 5.7 16.0 25.3 24.2 20.0 16.2 22.1 14.3 19.2 22.4 22.5 24.5 .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

APRIL 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^ IV I II 111 IVP Gross national product........................................ 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.11,046.8 988.41,020.81,040.01,053.4 1,072.9 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 bility ....................................................... 7.C 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 -5.0 -1.6 -4.3 -4.9 -4.7 -6.0 Plus: Subsidies less current surplus of gov- -.1 .1 .2 1.4 .7 1.1 1.7 1.0 1.7 1.8 .7 .7 .7 Equals: National income...................................... 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 802.1 831.7 847.3 855.2 870.3 Less: Corporate profits and inventory valu­ ation adjustment.................................. 10.5 -1.2 15.2 37.7 78.7 84.3 78.6 70.8 81.0 69.0 79.5 82.5 80.0 82.2 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 consumers.............................................. 2.5 1.6 2.2 7.2 23.6 26.1 29.C 31.7 31.9 32.4 31.8 31.4 32.2 32.2 Dividends................................................... 5.8 2.C 4.4 8.8 21.4 23.6 24.4 25.0 25.5 25.0 25.6 25.4 25.7 25.3 .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 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p Total personal income............................ 803.6 857.0 832.4 838.3 843.0 848.6 868.6 857.7 866.1 869.9 871.2 874.9 883.9 892.0 896.9 Wage and salary disbursements........... 541.4 574.2 560.6 564.8 567.7 572.0 573.2 572.9 579.2 579.8 581.3 584.8 594.8 602.1 605.8 Commodity-producing industries. . 200.7 205.7 201.8 203.3 204.4 206.1 206.4 205.0 205.3 206.7 207.4 208.1 211.4 213.2 214.4 Manufacturing only........................ 158.3 160.8 158.5 159.2 159.6 161.1 161.4 160.2 160.2 161.1 162.0 162.2 165.3 165. t 167.5 Distributive industries....................... 129.1 138.8 135.2 136.5 137.2 138.3 138.1 138.0 140.0 140.7 140.9 141.6 144.7 146.3 147.5 Service industries................................ 96.7 105.9 102.4 103.3 103.9 105.0 105.7 106.3 107.4 107.7 108.1 108.7 109.9 111.4 112.1 Government......................................... 114.8 123.8 121.2 121.6 122.1 122.6 123.0 123.6 126.6 124.7 124.9 126.4 128.8 131.2 131.8 Other labor income................................ 30.8 33.7 32.6 32.8 33.1 33.4 33.7 33.9 34.1 34.3 34.4 34.6 34.8 35.0 35.2 Proprietors’ income................................ 66.8 68.4 66.3 66.6 66.9 67.1 67.4 68.3 69.3 70.1 70.4 70.6 70.7 70.8 71.1 Business and professional................. 51.0 52.1 51.5 51.7 51.8 51.9 52.1 52.2 52.3 52.3 52.4 52.5 52.6 52.5 52.6 Farm...................................................... 15.8 16.3 14.8 14.9 15.1 15.2 15.3 16.1 17.0 17.8 18.0 18.1 18.1 18.3 18.5 Rental income......................................... 23.3 24.3 23.5 24.0 24.1 24.2 24.3 24.4 24.5 24.5 24.5 24.6 24.6 24.7 24.8 Dividends................................................. 25.0 25.5 25.7 25.5 25.5 25.6 25.2 25.6 25.7 25.7 25.7 25.7 24.3 25.8 25.9 Personal interest income....................... 64.7 67.5 66.6 66.4 66.6 66.7 66.9 67.4 68.1 68.8 68.7 68.6 68.4 68.7 68.9 Transfer payments.................................. 79.6 94.7 87.8 89.1 89.8 90.5 109.0 96.2 96.5 97.9 97.4 97.6 98.2 98.7 99.2 Less: Personal contributions for social insurance.......................................... 28.0 31.2 30.7 30.9 30.9 31.0 31.1 31.1 31.4 31.4 31.4 31.6 32.0 33.9 34.0 Nonagricultural income.......................... 781.4 834.0 810.8 816.6 821.1 826.5 846.5 834.8 842.4 845.3 846.4 850.1 859.2 867.1 871.7 Agricultural income................................ 22.2 23.0 21.5 21.7 21.9 22.1 22.2 22.9 23.7 24.6 24.7 24.7 24.8 24.9 25.2 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A.72 FLOW OF FUNDS □ APRIL 1972 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 I II III IV I II III Funds raised, by type and sector Total funds raised 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 ? U.S. Government................................ 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 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 .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 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 ft 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 1? 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 n 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 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 ?1 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 ?? 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 73 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 'M 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 ?5 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 ?6 Corporate...................................... 24.9 29.3 30. j 39.1 38.8 37.4 41.0 36.9 45.2 33.6 39.2 47.2 49.9 59.4 26 ?7 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 Total funds raised................................ 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 Advanced directly by— U.S. Government............................ 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 2 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 3 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 4 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 5 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 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 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 59.8 44.9 8 Less funds raised......................... .1 .2 .2 4.3 -1.8 5.0 6.8 9.1 4.1 -11.6 -8.9 -1.7 .6 .9 9 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 10 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 11 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 12 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 13 Foreign............................................... -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 14 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 15 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 16 State and local governments... 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 17 Households.................................... 11.9 * 5.8 18.3 10.6 26.4 25.3 24.8 8.8 8.1 .5 -46.3 -5.2 14.6 18 Less: Net security credit............ -.2 2.2 1.4 -1.6 -1.4 -3.2 -.4 -3.8 -2.1 -.2 .6 .1 4.5 4.4 19 Sources of funds supplied to credit markets Total borrowing 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

APRIL 1972 □ FLOW OF FUNDS A 73 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 1 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 2 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 3 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 4 5 Households............................... 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 5 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 6 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 7 8 Financial sectors..................... -.1 1.0 .9 .5 1.3 .9 .8 .5 1.2 1.4 2.0 1.9 -.3 1.1 8 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 9 10 Rest of the world........................ -1.0 .3 .3 .3 .3 .6 * 1.4 -.4 -.5 .5 -.1 -.2 -.2 10 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 1 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 3 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 4 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 5 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 6 7 At savings institutions................... 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 7 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 8 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 9 10 Credit unions........................... .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 10 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 11 12 Cr. union deps. at S & L*s... -.2 .3 -.1 * .7 -.1 .3 .8 .6 .2 1.3 1.8 1.5 .8 12 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 .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 Commercial banks.......................... -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 Nonbank finance.............................. .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 Vet 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 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 1.1 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 Rest of the world............................ .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 Total net borrowing............................. 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 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

A 74 U.S. BALANCE OF PAYMENTS □ APRIL 1972 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1970 1971 Line Credits+> debits — 1969 1970 1971P IV lr IIr III IVp Summary—Seasonally adjusted 1 Merchandise trade balance 1........................................................ 660 2,110 -2,879 142 248 -1,061 -540 -1,526 2 Exports...................................................................................... 36,490 41,980 42,769 10,461 11,016 10,706 11,475 9,572 3 Imports...................................................................................... -35,830 -39,870 -45,648 -10,319 -10,768 -11,767 -12,015 -11,098 4 Military transactions, net.............................................................. -3,341 -3,371 -2,854 -770 -664 -667 -722 -801 5 Travel and transportation, net..................................................... -1,780 -1,979 -2,246 -478 -434 -617 -559 -636 6 Investment income, net 2............................................................... 5,975 6,242 7,950 1,626 1,789 2,176 1,702 2,281 7 U.S. direct investments abroad............................................ 7,340 7,906 9,297 1,988 2,040 2,416 2,133 2,708 8 Other U.S. investments abroad............................................ 3,199 3,503 3,414 851 864 832 842 876 9 Foreign investments in the United States......................... -4,564 -5,167 -4,761 -1,213 -1,115 -1,072 -1,273 -1,303 10 Other services, net............................................................................ 497 588 728 150 211 175 175 168 11 Balance on goods and services 3............................................................ 2,011 3,592 699 670 1,150 6 56 -514 12 Remittances, pensions, and other transfers............................. -1,266 -1,410 -1,459 -351 -342 -355 -385 -377 13 Balance on goods, services, and remittances...................................... 745 2,182 -760 319 808 -349 -329 -891 14 U.S. Government grants (excluding military)........................... -1,644 -1,739 -2,014 -485 -428 -483 -542 -562 15 -899 444 -2,774 -166 380 -832 -871 -1,453 16 U.S. Government capital flows excluding nonscheduled repayments, net 4........................................................................ -2,106 -1,837 -2,071 -450 -602 -679 -421 -369 17 Nonscheduled repayments of U.S. Government assets........... -87 244 225 40 4 102 72 48 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. 263 -436 -536 -263 -85 -55 -174 -221 19 Long-term private capital flows, net........................................... — 5C -1,453 — 4,12? 7 -1,009 -1,793 -1,797 472 20 U.S. direct investments abroad............................................ — 3,254 -4,445 -4,526 -934 -1,370 -1,393 -1,404 -358 21 Foreign direct investments in the United States.............. 832 969 -192 160 92 -16 — 38€ 120 22 Foreign securities.................................................................... -1,494 -942 — 91( -337 -353 -388 -24S 79 23 U.S. securities other than Treasury issues......................... 3,112 2,19C 2,251 792 559 196 582 914 24 Other, reported by U.S. banks............................................ 477 199 -796 56 -127 -234 -295 -140 25 Other, reported by U.S. nonbanking concerns................. 277 576 45 270 190 42 -44 -143 26 -2,879 -3,038 -9,284 -832 -1,312 -3,257 -3,191 -1,523 27 Nonliquid short-term private capital flows, net....................... -602 -545 -2,529 -175 -381 -409 -1,008 -731 28 Claims reported by U.S. banks............................................ -65? -1,015 -1,84£ -396 — 7C -186 -954 -638 29 Claims reported by U.S. nonbanking concerns............... -35 — 36C -576 -171 -125 — 13S -129 -184 30 Liabilities reported by U.S. nonbanking concerns.......... 91 830 -105 392 -186 — 85 75 91 31 Allocations of special drawing rights (SDR’s)........................ 867 717 216 180 179 179 179 32 Errors and omissions, net............................................................. -2,603 -1,104 -10,878 -233 -1,012 -2,313 -5,283 -2,270 33 Net liquidity balance................................................................................ -6,084 -3,821 -21,973 -1,024 -2,525 -5,800 -9,303 -4,345 34 Liquid private capital flows, net................................................... 8,786 -6,000 -7,794 -2,454 -3,025 53 -2,882 -1,940 35 Liquid claims............................................................................ 124 242 -1,089 157 — 31( 86 -557 -308 36 Reported by U.S. banks................................................ -209 -119 — 58C -79 -85 31 -407 -119 37 Reported by U.S. nonbanking concerns................... 33: 361 — 509 236 -225 55 —15( -189 38 Liquid liabilities....................................................................... 8,662 -6,242 —6,705 -2,611 -2,715 -33 -2,325 -1,632 39 To foreign commercial banks...................................... 9,166 -6,507 -6,902 -2,888 -3,067 -85 -2,112 -1,638 40 To international and regional organizations............ -6: 179 675 79 28C 19S 156 41 41 To other foreigners......................................................... -441 86 -478 198 72 -146 -369 -35 42 Official reserve transactions balance.................................................... 2,702 -9,821 -29,767 -3,478 -5,550 -5,747 -12,185 -6,285 Financed by changes in— 43 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Government.................................................. -162 535 341 77 -8 -8 -9 366 44 Nonliquid liabilities to foreign official agencies reported by U.S. banks.............................................................................. -836 —81C -539 -188 -201 — 16C -173 -5 45 Liquid liabilities to foreign official agencies............................. -517 7,619 27,617 2,765 5,077 5,256 11,173 6,111 46 U.S. official reserve assets, net..................................................... -1,187 2,477 2,348 824 682 659 1,194 -187 47 Gold........................................................................................... -967 787 866 422 109 456 30C 1 48 SDR’s........................................................................................ -851 — 24S -76 -55 17 -29 -182 49 Convertible currencies........................................................... 814 2,152 381 469 373 -66 72 2 50 Gold tranche position in IMF............................................. -1,034 389 1,350 9 255 252 851 -8 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)....................................................................... 756 613 729 169 188 159 253 129 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. 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APRIL 1972 o U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 75 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1970 1971 Credits +, debits — 1969 1970 1971^ IV I'­ ll'- | III IVp Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance............................................................................ -6,084 -4,688 -22,690 -1,240 -2,705 -5,979 -9,482 -4,524 Official reserve transactions balance................................................. 2,702 -10,688 -30,484 -3,694 -5,730 -5,926 -12,364 -6,464 Balances not seasonally adjusted Balance on goods and services (line 11).......................................... 2,011 3,592 699 1,349 1,513 228 -1,291 250 Balance on goods, services, and remittances (line 13)................. 745 2,182 -760 1,002 1,188 -140 -1,683 -124 Balance on current account (line 15)................................................ -899 444 -2,774 552 732 -670 -2,184 -651 Balance on current account and long-term capital 4 (line 26)... -2,879 -3,038 -9,284 706 -1,262 -3,613 -4,468 61 Balances including allocations of SDR’s: Net liquidity (line 33)................................................................... -6,084 -3,821 -21,973 -152 -1,847 -6,598 -10,083 -3,445 2,702 -9,821 -29,767 -3,174 -4,718 -6,462 -12,704 -5,883 Balances excluding allocations of SDR’s: Net liquidity................................................................................... -6,084 -4,688 -22,690 -152 -2,564 -6,598 -10,083 -3,445 Official reserve transactions........................................................ 2,702 -10,688 -30,484 -3,174 -5,435 -6,462 -12,704 -5,883 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 1969 1970 1971 1972 1969 1970 1971 1972 Month: Jan... 32,161 3,406 3,733 4,221 3 2,002 3,223 3,683 4,540 159 183 50 -319 Feb.. 32,266 3,547 3,691 3,806 3 2,672 3,278 3,550 4,403 -406 269 141 -598 Mar.. 33,188 3,376 3,815 32,982 3,218 3,565 206 158 250 Apr.. 33,318 3,409 3,521 33,183 3,263 3,754 135 146 -232 May. 3 3,268 3,661 3,783 3 3,257 3,338 3,983 11 323 -201 June. 33,179 3,730 3,661 33,152 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 I___ 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 □ APRIL 1972 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1970 1971 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 IV I II III IV Western Europe: -82 -55 -100 -25 4 -40 -83 -58 110 110 -518 -405 -884 — 601 600 325 -129 -473 -129 -282 -191 -225 500 -1 -2 -2 -2 -52 41 2 200 -80 -60 -85 -209 -76 -60 -35 -19 -50 -25 -30 -25 -130 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 -75 -50 -50 329 618 150 80 -879 -835 200 1 -6 -35 -49 16 -47 11 -29 -13 -21 15 -6 -22 -399 -88 — 1,299 -659 -980 -669 969 -204 -796 -180 -85 -448 -263 200 150 50 Latin American republics: — 30 -39 -25 -25 -28 -23 72 54 25 -3 _ j * -23 -23 10 29 7 * -1 -25 -11 -9 -13 -6 11 -40 -29 -80 -5 -66 * -4 • 32 56 17 -41 9 -65 -54 -131 -5 -111 • -4 * Asia: -10 -4 -21 -42 -56 -119 -119 -11 -11 -1 -95 -35 -35 -34 -10 -10 25, 20 * -1 9 40 -4 -2 -8 -1 -1 -1 -50 -81 11 -30 -30 -13 -6 -14 -14 -22 -75 -9 2-91 39 -7i 21 21 -1 12 3 -24 -86 -44 -366 42 -213 -38 -197 -15 10 -32 -1 -36 —7 -16 -22 i ■ sa ■ \C1 3 — 68 -1 -81 -6 -75 -1 -4 * * -392 -36 -1,322 -608 -1,031 -1,118 957 4 — 631 -845 4 —563 -102 -445 -296 -1 «-225 177 22 -3 10 —156 -22 4142 -7 -11 -4 -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 s Includes $259 million gold subscription to the IMF in June 1965 for sent repurchase of dollars, including dollars derived from charges on a U.S. quota increase, which became effective on Feb. 23, 1966. In figures purchases and from other net dollar income of the IMF. The United published by the IMF from June 1965 through Jan. 1966, this gold sub­ States has a commitment to repurchase within 3 to 5 years, but only to scription was included in the U.S. gold stock and excluded from the the extent that the holdings of dollars of the IMF exceed 75 per cent of reserve position. the U.S. quota. Purchases of dollars by other countries reduce the U.S. 6 Includes $30 million of special drawing rights. commitment to repurchase by an equivalent amount. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. 3 Includes dollars obtained by countries other than the United States quota was increased to $4,125 million in 1959, to $5,160 million in Feb. from sales of gold to the IMF. 1966, and to $6,700 million in Dec. 1970. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) Gold stock1 Con­ Reserve Gold stock1 Con­ Reserve E y n e d a r of Total Total 2 Treasury v c fo e u c r r r i e t r e i i e b s g n l n e ­ p I o M s i i n t F io 3 n SDR’s4 E m n o d n t o h f Total Total2 Treasury v c fo e u c r r i r e t e r i i e s b g 5 n l n e ­ p I o M s i i n t F io 3 n SDR’s4 1958... 22,540 20,582 20,534 1,958 1971 1959.. . 21,504 19,507 19,456 1,997 Mar.... 14,342 10,963 10.732 256 1,680 1.443 1960. .. 19,359 17,804 17,767 1,555 Apr.. .. 14,307 10,925 10.732 257 1,682 1.443 May... 13,811 10,568 10.332 318 1,678 1.247 1961. .. 18,753 16,947 16,889 116 1,690 June... 13,504 10,507 10.332 322 1,428 1.247 1962... 17,220 16,057 15,978 99 1,064 July.... 13,283 10,453 10,332 250 1,433 1,147 1963... 16,843 15,596 15,513 212 1,035 Aug.... 12,128 10,209 10,132 248 574 1,097 1964. .. 16,672 15,471 15,388 432 769 Sept__ 12,131 10,207 10,132 250 577 1,097 1965. . . 15,450 613,806 613,733 781 6 863 Oct.... 12,146 10,207 10,132 259 580 1,100 Nov... . 12,131 10,206 10.132 243 582 1,100 1966... 14,882 13,235 13,159 1,321 326 Dec.... 812,167 10,206 10.132 8 276 585 1,100 1967... 14,830 12,065 11,982 2,345 420 1968... 15,710 10,892 10.367 3,528 1,290 1972 1969... 716,964 11,859 10.367 7 2,781 2,324 Jan.. . . 12,879 10,206 10,132 276 587 1,810 1970.. . 14,487 11,072 10,732 629 1,935 851 Feb.... 12,330 9,662 9,588 276 582 1,810 1971... 812,167 10,206 10,132 8 276 585 1,100 Mar.... 12,270 9,662 9,588 212 586 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 Period oth w e i r t h c o I u M nt F ries position P s t u a d io y b o m n 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 1 T t c f i r o c u o a i r r n e n e r s s i s e g a n 2 i n c n ­ ­ I i M nc F o m ne 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 P q e U u r o . o c S f t e . a nt p i ( e n e r n i I o d M d o ) F f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1.640 45 -723 6 1 ,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 «712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6.115 91 585 1971—Mar.. * 20 20 5,020 75 1,680 Apr.. -3 1 -2 5,018 75 1,682 May. -2 7 4 5,022 75 1,678 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 Mar., -4 -4 6.114 91 586 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. □ APRIL 1972 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organizations ' 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 l b i t i o e h a e a b r U s n r b o y t m k e i r . r l S t d s e ­ ­ . ­ M n b G o U a a o a o t b n n . r e v S l d k d s e t . e s , 4 t­ c m T b o a U a o i n u r a b b e n n v r . r l S l y a d e k d e e . s r s e ­ t t ­ ­ i i p S t b n l i t i o e a h e a b r s U n r o b y t m k e i r . r l S t e d s ­ ­ . ­ M n b G o a U a a o b o t n r n . e l S k v d d s e t e . s , t 4 ­ i i n p S t b l t i i o a h e e a U b r s n r o b y t m . k i r e S r l t s e d ­ . ­ ­ 6 M n b G o a U a o a b t o n r n . e l k v S d d s e t e . s , t 4 ­ notes 1957 i 15,825 200 200 7,917 5,724 542 1958 i 16,845 200 200 8,665 5,950 552 1959 19,428 500 500 9,154 966 7,618 7,077 541 1,190 530 660 1960 8 / \ 2 2 0 1 , , 9 0 9 2 4 7 8 80 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 87 6 6 6 7 7 , , 5 5 9 9 1 8 7 7 . . 0 0 4 4 8 8 5 5 4 5 3 0 1 1, , 5 5 4 2 1 5 7 7 5 5 0 0 7 79 7 1 5 1961 8 / 1 2 2 2 2 , , 8 9 5 3 3 6 8 80 0 0 0 8 8 0 0 0 0 1 1 1 1 . . 8 8 3 3 0 0 1 1 0 0 . . 9 9 4 4 0 0 890 8 8 , , 2 3 7 5 5 7 7 7 , ,8 7 4 5 1 9 5 5 1 1 6 6 1 1 . . 9 9 4 4 8 9 7 7 0 0 3 4 1 1 . . 2 2 4 4 5 5 1962 8 / 1 2 2 4 4 , , 0 0 6 6 8 8 8 80 0 0 0 8 8 0 0 0 0 1 1 2 2 , , 7 7 4 1 8 4 1 1 1 1 , , 9 96 9 3 7 7 7 5 5 1 1 8 8 . . 3 3 5 5 9 9 , , 9 9 1 1 1 1 4 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1 1 , , 2 2 5 8 0 4 9 9 1 1 1 1 /26,361 800 800 14,387 12.467 1,217 703 9,214 8.863 351 1 ,960 1,152 1963 126,322 800 800 14,353 12.467 1,183 703 9,204 8.863 341 1,965 1,157 1964 8 1 (2 2 8 9 , , 9 0 5 0 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 5 5 , , 4 4 2 2 8 4 1 1 3 3 , , 2 2 2 2 0 4 1 1 . . 1 1 2 2 5 5 I 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 1%5 29,115 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1966 8 \ f 2 2 9 9 , , 7 9 7 0 9 4 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 8 0 0 0 0 1 1 3 3, , 6 6 5 0 5 0 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 1 1 4 4 , , 2 3 0 8 8 7 1 1 3 3 , , 6 8 8 5 0 9 5 5 2 2 8 8 9 90 0 5 6 5 5 8 8 1 0 3 3 2 2 5 5 1967 8 / \ 3 3 3 3 , , 2 1 7 1 1 9 1 1 . . 0 0 3 3 3 3 2 2 3 3 3 3 8 8 0 0 0 0 1 1 5 5 , , 6 6 5 4 3 6 1 14 4 . , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 1 15 5 , , 7 8 6 9 3 4 1 1 5 5, , 2 3 0 3 5 6 5 5 5 5 8 8 6 6 9 7 1 7 4 4 8 73 7 2 2 0 0 4 4 1968 8.......... / \3 3 3 3 , , 6 8 1 28 4 1 1 . . 0 0 3 3 0 0 2 23 3 0 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 5 4 2 6 9 2 7 7 0 0 1 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 6 6 8 8 3 3 4 3 2 9 19698 / \4 4 1 1 , , 8 7 9 3 4 5 1 1 . . 0 0 1 1 9 9 2 21 1 9 9 8 8 0 0 0 0 1 1 1 1 , , 9 97 5 8 5 1 1 1 1 , , 0 0 5 7 4 7 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 , , 5 7 7 0 7 9 5 5 2 2 5 5 6 66 5 3 9 6 6 0 1 9 3 5 5 0 0 1970—Dec.8 / 1 4 4 3 3 , , 2 2 9 4 1 2 5 5 6 6 6 6 1 1 6 6 6 6 4 4 0 0 0 0 2 2 0 0 , , 0 0 6 5 8 7 1 1 9 9 . . 3 3 3 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 2 2 1 1 , , 8 7 1 7 3 3 2 2 1 1 , , 1 2 6 0 6 8 5 6 6 4 5 7 8 84 4 6 4 8 8 2 2 0 0 2 2 4 6 1971—Jan.. 43,666 559 159 400 20,491 19,775 287 429 21,548 20.936 612 1 ,068 1,043 25 Feb.. 44,063 559 159 400 22,320 21,599 292 429 20,191 19,582 609 993 951 42 Mar. 45,483 559 159 400 24,840 24,119 292 429 18,958 18,360 598 1,126 985 141 Apr. 47,676 548 148 400 27,252 26,531 292 429 18,587 17,984 603 1,289 1,148 141 May 51,820 548 148 400 32,090 31,346 292 452 17,845 17,276 569 1,337 1,195 142 June 51,401 548 148 400 30,639 26,808 379 3.452 18,890 18,317 573 1,324 1,181 143 July 53,295 544 144 400 32,952 26,868 632 5.452 18,409 17,830 579 1,390 1,247 143 Aug. 59,914 544 144 400 40,671 34,016 870 5,785 17,202 16,659 543 1,497 1 ,343 154 Sept. 60,770 544 144 400 42,150 35,081 1 ,015 6.054 16,596 16,081 515 1,480 1,325 155 Oct. 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 o / 1 6 6 4 4 , , 1 2 6 1 6 2 5 5 4 4 4 4 1 1 4 4 4 4 4 4 0 0 0 0 4 4 7 7, , 0 6 4 9 9 4 3 3 9 9, , 0 6 0 7 1 9 1 1. . 9 9 5 5 5 5 6 6 , . 0 09 6 3 0 1 1 4 5, , 0 4 9 0 1 0 1 1 4 3 , , 6 95 4 3 4 4 4 4 4 7 7 1 1 . . 5 5 2 2 8 8 1 1 . . 3 3 7 7 2 2 1 1 5 5 6 6 1972—Jan.*> 65,471 544 400 47,920 39,566 2,260 6.094 15,327 14.937 390 1,680 1,523 57 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 dale. to acquire income-earning assets. Upon termination of investment, the 9 Includes SI7 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

APRIL 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 1 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 1967............ 15,646 9,872 996 1,131 3,145 249 253 19683........... ' 12,548 7,009 533 1.354 3,168 259 225 12,481 7,001 532 1.354 3,122 248 224 1969 3 ......... ’411,955 5.823 495 1,679 3.190 546 222 411,978 5.823 495 1,702 3.190 546 222 1970 3 ........ /20,068 13,021 662 1.562 4,060 407 356 \20,057 13,016 662 1.562 4,055 407 355 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.. 24,840 17,151 801 1,236 4,997 242 413 Apr.. 27,252 19,119 818 1,244 5,285 257 529 May. 32,090 22,720 865 1,213 6,395 286 611 June. 30,639 20,676 843 1,262 6,895 271 692 July.. 32,952 22,447 921 1,286 7,252 285 761 Aug.. 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... 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 4 2 29 9 , , 4 4 5 1 1 2 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 6 5 1972—Jan.* 47,920 29,552 1,334 1,351 14,219 426 1,038 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 organizations 6 Payable in dollars Deposits IMF End of period Total1 Deposits Tr U ea .S su . ry Other P fo ay r i e n a i b g l n e i m n g v o e e l n s d t t ­ 5 Total b T il r U l e s a .S s a u . n r d y s O h t o h r e t- r Total Demand Time 2 bi c l e ls r ti a fi n ­ d s l t i h e a o r b m r . t 4 ­ rencies Demand Time2 c c e a rt t i e f s i­ liab.4 cates 3 1969................................ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707.............................. (41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 \41,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 1971 Jan....................... 42,154 41,776 14,769 5,673 14,453 6,881 378 400 1,043 115 155 273 499 Feb...................... 42,532 42,122 13,520 5,473 16,390 6,739 410 400 951 64 149 279 459 Mar..................... 43,864 43,212 11,854 5,158 18,703 7,497 652 400 985 73 166 242 503 Apr...................... 46,063 45,426 10,466 4,952 22,356 7,652 637 400 1,148 62 202 206 678 May.................... 50,217 49,598 10,002 4,900 26,961 7,735 619 400 1,195 49 221 209 716 June.................... 46,706 46,046 10,869 4,968 22,763 7,446 660 400 1,181 60 232 164 724 July..................... 46,345 45,693 10,274 4,955 23,439 7,025 652 400 1,247 79 224 170 774 Aug..................... 52,418 51,768 9,294 5,026 30,198 7,250 650 400 1,343 61 202 269 810 Sept..................... 52,887 52,490 10,605 5,054 29,772 7,059 397 400 1,325 92 212 146 875 Oct...................... 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.8.................. / 1 5 5 5 5 , , 4 4 0 1 4 7 5 55 5 , , 0 0 1 2 8 5 1 6 0 , , 4 3 6 99 0 4 5 , , 2 2 5 0 5 9 3 33 3, , 0 02 2 5 5 1 6 1 , , 3 2 8 8 5 5 3 3 9 86 2 4 4 0 0 0 0 1 1 , , 3 3 7 7 2 2 7 7 3 3 1 1 9 9 2 2 2 2 1 1 0 0 8 8 9 9 6 6 1972 Jan.p................... 56,426 56,994 6,157 4,275 33,906 11,656 432 400 1,523 86 200 338 898 Feb.?................... 57,324 56,851 6,024 4,367 34,494 11,966 473 1,460 85 164 295 916 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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 institutions9 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d p osi T ts ime2 T b c i r c l e U e a l r s a t . t e s S i a f s 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 r n i u e c n i r i g ­ e n s Total Dema D n e d p osi T ts ime2 T bi c c r l U e e l a s a r t . t S s e i a u f . s n i r 3 ­ d y s O t l h e i t a 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 19707.......... J \4 4 0 0 , , 5 4 4 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 1 1 1 5 5 , , 1 1 3 3 8 3 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— Feb.. 41,181 13,456 5,324 15,711 6,280 410 21,599 1,688 2,433 15,550 1,778 150 Mar.. 42,479 11.781 4,991 18,061 6,993 652 24,119 1,579 2,243 17,916 1,981 400 Apr.. 44,515 10,404 4,750 21,750 6,973 637 26,531 1,628 2.204 20,119 2,180 400 May. 48,622 9,953 4,679 26,352 7,019 619 31,346 1,643 2.204 24,702 2,377 io 420 June. 45,125 10,809 4,736 22.199 6,722 660 26,808 1,463 2,251 20,097 2,577 420 July.. 44,698 10,195 4,732 22,869 6,249 652 26,868 1,469 2,307 19,605 3,067 420 Aug.. 50,675 9,233 4,823 29,529 6,439 650 34,016 1,264 2,371 26,674 3,286 421 Sept.. 51,162 10,513 4,843 29,226 6,183 397 35,081 1,450 2,392 27,855 3,226 158 Oct.. 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 f 53,632 10,326 5,017 32.415 5,489 386 39,679 1,620 2,504 32.311 3,086 158 Dec.8 I 53,645 6,387 4,063 32.415 10,388 392 39,001 1,327 2.076 32.311 3,122 165 1972—Jan.*. 54,503 6,071 4,074 33,168 10,757 432 39,566 1,185 2.077 33,049 3,089 166 Feb.p, 55,864 5,939 4,203 34.199 11,050 473 40,686 1,099 2,161 34,096 3,163 167 To banks11 To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 c c e a r t t e if s i­ liab.4 Demand c c e a r t t e if s i­ liab.4 1969............. 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 ......... / \2 2 1 1 , , 2 1 0 6 8 6 1 1 6 6 , , 9 91 49 7 1 12 2 , , 3 3 8 7 5 6 1 1 , , 3 3 2 5 6 4 1 1 4 4 3 3 , , 2 1 0 9 2 7 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 25 5 2 2 2 2 0 0 1971—Feb.. 19,582 15,219 10,041 1,016 12 4,150 4,103 1,727 1,875 148 353 260 Mar.. 18,360 14,029 8,476 879 10 4,665 4,078 1,726 1,870 135 347 253 Apr.. 17,984 13,617 6,970 654 1,516 4,477 4,129 1,805 1,892 116 315 238 May. 17,276 13,036 6,573 590 1 ,518 4,354 4,041 1,737 1,885 131 287 199 June. 18,317 14,121 7,586 649 2,016 3,869 3,956 1,760 1,835 86 276 240 July.. 17,830 13,704 7,030 600 3,168 2,905 ,894 1,696 1,825 96 277 232 Aug.. 16,659 12,590 6,284 665 2,769 2,872 ,839 1,684 1,787 87 280 230 Sept.. 16,081 12,196 7,486 739 1,286 2,686 ,646 1,577 1,712 85 272 239 Oct.. 16,212 12,256 8,845 786 120 2,504 ,734 1,705 1,660 89 281 222 Nov.. 14,925 10,982 7,871 879 9 2,223 ,732 1,680 1,670 87 296 211 Dec.8 / \ 1 1 3 4 , , 9 6 5 4 3 4 1 1 0 0 , , 0 7 3 2 4 2 7 3 , , 0 4 4 0 7 0 8 3 5 2 0 0 2 6 , , 1 9 3 95 0 , , 6 6 9 9 1 4 1 1 , , 6 6 6 60 0 1 1 , , 6 6 6 6 3 6 9 9 6 6 2 27 7 1 4 2 2 2 2 8 8 1972—Jan. p. 14,937 10,899 3,183 330 7,382 3,770 I ,703 1 ,667 115 285 267 Feb.p 15,178 11,063 3,127 344 7,587 3,810 1,714 1,698 99 299 306 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”; vb) 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. n 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, non­ with 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

APRIL 1972 d 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. June July Aug. Sept. Oct. Nov. Dec.1 Jan.* Feb.P Europe: Austria........................................................... 185 203 274 244 244 255 246 254 254 261 252 Belgium-Luxembourg................................. 597 761 781 916 901 875 736 701 701 735 779 Denmark....................................................... 189 175 201 164 173 171 168 168 168 177 179 Finland.......................................................... 117 110 131 116 116 136 134 160 160 156 150 France............................................................ 2,267 2,467 3,242 3,663 3,302 2,842 2,858 3,150 3,150 3,234 3,311 Germany....................................................... 7,520 7,268 5,446 5,082 5,339 5,606 5,733 6,596 6,596 6,972 7,724 Greece............................................................ 184 152 159 160 179 184 175 170 170 167 164 Italy................................................................ 1,330 1,760 1,777 2,032 2,286 2,231 1,953 1,888 1,888 1,704 1,697 Netherlands.................................................. 762 609 461 283 302 315 289 271 270 306 419 Norway......................................................... 324 506 574 649 655 658 714 685 685 702 680 Portugal......................................................... 274 270 271 295 314 307 308 303 303 299 282 Spain.............................................................. 198 200 208 204 185 202 185 203 203 187 177 Sweden........................................................... 503 681 718 723 729 729 757 791 792 803 871 Switzerland................................................... 1,948 2,093 1,914 3,355 3,268 3,306 3,265 3,248 3,249 3,266 3,114 Turkey........................................................... 46 21 27 26 27 48 67 68 68 36 34 United Kingdom........................................ 5,504 6,121 6,209 6,124 6,342 7,223 7,711 7,374 7,379 7,892 7,600 Yugoslavia.................................................... 37 33 39 31 41 34 40 34 34 35 40 Other Western Europe2............................ 594 1,000 1,417 1,517 1,446 1,404 1,396 1,369 1,376 1,307 1,410 U.S.S.R.......................................................... 15 9 10 10 11 12 8 14 14 28 11 Other Eastern Europe................................ 54 66 61 45 61 56 67 53 53 84 46 Total....................................................... 22,648 24,506 23,921 25,639 25,921 26,594 26,809 27,503 27,515 28,352 28,942 Canada............................................................... 4,056 3,292 3,250 3,316 3,472 3,803 3,590 3,441 3,441 3,593 3,575 Latin America: Argentina....................................................... 539 447 501 499 419 415 437 441 441 435 420 Brazil.............................................................. 346 361 428 418 358 360 383 342 342 376 423 Chile............................................................... 266 257 235 252 247 211 189 191 191 180 146 Colombia....................................................... 247 183 178 168 178 181 179 188 188 185 176 Cuba............................................................... 7 6 7 7 6 6 6 6 6 6 6 Mexico........................................................... 821 790 705 728 672 680 706 709 715 757 747 Panama......................................................... 147 166 147 149 127 150 150 154 154 158 156 Peru................................................................ 225 200 162 146 162 163 163 164 164 164 160 Uruguay......................................................... 118 116 116 127 117 116 108 108 108 108 no Venezuela....................................................... 735 786 782 787 806 915 874 963 963 870 843 Other Latin American republics.............. 620 582 624 623 597 608 615 656 655 645 683 Bahamas and Bermuda.............................. 745 960 1,074 885 661 346 376 657 656 313 277 Netherlands Antilles and Surinam.......... 98 101 97 101 87 94 85 87 87 97 90 Other Latin America.................................. 39 46 46 49 44 42 46 36 37 43 47 Total....................................................... 4,952 5,002 5,100 4,940 4,482 4,285 4,317 4,702 4,708 4,336 4,286 Asia: China Mainland................................. 33 35 35 34 34 34 34 39 39 39 38 Hong Kong................................................... 258 306 301 311 296 316 336 312 312 304 335 India............................................................... 302 255 222 193 150 154 142 89 89 114 118 Indonesia....................................................... 73 71 67 59 57 69 65 63 63 54 71 Israel............................................................... 135 132 128 115 108 130 133 150 150 133 143 Japan.............................................................. 5,150 8,673 8,691 13,136 13,793 14,014 13,919 14,294 14,295 14,179 14,950 Korea............................................................. 199 201 187 185 195 189 216 201 196 224 220 Philippines..................................................... 285 321 333 328 322 294 304 304 304 269 264 Taiwan........................................................... 275 291 300 281 268 294 248 258 258 280 291 Thailand......................................................... 508 281 237 183 144 131 107 126 126 121 116 Other.............................................................. 717 571 634 551 568 631 579 595 595 774 708 Total....................................................... 7,936 11,137 11,135 15,376 15,936 16,255 16,082 16,432 16,427 16,493 17,254 Africa: Congo (Kinshasa)........................................ 14 16 19 44 25 16 12 12 12 12 13 11 9 7 10 11 8 9 9 9 10 9 South Africa................................................. 83 61 71 74 81 74 74 78 78 53 73 U.A.R. (Egypt)............................................. 17 15 19 13 25 16 13 24 24 14 13 Other.............................................................. 395 285 299 303 321 331 314 474 474 510 538 Total....................................................... 521 385 415 444 463 445 422 597 597 599 646 Other countries: Australia........................................................ 389 757 830 914 854 854 919 916 916 1,087 1,121 All other......................................................... 39 46 47 46 34 39 51 42 42 42 41 Total....................................................... 428 803 877 960 888 893 970 957 957 1,129 1,162 Total foreign countries.................................. 40,541 45,125 44,698 50,675 51,162 52,275 52,191 53,632 53,645 54,503 55,864 International and regional: International3............................................... 975 1,230 1,242 1,342 1,309 1,276 1,278 1,332 1,332 1,475 995 Latin American regional............................ 131 210 237 262 279 266 287 298 298 306 321 Other regional4............................................ 114 141 168 139 137 136 145 142 142 142 145 Total....................................................... 1,220 1,581 1,647 1,743 1,725 1,678 1,710 1,772 1,772 1,923 1,460 Grand total........................................... 41,761 46,706 46,345 52,418 52,887 53,953 53,901 55,404 55,417 56,426 57,324 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. □ APRIL 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.: 11 15 10 7 2 17 30 14 9 10 10 10 11 46 66 54 36 20 38 32 41 29 16 3 4 5 83 82 54 60 46 Other Latin American republics: 30 48 22 29 23 69 59 55 35 34 38 27 33 52 43 41 43 62 Ryukyu Islands (incl. Okinawa). 25 26 18 39 29 78 99 90 123 Saudi Arabia.................................. 106 166 106 41 79 79 72 57 Singapore......................................... 17 25 57 43 35 75 80 78 4 6 7 '3 4 97 117 94 91 179 161 159 17 19 16 19 18 29 29 34 44 42 Other Africa: 19 14 13 17 13 23 63 76 59 50 Ethiopia (incl. Eritrea)................. 20 33 19 12 11 15 17 10 7 8 6 8 8 10 14 10 43 47 38 13 9 23 41 22 21 23 Ot B he ri r t i L sh a t W in e A st m In e d ri i c e a s : ............................. 30 38 33 38 (6) 28 11 8 43 11 0 19 1 5 7 1 9 2 1 5 c c 6 6) ) 3 1 1 1 10 18 9 10 6 16 15 26 15 19 6 7 7 2 5 4 3 10 5 7 8 5 3 1 1 2 2 5 20 38 10 14 (6) 3 4 4 4 4 35 41 32 50 59 26 6 11 7 (6) 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 e t r h i s g e n r ­ A t r i g n e a n­ A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h t l e r l i r es 1968................................ 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969................................ 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 1970................................. 1,703 789 914 695 166 54 13 138 6 385 8 122 240 1971 Feb...................... 1,470 687 784 574 160 50 13 109 6 317 1 102 235 Mar..................... 1,350 630 720 494 167 59 13 91 6 262 1 96 251 Apr...................... 1,187 577 611 407 147 57 13 92 7 186 1 85 225 May.................... 1,142 548 594 393 144 57 13 94 8 182 1 83 213 June.................... 1,129 557 572 334 189 48 13 87 8 130 1 80 252 July..................... 1,024 501 524 284 189 51 13 88 8 83 1 91 239 Aug..................... 895 480 415 172 190 53 13 66 8 12 1 92 223 Sept..................... 878 473 405 161 189 55 15 62 8 12 1 90 217 Oct...................... 935 483 452 159 236 57 15 84 8 12 1 92 240 Nov..................... 911 446 465 170 237 59 15 101 7 8 * 89 245 Dec...................... 915 446 469 156 257 56 2 109 6 3 * 83 265 1972—Jan.*................... 1,009 546 462 150 254 58 2 105 6 1 * 80 268 Feb.*.................. 1,062 565 497 165 253 79 2 107 6 * * 79 303 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.** Feb.*' Europe: Belgium-Luxembourg....................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Switzerland.......................................... 34 34 31 30 29 29 29 29 29 60 60 53 53 United Kingdom................................ 518 510 519 485 490 496 460 432 427 362 323 279 283 Other Western Europe..................... 24 25 25 25 25 25 25 49 71 82 85 95 95 Eastern Europe.................................. 6 6 6 6 6 6 6 5 5 5 5 5 5 Total............................................ 589 582 587 552 557 562 525 521 538 516 480 438 441 Canada..................................................... 177 174 173 175 174 175 175 175 175 179 181 179 179 Latin America: Latin American republics................. 2 1 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 7 7 7 7 7 7 7 7 7 7 7 7 Asia: 20 20 20 20 20 20 20 20 20 20 Japan.................................................... 55 55 55 55 142 395 633 755 1,009 1,488 1,717 2,007 2,146 Other Asia........................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................. 85 85 85 85 172 425 663 784 1,038 1,518 1,727 2,017 2,156 Africa....................................................... 43 43 43 43 43 43 43 43 25 8 8 8 8 All other................................................... « « « « « * « « « * « * * Total foreign countries......................... 901 890 895 861 952 1,211 1,413 1,530 1,782 2,228 2,402 2,650 2,791 International and regional: International....................................... 17 115 115 115 115 115 126 126 126 126 126 126 126 Latin American regional................. 25 26 26 27 27 28 28 29 29 30 30 31 31 Total............................................. 42 141 141 142 142 143 154 155 155 156 156 157 157 Grand total................................ 943 1,031 1,036 1,003 1,095 1,354 1,567 1,685 1,937 2,383 2,558 2,807 2,948 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 Korea Tai­ Thai­ Total Ger­ Italy Switz­ gium ada 1 many wan land many 3 erland 196 9 <3,181 1,431 1,129 135 20 100 4 1,750 4 1,084 125 541 197 0 3.563 2.480 2.289 25 20 100 1.083 542 541 1971—Mar. 3.563 2.480 2.289 25 20 100 1.083 542 541 Apr. 3.563 2.480 2.289 25 20 100 1.083 542 541 May 5 3,592 2.480 2.289 25 20 100 5 1,111 542 5 569 June 6.592 5.480 2.289 3.000 25 20 100 1,111 542 569 July. 8.592 7.480 2.289 5.000 25 20 100 1,111 542 569 Aug. 8,924 7.479 289 5.000 23 20 100 1,444 542 902 Sept. 9,193 7.479 289 5.000 23 20 100 1,714 542 1,172 Oct.. 9,195 7.479 289 5.000 23 20 100 1.716 542 1.174 Nov. 9,271 7,554 365 5.000 22 20 100 1.716 542 1.174 Dec. 69,657 7.829 640 5.000 22 20 100 6 1,827 612 1.215 1972—Jan.. 9.658 7.829 2.640 5.000 22 20 100 1,828 612 1.216 Feb., 9.658 7.829 2.640 5.000 22 20 100 1,828 612 1,216 Mar. 9,940 8,188 2,840 5,158 22 20 100 1,752 536 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. □ APRIL 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. June July Aug. Sept. Oct. Nov. Dec.1 Jan.? Feb.? Europe: Austria............................................................ 6 5 5 8 5 4 10 11 11 8 11 Belgium-Luxembourg................................ 50 58 48 95 60 53 63 57 57 71 102 Denmark....................................................... 40 51 46 47 47 50 48 49 49 50 54 Finland........................................................... 66 133 129 117 114 113 116 135 135 137 139 France............................................................ 113 106 124 155 148 132 179 267 268 311 345 Germany....................................................... 186 250 231 259 252 197 227 235 235 202 253 Greece............................................................ 26 22 21 22 21 24 23 30 30 30 25 Italy................................................................ 101 120 133 140 130 114 139 159 161 166 182 Netherlands................................................... 61 87 84 92 82 70 90 105 105 92 102 Norway.......................................................... 54 67 61 71 68 66 66 67 67 72 71 Portugal......................................................... 11 18 13 11 12 10 12 12 12 14 14 Spain............................................................... 52 61 64 66 62 58 68 70 70 83 88 Sweden........................................................... 97 135 138 117 116 113 120 118 118 125 125 Switzerland................................................... 100 148 162 253 145 136 143 145 145 147 181 Turkey........................................................... 9 14 11 26 20 4 3 3 3 4 8 United Kingdom........................................ 379 550 499 804 454 409 535 564 564 527 564 Yugoslavia..................................................... 35 37 38 37 29 27 22 19 19 20 15 Other Western Europe............................... 13 17 18 16 16 16 11 12 12 13 16 U.S.S.R.......................................................... 3 2 2 2 2 4 10 28 28 33 37 Other Eastern Europe................................ 45 44 48 37 39 33 33 37 37 44 48 Total....................................................... 1,449 1,927 1,876 2,375 1,821 1,634 1,918 2,123 2,125 2,148 2,377 Canada............................................................... 1,085 1,003 980 994 1,128 1,165 1,171 1,581 1,581 1,507 1,649 Latin America: 326 316 334 329 337 327 316 305 305 310 306 Brazil.............................................................. 424 417 436 412 418 410 434 440 452 472 Chile............................................................... 155 156 151 143 138 142 139 139 126 122 Colombia....................................................... 299 315 335 353 353 378 380 380 375 390 Cuba............................................................... 13 13 13 13 13 13 13 13 13 13 13 Mexico........................................................... 879 943 977 901 808 839 936 936 1,004 974 Panama.......................................................... 109 99 113 97 95 109 125 125 110 106 Peru................................................................ 156 173 169 190 198 201 176 176 163 159 Uruguay......................................................... 63 43 44 41 31 32 39 41 41 41 41 Venezuela...................................................... 283 230 239 249 243 251 249 268 268 271 269 Other Latin American republics.............. 314 309 303 319 326 337 374 374 366 364 Bahamas and Bermuda.............................. 196 238 286 271 265 242 264 262 262 253 288 Netherlands Antilles and Surinam.......... 19 19 18 15 17 21 20 18 18 20 23 Other Latin America.................................. 22 27 31 36 27 32 23 i 25 i 26 23 21 Total....................................................... 3,222 3,222 3,377 3,437 3,347 3,253 3,340 3,495 3,502 3,527 3,549 Asia: China Mainland.......................................... 2 1 1 1 1 1 1 1 1 1 1 Hong Kong................................................... 39 60 69 71 78 77 71 68 70 61 81 India............................................................... 13 19 18 18 20 22 17 21 21 22 20 Indonesia....................................................... 56 30 63 60 57 39 40 41 41 37 35 Israel............................................................... 120 117 123 116 125 103 132 129 129 124 103 Japan.............................................................. 3,890 3,502 3,224 4,085 4,047 3,738 3,888 4,279 4,296 4,149 4,080 Korea............................................................. 178 259 252 252 217 286 329 348 348 330 394 Philippines..................................................... 137 125 126 119 no 111 129 136 147 150 153 Taiwan........................................................... 95 130 127 123 113 105 94 109 109 123 154 Thailand........................................................ 109 116 123 127 147 145 148 164 173 175 198 Other.............................................................. 167 200 203 239 249 235 226 252 252 237 213 Total....................................................... 4,807 4,559 4,329 5,211 5,163 4,862 5,074 5,548 5,586 5,407 5,432 Africa: Congo (Kinshasa)........................................ 4 6 18 22 21 22 21 21 21 21 14 Morocco........................................................ 6 5 6 6 5 5 4 4 4 4 4 South Africa................................................. 77 98 131 137 144 146 152 156 158 163 167 U.A.R. (Egypt)............................................ 13 14 12 11 12 11 9 10 10 11 13 Other.............................................................. 79 111 109 111 110 105 94 103 103 91 101 Total....................................................... 180 235 276 288 291 289 281 295 296 290 300 Other countries: Australia........................................................ 64 94 105 118 134 140 140 159 159 162 158 All other........................................................ 16 20 21 22 23 22 24 27 27 31 29 Total....................................................... 80 114 126 140 158 162 164 186 186 193 187 Total foreign countries.................................. 10,823 11,059 10,963 12,445 11,909 11,365 11,948 13,229 13,276 13,071 13,495 International and regional............................ 3 3 3 2 3 3 4 3 3 3 5 Grand total........................................... 10,826 11,062 10,966 12,447 11,912 11,368 11,952 13,232 13,279 13,075 13,500 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

APRIL 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 Loans to— Foreign Collec­ Accept” govt, se­ End of period Total tions made Deposits curities, Total Total O in t f i s f o t i i n c t i s u a ­ l Banks1 Others st o i a n u n g t d ­ ­ f e o o i r f g n a fo c e c r r s ­ t. Other Total w e i i t g h n e f r o s r­ a n c n o a d n m c f l e i . ­ Other paper 1969................................. 9,667 9,151 3,278 262 1,943 1,073 2,015 3,202 656 516 352 89 74 1970................................. 10,826 10,175 3,051 119 1,720 1,212 2,389 3,985 750 651 393 92 166 1971 Feb...................... 10,576 10,040 2,949 88 1,594 1,267 2,353 3,990 749 535 334 111 90 10,706 10,142 3,002 100 1,598 1,304 2,335 4,053 752 564 365 102 96 10,768 10,234 3,110 107 1,754 1,250 2,279 4,127 718 534 339 92 103 11,613 10,977 3,377 156 1,929 1,293 2,349 4,177 1,074 636 449 78 109 11,062 10,497 3,405 147 1,969 1,288 2,378 3,993 721 565 374 102 89 July..................... 10,966 10,427 3,563 200 2,051 1,312 2,364 3,682 818 539 382 62 94 12,447 11,814 4,294 191 2,682 1,421 2,357 4,162 1,001 633 497 46 90 11,912 11,230 3,835 188 2,236 1,410 2,372 4,052 972 682 481 104 97 11,368 10,672 3,520 135 2,056 1,329 2,307 3,877 969 696 473 111 112 11,952 11,280 4,028 167 2,431 1,430 2,306 3,901 1,046 671 484 89 99 Dec.2................. / \ 1 1 3 3, , 2 2 7 3 9 2 1 12 2 , , 3 3 4 9 6 4 4 3 , , 5 9 3 9 1 8 2 2 2 2 1 2 2 2 , , 6 0 3 9 1 7 1 1, , 6 6 7 8 9 0 2 2 . . 4 4 7 7 5 5 4 4 , , 2 2 7 43 0 1 1, , 6 0 5 9 1 7 8 88 8 5 6 5 5 9 9 3 2 1 1 1 1 9 9 1 1 7 7 4 4 1972—Jan.*5................... 13,075 12,330 3,882 206 2,061 1,614 2,473 4,251 1,724 744 501 139 104 Feb.*................... 13,500 12,705 4,030 196 2,053 1,781 2,430 4,413 1,832 795 569 127 99 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 End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l ri r es 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—Feb........ 2,964 2,649 484 213 1,952 289 26 77 420 266 1,264 121 521 295 Mar. ... 3,050 2,744 501 226 2,017 277 30 111 424 268 1,277 125 548 297 Apr........ 3,088 2,783 504 227 2,053 271 33 117 439 275 1,279 120 554 304 May.... 3,252 2,940 523 251 2,167 279 32 107 498 277 1,269 208 548 343 June.... 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. ... 3,393 3,090 513 265 2,311 276 28 120 546 259 1,337 221 539 371 Sept. ... 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........ 3,621 3,320 563 309 2,448 278 22 130 592 219 1,435 246 571 426 1972—Jan.*'... 3,657 3,360 563 307 2,490 273 24 132 581 256 1,436 241 583 427 Feb.p... 3,706 3,412 577 319 2,516 271 24 124 592 254 1,453 241 613 430 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. □ APRIL 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 h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1970............................... 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971............................... 1,672 130 1,542 1,661 -119 14,531 13,139 1,392 1,687 2,568 -880 1,387 1,432 -44 1972 Jan. Feb.*----- 389 1 388 443 -55 3,185 2,585 601 287 660 -373 390 368 22 1971 Feb..................... 19 17 2 5 -3 1,516 1,411 105 126 107 19 68 111 -44 88 99 -11 -11 1,411 1,314 97 176 190 -14 85 121 36 Apr.................... 5 * 5 * 4 1,383 1,412 -29 174 234 -60 117 179 -63 -33 1 -33 -33 1,163 1,126 37 118 218 -100 94 120 26 June................... 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.................... 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 Oct..................... 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 1,673 1,207 465 186 175 11 195 151 43 1972 Jan.*................. 248 1 247 305 -57 1,580 1,277 302 127 419 -292 191 170 21 Feb.y................. 141 141 138 3 1,606 1,307 299 160 241 -81 200 199 1 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 Ger­ Nether­Switzer­ United Other Total Canada Latin Other Intl. & many lands land Kingdom Europe Europe America countries regional 197 0 626 58 195 128 110 -33 482 -9 47 85 22 197 1 733 86 131 219 168 -49 627 -92 39 108 54 1972—Jan.-Feb.P 422 49 33 97 153 37 367 -31 21 47 17 1971—Fe b -32 -23 28 9 -6 -23 7 -34 -5 Mar........... -26 -26 11 2 -27 -11 -59 1 18 9 6 Apr............ -5 8 -10 8 -4 -18 -24 -7 11 11 6 May.......... 10 9 * 13 10 -6 24 -17 -4 1 7 June.......... -11 3 3 12 9 -19 -17 -11 -4 7 14 July........... -4 12 -6 15 -10 6 4 -24 2 15 -2 Aug........... 79 10 7 38 24 -33 38 11 13 16 * Sept........... 155 24 33 9 38 U 132 10 7 4 2 Oct............ -47 8 -4 2 4 -30 -21 -21 -17 5 7 Nov........... * 9 -9 22 1 -1 42 -14 -38 6 4 Dec............ 483 66 51 76 102 68 394 2 49 39 -2 1972—Jan. P 269 36 29 60 98 2 218 1 11 27 12 Feb.9........ 153 13 4 37 55 36 149 -32 10 20 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 c l 1970....................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971....................... 658 15 35 -1 171 327 39 586 37 19 -2 • -21 39 1972—Jan.-Feb.* 179 2 1 * -34 122 27 116 21 -15 54 * « 3 1971—Feb............ 137 4 3 2 16 21 39 85 -4 1 1 * -12 65 Mar........... 123 10 14 -1 32 32 5 92 11 6 3 * * 11 Apr........... -23 3 -3 * 7 7 5 19 -2 4 -6 * * — 39 May.......... 27 -1 27 * -5 19 -6 33 * 3 -1 • -2 -6 June.......... -4 -1 -1 • -2 -4 • -8 11 2 -3 * -2 -3 July........... 40 -2 -1 1 3 20 1 22 -10 3 * * * 24 Aug............ 60 -3 -1 -1 * 49 -3 42 « 1 1 « « 17 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 -18 -1 -1 -2 -12 18 -6 — 3 -13 • 1 « -3 1972—Jan.*......... 33 3 2 1 -14 20 38 49 10 -2 3 « « -27 Feb.*......... 146 -1 -1 -1 -20 102 -11 67 11 -13 51 « * 29 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) 197 0 -915 -254 -662 50 -586 -11 -129 20 1969—Mar.. 553 393 197 1 -925 -310 -615 34 -285 -53 -345 32 June. 566 397 1972—Jan. Sept.. 467 297 -Feb.*. . -351 -254 -96 42 -97 -25 -19 -2 4 Dec.. 434 278 1971—Feb... -24 -4 -20 -24 27 4 -29 1 1970—Mar.. 368 220 Mar... -50 11 -61 6 -34 11 -44 1 June. 334 182 Apr.. , -122 -46 -77 -34 29 5 -79 1 Sept.. 291 203 May., -126 4 -130 -4 -62 -13 -52 2 Dec.. 349 281 June. . -132 13 -145 -3 -93 5 -72 14 July.. -67 7 -74 -16 -6 -2 -53 2 1971—Mar.. 511 314 Aug.. -180 -152 -29 23 -23 -16 -14 1 June. 419 300 Sept.. 15 8 6 1 -7 3 8 1 Sept.. 333 320 Oct... -43 32 -75 22 -111 -13 24 2 Dec.* 311 312 Nov.. 64 11 53 37 32 -28 3 Dec.. , 55 2 53 23 53 -10 2 Note.—Data represent the money credit balances and 1972—Jan.*. -271 -242 -29 11 -24 -26 6 money debit balances appearing on the books of reporting Feb.*. -80 -12 -67 32 -73 1 -25 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Notes to Table 21a. on following page: Revised figures for Sept. and Oct. will appear in the May Bulletin. For a given month, total assets may not equal total liabilities because 1 Total assets and total liabilities payable in dollars were $6,485 and some branches do not adjust the parent’s equity in the branch to reflect $6,669 million, respectively. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent Note.—Components may not add to totals due to rounding. dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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 1005 14,815 4,817 Aug... 54,828 4,092 2,036 2,056 46,348 9,126 p20,735 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 Nov.. 58,632 5,662 3,341 2,320 51,016 10,416 22,613 1,195 16,793 1,954 Payable in U.S. dollars. 1969—Dec... 29,099 15,130 13,642 1,489 13,622 .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 r5,354 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 Nov.. 39,132 5,380 3,319 2,061 33,068 6,436 16,642 910 9,080 684 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 1971—Jan.. 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 Nov.. 33,945 3,845 2,529 1,316 29,203 5,483 15,040 527 8,153 896 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 Nov... 24,561 3,717 20,445 3,918 12,090 4,438 398 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 Nov.1 7,267 1,037 227 810 6,088 3,155 2,934 141 For notes see p. 87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To foreigners Other Offi­ Non­ Other Month-end Location and currency form branches Other cial bank Total of banks insti­ for­ parent tutions eigners bank IN ALL FOREIGN COUNTRIES 36. 32,316 3,354 20,491 1,856 6,614 1,537 ............1969—Dec. ... Total, all currencies 44. 39,964 5,571 23,695 3,335 7,363 1,477 .............1970—Oct. 45; 40,824 5,960 23,724 3,429 7,711 1,715 c47. 42,746 6,372 24,820 4,180 7,374 1,949 47, 42,981 6,839 24,840 4,258 7,044 1,642 ............1971—Jan. 47, 43,196 7,444 23,710 4,764 7,278 1,638 .........................Feb. c48, 44,069 7,507 24,175 5,006 7,381 1,556 49, 45,066 8,078 24,118 5,554 7,316 1,824 50, 45,891 8,134 25,039 5,216 7,502 1,802 52, 48,342 8,553 26,729 5,339 7,721 1,798 52, 47,934 8,345 26,545 5,373 7,670 1,716 54, 49,622 8,792 27,178 5,450 8,203 1,857 56, 51,838 9,463 28,507 5,469 8,400 2,047 57, 52,432 9,739 28,529 5,574 8,590 2,069 58, 53,673 10,038 29,354 5,749 8,531 2,066 29, 26,341 2,130 17,793 1,566 4,851 1,017 .Payable in U.S. dollars 33, 30,480 3,597 19,147 2,892 4,843 888 ............1970—Oct. 34, 31,092 3,910 19,010 2,995 5,177 1,058 36, 32,446 4,028 19,807 3,737 4,874 1,225 35, 32,216 4,356 19,522 3,818 4,513 976 35, 32,073 4,874 18,243 4,206 c4,749 944 .........................Feb. 36, 32,891 5,052 18,722 4,323 4,794 909 36, 33,717 5,644 18,717 4,743 4,612 972 37, 33,638 5,469 19,120 4,419 4,630 1,063 39, 35,782 5,793 20,610 4,604 4,775 1,041 38, 34,571 5,433 20,192 4,416 4,530 965 .........................July 39, 35,406 5,735 20,340 4,375 c4,956 1,104 40, 36,340 6,203 20,990 4,407 4,741 1,173 40, 36,287 6,113 20,805 4,502 4,867 1,136 40, 37,176 6,479 21,124 4,662 4,910 1,175 IN UNITED KINGDOM 24, 21,920 1,222 14,954 1,235 4,510 639 ............1969—Dec. .. .Total, all currencies 26, 24,759 2,021 15,818 2,454 4,515 516............1970—Oct. 27, 25,072 2,166 15,737 2,574 4,646 604 28, 26,520 2,320 16,533 3,119 4,548 592 28, 26,542 2,358 16,817 3,067 4,300 522.............1971—Jan. 28, 26,103 2,641 15,588 3,337 4,538 589.........................Feb. 28, 26,597 2,586 15,942 3,615 4,454 581 29, 26,989 2,699 15,698 4,067 4,525 601 29, 27,667 2,843 16,387 3,873 4,565 694 31, 29,021 2,931 17,578 3,967 4,545 690 30, 28,264 2,762 16,843 4,034 4,625 674 .........................July 32, 29,429 3,069 17,310 4,268 4,782 691 33, 30,877 3,344 18,431 4,318 4,785 745 33, 31,009 3,250 18,535 4,447 4,777 772 33, 31,513 3,106 18,901 4,622 4,885 814 20, 18,916 868 13,302 1,073 3,673 411 ............1969—Dec. .Payable in U.S. dollars 21, 20,185 1,375 13,251 2,198 3,361 260.............1970—Oct. 21, 20,305 1,455 13,044 2,295 3,510 311 23. 21,495 1,548 13,684 2,859 3,404 302 22: 21,156 1,540 13,718 2,816 3,081 283 ............1971—Jan. 22; 20,539 1,707 12,531 3,001 3,301 287.........................Feb. 22; 20,954 1,759 12,754 3,207 3,233 289 22. 21,249 1,900 12,640 3,588 3,121 299 23: 21,378 1,902 12,967 3,368 3,142 365 24! 22,682 2,053 14,071 3,493 3,065 361 23: 21,428 1,819 13,198 3,382 3,029 361 .........................July 24! 22,095 1,900 13,445 3,501 3,249 377 24; 22,882 2,126 14,160 3,555 3,041 400 24! 22,875 2,095 14,079 3,660 3,041 417 .........................Oct. 25; 23,166 2,028 14,185 3,813 3,140 426 IN THE BAHAMAS 3: 2,718 124 1,957 637 33............1969—Dec. ... Total, all currencies 4 3,705 212 2,706 786 62............1970—Oct. 4 3,782 278 2,543 960 65 4 4,117 435 2,863 819 72 4 4,114 705 2,568 841 59 ............1971—Jan. 4 4,121 840 2,452 830 58.........................Feb. 4 4,171 681 2,575 915 51 5 4,681 1,087 2,706 888 62 5 4,633 991 2,744 898 68 5 5,221 1,013 3,095 1,113 67 6 5,197 1,125 3, 139 933 69 .........................July 5 5,155 1,005 3,029 1,121 74 6 5,384 931 3,385 1,069 90 6 5,830 1,083 3,555 1,191 109 7 3,947 1,144 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 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 1972 Wednesday ties1 Wednesday ties1 plus Wednesday ties1 plus Maturity of sec.2 sec.2 liability Nov. Dec. Jan. 1966 1970 1971—Cont. 1.49 1.86 1.48 Mar. 30.... 1,879 Mar. 25... 11,885 Oct. 6... 2,222 3,325 Call....................................... 1.73 1.52 2.02 June 29.... 1,951 June 24... 12,172 13... 2,723 3,275 Other liabilities, maturing Sept. 28.... 3,472 Sept. 30... 9,663 20... 2,601 3,153 in following calendar Dec. 28.... 4,036 Dec. 30... 7,676 27... 2,917 2,917 months after report Nov. 3... 2,467 2,467 date; 10... 2,964 2,964 9.33 11.20 8.35 1967 1971 2 1 4 7 . .. . . . 3 3 , , 3 3 5 4 8 2 3 3 , , 3 3 5 4 8 2 3rd................................. 6 3 . . 2 6 6 7 4 3 . . 7 8 5 5 4 5 . . 5 2 3 8 J D M S u e e n a p c r e t . . . 2 2 2 2 8 7 7 9 _ . . . . . _ . . . . _ . . . 4 4 3 3 , , , , 2 0 4 1 4 5 1 6 1 9 2 6 J A F M a e p n a b r . r . . . 2 2 2 3 4 8 7 1 . . . . . . . . . . . . 6 5 2 2 , , , , 5 6 8 1 3 6 5 5 6 6 8 8 7 6 4 5 , , , , 5 6 3 1 6 5 3 6 6 8 6 6 Dec. 2 1 8 1 2 5 . . . . . . . . . . . . 2 1 1 1 , , , , 4 8 3 5 0 6 8 4 7 8 6 4 2 1 1 1 , , , , 4 8 3 5 0 6 8 4 8 7 6 4 5 6 7 8 t t t t h h h h . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . 2 1 1 . . . . . 0 3 4 9 9 0 6 0 4 4 2 2 1 . . . . . 1 1 7 4 2 5 1 5 6 7 2 2 2 . . . . . 5 1 0 3 3 5 1 7 4 0 May 26... 1,579 4,587 29... 909 909 9th................................. .24 .29 .35 J S M u e n a p r e t . . 2 2 2 1 5 6 7 9 . . . . . . 6 . . . . . . 8 . . . . . . . . . . . . . . .. . .. . . . . . . . .. . . . . . 4 6 7 , , , 9 1 20 2 0 2 0 4 J J A u u u l n y g e . 2 3 1 4 8 1 0 . . . . . . . . . . . . 1 1 1 1 , , , , 9 4 1 4 0 9 1 9 5 5 0 2 5 4 4 4 , , , , 0 6 5 2 5 4 0 9 5 5 0 6 Jan 1 . 97 2 1 1 2 5 6 2 9 . . . . . . . . . . . . 1 1 1 1 , , , , 7 5 2 4 2 6 1 0 1 8 9 8 1 1 1 1 , , , , 7 2 5 4 2 0 6 1 1 8 8 9 Mat 1 1 u 1 2 ri t t t h h ie . . . . s . . . . ; . . . . o . . . . . . f . . . . m . . . . . . o . . . . . . r . . e . . . . . . t . . . . h . . . . a . . . . n . . . . . . . . 1 . . . . . . . . 2 2 2 8 1 5 9 7 . . . . 2 8 2 2 9 2 5 4 . . . . 3 2 3 9 9 6 6 2 Dec. 31 (1/1/69) 6,039 18... 1,376 4,562 Feb. 2... 1,301 1,301 25. .. 1,405 4,075 9... 1,062 1,062 30.99 31.80 31.32 16... 1,006 1,006 1969 23... 1,068 1,068 Sept. 1. .. 1,233 3,403 Mar. 1... 954 954 Note.—Includes interest-bearing U.S. dollar Mar. 26............... 9,621 8. .. 1,239 3,409 8... 1,164 1,164 deposits and direct borrowings of all branches in June 25............... 13,269 15. .. 1,701 3,355 15... 1,263 1,263 the Bahamas and of all other foreign branches Sept. 24............... 14,349 22. .. 2,153 3,807 22... 1,346 1,346 for which such deposits and direct borrowings Dec. 31............... 12,805 29... 2,475 3,578 29... 1,526 1,526 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 ir custody End of End of United period Deposits period Total Short­ Short­ King­ Canada U se .S cu . r G iti o e 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 ments 1 ments 1 1969............... 134 7,030 12,311 1970............... 148 16,226 12,926 1968..................... 1,638 1,219 87 272 60 979 280 i r\/-r\ o /l,319 952 116 174 76 610 469 1971—Mar... 201 20,534 13,057 \1,491 1,062 161 183 86 663 534 Apr... 162 22,879 13,095 1,141 697 150 173 121 372 436 May.. 208 28,126 13,447 June.. 199 26,544 13,509 1971 Jan........... 1,299 861 144 177 116 520 381 July... 162 28,574 13,559 Feb.......... 1,356 849 173 190 144 548 418 Aug... 122 35,914 13,821 Mar.......... 1,469 983 165 175 145 706 383 Sept... 166 36,921 13,819 Apr.......... 1,488 972 178 200 138 687 397 Oct... 135 38,207 13,819 May......... 1,551 938 160 293 161 622 430 Nov. . 177 39,980 13,820 Juner.... 1,470 932 176 240 122 634 365 Dec... 294 43,195 13,815 Julyr___ 1,478 949 189 238 101 579 395 Aug.r---- 1,661 1,085 201 246 128 639 480 1972—Jan.... 147 44,359 13,815 Sept.r---- 1,579 989 198 285 107 519 489 Feb. .. 137 45,699 14,359 Oct.r___ 1,604 1,015 206 277 106 540 531 Mar... 191 46,837 14,321 Nov.r.... 1,622 1,029 205 246 143 612 517 Dec.......... 1,597 1,026 219 233 120 560 564 1 Marketable U.S. Treasury bills, certificates of in­ 1972—Jan.......... 1,703 1,046 252 242 163 589 665 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the Note.—Excludes deposits and U.S. Govt, securities obligation was incurred by the foreigner. held for international and regional organizations. Ear­ 2 Data on the two lines for this date differ because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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. Mar. June Sept.* Sept. Dec. Mar. 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 37 36 31 40 Cuba.......................................... * « * * * 1 1 1 1 1 28 22 20 20 21 149 156 143 151 146 Panama..................................... 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 Venezuela................................. 14 18 17 17 14 68 67 69 69 73 Other L.A. republics............. 35 37 29 29 33 97 99 95 96 104 Bahamas and Bermuda......... 94 154 158 152 228 153 160 210 263 340 Neth. Antilles and Surinam. 24 23 5 7 4 10 9 8 9 9 Other Latin America............. 5 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 India.......................................... 41 38 25 22 26 42 34 39 39 36 Indonesia.................................. 7 9 5 6 11 14 21 20 21 24 Israel......................................... 21 24 28 19 21 21 23 24 25 21 Japan......................................... 135 144 165 158 177 314 323 349 372 411 Korea........................................ I 1 11 10 10 29 42 50 54 52 Philippines............................... 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 1 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 4$ 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 Grand total..................... 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. □ APRIL 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 P d a o y i l n a la b r l s e P fo a r y i e n a i b g l n e Total P d a o y i l n l a a b r l s e Deposits with currencies banks abroad in reporter’s Other name 1967—Sept........................ 1,353 1,029 324 2,555 2,116 192 246 S 1,371 1,027 343 2,946 2,529 201 216 \ 1,386 1,039 347 3,011 2,599 203 209 1968—Mar........................ 1,358 991 367 3,369 2,936 211 222 June....................... 1,473 1,056 417 3,855 3,415 210 229 Sept........................ 1,678 1,271 407 3,907 3,292 422 193 Dec........................ 1,608 1,225 382 3,783 3,173 368 241 1969—Mar........................ 1,576 1,185 391 4,014 3,329 358 327 June....................... 1,613 1,263 350 4,023 3,316 429 278 Sept........................ 1,797 1,450 346 3,874 3,222 386 267 ( 1,786 1,399 387 3,710 3,124 221 365 j 2,095 1,654 441 4,124 3,495 244 385 1970—Mar........................ 2,204 1,724 480 4,238 3,699 219 320 June....................... 2,357 1,843 513 4,417 3,825 234 358 Sept........................ 2,482 1,956 526 4,314 3,708 301 306 Dec......................... 2,626 2,159 467 4,114 3,532 234 349 1971—Mar........................ 2,389 1,957 432 4,499 3,890 232 377 June........................ 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 O La th ti e n r Japan O A t s h i e a r Africa o A th l e l r America 1967—Sept.. 411 1,452 40 212 309 212 84 283 109 103 87 13 Dec.1. 414 1,537 43 257 311 212 85 278 128 117 89 16 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—Mar.. 582 1,536 41 265 330 206 61 256 128 145 84 21 June.. 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept.. 767 1,625 43 313 376 198 62 251 126 142 82 32 Dec... 1.129 1,790 147 306 419 194 73 230 128 171 83 38 1969—Mar.., 1,285 1,872 175 342 432 194 75 222 126 191 72 43 June.. 1,325 1,952 168 368 447 195 76 216 142 229 72 40 Sept.. 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec.1 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 4 56 9 2 6 1 17 7 7 2 7 7 3 7 4 3 1 88 6 1 1 4 4 1 2 2 27 4 1 9 6 75 9 4 4 2 6 1970—Mar.. 2,385 2,741 159 735 573 181 74 454 158 288 71 47 June.. 2,613 2,753 161 712 580 177 65 474 166 288 76 54 Sept.. 2,813 2,882 157 720 620 180 63 583 144 284 73 58 Dec... 3.129 2,946 146 708 669 183 60 614 140 292 71 64 1971—Mar.. 3,196 2,979 154 688 670 182 63 611 161 302 77 72 June.. 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

APRIL 1972 □ MONEY RATES A 93 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Argentina Australia Austria Belgium Canada Ceylon Denmark Finland France Period (peso) (dollar) (schilling) (franc) (dollar) (rupee) (krone) (markka) (franc) 1968................................................................... .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 1969................................................................... .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 4 19.302 1970................................................................... 126.589 111.36 3.8659 2.0139 2 95.802 16.774 13.334 23.742 18.087 1971.................................................................. 22.502 113.61 4.0009 2.0598 99.021 16.800 13.508 23.758 18.148 1971—Feb....................................................... 24.831 112.38 3.8651 2.0148 99.261 16.792 13.359 23.722 18.122 24.835 112.42 3.8670 2.0145 99.367 16.792 13.368 23.722 18.129 24.673 112.38 3.8696 2.0144 99.237 16.792 13.353 23.727 18.126 24.156 112.42 3 3.9676 2.0164 99.138 16.792 13.334 23.735 18.094 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 20.757 113.17 4.0264 2.0351 98.670 16.792 13.435 23.735 18.130 19.919 114.78 4.0844 2.0921 98.717 16.839 13.672 23.830 18.112 19.923 115.76 4.1261 2.1353 99.537 16.820 13.768 23.800 18.073 19.925 115.89 4.1280 2.1572 99.607 16.806 13.773 23.773 18.096 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 19.650 119.10 4.3342 2.2757 100.152 16.650 14.361 24.121 19.835 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 r o el 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 l i a e l n t d h d e ­ r s ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 ......................................................... 5 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 —Feb............................................................................ 27.594 13.311 241.78 .16036 .27969 32.615 8.0056 27.814 27.538 13.304 241.87 .16063 .27971 32.616 8.0056 27.816 27.516 13.315 241.79 .16070 .27972 32.604 8.0056 27.776 May............................................................................ 628.144 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 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 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 30.593 13.388 252.66 .16652 .31249 34.135 8.0056 30.503 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 31.545 13.716 261.81 .17161 .33054 35.409 8.0000 31.384 Period Z (d e N o a e l l l w a 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 ­ ) ( U p K d o n i o u n i m t n g e d 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 1970........................................................................................ 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1971........................................................................................ 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1971 _Feb............................................................................. 112.50 14.001 3.5031 140.51 1.4290 19.332 23.266 241.78 Mar............................................................................ 112.54 14.010 3.5019 140.56 1.4290 19.369 23.254 241.87 Apr............................................................................. 112.50 14.028 3.5000 140.51 1.4291 19.368 23.263 241.79 May............................................................................ 112.54 13.556 3.5013 140.56 1.4291 19.357 7 24.253 241.87 June............................................................................ 112.55 14.062 3.5027 140.57 1.4290 19.370 24.409 241.87 July............................................................................ 112.53 14.073 3.5016 140.55 1.4292 19.371 24.423 241.85 Aug............................................................................. 113.28 14.244 3.5289 141.46 1.4335 19.502 24.813 243.46 Sept............................................................................ 114.95 14.494 3.5970 140.88 1.4415 19.732 25.118 246.94 Oct.............................................................................. 115.88 14.599 3.6275 140.43 81.4457 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 25.890 260.37 119.29 15.161 3.6930 133.77 1.5369 20.956 25.974 261.81 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. * 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 □ APRIL 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 Mar. 31, Per Month 1972 cent effective Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 6.0 Dec. 1957 18.0 18.0 5.0 Jan. 1970 5.0 6.0 Mar. 1971 5.5 5.0 4.5 4.0 4.0 20.0 July 1969 20.0 5.25 Feb. 1971 4.75 4.75 6.5 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 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 6.0 Dec. 1970 5.0 4.5 4.0 3.0 3.0 5.5 Mar. 1968 8.0 8.0 6.5 Sept. 1969 6.5 4.0 Feb. 1966 4.0 5.25 5.25 6.0 Jan. 1971 6.0 6.0 May 1969 6.0 8.0 Aug. 1969 7.0 7.0 7.25 Jan. 1971 6.19 6.06 6.00 5.94 6.12 5.12 5.12 4.94 4.81 4.81 4.81 5.5 Mar. 1970 5.0 4.5 4.5 6.0 May 1969 5.5 5.0 5.0 5.75 Jan. 1971 5.5 5.25 4.75 4.75 19.0 Dec. 1970 16.0 13.0 13.0 4.5 June 1942 4.5 3.50 Nov. 1951 3.50 6.0 5.5 5.0 4.5 4.0 4.0 7.0 Mar. 1961 7.0 4.50 4.50 4.5 Sept. 1969 4.5 5.0 5.0 9.5 Nov. 1959 9.5 10.0 10.0 3.75 Feb. 1971 3.75 6.5 Mar 1971 6.5 6.25 Jan. 1971 6 0 5.0 5.0 6.5 Mar. 1971 6.0 5.5 5.0 5.0 3.75 Sept. 1969 3.75 9.8 Dec. 1970 9.25 9.25 5.0 Oct. 1959 5.0 5.0 Sept. 1966 5.0 9.0 Sept. 1970 9.0 7.0 Apr. 1970 6.0 5.0 5.0 5.0 Oct 1970 5.0 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, 4Vi 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

APRIL 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 u t , h ry s1 D m a o d y n a - e y t y o - 2 3 m P b b r o i a i l n m n ls t k , e hs3 3 T m r b e i a o ll s 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 6 d r b e 0 a i a l - y s l 9 s s u 0 , 6 ry D m a o d y n a - e y t y o ? - 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—Mar.............. 3.30 3.48 8.06 6.66 6.12 5.00 5.77 5.75 7.36 4.49 3.27 5.25 Apr............... 3.04 2.65 7.06 5.75 5.15 4.00 5.53 4.75 4.23 3.59 1.13 5.25 May............. 3.06 2.76 7.06 5.65 5.36 4.00 5.84 4.75 2.31 3.88 1.84 5.25 June............. 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 5.31 3.25 4.20 3.61 4.44 5.00 Feb . 3.48 3.79 4.85 4.37 4.43 2.50 2.75 4.15 3.19 3.38 5.00 3.51 3.70 4.77 4.34 4.58 2.50 2.26 0.98 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. dep 4 o D si a ts t . a for 1968 through Sept. 1971 are for bankers’ allowance on Sec N ti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m t e io n n t a to n d B a b n a k c i k ng d a a n ta d , M se o e n e “ ta In ry te r S n ta at t i is o t n ic a s l , 1 F 9 in 6 a 2 n . ce, ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date United (+) or inc N en e t t ive Canada d ( i + sc ) o u o n r t inc N en e t t ive Kingdom Spread d ( i - sc ) o u on n t (favor Spread (-) on (favor q ( u a b o U d a t s j . a . S i t s i . t ) o o n U S n ta i t t e e s d L ( o f n a o v d f o o r n) f p o o rw un ar d d Lon o d f on) qu A i o n t s ed q A uo U d t j . a . S ti t . o o n U S n ta i t t e e s d C ( a f n a o v a f o d r a) C f d o a o r n w l a l d a a r i r a s d n Can o a f da) Canada basis 1971 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 Mar. 3............... 4.30 3.40 .90 -.40 .50 3.41 3.38 3.40 -.02 -1.08 -1.10 10............... 4.29 3.53 .76 .15 .91 3.40 3.33 3.53 -.20 -1.28 -1.48 17............... 4.29 3.78 .51 .07 .58 3.56 3.48 3.78 -.30 -.76 -1.06 24............... 4.27 3.69 .58 . 12 .70 3.61 3.53 3.69 -.16 -.76 - .92 31............... 4.26 3.80 .46 -.11 .35 3.55 3.47 3.80 -.33 -.76 -1.09 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 □ APRIL 1972 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Intl. Esti­ End of mated Mone­ United mated Argen­ Aus­ Aus­ Bel­ period total tary States rest of Algeria tina tralia tria gium Brazil Burma Canada Chile world 1 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--Feb.................. 4,400 11,039 191 140 240 714 1,468 45 42 791 47 41,240 4,404 10,963 25,875 191 140 239 714 1,466 45 42 791 47 4,338 10,925 191 140 253 728 1,502 46 42 791 47 4,448 10,568 191 140 254 747 1,592 46 22 792 47 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 4,695 10,209 192 140 259 752 1,584 46 22 792 47 41,210 4,722 10.207 26,280 192 140 259 722 1,572 46 22 792 4,724 10.207 192 140 259 722 1,564 46 22 792 4,726 10,206 192 140 259 722 1,564 46 22 792 ^41,210 4.732 10,206 *>26,270 192 90 259 729 1.544 46 22 792 1972- 4.732 10,206 192 90 260 729 1.544 46 22 792 Feb.*.............. 5,303 9,662 729 1.544 21 792 Ger­ E pe n r d io o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 1965 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 1066 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- Feb.................. 17 64 29 3,531 3,978 99 243 131 144 16 43 2,885 534 16 64 29 3.527 3,977 99 243 131 144 16 43 2,884 539 16 64 29 3.527 4,029 99 243 131 143 16 43 2.884 636 16 64 29 3,523 4,035 99 243 130 143 16 43 2.884 641 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 14 64 49 3.523 4,076 99 243 131 143 16 43 2.884 679 14 64 49 3.523 4.077 98 243 131 143 16 43 2.884 679 14 64 49 3.523 4.077 98 243 131 143 16 43 2.884 679 14 64 49 3.523 4.077 98 243 131 143 16 43 2.884 679 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 679 1972- 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 679 14 64 49 3.523 4,077 99 243 131 144 16 2.884 711 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 i i n l e ip s ­ Po g r a t l u­ A S r a a u b d i i a 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—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 58 184 21 1,889 34 55 40 67 918 128 Dec.................. 87 322 85 58 184 21 1,909 33 55 40 67 921 128 1972__Jan.................. 87 322 85 58 21 1,908 33 55 68 921 128 Feb.?.............. 87 322 86 58 1,908 33 55 68 921 127 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 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 io o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t . ) U K d n i o i n m t g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t l r l e . ­ ments 4 196 5 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 196 6 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 196 7 583 785 203 3,089 81 92 97 93 1,291 140 401 22 -624 196 8 1,243 785 225 2,624 81 92 97 93 1,474 133 403 50 -349 196 9 1,115 784 226 2,642 82 92 117 93 1,471 165 403 51 -480 197 0 666 498 200 2,732 82 92 126 85 1,349 162 384 52 -282 1971—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 '51 249 Dec.. 410 498 200 2,909 80 82 130 85 775 148 391 r51 310 1972—Jan... 403 498 200 2,909 80 82 130 85 391 332 Feb.* 405 498 200 2,909 80 82 130 391 333 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 mitigatiori deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ A So fr u ic th a Ghana C s ( h K o a n i s n g a ­ o ) U St n a i t t e e s d C ad an a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h in il e ip s ­ t A ra u l s ia ­ o A th l e l r 1965.. 1.440.0 1,069.4 26.4 2.3 58.6 125.6 7.6 5.4 11.2 4.6 18.1 15.3 30.7 64.8 1966.. 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 1967... 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1968.. 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969.. 1.420.0 1.090.7 24.8 6.0 60.1 89.1 6.3 3.7 7.7 3.4 23.7 20.0 24.5 60.0 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 1971—Tan.. 91.3 7.0 .4 .4 2.2 Feb.. 89.6 6.6 .6 .4 2.3 Mar.. 94.3 6.7 .5 .4 2.4 Apr.. 91.9 6.5 .5 .4 2.2 May. 91.5 6.7 .5 .3 1.6 June. 92.0 6.7 .1 .4 2.4 July.. 93.4 5.8 1.1 .4 2.4 Aug.. 92.3 6.3 .6 2.4 Sept. 91.3 6.1 .6 2.4 Oct.. 93.4 6.3 .6 2.1 Nov.. 91.7 6.6 .6 Dec.. 85.7 5.9 1972—Jan.. 87.8 6.0 i 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 BANKS AND BRANCHES □ APRIL 1972 NUMBER IN OPERATION ON DECEMBER 31, 1971 Commercial and mutual savings banks Number maintaining branches or additional offices1 Commercial Commercial Mutual Mutual State savings savings Total Member Nonmember Total Nonmember Total Total Non­ Non- Non­ Non­ Na­ State In­ in­ In­ in­ Na­ State In­ in­ In­ in­ tional sured sured sured sured tional sured sured sured sured United States 2.......... 14,273 13,784 4,600 1,128 7,875 181 326 163 4,444 4,132 1,688 454 1,971 19 224 88 Alabama..................... 273 273 88 20 165 .. 95 95 48 5 42 Alaska......................... 13 11 5 5 7 7 5 2 Arizona....................... 13 13 3 9 10 10 2 7 Arkansas..................... 253 253 69 170 89 89 36 46 California................... 152 152 57 78 118 118 50 57 Colorado.................... 278 278 122 95 20 20 13 7 Connecticut............... 131 63 26 33 68 93 46 22 21 Delaware.................... 20 18 5 11 2 11 9 2 5 District of Columbia 14 14 11 2 13 13 10 2 Florida........................ 540 540 230 295 1 1 1 Georgia....................... 434 434 60 358 135 135 36 91 Hawaii........................ 10 10 1 6 8 8 1 6 Idaho........................... 24 24 7 6 11 14 14 5 3 6 Illinois......................... 1,134 1,134 415 78 638 116 116 66 9 41 Indiana....................... 412 408 122 61 222 200 200 74 23 102 Iowa............................ 666 666 99 49 510 219 219 42 16 161 Kansas........................ 603 603 171 28 403 71 71 33 7 31 Kentucky.................... 343 343 80 14 245 143 143 45 8 90 Louisiana................... 235 235 49 10 175 136 136 38 9 89 Maine.......................... 76 44 19 6 15 51 33 16 5 12 18 Maryland................... 117 112 39 7 66 76 71 28 6 37 Massachusetts........... 328 158 84 14 56 217 122 64 14 43 Michigan.................... 331 331 104 101 124 197 197 73 65 68 Minnesota.................. 732 731 198 25 505 13 13 3 1 9 Mississippi................. 183 183 38 7 138 115 115 33 5 77 Missouri..................... 672 672 98 71 497 96 96 24 15 57 Montana..................... 144 144 52 40 51 9 9 3 4 2 Nebraska.................... 443 443 125 10 303 43 43 25 1 17 Nevada........................ 8 8 4 1 3 6 6 3 1 2 New Hampshire.... 104 74 48 1 23 41 32 24 1 7 New Jersey................. 231 211 120 33 56 180 168 103 28 37 12 New Mexico.............. 68 68 33 7 28 52 52 26 5 21 New York.................. 431 311 166 73 46 26 120 290 191 104 53 26 99 North Carolina......... 95 95 23 1 70 1 65 65 20 44 North Dakota........... 169 169 42 4 120 3 52 52 11 39 Ohio............................ 515 514 218 118 176 2 291 291 152 59 80 Oklahoma.................. 437 437 197 16 222 2 66 66 43 Oregon........................ 47 46 8 36 2 32 31 7 24 Pennsylvania............. 462 454 286 23 138 7 258 251 158 15 77 Rhode Island............. 20 13 5 6 2 20 13 5 6 South Carolina......... 99 99 19 74 65 65 15 46 South Dakota........... 159 159 32 102 39 39 10 26 Tennessee................... 310 310 77 216 251 251 60 84 Texas........................... 1,215 1,215 530 628 63 63 55 Utah............................ 50 50 9 35 21 21 14 Vermont..................... 48 42 26 15 27 25 10 Virginia....................... 245 245 101 45 99 158 158 59 Washington............... 101 92 24 7 59 57 50 28 West Virginia............ 199 199 86 33 80 6 6 4 Wisconsin................... 614 611 126 40 441 173 173 129 Wyoming................... 71 71 42 16 1 1 Virgin Islands........... 1 1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1972 o BANKS AND BRANCHES A 99 NUMBER IN OPERATION ON DECEMBER 31, 1971— Continued Branches and additional offices 1 Class of bank Location Commercial banks Mutual savings Outside head office city State banks In Bank­ Total Nonmember head ing office facili­ Total city In In In non­ ties 3 Non­ Non- head contig­ contig­ Na­ State In­ in­ In­ in­ office uous uous tional sured sured sured sured county counties counties United States 2......... 24,083 22,888 13,104 3,800 5,944 40 983 212 8,475 7,446 4,116 4,046 216 Alabama..................... 298 298 209 12 77 166 106 12 14 5 Alaska......................... 60 60 53 7 19 5 14 22 5 Arizona....................... 343 343 224 20 99 110 86 82 65 4 Arkansas.................... 173 173 83 20 70 102 64 6 1 2 California................... 3,138 3,138 2,469 304 360 440 441 647 1,610 35 Colorado................... 20 20 14 6 20 Connecticut............... 629 469 250 113 106 160 148 305 156 Delaware................... 112 99 4 43 52 13 17 55 33 District of Columbia 107 107 71 29 7 107 1 Florida....................... 22 22 1 21 21 19 Georgia....................... 401 401 221 53 127 244 63 11 Hawaii........................ 139 139 9 128 52 49 4 Idaho.......................... 164 164 113 30 21 14 106 1 Illinois......................... 115 115 65 9 41 115 7 Indiana..........i.......... 671 670 359 60 251 353 318 1 Iowa............................ 328 328 61 30 237 138 141 49 Kansas........................ 71 71 33 7 31 71 2 Kentucky................... 359 359 150 60 149 221 133 ' “ 5 2 Louisiana................... 412 412 185 36 191 245 156 8 3 2 Maine.......................... 265 236 108 64 64 29 60 109 84 12 2 Maryland................... 602 558 268 75 215 157 144 185 116 10 Massachusetts........... 1,028 779 440 163 174 212 477 542 8 1 2 Michigan.................... 1,250 1,250 581 444 223 557 460 222 11 4 Minnesota................. 17 17 7 1 9 17 Mississippi................. 366 366 145 13 208 157 106 "58 45 Missouri..................... 97 97 24 15 58 97 Montana.................... 9 9 3 4 2 8 Nebraska................... 44 44 26 1 17 44 Nevada....................... 89 89 64 14 11 21 18 13 37 New Hampshire.... 84 68 54 2 12 35 42 7 New Jersey................ 1,143 1,089 741 201 147 54 284 643 167 49 New Mexico............. 139 139 79 9 51 82 48 8 1 New York................. 2,932 2,549 1,336 1,060 144 383 1,399 773 576 184 North Carolina......... 1,220 1,220 609 604 165 110 246 699 North Dakota........... 70 70 10 56 11 36 22 1 Ohio............................ 1,365 1,365 773 374 218 614 728 19 Oklahoma.................. 66 66 43 3 20 66 Oregon....................... 361 359 260 99 2 77 45 65 174 Pennsylvania............. 1,926 1,820 1,088 259 471 106 318 762 844 2 Rhode Island............. 253 178 96 74 75 65 102 47 39 South Carolina......... 453 453 250 7 196 110 63 61 219 South Dakota........... 100 100 62 4 34 16 29 21 34 Tennessee................... 526 526 294 37 194 330 182 7 7 1 Texas........................... 66 66 9 57 66 20 Utah............................ 144 144 75 29 40 27 21 50 4 Vermont..................... 93 89 50 39 4 13 37 30 13 Virginia...................... 869 869 505 126 238 310 142 192 225 16 Washington............... 645 586 462 37 87 59 228 163 97 157 3 West Virginia........... 6 6 1 1 4 6 Wiscons5- ................. 284 284 69 19 196 51 189 Wyoming................... 1 1 1 1 Virgin Islands........... 3 1 Excludes banks that have banking facilities only; banking facilities Note.—Each branch and additional office is located in the same State are shown separately; see note 3. as its parent bank except that one national bank in N.J. has one branch 2 Includes one national bank in the Virgin Islands, with eight branches, in Pa., one national bank in Calif, has two branches in Wash, and one in that became a member of the F.R. System in 1957. Ore., one noninsured (unincorporated) bank in N.Y. has one branch in 3 Banking facilities (other than branches) that are provided at military Mass. and one in Pa.; three insured nonmember banks in Puerto Rico have and other Govt, establishments through arrangements made by the Treas­ 15 branches in N.Y. In the table these branches are shown according to ury; they are operated by 148 banks, 71 of which have no other type of their own location rather than that of the parent bank. branch or additional office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A rthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer John E. Sheehan Robert C. Holland. Executive Director J. Charles Partee, Adviser to the Board Robert Solomon, Adviser to the Board Howard H. Hackley, Assistant to the Board Charles Molony, Assistant to the Board Robert L. Cardon, Assistant to the Board David B. Hexter, Assistant to the Board 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. Holland, 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. Halley, Program Director for Man­ James L. Pierce, Adviser agement Systems Stanley J. Sigel, Adviser William W. Layton, Director of Equal Em­ Murray S. Wernick, Adviser ployment Opportunity Kenneth B. Williams, 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. Stockwell, Assistant Adviser Stephen P. Taylor, Assistant Adviser Tynan Smith, Secretary Louis W einer, Assistant Adviser Murray Altmann, Assistant Secretary Levon H. Garabedian, Assistant Director Normand R. V. Bernard, Assistant Secretary Arthur L. Broida, Assistant Secretary DIVISION OF INTERNATIONAL FINANCE Elizabeth L. Carmichael, Assistant Secretary Ralph C. Bryant, Director Michael A. Greenspan, Assistant Secretary John E. Reynolds, Associate Director Robert L. Sammons, Associate Director John F. L. Ghiardi, Adviser LEGAL DIVISION A. B. Hersey, Adviser Thomas J. O’Connell, General Counsel Reed J. Irvine, Adviser Robert F. Sanders, Deputy General Counsel Samuel I. Katz, Adviser Paul Gardner, Jr., Assistant General Counsel Bernard Norwood, Adviser Pauline B. Heller, Adviser Ralph C. W ood, Adviser Robert S. Plotkin, Adviser Robert F. Gemmill, Associate Adviser Samuel Pizer, Associate Adviser DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF SUPERVISION AND REGULATION James A. McIntosh, Director Frederic Solomon, Director John N. Kiley, Jr., Associate Director Brenton C. Leavitt, Deputy Director Walter A. Althausen, Assistant Director Frederick R. Dahl, Assistant Director Donald G. Barnes, Assistant Director Jack M. Egertson, Assistant Director Harry A. Guinter, Assistant Director John P. Flaherty, Assistant Director P. D. Ring, Assistant Director Janet O. Hart, Assistant Director James L. Vining, Assistant Director John N. Lyon, Assistant Director Charles C. W alcutt, Assistant Director John T. McClintock, Assistant Director Lloyd M. Schaeffer, Chief Federal Reserve Thomas A. Sidman, Assistant Director Examiner Charles L. Marinaccio, Adviser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 101 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. Halley, Deputy Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director DIVISION OF ADMINISTRATIVE SERVICES Charles L. H ampton, Associate Director G lenn L. Cummins, Assistant Director Joseph E. K elleher, Director Benjamin R. W . K now les, Jr., W alter W . Kreimann, Deputy Director Assistant Director Donald E. A nderson, Assistant Director Henry W . M eetze, Assistant Director John D. Sm ith, Assistant Director Richard S. W att, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL OPEN MARKET COMMITTEE A rthur F. Burns, Chairman A lfred Hayes, Vice Chairman Andrew F. Brimmer David P. Eastburn J. L. Robertson Philip E. Coldw ell 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 M urray Altm ann, Assistant Secretary Edward G. Boehne, Associate Economist Normand R. V. Bernard, Assistant Secretary Ralph C. Bryant, Associate Economist Charles M olony, Assistant Secretary Lyle E. Gramley, Associate Economist H oward H. H ackley, General Counsel Ralph T. Green, Associate Economist David B. Hexter, Assistant General Counsel A. B. Hersey, Associate Economist J. Charles Partee, Senior Economist W illiam J. Hocter, Associate Economist Stephen H. Axilrod, Economist John H. K areken, Associate 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 D orrance, Jr., third federal reserve district, Vice President James F. English, first federal G aylord Freem an, seventh federal reserve district reserve district D avid Rockefeller, second D avid 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 M orris F. M iller, 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. K orsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 103 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 104 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. $1.00acopy; 10 or moi;e 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. HISTORICAL CHART BOOK. Issued annually in FARM DEBT. Data from the 1960 Sample Survey of 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. $1.00 a copy; 10 or 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. 36pp. $.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 105 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. 1968. 29pp. PRICE LEVEL CHANGES, by Peter S. Rose and Lacy H. Hunt II. Jan. 1972. 11 pp. DISCOUNT POLICY AND BANK SUPERVI­ SION. 1968.72 pp. 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. 1972.74 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 106 FEDERAL RESERVE BULLETIN □ APRIL 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 11 pp. 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 107 INTEREST RATES, CREDIT FLOWS, AND MONE­ PLANNED AND ACTUAL LONG-TERM BORROW­ TARY AGGREGATES SINCE 1964. June 1971. ING BY STATE & LOCAL GOVERNMENTS. 16 pp. Dec. 1971. 11 pp. TWO KEY ISSUES OF MONETARY POLICY. June CHANGES IN TIME AND SAVINGS DEPOSITS, 1971. 4 pp. JULY-OCTOBER 1971. Jan. 1972. 14 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. FINANCIAL DEVELOPMENTS IN THE FOURTH June 1971. 12 pp. QUARTER OF 1971. Feb. 1972. 9 pp. BANK RATES ON BUSINESS LOANS—REVISED ASSETS AND LIABILITIES OF FOREIGN SERIES. June 1971. 10 pp. BRANCHES OF U.S. BANKS. Feb. 1972. 16 pp. INDUSTRIAL PRODUCTION—REVISED AND TREASURY-FEDERAL RESERVE FOREIGN EX­ NEW MEASURES. July 1971. 26 pp. CHANGE OPERATIONS. Mar. 1972. 29 pp. WAYS TO MODERATE FLUCTUATIONS IN THE BANKING AND MONETARY STATISTICS, 1970. CONSTRUCTION OF HOUSING. Mar. 1972. Selected series of banking and monetary statistics for 11 pp. 1970 only. Feb., Mar., and July 1971. 19pp. U.S. BALANCE OF PAYMENTS AND INVEST­ REVISED MEASURES OF MANUFACTURING MENT POSITION. Apr. 1972. 15 pp. CAPACITY UTILIZATION. Oct. 1971. 3 pp. OPEN MARKET OPERATIONS AND THE MONE­ REVISION OF THE MONEY STOCK. Nov. 1971. TARY AND CREDIT AGGREGATES—1971. 14 pp. Apr. 1972. 23 pp. BALANCE OF PAYMENTS PROGRAM: REVISED CHANGES IN BANK LENDING PRACTICES, 1971. GUIDELINES FOR BANKS AND NONBANK Apr. 1972. 5 pp. FINANCIAL INSTITUTIONS. Nov. 1971. 11pp. CHANGES IN TIME AND SAVINGS DEPOSITS REVISION OF BANK CREDIT SERIES. Dec. 1971. AT COMMERCIAL BANKS, OCTOBER 1971- 5 pp. JANUARY 1972. Apr. 1972. 12 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si” A“ xiferp eht hguohtla 99-A hguorht 4-A segap o t era secnerefeR( A 108 FEDERAL RESERVE BULLETIN □ APRIL 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—Continued Agricultural loans of commercial banks, 24, 26 Ownership by individuals, partnerships, and Arbitrage, 95 corporations, 32 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 18 Banks, by classes, 20, 24, 25, 26, 39 Turnover, 15 Banks and the monetary system, 19 Deposits (See also specific types of deposits): Corporate, current, 51 Accumulated at commercial banks for payment of personal Federal Reserve Banks, 12 loans, 32 Automobiles: Adjusted, and currency, 19 Consumer instalment credit, 56, 57, 58 Banks, by classes, 11, 20, 25, 29, 39 Production index, 60, 61 Euro-dollars, 90 Federal Reserve Banks, 12,90 Bank credit proxy, 18 Postal savings, 19, 25 Bankers’ balances, 25, 28 Subject to reserve requirements, 18 (See also Foreigners, claims on, and liabilities to) Discount rates (See Interest rates) Banks and branches, number, by class and State, 98 Discounts and advances by Reserve Banks (See Loans) Banks and the monetary system, 19 Dividends, corporate, 50, 51 Banks for cooperatives, 40 Dollar assets, foreign, 77, 83 Bonds (See also U.S. Govt, securities): New issues, 47, 48, 49 Earnings and hours, manufacturing industries, 67 Yields and prices, 36, 37 Employment, 64, 66, 67 Branch banks: Euro dollar deposits in foreign branches of U.S. banks, 90 Foreign, 30, 88, 89, 90 U.S., number, by class and State, 99 Farm mortgage loans, 52, 53 Brokerage balances, 87 Federal agency obligations, 12, 13, 14, 15 Business expenditures on new plant and equipment, 51 Federal finance: Business indexes, 64 Cash transactions, 42 Business loans (See Commercial and industrial loans) Receipts and expenditures, 43 Treasury operating balance, 42 Capacity utilization, 64 Federal funds, 8, 24, 26, 30, 35 Capital accounts: Federal home loan banks, 40, 41, 53 Banks, by classes, 20, 25, 30 Federal Housing Administration, 52, 53, 54, 55 Federal Reserve Banks, 12 Federal intermediate credit banks, 40, 41 Central banks, 94, 96 Federal land banks, 40, 41 Certificates of deposit, 30 Federal National Mortgage Assn., 40, 41, 55 Coins, circulation, 16 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 24, 33 U.S. Govt, securities held, 4, 12, 15, 44, 45 Weekly reporting banks, 26, 31 Federal Reserve credit, 4, 6, 12, 15 Commercial banks: Federal Reserve notes, 12 , 16 Assets and liabilities, 20, 24, 25, 26 Federally sponsored credit agencies, 40, 41 Consumer loans held, by type, 57 Finance companies: Deposits at, for payment of personal loans, 32 Loans, 26, 56, 57, 59 Loans sold outright, 33 Paper, 33, 35 Number, by classes, 20, 98 Financial institutions, loans to, 24, 26 Real estate mortgages held, by type, 52 Float, 4 Commercial paper, 33, 35 Flow of funds, 72 Condition Statements (See Assets and liabilities) Foreign: Construction, 64, 65 Currency operations, 12, 14, 77, 83 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 25, 29, 90 Instalment credit, 56, 57, 58, 59 Exchange rates, 93 Noninstalment credit, by holder, 57 Trade, 75 Consumer price indexes, 64, 68 Foreigners: Consumption expenditures, 70, 71 Claims on, 84, 85, 90, 91, 92 Corporations: Liabilities to, 30, 78, 79, 81, 82, 83, 90,91,92 Sales, profits, taxes, and dividends, 50, 51 Security issues, 48, 49 Gold: Security yields and prices, 36, 37 Certificates, 12, 13, 16 Cost of living (See Consumer price indexes) Earmarked, 90 Currency and coin, 5, 10, 25 Net purchases by U.S., 76 Currency in circulation, 5, 16, 17 Production, 97 Customer credit, stock market, 38 Reserves of central banks and govts., 96 Stock, 4,19,77 Debits to deposit accounts, 15 Government National Mortgage Association, 55 Debt (See specific types of debt or securities) Gross national product, 70, 71 Demand deposits: Adjusted, banks and the monetary system, 19 Hours and earnings, manufacturing industries, 67 Adjusted, commercial banks, 15, 18, 25 Housing permits, 64 Banks, by classes, 11, 20, 25, 29 Housing starts, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 109 Income, national and personal, 70, 71 Real estate loans: Industrial production index, 60-63, 64 Banks, by classes, 24, 27, 39, 52 Instalment loans, 56, 57, 58, 59 Delinquency rates on home mortgages, 54 Insurance companies, 39, 44, 45, 53 Mortgage yields, 55 Insured commercial banks, 22, 24, 32, 98 Type of holder and property mortgaged, 52,53,54, 55 Interbank deposits, 11, 20, 25 Reserve position, basic, member banks, 8 Interest rates: Reserve requirements, member banks, 10 Business loans by banks, 34 Reserves: Federal Reserve Banks, 9 Central banks and govts., 96 Foreign countries, 94, 95 Commercial banks, 25, 28, 30 Money market rates, 35 Federal Reserve Banks, 12 Mortgage yields, 55 Member banks, 5,6, 11, 18, 25 Prime rate, commercial banks, 34 U.S. reserve assets, 77 Time and savings deposits, maximum rates, 11 Residential mortgage loans, 37, 52, 53, 54 Yields, bond and stock, 36 Retail credit, 56 International capital transactions of the U.S., 78-92 Retail sales, 64 International institutions, 76, 77, 94, 96 Inventories, 70 Saving: Investment companies, issues and assets, 49 Flow of funds series, 72 Investments (See also specific types of investments): National income series, 71 Banks, by classes, 20, 24, 27, 28, 39 Savings and loan assns., 40, 45, 53 Commercial banks, 18 Savings deposits (See Time deposits) Federal Reserve Banks, 12, 15 Savings institutions, principal assets, 39, 40 Life insurance companies, 39 Securities (See also U.S. Govt, securities): Savings and loan assns., 40 Federally sponsored agencies, 40, 41 International transactions, 86, 87 Labor force, 66 New issues, 47, 48, 49 Loans (See also specific types of loans): Silver coin, 16 Banks, by classes, 20,24,26, 27, 39 Special Drawing Rights, 4, 12, 13, 19, 74, 77 Commercial banks, 18, 20, 24,26, 27,31, 33, 34 State and local govts.: Federal Reserve Banks, 4, 6, 9, 12, 13, 15 Deposits, 25, 29 Insurance companies, 39, 53 Holdings of U.S. Govt, securities, 44, 45 Insured or guaranteed by U.S., 52, 53, 54, 55 New security issues, 47, 48 Savings and loans assns., 40, 53 Ownership of securities of, 24, 28, 39 Yields and prices of securities, 36, 37 State member banks, 22, 32, 98 Manufacturers: Stock market credit, 38 Capacity utilization, 64 Stocks: Production index, 61, 64 New issues, 48, 49 Margin requirements, 10 Yields and prices, 36, 37 Member banks: Assets and liabilities, by classes, 20, 24 Tax receipts, Federal, 43 Borrowings at Reserve Banks, 6, 12 Time deposits, 11, 18, 19, 20, 25, 29 Deposits, by classes, 11 Treasury cash, Treasury currency, 4, 5, 16, 19 Number, by classes, 20, 98 Treasury deposits, 5, 12,42 Reserve position, basic, 8 Treasury operating balance, 42 Reserve requirements, 10 Reserves and related items, 4, 18 Unemployment, 66 Mining, production index, 61, 63 U.S. balance of payments, 74 Mobile home shipments, 65 U.S. Govt, balances: Money rates (See Interest rates) Commercial bank holdings, 25, 29 Money stock and related data, 17, 19 Consolidated condition statement, 19 Mortgages (See Real estate loans and Residential mortgage Member bank holdings, 18 loans) Treasury deposits at Reserve Banks, 5, 12, 42 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 19, 29, 39, 44, 45, 52, 98 Bank holdings, 19, 20, 24, 27, 39, 44, 45 Dealer transactions, positions, and financing, 46 National banks, 22, 32, 98 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 National income, 70, 71 Foreign and international holdings, 12, 83, 86, 90 National defense expenditures, 43, 70 International transactions, 83, 86 Nonmember banks, 22, 24, 25, 32, 98 New issues, gross proceeds, 48 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Open market transactions, 14 Ownership of, 44, 45 Yields and prices, 36, 37 United States notes, 16 Payrolls, manufacturing index, 64 Utilities, production index, 61, 63 Personal income, 71 Postal savings, 19, 25 Prices: Veterans Administration, 52, 53, 54, 55 Consumer and wholesale commodity, 64, 68 Security, 37 Weekly reporting banks, 26 Prime rate, commercial banks, 34 Production, 60-63, 64 Profits, corporate, 50, 51 Yields (See Interest rates) )xedni siht n i dettimo si” A“ xiferp eht hguohtla 99-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis