Federal Reserve Bulletin, 1972-07

Federal Reserve B u lle tin JULY 1972 * ♦ * * * * BOARD OF GOVERNORS ■ THE FEDERAL RESERVE SYSTEM ■ WASHINGTON, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 7 □ VOLUME 58 □ JULY 1972 605 Industrial Production in Mid-1972 615 Changes in Time and Savings Deposits at Commercial Banks, January-April 1972 626 Recent Regulatory Changes in Reserve Requirements and Check Collection 631 Bank Debits, Deposits, and Deposit Turnover— Revised Series 636 Statement to Congress 640 Record of Policy Actions of the Federal Open Market Committee 649 Law Department 679 Announcements 685 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 110 Board of Governors and Staff A 112 Open Market Committee and Staff; Federal Advisory Council A 113 Federal Reserve Banks and Branches A 114 Federal Reserve Board Publications A118 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE 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

Industrial Production in Mid - 1 9 7 2 THE CURRENT EXPANSION in industrial production has reflected 3 resurgence in consumer buying especially of durable goods, a further advance to new highs for residential construction activity, and expanded demands for capital equipment. In June 1972 industrial production was somewhat above the 1969 pre-recession peak. Its annual rate of growth since the recent low in August 1971 has been 5.6 per cent. Although capacity has continued to grow moderately, the rate of capacity utilization in manufacturing also has risen somewhat above its recent lows. Employment has grown steadily in 1972 but the total labor force also has risen. The unemployment rate, which had been virtually unchanged from January 1971 to May 1972 at 5.9 per cent, dropped to 5.5 per cent in June. Manufacturing employment, after hav­ ing shown little change in 1971, increased considerably in the first half of 1972. Average hours of work have also risen as the pace of economic activity quickened. With employment, hours of work, and wages expanding, disposable personal income has increased. Accompanying the rise in incomes, consumer takings have grown substantially. Output per manhour in industrial activity has increased this year, but with wages continuing to increase faster, unit labor costs have risen further. The wholesale price index, excluding farm products, declined somewhat during the 3 months of the price freeze; it then resumed its upward trend and in midyear was 4 per cent above a year earlier. After having leveled off during the August 15-November 15, 1971, wage and price freeze, retail prices of consumer commodities again trended upward. The consumer price index for commodities rose 2.4 per cent over the year ending in June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 FEDERAL RESERVE BULLETIN □ JULY 1972 . INDUSTRIAL PRODUCTION and some but some OTHER GROUPS MARKET GROUPS are at new highs have not yet recovered RATIO SCALE, 1967=100 RATIO SCALE, 1967=100 CONSUMER GOODS INTERMEDIATE PRODUCTS 120 DEFENSE EQUIPMENT 110 1969____________1970____________1971________1972 Seasonally adjusted. Latest data: June estimated. CONSUMER GOODS Production of consumer goods in June 1972, reflecting a steady growth in consumer staple products and a recent sharp accelera­ tion in demand for home goods associated with increased housing activity, was 8 per cent above the 1969 pre-recession peak. Gains in output were widespread in both 1971 and 1972. In the auto industry, however, output has changed little at rela­ tively high levels. Durable consumer goods. Sales of durable consumer goods have risen substantially since early in 1971. Expansion was especially brisk in the second quarter of 1972, after some hesitation in the first quarter as shown in Chart 2. Production of durable consumer goods also continued to advance, with an appreciable increase reported in the first half of 1971, and by June of 1972 it was 7 per cent above the pre-recession peak in 1969. The rate of expansion in such production during the past year and a half was slower than it might otherwise have been, owing in part to the inroads made in retail markets by imported goods— mainly autos, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN MID-1972 607 television sets, and radios. During 1972, imports of autos have tended to stabilize; but imports of television sets and radios have continued to grow. =100 130 120 110 100 90 Seasonally adjusted quarterly data (latest Q2 preliminary). Sales and stocks, based on physical quantity and constant-dollar data derived partly by Federal Reserve from Bureau of Economic Analysis and trade sources. Automobiles. Demand for domestic-type cars has increased appreciably this year; and by June 1972, sales had risen to a seasonally adjusted annual rate of 9.0 million units, 10 per cent above a year earlier. In 1971, after the lackluster performance that preceded the Phase I price freeze and the President’s request for removal of the 7 per cent excise tax on autos, sales rose sharply but then declined at the year’s end. So far in 1972, sales of imported cars have been maintained at about the same levels as prior to the introduction of the President’s new economic policies in August 1971. Changes in exchange rates since August 15 of last year have made prices of domestic compact cars competitive with those of imported models and have been reflected in a decline in the import share of the auto market. In contrast to sales, domestic auto output has generally averaged about 8.5 million units at an annual rate since the beginning of 1971. With output at a relatively steady rate and sales fluctuating, dealer inventories of new domestic autos have shown considerable variation. Stocks rose sharply in the first 9 months of 1971 with dealers accumulating a 59 selling days’ supply, only to decline with the surge in consumer demand during the price freeze. While inventories have increased slightly in 1972, sales have continued high, and the supply in terms of the number of selling days had declined to 55 by the end of June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN □ JULY 1972 SALES and OUTPUT of domestic autos at high levels; STOCKS below earlier peak 1967=100 RATIO SCALE MILLIONS OF UNITS 140 ^ 10.5 1.0 .8 .6 Seasonally adjusted. Domestic sales and import sales are at annual rates. Output and stocks are indexes. Quarterly averages except for stocks (end of quarter). Latest data, Q2. Home goods. Output of appliances, radios, television sets, carpets, and furniture, after a broad decline from early 1969 until late 1970, has increased substantially since the end of 1970 and in June was at a new high. Sales of these goods began to rise in the fourth quarter of 1971. They accelerated sharply during the first quarter of 1972 to a level that was maintained in the second quarter. Retail and factory stocks declined in late 1971, then rose 7 per cent from December to June 1972, reflecting increases in imports as well as in domestic production. Production of household appliances increased sharply after the first quarter of 1971 and has risen to record levels so far in 1972. With retail sales strong and a high rate of private residential construction— a major market for these goods— factory stocks de­ clined at the end of 1971. However, in early 1972 stocks began to rise as output increased. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN MID-1972 609 Domestic production of television sets and radios has been on a downward trend since 1965-66 and in mid-1972 was about 15 per cent below that advanced level. This trend reflects the fact that imported name-brand sets have increased their share of the retail markets and that American name brands have been produced out­ side the United States. Nondurable consumer goods. Over-all production of nondura­ ble consumer goods generally has shown little change from its long-term growth rate during periods of economic recession and recovery. Over the past year output of such goods has increased 4 per cent. Among the nondurable items, output of nonfood staples— automobile gasoline, detergents, drugs, paper supplies, and resi­ dential electricity— has shown more growth than food, tobacco, and the cyclically sensitive clothing group. Output of clothing, which had risen in 1971, leveled off in the first half of 1972 but was still below the level reached in 1969. The value of retail sales of apparel changed little in the second half of 1971 and then rose sharply in 1972 in contrast to output as prices of clothing continued to rise steadily. BUSINESS EQUIPMENT The current recovery in output of business equipment, at an annual rate of 7 per cent since last December, follows the sharpest curtailment in such output since the 1957-58 recession. From 1966 to 1969, prior to the decline, appropriations for new capital goods and production of business equipment rose sharply and industrial BUSINESS EQUIPMENT fluctuates more than total industrial production RATIO SCALE, 1967=100 110 100 90 Seasonally adjusted. Latest data: June estimated. capacity expanded at an unusually high rate. Because such equip­ ment is used largely to produce other goods, this rate of capacity expansion proved to be unsustainable during the period of decline in over-all industrial production from September 1969 to November 1970 (Chart 4). Output of business equipment reached a peak in the fall of 1969, declined, and then changed little from November 1970 to the end of 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 FEDERAL RESERVE BULLETIN □ JULY 1972 New orders and appropriations for CAPITAL GOODS undergo strong recovery RATIO SCALE, BILLIONS OF DOLLARS 9 Seasonally adjusted. New orders: Bureau of Census; latest data, May preliminary. Appro­ priations: National Industrial Conference Board; latest data, Q1 1972 preliminary. Both new orders to capital goods industries and manufacturers’ new capital appropriations peaked in 1969 and then declined sharply (Chart 5). Recovery in new orders began well before recovery in new appropriations for capital goods, which started in the third quarter of 1971. However, recovery in both new orders and appropriations began before the current marked upturn in business equipment production in January 1972. Output in June was still 11 per cent below the 1969 peak level, but the widespread nature of the advances in new orders and appropriations this year suggests that the 1972 upturn in output of business equipment is likely to persist in the remainder of 1972. Output of manufacturing equipment declined much more sharply during the downturn than total production of manufactured goods, as shown in Chart 6. The decline in production of manufacturing equipment was also proportionally greater than the drop in produc­ tion of total business equipment. A considerable part of the sharp drop in output of manufacturing equipment reflected the excess capacity that had developed in manufacturing during the late I960’s. Although there continues to be substantial apparent excess capacity, some of it may be technically or economically obsolete and in need of replacement; and in some industries capacity is being pressed even though it appears excessive over all. The Conference Board’s Capital Appropriations Survey for manufacturing for the first quarter of 1972 suggests that the strength in new appropriations and new orders stems largely from a wide­ spread expectation of improved sales in 1972. Other reasons that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN MID-1972 611 survey respondents ranked high in importance as motivations to invest were the need to reduce costs by improving technology and the need to protect market shares. The investment tax credit and liberalized depreciation guidelines were also mentioned as reasons for undertaking new investment, but comparatively few respondents listed these as the primary motivation for increasing investment. Recovery in MANUFACTURING EQUIPMENT lags that in total manufacturing 100 110 100 90 80 1968 1969 1970 1971 1972 Seasonally adjusted. Latest data: June estimated. In the transit equipment sector, output of trucks and buses rose sharply in 1971 and by the end of that year was at the pre-recession level. Heavy demands for trucks of all types have continued and production rose to a new high in the first half of 1972. General expectations of rising levels of economic activity appear to be the main reason for the surge in truck production, although removal of the 10 per cent excise tax and the investment credit undoubtedly contributed to the spurt in truck sales. In contrast, railroad equipment production has shown little change this year and in mid-1972 was below its 1969 peak in spite of the investment tax credit and liberalized depreciation guidelines, factors which in the past have proved to be effective stimuli to railroad investment. Low levels of railroad investment apparently reflect the financial difficulties that a large segment of this industry has experienced in recent years. Output of commercial aircraft has leveled since mid-1971 fol­ lowing an extraordinarily large cutback— almost 50 per cent— be­ tween mid-1969 and mid-1971. The air transport industry continues to be plagued by financial problems and has generated only limited increases in the demand for new planes. By mid-1972 output in the commercial equipment group was only about 3 per cent below the 1969 peak, following a relatively Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 FEDERAL RESERVE BULLETIN □ JULY 1972 mild decline in the 1969-71 period. Within this group, service industry equipment showed strong growth in 1971 and 1972, but in June 1972 output of office and computing machines and telephone equipment remained well below their 1970 peaks. On the other hand, growth in the production of power equipment showed little decline during the recent recession, reflecting the steady growth in demand for electric power. In June 1972 production of building and mining equipment, while up from the 1971 low, was still about one-tenth below the 1969 peak. Record levels of new private housing starts and rising con­ struction contracts for commerical and industrial buildings this spring suggest that output of construction machinery is likely to expand. Lack of growth in the mining industry and a long-term decline in oil and gas well drilling suggest that demands for mining machinery may continue to be sluggish. With rising farm income, output of farm equipment has increased strongly from its 1971 low and in June was about at its pre-recession level. DEFENSE AND Production of defense and space equipment changed little in the SPACE EQUIPMENT first half of 1972 but in June was at a level 30 per cent below the peak rate of 1968. The lower level reflects mainly the winding down of U.S. participation in the Vietnam war, but it also reflects the decline in the intensity of the U.S. activity in space exploration. The current level of defense equipment output is about 15 per cent above its level immediately prior to the Vietnam build-up. INTERMEDIATE Intermediate products are those produced in the industrial produc­ PRODUCTS tion sector for use mainly outside that area— construction products, feeds, fertilizers, and so forth. Whereas output of these products is not significantly affected by cyclical changes, their rates of growth do tend to flatten out during periods of general economic downturns. With the earlier recovery in construction and the rise in the over-all economy continuing, output of both construction products and general business supplies has advanced. MATERIALS Production of materials, however, fluctuates very sharply in periods FOR PROCESSING of change, even more than output of products, as shown in Chart 7, mainly because of changes in business inventories. In each of the four postwar periods of recession preceding the 1969 downturn, materials production was cut sharply and inventories were liqui­ dated. In contrast, output of materials in the recent recession was reduced only slightly and inventories of these materials held by manufacturing industries continued to increase during 1971 and 1972 as expectations of a continued rise in prices persisted. In fact, wholesale prices of industrial materials advanced strongly in this period, leveled off during the interval of the price freeze, and then rose further during the first half of 1972 (Chart 7). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INDUSTRIAL PRODUCTION IN MID-1972 613 Materials OUTPUT rises faster than PRODUCTS and while NET IMPORTS reach new peaks 1967=100 ANNOAL RATES OF CHANGE, BILLIONS OF 1963 DOLLARS PRICES continue to rise and SUPPLIES build up further / v /-*\ / V vva v u t i 1968 1970 ’72 Seasonally adjusted. Price index, Federal Reserve grouping of BLS data. Net imports com­ piled by Federal Reserve from Dept, of Commerce data. Estimates for duties and freight on imports by Federal Reserve. Supplies are net imports plus projection of 1963 output-inventory relationships based on industrial production indexes for materials and final products. Latest data: imports and supplies, May estimated; all others. June estimated. Since last November output of industrial materials has risen at an annual rate of 15 per cent, much faster than the rise in output of durable consumer goods and business equipment. The current level of output of materials relative to products may not be sus­ tainable, unless there is a further marked increase in demand for and output of final products. The most volatile component of the materials group is iron and steel. Output of steel in 1971 followed the usual “roller-coaster” pattern that has prevailed before and after wage contract negotia­ tions— rising 18 per cent from November 1970 to May 1971 and then dropping 40 per cent by August. As steel-consuming industries worked off the excessive inventories accumulated in anticipation of a strike, and as final demands for finished metal goods remained relatively moderate, steel production, after a sharp recovery in September, changed little during the remaining months of 1971. In early 1972 both demand for and output of durable consumer goods and business equipment rose. Steel production increased about a tenth between January and May and then leveled out in June; nevertheless, output in June was still a tenth below the 1969 peak. This relatively low rate of steel output reflects the low current levels of output of business and defense equipment and also the large volume of imports of steel mill products. Foreign producers have set voluntary quotas on exports of steel to the United States for 1972 and imports thus may be at a somewhat lower level than in 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 FEDERAL RESERVE BULLETIN □ JULY 1972 Output of nonferrous metals and products in 1970 and 1971 had been down 7 per cent from the record level of 1969, but by mid-1972 production had recovered to about the rates prevailing in 1969. As in the steel industry, the upswing in output began in December 1971, following distortions in demands, production, and inventories because of strikes and the anticipation of strikes in the copper and aluminum industries. With the sharp decline in business equipment in 1969-70, 15 per cent, output of materials and parts used in producing capital goods was curtailed 20 per cent. It remained at this reduced level for a year before turning up in 1972 as production of business equipment rose. In June, however, it was still 10 per cent below the 1969 peak. Among nondurable materials, output of the major group— tex­ tiles, paper, and chemicals— declined moderately from the third quarter of 1969 to the end of 1970. Unlike developments in the other materials, demand for and production of textiles, paper, and chemicals turned up in early 1971 and rose at an annual rate of 10 per cent through mid-1972. At that time it was 7 per cent above the old peak in 1969. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits at Commercial Banks January—April 1972 Interest rates offered on negotiable certificates Reflecting among other things a decline in the of deposit in denominations of $100,000 or proportion of savings to disposable personal more, along with other open market interest income and the reduced promotion of con­ rates, moved higher at many large commercial sumer-type time deposits at some banks, inflows banks in the 3 months ending April 30, 1972. into total time and savings deposits at commer­ For small-denomination (consumer) CD’s and cial banks slowed in the 3 months ending April open account time deposits, rate changes were 30. Nevertheless, growth in passbook savings relatively minor; as of April 30, most commer­ was greater than in any survey since the record cial banks were paying depositors the maximum growth between January and April 1971. With rates permitted by supervisory authorities, as offering rates above the yield on Treasury bills they had been 3 months earlier. On the other and future interest rate movements uncertain, hand, some of the largest banks holding an many persons and nonprofit organizations pre­ appreciable proportion of all passbook savings ferred to place their funds in these highly liquid lowered the rate paid on these deposits from deposits. 4V2 to 4 per cent during the quarter. Net inflows into small CD’s and open ac­ The advance in offering rates on large nego­ count time deposits, while substantial by his­ tiable CD’s, which are competitive with other torical standards, were below those of the pre­ liquid market instruments, was about in line ceding quarter. Because of the sizable expansion with the net advance in short-term yields gener­ in consumer-type deposits, banks were less in­ ally in the period covered by this survey.1 After terested in attracting a large volume of time declining sharply since last summer, short-term deposits in denominations of $100,000 and over market rates reversed direction in the Jan- than they had been during much of 1971. Hold­ uary-April quarter and ended the quarter at a ings of these deposits showed only a nominal somewhat higher level than at the beginning; increase in the January-April period, while the for example, the market yield on 3-month Trea­ amount of large nonnegotiable CD’s and open sury bills increased by an average of about 32 account deposits declined. basis points. The prime loan rate also was raised by V2 to % of a percentage point. The reductions NET CHANGES IN DEPOSITS in passbook rates, on the other hand, had been placed in effect early in the quarter in response Total time and savings deposits held by indi­ to the previous decline in market rates and sharp viduals, partnerships, and corporations (IPC) at step-up in deposit inflows. insured commercial banks rose to $249.1 billion on April 30, 1972— $6.8 billion, or 2.8 per Note.—Caroline H. Cagle of the Board’s Division cent, greater than 3 months earlier (Table 1). of Research and Statistics prepared this article. This was about $700 million less than the in­ 1 Previous surveys of time and savings deposits at crease in the preceding quarter. all member banks were conducted by the Board of Governors in late 1965, in early 1966, and quarterly Depositors added $3.8 billion to their hold­ beginning in 1967. Beginning in 1968 the surveys were ings of regular passbook savings in the most expanded to provide figures for all insured commercial recent quarter— $420 million more than in the banks and were conducted jointly by the Board of Governors and the Federal Deposit Insurance Corpora­ preceding 3 months. Ability to withdraw on tion. The results of earlier surveys have appeared in demand, an interest rate of 4Vi or 4 per cent Bulletins for 1966-71, the most recent being April at nearly all banks, and interest computed from 1972, pp. 363-74. Appendix tables for this article appear on pp. 621-25. day of deposit to day of withdrawal at some 615 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 FEDERAL RESERVE BULLETIN □ JULY 1972 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, JULY 1971—APRIL 1972 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits Type of deposit 1971 1972 1971 1972 (quarterly rate) July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31,1971- Jan. 31- Jan.31,1972 Apr. 30, 1972 Total time and savings deposits.......... 13,438 13,452 13,440 13,461 229,062 234,786 242,296 249,100 2.9 2.8 12,958 12,993 13,030 13,045 105,940 107,514 110,931 114,768 2.4 3.5 Time deposits in denominations of less than $100,000—Total....... 13,128 13,248 13,175 13,219 83,427 84,990 89,124 91,198 3.4 2.3 Accounts with original maturity of— Less than 1 year....................... 12,242 12,332 12,318 12,333 43,646 43,909 45,300 45,365 1.9 .1 1 up to 2 years......................... 12,224 12,455 12,382 12,367 18,976 19,058 19,725 20,514 2.0 4.0 2 years or more....................... 10,521 10,653 10,789 10,720 20,804 22,024 24,099 25,319 7.7 5.1 All maturities: Open accounts— Passbook or statement form1 3,233 3,297 3,440 3,544 (22,068) (23,307) (24,865) (27,206) (6.2) (9.4) Time deposits in denominations of $100,000 or more—Total........ 5,816 5,894 6,004 5,952 33,490 36,009 36,792 37,021 4.9 .6 Negotiable CD’s.......................... 3,067 2,972 3,224 3,076 23,525 25,435 25,591 25,959 4.4 1.4 Nonnegotiable CD’s and open account................................. 3,388 3,492 3,359 3,513 9,965 10,574 11,201 11,063 6.0 -1.2 Christmas savings and other special funds........................................ 8,324 8,048 8,151 8,424 6,205 6,272 5,450 6,113 -6.0 12.2 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. The figures shown on this line are included above in banks by the same sample of these banks reporting in earlier surveys. the appropriate maturity category. 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 July 31, 1971, and Jan. 31 and Apr. 30, 1972, the amounts may not add to totals because of rounding. banks combined to make this form of deposit slower growth rate may reflect in part a lagged particularly attractive. response to rate reductions by a number of large Most small depositors who were willing to banks in the preceding quarter, reduced promo­ place their funds in something less liquid than tional effort by banks, and discontinuance of the regular savings generally preferred instruments issuance of the higher-yielding time deposit carrying the highest bank rate available. Expan­ instruments by some banks. sion was most rapid in small-denomination de­ Bank holdings of time deposits in denomi­ posits with maturities of 2 years or more on nations of $100,000 or more increased by only which a majority of the banks were offering the $230 million, or about 0.5 per cent, in the ceiling rate of 53A per cent. Growth in these January-April period. All of the increase was deposits amounted to $1.2 billion, or 5 per cent, in negotiable CD’s, which rose by $360 million; in the 3 months ending April 30. This growth nonnegotiable CD’s and open account deposits compares with increases of 4 per cent for similar declined by $130 million. deposits with maturities of 1 up to 2 years, on Time deposits held in a variety of special fund which the ceiling rate was 5V2 per cent, and accounts increased by $660 million in the latest per cent for maturities of less than 1 year, survey period, reflecting mainly a seasonal 0.1 where the maximum rate was 5 per cent. The movement. Christmas club accounts, which are total expansion of $2.1 billion in all maturities an important part of this total, are built up over of small-denomination time deposits— other the year to a peak in the autumn and are paid than savings— between January and April was out in November. The increase of 12 per cent only about half as much as the growth in the in special funds from January through April preceding quarter, when market yields on com­ compares with a 9 per cent growth in the com­ peting instruments were declining rapidly. This parable period of last year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 617 RATE CHANGES AND RATE STRUCTURE a result of these rate reductions, the proportion of all banks paying the ceiling rate slipped On small-denomination time deposits, other slightly below three-fourths on April 30, and than savings, about nine-tenths of the issuing only about three-fifths of all regular savings banks— holding a comparable proportion of deposits was held in banks paying the highest such deposits— were paying depositors the ceil­ permissible rate. Three months earlier nearly ing rates on April 30 (Table 2). These propor­ four-fifths of such savings deposits had been in tions were a little higher than they had been 3 banks paying the maximum rate. Banks that months earlier. lowered their rate in the most recent quarter In the most recent quarter a larger proportion experienced only a small growth in savings of large banks— total deposits of $100 million and over— than small banks raised rates on deposits whereas banks that offered the 4Vi per cent ceiling rate accounted for most of the consumer-type time deposits; for example, increase. about 13 per cent of all large banks raised their Negotiable CD’s in denominations of $100,offering rates on small-denomination time de­ 000 and over are issued mainly to corporations posits with maturities of 2 years and over com­ and are offered in volume principally by large pared with only 5 per cent of the small banks banks. Between January and April nearly half (Appendix Table 7). Most of the rate increases of these banks raised their most common rate were to the ceiling level. Many of the large on these deposits. As of the end of April the banks that raised their rates in the January-April average rate paid by large banks was 4.64 per period had lowered them in the preceding cent— up 40 basis points from 3 months earlier. quarter. In line with major movements in market More than two-fifths of all nonnegotiable interest rates, fairly prompt adjustments of of­ CD’s and open account deposits in denomi­ fering rates on consumer deposits have become nations of $100,000 or more is held by con­ common among large banks in the past year. sumers. As with negotiable CD’s, large banks By contrast, small banks generally change issue most of these deposits. Nearly two-fifths their offering rates on consumer-type time de­ of the issuing banks with total deposits of $100 posits less frequently than large banks, and for million or more increased their most common some time a higher proportion of small than of rate on these deposits in the 3 months ending large banks have been paying depositors the April 30. The average rate at big banks was ceiling rates. On April 30, 93 per cent of all 4.88 per cent on April 30, or 41 basis points banks with total deposits of less than $100 more than on January 31. million had an offering rate of 5 3A per cent on In the most recent quarter some banks raised small-denomination time deposits with maturi­ their offering rates to unusually high levels on ties of 2 years and over compared with 80 per large-denomination time deposits. About 3 per cent of the larger banks. To compete effectively cent of the issuing banks reported a rate between for these deposits, most small banks have maintained their rates on the various maturities 8 and 8V2 per cent on April 30; these were mainly small institutions with total deposits of of small-denomination time deposits at the ceil­ less than $100 million. Three months earlier, ing level in the past year. no bank had reported a rate that high. Ceiling Changes in interest rates on passbook sav­ rates on deposits of this type with maturities ings, which apply immediately to all deposits of less than 90 days were suspended by outstanding, are often announced some weeks supervisory authorities beginning June 24, in advance of the effective date. In January of 1970. this year a number of large banks announced their intention of lowering their rate on regular savings deposits from Wi to 4 per cent; for some AVERAGE INTEREST RATES banks the effective date was February 1 and for others it was March 1. Many of these banks The weighted average interest rate paid on all were located on the west coast, and they held forms of time and savings deposits, IPC, at a considerable volume of savings deposits. As insured commercial banks on April 30, 1972, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 FEDERAL RESERVE BULLETIN c JULY 1972 TABLE 2 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JANUARY 31 AND APRIL 30, 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 Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. 30 31 30 31 30 31 30 31 30 31 30 31 Amount of deposits (in millions of dollars). Number of banks, or percentage distribution or percentage distribution Savings deposits: Issuing banks........................................ 13,045 13,030 12,400 12,408 645 622114,768 110,931 43,798 42,656 70,969 68,275 Percentage distribution by most com­ mon rate paid on new deposits: Total.................................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3.50 or less........................................ 6.4 6.5 6.6 6.8 2.5 1.9 2.3 2.2 3.6 3.7 1.4 1.2 3.51-4.00........................................... 18.9 18.4 18.5 18.3 26.5 19.8 34.6 19.1 14.7 13.9 46.9 22.3 4.01-4.50............................................ 74.7 75.1 74.9 74.9 71.0 78.3 63.1 78.7 81.7 82.4 51.7 76.5 Time deposits in denominations of less than $100,000: Maturities less than 1 year: 12,333 12,318 11,691 11,698 642 620 45,363 45,299 21,387 21,506 23,976 23,793 Percentage distribution by most common rate paid on new de­ posits : Total.............................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less..................................... 4.5 5.5 3.8 4.8 17.0 19.0 9.1 11.5 2.1 1.9 15.5 20.1 4.51 5.00........................................ 95.5 94.5 96.2 95.2 83.0 81.0 90.9 88.5 97.9 98.1 84.5 79.9 Maturities of 1 up to 2 years: 12,367 12,382 11,747 11,782 620 600 20,468 19,690 15,193 14,620 5,275 5,069 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 4.50 or less..................................... 1.0 1.4 .8 1.2 2.7 7.8 .5 1.7 .1 1.2 1.7 3.1 4.51-5.00........................................ 9.7 10.2 9.2 9.7 19.2 20.0 11.2 12.4 9.1 9.5 17.3 20.9 5.01-5.25........................................ 1.2 .8 .9 .6 7.1 3.5 2.4 1.1 1.2 .9 5.8 1.6 5.26-5.50........................................ 88.1 87.6 89.1 88.5 71.0 68.7 85.9 84.8 89.6 88.4 75.2 74.4 Maturities of 2 years and over: 10,720 10,789 10,131 10,215 589 574 24,632 23,564 13,801 13,035 10,831 10,528 Percentage distribution by most common rate paid on new de­ posits : Total.............................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less..................................... .5 1.3 .4 1.1 2.0 5.4 .9 .8 .1 .4 2.0 1.3 4.51-5.00........................................ 3.2 4.5 2.9 4.0 9.0 13.3 3.0 6.8 1.3 2.1 5.2 12.5 5.01-5.25........................................ .5 .3 .4 .2 1.9 2.4 .9 1.4 .4 .1 1.5 3.1 5.26-5.50........................................ 3.7 3.8 3.5 3.7 7.0 4.5 4.1 2.3 2.3 2.2 6.4 2.3 5.51-5.75........................................ 92.1 90.1 92.8 91.0 80.1 74.4 91.1 88.7 95.9 95.2 84.9 80.8 Negotiable CD’s in denominations of $100,000 or more: Issuing banks..................................... 3,076 3,224 2,655 2,827 421 397 25,944 25,586 2,807 2,792 23,136 22,793 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 4.50 or less..................................... 16.8 15.0 11.9 9.8 47.0 51.4 59.8 66.2 12.8 15.5 65.5 72.4 4.51-5.00........................................ 24.5 27.7 23.1 27.4 33.3 30.5 16.2 20.8 24.2 26.6 15.2 20.1 5.01-5.50........................................ 21.4 19.4 22.9 20.8 11.9 10.1 15.3 7.1 20.1 19.6 14.7 5.6 5.51-6.00........................................ 23.0 23.2 25.8 25.4 5.7 7.0 7.2 4.0 33.4 23.8 4.1 1.6 6.01-6.50........................................ 5.3 6.4 6.1 7.4 .2 .5 .4 4.6 3.8 6.51-7.00........................................ 5.2 5.3 5.9 5.9 .7 .3 .6 1.2 2.2 8.9 .4 .2 7.01-7.50........................................ .9 2.9 1.0 3.2 .5 .7 .1 .3 .3 1.8 O) .1 7.51 and over................................. 2.9 .1 3.3 .1 .7 .3 0) 2.4 0) .1 1 Less than 0.05 per cent. For Note, see p. 620. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 619 was 4.73 per cent—up 3 basis points from 30 and on other large-denomination time de­ January 31 (Table 3). The effects of rate ad­ posits, 4.99 per cent. These rates represented vances on large-denomination and consumer- increases of 36 and 29 basis points, respec­ type time deposits were offset in large part by tively, in the 3 months ending April 30. the drop in the average rate paid on savings Average rates were close to ceiling levels on deposits. small-denomination time deposits (other than On negotiable CD’s in denominations of savings): 4.94 per cent for maturities of less $100,000 or more the average rate at all insured than 1 year—up 4 basis points from January commercial banks was 4.73 per cent on April 31; 5.43 per cent for maturities of 1 up to 2 TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OFTIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON APRIL 30, 1972 Per cent per annum Time deposits in denominations of— Less than $100,000 $100,000 or more All Savings 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................................ 4.73 4.72 4.30 5.26 4.94 5.43 5.69 4.73 4.99 Less than 10................................. 5.04 5.03 4.30 5.39 4.99 5.47 5.73 5.73 5.71 10-50............................................. 4.92 4.89 4.40 5.33 4.99 5.45 5.74 5.53 5.44 50-100........................................... 4.81 4.76 4.37 5.26 4.95 5.42 5.71 5.34 5.25 100-500......................................... 4.69 4.67 4.33 5.19 4.93 5.37 5.66 4.79 4.87 500 and over................................ 4.57 4.53 4.21 5.15 4.88 5.38 5.64 4.61 4.89 Banks in— Selected large SMSA’s1: All size groups............................ 4.63 4.60 4.28 5.18 4.90 5.39 5.66 4.65 4.91 Less than 10............................ 4.87 4.83 4.38 5.36 4.99 5.46 5.72 6.10 5.35 10-50......................................... 4.81 4.76 4.41 5.30 4.98 5.43 5.71 5.50 5.48 50-100....................................... 4.73 4.69 4.40 5.20 4.93 5.34 5.69 5.20 5.18 100-500..................................... 4.66 4.65 4.34 5.18 4.92 5.37 5.66 4.72 4.77 500 and over............................ 4.57 4.53 4.22 5.15 4.88 5.38 5.63 4.60 4.88 All other SMSA’s: All size groups............................ 4.76 4.73 4.28 5.26 4.95 5.42 5.71 5.02 5.22 Less than 10............................ 4.89 4.86 4.21 5.36 4.93 5.45 5.74 5.27 5.89 10-50......................................... 4.90 4.86 4.39 5.34 4.99 5.44 5.73 5.49 5.91 50-100....................................... 4.84 4.80 4.34 5.30 4.97 5.49 5.74 5.02 5.28 100-500..................................... 4.74 4.70 4.32 5.19 4.94 5.37 5.65 4.99 5.05 500 and over............................ 4.53 4.48 4.02 5.18 4.93 5.37 5.74 4.82 5.11 Banks outside SMSA’s: All size groups................................ 4.98 4.96 4.37 5.34 4.99 5.46 5.73 5.56 5.26 Less than 10................................ 5.09 5.08 4.30 5.39 5.00 5.47 5.73 5.86 5.72 10-50............................................. 4.98 4.96 4.40 5.33 5.00 5.45 5.75 5.57 5.28 50-100........................................... 4.88 4.81 4.33 5.30 4.97 5.44 5.71 5.59 5.50 100-500......................................... 4.72 4.70 4.34 5.25 4.95 5.41 5.70 4.67 5.00 500 and over................................ - 5.03 4.90 4.50 5.29 5.00 5.50 5.75 6.75 4.82 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-T roy 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 Bernadino-Riverside Ft. Worth Nashville-Davidson Jackson, Miss. Newark Indianapolis Birmingham Youngstown-Warren 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

620 FEDERAL RESERVE BULLETIN c JULY 1972 years—up 4 basis points; and 5.69 per cent for Offering rates also varied with the location maturities of 2 years and over—up 3 basis of the bank. The lowest rates were at banks in points. Because of the decline in rates paid at selected large Standard Metropolitan Statistical some of the largest banks in the most recent Areas (SMSA’s), where the average for all quarter, the average rate on regular savings forms of time and savings deposits was 4.63 deposits declined by 8 basis points—to 4.30 per per cent on April 30; the highest rates were in cent. banks in rural areas (outside SMSA’s), where As in the previous survey, the average rate the average was 4.98 per cent. This contrasts paid on all forms of time deposits varied in­ with the latter part of 1970 and some earlier versely with the size of bank. The smallest periods when the average rate paid by banks banks—total deposits of less than $10 mil­ in large SMSA’s had been above that offered lion—had a rate of 5.04 per cent on April 30, by banks in rural areas. These differences re­ or nearly l/i of 1 per cent higher than the rate flect, among other things, the tendency for big for the largest banks—total deposits of $500 city banks to change their offering rates on million and over. In all major categories of various forms of time and savings deposits more deposits the smallest banks were paying a frequently than small banks, particularly the somewhat higher rate than the largest banks on rates on large negotiable CD’s, which are issued April 30. mainly by banks in big cities. □ NOTE TO TABLE 2: Note.—The most common interest rate for each instrument refers While rate ranges of lA or Vi 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 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 30-day 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 column. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 621 APPENDIX TABLE 1-SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on April 30, 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................................................................................. 13,045 835 2,469 9,741 114,768 2,574 39,734 72,460 Size of bank (total deposits in millions of dollars): 6,418 599 1,454 4,365 6,071 367 1,248 4,456 10-50............................................................................... 5,275 186 756 4,333 25,825 590 3,444 21,791 50-100............................................................................. 707 34 88 585 11,903 624 1,730 9,549 100-500........................................................................... 490 11 108 371 22,701 304 6,975 15,422 155 5 63 87 48,268 689 26,338 21,242 Federal Reserve district: Boston............................................................................. 337 2 66 269 4,972 (2) 1,357 3,598 New York...................................................................... 450 6 62 382 18,792 384 4,128 14,280 Philadelphia................................................................... 440 43 157 240 7,477 626 3,532 3 319 Cleveland........................................................................ 761 73 144 544 10,660 450 5,234 4,977 736 8 84 644 7,939 14 2,294 5,632 1,655 77 349 1,229 8,317 217 1,771 6,328 2,573 266 484 1,823 20,706 461 4,935 15,309 St. Louis......................................................................... 1,341 69 285 987 3,955 122 743 3,090 Minneapolis................................................................... 1,365 194 548 623 2,785 213 579 1,993 Kansas City................................................................... 1,773 93 187 1,493 4,406 54 117 4,235 Dallas.............................................................................. 1,229 4 53 1,172 3,853 15 59 3,779 San Francisco............................................................... 385 50 335 20,905 14,986 5,920 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 April 30, 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 12,333 550 58 11,725 45,363 4,148 789 40,426 Size of bank (total deposits in millions of dollars): Less than 10.................................................................. 6,008 165 5,843 3,879 32 3,846 10-50............................................................................... 4,978 226 24 4,728 12,688 161 19 12,508 50-100............................................................................. 705 50 12 643 4,820 249 52 4,520 100-500........................................................................... 487 72 20 395 8,638 781 461 7,397 155 37 2 116 15,337 2,925 (2) 12,155 Federal Reserve district: Boston............................................................................. 327 18 6 303 1,393 55 8 1,330 New York...................................................................... 446 93 8 345 4,221 661 362 3,198 Philadelphia................................................................... 324 37 1 286 2,259 187 (2) 2,072 Cleveland........................................................................ 696 31 1 664 3,147 192 (2) 2,954 Richmond...................................................................... 626 66 2 558 2,843 376 (2) 2,415 Atlanta............................................................................ 1,623 140 14 1,469 4,525 192 164 4,169 Chicago........................................................................... 2,347 36 11 2,300 10,768 713 32 10,023 St. Louis......................................................................... 1,266 54 1,212 2,600 315 2,285 Minneapolis................................................................... 1,195 1,195 2,451 2,451 Kansas City................................................................... 1,833 22 3 1,808 2,601 128 43 2,429 Dallas.............................................................................. 1,288 36 5 1,247 2,587 108 45 2,435 San Francisco............................................................... 362 17 7 338 5,969 1,221 82 4,665 For notes to Appendix Tables 1-6, see p. 620. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 FEDERAL RESERVE BULLETIN □ JULY 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 April 30, 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.............................................................................. 12,367 117 1,197 153 10,900 20,468 113 2,300 481 17,575 Size oi bank (total deposits in millions of dollars): Less than 10.................................................................... 6,180 32 471 35 5,642 5,529 1 357 44 5,128 10-50................................................................................. 4,883 54 505 56 4,268 7,971 16 783 84 7,088 50-100.............................................................................. 684 13 102 18 551 1,693 5 247 50 1,392 100-500............................................................................ 473 6 88 32 347 2,414 7 500 110 1,797 500 and over.................................................................... 147 12 31 12 92 2,861 84 413 194 2,171 Federal Reserve district: Boston.............................................................................. 211 5 23 9 174 136 1 16 4 115 New York........................................................................ 388 16 91 14 267 678 14 232 30 402 Philadelphia.................................................................... 362 3 82 277 1,249 16 280 953 702 4 171 7 520 1,302 3 300 36 962 Richmond........................................................................ 652 11 65 5 571 806 48 111 52 595 Atlanta.............................................................................. 1,465 48 201 11 1,205 1,839 13 276 27 1,523 Chicago............................................................................ 2,427 123 51 2,253 4,547 264 69 4,214 St. Louis.......................................................................... 1,396 1 166 1,229 2,856 (2) 508 2,348 Minneapolis.................................................................... 1,318 57 1 1,260 1,857 75 (2) 1,772 Kansas City..................................................................... 1,858 26 42 31 1,759 2,083 O) 91 84 1,908 Dallas............................................................................... 1,231 140 11 1,080 1,518 108 30 1 380 San Francisco.................................................................. 357 3 36 13 305 1,597 17 38 139 l|404 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 April 30, 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.......................................... 10,720 53 348 55 391 9,873 24,632 222 736 221 1,021 22,432 Size of bank (total deposits in millions of dollars): Less than 10................................ 5,053 21 94 25 139 4,774 3,148 4 8 37 51 3,048 10-50............................................. 4,443 14 166 14 175 4,074 7,984 4 97 9 122 7,752 50-100.......................................... 634 6 34 5 36 553 2,670 3 72 9 152 2,434 100-500........................................ 446 3 35 10 27 371 3,812 32 165 159 176 3,280 500 and over................................ 144 9 19 1 14 101 7,019 179 395 (2) 520 5,918 Federal Reserve district: Boston.......................................... 187 2 22 5 2 156 296 (2) 26 O) (2) 267 New York.................................... 371 6 29 6 25 305 1,607 6 217 138 31 1,214 Philadelphia................................ 269 2 7 5 255 1,685 (2) 22 77 1,519 Cleveland..................................... 605 2 19 2 61 521 1,949 (2) 39 (2) 207 1,682 Richmond.................................... 614 27 14 2 30 541 1,763 15 34 (2) 128 1,585 Atlanta......................................... 1,333 10 95 6 80 1,142 2,274 4 43 14 77 2,136 Chicago........................................ 2,230 22 24 59 2,125 5,462 149 37 82 5,195 St. Louis...................................... 1,063 7 25 1,031 1,761 19 56 1,686 Minneapolis................................ 1,109 5 1,104 1,824 3 1,821 Kansas City................................ 1,580 18 2 53 1,507 1,473 22 (2) 89 1,359 Dallas.......................................... 1,006 87 5 38 876 1,258 107 10 103 1,038 San Francisco.............................. 353 4 23 3 13 310 3,278 121 56 4 168 2,929 For notes to Appendix Tables 1-6, see p. 620. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN TIME AND SAVINGS DEPOSITS 623 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 April 30, 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.................................. 3,076 162 354 754 658 708 163 159 11825,944 720u,m 4,1933,9781,876 129 145 102 Size of bank (total deposits in millions of dollars): Less than 10......................... 701 61 6 122 149 146 59 112 46 205 21 i 46 34 53 15 20 15 10-50..................................... 1,635 52 134 384 401 480 74 44 66 1,504 33 184 329 309 478 67 41 63 50-100................................... 318 22 43 108 57 58 29 1 1,098 42 78 303 221 407 46 (2) 100-500.................................. 285 18 102 103 36 19 1 1 5 3,422 1761,275 1,449 336 128 (2) (2) 23 500 and over........................ 137 9 69 37 15 5 2 19,714 44713,2642,065 3,077 811 (2) Federal Reserve district: Boston................................... 133 13 58 21 22 19 1,255 26 1,032 161 21 16 New York............................ 192 31 85 31 8 28 2 7 9,627 577,566 3451,566 45 (2) 45 Philadelphia......................... 81 12 8 7 32 19 2 1 1,093 62 301 78 19 630 (2) (2) Cleveland.............................. 118 1 13 36 8 51 4 5 1,089 (2) 589 457 19 21 1 1 Richmond............................. 165 3 37 21 12 41 28 23 1,059 69 94 410 90 300 44 52 Atlanta.................................. 521 6 19 119 110 169 56 6 36 1,206 25 300 437 220 161 32 1 30 C St h . i L ca o g u o is .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 19 0 1 0 60 1 5 1 0 8 1 8 4 7 9 8 5 8 2 8 11 4 1 2 4 2 4 .... 2 . 4 2,6 5 2 0 9 0 (2 1 ) 721,9 1 0 6 8 2 2 9 5 6 6 1 5 3 5 6 222 5 (2) 13 3 3 Minneapolis......................... 123 4 5 28 39 34 1 9 375 O) 2 257 103 9 (2) 2 O) Kansas City......................... 385 11 17 125 102 70 26 34 834 12 230 362 137 78 6 7 Dallas.................................... 491 12 28 61 129 163 71 17 10 2,446 171,167 460 345 342 48 63 3 San Francisco..................... 176 8 16 69 56 19 2 3 3 3,832 181 1,451 8741,266 47 (2) 1 12 APPENDIX TABLE 6—NONNEGOTIABLE CD’s AND OPEN ACCOUNT TIME DEPOSITS, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on April 30, 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 3,513 182 4441,161 490 700 124 153 25910,980 3283,6332,8002,728 1,163 61 156 111 Size of bank (total deposits in millions of dollars): Less than 10................................. 705 36 40 144 133 211 21 37 83 162 3 7 36 28 72 2 6 8 10-50.............................................. 1,901 83 160 719 220 355 100 100 164 1,122 34 69 524 141 179 24 85 67 50-100............................................ 436 32 97 119 78 96 6 8 1,006 39 153 274 289 219 7 25 100-500.......................................... 354 23 103 136 45 32 3 8 4 2,691 132 907 1,000 328 235 35 44 10 500 and over................................ 117 8 44 43 14 6 2 5,999 1222,498 966 1,943 458 (2) Federal Reserve district: Boston........................................... 116 5 27 75 5 1 1 2 236 24 141 54 14 (2) (2) (2) New York.................................... 174 7 61 73 12 18 3 2,787 29 1,684 323 626 116 8 Philadelphia.................................. 174 24 45 43 24 28 2 1 7 491 28 135 190 68 33 (2) (2) 3 Cleveland...................................... 275 18 22 123 66 12 17 4 13 461 29 190 161 60 14 3 1 4 Richmond..................................... 302 23 98 40 50 32 1 58 606 71 188 195 78 53 (2) 17 Atlanta........................................... 521 7 30 212 40 106 ” *78 29 19 1,004 21 265 347 155 121 “ *i5 64 17 Chicago......................................... 477 25 70 153 86 72 16 19 36 1,481 81 138 535 228 470 3 9 17 St. Louis........................................ 464 54 19 173 46 104 35 33 400 16 145 134 34 49 12 10 Minneapolis.................................. 147 4 5 12 47 49 7 23 106 1 40 28 21 2 14 Kansas City.................................. 308 5 16 140 26 80 3 9 29 310 8 99 115 38 30 4 12 5 Dallas............................................ 425 4 39 59 70 178 7 41 27 840 1 43 290 227 235 1 33 9 San Francisco.............................. 130 6 12 58 18 20 5 11 2,258 20 603 418 1,172 22 18 5 For notes to Appendix Tables 1-6, see p. 620. 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 JANUARY 31 AND APRIL 30, 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) All of dollars) All of dollars) All of dollars) All of dollars) All of dollars) size 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, April 30, 1972................ 13,016 12,372 644 12,260 11,619 641 12,294 11,675 619 10,662 10,075 587 3,073 2,653 420 3,508 3,037 471 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP * Total. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, Jan. 31-Apr. 30,1972.. 95.4 95.6 90.5 93.9 94.6 81.0 91.9 92.8 76.1 89.0 89.6 78.7 48.1 51.2 28.8 41.4 41.8 39.3 Banks raising rate................ 2.1 2.2 .6 2.7 2.3 11.2 4.3 3.7 14.9 5.5 5.1 12.9 19.1 14.9 45.5 21.5 19.1 36.9 New most common rate 1 (per cent): 3.50 or less............... .2 .2 .2 2 .1 .1 3.51-4.0 0 .2 .2 .5 !i 2.6 .2 .1 .8 4.01-4.5 0 1.7 1.8 .6 4.5 1.5 23.3 3.8 1.5 18.9 4.51-5.0 0 3.2 1.9 11.4 3.9 3.3 8.1 5.01-5.2 5 1.6 1.4 2.4 .6 .3 2.3 5.26-5.5 0 1.9 1.8 2.4 2.0 1.9 3.0 5.51-5.7 5 1.8 1.9 1.2 1.7 1.8 .8 5.76-6.0 0 1.5 1.6 .5 1.1 1.3 .2 6.01-6.2 5 1.0 1.1 .3 .3 .3 .2 6.26-6.5 0 1.4 1.6 .2 6.51-6.7 5 .3 .3 .2 6.76-7.0 0 .8 .9 .3 1.7 1.8 1.3 7.01-7.5 0 .1 .1 .3 .6 .7 7.51-8.0 0 1 .2 8.01-8.5 0 1.9 2.1 .7 3.7 4 A .8 624 FEDERAL RESERVE BULLETIN □ JULY 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banks reducing rate............ 20.5 20.2 22.6 22.2 22.9 17.6 New most common rate 1 (per cent): 3.50 or less............... .4 .5 1.0 1.0 3.51-4.0 0 1.6 1.7 1.2 1.6 1.3 4.01-4.5 0 4.5 3.3 11.9 5.0 4.9 4.51-5.0 0 6.3 6.1 7.4 8.2 8.4 5.01-5.2 5 1.2 1.1 1.7 1.1 1.3 5.26-5.5 0 2.8 3.1 .5 1.1 1.2 5.51-5.7 5 .4 .4 .9 1.0 5.76-6.0 0 2.1 2.4 2.6 2.9 6.01-6.2 5 .1 .1 6.26-6.5 0 .5 .6 6.51-6.7 5 .2 6.76-7.0 0 .1 .3 .3 7.01-7.5 0 7.51-8.0 0 8.01-8.5 0 Banks introducing new in­ strument........................ 13.7 3.1 14.9 16.2 6.2 Most common rate 1 (per cent): 4.00 or less................. 2.7 1.1 1.3 4.01-4.5 0 .4 .5 2.1 2.2 4.51-5.0 0 1.6 1.4 4.4 4.6 5.01-5.2 5 .3 .1 .1 5.26-5.5 0 2.5 2.6 2.9 5 5. . 7 5 6 1 - - 6 5 . . 0 7 5 0 3 1 . . 2 8 1 . . 9 2 1 1 . . 1 4 .1 .1 .1 6.01-6.2 5 6.26-6.5 0 (2) 6.51-6.7 5 (2) 6.76-7.0 0 .2 .6 7.01-7.5 0 (2).2 1.0 7.51-8.0 0 8.01-8.5 0 "i'.o 1.0 * Shaded areas indicate that rates shown in the stub are higher 2 Less than 0.05 per cent. Jan. 31, 1972. The table excludes banks that issued these types of than the maximum permissible rate on the various instruments. Note.—This table was compiled by comparing rates as reported deposits on Jan. 31, but no longer issued them on Apr. 30. Per­ 1 For description of most common rate, see Note to Table 2, by the sample banks that had these types of deposits outstanding centages may not add to totals because of rounding. p. 620. on Apr. 30, 1972, with the rates reported by the same banks on CHANGES IN TIME AND SAVINGS DEPOSITS 625 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Regulatory Changes in Reserve Requirements and Check Collection On June 21, the Board of Governors of the sented.1 In contrast, most banks (both member Federal Reserve System unanimously approved and nonmember) located within Federal Reserve changes in its Regulations D and J. The details Bank or branch cities were required to remit in of the amended Regulations, which will go into funds available on the same business day the effect in two stages beginning on September checks were presented. 21, are set out in the Board’s press release (see The change in Regulation J requires all banks pages 679-82 of this Bulletin). These changes to whom the Federal Reserve presents checks for will restructure reserve requirements against payment, both member and nonmember and Federal Reserve member bank deposits on a regardless of location, to remit in immediately more uniform basis (Regulation D) and speed available funds on the same day the checks are up and modernize the Nation’s check clearing presented. Thus, all banks are placed on an equal system (Regulation J). The change in Regula­ footing insofar as remittance to the Federal tion D represents a further step in the Federal Reserve for checks is concerned. At the same Reserve’s continuing efforts to equalize com­ time, the change constitutes a significant step petitive conditions among member banks. The in the Federal Reserve’s continuing effort to change in Regulation J, which complements accelerate and modernize check collection pro­ the accelerated creation of Regional Check cedures. Processing Centers, constitutes an important The present differences in check remittance part of the System’s ongoing program to im­ requirements were dictated largely by trans­ prove the payments mechanism. portation and communication considerations. The changes in Regulations D and J are purely Banks required to remit on a delayed basis gen­ structural and do not represent any change in erally were located a considerable distance from the stance of monetary policy. Taken together, Federal Reserve clearing facilities. As a result, they will release about $1.5 billion of reserves, additional time was needed for remittance drafts net, but this release has been timed to occur drawn by such banks to reach Federal Reserve just prior to the normal seasonal expansion in offices. With improvements in transportation and bank reserve needs. Moreover, open market communication arrangements, however, such operations can be utilized to supply or absorb as the increased use of courier services and ex­ reserves to maintain money and credit condi­ panded facilities for wire transfers of funds, the tions consonant with over-all monetary policy. need for additional remittance time no longer exists. Thus, the change in Regulation J has been undertaken in recognition of these developments. CHECK COLLECTION PROCEDURES The change in Regulation J is but one of a (REGULATION J) number of related actions being taken by the Prior to the recently approved change, Regula­ Federal Reserve to upgrade the speed and effi­ tion J required most member and nonmember ciency of the Nation’s payments mechanism. banks located outside Federal Reserve Bank or Most important among these companion meas­ branch cities to remit for checks presented to them for payment by the Federal Reserve in funds available to the Federal Reserve one or 1 Nonmember banks remit for checks presented by the more business days after the checks were pre­ Federal Reserve through member bank correspondents. 626 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE REQUIREMENTS AND CHECK COLLECTION 627 ures is the establishment of Regional Check mated reduction of about $2 billion in Federal Processing Centers (RCPC’s), which will ex­ Reserve float, and hence to a reduction of the pand significantly the areas within which checks same amount in member bank reserves, other will be cleared and credit passed from paying to things being unchanged. collecting banks overnight. Such centers already The aggregate effect of the Regulation J are operating in the Baltimore-Washington area, change on member bank reserves will be more Miami, Chicago, Minneapolis, Kansas City, than offset by reserves released through the Denver, and Omaha, and numerous other cen­ change in Regulation D. Estimates of the com­ ters have been either approved or are in various bined effect of these changes are shown in the stages of the planning process. concluding section of this article. First, how­ The impact of the RCPC’s will continue into ever, the estimated impact of the change in Reg­ the future as facilities are added, but the effects ulation J alone, along with the faster crediting of the change in Regulation J will be evident by Reserve Banks for intra-zone checks, is immediately after the September effective date. presented. Under the old provisions of Regulation J, de­ layed remittance upon presentation of checks TABLE 1 ESTIMATED EFFECTS OF CHANGE IN made it possible for some banks to retain re­ REGULATION J ON MEMBER BANK RESERVES serves longer than banks that were required to make payment immediately. Thus, the speed­ Bank size In millions of dollars Net loss (Net demand as per cent up in remittances occasioned by the change in this deposits, in Loss due Gain due of current millions of to earlier to faster required Regulation will give rise to a once-and-for-all dollars) remittance crediting Net loss reserves loss of reserves for the institutions previously (1) (2) (3) (4) benefiting from delayed payment. 2 or less.................. 51 48 3 1.1 The speed-up in payment will be accom­ 2-10 ......................... 541 522 19 0.7 10-100 .................... 1,496 708 788 11.5 panied, however, by accelerated crediting where 100-400.................. 976 443 533 8.1 feasible. Reserve Banks and branches will be Over 400................. 1,125 476 649 4.0 giving earlier credit to collecting banks for some Total.................. 4,189 2,197 1,992 6.1 of the checks on which remittance is being accelerated. In particular, the Federal Reserve will be passing earlier credit on checks drawn on Table 1 shows the estimated effects of the former deferred-payment banks located in the change in Regulation J on member banks in same Federal Reserve zone as the collecting different size classes. The size classes in the bank.2 table are based on net demand deposits, and for Checks presented to the Federal Reserve ease of subsequent comparison, the size breaks drawn on banks in Federal Reserve zones other correspond directly with the reserve ratio breaks than the one in which the collecting bank is specified in the revised Regulation D. Column 1 located, however, will be credited according to of Table 1 shows the estimated dollar reserve the same schedule as before the change in Regu­ loss for member banks in the various size cat­ lation J. At the present time, these checks give egories due to earlier remittance for cash let­ rise to about $2 billion of Federal Reserve “time ters and Column 2 shows the estimated dollar schedule” float. Such float—in effect un­ reserve gain owing to faster crediting by the collected checks on which credit has been given Federal Reserve for cash letters presented to it. —represents Federal Reserve credit that adds to Column 3 shows the net dollar effect of these member bank reserves. Accelerated remittance two aspects of the change in Regulation J, and for such checks, therefore, will lead to an esti­ Column 4 shows the net effect expressed as a percentage of current required reserves. As can 2 The earlier credit provision is not technically a part be seen from Columns 3 and 4 of the table, of the change in Regulation J. Reserve Banks will member banks with net demand deposits in simply continue their longstanding policy of passing earlier credit when earlier remittance is received. the $10 million-$100 million category will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 FEDERAL RESERVE BULLETIN □ JULY 1972 experience the largest aggregate net reserve lished by alterations in Regulation D, required loss from the Regulation J change, both in dol­ reserve ratios against demand deposits will be lar terms and as a per cent of current required determined solely by the amount of such de­ reserves. Banks in the remaining categories posits.3 will experience percentage losses of a signifi­ The new schedule of required reserve ratios, cantly lower order of magnitude. to apply after September 27, 1972, is given in Table 2.4 The ratios shown will apply in grad­ uated fashion to the deposits of a bank. RESTRUCTURING OF RESERVE REQUIREMENTS (REGULATION D) For instance, a bank with net demand deposits of $100 million would have reserve require­ Banks have been divided into two classes for ments of 8 per cent on the first $2 million, 10 the purpose of levying reserve requirements per cent on the next $8 million, and 12 per cent on demand deposits—“reserve city” and “coun­ on the remaining $90 million, or $160,000 + try” banks. Reserve city banks carry signifi­ $800,000 + $10,800,000 = $11,760,000. cantly higher required reserve ratios on demand deposits than country banks; required reserve TABLE 2 ratios for reserve city banks, in fact, are presently NEW REQUIRED RESERVE RATIOS 4V2 percentage points higher than for country Reserve percentages banks. By law the permissible range in which Net demand deposits1 for (in millions of dollars) all member banks reserve requirements on demand deposits can be set is 10 to 22 per cent for reserve city banks 2 2 - o 1 r 0 l e . s . s .. . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . . .. . . . . . .. . . 10 8 and 7 to 14 per cent for country banks. 10-100 ............................................. 12 100-400............................................................... 13 The present reserve city category contains Over 400 .......................................................... 17l/z primarily large banks in financial centers, while demand deposits subject to reserve requirements: gross the country classification includes all other demand deposits less (1) cash items in the process of collection and (2) demand balances due from domestic banks. banks, whether in urban areas or not. The des­ ignation of higher reserve requirements for Under the present schedule, shown in Table reserve city banks is rooted in the historical 3, if a bank is a reserve city bank and has net experience of commercial banks in financial demand deposits of $100 million, its reserves centers having greater deposit volatility— on those deposits must be at least 17 per cent producing the need for larger reserves as pro­ of the first $5 million and \ll/i per cent of the tection against potentially large deposit drains. remaining $95 million, or $17,475,000 in all. But our banking system has evolved to the Alternatively, if a $100 million bank is a country point where basing reserve requirements on bank, its requirement is \2l/i per cent of $5 mil­ geographical considerations is no longer equita­ lion plus 13 per cent of $95 million or ble. Credit markets are national in scope, and $12,975,000 in all. equal competitive opportunities for all banks 3Under this system, a bank automatically will be­ would be best served if reserve requirements come a country bank when its demand deposits fall were based on size of deposits rather than below a particular level. The cut-off point will be deter­ geographic area. Under the old reserve system, mined by the bank’s net demand deposits (gross demand deposits less cash items in the process of collection and for example, a few large active banks enjoyed demand balances due from domestic banks). All banks country bank status, whereas some small banks with average net demand deposits above $400 million bore the heavier burdens of a reserve city classi­ in any given week will be reserve city banks, while all banks with net demand deposits below the $400 million fication. mark in a given week will be country banks. Under its statutory authority to vary required 4 A transitional schedule will hold for present reserve reserve ratios for given classes of banks, the city banks during the week of September 21-27. Under Board of Governors has altered requirements to that schedule, ratios of 8, 10, 12, 16Vfe, and 17^ percent will apply to the indicated intervals in Table 2. During eliminate location as an independent factor in that week, however, the ratios in Table 2 will apply to setting reserves. Under the new system, estab­ present country banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RESERVE REQUIREMENTS AND CHECK COLLECTION 629 TABLE 3 though, will receive the largest percentage CURRENT REQUIRED RESERVE RATIOS savings from the changes. Reserve percentages Net demand deposits1 Reserve city Country COMBINED EFFECTS OF CHANGES IN banks banks REGULATIONS $5 million or less.............................. 17 \2Vi Over $5 million................................. 17% 13 The combined impact of the alterations in Regu­ lations D and J will also vary among different demand deposits subject to reserve requirements: gross demand deposits less (1) cash items in the process of collection size classes of banks, as shown in Table 5. and (2) demand balances due from domestic banks. Measured as a percentage of current required For member banks as a whole, it is currently reserves, the benefits from the changes will be estimated that the change in reserve require­ greatest among the smallest banks, but in ments, taken by itself, will release approxi­ dollar value the largest benefits will accrue to mately $3.4 billion in required reserves—the banks in the largest size classes where most exact sum depending on the amount of deposits deposits are concentrated. Only one size class and their distribution among banks at the time —$10 million to $100 million—will have no net the amendments to Regulation D take effect. The gain. benefits emanating from the restructuring of Although most banks will have gains, some reserve requirements under Regulation D will banks in various classes may be faced with accrue to banks depending on their size and some loss of funds as a result of these reforms. their previous reserve city or country classifica­ Any significant adverse effects on banks, how­ tion.5 As indicated in Table 4, larger banks, ever, will be cushioned by temporary waivers of penalties on reserve deficiencies. The Board TABLE 4 of Governors has instructed Federal Reserve EFFECT OF CHANGES IN REGULATION D Banks to waive penalties in cases when there ON REQUIRED RESERVES is a net loss of funds in excess of 2 per cent of Bank size In millions of dollars Col. 3 net demand deposits. After January 1, 1973, (Net demand deposits in Current New Reserves Col. 1 Reserve Banks are to reduce the amount of millions of required1 required1 released (per cent) dollars) (1) (2) (3) (4) deficiency under waiver, quarter by quarter, until the amount falls to zero or six quarters have 2 or less.................. 263 202 61 23.2 2-10 ......................... 2,773 2,265 508 18.3 elapsed. That is, the deficiency eligible for 10-100 .................... 6,852 6,100 752 11.0 100-400.................. 6,587 5,580 1,007 15.3 waiver, beginning in the first quarter of 1973, Over 400................. 16,081 15,015 1,066 6.6 will be reduced in each quarter, by 1 per cent Total2................. 32,556 29,162 3,394 10.4 of a bank’s net demand deposits, though in no Requirements on all member bank liabilities subject to case will waivers run beyond June 30, 1974.6 reserve requirements, excluding Euro-dollars and commercial To illustrate, suppose a bank has $100 paper. 2Detail may not add to totals due to rounding. million of net demand deposits and a reserve deficiency of $5 million due to changes in most of which are concentrated in cities, will Regulations D and J. The sum of $3 million enjoy the greatest gains in dollar terms. This is will be eligible for waivers—$5 million less 2 as would be expected since such banks hold the per cent of $100 million. At the beginning of the largest amounts of deposits. Smaller banks, first quarter of 1973, the eligible sum will be typically operating in less urbanized areas, reduced by 1 per cent of net demand deposits to $2 million. At the beginning of the next quarter the waived deficiency will fall to $1 5A very few large banks previously enjoying country bank status may be adversely affected by changes in million, and at the end of that quarter the waiver Regulation D. Almost without exception the adverse will disappear. impact, if any, will be slight, and any appreciable im­ pact will be cushioned by temporary waivers of penal­ 6The reduction in waiver will begin as of the first ties on reserve deficiencies. statement week in each quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 FEDERAL RESERVE BULLETIN □ JULY 1972 TABLE 5 NET EFFECT OF CHANGES IN REGULATIONS D AND J Bank size Reserves (in millions of dollars) Col. 4 (Net demand deposits in Current Released Lost Net Col. 1 millions of required1 under D under J released (percent) dollars) (1) (2) (3) (4) (5) 2 or less.............................. 263 61 3 58 22.1 2-10................................... 2,773 508 19 489 17.6 10-100................................ 6,852 752 788 -36 - 0.5 100-400 ............................ 6,587 1,007 533 474 7.2 Over 400........................... 16,081 1,066 649 417 2.6 Total2......................... 32,556 3,394 1,992 1,402 4.3 Requirements on all member bank liabilities subject to reserve requirements, excluding Euro-dollars and commercial paper. 2Detail may not add to totals due to rounding. Further aid also will be available, if needed, culties for individual banks, these changes in during the transition period. The Board has Regulations D and J will work toward a more directed discount officers of Federal Reserve efficient and more equitable banking system— Banks to be responsive to member banks’ re­ one better able to serve the needs of all borrow­ quests for temporary credit to solve problems ers, large and small, and one better equipped to created by the amended Regulations. participate in a rapidly developing, modern pay­ While there may be some transitional diffi­ ments mechanism. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank Debits, Deposits, and Deposit Turnover-Revised Series Monthly data for bank debits and for deposits average of two deposits figures—one for the for the 233 Standard Metropolitan Statistical current and one for the preceding month-end. Areas (SMSA’s) reporting in the bank debits, The account coverage of the debits series, deposits, and deposit turnover series have been which measures the extent to which depositors revised. This revision, the first major change are using their checking accounts, continues to since March 1967, incorporates the following include debits to demand deposit accounts of statistical improvements: individuals, partnerships, and corporations, and 1. Seasonal adjustments: Trading-day ad­ of States and political subdivisions; it excludes justments have been recalculated and applied to debits to U.S. Government, interbank, and time the debits data, and seasonal adjustments have deposit accounts. been recalculated and applied to both debits and deposits data for all SMSA’s in the Board’s ADJUSTMENT FACTORS1 national series. The seasonal and trading-day factors previously 2. SMS A coverage: The series have been in use were calculated in 1967. They were based revised to reflect minor changes that have been on 2lh years of SMSA data that had been made in the boundaries of SMSA’s since the collected since the 1964 revision and on ap­ last revision. proximately 4V2 years of data that had been Revised seasonally adjusted figures for bank collected on a city-center basis prior to the 1964 debits, deposits, and deposit turnover for the revision. Seasonal and trading-day factors national series are shown in the table on pages calculated by using data from 1964 to June 1971 634 and 635. The table, which is based on are the first ones based entirely on monthly data collected by the Reserve Banks, begins figures generated under the current SMSA with January 1964, the first date for which series.2 The effects of these factors on the debits SMS A figures are available. Data are shown for and deposits series are summarized in Table 1. all 233 SMSA’s and for 232 excluding New The revision of seasonal factors and trading- York City; for leading SMSA’s—for New York day adjustments for individual centers has raised City, and for six others combined—and for 226 the levels of monthly debits for all groups in excluding the leading ones. In addition to the the national series for February, March, and figures that they collect for the centers that May while reducing the levels for April, Sep­ appear in the national series, some of the Re­ tember, and October. June and July were also serve Banks collect and publish in their regional reduced for all national series groups except releases data for SMSA’s and centers that are New York City, which increased in these not in the national series. months. In November and December the The national figures for debits (at annual changes in levels were the reverse of the mid­ rates) and for end-of-month deposits are aggre­ year movement, with New York levels declining gates of seasonally adjusted SMSA totals and the levels of the other national series groups prepared by the Federal Reserve Banks. The annual rate of turnover is calculated monthly federal Reserve Monthly X-l 1 variant of the Census from the aggregate of these debits and the Method II Seasonal Adjustment Program has been used. Note.—This article was prepared by Mary F. 2For a description of the current SMSA series, see Weaver of the Banking Section of the Board’s Division Bulletin for March 1965, pp. 390-93, and March of Research and Statistics. 1967, p. 389. 631 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 FEDERAL RESERVE BULLETIN □ JULY 1972 TABLE 1 PERCENTAGE CHANGE IN DEBITS AND DEPOSITS, 1971 National Debits Series Based on seasonally adjusted levels Total 233 SMSA’s Leading SMSA’s 226 other SMSA’s 232 other SMSA’s Month New York 6 Others 1 Debits Deposits Debits Deposits Debits Deposits Debits Deposits Debits Deposits January............................ 1.3 1.6 3.0 1.8 .4 1.9 -.6 1.3 -.2 1.5 February......................... .6 1.1 .8 2.1 .7 .9 .3 .9 .5 .9 March.............................. 1.4 -.1 .7 .7 3.3 .3 1.2 -.4 2.1 -.3 April................................ -.8 .5 -.8 1.4 -.2 .3 -1.2 .2 -.8 .5 May.................................. 1.7 2.6 1.3 -1.2 .8 .2 1.0 — 2 -.8 -2.0 .8 -3.7 -2.7 -1.5 -4.1 -1.5 -2.0 -1.5 July.................................. -.6 .3 1.2 .7 -3.3 .6 -1.1 .4 -2.0 .4 August............................ -2.3 .2 -5.2 -1.0 -.4 .7 .7 .2 .5 September....................... -.9 -.8 .7 -2.1 — .3 -.2 — 1.1 — .2 -.4 1.0 -.4 .4 -1.0 .6 (2) 1.3 -.4 1.2 .2 .9 -2.3 2.0 3.1 .9 1.8 .6 2.3 .7 December....................... .4 -1.5 -.6 -4.0 1.7 -1.5 1.0 -.6 1.3 -.9 Year................................. (2) .1 (2) .2 .2 . l .2 1 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, 2 Less than 0.05 per cent, and Los Angeles-Long Beach Standard Metropolitan Statistical Areas. increasing. The revised seasonal factors for de­ TABLE 2 posits raised the levels of all groupings for 6 COMPARISON OF TOTAL DEBITS BY DISTRICTS, months of the year—January, February, April, FOR THE YEAR 1971 July, October, and November, and reduced In billions of dollars those for June and December. Changes for other Series months were inconsistent from one group to District increase another. Revised Old Boston.......................................... 435.5 435.5 BOUNDARIES OF SMSA’s New York.................................... 5,680.5 5,680.5 Philadelphia................................ 457.3 457.3 The expansion of boundary coverage of Cleveland..................................... 540.3 540.3 Richmond.................................... 377.0 372.4 1.2 SMSA’s in the national series to their present Washington, D. C................. 108.4 106.6 1.7 Baltimore, Md........................ 71.8 71.3 .7 geographic limits, as defined in the 1967 Durham, N. C........................ 5.1 4.1 24.4 Greensboro-Winston-Salem- Census, affects only five SMSA’s in the series. High Point, N. C............... 30.0 28.8 4.2 Atlanta......................................... 450.6 449.5 .2 The impact of these changes is relatively small Birmingham, Ala................... 27.3 26.5 3.0 even in the five that were affected. Four of Chicago........................................ 1,524.3 1,524.3 St. Louis...................................... 269.8 269.8 these five are located in the Richmond Federal Minneapolis................................ 176.7 176.7 Reserve District: Baltimore, Md.; Washington, Kansas City................................ 270.1 270.1 Dallas........................................... 389.0 389.0 D.C.-Md.-Va.; Greensboro-W inston- S alem- San Francisco............................. 1,276.8 1,276.8 High Point, N.C.; and Durham, N.C. The At­ TOTAL................................ 11,848.0 11,842.3 (!) lanta Federal Reserve District has one: Bir­ 1 Less than 0.05 per cent. mingham, Ala. As a result of the additional coverage, total debits for the year 1971 in­ creased by 1.2 per cent in the Richmond District Incorporation of these minor boundary and by 0.2 per cent in the Atlanta District (Table changes in the national series was for the pur­ 2). These changes add less than 0.2 per cent pose of achieving comparability of coverage with to the level of the 226 SMSA’s in the national Federal Reserve Bank releases and conform­ series and they have an even smaller effect on ity with existing boundaries of currently de­ the 232 and 233 SMSA series (Table 1). fined SMSA’s; it does not cause enough dis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER 633 continuity to require special treatment. The One further change affected Federal Reserve combination of two previously reporting district totals without affecting individual SMSA’s now designated as one—Greensboro- SMSA’s in the national series. This was the Winston-Salem-High Point—conforms with ex­ transfer of 24 counties in western Missouri from isting boundaries of currently defined SMSA’s. the St. Louis Federal Reserve District to the However, since the coverage for the new single Kansas City District, effective January 1972. SMSA remains approximately the same as the Therefore, beginning with data for January two previously defined, it has been decided to 1972, Sedalia, Missouri, is reported in the continue to refer to this series as the 233 SMSA Kansas City Federal Reserve District instead of series. the St. Louis District. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER FOR THE YEARS 1964-71 (Debits and deposits in billions of dollars; turnover in per cent; seasonally adjusted) Leading SMSA’s Total 232 SMSA’s Total 233 SMSA’s (excluding New York) 226 other SMSA’s Date New York 6 others 1 Debits Deposits Turnover Debits Deposits Turnover Debits Deposits Turnover Debits Deposits Turnover Debits Deposits Turnover (annual (end-of- (annual (annual (end-of- (annual (annual (end-of- (annual (annual (end-of- (annual (annual (end-of- (annual rate) month) rate) rate) month) rate) rate) month) rate) rate) month) rate) rate) month) rate) 1964—Jan... . 4,420.2 101.7 43.3 1,817.6 21.1 85.6 997.3 24.4 40.3 2 602.5 80.5 32.2 1,605.2 56.1 28.6 Feb... . 4.433.6 100.9 43.8 1.815.1 20.9 86.4 996.1 24.2 40.9 2 618.5 80.0 32.6 1,622.4 55.8 29.0 Mar.. . 4,419.9 102.8 43.4 1.815.0 21.2 86.3 995.9 24.6 40.8 2 605.0 81.6 32.2 1,609.1 57.0 28.5 Apr__ 4,509.8 103.0 43.8 1.844.8 21.8 85.9 018.0 24.4 41.5 2 665.0 81.3 32.7 1,647.0 56.8 28.9 J M u a n y e . .. . . . 4 4 . . 6 5 7 2 1 5 . . 1 7 1 1 0 0 0 2 . . 6 9 4 44 5 . . 5 9 1 1 . . 9 8 4 8 1 2 . . 5 2 2 2 0 1 . . 3 0 9 91 2 . . 1 3 0 0 0 41 7 . . 5 6 2 2 4 4. . 6 2 4 4 2 1 . . 8 2 2 2 7 6 2 43 9 . . 5 6 8 8 0 1 . . 3 9 3 3 3 2 . . 8 6 1 1 , , 6 6 8 3 8 5 . . 2 9 5 5 6 7 . . 1 2 2 2 9 8 . . 9 9 J A u u ly g . . . . . . 4 4 . , 6 6 9 5 7 4 . . 2 0 1 1 0 0 4 3 . . 7 8 4 4 5 4 . . 5 6 1 1 . . 9 9 8 2 1 7 . . 9 6 2 2 1 1 . . 5 6 9 8 3 9 . . 2 4 0 03 2 4 8 . . 7 0 2 2 4 4 . . 9 8 4 4 1 1 . . 7 6 2 2 7 7 1 2 5 6 . . 3 4 8 8 3 2 . . 1 3 3 33 3 . . 1 0 1 1 , , 6 6 9 8 1 7 . . 7 2 5 5 7 8 . . 5 2 2 29 9 . . 2 4 Sept.. . 4.755.8 105.1 45.3 2.012.1 21.7 92.9 037.7 24.9 41.7 2 743.7 83.4 33.0 1,706.0 58.5 29.2 Oct.. . . 4.788.4 105.0 45.6 1.987.8 21.4 92.1 058.4 25.3 42.2 2 800.5 83.5 33.5 1,742.2 58.2 29.8 Nov.. . 4,779.6 106.6 45.2 1.993.5 21.9 91.9 042.6 25.7 40.9 2 786.1 84.7 33.1 1,743.5 59.1 29.7 Dec— 4.778.5 105.1 45.1 1.968.6 21.6 90.5 054.4 25.0 41.6 2 809.9 83.5 33.4 1,755.5 58.5 29.9 1965—Jan... . 847.7 105.1 46.1 2,016.1 21.3 94.0 073.3 25.0 42.9 2 831.6 83.8 33.9 1,758.3 58.8 30.0 Feb... . 917.4 105.0 46.8 2.032.9 21.4 95.2 091.8 24.7 43.9 2 884.5 83.6 34.5 1,792.7 58.9 30.5 Mar.. . 005.2 105.3 47.6 2.078.1 21.3 97.2 111.9 24.8 44.9 2 927.1 84.0 34.9 1,815.2 59.1 30.8 Apr__ 971.5 105.9 47.1 2.035.5 21.5 95.1 113.4 25.1 44.6 2 936.0 84.4 34.9 1,822.6 59.3 30.8 May... ;034.4 105.5 47.6 2,080.4 21.0 97.9 113.1 25.2 44.3 2 953.9 84.5 35.0 1,840.8 59.2 31.1 June... 322.7 106.3 50.3 2.309.6 21.4 108.7 138.3 25.3 45.0 3 013.2 84.8 35.6 1,874.8 59.5 31.6 July.. . 162.0 107.0 48.4 2.174.3 21.5 101.3 113.3 25.6 43.8 2 987.8 85.6 35.1 1,874.4 60.0 31.4 S O N D A e e c u o p c t v g t . _ . . . . _ . . . . . . . . 2 4 5 1 1 8 1 8 5 6 8 0 3 1 8 . . . . . 1 6 9 9 0 1 1 1 1 1 0 0 0 0 0 8 9 8 7 7 . . . . . 3 6 8 9 6 5 4 4 5 4 0 0 7 8 8 . . . . . 3 6 9 8 0 2 2 2 2 2 . . . . . 1 1 2 2 1 5 3 2 8 0 8 4 1 7 2 . . . . . 7 3 2 4 4 2 2 2 2 2 1 1 1 1 1 . . . . . 8 6 3 6 6 1 1 1 9 9 0 0 0 8 8 1 2 4 . . . . . 1 7 2 9 0 2 2 1 1 1 3 6 3 4 3 8 3 4 4 9 . . . . . 1 1 3 4 6 2 2 2 2 2 5 5 5 6 5 . . . . . 8 6 6 9 0 4 4 4 4 4 7 5 4 7 4 . . . . . 9 2 6 2 4 3 3 3 3 3 0 2 2 0 0 2 7 9 4 4 9 6 9 5 7 . . . . . 5 3 3 7 6 8 8 8 8 8 6 7 6 6 7 . . . . . 5 7 8 2 0 3 3 3 3 3 7 5 5 6 5 . . . . . 5 5 7 3 9 2 1 1 1 1 , , , , , 0 9 9 9 9 3 0 3 0 9 8 8 2 4 5 . . . . . 1 5 3 9 2 6 6 6 6 6 1 0 1 1 0 . . . . . 1 5 2 8 6 3 3 3 3 3 1 3 1 2 1 . . . . . 5 7 2 6 4 1966—Jan... . 545.0 112.2 50.3 2.276.6 22.7 102.7 249.7 26.8 47.6 3 268.4 89.4 37.1 2,018.8 62.6 32.6 A F M p e a r b r _ . . _ . . . . . 7 7 8 0 9 2 7 3 6 . . . 3 7 4 1 1 1 1 1 1 3 2 1 . . . 9 2 4 5 5 51 0 1 . . . 9 6 6 2 2 2 . , . 4 3 4 1 8 7 2 9 5 . . . 7 2 9 2 2 2 3 2 2 . . . 6 8 0 1 1 10 0 0 9 4 5 . . . 1 6 9 2 2 3 8 7 0 1 2 8 . . . 5 5 7 2 2 27 6 7 . . . 1 5 0 4 4 4 7 8 7 . . . 3 9 8 3 3 3 3 3 3 8 4 1 3 7 8 . . . 7 8 2 9 9 8 0 0 8 . . . 1 2 8 3 3 3 7 7 6 . . . 8 9 4 2 2 2 , , , 0 0 0 7 6 4 5 6 5 . . . 3 3 4 6 6 6 3 3 2 . . . 3 2 0 3 3 33 2 3 . . . 1 5 0 May... 972.8 112.5 53.0 2.541.8 23.1 110.7 337.6 26.1 50.4 3 431.0 89.4 38.2 2,093.4 63.4 33.1 J J S O A u u e c u p l n t y g t . e . . . . . . . . . . . . . . . 9 0 0 8 1 0 9 8 3 1 1 5 9 6 9 . . . . . 1 1 2 3 2 1 1 1 1 1 1 1 1 1 1 3 1 2 2 2 . . . . . 1 3 2 0 0 5 5 5 5 5 2 2 4 4 3 . . . . . 7 7 8 4 4 2 2 2 2 2 , . . . . 4 5 5 4 5 9 7 6 3 3 5 6 4 7 6 . . . . . 1 1 0 0 0 2 2 2 2 2 2 2 3 2 3 . . . . . 5 7 2 6 0 1 1 1 1 1 1 1 0 0 1 2 8 2 9 1 . . . . . 1 1 1 5 2 3 3 3 3 3 7 7 1 4 1 8 2 4 8 2 . . . . . 1 6 7 9 0 2 2 2 2 2 6 6 6 6 6 . . . . . 1 5 5 3 4 5 5 5 5 51 0 0 1 2 . . . . . 1 3 3 8 0 3 3 3 3 3 5 5 4 5 4 3 4 0 4 0 8 5 3 0 6 . . . . . 1 3 2 2 0 8 8 8 8 8 9 9 9 8 9 . . . . . 5 9 2 8 2 3 3 3 3 3 9 9 8 9 8 . . . . . 6 7 6 2 2 2 2 2 2 2 , , , , , 1 1 1 1 0 6 6 5 3 9 2 8 1 0 4 . . . . . 6 3 6 0 0 6 6 6 6 6 3 2 2 3 2 . . . . . 7 8 7 4 2 3 3 3 3 3 4 4 3 4 3 . . . . . 5 8 2 4 2 Nov.. . 118.5 112.3 54.3 2.591.2 23.3 111.3 367.1 26.2 51.9 3 527.3 89.0 39.4 2,160.2 62.8 34.2 Dec__ 343.9 112.6 56.4 2.776.9 22.9 120.2 403.5 26.4 53.3 3 567.0 89.7 39.9 2,163.5 63.3 34.3 1967—Jan... . 381.8 113.8 56.4 2.807.7 22.9 122.7 367.6 26.7 51.4 3 574.1 91.0 39.6 2,206.5 64.2 34.6 Feb.... 337.5 114.5 55.5 2.745.4 23.4 118.7 391.2 26.8 52.0 3 592.0 91.1 39.5 2,200.8 64.3 34.3 Mar.. . 393.2 115.0 55.7 2.794.4 23.8 118.4 391.5 26.9 51.8 3 598.8 91.2 39.5 2,207.3 64.3 34.3 Apr__ 560.8 114.8 57.1 2.886.4 23.6 121.8 434.7 26.9 53.3 3 674.4 91.2 40.3 2,239.7 64.4 34.8 J M u a n y e . . . . . . , 4 5 3 7 4 2 . . 7 6 1 1 1 1 6 5 . . 6 8 5 5 5 6 . . 6 6 2 2 . . 8 7 5 8 6 2 . . 5 7 2 2 3 3 . . 9 2 1 1 1 2 7 1 . . 1 0 4 4 5 1 2 0 . . 7 6 2 2 7 7 . . 2 2 5 52 3 . . 2 4 3 3 7 65 1 1 6. . 2 9 9 9 2 2 . .7 6 4 3 0 9 . . 1 7 2 2 , , 2 2 6 4 3 1 . . 5 3 6 6 5 5 . . 5 4 3 34 4 . . 5 6 July.. . 696.3 119.7 56.9 2,916.1 24.4 122.3 508.6 28.5 54.2 3 780.2 95.2 40.3 2,271.6 66.8 34.4 Aug.. . 935.7 118.4 58.3 3.070.0 24.2 126.3 532.6 27.7 54.6 3 865.6 94.2 40.8 2,333.0 66.5 35.0 Sept.. . 813.4 119.2 57.3 2.966.3 24.5 121.8 510.8 27.9 54.3 3 847.1 94.7 40.7 2,336.3 66.8 35.1 Oct---- 955.5 120.9 57.9 3.080.3 25.1 124.2 511.7 28.1 54.0 3 875.1 95.8 40.7 2,363.4 67.8 35.1 Nov.. . 056.6 119.9 58.6 3.127.3 24.8 125.5 537.7 28.0 54.8 3 929.3 95.1 41.2 2,391.6 67.1 35.5 Dec__ 095.0 123.2 58.4 3.134.1 26.1 123.2 547.2 28.5 54.8 3 960.9 97.1 41.2 2,413.7 68.6 35.6 634 FEDERAL RESERVE BULLETIN □ JULY 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1968—Jan.. 7.376.8 122.1 60.1 3,317.6 25.6 128.3 1,594..4 28.3 56.1 4,059.1 96.5 41.9 2,464.8 68.1 36.1 Feb., 7.268.2 121.7 59.6 3.213.2 25.2 126.5 .5 28.3 56.0 4,055.0 96.5 42.0 2,471.4 68.3 36.2 Mar. 7.332.6 123.1 59.9 3.266.5 25.4 129.0 .6 28.7 56.9 4,066.1 97.7 41.9 2,446.5 69.0 35.6 Apr. 7.440.6 125.4 59.9 3.223.4 25.9 125.6 .9 29.3 58.2 4,217.3 99.4 42.8 2,530.3 70.2 36.4 May 7,741.4 126.2 61.5 3.457.0 26.3 132.5 .6 29.5 58.5 4,284.4 100.0 43.0 2,566.9 70.5 36.5 June 7.923.6 127.4 62.5 3.627.8 26.9 136.5 .7 29.6 58.4 4,295.9 100.5 42.9 2,570.1 70.9 36.4 July. 8.193.0 127.4 64.3 3.800.3 26.6 142.2 .3 29.7 59.6 4,392.7 100.8 43.6 2,623.4 71.1 37.0 Aug. 8.494.1 127.9 66.5 4.079.6 26.3 154.2 .6 29.8 59.7 4,414.5 101.5 43.6 2,635.9 71.7 36.9 Sept. 8.367.1 131.5 64.5 3.870.2 28.0 142.4 .0 30.2 60.7 4,496.9 103.5 43.9 2,674.9 73.3 36.9 Oct.. 8.543.8 130.1 65.3 3.907.7 27.6 140.6 .2 30.1 62.3 4,636.1 102.6 45.0 2,757.9 72.5 37.8 Nov. 8.578.9 131.7 65.5 3.918.0 27.7 141.8 .9 30.5 62.8 4,660.9 104.0 45.1 2,758.0 73.5 37.8 Dec. 8.726.3 133.1 65.9 3.989.7 28.1 143.1 .4 30.7 63.1 4,736.5 105.1 45.3 2,807.1 74.4 38.0 1969—Jan.. 8.770.2 132.6 66.0 3.943.0 27.8 141.1 .0 30.6 65.1 4,827.2 104.7 46.0 2,834.2 74.2 38.1 Feb., 8.881.4 132.4 67.0 3.966.5 27.4 143.7 .7 30.7 66.5 4,914.9 105.0 46.9 2,879.2 74.4 38.8 Mar. 8.838.4 132.8 66.7 3.947.2 27.8 143.2 .8 30.6 65.2 4,891.2 105.1 46.6 2,894.3 74.5 38.9 J A M u p n a r y e . , 9 9 8 , . . 3 1 8 9 5 4 5 4 7 . . . 5 3 8 1 1 1 3 3 3 4 6 4 . . . 1 3 3 6 6 6 6 8 9 . . . 3 5 2 4 4 3 . . . 1 1 9 4 7 2 1 2 8 . . . 5 7 4 2 2 28 8 7 . . . 3 9 2 1 1 1 4 4 4 8 0 7 . . . 9 2 8 2 2, , ' . . . 1 3 0 3 3 3 1 0 1 . . . 3 7 2 6 6 6 8 6 5 . . . 5 4 0 5 5 4 , , , 1 9 0 7 2 5 6 4 4 . . . 3 6 0 1 1 1 0 0 0 5 8 6 . . . 9 4 0 4 4 4 6 7 8 . . . 7 3 6 2 2 3 , , , 9 9 0 3 4 9 1 0 5 . . . 3 3 0 7 7 7 6 5 5 . . . 7 2 2 4 3 3 0 9 9 . . . 2 8 0 July. 9.186.3 134.9 67.8 3.984.0 28.3 140.9 2,132.. 5 30.8 68.8 5,202.3 106.6 48.5 3,069.8 75.8 40.3 Aug. 9.270.7 134.5 68.8 4.008.6 28.2 141.9 2,181.. 0 30.7 71.0 5,262.1 106.2 49.5 3,081.1 75.6 40.7 Sept. 9.566.8 135.1 71.0 4.201.6 27.9 149.7 2,218.. 7 31.0 71.9 5,365.2 107.2 50.3 3,146.4 76.2 41.5 Oct.. 9.495.4 134.9 70.3 4.103.4 27.8 147.3 2,229.. 3 31.1 71.8 5,392.0 107.1 50.3 3,162.8 76.0 41.6 Nov. 9,608.7 136.1 70.9 4.248.7 28.2 151.8 2,228..5 31.5 71.2 5,360.0 107.9 49.8 3,131.5 76.5 41.1 Dec. 9.568.4 138.1 69.8 4.137.9 28.9 145.1 .9 31.9 71.1 5,430.5 109.2 50.0 3,175.7 77.3 41.3 1970—Jan.. 9,533.3 136.2 69.5 4.067.8 28.6 141.6 2, .7 31.4 71.9 5,465.5 107.6 50.4 3,187.8 76.2 41.5 Feb.. 9.837.5 137.6 71.9 4.268.8 29.4 147.2 2,311.. 6 31.2 73.8 5,568.7 108.1 51.6 3,257.2 76.9 42.5 Mar. 9,936.2 142.7 70.9 4.347.7 30.8 144.3 2, .5 32.6 73.3 5,588.5 111.9 50.8 3,247.0 79.2 41.6 Apr. 10.139.6 137.1 72.5 4.456.8 28.8 149.4 2,385.. 5 31.4 74.5 5,682.9 108.3 51.6 3,297.4 76.9 42.2 May, 10.178.8 135.6 74.6 4.390.6 28.1 154.4 2, .4 30.8 79.3 5,788.1 107.6 53.6 3,323.7 76.8 43.3 June 9.966.6 138.6 72.7 4.296.8 29.3 149.8 2,389.. 4 31.3 76.9 5,669.8 109.3 52.3 3,280.4 78.0 42.4 July. 10.209.3 145.9 71.8 4.447.8 29.2 152.0 2, .1 31.5 76.8 5,761.4 116.7 51.0 3,349.3 85.2 41.1 Aug. 10.345.1 141.5 72.0 4.581.8 29.2 156.8 .8 32.5 76.0 5,763.3 112.2 50.4 3,332.5 79.7 40.4 Sept. 10.419.3 139.2 74.3 4.641.0 28.7 160.3 .1 32.0 75.3 5,778.3 110.5 51.9 3,351.2 78.5 42.3 Oct.. 10.596.9 137.9 76.5 4.786.1 27.4 170.9 .7 31.9 76.8 5,810.8 110.6 52.6 3,356.1 78.7 42.7 Nov. 10.643.6 143.1 75.7 4.829.7 30.6 166.8 .6 32.3 76.1 5,813.8 112.5 52.1 3,371.3 80.3 42.4 Dec. 10.849.7 139.0 76.9 4.933.9 27.8 169.2 .7 31.8 77.6 5,915.7 111.2 52.9 3,429.0 79.4 43.0 1971—Jan.. 10.825.4 141.0 77.3 4.973.0 29.0 175.1 .2 32.0 77.1 5,852.4 112.0 52.4 3,389.1 79.9 42.5 Feb. 11.579.4 143.3 81.5 5.520.5 29.3 189.1 .9 32.4 78.9 6,058.9 114.0 53.6 3,518.0 81.6 43.6 Mar. 11.590.7 145.4 80.3 5.348.7 29.3 182.5 .2 33.5 78.6 6,241.9 116.1 54.2 3,653.8 82.7 44.5 Apr. 11.572.3 144.7 79.8 5,315.4 29.0 182.4 .2 32.7 78.4 6,256.9 115.7 54.0 3,664.7 83.0 44.2 May 11.316.5 146.1 77.8 5.033.8 28.7 174.3 .3 33.1 79.2 6,282.7 117.3 53.9 3,676.4 84.2 44.0 June 11.730.8 145.8 80.4 5.244.0 28.3 184.0 .0 33.1 81.3 6,486.8 117.5 55.2 3,795.9 84.4 45.0 July. 11.703.8 146.9 80.0 5.210.2 28.3 184.4 .0 33.6 80.4 6,493.6 118.7 55.0 3,812.6 85.1 45.0 Aug. 12.093.8 149.4 81.6 5.408.9 29.0 189.0 .7 33.6 82.8 6,684.8 120.4 55.9 3,901.2 86.8 45.4 Sept. 12.202.2 147.5 82.2 5.570.3 29.5 190.6 .5 33.4 82.3 6,631.9 118.0 55.6 3,874.4 84.6 45.2 Oct. 12.221.4 148.6 82.6 5.755.8 28.2 199.5 .2 33.6 80.0 6,465.6 120.4 54.3 3,782.5 86.7 44.2 Nov. 12,915.7 150.6 86.4 5.918.9 29.9 203.7 .2 34.0 87.2 6,996.9 120.7 58.1 4,051.6 86.7 46.7 Dec. 12,383.2 145.3 83.7 5.523.3 26.4 196.1 .8 33.2 85.2 6,859.9 118.9 57.3 4,000.2 85.8 46.4 i Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach Standard Metropolitan Statistical Areas. BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER 635 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement by George W. Mitchell, (national and State) and all other deposi­ Member, Board of Governors of the Fed­ tary institutions (savings banks, savings eral Reserve System, before the Subcom­ and loan associations, and credit mittee on Bank Supervision and Insurance unions).” The committee print now be­ of the Committee on Banking and Cur­ fore you applies only to commercial banks rency, House of Representatives, June 19, insured by the Federal Deposit Insurance 1972. Corporation. The Board’s recom­ mendation of broader coverage was based I appreciate this opportunity to testify on on the premise that any statutory protec­ behalf of the Board of Governors on those tions accorded to commercial banks provisions of the legislation before you should, as a matter of equity, be extended that deal with State taxation of banks. to their close competitors. I recognize, Legislation clarifying the powers of the however, that in some cases these com­ States to tax banks is needed for three petitors have looked upon this suggestion reasons. First, taxation of intangibles as reflecting an intention to expose them owned by banks should be prohibited. to new tax burdens rather than to protect Second, the imposition outside the home them. Congress therefore may prefer to State of taxes measured by net income, restrict this legislation to banks, as the capital stock, or gross receipts, and other committee print would do. “doing business” taxes, should be de­ Regarding intangible personal property, ferred until such time as uniform and the Board’s report recommended that equitable methods may be devised to de­ Congress make permanent “the present termine jurisdiction to tax and to divide denial of authority for States and their the tax base among States. Third, dis­ subdivisions to impose taxes on intangible criminatory forms of taxation that might personal property owned by national discourage interstate and interregional banks and extend that denial to intangible credit movements should be avoided. The personal property owned by State banks committee print before you would ac­ and other depositary institutions.” complish these three broad objectives, and This recommendation relates to ad va­ the Board recommends its enactment. lorem taxation of intangible personal While I have mentioned three broad property owned by banks. It does not objectives, the recommendations in the concern taxes on bank shares or deposits Board’s 1971 report to Congress, submit­ or franchise taxes on capital stock. The ted May 4, 1971, were more detailed. Let recommendation rests on grounds of eq­ me turn now to those recommendations uity and economic impact. and their relation to the legislation before Ad valorem taxes on intangible prop­ you. erty now yield little revenue to the States. At the outset, the Board’s report sug­ The number of States imposing such taxes gested that “it would be desirable that the has been diminishing, reflecting the fact restrictions proposed in our recom­ that intangibles taxes are extremely mendations apply to all commercial banks difficult to enforce effectively. 636 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

At first blush, it might seem that the are not a major source of revenue at difficulties that prevent effective applica­ present. It would be unfortunate if Public tion of intangibles taxes to nonbank busi­ Law 91-156 should lead to a reversal of nesses could be avoided in applying these this trend. taxes to banks. Banks cannot move their The second recommendation in the base of operations from one taxing juris­ Board’s report related to taxation outside diction to another; they are closely super­ the home State. The recommendation was vised, with published balance sheets; and to “limit the circumstances in which na­ tax assessors cannot readily undervalue tional banks, State banks, and other de­ the fixed claims that make up bank assets positary institutions may be subject to to the degree that they generally under­ State or local government taxes on or value other types of assets. measured by net income, gross receipts, But application of intangibles taxes to or capital stock, or to other ‘doing busi­ banks would be inequitable, with perverse ness’ taxes in a State other than the State economic effects. Virtually all of the of the principal office, and prescribe rules assets of banks are in the form of intangi­ for such taxation.” bles, whereas this class of property is For national banks, the law now in much less important for nonfinancial effect confers exclusive taxing authority businesses. So even though intangibles on the domiciliary State. That limitation taxes were to be levied on all corpora­ would terminate December 31, 1972, if tions, such taxes would bear far more the “permanent amendment” of section heavily on banks than on general business 5219 becomes effective, as it will unless firms. Congress takes action at this session. Moreover, such a tax would tend to Under the “permanent amendment” and distort financial flows, with some conse­ under the Board’s recommendation, the quent loss in economic efficiency. For home State might be required to divide example, banks might then invest less in the tax base of its domiciliary banks, both taxable assets such as loans to businesses State and national, with other States in and consumers, and more in tax-exempt which the banks are “doing business.” municipal bonds. Or flows of savings The committee print would continue the might be diverted from banks in States present exclusive jurisdiction in the do­ that imposed such a tax and into banks miciliary State and extend this Federal in States that did not. The process of statutory provision to all insured com­ financial intermediation performed by mercial banks. The section on policy banks and other depositary institutions is includes a declaration that “doing busi­ particularly vulnerable to an intangibles ness” taxes outside the home State should tax since the duplication of financial assets be deferred until uniform and equitable that is inherent in the flow of savings— methods may be developed for determin­ first into deposits of these institutions and ing jurisdiction to tax and for dividing the then into customer loans—would expose tax base among States. We consider this savings flowing through intermediaries to a realistic approach to a complicated an additional layer of taxation. This extra problem. exposure does not occur where funds flow The Board report recognized that its directly from savers to ultimate bor­ recommendation presupposes the for­ rowers. mulation of clear jurisdictional principles The trend is away from intangibles for determining when a State may tax an taxes, which are difficult to administer and out-of-state bank and standard rules for 637 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 FEDERAL RESERVE BULLETIN □ JULY 1972 measuring what part of the base is subject lending practices—comparatively little to tax in any given State. The underlying allocation of the tax base to States other objective was “to forestall the develop­ than the home State of the banks. In a ment of significant impediments to . . . formal sense, virtually all business of mobility [of funds] while safeguarding the commercial banks is conducted in the authority of the States to collect taxes in domiciliary State. Banking practices may circumstances where an outside bank . . . change, of course. State allocation proce­ has established a clear relationship to the dures also may change in a variety of taxing State . . . through a physical pre­ ways unless Federal statutory limitations sence or a pattern of sustained and sub­ are enacted to assure uniformity. stantial operations.” Mere occasional and The Board is not in a position to de­ transitory business activities in a State velop the needed criteria, principles, should not subject a bank to “doing busi­ procedures, and rules for multiple State ness” taxes in that State. It seems prudent taxation. Formulation of satisfactory uni­ to suggest that if banks are now to be form standards will be a time-consuming exposed for the first time to multistate process, requiring a major effort by State taxation (as they would be under the tax authorities. It is unlikely that they will “permanent amendment” in Public Law undertake this effort until the potential 91-156), they should from the very outset revenue justifies it—a development that be given some degree of statutory protec­ may or may not come about in the fore­ tion from the kinds of unsettling diversi­ seeable future. In the interim, it seems ties and uncertainties that characterize reasonable to continue to allocate bank State taxation of interstate manufacturing income and the base for any other “doing and mercantile businesses. business” tax to the domiciliary State for There is at present no consensus among tax purposes, as the committee print pro­ State taxing authorities or in the banking vides. community about the precise methods for The third recommendation in the providing such protection, particularly as Board’s report was to prohibit “imposi­ to rules for division of the tax base. tion of discriminatory or more onerous Equitable division requires either sepa­ license, privilege, or other similar ‘doing rate accounting or apportionment of the business’ taxes upon out-of-state deposi­ tax base by a standard formula. Separate tary institutions than would be imposed accounting is a procedure for nominal upon these institutions if chartered by the separation of affiliated enterprises which taxing State.” This particular form of the States generally have found difficult discriminatory taxation would not be al­ to police and evaluate. On the other hand, lowed under the committee print, since it where States use a formula to apportion would authorize “doing business” taxes the tax base of nonbank businesses, they only in the domiciliary State. More commonly use one or more of three basic broadly, the committee print would ex­ factors: property, payrolls, and sales. pressly prohibit discrimination against These factors are not particularly suited out-of-state banks in any form of taxation, to the banking business. Moreover, as the and would require equal treatment of na­ Board report indicated, if interstate divi­ tional banks and State banks. sion of the taxable net income of banks It is difficult to frame a statutory pro­ were to conform closely to procedures hibition against other forms of discrim­ applied to other businesses by most ination that would add substance to the States, there would be—with present protections now incorporated in the Fed­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 639 eral and State constitutions. Uniformity is law (31 U.S.C. 742), States may include not the answer, since some kinds of uni­ such income in the tax base for a franchise form taxes, such as ad valorem taxes on or excise tax measured by net income, but intangibles, if applied equally to banks not for a direct tax on income. There is and nonbank businesses, would hit banks no economic difference between these two unduly hard. Therefore, as was pointed types of taxes, and the present exemption out in the staff study that accompanied the restricts the choice domiciliary States Board’s report, “it may be necessary in should have in taxing bank income. the interests of equity and economic neu­ Recommendation 5 was that “coins and trality to classify banks and other financial paper currency [should] be considered in­ institutions, particularly depositary insti­ tangible personal property for State and tutions, separately from other businesses local tax purposes.” This recom­ in order that tax provisions may be ad­ mendation is incorporated in the definition justed to their special characteristics.” of “intangible personal property” in the Accordingly, the Board recommends committee print. Cash and currency are continuation of the general standard treated as intangibles under section 5219 against discrimination established in Pub­ of the Revised Statutes as now in effect, lic Law 91-156, without the addition of but the specification would lapse at the specific statutory standards intended to end of 1972 if there were no further leg­ assure uniform treatment for banks and islation. nonbank businesses. The committee print Admittedly, the central questions in­ adopts this approach by authorizing taxa­ volved in Federal legislation pertaining to tion of insured banks only where the tax State and local taxation of banks are quite is imposed generally throughout the tax­ technical and complex. But they are im­ ing jurisdiction on a nondiscriminatory portant for the industry and for some State basis. and local governments. The Board’s The fourth and fifth recommendations report and the staff studies that preceded in the Board’s report involved narrower it have been furnished to the House and questions. Recommendation 4 was that Senate Committees. These documents ex­ States should be authorized “to include, plore the underlying issues in greater de­ in the measure of otherwise valid direct tail. net income taxes, the income realized by The point that I would stress today is banks and other depositary institutions that the restraints on the taxing powers from Federal Government obligations.” of the States incorporated in the proposal The committee print would allocate bank before you will not, in my judgment, cut income to the domiciliary State for tax off important potential sources of revenue, purposes, and provides (in section 104, but they do offer assurance against im­ relating to home-State taxation) that if the position of taxes that might impair the home State chooses to impose a direct tax ability of the banking system to contribute on net income, the tax will apply to inter­ to the efficient allocation of the Nation’s est on Treasury obligations. Under present credit resources. □ 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 records for the first three meetings held in 1972 were pub­ lished in the B u lletin s for April, pages 390-97; May, pages 455- 63; and June, pages 562-70. The records for the meetings held on April 17 and 18, 1972, follow: 640 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEETING HELD ON APRIL 17, 1972 This meeting was called by the Chairman for the afternoon before the meeting scheduled for April 18, 1972, to enable the Committee to consider certain matters before it without infringing on the time available for its deliberations on current monetary policy. 1. Continuing authority directive. The Committee amended paragraph 1(c) of the continuing authority directive with respect to domestic open market operations to provide that interest rates on repurchase agreements (RP’s) arranged by the Federal Reserve Bank of New York with nonbank dealers should be determined by competitive bidding unless otherwise expressly authorized by the Committee. Prior to this action, interest rates on RP’s had been administratively determined by the System Account Management, subject to the provision of paragraph 1(c) that they should not be less than (1) the discount rate of the Federal Reserve Bank of New York or (2) the average issuing rate on the most recent issue of 3-month Treasury bills, whichever is lower. (On three recent occasions—December 23, 1971; January 26, 1972; and March 7, 1972—the Committee had suspended this provision for periods of a few weeks, on the basis of advice from the System Account Manager that it might otherwise not prove feasible to enter into RP’s in the volume likely to be found desirable to meet the Committee’s current reserve objectives.) Although no upper limit was specified in the continuing authority directive, in practice RP rates ordinarily had not been set higher than the discount rate. The amended paragraph read as follows: To buy U.S. Government securities, obligations that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, and prime bankers’ acceptances with maturities of 6 months or less at the time of purchase, from nonbank dealers for the account of the Federal Reserve Bank of New York under agreements for repurchase of such securities, obligations, or acceptances in 15 calendar days or less, at rates that, unless otherwise expressly authorized by the Committee, shall be determined by competitive bidding, after applying reasonable 641 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN □ JULY 1972 limitations on the volume of agreements with individual dealers; provided that in the event Government securities or agency issues covered by any such agreement are not repurchased by the dealer pursuant to the agreement or a renewal thereof, they shall be sold in the market or transferred to the System Open Market Account; and provided further that in the event bankers’ acceptances covered by any such agreement are not repurchased by the seller, they shall continue to be held by the Federal Reserve Bank or shall be sold in the open market. Votes for this action: Messrs. Burns, Hayes, Brimmer, Coldwell, Daane, Eastburn, MacLaury, Maisel, Mitchell, Robertson, Sheehan, and Winn. Votes against this action: None. This action was taken on recommendation of a staff committee appointed to study certain matters relating to RP’s. The staff committee found that such agreements provide a useful means for supplying reserves when the indicated reserve needs are large but are likely to be of a short duration, and that existing procedures for setting RP rates had worked fairly well on the whole. However, the staff committee also concluded that a competitive bidding procedure would have certain advantages. In particular, it would minimize the unwarranted “announcement effects” that had some­ times resulted when market participants attached an unintended policy significance to changes in the RP rate. Secondly, it would insure that the costs to dealers of funds obtained through System repurchase agreements were closely related to the costs of funds available to them from alternative sources. The Open Market Committee concurred in these findings of the staff committee and decided to experiment with a procedure under which rates on RP’s with nonbank dealers would be established through competitive bidding, after applying reasonable limitations on the volume of RP’s with individual dealers. In view of the possibility that circumstances might arise under which a competitive bidding procedure would not be desirable, provision was made for the use of other procedures when expressly authorized by the Open Market Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 643 2. Revision of guideline for operations in Federal agency issues. At this meeting the Committee revised the sixth of the guidelines for the conduct of System operations in securities issued by Federal agencies. Initial guidelines had been approved on August 24, 1971, with the understanding that they would be subject to review and revision as experience was gained, and guideline 5 had been revised on February 15, 1972. Prior to today’s action, guideline 6 had specified that System holdings of any one issue would not exceed 10 per cent of the amount of the issue outstanding, but that there would be no specific limit on aggregate holdings of the issues of any one Federal agency. The revision consisted of an increase in the limit on holdings of any one issue to 20 per cent, and the addition of a provision that aggregate System holdings of the issues of any one agency would not exceed 10 per cent of the amount of outstanding issues of that agency. Votes for this action: Messrs. Burns, Hayes, Brimmer, Coldwell, Daane, Eastburn, MacLaury, Maisel, Mitchell, Robertson, Sheehan, and Winn. Votes against this action: None. This action was taken on the grounds that it would reduce the number of occasions on which the System might have to reject offers of particular issues that were priced attractively relative to other issues, while maintaining the principle that System operations in agency issues should be conducted on a limited scale so as not to dominate the market for such issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN □ JULY 1972 MEETING HELD ON APRIL 18, 1972 Current economic policy directive. The information reviewed at this meeting suggested that real output of goods and services had grown in the first quarter of 1972 at about the stepped-up rate attained in the fourth quarter of 1971, and that prices had risen at a relatively fast pace in the first quarter, in part because of the mid-November termination of the 90-day freeze. Staff projections suggested that the rate of growth in real GNP would increase somewhat in the current quarter and that the uptrend in prices would moderate. In March retail sales increased sharply after having changed little for several months. Industrial production continued to grow at a substantial rate, employment rose appreciably in manufacturing and other nonfarm establishments, and the average factory workweek remained near the high level reached in February. However, the unemployment rate moved back up to 5.9 per cent from 5.7 in February, reflecting a very large increase in the civilian labor force. Housing starts dropped in March from the extraordinary high they had reached in February. The uptrend in wholesale prices of industrial commodities con­ tinued in March at about the relatively rapid rate prevailing since mid-November, when the 90-day freeze had ended. However, average prices of foodstuffs declined, after having risen sharply in February, and the increase in the total wholesale price index was small. Average hourly earnings of production workers on private nonfarm payrolls now were estimated to have advanced at a more rapid pace in January and February than had been indicated by earlier data, and they rose appreciably further in March. According to staff projections, growth in real GNP would pick up in the second quarter mainly because of a sizable advance in consumer spending. Such spending would be buoyed by a much larger gain in disposable income than in the first quarter, when an increase in personal income tax payments under the new with­ holding schedules had dampened the rise. The staff projections suggested that both Federal purchases and State and local govern­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 645 ment outlays would continue to expand at moderate rates and that the rise in residential construction outlays would slow as housing starts declined from a record level. It was expected that business capital outlays, in line with recent surveys, would continue to increase, but at a less rapid pace than in the first quarter. Projections for the second half of the year suggested some further step-up in the rate of growth in real GNP. It was anticipated that disposable income and consumption expenditures would increase at a faster pace; that business capital outlays would continue to grow at moderate rates and inventory investment would increase further; that State and local government expenditures would expand substantially; and that net exports would improve in lagged response to the earlier realignment of exchange rates. On the other hand, Federal outlays were expected to rise at a slower pace than in the first half of the year and residential construction activity was expected to level off. In foreign exchange markets the dollar had strengthened some­ what since mid-March and the deficit in the U.S. balance of payments on the official settlements basis had been small, in contrast with preceding weeks when the dollar had weakened in association with speculative outflows of funds. Markets had been influenced in recent weeks by the rise in short-term interest rates in the United States relative to those abroad and by the enactment on April 3 of the Par Value Modification Act, which raised the U.S. official price of gold from $35 to $38 per ounce. In February the value of U.S. exports fell much more than the value of imports and the deficit in merchandise trade increased from the already large amount in January. Short-term interest rates generally had continued to rise since the Committee’s meeting on March 21, in response to some further tightening in money market conditions and to evidence of gathering strength in economic activity and rising credit demands. However, the market rate on 3-month Treasury bills, at about 3.85 per cent on the day before this meeting, was unchanged from 4 weeks earlier. Demands for bills of short maturities had expanded in recent weeks, and the prospective supply was reduced when the Treasury announced on March 21 that it would no longer add $300 million to its weekly issues of 91-day bills, as it had been doing since February 14. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN □ JULY 1972 In association with increases in yields on most types of short-term securities and growing uncertainties about the course of interest rates in general, rates on long-term securities also had drifted upward since the March meeting. The combined volume of new corporate and State and local government bonds publicly issued changed little in March, remaining well below the monthly average of 1971; the volume of offerings appeared likely to increase somewhat in April. Contract interest rates on conventional new-home mortgages declined slightly in March while yields in the secondary market for Federally insured mortgages changed little. Inflows of savings funds to nonbank thrift institutions remained very large; for the first quarter as a whole they approximated the extraordinarily high rates of the same period of 1971. At commercial banks, business loans outstanding rose in March at the stepped-up pace of February, and real estate and consumer loans continued to expand rapidly. Banks increased sharply further their holdings of both U.S. Government and other securities. In reaction to strengthening loan demand and advances in money market rates, most major banks raised their prime rates from 4% to 5 per cent in late March and early April. Growth in the narrowly defined money stock (private demand deposits plus currency in circulation, or Mt) remained rapid in March. However, growth in the more broadly defined money stock (Mj plus commercial bank time and savings deposits other than large-denomination CD’s, or M2) slowed somewhat. Inflows of savings funds to commercial banks, while still strong, continued to moderate—reflecting in part the increases in yields available on short-term market securities and earlier reductions in rates paid by banks on time and savings deposits. Over the first quarter, Mx and M2 grew at annual rates of about 9.5 and 13.5 per cent, respectively, compared with rates of about 1 and 8 per cent over the fourth quarter of 1971.1 Chiefly because of large swings in U.S. Government deposits, the rate of growth in the bank credit proxy—daily-average member bank deposits, adjusted to include 1 Growth rates cited are calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 647 funds from nondeposit sources—increased sharply in March after having slowed in February. System open market operations since the March 21 meeting of the Committee had been directed at fostering growth in reserves available to support private nonbank deposits at an annual rate in the March-April period of 9 to 13 per cent while at the same time avoiding sharp day-to-day fluctuations and large cumulative changes in money market conditions. It appeared at present that the reserve measure employed would actually grow over the March-April period at an annual rate of about 13.5 per cent, but a technical adjustment to the underlying data—which did not affect the deposit measure—accounted for about 1 percentage point of the rate of growth in the measure of reserves. The Federal funds rate had risen from about 4 per cent at the time of the March 21 meeting to around 4lA per cent in recent weeks. Member bank borrowings averaged about $105 million in the 4 weeks ending April 12 compared with about $45 million in the preceding 5 weeks. The Committee agreed that the economic situation called for growth in the monetary aggregates at rates somewhat more moder­ ate than those recorded for the first quarter of the year. The members took account of a staff analysis which suggested that somewhat more moderate rates of growth over April and May combined were likely to be associated with expansion in the volume of reserves available to support private nonbank deposits at an annual rate of about 9 per cent in those months and probably with some further tightening of money market conditions. The Committee decided to seek growth in the reserve measure employed at an annual rate in a range of 7 to 11 per cent during the April-May period and to accept, if necessary, somewhat firmer money market conditions in order to achieve growth in that range in existing circumstances, while continuing to avoid sharp fluctua­ tions and large cumulative changes in money market conditions. The members also decided that account should be taken of the forthcoming Treasury financing and of developments in capital markets, and that some allowance should be made in the conduct of operations if growth in the monetary aggregates appeared to be deviating significantly from the somewhat more moderate rates expected. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 FEDERAL RESERVE BULLETIN □ JULY 1972 before the next scheduled meeting if it appeared that the Commit­ tee’s objectives and constraints were not being met satisfactorily. 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 grew in the first quarter at about the stepped-up rate attained in the fourth quarter of 1971. Most measures of business activity have shown strength recently and demands for labor have improved further, but the unemployment rate remains high. The rise in wholesale prices slowed in March as some farm and food products declined sharply, but the rise in prices of industrial com­ modities remained substantial. Wage rates also rose substantially in March and over the first quarter as a whole. The dollar has strengthened somewhat in exchange markets in recent weeks, and the over-all U.S. balance of payments deficit on the official settle­ ments basis has been small. In January and February merchandise imports continued to be considerably in excess of exports. The narrowly defined money stock expanded rapidly in February and March, bringing the annual rate of growth over the past 6 months to about 5% per cent. Inflows of consumer-type time and savings deposits to banks have been strong thus far this year, although they moderated as the first quarter progressed; inflows to nonbank thrift institutions remained very large. Mainly reflecting swings in U.S. Government deposits, a modest increase in the bank credit proxy in February was followed by a large increase in March. Market interest rates generally have continued to rise in recent weeks. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to sustainable real economic growth and increased em­ ployment, abatement of inflationary pressures, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, while taking account of capital market developments and the forthcoming Treasury financing, the Commit­ tee seeks to achieve bank reserve and money market conditions that will support somewhat more moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Brimmer, Coldwell, Daane, Eastburn, MacLaury, Maisel, Mitchell, Robertson, Sheehan, and Winn. Votes against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions RESERVE REQUIREMENTS; The text of the amendments to Regulations D CHECK COLLECTION BY FEDERAL and J reads as set forth below: RESERVE BANKS The Board of Governors has approved amend­ AMENDMENTS TO REGULATION D ments to Regulation D, “Reserves of Member Banks,” and to Regulation J, “Collection of 1. Effective September 21, 1972, sections Checks and other Items by Federal Reserve 204.51 through 204.57 are revoked. Banks”, to (1) adopt a system of reserve require­ 2. Effective September 21, 1972, sections ments against demand deposits of all member 204.2(a)(2) and (3) are amended to read as follows: banks based on the amount of such deposits held by a member bank, and (2) to require banks— SECTION 204.2—COMPUTATION member and nonmember—to pay cash items OF RESERVES presented by a Federal Reserve Bank on the day (a) Amounts of reserves to be maintained. of presentment in funds available to the Reserve Bank on that day. (2) A member bank in a reserve city is deemed In order to phase in gradually the new reserve to have a character of business similar to banks requirement structure, the amendments to Regu­ outside of reserve cities whenever it has average lation D have various deferred effective dates as net demand deposit balances of $400 million or indicated below. Under the new structure, reserve less for the second computation period preceding percentages will be based on a member bank’s the current reserve maintenance period. The Board deposits without regard to the location of the bank. grants permission to any such bank or banks to An integral part of the change is a redefinition maintain for the current period the reserve balances of the term “reserve city” under which a city that are in effect for member banks not located in would become a reserve city automatically as reserve cities. Such permission and any other per­ the net demand deposits of a member bank with mission granted by the Board to maintain reduced its head office located in that city rise above $400 reserves is automatically suspended for the current million; unless a Federal Reserve office is located reserve maintenance period with respect to any in that city, it would cease to be a reserve city member bank in a reserve city that has average if no member bank headquartered in the city has net demand deposit balances of more than $400 average net demand deposits of that amount. million for the second computation period preced­ The amount of reserves that a bank having de­ ing the current reserve maintenance period. Any posits of $400 million or less must maintain would such bank shall maintain for the current period not be affected by the bank’s being located in a the reserve balances in effect for banks located city that is classified as a reserve city. Permission in reserve cities. to carry reduced reserves would be extended to (3) For the purposes of this Part, each city hav­ all banks having deposits of $400 or less located ing a Federal Reserve office is a reserve city. In in a reserve city. addition, any city, town, village or other com­ To aid in implementing the new requirements munity, whether or not incorporated, is a reserve regarding payment of cash items upon present­ city for a reserve computation period if it con­ ment, Regulation J has been amended to provide tains a head office of any member bank that had that if a Federal Reserve Bank does not receive average daily net demand deposit balances of more payment for a cash item in the manner prescribed than $400 million for the second computation by the regulation, the amount of the item may be period preceding the current reserve maintenance charged back to the sender of the item. period. 649 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN c JULY 1972 3. Effective during the period from September eral Reserve System hereby prescribes the follow­ 21 to September 27, 1972, sections 204.5(a)(l)(iii) ing reserve balances that each member bank of and (2)(iii) (the supplement to Regulation D) the Federal Reserve System is required to maintain are amended to read as follows: on deposit with the Federal Reserve Bank of its district: SECTION 204.5—RESERVE (1) If not in a reserve city— REQUIREMENTS (a) Reserve percentages. Pursuant to the pro­ (iii) (a) 8 per cent of its net demand deposits if visions of section 19 of the Federal Reserve Act its aggregate net demand deposits are $2 million and § 204.2(a) and subject to paragraph (c) of this or less, (b) $160,000 plus 10 per cent of its net section, the Board of Governors of the Federal demand deposits in excess of $2 million if its Reserve System hereby prescribes the following aggregate net demand deposits are in excess of $2 reserve balances that each member bank of the million but less than $10 million, (c) $960,000 Federal Reserve System is required to maintain plus 12 per cent of its net demand deposits in ex­ on deposit with the Federal Reserve Bank of its cess of $10 million if its aggregate net demand district: deposits are in excess of $10 million but less than (1) If not in a reserve city— $100 million, or (d) $11,760,000 plus 13 per cent of its net demand deposits in excess of $ 100 million. (iii) (a) 8 per cent of its net demand deposits if (2) If in a reserve city (except as to any bank its aggregate net demand deposits are $2 million located in such a city that is permitted by the Board or less, (b) $160,000 plus 10 per cent of its net of Governors of the Federal Reserve System, pur­ demand deposits in excess of $2 million if its ag­ suant to § 204.2(a)(2), to maintain the reserves gregate net demand deposits are in excess of $2 specified in subparagraph (1) of this paragraph)— million but less than $10 million, (c) $960,000 plus 12 per cent of its net demand deposits in (iii) $50,760,000 plus 17V2 per cent of its net excess of $10 million if its aggregate net demand demand deposits in excess of $400 million. deposits are in excess of $10 million but less than $100 million, or (d) $11,760,000 plus 13 per AMENDMENTS TO REGULATION J cent of its net demand deposits in excess of $100 million, except that in the case of a bank that was Effective September 21, 1972, Regulation J is considered located in a reserve city prior to amended as follows: September 21, 1972, the reserve percentage shall be 16^ per cent of its net demand deposits 1. Section 210.9(a) is amended to read: in excess of $100 million. (2) If in a reserve city (except as to any bank SECTION 210.9—REMITTANCE AND located in such a city that is permitted by the PAYMENT Board of Governors of the Federal Reserve Sys­ (a) (1) Cash item. A paying bank becomes tem, pursuant to § 204.2(a)(2), to maintain the accountable for the amount of each cash item re­ reserves specified in subparagraph (1) of this ceived by it from or through a Federal Reserve paragraph)— Bank at the close of the paying bank’s banking day * * * * * on which the cash item was so received4 if it retains (iii) $61,260,000 plus HV2 per cent of its net such item after the close of such banking day, un­ demand deposits in excess of $400 million. less, prior to such time, it pays or remits for the item as herein provided. Payment or remittance 4. Effective September 28, 1972, sections therefor shall be effected on such day of receipt 204.5(a)(l)(iii) and (2)(iii) (the supplement to by: Regulation D) are amended to read as follows: SECTION 204.5—RESERVE 4 A cash item received by a paying bank shall be deemed to have been received by the bank on its next banking day if the REQUIREMENTS item is received under one of the following circumstances: (1) on (a) Reserve percentages. Pursuant to the pro­ a day other than a banking day for it, or (2) on a banking day for visions of section 19 of the Federal Reserve Act it, but (a) after its regular banking hours, or (b) after a “cut-off and §204.2(a) and subject to paragraph (c) of hour” established by it in accordance with applicable State law, or (c) during afternoon or evening periods when it is open for this section, the Board of Governors of the Fed­ limited functions only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 651 (1) debit to an account on the books of a Federal banking day of receipt or takes such other action Reserve Bank; or to recover such payment or remittance within such (ii) payment in cash; or time and by such means as may be provided by (iii) in the discretion of the Federal Reserve applicable State law: Provided, that the foregoing Bank, any other form of payment or remittance: provisions shall not extend, nor shall the time herein Provided, that the proceeds of any such payment provided for return be extended by, the time for or remittance in any form herein stated shall be return of unpaid items fixed by the rules and prac­ available to the Federal Reserve Bank not later tices of any clearing house through which the item than the close of the banking day for such Federal was presented or fixed by the provisions of any Reserve Bank on the day on which such item was special collection agreement pursuant to which it so received by the paying bank. If the banking day was presented. on which an item is received by a paying bank is not a banking day for the Federal Reserve Bank 3. Section 210.13 is amended to read: from which the item was received, any payment or remittance made hereunder shall be effected on SECTION 210.13—CHARGEBACK OF the banking day of both such Federal Reserve UNPAID CASH ITEMS AND Bank and such paying bank next following the day NONCASH ITEMS of receipt of such item. (2) Noncash item. A Federal Reserve Bank may If a Federal Reserve Bank does not receive pay­ require the paying bank or collecting bank to which ment for any cash item in accordance with the pro­ it has presented, sent, or forwarded any noncash visions of § 210.9(a), the amount of such item item pursuant to § 210.7 to pay or remit for such may be charged back to the sender, regardless of item in cash, but is authorized, in its discretion, to whether or not the item itself can be returned. If a permit such paying bank or collecting bank to Federal Reserve Bank does not receive payment in authorize or cause payment or remittance therefor actually and finally collected funds for any cash to be made by a debit to an account on the books item or noncash item for which it gave credit sub­ of such Federal Reserve Bank or to pay or remit ject to payment in actually and finally collected therefor in any of the following which is in a form funds, the amount of such item shall be charged acceptable to such Federal Reserve Bank: Bank back to the sender, regardless of whether or not draft, transfer of funds or bank credit, or any other the item itself can be returned. In the event the form of payment or remittance authorized by ap­ amount of the item is charged back, neither the plicable State law. owner or holder of any such item nor the sender (3) Nonbank payor. A Federal Reserve Bank shall have the right of recourse upon, interest in, may require the nonbank payor to which it has pre­ or right of payment from, any reserve balance, sented any cash item or noncash item pursuant to clearing account, deposit account, or other funds § 210.7 to pay therefor in cash, but is authorized, of the paying bank or of any collecting bank, in the in its discretion, to permit such nonbank payor to possession of the Federal Reserve Bank. No draft, pay therefor in any of the following which is in a authorization to charge, or other order, upon any form acceptable to such Federal Reserve Bank: reserve balance, clearing account, deposit account, Cashier’s check, certified check, or other bank draft or other funds in the possession of a Federal Re­ or obligation. serve Bank, issued for the purpose of paying or remitting for any cash items or noncash items han­ 2. Section 210.12(a) is amended to read: dled under the terms of this Part, will be paid, acted upon, or honored after receipt by such Federal Re­ SECTION 210.12—RETURN OF CASH ITEMS serve Bank of notice of suspension or closing of the bank making the payment or remittance for (a) A paying bank that receives a cash item its own or another’s account. from or through a Federal Reserve Bank, other­ wise than for immediate payment over the counter, 4. Section 210.15 is amended to substitute the and that pays or remits for such item as provided term “§ 210.9” for the term “§ 210.12” appear­ in § 210.9(a) of this Part shall have the right to re­ ing at the end of § 210.15. cover any payment or remittance so made if, before it has finally paid the item, it returns the item before (See page 626 of this Bulletin for an article midnight of its banking day next following the regarding these regulatory changes.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 FEDERAL RESERVE BULLETIN c JULY 1972 WAIVER OF PENALTIES FOR to banking or managing or controlling banks the DEFICIENCIES IN RESERVES performance of property management services. A public hearing was held on the proposal January In connection with the foregoing amendments 26, 1972, and the Board’s decision to withdraw to Regulations D and J, the Board has determined the proposal was made following consideration that member banks that will be adversely affected of the record of the hearing and the written com­ to a substantial degree by adoption of these pro­ ments submitted. posals should be permitted a reasonable time to The Board’s action is not intended to limit the adjust to the effects of the new regulations. Below authority presently conferred by statute or regula­ is the text of a letter to the Federal Reserve Banks tion on bank holding companies and their sub­ setting out this measure: sidiaries to engage in certain property manage­ The Board regards it as appropriate for a Reserve Bank ment activities. Accordingly, bank holding com­ to waive penalties in some cases for member bank reserve panies and their subsidiaries may continue to deficiencies that result from the implementation of the engage in property management activities with proposed amendments to Regulations D and J, announced respect to the following types of property: on March 28, 1972. In those cases where the implemen­ tation of these changes would result in a net loss of funds (a) properties held in a fiduciary capacity. (as computed by the Reserve Bank) in an amount more (b) properties owned by the holding com­ than two per cent of the member bank’s net demand de­ pany or its subsidiaries for conducting its posits, it seems appropriate to waive certain of the pen­ own bank and bank related operations. alties for reserve deficiencies. For the reserve periods ending on or before January 1, 1973, it is regarded as (c) properties acquired by the holding company appropriate in such cases to waive penalties on deficien­ or a subsidiary as a result of a default on cies in amounts of the full loss, less the two per cent of a loan. net demand deposits. For each subsequent quarter, an additional one per cent of net demand deposits would be subtracted from the amount of deficiencies eligible for waiver, until the amount of the waiver is eventually zero. This authorization for waivers will terminate on June 30, INTERPRETATIONS OF REGULATION Z 1974. The loss to each member bank should be calculated as FINANCE CHARGE BASED ON AVERAGE the average amount1 of the bank’s Federal Reserve cash DAILY BALANCE IN OPEN END letter for which it would make earlier payment, less the CREDIT ACCOUNTS average amount of same-territory country items for which the bank would receive earlier credit, or two per cent of its net demand deposits, whichever is less, less the aver­ The Board of Governors has amended its inter­ age reduction in reserve requirements due to the change pretation on this subject (1969 B u lletin 444) to in Regulation D. (For those few banks whose reserve re­ clarify the disclosures required by creditors of quirements would be increased, the change in reserves such accounts when they compute the finance would be added rather than subtracted.) Applications for waiver should be submitted by a charge by the application of a daily periodic rate member bank prior to August 15, 1972. to the daily balance on the account. The amended interpretation reads as follows: BANK HOLDING COMPANIES; Section 226.7(b)(8) requires that periodic state­ PROPERTY MANAGEMENT SERVICES ments for open end accounts shall disclose, among other things, “The balance on which the finance The Board of Governors announced on June charge was computed, and a statement of how 30, 1972, that it does not consider property man­ that balance was determined.” In some instances, agement services a permissible activity for bank creditors compute a finance charge on the average holding companies under § 4(c)(8) of the Bank daily balance by application of a monthly periodic Holding Company Act. The decision withdraws rate. In such case, this information is adequately a proposal of September 14, 1971, to add to the disclosed if the statement gives the amount of the list of activities considered to be closely related average daily balance on which the finance charge was computed, and also states how the balance is *The average amount will be calculated over the 4-week determined. In other instances, the finance charge period ending on June 28, 1972. However, if an RCPC has been is computed on the balance each day by application implemented during 1972, the Reserve Bank should choose a 4-week period prior to the date of such implementation. In addi­ of a daily periodic rate and such charges are tion, for purposes of these calculations, the figure for net demand accumulated and debited to the account in a single deposits should be the average amount of net demand deposits over that same period. amount for the billing cycle. The question arises Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 653 whether the periodic statement must show for statement “the balance on which the finance charge each day of the billing cycle a balance on which was computed, and a statement of how that balance a finance charge was computed. was determined.” The question is raised whether If a daily periodic rate is used, the balance to these provisions require a creditor to provide a which it is applicable shall be stated as follows: description of the manner in which payments or (1) A balance for each day in the billing cycle; other credits are applied to various portions of the or balance or balances on which finance charges are (2) A balance for each day in the billing cycle computed. on which the balance in the account changes; or In disclosing the method of determining the (3) The sum of the daily balances during the balance(s) upon which finance charges are com­ billing cycle; or puted, it is not necessary to show the method of (4) The average daily balance during the billing allocating payments or other credits. For example, cycle in which case the creditor shall state on the explanation of the manner in which payments or face of the periodic statement, its reverse side, or credits may be applied to late charges, overdue bal­ on an enclosed supplement wording to the effect ances, finance charges, insurance, premiums or that the average daily balance is or can be multi­ other portions of balances is not required. Simi­ plied by the number of days in the billing cycle and larly, explanation of the method of allocating such the periodic rate applied to the product to determine payments between cash advance and purchase the amount of the finance charge. portions of the account is not required. Such expla­ nations in many cases involve lengthy and complex OPEN END CREDIT—ALLOCATION descriptions which may unduly complicate dis­ OF PAYMENTS closures. Explanation of the allocation method may be Section 226.7(a)(2) provides that before the made by creditors where it can be done in conform­ first transaction is made on any open end credit ity with § 226.6(c) which authorizes additional in­ account, the creditor must disclose “the method formation or explanations as long as they are not of determining the balance upon which a finance stated, utilized, or placed so as to mislead or con­ charge may be imposed.” Section 226.7(b)(8) fuse the customer or contradict, obscure, or detract requires the creditor to disclose on the periodic attention from the required disclosures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN c JULY 1972 ORDERS UNDER SECTION 3 OF BANK HOLDING Security National is the twenty-sixth largest of COMPANY ACT 63 banks in the Second Banking District and the sixth largest of 27 banks in the Trenton Market FIRST NATIONAL STATE which consists primarily of Mercer County but B ANCORPOR ATION, encompasses portions of Hunterdon, Somerset, NEWARK, NEW JERSEY Middlesex, Monmouth and Burlington Counties, and Bucks County, Pennsylvania. It controls 1.2 Order Approving Acquisition of Bank per cent and 4.1 per cent of the District and Market First National State Bancorporation, Newark, deposits, respectively. Consummation of the New Jersey, a bank holding company within the proposal would not adversely affect any area meaning of the Bank Holding Company Act, has banks. applied for the Board’s approval under § 3(a)(3) The closest office of Applicant’s subsidiaries of the Act (12 U.S.C. 1842(a)(3)) to acquire up to Trenton where Security National operates its to 100 per cent of the voting shares (less direc­ two offices is 26 miles northeast. Security Na­ tors’ qualifying shares) of First National State tional has received approval for a second branch Bank of Central Jersey, Trenton, New Jersey, office to be located in Lawrence, a township 8 the successor by merger to The Security Nation­ miles north of Trenton. There is no substantial al Bank of Trenton, Trenton, New Jersey (“Securi­ amount of present competition between any of ty National”). The bank into which Security Na­ Applicant’s subsidiary banking offices and Securi­ tional is to be merged has no significance except ty National. Moreover, the likelihood of mean­ as a means to facilitate the acquisition of Security ingful future competition developing between National. Accordingly, the proposed acquisition them is minimized due to the distances separat­ of the shares of the successor organization is ing the banks, New Jersey’s restrictive branch­ treated herein as the proposed acquisition of shares ing laws, and the relatively small size of Security of Security National. National. Consequently, consummation of the Notice of the application, affording opportunity proposal would have no significant adverse effect for interested persons to submit comments and on present or potential competition. views, has been given in accordance with § 3(b) The financial and managerial resources of Ap­ of the Act. The time for filing comments and plicant are satisfactory and its prospects appear views has expired, and none has been timely re­ favorable. Applicant proposes to strengthen the ceived. The Board has considered the application capital position of Security National and to also in the light of the factors set forth in § 3(c) of the remedy a potential management succession prob­ Act (12 U.S.C. 1842(c)). lem. Prospects for Security National under Ap­ Applicant controls five banks with aggregate plicant’s control appear favorable and considera­ deposits of $1.2 billion, representing 6.2 per cent tions relating to banking factors lend some weight of the total commercial bank deposits in New Jersey toward approval of the application. Applicant and is the largest banking organization in the proposes to enable Security National to offer State.1 Acquisition of Security National ($54 new services which would include a personal million deposits) would increase Applicant’s share trust service and data processing. Applicant of New Jersey Bank deposits by .4 percentage would also enable Security National to serve points. customers with larger credit needs and would Applicant presently operates 45 offices in New assist in the expansion of the bank’s present in­ Jersey’s First Banking District and 11 offices in ternational department. Therefore, considerations the Second Banking District, controlling 10.9 relating to the convenience and needs of the and 2.0 per cent of the banking deposits in these communities involved are consistent with ap­ respective Districts. Its lead bank ($930 million proval of the application. It is the Board’s judg­ deposits) competes actively for retail and whole­ ment that the proposed transaction would be in sale banking business throughout the State and to the public interest and that the application should some degree in New York City. Applicant ac­ be approved. quired the four remaining small and locally oriented On the basis of the record, the application is banks the latter part of 1970. approved for the reasons summarized above. The transaction shall not be consummated (a) banking data are as of December 31, 1971, and reflect before the thirtieth calendar day following the holding company formations and acquisitions approved by the Board through April 30, 1972. effective date of this Order or (b) later than three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 655 months after the effective date of this Order, commercial banks in the Kansas City SMSA. unless such period is extended for good cause While both Bank and City National are located by the Board, or by the Federal Reserve Bank of in the same market area, consummation of the New York pursuant to delegated authority. proposal would eliminate little existing or potential By order of the Board of Governors, effective competition. Because of its conservative manage­ June 2, 1972. ment and operating policies Bank has not been an effective alternative source of banking services Voting for this action: Vice Chairman Robertson and for the lower and middle income families residing Governors Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Chairman Burns. within its service area and has not been an ef­ (Signed) Tynan Smith, fective competitor to City National or the other [seal] Secretary of the Board. area banks. Further, in light of the large number of alternatives for banking services available in the Kansas City market, the elimination of UNITED MISSOURI BANCSHARES, INC., bank as an independent alternative would have KANSAS CITY, MISSOURI no significant adverse effects. Applicant is not dominant in the market and upon consummation Order Approving Acquisition of Bank of the proposal would control slightly less than United Missouri Bancshares, Inc., Kansas 11 per cent of deposits in the market. The Board City, Missouri, a bank holding company within concludes therefore that consummation of the the meaning of the Bank Holding Company Act, proposal would not eliminate any significant existing competition, foreclose significant poten­ has applied for the Board’s approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to tial competition or have any undue adverse acquire 80 per cent or more of the voting effect on any bank in the area involved. shares of Manufacturers and Mechanics Bank Considerations relating to the financial and of Kansas City, Kansas City, Missouri (“Bank”). managerial resources and future prospects of Notice of receipt of the application has been Applicant and its present subsidiaries are re­ given in accordance with § 3(b) of the Act, and garded as satisfactory and consistent with ap­ the time for filing comments and views has ex­ proval of the application. Although the prospects pired. The Board has considered the application of Bank are regarded as satisfactory, they should and all comments received in the light of the be enhanced as a result of consummation of the factors set forth in § 3(c) of the Act (12 U.S.C. proposal. Although the record indicates that the 1842(c)) and finds that: major banking needs of the area are being met, Applicant is the fourth largest bank holding Bank’s low loan-to-deposit ratio indicates that company and the fourth largest banking organiza­ Bank has not been aggressive in meeting the tion in Missouri by virtue of its control of nine needs of the low income residents of its service banks with $503.5 million in deposits, repre­ area. In addition to broadening Bank’s lending senting 4.4 per cent of the total commercial bank program, Applicant proposes to offer new services deposits in the State. (All banking data are as of which, although available at Applicant’s lead bank, June 30, 1971, adjusted to reflect holding com­ have not heretofore been offered at Bank’s loca­ pany formations and acquisitions approved by the tion. These changes will make Bank more respon­ Board through April 30, 1972.) Applicant’s lead sive to the particular needs of its area. Thus, con­ bank, City National Bank and Trust Company siderations relating to convenience and needs (“City National”) ($369.2 million deposits), is lend some weight toward approval of the applica­ located in downtown Kansas City and, with tion. It is the Board’s judgment that the proposed control of 10.4 per cent of the total deposits in transaction is in the public interest and that the commercial banks in the Kansas City Standard application should be approved. Metropolitan Statistical Area (“SMSA”), is On the basis of the record, the application is the second largest bank operating in the Kansas approved for the reasons summarized above. City banking market. The transaction shall not be consummated Bank ($16.8 million deposits), located in (a) before the thirtieth calendar day following Kansas City approximately four miles east of the effective date of this Order or (b) later than Applicant’s lead bank, is one of the smaller three months after the effective date of this banks operating in the Kansas City market, Order, unless such period is extended for good holding only about .5 per cent of total deposits in cause by the Board, or by the Federal Reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN c JULY 1972 Bank of Kansas City pursuant to delegated author­ banks, nor does it appear likely that such com­ ity. petition will develop in the future in light of the By order of the Board of Governors, effective distances separating Bank from Applicant’s sub­ June 2, 1972. sidiaries, the presence of numerous intervening banks, and the State’s restrictive branching law. Voting for this action: Vice Chairman Robertson and Consummation of this proposal would not elim­ Governors Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Chairman Burns. inate any meaningful existing competition nor (Signed) Tynan Smith, foreclose significant potential competition. Affiliation with Applicant would increase the [seal] Secretary of the Board. lending capability of Bank through loan participa­ tion arrangements with Applicant’s present subsidi­ UNITED TENNESSEE BANCSHARES ary banks. Moreover, Bank would be able to CORPORATION, expand the services it now offers to the community MEMPHIS, TENNESSEE to include trust services, data processing, and long-term mortgage financing. Considerations Order Approving Acquisition of Bank relating to the convenience and needs of the com­ United Tennessee Bancshares Corporation, munity to be served lend some weight for approval. Memphis, Tennessee, a bank holding company Considerations relating to financial and mana­ within the meaning of the Bank Holding Company gerial resources and future prospects as they relate Act, has applied for the Board’s approval under to Applicant, its subsidiary banks, and Bank are § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to regarded as consistent with approval, in view of acquire 80 per cent or more of the voting shares of Applicant’s commitment to raise $5 million in First Trust and Savings Bank, Paris, Tennessee additional capital. (“Bank”). It is the Board’s judgment that consummation Notice of the application, affording opportunity of the proposed acquisition would be in the public for interested persons to submit comments and interest and that the application should be ap­ views, has been given in accordance with § 3(b) proved. of the Act. The time for filing comments and views On the basis of the record, the application is has expired, and none have been timely received. approved for the reasons summarized above. The Board has considered the application in light The transaction shall not be consummated (a) of the factors set forth in § 3(c) of the Act (12 before the thirtieth calendar day following the U.S.C. 1842(c)). effective date of this Order or (b) later than three Applicant controls four banks with aggregate months after the effective date of this Order, unless deposits of $388 million, representing 4.98 per such period is extended for good cause by the cent of the total commercial bank deposits in the Board, or by the Federal Reserve Bank of Atlanta State, and is the sixth largest banking organization pursuant to delegated authority. and bank holding company in Tennessee. (All By order of the Board of Governors, effective banking data are as of June 30, 1971, and reflect June 5, 1972. bank holding company formations and acquisitions Voting for this action: Chairman Burns and Govenors approved by the Board through May 31, 1972.) Robertson, Mitchell, Daane, and Sheehan. Absent and not Upon acquisition of Bank ($14.2 million in de­ voting: Governor Brimmer. posits) Applicant’s share of deposits in the State (Signed) Tynan Smith, would increase by .2 percentage points, and its [seal] Secretary of the Board. present ranking would remain unchanged. Bank, the second largest of four banks serving the Henry County banking market, controls approximately AFFILIATED BANKSHARES OF 35.1 per cent of commercial bank deposits in COLORADO, INC., that market. BOULDER, COLORADO Applicant’s acquisition of Bank would con­ Order Approving Acquisition of Bank stitute its initial entry into the area. Applicant’s closest subsidiary banking office to Bank is located Affiliated Bankshares of Colorado, Inc., Bould­ in Nashville, approximately 100 miles east of er, Colorado, a bank holding company within Bank. No competition exisits between Bank and the meaning of the Bank Holding Company this office or any of Applicant’s other subsidiary Act, has applied for the Board’s approval under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 657 § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to greatly strengthened institution. Applicant has acquire 80 per cent or more of the voting shares already provided two officers and three directors of University National Bank of Fort Collins, Fort to Bank who have helped in turning Bank into a Collins, Colorado (“Bank”). more viable instituion. Considerations relating to Notice of the application, affording opportunity these factors lend strong weight for approval of for interested persons to submit comments and this application. Considerations relating to the views, has been given in accordance with § 3(b) convenience and needs of the community to be of the Act. The time for filing comments and served lend weight toward approval of the acquisi­ views has expired, and the Board has considered tion since Applicant would be able to assist Bank the application and all comments received in light in meeting the increased demand for real estate of the factors set forth in § 3(c) of the Act (12 loans through Applicant’s subsidiary, Piedmont U.S.C. 1842(c)). Mortgage and Investment Company. Applicant Applicant controls 13 banks with deposits of would also provide data processing services and about $333 million, representing approximately increased agricultural loan expertise to Bank. 6.6 per cent of total deposits of commercial banks It is the Board’s judgment that consummation of in Colorado, and is the fourth largest banking the proposed acquisition would be in the public organization in the State.1 Acquisition of Bank interest and the application should be approved. (deposits of $7 million) would increase Applicant’s On the basis of the record, the application is share of deposits in the State by about one-tenth approved for the reasons summarized above. of 1 percentage point and would not alter its The transaction shall not be consummated (a) ranking. Consummation of the transaction would before the thirtieth calendar day following the not significantly increase concentration of banking effective date of this Order or (b) later than three resources in Colorado. months after the effective date of this Order, unless None of Applicant’s present subsidiary banks such period is extended for good cause by the compete with Bank to any significant extent. Two Board, or by the Federal Reserve Bank of Kansas of these subsidiary banks are, however, located City pursuant to delegated authority. in Loveland, 12 miles south of Fort Collins, both By order of the Board of Governors, effective of which towns are in Larimer County. The June 6, 1972. Loveland and Fort Collins areas are becoming Voting for this action: Chairman Burns and Governors economically integrated and, thus, there would Robertson, Daane, and Sheehan. Voting against this action: normally be some potential for competition to Governor Mitchell. Absent and not voting: Governor Brimmer. develop between the institutions. This possibility Board action was taken before Governor Bucher was a Board Member. is, however, minimized by the present condition of Bank and the likelihood that absent this or a (Signed) Tynan Smith, similar proposal it would fail to develop into a [seal] Secretary of the Board. significant competitor in Larimer County. Acquisi­ tion of Bank would add only 3.7 percentage THE JACOBUS COMPANY AND INLAND points to Applicant’s control of deposits in FINANCIAL CORPORATION, Larimer County and would leave it as the third MILWAUKEE, WISCONSIN largest banking organization in the area. Con­ summation of the proposal would not have a Order Approving Acquisition of Bank significantly adverse effect on present or potential The Jacobus Company (“Jacobus”) and its competition in Larimer County. majority owned subsidiary Inland Financial Considerations relating to the financial condi­ Corporation (“Inland”), both of Milwaukee, tion, managerial resources, and prospects of Wisconsin, bank holding companies within the Applicant and its subsidiary banks are satisfactory. meaning of the Bank Holding Company Act, Bank, on the other hand, has shown a poor have applied for the Board’s approval under operating record and a history of frequent manage­ § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ment turnover. Affiliation with Applicant would acquire 56.3 per cent or more of the voting shares alleviate these problems and would lead to a of Heritage Bank of Milwaukee, Milwaukee, Wisconsin (“Bank”). The acquisition will be made by Inland and as a result Jacobus will banking data are as of December 31, 1971, and reflect indirectly acquire voting shares of Bank. holding company formations and acquisitions approved by the Board through April 30, 1972. Notice of the applications, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN □ JULY 1972 for interested persons to submit comments and On the basis of the record and in view of the views, has been given in accordance with § 3(b) aforesaid commitment, the applications are ap­ of the Act. The time for filing comments and views proved for the reasons summarized above. The has expired, and the Board has considered the transaction shall not be consummated (a) before applications and all comments received in light of the thirtieth calendar day following the effective the factors set forth in § 3(c) of the Act (12 U.S.C. date of this Order or (b) later than three months 1842(c)). after the effective date of this Order, unless such Applicants control two banks with aggregate period is extended for good cause by the Board, deposits of approximately $46 million, representing or by the Federal Reserve Bank of Chicago pur­ .5 per cent of the deposits in commercial banks suant to the delegated authority. in Wisconsin.1 Acquisition of Bank (deposits of By order of the Board of Governors, effective $23 million) would increase Applicants’ per­ June 12, 1972. centage share of deposits in the State by only .2 Voting for this action: Chairman Burns and Governors percentage points and would not result in a sig­ Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent nificant increase in concentration of banking and not voting: Governor Daane. resources in Wisconsin. (Signed) Tynan Smith, Both of Applicants’ banking subsidiaries are [seal] Secretary of the Board. located in the Milwaukee area. However, there is little existing competition between these subsidi­ aries and Bank, and there is little likelihood of UNITED BANKS OF COLORADO, INC., substantial future competition developing between DENVER, COLORADO Bank and Applicants’ subsidiaries due to the large Order Approving Acquisition of Bank number of intervening banks and Wisconsin’s branching laws. Even after the acquisition of United Banks of Colorado, Inc., Denver, Bank, Applicants would control less than 2 per Colorado, a bank holding company within the cent of area deposits and would be the eighth meaning of the Bank Holding Company Act, has largest banking organization in the Milwaukee applied for the Board’s approval under § 3(a)(3) area. Competitive consequences of the transaction of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 are considered by the Board to be consistent with per cent or more of the voting shares of the Mont­ approval of the applications. rose National Bank, Montrose, Colorado Considerations relating to the financial condi­ (“Bank”). tion, managerial resources and prospects of Notice of the application, affording opportunity Applicants, their subsidiary banks, and Bank for interested persons to submit comments and are generally satisfactory and consistent with views, has been given in accordance with § 3(b) approval of the applications. Considerations of the Act. The time for filing comments and relating to the convenience and needs of the views has expired, and none have been timely community to be served also are consistent with received. The Board has considered the application approval of the applications. in the light of the factors set forth in § 3(c) of the As noted in the Board’s Order dated February Act (12 U.S.C. 1842(c)) and finds that: 25, 1972 (1972 Federal Reserve Bulletin 306), Applicant owns 11 banks controlling aggregate approving Applicants’ acquisition of the voting deposits of about $692 million and is the second shares of Heritage Bank-Mayfair, Wauwatosa, largest banking organization in Colorado, con­ Wisconsin, Jacobus has filed a declaration, pur­ trolling 15.0 per cent of the deposits in com­ suant to § 4(c)(12) of the Bank Holding Company mercial banks in the State.1 Acquisition of Bank Act, that it will cease to be a bank holding company (approximately $7 million in deposits) by Appli­ by January 1, 1981. In addition, as the Board cant would increase its percentage share of de­ stated in the earlier Order, Jacobus has committed posits by less than two-tenths of 1 percentage itself to divest itself of its interest in Inland within point, would not change Applicant’s ranking 90 days of the passage of enabling legislation among banking organizations in Colorado, and permitting distribution of Inland’s shares to would not result in a significant increase in the con­ Jacobus shareholders on a tax free basis. centration of banking resources in the State. banking data are as of June 30, 1971, and reflect holding banking data are as of June 30, 1971, and reflect holding company formations and acquisitions approved by the Board company formations and acquisitions approved by the Board through May 31, 1972. through May 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 659 There is no meaningful existing competition 1842(a)(3)) to acquire 100 per cent of the voting between Bank and any of Applicant’s banking shares (less directors’ qualifying shares) of Jasper subsidiaries. The Rocky Mountains separate County Savings Bank, Newton, Iowa (“Newton Montrose from 10 of Applicant’s 11 subsidiaries, Bank”); 80 per cent or more of the voting shares and serve as an effective barrier to the develop­ of First Federal State Bank, Des Moines, Iowa ment of any substantial future competition be­ (“Des Moines Bank”); 88.5 per cent or more of tween Bank and these subsidiaries. Applicant’s the voting shares of State Bank and Trust, Council only subsidiary located on the same side of the Bluffs, Iowa (“Council Bluffs Bank”); 81.7 Rocky Mountains as Montrose is over 60 miles per cent of the voting shares of The Clay County away and, due to the existence of intervening National Bank of Spencer, Spencer, Iowa (“Spen­ banks and Colorado’s branching laws, there is cer Bank”); 50.6 per cent or more of the voting little likelihood that substantial competition will shares of Camanche State Bank, Camanche, develop between it and Bank. The Board con­ Iowa (“Camanche Bank”); and 51 per cent or cludes that competitive considerations are con­ more of the voting shares of The Citizens Na­ sistent with approval of the application. tional Bank of Boone, Boone, Iowa (“Boone Applicant proposes to raise equity capital in the Bank”). near future, and considerations relating to the finan­ Notice of the applications, affording oppor­ cial conditions, managerial resources, and pros­ tunity for interested persons to submit comments pects of Applicant, its subsidiary banks, and Bank and views, has been given in accordance with § are satisfactory and consistent with approval of the 3(b) of the Act. The time for filing comments and application. Considerations relating to the con­ views has expired, and the Board has considered venience and needs of the community to be served the applications and all comments received in light lend some weight toward approval of the acqui­ of the factors set forth in § 3(c) of the Act (12 sition since affiliation with Applicant will enable U.S.C. 1842(c)). Bank to pursue an expansionary policy likely to On the basis of the record, the applications are be needed for the accommodation of the anticipated approved for the reasons set forth in the Board’s increase in economic activity in the Montrose area. Statement of this date.1 The transactions shall not It is the Board’s judgment that consummation of be consummated (a) before the thirtieth calendar the proposed acquisition would be in the public day following the effective date of this Order or interest and that the application should be approved. (b) later than three months after the effective date On the basis of the record, the application is of this Order, unless such period is extended for approved for the reasons summarized above. The good cause by the Board, or by the Federal transaction shall not be consummated (a) before Reserve Bank of Chicago pursuant to delegated the thirtieth calendar day following the effective authority. date of this Order or (b) later than three months By order of the Board of Governors, effective after the effective date of this Order, unless such June 12, 1972. period is extended for good cause by the Board, Voting for this action: Chairman Burns and Governors or by the Federal Reserve Bank of Kansas City Mitchell, Sheehan, and Bucher. Voting against this action: pursuant to delegated authority. Governors Robertson and Brimmer. Absent and not voting: By order of the Board of Governors, effective Governor Daane. June 12, 1972. (Signed) Tynan Smith, [seal] Secretary of the Board. Voting for this action: Chairman Burns and Governors Rob­ ertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. Order Denying Acquisition of Bank (Signed) Tynan Smith, Hawkeye Bancorporation, Des Moines, Iowa, [seal] Secretary of the Board. has applied for the Board’s approval under § 3(a)(3) of the Bank Holding Company Act (12 HAWKE YE B ANCORPOR ATION, U.S.C. 1842(a)(3)) to acquire 100 per cent of the DES MOINES, IOWA voting shares (less directors’ qualifying shares) Order Approving Acquisition of Banks Hawkeye Bincorporation, Des Moines, Iowa, *The Statement also reflects Board action of this date deny­ ing an application by Hawkeye Bancorporation to acquire all has applied for the Board’s approval under §3(a) of the outstanding voting shares of Kellogg Savings Bank, (3) of the Bank Holding Company Act (12 U.S.C. Kellogg, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN c JULY 1972 of Kellogg Savings Bank, Kellogg, Iowa (“Kel­ merger of two of the holding companies into logg Bank”). Applicant and by the acquisition of the voting Notice of the application, affording opportunity shares of the remaining three entities. In each case, for interested persons to submit comments and the shares of the banks involved will be acquired views, has been given in accordance with § 3(b) by Applicant. Controlling shares of the remaining of the Act. The time for filing comments and two banks would be effected by direct acquisition views has expired, and the Board has considered by Applicant. the application and all comments received in While each of the applications has been sep­ light of the factors set forth in § 3(c) of the Act (12 arately considered and the proposed acquisition U.S.C. 1842(c)). of Kellogg Bank is subject to a separate Board On the basis of the record, the application is Order, because of certain common facts and cir­ denied for the reasons set forth in the Board’s cumstances this Statement contains the Board’s Statement of this date. findings and conclusions with respect to all the By order of the Board of Governors, effective applications. June 12, 1972. Statutory considerations. Applicant presently controls six banks with aggregate deposits of about Voting for this action: Chairman Burns and Governors Rob­ $107 million, and is the seventh largest banking ertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. organization and fourth largest bank holding (Signed) Tynan Smith, company in Iowa with 1.6 per cent of commercial [seal] Secretary of the Board. bank deposits in the State. Total deposits of New­ ton Bank are $30.0 million; Kellogg Bank, $8.0 Statement million; Des Moines Bank, $23.4 million; Council Bluffs Bank, $30.1 million; Spencer Bank, $14.1 Nature of transaction. Hawkeye Bancorporamillion; Camanche Bank, $2.4 million; and Boone tion, Des Moines, Iowa, a registered bank hold­ Bank, $17.8 million. Consummation of the seven ing company, has applied to the Board of Gov­ proposed acquisitions would more than double ernors, pursuant to § 3(a)(3) of the Bank Holding the volume of total deposits controlled by Ap­ Company Act (12 U.S.C. 1842(a)(3)), for prior plicant, and Applicant would become the third larg­ approval of the acquisition of 100 per cent of the est banking organization and bank holding com­ voting shares (less directors’ qualifying shares) pany in the State.2 of Jasper County Savings Bank, Newton, Iowa Newton Bank and Kellogg Bank are the largest (“Newton Bank”), and of Kellogg Savings Bank, and fourth largest of nine banks competing in the Kellogg, Iowa (“Kellogg Bank”); 80 per cent or Jasper County banking market, with 38.5 per cent more of the voting shares of First Federal State Bank, Des Moines, Iowa (“Des Moines Bank”); and 10.3 per cent, respectively, of total market deposits. Newton Bank, by far the largest bank 88.5 per cent or more of the voting shares of State in the market, serves the county’s only sizable Bank and Trust, Council Bluffs, Iowa (“Council city and the headquarters for the Maytag Com­ Bluffs Bank”); 81.7 per cent of the voting shares pany, the city’s primary employer; nine miles to of The Clay County National Bank of Spencer, the east is Kellogg Bank, with no intervening bank­ Spencer, Iowa (“Spencer Bank”); 50.6 per cent ing alternatives between it and Newton Bank. or more of the voting shares of Camanche State These two proposed subsidiaries were owned Bank, Camanche, Iowa (“Camanche Bank”); and operated by the Maytag family and their and 51 per cent or more of the voting shares of The interests, and have been affiliated for over 45 Citizens National Bank of Boone, Boone, Iowa years. In commenting on these proposals, the (“Boone Bank”). Control of five of the proposed Department of Justice stated the view that “while subsidiary banks is currently held by separate the acquisition of either [Newton] Bank or Kellogg entities organized and controlled by Applicant’s Bank by Hawkeye would not appear to present President and/or his associates.1 Consummation of serious competitive effects, its acquisition of both these five proposals will be accomplished through banks would have an adverse effect on competi­ tion.” The Board concurs in the Department’s Newton Banshares, Inc., Newton; Kellogg Banshares, Kellogg; State Company, Council Bluffs; Spencer Banshares, Inc., Red Oak; and Camanche Banshares, Camanche, are entities located in Iowa that control, respectively, Newton 2A11 banking data are as of June 30, 1971, and reflect bank Bank, Kellogg Bank, Council Bluffs Bank, Spencer Bank, and holding company formations and acquisitions approved by the Camanche Bank. Board through May 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 661 position. In view of the long-standing affiliation bank in that market, controlling 2.2 per cent of of the two banks it is obvious that acquisition of market deposits. Applicant’s present subsidiary, both banks by Applicant would not eliminate First National Bank of Clinton, the largest bank in significant existing competition; and if these banks the market with 28 per cent of market deposits, is were to become controlled by separate competing located only six miles from Comanche Bank. Con­ banking institutions it could be expected that sidering the number of banks competing in the rele­ competition would develop between them, there vant market, the nonaggressive nature of Bank’s being no other competing commercial banks in the operations, and its relatively small size, it seems intervening area, and the record indicating that unlikely the two banks would ever become mean­ these banks’ primary service areas do overlap. ingful competitors. The minimal existing and po­ Thus, acquisition of only one bank would tend tential competition that would be eliminated con­ to have a procompetitive effect in the relevant stitutes but a slightly adverse consideration. market by severing the present affiliation, with the Spencer Bank and Boone Bank are the largest resulting creation, reasonably anticipated, of an banks in their relevant banking markets holding, additional banking alternative for area residents. respectively, 28 per cent of Clay County banking It appears to the Board that acquisition of Kellogg market deposits, and 37 per cent of Boone County Bank would foreclose existing competition between banking market deposits. In the case of Spencer that Bank and a present subsidiary bank of Ap­ Bank, there are seven other competing banking plicant’s in Pella, which is located only 18 miles institutions; the second and third largest of which southwest of Kellogg Bank’s Sully branch. The control, respectively, 24 per cent and 20.7 per Board views the acquisition of Kellogg alone as cent of total market deposits. Boone Bank competes having more serious anticompetitive consequences with three other banks, the second largest of which than would the acquisition of only Newton Bank. is only slightly smaller than Boone, controlling Accordingly, the Board concludes that acquisition 33.4 per cent of market deposits. In each instance of Kellogg Bank, with its likely anticompetitive no existing competition would be eliminated by consequences relating principally to future com­ these acquisitions as the nearest present or proposed petition, should be denied. subsidiary of Applicant’s is situated about 70 miles Des Moines Bank is the seventh largest of 18 northwest at Rock Rapids in the case of Spencer banking organizations competing in the Des Moines Bank, and 45 miles south at Des Moines in the banking market, approximated by the Des Moines case of Boone. Neither acquisition would appear SMSA, and controls 2.5 per cent of deposits in to have an adverse effect on potential competition. that market. Council Bluffs Bank is also the sev­ Applicant proposes to make Boone Bank a more enth largest banking organization in its market, meaningful competitor by offering a wider variety and competes with 34 banking organizations in of services which should have a procompetitive the Omaha-Council Bluffs banking market, ap­ effect on the market. proximated by Douglas and Sharpy Counties, On the basis of the record before it, the Board Nebraska, and Pottawattamie County, Iowa. In concludes that the competitive effects of the pro­ its market, Council Bluffs Bank holds 2.4 per cent posed acquisitions, with the exception of Kellogg of market deposits. The proposed acquisitions, Bank, are consistent with approval of the applica­ representing Applicant’s initial entry into these tions. markets, offer no apparent anticompetitive conse­ Certain aspects of Applicant’s management his­ quences, but rather, are likely to have procompeti­ tory have been, in the Board’s judgment, less than tive effects, since the proposed subsidiaries will satisfactory. However, on the basis of changes then be able to compete more effectively with the already made and the further assurances given by substantially larger banking organizations now op­ Applicant with respect to future management prac­ erating in the relevant markets (Northwest Ban- tices and policies, factors relating to Applicant’s corporation and Central National Bank and Trust management are now regarded as generally sat­ in the Des Moines market, and Omaha National isfactory. Management of the present and proposed Bank and Northwest Bancorporation in the Omaha- subsidiary banks appears reasonably satisfactory, Council Bluffs market). Neither of these banks and the prospects of Applicant, its subsidiaries, presently competes with existing or proposed sub­ and Banks, appear favorable. sidiaries of Hawkeye. Applicant’s present financial condition is con­ Camanche Bank, located in the Clinton County sidered generally satisfactory; however, the pro­ banking market, is the tenth-ranking and smallest posed acquisitions entail the assumption by Appli­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 FEDERAL RESERVE BULLETIN c JULY 1972 cant of additional debt. In recognition of this situa­ acquisitions of Newton Bank, Des Moines Bank, tion, Applicant has committed itself to a public Council Bluffs Bank, Spencer Bank, Camanche sale of stock designed to raise $5 million. It is pro­ Bank, and Boone Bank would be in the public posed by Applicant that the proceeds from this interest and these applications should be approved. stock sale will be used to retire some of Applicant’s The proposed acquisition of Kellogg Bank would existing short-term debt and finance most of the not be in the public interest and that application acquisition cost of the proposed subsidiaries. The should be denied. remainder of Applicant’s short-term debt will be refinanced through the sale of debentures within BARNETT BANKS OF FLORIDA, INC., three years. Applicant’s present subsidiary banks JACKSONVILLE, FLORIDA are in satisfactory condition and their future pros­ pects appear favorable. The financial condition of Order Approving Acquisition of Bank the proposed subsidiary banks is considered gen­ Barnett Banks of Florida, Inc., Jacksonville, erally satisfactory; however, in the case of the pro­ Florida, a bank holding company within the mean­ posed Des Moines bank, Applicant intends to pro­ ing of the Bank Holding Company Act, has applied vide additional capital in the form of capital stock for the Board’s approval under § 3(a)(3) of the to keep pace with that bank’s rapid deposit growth. Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent Considerations relating to the banking factors or more of the voting shares of Barnett Bank of are generally consistent with approval of the appli­ North Jacksonville, Jacksonville, Florida, a pro­ cations. To the extent that consummation of the posed new bank (“Bank”). proposed acquisitions will facilitate the raising of Notice of the application, affording opportunity additional capital—thus improving Applicant’s for interested persons to submit comments and financial condition and increasing its ability to views, has been given in accordance with § 3(b) of assist its subsidiary banks with respect to future the Act. The time for filing comments and views capital needs, this consideration lends some weight has expired and the Board has considered the appli­ toward approval of the applications. cation and all comments received in light of the Consummation of the proposed acquisitions factors set forth in § 3(c) of the Act (12 U.S.C. will permit higher loan limits through loan partici­ 1842(c)). pation arrangements. In addition, according to Applicant, the third largest bank holding com­ Applicant’s proposals, each of the communities pany in Florida, controls 32 banks with aggregate involved will be afforded computer, trust, and in­ deposits of approximately $969 million, repre­ vestment management services; and the proposed senting 6.58 per cent of total commercial bank subsidiary banks will have available, where deposits in the State. (Banking data are as of June needed, assistance in marketing bond issues, and 30, 1971, and reflect holding company formations in management succession and training. Contem­ and acquisitions approved by the Board through plated improvements in auditing procedures and May 30, 1972.) Bank is a proposed new bank and practices of the proposed subsidiaries, and stand­ its acquisition by Applicant would not increase ardization of forms, procedures, and systems, the concentration of banking resources nor have should benefit the banks and increase their effec­ any significant adverse effect on any competing tiveness in serving their communities. Based on bank in the relevant areas. the foregoing, it is the Board’s view that consider­ There are 30 banks operating in the relevant mar­ ations of convenience and needs lend some weight ket of Duval County, representing 13 banking for approval of the applications, and that, with the organizations. Six of these are bank holding com­ exception of the Kellogg Bank proposal, any anti­ panies that control approximately 85 per cent of competitive consequences inherent in the proposed county deposits. Applicant, as the county’s third acquisitions are clearly outweighed by the probable largest bank holding company, controls approxi­ effect of the transactions in meeting the conven­ mately 21 per cent of market deposits. ience and needs of the communities to be served. Applicant’s nearest subsidiary banking office is The likely adverse competitive consequences that located nine miles from Bank’s proposed site. Less would attend the Kellogg Bank acquisition are not than 1 per cent of Applicant’s loans and deposits outweighed by benefits to the community to be are derived from Bank’s proposed service area in served. the northeastern section of Duval County. Appli­ Conclusion. On the basis of all relevant facts cant’s acquisition of the proposed new bank would before it, the Board concludes that the proposed not eliminate any existing competition, nor does Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 663 it appear that it would substantially lessen future mont, Clermont, Florida (“Bank”). competition or impose a barrier to future entry. Notice of the application, affording opportunity Competitive considerations are consistent with for interested persons to submit comments and approval of the application. views, has been given in accordance with § 3(b) of The managerial resources and financial condition the Act. The time for filing comments and views of Applicant and its subsidiary banks are generally has expired, and the Board has considered the appli­ satisfactory, and Applicant has entered into an ex­ cation and all comments received in light of the fac­ tensive capital improvement program which will tors set forth in § 3 (c) of the Act (12 U.S.C. provide additional capital to subsidiary banks as 1842(c)). the need arises. Bank, as a proposed new bank, Applicant, the tenth largest of twenty-three has no operating history, but its projected earnings multibank holding companies in Florida, controls and growth under Applicant’s control appear favor­ seven banks with aggregate deposits of $316.8 mil­ able. Banking factors are consistent with approval lion, representing 2.15 per cent of the total deposits of the application. in commercial banks in Florida.1 Applicant’s There are no banking services available at the acquisition of Bank (deposits of $12.4 million) present time in the proposed bank’s immediate would increase Applicant’s share of Statewide service area. Bank would serve as a convenient deposits by only .08 percentage points. source of banking for the residents of this expanding Bank is the fourth largest of five banks in the area, and, accordingly, considerations relating to South Lake County banking market, controlling the convenience and needs of the communities to 14.35 per cent of deposits in that market. No be served lend some weight toward approval of the existing nor significant potential competition application. It is the Board’s judgment that the between Bank and any of Applicant’s existing proposed transaction would be in the public in­ subsidiary banks would be eliminated upon con­ terest and that the application should be approved. summation of this proposal because of Florida’s On the basis of the record, the application is restrictive branching laws and the distance of 32 approved for the reasons summarized above. The miles which separate Bank and Applicant’s transaction shall not be consummated (a) before nearest subsidiary banking office. On the basis of the thirtieth calendar day following the effective the record, the Board considers that consummation date of this Order or (b) later than three months of the proposal would not adversely affect com­ after that date, and (c) Barnett Bank of North Jack­ petition in any relevant area nor would any sonville, Jacksonville, Florida, shall be opened competing bank be adversely affected. for business not later than six months after the The financial and managerial resources and effective date of this Order. Each of the periods future prospects of Applicant, its subsidiary banks described in (b) and (c) may be extended for good and Bank are generally satisfactory and consistent cause by the Board, or by the Federal Reserve Bank with approval. In addition, it is expected that of Atlanta pursuant to delegated authority. Bank’s affiliation with Applicant will help Bank By order of the Board of Governors, effective develop a more stable and prudent management. June 13, 1972. Applicant will incur substantial debt in acquiring Bank. However, Applicant has assured the Board Voting for this action: Chairman Burns and Governors Rob­ that it will promptly retire such debt from the ertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. proceeds of a public offering of securities to be issued shortly. In light of Applicant’s assurances, (Signed) Tynan Smith, the Board does not consider the debt involved [seal] Secretary of the Board. significant enough to bar approval of this proposal. Considerations relating to the convenience and EXCHANGE BANCORPORATION, INC., needs of the community to be served lend weight TAMPA, FLORIDA toward approval of the application, since Appli­ Order Approving Acquisition of Bank cant proposes to offer through Bank, trust, travel and international banking services that are not Exchange Bancorporation, Inc., Tampa, Flor­ presently available in Bank’s area. It is the Board’s ida, a bank holding company within the meaning judgment that the proposed acquisition would be of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 per cent or 1 All banking data are as of June 30, 1971, adjusted to more of the voting shares of Citizens Bank of Cler­ reflect holding company formations and acquisitions to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 FEDERAL RESERVE BULLETIN c JULY 1972 in the public interest and that the application with an estimated population of 20,000, and would should be approved. be competing in the Duval County banking market, On the basis of the record, the application is in which market Applicant controls 31.3 per cent approved for the reasons summarized above. of deposits and is the largest of 13 banking organi­ The transaction shall not be consummated (a) zations in that market. Applicant presently operates before the thirtieth calendar day following the six banks in the Duval County banking market, effective date of this Order or (b) later than three two of which, Southside Atlantic Bank and The months after the effective date of this Order, unless Atlantic Bank of Jacksonville, compete in the such period is extended for good cause by the primary service area of the proposed Bank. How­ Board, or by the Federal Reserve Bank of Atlanta ever, Southside Bank is located seven miles west pursuant to delegated authority. of Bank and is separated from Bank by numerous By order of the Board of Governors, effective intervening banks. Jacksonville Bank, Applicant’s June 16,1972. lead subsidiary bank, is located ten miles west of Bank and is separated from it by the St. John’s Voting for this action: Chairman Burns and Governors River. The most convenient and accessible routes Robertson, Mitchell, Daane, and Sheehan. Absent and not voting: Governors Brimmer and Bucher. between Jacksonville Bank and Bank are by means (Signed) Tynan Sm ith, of toll bridges. [seal] Secretary of the Board. Applicant’s share of deposits in the relevant market has declined over the past ten years. The ATLANTIC B ANCORPORATION, second and third largest bank holding companies JACKSONVILLE, FLORIDA in the market control, respectively, 23.5 and 20.8 per cent of commercial bank deposits there. It Order Approving Acquisition of Bank appears that consummation of the proposal herein Atlantic Bancorporation, Jacksonville, Florida, would not alter adversely the competitive situation a bank holding company within the meaning of nor the concentration of resources in the market. the Bank Holding Company Act, has applied for Nor is there any evidence that Applicant’s pro­ the Board’s approval under § 3(a)(3) of the Act posal is an attempt to pre-empt a site before (12 U.S.C. 1842(a)(3)) to acquire not less than there is a need for a bank. 70 per cent of the voting shares of University The financial and managerial resources and the Atlantic Bank, Jacksonville, Florida (“Bank”), future prospects of Applicant and its subsidiary a proposed new bank. banks are regarded as generally satisfactory. Notice of the application, affording opportunity Prospects for Bank appear favorable. Bank would for interested persons to submit comments and be able to provide a local alternative banking views, has been given in accordance with § 3(b) source within the proposed service area, which of the Act. The time for filing comments and views is experiencing rapid growth, and is presently has expired, and none has been timely received. being served by banks located outside of the The Board has considered the application in light of service area. Considerations relating to the con­ the factors set forth in § 3(c) of the Act (12 U.S.C. venience and needs of the area to be served lend 1842(c)). slight support to, and are consistent with, approval Applicant controls 20 banks with aggregate of the application. It is the Board’s judgment deposits of about $708 million, representing 4.8 that the proposed acquisition would be in the public per cent of the total commercial bank deposits interest and that the application should be approved. in the State, and is the fifth largest banking organi­ On the basis of the record, the application is zation and bank holding company in Florida.1 approved for the reasons summarized above. Since Bank is a proposed new bank, no existing The transaction shall not be consummated (a) competition would be eliminated nor would con­ before the thirtieth calendar day following the centration be increased in any relevant area. effective date of this Order or (b) later than three Bank would be located to the east of downtown months after that date, and (c) University Atlantic Jacksonville, in a recently developing trade area Bank, Jacksonville, Florida, shall be opened for business not later than six months after the effective date of this Order. Each of the periods described in (b) and (c) may be extended for good 1A11 banking data are as of June 30, 1971, and reflect bank cause by the Board, or by the Federal Reserve holding company formations and acquisitions approved by the Board through May 31, 1972. Bank of Atlanta pursuant to delegated authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 665 By order of the Board of Governors, effective Illinois would facilitate a reduction of the debt June 16, 1972. since the cost of raising additional capital through the intrastate sale of equity securities should be Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, and Sheehan. Absent and not substantially less than if the holding company voting: Governors Brimmer and Bucher. remained an Iowa corporation. The prospect of an early reduction of the holding company’s debt (Signed) Tynan Smith, [seal] Secretary of the Board. lends some weight toward approval of the appli­ cation. KEWANEE INVESTING COMPANY, No immediate benefits to convenience and KEWANEE, ILLINOIS needs of the community to be served will result from the consummation of Applicant’s proposal. Order Approving Action to Become a However, the improved financial condition of Bank Holding Company Applicant which is projected after the infusion of additional capital and its ability as an Illinois Kewanee Investing Company, Kewanee, Illi­ corporation to raise capital more easily for the nois, has applied for the Board’s approval under Bank if the need should arise should enhance § 3(a)(1) of the Bank Holding Company Act Bank’s financial condition, and improve its ability (12 U.S.C. 1842(a)(1)) to become a bank holding to serve the banking needs of its area. Considera­ company through the acquisition of 60.04 per tions relating to convenience and needs are cent of the voting shares of Kewanee National regarded as consistent with approval of the appli­ Bank, Kewanee, Illinois (“Bank”). cation. It is the Board’s judgment that the applica­ Notice of receipt of the application has been tion should be approved. given in accordance with § 3(b) of the Act, and On the basis of the record, the application is the time for filing comments and views has approved for the reasons summarized above. expired. The Board has considered the application The transaction shall not be consummated (a) and all comments received in the light of the before the thirtieth calendar day following the factors set forth in § 3(c) of the Act (12 U.S.C. effective date of this Order or (b) later than three 1842(c)). months after the effective date of this Order, unless Applicant is a newly organized corporation such period is extended for good cause by the formed for the purpose of acquiring the assets Board, or by the Federal Reserve Bank of Chicago and assuming the liabilities of Kewanee Investing pursuant to delegated authority. Company, an Iowa corporation that is a registered By order of the Board of Governors, effective bank holding company presently holding 60.04 June 16, 1972. per cent of the voting shares of Bank ($5 million of deposits as of June 30, 1971), the smaller of Voting for this action: Chairman Burns and Governors two banks in the city of Kewanee. The proposed Robertson, Mitchell, Daane, and Sheehan. Absent and not voting: Governors Brimmer and Bucher. transaction is essentially a corporate reorganiza­ tion in which the ownership of Bank will be trans­ (Signed) Tynan Smith, ferred from an Iowa corporation to an Illinois [seal] Secretary of the Board. corporation with the same stockholders. Applicant states that the reason for the reorganization is to THE ROYAL TRUST COMPANY, facilitate the obtaining of additional capital at MONTREAL, QUEBEC, CANADA minimum cost. Consummation of the proposal Order Approving Formation of Bank would not alter existing banking competition nor Holding Company significantly affect potential competition; nor does it appear that there would be any adverse The Royal Trust Company, Montreal, Quebec, effects on any bank in the relevant area. Canada, has applied for the Board’s approval As a result of consummation of the proposal, under § 3(a)(1) of the Bank Holding Company Applicant will assume a large debt now held by the Act (12 U.S.C. 1842(a)(1)) of formation of a Iowa corporation. The size of the debt to be bank holding company through acquisition of transferred to Applicant is of serious concern to the 100 per cent of the voting shares (less directors’ Board. However, Applicant states that it proposes qualifying shares) of the successor by merger to to raise additional capital through a stock issue; Inter National Bank of Miami, Miami, Florida and it appears that the change in the holding (“Bank”). The bank into which Bank is to be company’s state of incorporation to the State of merged has no significance except as a means to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 FEDERAL RESERVE BULLETIN □ JULY 1972 facilitate the acquisition of voting shares of accorded equal treatment. Although the banking Bank. Accordingly, the proposed acquisition needs of the Dade County community are being of shares of the successor organization is treated served adequately by existing institutions, con­ herein as the proposed acquisition of the shares summation of the proposed transaction should of Bank. have a beneficial effect on the convenience and Notice of the application, affording opportunity needs of that community in that Applicant intends for interested persons to submit comments and to utilize its trust expertise in the establishment views, has been given in accordance with § 3(b) of a trust department in Bank and to improve the of the Act. The time for filing comments and views services offered by Bank’s international depart­ has expired, and none has been timely received. ment. This aspect of the proposal lends some The Board has considered the application in light weight toward approval of the application. It of the factors set forth in § 3(c) of the Act (12 is the Board’s judgment that the transaction would U.S.C. 1842(c)). be in the public interest and that the application Applicant with total assets of $1.6 billion1 is should be approved. the largest trust company in Canada, also operating On the basis of the record, the application is through subsidiaries and other interests, in Great approved for the reasons summarized above. The Britain, Ireland, the Channel Islands, the Bahamas, transaction shall not be consummated (a) before Bermuda, Cayman Islands, and New Hebrides. the thirtieth calendar day following the effective Applicant engages principally in trust and real date of this Order or (b) later than three months after estate financing activities outside of the United the effective date of this Order, unless such States. Consummation of the proposed transaction period is extended for good cause by the Board, therefore would not eliminate any existing com­ or by the Federal Reserve Bank of Atlanta pur­ petition in the United States. suant to delegated authority. Bank, with deposits of close to $43 million,2 is By order of the Board of Governors, effective the nineteenth largest of the 75 banks located in June 16, 1972. Dade County, Florida, the relevant banking market, Voting for this action: Chairman Burns and Governors and holds 1.26 per cent of the total amount of Robertson, Mitchell, Daane, and Sheehan. Absent and not deposits in commercial banks located in that voting: Governors Brimmer and Bucher. market. Since Applicant is not considered to be a (Signed) Tynan Smith, likely potential entrant into the Dade County [seal] Secretary of the Board. banking market other than by the proposed acquisition of Bank, consummation of that CAPITAL NATIONAL CORPORATION, transaction is unlikely to have an adverse effect HOUSTON, TEXAS upon potential competition. Rather, it appears that Order Approving Acquisition consummation of the proposal may promote of B ank Shares competition in that an affiliation of Bank with Capital National Corporation, Houston, Texas, a Applicant should strengthen Bank’s ability to bank holding company within the meaning of the compete in a market, a substantial proportion of Bank Holding Company Act, has applied for the which is controlled by the largest bank holding Board’s approval under § 3(a)(3) of the Act (12 company in Florida. U.S.C. 1842(a)(3)) to acquire a new issue of voting The financial and managerial resources and shares of Northwest National Bank, Houston, future prospects of Applicant and Bank are con- Texas (“Bank”), which would then constitute sistant with approval of the application, especially 25 per cent of the shares outstanding. in view of the fact that the proposal has been Notice of the application, affording opportunity structured in such a manner that, upon con­ for interested persons to submit comments and summation of the transaction, Bank’s capital and views, has been given in accordance with § 3(b) surplus will be increased by $240,000 and out­ of the Act. The time for filing comments and views standing convertible debentures in the sum of has expired, and the Board has considered the $400,000 will be either converted to capital stock application and all comments received in light of or redeemed. All shareholders of Bank are to be the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). ^his datum is as of December 31, 1971 and is stated in Applicant presently controls one bank, Capital terms of Canadian dollars. National Bank, Houston, Texas (“CNB”), with 2A11 banking data are as of June 30, 1971 unless otherwise deposits of approximately $127 million, repreindicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 667 senting 0.5 per cent of total deposits in commercial earnings and deposit growth over the past four banks in Texas.1 Applicant proposes to acquire years, it appears that Applicant’s projections for re­ all 16,667 of a new issue of shares of Bank ($10 tirement of its total debt in four years are feasible. million in deposits) which would equal 25 per The financial and managerial resources of Bank cent of Bank’s stock after issuance. Present stock­ are regarded as satisfactory. Prospects for both holders of Bank will not participate in the offering Applicant and Bank appear favorable. Considera­ to increase Bank’s stock; however, they were tions relating to banking factors are consistent notified by a proxy statement and voted approval with approval of the application. of the proposed sale of shares to Applicant. Inas­ The newly issued shares of Bank’s stock which much as the proposal involves purchasing newly Applicant proposed to acquire will augment issued shares which will augment Bank’s capital, Bank’s capital and enable it to finance new and the absence of an offer to buy all outstanding permanent banking quarters, thus making it pos­ shares of Bank is not regarded as inequitable to sible for Bank to increase its staff and provide other shareholders of Bank. The acquisition of enlarged parking facilities for its customers. In voting shares of Bank would not significantly addition, Bank’s lending limit will be increased, increase Applicant’s share of total deposits in the and Applicant proposed to introduce trust and relevant area or within the State, and would not international services for customers of Bank. adversely affect other area banks. Considerations relating to the convenience and A group of Applicant’s officers and principal needs of the relevant areas are consistent with shareholders sponsored the organization of Bank and lend weight toward approval of the applica­ in 1969. Bank serves the Houston Standard tion. It is the Board’s judgment that consumma­ Metropolitan Statistical Area (SMSA) as a small tion of the proposed transaction would be in the retail bank where it ranks as the eighty-fifth public interest and that the application should be largest of the market’s 145 banks. Bank holds .2 approved. per cent of total deposits in this area. Applicant’s On the basis of the record, the application is subsidiary, CNB, also serves the Houston SMSA as approved for the reasons summarized above. The the sixth largest bank, holding 2.1 per cent of transaction shall not be consummated (a) before total area deposits. The two banks are eight miles the thirtieth calendar day following the effective apart, and only .3 per cent of CNB deposits date of this Order or (b) later than three months and loans originate in the area served by Bank, after the effective date of this Order, unless such and no meaningful present competition would be period is extended for good cause by the Board, or eliminated by this proposal. It also appears that by the Federal Reserve Bank of Dallas pursuant no substantial amount of future competition to delegated authority. would be foreclosed by the acquisition because of By order of the Board of Governors, effective State laws which prohibit branching and in view June 20, 1972. of the 21 banking offices which intervene the Voting for this action: Chairman Burns and Governors Rob­ densely populated area between Bank and CNB. ertson, Mitchell, Daane, and Sheehan. Absent and not voting: Competitive considerations are consistent with Governors Brimmer and Bucher. approval of the application. (Signed) Tynan Smith, Applicant’s management is regarded as capable. [seal] Secretary of the Board. The Board is concerned that Applicant’s level of indebtedness is relatively high. However, miti­ PAN AMERICAN BANCSHARES, INC., gating this consideration is the fact that Applicant MIAMI, FLORIDA has outstanding $2 million of subordinated convertible debentures that possess certain features Order Approving Acquisition of Bank which could result in their conversion to equity Pan American Bancshares, Inc., Miami, Flor­ as early as November 1972. In addition, Applicant ida, a bank holding company within the meaning has offered for sale a parcel of real estate, the of the Bank Holding Company Act, has applied proceeds of which could be used to substantially for the Board’s approval under § 3(a)(3) of the reduce Applicant’s outstanding debt. In view of Act (12 U.S.C. 1842(a)(3)) to acquire 50 per cent these considerations and in view of CNB’s or more of the voting shares of Capital National Bank of Tampa, Tampa, Florida (“Bank”). 1A11 banking data are as of June 30, 1971, adjusted to reflect Notice of the application, affording opportunity holding company acquisitions and formations approved by the Board through April 30, 1972. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN c JULY 1972 views, has been given in accordance with § 3(b) of Bank’s management. Both of these features should the Act. The time for filing comments and views enhance Bank’s prospects, and thus, lend some has expired, and the Board has considered the appli­ weight toward approval of the application. In addi­ cation and all comments received in light of the tion to a stronger financial condition, affiliation factors set forth in § 3(c) of the Act (12 U.S.C. with Applicant would enable Bank to offer in­ 1842(c)). creased services such as larger credit lines, inter­ Applicant controls eight subsidiary banks with national banking services, and trust services. $299.6 million in deposits, representing 2.0 per These considerations are consistent with approval cent of the total commercial bank deposits in Flor­ of the application. It is the Board’s judgment ida, and ranks as the State’s twelfth largest bank that the proposed transaction would be in the pub­ holding company. (All banking data are as of June lic interest, and that the application should be 30, 1971, adjusted to reflect holding company for­ approved. mations and acquisitions approved by the Board On the basis of the record, the application is through May 31, 1972.) As a result of consumma­ approved for the reasons summarized above. The tion of the proposal herein, Applicant’s share of transaction shall not be consummated (a) before deposits would be increased to approximately 2.3 the thirtieth calendar day following the effective per cent of the total commercial bank deposits in date of this Order or (b) later than three months the State, and Applicant would become the State’s after the effective date of this Order, unless such tenth largest bank holding company. period is extended for good cause by the Board, or by the Federal Reserve Bank of Atlanta pur­ Bank ($40 million deposits) is the fifth largest suant to delegated authority. of twenty-eight banks located in the Hillsborough By order of the Board of Governors, effective County market, holding about 4 per cent of market June 21, 1972. deposits. This proposal represents Applicant’s initial entry in the Hillsborough County market Voting for this action: Chairman Burns and Governors Rob­ and, inasmuch as Applicant’s subsidiary located ertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. closest to Bank is more than 45 miles south, would (Signed) Tynan Smith, not result in the elimination of any significant ex­ [seal] Secretary of the Board. isting competition. Nor is it likely that consumma­ tion of the proposal would have any significant UNITED BANK CORPORATION OF effects on potential competition between Appli­ NEW YORK, ALBANY, NEW YORK cant’s present subsidiaries and Bank, in light of the large number of banks in the area and the re­ Order Approving Acquisition of Bank strictive branching law of Florida. On the other hand, as a result of this proposal, Bank’s competi­ United Bank Corporation of New York, Albany, tive position in relation to the larger banking organ­ New York, a bank holding company within the izations already represented in the relevant mar­ meaning of the Bank Holding Company Act, has ket should be enhanced. It does not appear, there­ applied for the board’s approval under § 3(a)(3) of fore, that significant competition would be elim­ the Act (12 U.S.C. 1842(a)(3)) to acquire all of inated or significant potential competition fore­ the voting shares (less directors’ qualifying shares) closed by consummation of Applicant’s proposal, of the successor by merger to Highland National or that there would be undue adverse effects on any Bank of Newburgh, Newburgh, New York bank in the area involved. (“Bank”). The bank into which Bank is to be The financial and managerial resources and merged has no significance except as a means to prospects of Applicant are regarded as satisfactory facilitate the acquisition of the voting shares of and consistent with approval of the application. Bank. Accordingly, the proposed acquisition of While the same conclusion applies generally to shares of the successor organization is treated Applicant’s subsidiaries, three of the subsidiary herein as the proposed acquisition of shares of banks have capital ratios lower than the Board Bank. considers desirable. Applicant states that it intends Notice of the application, affording opportunity to augment the capital at each of these banks and, for interested persons to submit comments and with the injection of additional capital, the pros­ views, has been given in accordance with § 3(b) of pects of these subsidiaries should be improved. the Act. The time for filing comments and views Applicant also proposes to inject additional capital has expired, and the Board has considered the in Bank, as well as to strengthen and broaden application and all comments received in light Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 669 of the factors set forth in § 3(c) of the Act (12 organizations) and may encourage the opening of U.S.C. 1842(c)). new branches in the Third District, which would Applicant, the ninth largest of eighteen multi­ have a procompetitive effect. In view of continued bank holding companies and fifteenth largest bank­ Statewide expansion by large New York Citying organization in New York, controls two sub­ based bank holding companies, expansion by sidiary banks—State Bank of Albany, Albany moderate-sized upstate banking organizations such ($686 million of deposits) and Liberty National as Applicant should reduce the likelihood of the Bank and Trust Company, Buffalo ($460 million State’s banking assets being dominated by a few of deposits). Their aggregate deposits of approx­ banking organizations. imately $1.1 billion represent 1.2 per cent of the On the basis of the record before it, the Board total commercial bank deposits in the State. (All concludes that consummation of the proposed banking data are as of December 31, 1971, and re­ acquisition would not have an adverse effect on flect holding company formations and acquisitions competition in any relevant area. The financial approved through March 31, 1972.) Applicant’s and managerial resources and prospects of Appli­ two subsidiary banks operate 66 offices in New cant, its subsidiaries, and Bank appear satisfactory. York Banking Districts Four and Nine. Acquisi­ It appears that the banking needs of the relevant tion of Bank ($55.4 million of deposits) would re­ communities are being adequately served by ex­ sult in Applicant’s initial entry into the Third Bank­ isting banking organizations. However, Applicant ing District, where Bank is located. Applicant’s proposes, among other services, to assist Bank in share of commercial bank deposits in the State offering advisory and trust services and expanded would not increase significantly and its rank in the lending services through participation loans with State would be unchanged. Applicant’s present subsidiaries. Thus, considera­ Bank, the sixth largest of twenty-nine banks tions relating to the convenience and needs of the operating in the Mid-Hudson banking market,1 communities involved are consistent with approval. operates three offices located in and adjacent to It is the Board’s judgment that the proposed trans­ Newburgh, New York, and controls 6.5 per cent action would be in the public interest, and that the of total deposits of commercial banks in the market. application should be approved. Applicant’s subsidiary bank nearest to Bank is On the basis of the record, the application is located in Germantown, New York, approximately approved for the reasons summarized above. The 55 miles north of Bank. It appears that there is no transaction shall not be consummated (a) before significant competition between Bank and either the thirtieth calendar day following the effective of Applicant’s subsidiary banks. Moreover, the date of this Order or (b) later than three months prospect for such competition developing in the after the effective date of this Order, unless such future appears unlikely in the light of the facts pre­ period is extended for good cause by the Board, or sented, notably the distances separating Bank by the Federal Reserve Bank of New York pur­ from Applicant’s subsidiaries, the number of suant to delegated authority. banks located in the intervening areas and the re­ By order of the Board of Governors, effective strictive provisions of New York State banking June 26, 1972. laws relating to branch banking and home office Voting for this action: Vice Chairman Robertson and Gov­ protection. Although Applicant could enter the ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Third Banking District de novo, this prospect Absent and not voting: Chairman Burns. appears unlikely in part because of the limitations (Signed) M ichael A. Greenspan, on branching by newly chartered banks. [seal] Assistant Secretary of the Board. It appears that consummation of Applicant’s proposal will not foreclose entry by other banking FIRST UNITED BANCORPORATION, INC., organizations into the relevant market since a num­ FORT WORTH, TEXAS ber of other independent banks, in addition to Bank, are located in that market. Affiliation with Appli­ Order Approving Acquisition of Bank cant may enable Bank to compete more aggressive­ First United Bancorporation, Inc., Fort Worth, ly with the larger banks in the market (three of Texas, a bank holding company within the meaning which are affiliated with bank holding company of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 per cent Comprised of Dutchess, Putnam, and Ulster Counties, plus the Newburgh area of Orange County. of the voting shares (less directors’ qualifying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN c JULY 1972 shares) of the successor by merger to The First voting shares of Security Bank, and 24.3 per cent National Bank of Fort Worth, Fort Worth, Texas of the voting shares of Seminary Bank. Upon con­ (“First Bank”). The bank into which First Bank summation of the proposed acquisitions Applicant is to be merged has no significance except as a would control 51 per cent of the voting shares of means to facilitate the acquisition of the voting Security Bank and 48.3 per cent of the voting shares of First Bank. Accordingly, the proposed shares of Seminary Bank in addition to virtually acquisition of the shares of the successor organ­ all voting shares of First Bank. ization is treated herein as a proposed acquisition All of the banks, shares of which are held by of the shares of First Bank. Applicant has filed Applicant or First Bank, operate in the Fort Worth separate applications for approval to acquire 27 banking market. These banks were organized and per cent of the voting shares of Security State Bank, chartered between 1950 and 1969 by individuals Fort Worth, Texas (“Security Bank”) and 24.3 associated with First Bank, and have maintained per cent of the voting shares of Seminary State close working relationships with First Bank since Bank, Fort Worth, Texas; which are presently held their formation. By virtue of these relationships, by First Bank in its pension trust. Applicant and its lead bank in fact control not only Notice of the applications, affording opportu­ University, but also Security and Seminary banks. nity for interested persons to submit comments and First National is a regional bank with a substantial views, has been given in accordance with § 3(b) amount of nonlocal regional and correspondent of the Act. The time for filing comments and views banking business. At its office in the center of the has expired, and the Board has considered the City it competes with two similar Fort Worth and applications and all comments received in light of five Dallas banks for larger business, governmental, the factors set forth in § 3(c) of the Act (12 U.S.C. and personal accounts. The other banks involved 1842(c)) and finds that: in the application, all neighborhood institutions, Applicant, which has been a trusteed affiliate would undoubtedly be branches of First National of First Bank since 1929, became a regulated bank if branching were permitted under Texas law. holding company as a result of the 1970 Amend­ These offices are of primary importance to serve the ments to the Act. Applicant controls 36.9 per cent convenience of individuals and businesses in their of University State Bank ($32.3 million in deposits immediate vicinity. This is evident from the char­ representing . 1 per cent of total deposits of com­ acter of their deposit and loan business. For the mercial banks in the State). (All banking data are great majority of these customers, convenience to as of June 30, 1971, and reflect holding company home or work is the dominant factor in their bank­ formations and acquisitions through March 31, ing choices. Thus it is only in a marginal sense 1972.) Additionally, Applicant presently holds that these neighborhood offices can be said to com­ between 24 and 24.9 per cent of voting shares of pete with the downtown Fort Worth institutions. Security Bank ($14.2 million in deposits), Sem­ This was the Board’s finding in its Statement con­ inary Bank ($13.1 million in deposits), Gateway cerning the application of First at Orlando Cor­ National Bank ($12.5 million in deposits) and poration, Orlando, Florida, to become a bank Great Southwest National Bank ($4.0 million in holding company (1967 Federal Reserve B u lletin deposits), all located in the Fort Worth banking 235). market. Upon consummation of the proposal here­ Since the institutions whose affiliations are here in, Applicant would directly control four subsid­ sought to be consolidated with a holding company iary banks with aggregate deposits of $498 million are comparatively small and are widely separated representing approximately 28 per cent of total from each other, the anticompetitive aspects of the deposits of commercial banks in the Fort Worth proposal are more than offset by the service advan­ area, 1.9 per cent of deposits of commercial banks tages growing out of the greater efficiencies that in the State, and would retain control of 24.9 per are characteristic of a holding company affiliation. cent of the voting shares of Gateway National Due to the fact that the instant proposal involves Bank and Great Southwest National Bank. a restructuring of present affiliations, the Board First Bank ($438 million in deposits), the second finds that the proposal would have little effect on largest of 44 banks in the Fort Worth banking mar­ the banking convenience and needs of the commu­ ket controls approximately 25 per cent of deposits nities to be served or on the financial and managerial of commercial banks in that area. First Bank has resources and future prospects of the banks in­ been a bank holding company since 1966 and con­ volved. However, these factors are satisfactory trols, through a pension trust, 27 per cent of the and consistent with approval. It is the Board’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 671 judgment that consummation of the proposed June 30, 1971, and reflect bank holding company transactions is in the public interest and the appli­ acquisitions approved through May 1, 1972.) Con­ cations should be approved. summation of the proposed acquisition of Bank On the basis of the record, the applications are (deposits of approximately $33 million) would approved for the reasons summarized above. The increase Applicant’s share of commercial bank transactions shall not be consummated (a) before deposits in the State by .12 percentage points and the thirtieth calendar day following the effective Applicant’s rank in the State would be unchanged. date of this Order or (b) later than three months The proposed acquisition represents Applicant’s after the effective date of this Order, unless such initial entry into the Dallas banking market.2 period is extended for good cause by the Board, Bank, located in the city of Denton approxi­ or by the Federal Reserve Bank of Dallas pur­ mately 35 miles from downtown Dallas, Texas, suant to delegated authority. ranks 21st among 117 banks operating in the By order of the Board of Governors, effective Dallas banking market and controls approximately June 26, 1972. .6 per cent of total deposits of commercial banks in that market. Bank, with control of 24 per cent Voting for this action: Vice Chairman Robertson and Gov­ of deposits of commercial banks in Denton County, ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns. is the second largest of four banks located in (Signed) M ichael A. Greenspan, Denton, Texas. Applicant’s subsidiary bank located nearest to [seal] Assistant Secretary of the Board. Bank is at Longview, Texas, approximately 165 SOUTHWEST BANCSHARES, INC., miles southeast of Bank. Continental National HOUSTON, TEXAS Bank of Fort Worth, which Applicant proposes to acquire, is located 37 miles southwest of Bank Order Approving Acquisition of Bank in the adjacent Fort Worth banking market. It appears that no meaningful competition exists Southwest Bancshares, Inc., Houston, Texas, between Bank and any of Applicant’s subsidiary a bank holding company within the meaning of the banks and there exists no meaningful competition Bank Holding Company Act, has applied for the between Continental National Bank of Fort Worth Board’s approval under § 3(a)(3) of the Act (12 and Bank. No meaningful competition is expected U.S.C. 1842(a)(3)) to acquire 51 per cent or more to develop in the future in the light of the facts of the voting shares of The Denton County Na­ presented, notably the distances separating Bank tional Bank of Denton, Denton, Texas (“Bank”). from Applicant’s subsidiary banks, the number Notice of the application, affording opportunity of banks located in the intervening areas and the for interested persons to submit comments and Texas statutes prohibiting branch banking. It views, has been given in accordance with § 3(b) seems unlikely that Applicant would enter the of the Act. The time for filing comments and views Dallas market de novo, or through the acquisi­ has expired and the Board has considered the appli­ tion of a bank in that market smaller than the one cation and all comments received in light of the proposed for acquisition. It appears that consum­ factors set forth in § 3(c) of the Act (12 U.S.C. mation of Applicant’s proposal would neither 1842(c)). eliminate any meaningful existing competition Applicant, the fifth largest banking organization nor foreclose significant potential competition. and third largest multibank holding company in Rather, affiliation with Applicant may enable Texas has five subsidiary banks with aggregate Bank to compete more effectively with the larger deposits of $717 million representing approxi­ banking organizations located in Dallas and mately 2.7 per cent of total deposits of commercial thereby have a procompetitive effect in the banks in the State.1 (All banking data are as of relevant market. Applicant controls substantially all the stock of three Texas 2In addition to the present application, Applicant has filed banks: Bank of the Southwest, Houston; Village National Bank, applications with the Board to acquire: The First National Houston; and First National Bank of Longview, Longview, Bank of Brownsville, The First National Bank at Port Arthur Texas. Applicant holds approximately 38 per cent of the voting and the Bank of Woodlake, National Association, Houston, shares of South Park National Bank, Houston, and has minority a proposed new bank, all in Texas. interests of between 4.20 and 20 per cent in four other Houston banks whose aggregate deposits as of June 30, 1971, were cations to acquire Long Point National Bank of Houston, Hous­ approximately $117 million. Applicant’s minority interest of ton, Texas ($29 million of deposits) and Continental National 24.7 per cent in Kilgore National Bank, Kilgore, Texas, is ex­ Bank of Fort Worth, Fort Worth, Texas ($182.2 million of pected to be liquidated. The Board approved Applicant’s appli- deposits) on April 11, 1972, and May 24, 1972, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 FEDERAL RESERVE BULLETIN c JULY 1972 On the basis of the record before it, the Board of the Bank Holding Company Act of 1956 (12 concludes that consummation of the proposed U.S.C. 1842(a)(3)). A companion Order of April acquisition would not have an adverse effect on 11, 1972, granted approval to Applicant for the competition in any relevant area. acquisition of shares of Beaumont State Bank, The financial and managerial resources and Beaumont, Texas (“State Bank”). prospects of Applicant, its subsidiaries and Bank Pursuant to § 262.3(f)(6) of the Board’s Rules, appear satisfactory. It seems that the major banking Applicant requests reconsideration of its original needs of the area are being adequately served at proposal which sought the acquisition of 100 the present time. However, the prospects for per cent of the voting shares (less directors’ qual­ continued economic expansion in the cities of ifying shares) of American Bank and, in conjunc­ Dallas and Fort Worth and surrounding areas tion therewith, the acquisition of 37 per cent of are good, resulting in part from a new Dallas/Fort the shares of State Bank. A trusteed affiliate of Worth Regional Airport currently under construc­ American Bank, through its trustees, holds 37 tion. Such growth should increase demands for per cent of the outstanding voting shares of State banking services. Affiliation with Applicant should Bank. Information contained in the original appli­ enable Bank more effectively to meet such cations failed to inform the Board that the proposed increased demands. In addition, to the extent acquisition of shares of State Bank was contingent that affiliation with Applicant will enable bank to upon, and sought only in connection with, an provide services presently available only through acquisition of American Bank. In its Request the area’s largest banking organizations located in for Reconsideration, Applicant states that no Dallas, convenience and needs aspects of the attempt has been made to determine the separate proposal are consistent with approval and lend asset value of shares of State Bank held by trustees some weight thereto. for the benefit of shareholders of American Bank; On the basis of the record, the application is that no representatives of State Bank were ap­ approved for the reasons summarized above. proached in connection with or made parties to The transaction shall not be consummated (a) the acquisition agreement between Texas Com­ before the thirtieth calendar day following the merce and American Bank; and that Texas effective date of this Order or (b) later than three Commerce has been advised by directors of both months after the effective date of this Order, State and American Banks and by the trustees unless such period is extended for good cause holding shares of State Bank that they will neither by the Board, or by the Federal Reserve Bank consider nor cooperate with any efforts towards of Dallas pursuant to delegated authority. an acquisition by Texas Commerce of State Bank By order of the Board of Governors, effective separate from acquisition of American Bank. June 29, 1972. In its earlier consideration of Applicant’s pro­ posals, the Board treated the separate application Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Brimmer, Sheehan, and Bucher. to acquire shares of State Bank as a transaction Absent and not voting: Chairman Burns. having some prospect of consummation inde­ (Signed) M ichael A. Greenspan, pendently from acquisition of shares of American [seal] Assistant Secretary of the Board. Bank. The Board finds that reconsideration of Applicant’s proposed acquisitions is warranted TEXAS COMMERCE BANCSHARES, INC., on the basis of facts presented. Accordingly, HOUSTON, TEXAS the Request for Reconsideration is hereby approved. Order Granting Request for Applicant states that it has not applied for, Reconsideration and does not seek, an acquisition of shares of Beaumont State Bank, Beaumont, Texas, apart Texas Commerce Bancshares, Inc., Houston, from an acquisition of shares of American National Texas, has requested reconsideration of the Order Bank of Beaumont. Accordingly, the Board’s of April 11, 1972, whereby the Board of Gov­ Order of April 11, 1972, which granted to Appli­ ernors denied the application of Texas Commerce cant approval of the acquisition of shares of Bancshares, Inc., for prior approval for the Beaumont State Bank is vacated. acquisition of 100 per cent of the voting shares (less directors’ qualifying shares) of American sjc National Bank of Beaumont, Beaumont, Texas By order of the Board of Governors, effective (“American Bank”), pursuant to section 3(a)(3) June 12, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 673 Voting for this action: Chairman Burns and Governors Applicant’s original proposal was denied by Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent the Board on the grounds that the acquisition debt and not voting: Governor Daane. involved presented adverse circumstances bearing (Signed) Tynan Smith, on the financial condition and prospects of Appli­ [seal] Secretary of the Board. cant and Bank which were not outweighed by any other factors of record. Under the present ORDER UNDER SECTIONS 3 AND 4 OF proposal Applicant would still incur acquisition BANK HOLDING COMPANY ACT debt of $175,000, however, due to increased CARLTON AGENCY, INC., capital of the Bank from retained earnings this CARLTON, MINNESOTA would amount to approximately 58 per cent of Applicant’s equity rather than 66 per cent. The Order Approving Formation of Bank balance of the debt, $100,000, while still being Holding Company and Acquisition of held by the principal, will no longer be secured First National Bank Insurance Agency directly or indirectly by the stock of Applicant Carlton Agency, Inc., Carlton, Minnesota, has since the principal has pledged assets to the lending submitted an amended proposal for the Board’s institution with sufficient income to amortize the approval under § 3(a)(1) of the Bank Holding instalments on the debt as they come due over Company Act (12 U.S.C. 1842(a)(1)) to become a ten-year period. Further, due to greater than a bank holding company through the acquisition projected earnings for 1971 and consequent higher of 100 per cent of the voting shares (less directors’ projected earnings in the future, significantly less qualifying shares) of Carlton National Bank, of Bank’s earnings will be needed to amortize Carlton, Minnesota (“Bank”). Applicant’s origi­ Applicant’s debt than the 60 per cent present in nal application was denied by Board Order dated the first proposal. The Board concludes that con­ January 27, 1972 (1972 Federal Reserve Bul­ siderations relating to the acquisition debt involved letin 168). in the present proposal are consistent with approval At the same time, Applicant has resubmitted, of the application. as part of its amended proposal, its application The convenience and needs of the community for the Board’s approval under § 4(c)(8) of the involved are consistent with approval of the appli­ Act and § 225.4(b)(2) of the Board’s Regulation cation, as there will result no change in Bank’s Y to engage in certain permissible insurance present operations. Accordingly, it is the Board’s agency activities through the acquisition of certain judgment that the transaction would be in the assets of First National Bank Insurance Agency, public interest, and that the § 3 application should Carlton, Minnesota (“Agency”). be approved. Notice of receipt of these applications was Agency is the only general insurance agency in published in the Federal Register on April 21, Carlton (1970 population 884) and is located on 1972 (37 Federal Register 7950). Time for filing the premises of Bank. The operation by a bank comments and views has expired, and none have holding company of a general insurance agency been timely received. The Board has considered in a community with a population of less than 5,000 the applications in light of the factors set forth is an activity that the Board has previously deter­ in § 3(c) of the Act, and the considerations speci­ mined to be closely related to banking (12 CFR fied in § 4(c)(8) of the Act. 225.4(a)(9)(iii)). Upon acquisition of Bank ($6.3 million in There is no evidence in the record that the pro­ deposits), Applicant would control about 0.1 posal would result in any undue concentration of per cent of the commercial bank deposits in the resources, unfair competition, conflicts of interest, State.1 As the proposed transaction represents a unsound banking practices or other adverse effects transfer of an individual’s ownership of Bank on the public interest. The acquisition would assure into a presently nonoperating holding company, continuation of the only source of general insurance consummation would not eliminate any existing in the town of Carlton and would assist Applicant or potential competition and would not result in in servicing its acquisition debt. Based upon the any increase in the concentration of banking re­ foregoing and other considerations reflected in the sources in any relevant area. Bank’s management record, the Board has determined that the balance and financial condition are consistent with approval of the public interest factors the Board is required and its capital is adequate. to consider under § 4(c)(8) regarding the perform­ 1 All banking data are as of December 31, 1971. ance by Applicant of Agency’s business is favor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN c JULY 1972 able and that the application should be approved. views has expired, and none have been received. On the basis of the record, the applications to Smolkin offers its services principally to home acquire Bank and Agency are approved for the and apartment builders, land developers, and fi­ reasons summarized above. The acquisition of nancial institutions, providing advice to its cus­ Bank shall not be consummated (a) before the thir­ tomers on an individual client basis. The advice tieth calendar day following the effective date of relates to specific real estate development projects this Order, or (b) later than three months after the of each customer and is provided on a continuing effective date of this Order, unless such period is basis as each project develops from raw land to fin­ extended for good cause by the Board or by the ished product. Smolkin holds planning conferences Federal Reserve Bank of Minneapolis pursuant to with land and apartment developers; determines delegated authority. The determination as to a timetable for the work to be done; evaluates the Agency’s activities is subject to the Board’s au­ sites for special marketing or development consid­ thority to require reports by, and make examina­ erations and general suitability; surveys designs, tions of, holding companies and their subsidiaries pricing, and financing of competing developments; and to require such modification or termination of makes sales projections; recommends price ranges, the activities of a holding company or any of its house types, square footages, and basic and dis­ subsidiaries as the Board finds necessary to assure cretionary features; provides projected income and compliance with the provisions and purposes of cash flow statements; suggests merchandising the Act and the Board’s regulations and orders themes and advertising programs; provides item­ issued thereunder, or to prevent evasion thereof. ized budgets and concept sketches illustrating By order of the Board of Governors, effective floor plans and site plans; and furnishes sketches June 16, 1972. of logotypes, signs, newspaper ads, brochures, Voting for this action: Chairman Burns and Governors Rob­ and sales displays and material for advertising. ertson, Mitchell, Daane, and Sheehan. Absent and not voting: Smolkin provides similar services to financial in­ Governors Brimmer and Bucher. stitutions for the selection and development of (Signed) Tynan Smith, branch locations. [seal] Secretary of the Board. Applicant contends that Smolkin’s activities constitute the provision of investment and finan­ ORDERS UNDER SECTION 4(c)(8) OF BANK cial advice and “furnishing economic or finan­ HOLDING COMPANY ACT cial information,” as authorized by the Board in FIRST COMMERCE CORPORATION, section 225.4(a)(5) of Regulation Y. However, NEW ORLEANS, LOUISIANA a footnote to that Regulation expressly indicates that acting as a “management consultant” was not Order Denying Acquisition of regarded by the Board as within the scope of that W. R. Smolkin & Associates, Inc. activity and that the question as to whether to pro­ First Commerce Corporation, New Orleans, pose expanding section 225.4(a)(5) to include Louisiana, a bank holding company within the management consulting was under consideration meaning of the Bank Holding Company Act, has by the Board. The issues therefore presented by the applied for the Board’s approval, under section instant application are (1) whether Smolkin’s activ­ 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s ities, on the one hand, are within the scope of sec­ Regulation Y, to acquire all of the voting shares of tion 225.4(a)(5) or, on the other hand, constitute W. R. Smolkin & Associates, Inc., New Orleans, management consulting, and, if the latter, (2) Louisiana (“Smolkin”), a company that performs whether management consulting should be deter­ site location studies, feasibility analyses, market­ mined by the Board to be “so closely related to ing and land use advice, and other real estate con­ banking or managing or controlling banks as to be nected services for home and apartment builders, a proper incident thereto.” land developers, and financial institutions.1 After a review of Smolkin’s activities, the Board Notice of the application, affording opportunity has concluded that those activities are beyond the for interested persons to submit comments and scope of section 225.4(a)(5) and, in fact, consti­ views has been duly published (36 Federal Reg­ tute management consulting. ister 24095). The time for filing comments and Management consulting, in view of the Board, includes but is not limited to, the provision of analysis or advice as to a firm’s (i) purchasing 1 Smolkin also engages in these activities through its whollyowned subsidiary, Smolkin-Siegel Corporation. operations, such as inventory control, sources of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 675 supply, and cost minimization subject to con­ would not be promoted in that the industry is straints; (ii) production operations, such as quality already highly competitive with no significant control, work measurement, product methods, entry barriers. Further, any increase in conveni­ scheduling shifts, time and motion studies, and ence to bank customers or gains in efficiency would safety standards; (iii) marketing operations, such appear to be achievable only through a potential as market testing, advertising programs, market loss of independence and objectivity on the part development, packaging, and brand development; of the consulting affiliate. (iv) planning operations, such as demand and cost According weight to all the public benefits projections, plant location, program planning, which may be expected to be produced by the corporate acquisitions and mergers, and determin­ affiliation of a management consulting firm with ation of long-term and short-term goals; (v) per­ a bank holding company, the Board concludes sonnel operations, such as recruitment, training, that those benefits do not outweigh the potential incentive programs, employee compensation, and adverse effects that may derive from such an affilia­ management-personnel relations; (vi) internal tion. The most obvious and serious of these possible operations, such as taxes, corporate organization, adverse effects are the conflicts of interests in budgeting systems, budget control, data processing which bank holding company subsidiaries and systems evaluation, and efficiency evaluation; or their management consulting affiliate could become (vii) research operations, such as product develop­ involved. Firms often utilize the services of a ment, basic research, and product design and management consultant to secure expert objective innovation. As described above, Smolkin engages advice which, for one reason or another, is not in the provision of a wide range of information readily available within the firm’s management. or advice to home and apartment builders, land Frequently, however, firms, even though already developers, and financial institutions on an in possession of necessary expertise, turn to a individual client basis. The information is tailored management consultant for the objective, inde­ to the particular needs of those clients. Although pendent point of view which the consultant pur­ the Board recognizes that Smolkin does not furnish ports to offer. The possibility exists that the objec­ all of the services normally furnished by large tivity, which its clients expect from a management nationwide general management consultants, consultant, would become colored by the fact Smolkin’s services are of the type that are cus­ that it is associated with potential suppliers of tomarily furnished by management consulting other services to those clients. If a client were to firms. Accordingly, before the Board may approve borrow from a bank affiliated with a management the application it must first determine that “man­ consultant, and subsequently incurred financial agement consulting” meets the “closely related” difficulty, the management consultant’s advice test set forth in section 4(c)(8) of the Act. could become influenced more by its desire to Banks, in providing correspondent services, may ensure repayment of the loan to its affiliate, than engage in certain management consulting activities. by any objective evaluation of the best interests However, in determining whether an activity to of the client. Further, where the loan was sought be performed by a nonbanking affiliate is so closely as part of a financing plan designed by the man­ related to banking or managing or controlling agement consultant, the affiliated bank, in order to banks as to be a proper incident thereto, the Board protect the reputation of its consultant, might has been directed by Congress in section 4(c)(8) refrain from taking action to obtain repayment of the Act to consider whether performance of in circumstances where it ordinarily would do so. the activity “by an affiliate of a holding company In addition, an affiliated management consultant can reasonably be expected to produce benefits might be motivated to tailor its marketing advice to the public, such as greater convenience, in­ to a client in such a manner as to protect its own creased competition, or gains in efficiency, that affiliates from competition from the client. Gen­ outweigh possible adverse effects, such as undue erally, ethical considerations should protect against concentration of resources, decreased or unfair the possible conflict of interest situations noted competition, conflicts' of interests, or unsound above. Nevertheless, in determining whether to banking practices.” permit an activity under section 4(c)(8) the Board There appear to be no significant public benefits is required to consider possibilities, not probabili­ realizable from an affiliation of a management ties. The Board does, however, wish to note that consultant with a bank holding company. Com­ the foregoing description of possible adverse petition in the management consulting industry effects that might derive from the affiliation of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN c JULY 1972 management consultant with a bank holding com­ companies, and the banking industry, and (3) pany is intended to describe factors which the providing informational services on legislative, Board has considered in determining the permis­ regulatory, and related matters. sibility of the management consulting activity Notice of the application, affording opportunity and should not be construed as an expression of for interested persons to submit comments and doubt in the integrity of any of the parties to this views on the public interest factors, has been duly application. published (37 Federal Register 3009). The time for Finally, the Board is bound to consider another filing comments and views has expired, and none Congressional purpose evidenced by the enact­ have been received. ment of the Bank Holding Company Act, that is, the policy of maintaining the separation between Applicant contends that Golembe’s activities banking and commerce in order to, among other constitute the provision of investment and finan­ things, prevent the undue concentration of eco­ cial advice and “furnishing economic or financial nomic resources. To permit bank holding com­ information,” as authorized by the Board in section panies to engage in the business of advising 225.4(a)(5) of Regulation Y. However, a footnote commercial enterprises would, in the Board’s to that Regulation expressly indicates that acting judgment, represent an extension of banking as a “management consultant” was not regarded influence into the realms of commerce in contra­ by the Board as within the scope of that activity vention of Congressional purpose. and that the question as to whether to propose ex­ Based upon the foregoing and other considera­ panding section 225.4(a)(5) to include manage­ tions reflected in the record, the Board has deter­ ment consulting was under consideration by the mined that the performance of management con­ Board. sulting activities is not so closely related to banking Although some of Golembe’s activities are pres­ or managing or controlling banks as to be a proper ently permissible for bank holding companies, incident thereto. As indicated above, Smolkin such as providing economic statistical forecasting is, in the Board’s judgment, engaged in manage­ services and publishing economic newsletters, ment consulting. Accordingly, the application Golembe also provides consulting services on a is hereby denied. confidential basis to banks, bank holding compa­ By order of the Board of Governors, effective nies and bankers’ associations. It makes bank fea­ June 5, 1972. sibility studies and renders advice with respect to geographic expansion, product extension, mergers Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, and Brimmer. Present and ab­ and acquisitions and applications to State and Fed­ staining: Governor Sheehan. Absent and not voting: Governor eral regulatory agencies. A portion of Golembe’s Maisel. consulting services also relate to internal bank Board action was taken while Governor Maisel was a Board member. operations, such as marketing, trust and bank credit card operations and loan or interest rate (Signed) Tynan Smith, policies. Other studies and analyses are performed [seal] Secretary of the Board. upon request of individual banks. Golembe also provides advice with respect to the organization MARINE MIDLAND BANKS, INC., and operation of State Bankers’ associations and BUFFALO, NEW YORK serves as a consultant to various banking groups with respect to legislative and regulatory matters Order Denying Acquisition of affecting the banking industry. The foregoing con­ Carter H. Golembe Associates, Inc. sulting services furnished by Golembe are consid­ Marine Midland Banks, Inc., Buffalo, New ered by the Board to be but a specialized form of York, a bank holding company within the mean­ management consulting. ing of the Bank Holding Company Act, has applied For the reasons stated in the Order of this date for the Board’s approval, under section 4(c)(8) of denying the application of First Commerce Cor­ the Act and § 225.4(b)(2) of the Board’s Regula­ poration to acquire W. R. Smolkin & Associates, tion Y, to acquire all of the voting shares of Carter Inc., the Board has determined that management H. Golembe Associates, Inc. (“Golembe”), Wash­ consulting is not so closely related to banking or ington, D.C., a company that engages in the activ­ managing or controlling banks as to be a proper ities of (1) economic research, (2) acting as a incident thereto. Accordingly, since Carter H. management consultant to banks, bank-related Golembe Associates, Inc. is engaged in manage­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 677 ment consulting activities to a significant extent, so small in relation to the holding company’s total the application is hereby denied. interests and so small in relation to the banking By order of the Board of Governors, effective market to be served as to minimize the likeli­ June 5, 1972. hood that the bank’s powers to grant or deny credit may be influenced by a desire to further the hold­ Voting for this action: Chairman Burns and Governors Rob­ ing company’s other interests. ertson, Daane, and Brimmer. Present and abstaining: Governors The Board has considered the application in the Mitchell and Sheehan. Absent and not voting: Governor Maisel. Board action was taken while Governor Maisel was a Board light of the factors set forth in § 4(d) of the Act Member. and finds that: (Signed) Tynan Smith, Hy-Vee, headquartered at Chariton, Iowa, owns [seal] Secretary of the Board. and operates 79 retail grocery stores and 4 drug stores in Iowa, Minnesota, and Missouri. Hy-Vee controls Bank through Trust, a profit-sharing ORDER UNDER SECTION 4(d) OF BANK HOLDING trust continuously managed since its inception on COMPANY ACT July 13, 1960, by trustees, all of whom are execu­ tive officers of Hy-Vee. The record shows that, HY-VEE FOOD STORES, INC., AND on June 14, 1963, Trust and Hy-Vee acquired con­ HY-VEE EMPLOYEES’ TRUST, trol of the voting shares of Bank by virtue of CHARITON, IOWA section 2(g)(2) of the Act (12 U.S.C. 1841(g)(2)). As of the time of submission of the application to Order Denying Exemption from Prohibitions the Board, Hy-Vee and Trust controlled 92.25 Against Nonbanking Activities of Bank per cent of the outstanding voting shares of Holding Companies Bank. The facts of record do not indicate that Hy-Vee Food Stores, Inc. (“Hy-Vee”), and the needs of the community were being inade­ Hy-Vee Employees’ Trust (“Trust”), both of quately served at the time Trust purchased the Chariton, Iowa, are bank holding companies Bank, nor is there evidence of a unique relation­ within the meaning of the Bank Holding Company ship between Applicants and the community such Act of 1956 (12 U.S.C. 1841), by virtue of con­ as could not exist between another owner of Bank trol of National Bank & Trust Company of and the community. Chariton, Chariton, Iowa (“Bank”), and have Bank’s total assets as of June 30, 1971 ($14.3 applied to the Board of Governors, pursuant to million), were equal to about 46 per cent of § 4(d) of the Act, for an exemption from the pro­ Hy-Vee’s total assets (on June 27, 1971) and hibitions of § 4 (relating to nonbanking activities represented over 200 per cent of the total assets and acquisitions). of Trust (on July 31, 1971). As of year-end 1970, Notice of receipt of the application was pub­ the before tax income of Bank was 7.8 per cent lished in the Federal Register on March 25, 1972 of the before tax income of Hy-Vee and 23.1 (37 Federal Register 6231). Time for filing com­ per cent of the increase in net worth of Trust. Bank’s ments and views has expired. No comments deposits as of June 30, 1971 ($13 million), have been received nor any request for a hear­ represented 19.8 per cent of total commercial ing. bank deposits in the relevant market, an area Section 4(d) of the Act provides that to the within a radius of 15 miles around Chariton. extent such action would not be substantially On the facts of record, including the length of at variance with the purposes of the Act and time the relationship has existed, the nature of subject to such conditions as the Board considers the origin of the affiliation, the needs of the com­ necessary to protect the public interest, the Board munity, and the size of the Bank in relation to the may grant an exemption from the provisions of holding companies’ total interests and in relation § 4 of the Act to certain one-bank holding com­ to the banking market involved, the Board con­ panies in order (1) to avoid disrupting business cludes that, while the record contains no evidence relationships that have existed over a long period that ownership of Bank by Trust and Hy-Vee has of years without adversely affecting the banks or had an adverse effect on the banks or community communities involved, or (2) to avoid forced involved, the Applicants have not demonstrated sales of small locally owned banks to purchasers that an exemption is warranted under the provi­ not similarly representative of community in­ sions of § 4(d) of the Act. terests, or (3) to allow retention of banks that are Based on the foregoing and other consider a- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN c JULY 1972 tions reflected in the record, the Board has denied Voting for this action: Vice Chairman Robertson and the applications of Hy-Vee and Trust for an exemp­ Governors Mitchell, Daane, and Sheehan. Absent and not voting: Chairman Burns and Governor Brimmer. tion from the Act’s restrictions relating to nonbank­ Board action was taken before Governor Bucher was a ing activities and acquisitions. Board Member. By order of the Board of Governors, effective (Signed) Tynan Smith, June 21, 1972. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN REGULATIONS D AND J dicate that a number of banks, especially those not served by most Federal Reserve The Board of Governors of the Federal Reserve offices and Federal Reserve Regional Check System on June 21, 1972, announced its unan­ Processing Centers (RCPC’s), would be ad­ imous approval of two regulatory changes versely affected. designed to restructure on a more equitable basis The Board has given careful attention to situations where a bank’s funds available for the reserve requirements of member banks, and investment would be significantly reduced by to modernize the Nation’s check collection sys­ the new check collection procedures. The tem. changes in the regulations, as now adopted, The changes will go into effect in two steps in and the early activation of System-wide RCPC late September and early October. They will: arrangements, will substantially lessen the effects upon investable funds of member banks. Apply the same reserve requirements to mem­ Given the normal growth of deposits, these ber banks of like size, regardless of a bank’s provisions should make it possible for member location (amending Regulation D, governing banks to adapt without undue difficulty to the reserves of member banks). new check collection procedures. Require all banks, also regardless of location, In this respect, it should be noted that the served by the Federal Reserve check collection Board has formulated its new reserve require­ system (virtually all of the Nation’s banks) ments in such a way that the smaller the mem­ to pay—in immediately collectible funds—for ber bank, the more its reserve require­ checks drawn on them the same day the ments are reduced. For example, member banks Federal Reserve presents the checks for pay­ in the up to $2 million net demand deposit ment (amending Regulation J, governing col­ category would experience a reduction in lection of checks and other items by Federal required reserves of 36 per cent, while mem­ Reserve Banks). ber banks with net demand deposits of $400 The changes, while basically the same as the million and up would have their required proposals published for public comment March 28, reserves lowered by 9 per cent. The Board is seeking simultaneously to have been modified in detail and method of applica­ equalize competitive conditions among banks— tion in the light of comment received. These and further ease adjustment to the new check modifications include further revisions of the re­ collection procedures—by giving high priority structured reserve schedule affecting member attention to extending Federal Reserve RCPC banks’ net demand deposits ranging from $10 clearing services and equalizing cutoff hours. million to $100 million, and temporary waivers Within the context of improving services, the of penalties on reserve deficiencies attributable Board’s most immediate and highest priority to the new check collection procedures. aim is accelerating the development of Region­ In making the announcement the Board said: al Check Processing Centers. This will greatly assist the transition to the new conditions by a The Board received letters during the 7- large number of banks—nonmember as well as week period for comment through May 15 member. By making possible earlier receipt of from less than 5 per cent of the Nation’s funds due to banks depositing checks for clear­ 13,800 commercial banks. Although many ance, these facilities for overnight check banks suggested modifications in the original gathering, processing, and clearing will further proposals—chiefly to minimize effects of the offset the earlier payment for checks required by new check collection procedures upon their the change in Regulation J. funds available for loans and investments— Regional Check Processing Centers located most of them approved of the program fully at Federal Reserve offices will serve areas or in principle. as large as can be reached on an overnight The correspondence the Board received, basis. Such expanded zones of overnight and the special efforts made by the Federal check clearance are already in operation at Reserve Banks during the comment period to Baltimore, Miami (Florida), Chicago, Kansas assess the effects of the proposed changes, in­ City, Omaha, and Denver. Centers at new loca- 679 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN c JULY 1972 tions will be established where needed to serve These ratios will become effective in two steps banks that cannot be reached overnight from just prior to the period when there is a seasonal present Federal Reserve offices. need for reserves in the banking system. Beginning The Board believes that the revisions of its in the statement week of September 21 to Sep­ regulations, as adopted, will result in a more tember 27, the first three ratios—8 per cent, 10 efficient, more competitive, and more produc­ per cent, and 12 per cent—will apply to net de­ tive banking system, better able to take ad­ mand deposits of $100 million and less, based vantage of modern communications and ac­ on the average level of deposits held by the counting technology to serve business and bank during the week ending September 13. private depositors in a growing economy. This will coincide with the September 21 effective The regulatory changes—and the method to be date for the Regulation J change. In addition, the used in implementing them—will result in a net 17^ per cent ratio that now applies to demand release of reserves of about $1.5 billion: a total deposits between $100 million and $400 million release of about $3.5 billion from the restructuring (for present reserve city banks) will be reduced of reserves and the waiver of penalties, which to \6V2 per cent as part of the first step. During the will be partially absorbed by the immediate $2 statement week from September 28 to October 4, billion reduction in float resulting from the change this latter ratio will be reduced to 13 per cent based in Regulation J. This float arises out of the present on the average level of deposits held by the bank practice whereby so-called country banks pay for during the week ending September 20. checks presented by the Federal Reserve in funds At present, member banks are divided into two that are not available for use until the next business classes on a geographical basis for the purpose of day following presentment of the checks for pay­ computing reserve requirements on demand de­ ment. Additional reduction in float will occur as posits. The ratios for reserve city banks—typically transportation arrangements are improved. the larger banks in the larger cities—are currently The net release of reserves will be accomplished 17 per cent on the first $5 million of demand de­ in two steps. It is intended that Federal Reserve posits and IIV2 per cent on demand deposits ex­ open market operations will be adapted as needed, ceeding $5 million. The reserve ratios for all other when the amendments go into effect, to neutralize member banks—often called country banks—are the effects on monetary policy. currently \2xh per cent on the first $5 million of Effects of the changes on the reserve positions of demand deposits and 13 per cent on demand de­ individual banks will vary and there will be some posits exceeding $5 million. transitional imbalances despite the modifications As originally proposed, a ratio of 13 per cent adopted by the Board. The Board expects that would have applied to net demand deposits from discount officers at the Reserve Banks will be $10 million to $400 million. The Board decided to responsive to requests of any member banks tem­ include an additional category—a 12 per cent ratio porarily in need of credit to tide them over a period for net demand deposits between $10 million and of adjustment to the new check collection basis. $100 million—to help offset the absorption of reserves through float reduction under the new Reserve restructuring (Regulation D) check collection rules that will have a sharp im­ The Board’s amendment restructuring reserve re­ pact on banks of this size. quirements on net demand deposits will modernize This particular action will release $400 million the system of reserves in the light of banking pat­ in reserves, and of this amount $250 million will terns that have evolved over the last 25 years. It go to country banks with net demand deposits of will provide member banks of equal size with more than $10 million. equal reserve requirements. One part of the reserve restructuring will change Under the basic restructuring, reserve require­ the manner in which “reserve city banks” are ments on net demand deposits will be based on the designated. Under the amendment, a bank is a amount of such deposits held by a member bank reserve city bank automatically whenever the without regard to its location. The restructuring average of its net demand deposits for the reserve will apply the following ratios to all member banks: period rises above $400 million. Amount of net demand deposits Reserve percentages In authorizing the Federal Reserve Banks to (in millions of dollars) applicable 2 or less 8 grant temporary waivers of penalties on certain Over 2 to 10 10 deficiencies in reserves attributable to the change Over 10 to 100 12 in Regulation J, the Board set the following guide­ Over 100 to 400 13 Over 400 HV2 lines: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 681 — A waiver will be granted initially only for ing Centers (RCPC’s) to serve expanded “zones penalties on reserve deficiencies equal to a reduc­ of immediate payment” around, as well as in, tion in available funds that exceeds 2 per cent of their cities. Banks and their customers in these a member bank’s net demand deposits. zones also have been on an immediate payments — The amount of deficiency eligible for waiver basis and their payment practices are thus not of penalties will decrease 1 per cent of net demand affected by the new check collection procedures. deposits for each quarter beginning January 1, The banks that may be adversely affected most 1973. by the revised check collection procedure are those — No further waivers will be granted under this outside cities with Federal Reserve facilities, and authority after June 30, 1974. outside the immediate payment areas served by the RCPC’s. Such banks, which will go on an Check collection (Regulation J) immediate payment basis, generate some 15 per The Board adopted the proposals it made in March cent of the dollar volume of all checks and about for revising its Regulation J, covering collection half of the 100 million checks currently written of checks by the Federal Reserve System. At the in the United States each business day. Whether same time, it took steps to attenuate and mitigate or not they are adversely affected depends upon the impact on affected banks of faster check col­ the offsetting amount of earlier credits they will lection. receive and reduction of their required reserves. Commercial banks that are members of the Fed­ These country banks had previously paid for eral Reserve System send to the Federal Reserve checks presented to them in funds collectible one for collection checks deposited by their customers day or more after presentation. This practice— that are drawn for the most part on banks outside rooted in times of slower communications— their local clearing systems. The Federal Reserve made available to such banks for investment an presents the checks, for collection, to the banks average of approximately $2 billion a day in funds against which they are drawn. Nonmember banks that were in the process of collection through the use Federal Reserve collection facilities by send­ Federal Reserve. This $2 billion float will be ing their checks to the Federal Reserve through eliminated under the new same-day-payment a member bank. The Federal Reserve credits the check collection procedure. reserve account of member banks that send checks The new check collection rules thus place all to it for collection. The Reserve Bank recovers banks— city and country, member and nonmem­ the amounts it has credited when it collects from ber— on the same footing as regards check collec­ banks whose customers wrote the checks. tion by the Federal Reserve. A number of the The revised check collection regulation re­ member country banks not now paying in im­ quires all banks to pay for their checks the same mediately available funds are medium to large day the Federal Reserve presents them for pay­ banks located in the many sizable cities that do ment, and to make the payment in funds that are not have Federal Reserve offices and in suburban available to the Federal Reserve that day, that is, areas around Federal Reserve cities. to pay in immediately available funds. In no case, In making immediate rather than deferred however, would a bank be expected to pay for its payment for their checks, banks not already on checks prior to receipt of its cash letter from the an immediate payment basis could— in the ab­ Reserve Bank. Nor would the right of a bank to sence of offsetting action by the Board— lose inreturn any check on the following day be affected. vestable funds. The Board’s action will provide Nearly all banks in the 12 cities where the Fed­ newly investable funds resulting from the lower eral Reserve Banks are located and in the 25 cities reserves the new reserve schedule permits. And with other Federal Reserve offices have been on the effect of having to pay the Federal Reserve for such an immediate payment basis. Payment for their checks earlier will be offset by earlier credit checks by these banks and their customers is not from the Federal Reserve on checks written in affected by the new check collection procedures. their favor. Where earlier credit is given for They will, of course, benefit from earlier credit checks due to either member or nonmember from banks whose earlier payment is passed on banks operating through a correspondent bank, the by the Federal Reserve. Federal Reserve anticipates that correspondent In recent months, in furtherance of Federal banks will pass the earlier credit back to the banks Reserve policy aimed at modernizing the Nation’s they represent. payments mechanism, the Federal Reserve Banks Despite these offsets, some banks will never­ have begun establishing Regional Check Process­ theless still have to give up funds previously avail­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN g JULY 1972 able to them in the form of float. To attenuate and 3. Make it clear that, in its deliberations, the mitigate the effect of this reduction of funds, the Board will consider and decide each case on its Board has authorized the Reserve Banks to waive merits. penalties on certain deficiencies in reserves for The guidelines provide in pertinent part: periods of up to 21 months. 1. If any offer to acquire shares is extended to The amount of funds on which penalties initially shareholders of the bank, the offer is extended to will be waived, after the new check collection all shareholders of the same class on an equal basis. procedure goes into effect, will depend upon the 2. The amount borrowed by the holding com­ amount of net loss of funds a bank experiences. pany to purchase the voting shares of the bank The net loss of reserves will be the amount of the does not exceed either 50 per cent of the pur­ reduction in reserves due to immediate rather chase price of the shares of the bank or 50 per than deferred payment for checks that is not offset cent of the equity capital of the holding com­ by (1) the Board’s new reserve requirement struc­ pany, the loan will be repaid within a reasonable ture or (2) receipt of earlier credit for checks under period of time (not to exceed 10 years), the in­ the new check collection rules. The amount will terest rate on the loan is comparable with other be figured as a per cent of the bank’s net demand stock collateral loans by the lender to persons of deposits. comparable credit standing, and the loan is not Where a bank’s net reduction of funds is less than conditioned upon maintenance of a correspondent 2 per cent of its net demand deposits, no waiver of bank balance with the lender that exceeds the usual penalties will be granted. Penalties will be waived needs of the bank whose shares are being pur­ on reserve deficiencies in excess of 2 per cent of chased. net demand deposits through the remainder of this 3. Interest on and amortization of the holding year. Thereafter, the waiver of penalties will be company’s indebtedness will not exceed, in any reduced at the beginning of each quarter on an year, 50 per cent of the holding company’s pro­ amount equal to 1 per cent of the bank’s net de­ portionate share of the bank’s anticipated net in­ mand deposits, up to a maximum of six quarters. come (after taxes) for that year, unless a higher percentage is specifically approved by the Reserve PROPOSED ONE-BANK HOLDING COMPANIES Bank at the time of the formation of the holding The Board of Governors on July 5, 1972, made company. public a letter to the Presidents of the Federal Reserve Banks concerning their use of delegated ASSISTANCE TO BANKS IN FLOODED AREAS authority for approval of proposed one-bank The Federal Reserve System on June 26, 1972, holding companies. moved to facilitate efforts of banks in the areas The letter follows up an oral presentation to flooded due to Hurricane Agnes to accommodate the Board, on June 28, 1972, at which interested the credit needs of their customers for reconstruc­ parties gave their views on guidelines issued by tion and rehabilitation purposes. the Board to the Reserve Banks for use in approv­ Under arrangements established by the System’s ing one-bank holding company applications. The Board of Governors in Washington, the Federal record of the presentation was held open for Reserve Banks whose districts encompass the in­ written comment by participants and others volved areas are authorized: through July 12, after which the Board will recon­ 1. To waive penalties on member banks for sider the guidelines. failure to maintain the reserve balances they are The Board’s letter was designed to clear up mis­ required to keep with the Reserve Banks. understandings as to the use of the guidelines that 2. To make appropriate credit available to became apparent in the June 28 oral presentation. banks to help them meet the unusual circum­ Accordingly, the letter made clear that the Reserve stances in their areas. Banks should: 1. Continue to use the guidelines, as they stand, delineating the extent to which Federal Reserve CHANGES IN OTC MARGIN STOCKS Banks can approve one-bank holding company The Board of Governors announced several applications under delegated authority. changes, effective July 3, 1972, in its “List of 2. Forward to the Board for action any applica­ OTC Margin Stocks” that was issued in revised tions that do not meet those guidelines, or on which, form on May 15, 1972. The list was first published for any other reason, the Reserve Bank recom­ on July 8, 1969. mends denial. Two stocks, Browning Company, $1.00 par Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 683 common, and Warner Continental, Inc., $.50 par The monthly series on business loans at all com­ common, are added to the list. mercial banks is derived from two sources: (1) Four stocks are deleted from the list: First the volume of such loans as actually reported for Pennsylvania Corporation, $1.00 par common; the last Wednesday of the month by the large Keene Corporation, $.10 par common; NLT weekly reporting commercial banks, and (2) the Corporation, $5.00 par common; and Arkansas- volume of such loans as estimated for all other Missouri Power Company, $2.50 par common. commercial banks. Business loans at the large Five other changes have been made. Bank- weekly reporting banks account for about 70 per america Corporation, $6.25 par common now cent of business loans outstanding at all commercial reads, after a 2 for 1 split, as Bankamerica Cor­ banks. For the smaller banks that do not report poration, $3,125 par common; Food Fair Proper­ their business loans weekly, estimates of such ties, Inc., $.01 par common becomes Amterre loans are based on: (1) the movement of total Development Inc., $.01 par common; Interna­ loans at these banks as actually reported by country tional Textbook Company (Intext), no par com­ member banks and as estimated for nonmember mon is changed to Intext, Inc., no par common; banks, and (2) the trend of business loans at the National Patent Development Corporation, Class smaller banks (member and nonmember) as in­ A, $.01 par common now reads as National dicated by the most recent call report benchmark. Patent Development Corporation, $.01 par com­ The original estimates, as noted earlier, are sub­ mon; and Palo Alto-Salinas Savings and Loan sequently revised to bring them in line with call Association, no par capital is renamed Northern report figures. Since the monthly business loan California Savings and Loan Association, no par figures for the nonweekly reporting banks are capital. entirely estimated between call dates, however, fairly substantial errors may occur from time to MONTHLY SERIES FOR COMMERCIAL AND time in the series and users should take account of INDUSTRIAL LOANS AT ALL COMMERCIAL BANKS these limitations. An estimated monthly series on commercial and BANKING DATA ON MAGNETIC TAPES industrial loans at all commercial banks will be published regularly in the Bulletin beginning Selected data reported semiannually by individual with this issue. Previously, the only commercial banks to Federal banking agencies in their official and industrial loan data shown for all commercial Reports of Condition are now available to the banks were for June and December call report public on 9-track, 800-bpi magnetic tape. The dates. data shown are for the major balance sheet items The new series for business loans will be shown that have been published regularly in recent years both on a seasonally adjusted basis and without in the Reports of Condition, which consolidate seasonal adjustment. Data also will be shown data for all domestic banking offices and their adjusted for transfers of such loans between banks significant domestic subsidiaries. Included with the and their affiliates, subsidiaries, or foreign tapes is appropriate documentation of the data and branches. These series will be included in the of the tape file; the tapes identify by name, loca­ table, “Loans and Investments at All Commercial tion, and supervisory charter-class all commercial Banks,” page A-18. Seasonally adjusted data will banks in the United States that are insured by the also appear in the Board’s H.8 statistical release Federal Deposit Insurance Corporation. Beginning as of the last Wednesday in each month. Monthly with data for 1972, the subscription price for two data for the period 1959-71 appear on page A-109 tapes of data— one for the June call and one for of this Bulletin. the December call— will be $100 per year. Figures for commercial and industrial loans at Historical data in the same format are now all commercial banks are reported to the Federal available through December 1971. Tapes of data banking authorities for the June and December for June and December dates for the period June call dates but are available only with a 3- or 4- 1960 through June 1971 (7 tapes) are available as month lag. Until the call report figures do become a set, at a price of $150 per set. The price of the available, they are estimated by the Federal Re­ tape for December 1971 is $50. serve. Figures for the last Wednesday of the Information regarding these tapes may be ob­ intervening months are also estimated by the tained by writing to Publications Services, Division Federal Reserve and when call report data become of Administrative Services, Board of Governors available the monthly figures are benchmarked in of the Federal Reserve System, Washington, D.C. accordance with the call report data. 20551. Checks made payable to the Board of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Governors of the Federal Reserve System should A complimentary copy is being sent to the head accompany requests for tapes. office of each member bank of the Federal Reserve System. Additional copies may be obtained by REVISED EDITION OF THE FEDERAL RESERVE ACT member banks at a cost of $1.25 each. Copies The Board of Governors has published a reprint are also available for sale to the public at the of the Federal Reserve Act and related statutes same price, from the Board’s Division of Ad­ that includes legislation enacted through 1971. ministrative Services or any Federal Reserve Bank. 684 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication July 17 Industrial production rose somewhat further in in June and there were increases also in construc­ June, nonfarm employment was unchanged, and tion products. Among materials, production of retail sales declined. The unemployment rate nonferrous metals and the textile, paper, and dropped to 5.5 per cent and the wholesale price chemical group rose. Output of steel, however, index rose further. Commercial bank credit was changed little. unchanged. The money stock and time and savings deposits increased. Between mid-June and mid- EMPLOYMENT July, yields on U.S. Government securities rose Nonfarm payroll employment in June remained at and yields on seasoned corporate securities the upward revised May level as advances in dropped slightly. services and State and local governments were offset by declines in manufacturing and Federal INDUSTRIAL PRODUCTION Government. Average weekly hours of factory Industrial production rose 0.3 per cent further in production workers edged up 0.1 hour to 40.6 June and at 112.7 per cent (1967=100) was 4.9 hours. The over-all unemployment rate dropped per cent above a year earlier and 0.7 per cent above to 5.5 per cent from 5.9 per cent in May, reflecting the 1969 high. In the course of completing the a decline in joblessness among 16-24 year-old 1971 revision of the industrial production index, workers. seasonal adjustment factors and production levels RETAIL SALES have been reviewed and revisions have been made The value of retail sales declined 1.5 per cent in for the period since January 1970. The total index June and was 7.5 per cent above a year earlier. on the revised basis first surpassed the former 1969 Sales at durable goods stores were down 2 per peak in April when it was 112.1 per cent. cent and at nondurable goods stores were off 1 The June output gains were in business equip­ per cent. ment and materials as production of most con­ sumer goods changed little. There were, however, WHOLESALE AND CONSUMER PRICES some declines in both consumer durable and non­ The wholesale price index, seasonally adjusted, durable goods. Auto assemblies declined about 3 rose 0.5 per cent between May and June. The per cent and were at an annual rate of 8.5 million index of industrial commodities increased 0.4 per units compared to 8.8 million in May. Output of cent with advances being posted for lumber and business equipment was up 0.5 per cent further plywood, hides, footwear, paper products, ma­ chinery and equipment, and fuels and power. The INDUSTRIAL PRODUCTION index of farm and food products rose 0.5 per cent RATIO SCALE, 1967=100 as prices increased sharply further for livestock and meats; increases were also large for live poultry and fresh vegetables. The consumer price index, seasonally adjusted, rose 0.3 per cent in May. Prices of food were down 0.1 per cent as meat prices fell but those 120 of other commodities— boosted by sharp jumps for gasoline and used cars— increased 0.5 per cent. The advance in the prices of services continued moderate. 80 BANK CREDIT, DEPOSITS, AND RESERVES 1972 Commercial bank credit, adjusted for transfers of F.R. indexes, seasonally adjusted. Latest figures: June. loans between banks and their affiliates, was un- 685 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

compared with $25 million in May. Excess re­ PRICES 1967=100 Wholesale Consumer 1967=100 serves increased and member bank borrowings declined. SECURITY MARKETS Treasury bill rates rose by about 5 to 25 basis points on balance between mid-June and mid-July. The 3-month bill was bid at around 3.95 per cent in the middle of July, up from 3.90 per cent a month earlier. Yields on intermediate-term U.S. Government notes and bonds advanced by 10 to 15 basis points, while long-term bond rates gained about 1 to 2 basis points. From mid-June to early July, yields on new corporate securities rose moderately and leveled 1968 1970 1972 1968 1970 1972 off while seasoned corporate securities dropped slightly. Municipal security rates also rose some­ Bureau of Labor Statistics. “Farm products and foods” is BLS “Farm products, and processed foods and feeds.” Latest what and then leveled off. figures: Consumer, May; Wholesale, June. Common stock prices dropped on balance on less than average volume. changed in June following rapid expansion in May. Over the second quarter, growth in credit INTEREST RATES was at an annual rate of about 7 per cent, signifi­ PER CENT cantly below the 15 per cent rate of the first quarter. Holdings of U.S. Government securities were unchanged in June while holdings of other securities declined moderately. Business borrow­ ing slackened, but real estate and consumer loans continued strong. The narrowly defined money stock increased at an annual rate of 4.6 per cent in June, or slightly faster than in May. Over the second quarter, expansion in the money stock was at an annual rate of 5.3 per cent well below the first quarter rate of 9.3 per cent. U.S. Government deposits declined sharply in June. Inflows of time and savings deposits other than large CD’s accelerated somewhat further, but holdings of large CD’s grew less rapidly than in other recent months. Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 Free reserves of member banks averaged about years or more and for 90-day Treasury bills. Latest figures: $110 million over the 4 weeks ending June 28, week ending July 8. 686 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 51 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 c JULY 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: Banking and monetary statistics, 1971: A 98 Consolidated condition statement A 99 Prinicipal assets and liabilities of commercial banks and number, by class of bank Member banks, 1971: Operating ratios: A 102 By size of bank A 106 By Federal Reserve district SPECIAL TABLE: A 109 Commercial and industrial loans at all commercial banks A 118 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 S Sources of funds I, II, 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..................................... June 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 1960-71 .......................................June 1972 A-73.10—A-73.21 On, and not on, Federal Reserve Par List, number.......................... Feb. 1972 A-99 Flows: 1965-71 data (revised)..................June 1972 A-73.1—A-73.9 Annually Income and expenses: Bank holding companies: List of, Dec. 31, 1971......................June 1972 A-98 Federal Reserve Banks......................Feb. 1972 A-96—A-97 Banking offices and deposits of Insured commercial banks..................May 1972 A-98—A-99 Member banks: group banks, Dec. 31,1970..........Aug. 1971 A-98 Calendar year................................May 1972 A-98—A-107 Banking and monetary statistics: Income ratios..................................May 1972 A-108—A-113 Operating ratios..............................July 1972 A-102—A-107 1971 ............................................... Mar. 1972 A-98—A-110 July 1972 A-98—A-101 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.................................................................................................................. June 1972 A-115 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ JULY 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 cur­ Held Other stock Rights rency under Loans Float 2 F.R. Total ^ certificate out­ 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 1941—Dec........................... 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec........................... 23,708 23,708 381 652 24,744 20’047 4^322 1950—Dec........................... 20,345 20,336 9 142 1,117 21,606 22|879 4^629 1960—Dec........................... 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—Dec........................... 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1967—De c 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—De c 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Jun e 64,642 64,574 68 453 2,690 979 68,834 10,332 400 7,419 July........................... 66,001 65,652 349 820 3,001 1,150 71,052 10,332 400 7,437 Aug........................... 66,324 66,143 181 804 2,572 991 70,749 10,184 400 7,460 Sept........................... 67,106 66,794 312 501 2,974 900 71,568 10,132 400 7,523 Oct............................ 67,690 67,488 202 360 3,122 1,105 72,349 10,132 400 7,545 Nov............................. 68,052 67,655 397 407 3,129 1,013 72,694 10,132 400 7,573 Dec........................... 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—Ja..............................n 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 Mar........................... 69,273 69,133 140 99 2,948 780 73,181 9,588 400 7,859 Apr........................... 70,939 70,770 169 109 3,031 990 75,171 9,588 400 7,922 May.......................... 71,428 71,391 37 119 3,140 934 75,705 10,224 400 7,991 June p...................... 71,632 71,624 8 94 3,349 933 76,087 10,410 400 8,043 Week ending— 1972—Apr. 5.................... 70,697 70,109 588 141 2,841 891 74,706 9,588 400 7,894 12.................... 70,704 70,556 148 14 2,894 943 74,668 9,588 400 7,912 19................... 70,811 70,811 43 3,265 996 75,196 9,588 400 7,920 26.................... 71,317 71,130 ........i 87 *' 279 3,113 1,045 75,853 9,588 400 7,936 May 3.................... 71,337 71,337 117 2,996 1,094 75,627 9,588 400 7,954 10................... 71,524 71,524 85 3,197 1,135 76,030 9,940 400 7,971 17.................... 71,348 71,348 39 3,192 968 75,627 10,410 400 7,987 24................... 71,303 71,303 63 3,355 752 75,554 10,410 400 8,008 31................... 71,530 71,367 163 254 2,951 807 75,630 10,410 400 8,011 June 7................... 71,643 71,620 23 58 3,297 878 75,962 10,410 400 8,023 14................... 71,728 71,728 94 2,950 896 75,747 10,410 400 8,032 21 p................ 71,325 71,325 57 3,709 941 76,104 10,410 400 8,055 28 p................ 71,658 71,648 10 135 3,487 1,002 76,363 10,410 400 8,057 End of month 1972—Apr........................... 71,286 6 71,286 60 2,975 1,086 75,490 9,588 400 7,949 May......................... 72,611 6 71,471 1,140 1,594 2,846 845 78,039 10,410 400 8,020 June p...................... 72,462 6 72,462 131 3,324 990 76,980 10,410 400 8,056 Wednesday 1972—Apr. 5................... 71,285 6 70,344 941 60 3,023 928 75,468 9,588 400 7,908 12................... 70,342 6-7 70,342 10 3,032 1,003 74,469 9,588 400 7,917 19................... 70,664 6-7 70,664 245 3,333 1,045 75,369 9,588 400 7,925 26................... 72,255 6 71,164 1,091 1,789 3,209 1,102 78,522 9,588 400 7,946 May 3................... 71,461 6 71,461 468 3,280 1,134 76,428 9,588 400 7,967 10................... 71,348 6 71,348 494 3,053 1,180 76,157 10,410 400 7,976 17................... 71,348 6 71,348 194 3,851 734 76,206 10,410 400 8,000 24................... 71,303 6 71,303 317 3,065 806 75,567 10,410 400 8,009 31................... 72,611 7,,471 1,140 1,594 2,846 845 78,039 10,410 400 8,020 June Ip................. 71,888 6 71,728 160 136 3,104 893 76,151 10,410 400 8,028 14*................. 71,728 6 71,728 65 3,420 940 76,226 10,410 400 8,037 21*................. 71,298 6 71,298 181 3,916 1,012 76,473 10,410 400 8,057 28*................. 72,094 6 72,022 72 475 3,439 1,042 77,198 10,410 400 8,057 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank Cur­ reserves, Other reserves Period or date re c i n i n r c ­ y T c u r a e r s a y h s­ with F.R. Banks O F a t . h c R ­ e . r b F i l l . i i R a ti ­ e . s c t u io la n ­ h i o ng ld s ­ T u re r a y s­ F ei o g r n ­ Other 2 counts3 ca a p n it d al3 B W F a . n R it k h . s r C e a n n u c d r y ­ Total coin5 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .......................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .......................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .......................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .......................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 ........................1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 .......................1965—Dec. 47,000 1,428 902 150 451 -204 20,753 4,507 25,260 .....................1967—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .......................1968—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .......................1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 ......................1970—Dec. 57,969 491 652 155 698 2,227 24,793 5,230 30,023 .......................1971—June 58,847 471 1,546 161 714 2,251 25,231 5,316 30,547 ...................................July 58,906 477 1,121 181 712 2,298 25,098 5,357 30,455 .................................Aug. 59,012 466 1,621 151 712 2,296 25,365 5,437 30,802 .................................Sept. 59,185 464 2,100 152 736 2,327 25,463 5,397 30,860 ..................................Oct. 59,939 470 1,723 133 714 2,320 25,500 5,453 30,953 ....................................Nov. 61,060 453 1,926 290 728 2,287 25,653 5,676 31,329 ..................................Dec. 60,201 487 2,821 181 750 2,208 26,955 5,910 32,865 .......................1972—Jan. 59,681 436 2,421 172 683 2,273 26,374 5,548 31,922 ..................................Feb. 60,137 388 933 170 597 2,247 26,555 5,366 31,921 .................................Mar. 60,717 405 1,688 200 615 2,313 27,144 5,421 32,565 .................................Apr. 61,182 573 2,170 185 574 2,289 27,347 5,465 32,812 .................................May 61,874 356 2,673 153 598 2,304 26,981 5,537 32,518 ...................................June** Week ending— 60,508 414 1,240 206 657 2,353 27,210 5,394 32,604 ...............1972—Apr. 5 60,858 403 1,273 255 627 2,389 26,764 5.581 32,345 .....................................12 60,863 407 1,535 177 596 2,220 27,306 5,259 32,565 .....................................19 60,633 398 2,413 152 586 2,283 27,312 5,354 32,666 .....................................26 60,668 403 2,090 191 603 2,356 27,259 5.581 32,840 ...........................May 3 61,010 748 2,518 136 574 2,305 27,049 5,708 32,757 ......................................10 61,309 861 1,658 140 576 2,210 27,669 5,488 33,157 ......................................17 61,208 380 2,265 149 557 2,271 27,542 5,104 32,646 ......................................24 61,358 375 2,178 323 2.329 27,299 5,515 32,814 ......................................31 61,632 361 2,559 134 611 2,415 27,083 5,594 32,677 ...........................June 7 61,944 354 2,602 138 588 2,203 26,760 5,657 32,417 ......................................14 61,958 355 2,435 150 575 2,253 27,243 5,359 32,602 ......................................21p 61,871 354 3,173 154 571 2.330 26,776 5,523 32,299 .......................................28 p End of month 60,535 401 1,871 228 631 2,346 27,415 5,571 32,986 ......................1972—Apr. 61,702 358 2,144 157 584 2,388 29,538 5,513 35,051 .................................May 62,182 361 2,344 257 836 2,359 27,508 5,594 33,102 ...................................JuneP Wednesday 60,829 412 1,212 236 696 2,396 27,583 5,397 32,980 ................1972—Apr. 5 61,041 407 1,541 188 625 2,179 26,393 5,584 31,977 .....................................12 60,898 411 1,868 142 545 2,241 27,178 5,262 32,440 .......................................19 60,728 398 1,822 128 573 2,308 30,499 5,354 35,853 .....................................26 60.936 405 2,687 136 560 2.387 27,273 5,571 32,844 ...........................May 3 61,322 1,224 2,686 121 606 2,167 26,817 5,695 32,512 ......................................10 61,419 386 1,491 170 569 2,234 28,747 5,499 34,246 .....................................17 61,311 383 2,402 148 611 2,301 27,230 5,109 32,339 ......................................24 61,702 358 2,144 157 584 2.388 29,538 5,513 35,051 .......................................31 61.936 360 2,356 145 615 2,442 27,135 5,593 32,728 ...........................June 62,123 357 2,121 126 533 2,223 27,590 5,658 33,248 .....................................14p 62,014 368 2,954 186 554 2,290 26,974 5,359 32,333 .....................................21p 62,161 357 2,923 194 585 2,365 27,480 5,523 33,003 .....................................28 p 1 Includes Federal Agency issues held under repurchase agreements as on Wed. and end-of-month dates, see tables on F.R. Banks on following of Dec. 1, 1966 and Federal Agency issues bought outright as of Sept. 29, pages. See also note 2. 1971. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning with 1960 reflects a minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 1961 Bulletin, p. 164. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. of-business figures for reserve period 2 weeks previous to report date. liabilities and capital” are shown separately; formerly, they were 6 Includes securities loaned—fully secured by U.S. Govt, securities netted together and reported as “Other F.R. accounts.” pledged with F.R. Banks. 4 Includes industrial loans and acceptances, until Aug. 21, 1959, when 7 Reflects securities sold, and scheduled to be bought back, under industrial loan program was discontinued. For holdings of acceptances matched sale/purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ JULY 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o el t d al qu R ir e e ­ d! B r F i o a n a . n w R g t k s ­ . s Free T h o e t l a d l qu R ir e e ­ d1 B r F i o a n a . n w g R t k s . ­ s Free T h o e t l a d l qu R ir e e ­ d 1 Excess B r F i a o n a . n R w g t k s . ­ s s F e r r r e v e ­ e e s 1939—Dec............ 11,473 6,462 5,011 3 5,008 5.623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............ 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............ 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............ 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 I960—Dec........... 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1965—Dec........... 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—De c 27,221 26,766 455 765 -310 5,157 5.057 100 230 -130 1,199 1,184 15 85 -70 1969—De c 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 27 -9 1970—De c 29,265 28,993 272 321 -49 5.623 5,589 34 25 9 1,329 1,322 7 4 3 1971—Jun e 30,023 29,892 131 453 -322 5,637 5.674 -37 90 -127 1,387 1,405 -18 21 -39 July........... 30,547 30,385 162 820 -658 5,729 5,754 -25 86 -111 1,407 1,408 -1 28 -29 Aug........... 30,455 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 7 7 Sept........... 30,802 30,596 206 501 -295 5,683 5.674 9 38 -29 1,417 1,423 -6 4 " ‘-10 Oct............ 30,860 30,653 207 360 -153 5,678 5,667 11 67 -56 1,425 1,408 17 15 2 Nov.......... 30,953 30,690 263 407 -144 5,644 5,608 36 107 -71 1,408 1,400 8 22 -14 Dec........... 31,329 31,164 165 107 58 5.774 5,749 25 35 c-10 1,426 1,425 1 8 -7 1972—Ja...............n 32,865 32,692 173 20 153 6,066 6.058 1,503 1,512 -9 -9 Feb............ 31,922 31,798 124 33 91 5.775 5,807 -32 -37 1,446 1,442 4 4 Mar........... 31,921 31,688 233 99 134 5,815 5,758 57 -14 1,434 1,443 -9 4 -13 Apr........... 32,565 32,429 136 109 27 5,938 5,940 -2 -50 1,482 1,476 6 5 1 May.......... 32,812 32,708 104 119 -15 6,045 6,031 14 -36 1,514 1,505 9 12 -3 June**........ 32,518 32,338 180 94 86 5,948 5,921 27 21 1,490 1,490 Week ending— 1971—June 2.., 30,276 29,991 285 646 -361 5,693 5,638 55 171 -116 1,387 1,396 -9 -9 9... 29,886 29,813 73 153 -80 5.648 5,680 -32 46 -78 1,414 1,413 1 1 16... 30,225 29,959 266 403 -137 5,742 5,729 13 129 -116 1,473 1,467 6 6 23... 29,919 29,709 210 619 -409 5.648 5,607 41 103 -62 1,338 1,351 -13 77 -90 30... 30,292 30,060 232 750 -518 5,676 5,699 -23 107 -130 1,405 1,394 11 11 Dec. 1... 31,275 30,685 590 705 -115 5,701 5,538 163 222 -59 1,438 1,386 52 47 5 8... 30,743 30,600 143 59 84 5,671 5,604 67 67 1,356 1,366 -10 -10 15.. , 31,153 30,949 204 25 179 5,699 5,757 -58 -58 1,479 1,451 28 28 22.. , 31,151 31,180 -29 141 -170 5,747 5,764 -17 -96 1,371 1,414 -43 14 -57 29... 31,924 31,610 314 216 98 5,793 5,799 -6 -82 1,511 1,445 66 21 45 1972—Jan. 5... 32.814 32,502 312 57 255 6,200 6,120 80 80 1,520 1,526 -6 -6 12... 32,793 32,688 105 17 88 6,055 6,141 -86 -86 1,569 1,549 20 20 19.. 33.665 33.447 218 14 204 6,369 6,267 102 102 1,526 1,563 -37 -37 26... 32,592 32,400 192 12 180 5,766 5,848 -82 -82 1,475 1,459 16 16 Feb. 2... 32,435 32,190 245 16 229 5,936 5,880 56 56 1,460 1,451 9 9 9... 31,892 31,842 50 42 8 5,733 5,825 -92 22 -114 1,439 1,445 -6 -6 16... 32,257 31,946 311 18 293 6,078 5,895 183 183 1,450 1,466 -16 -16 23.. 31,823 31,693 130 14 116 5,686 5,789 -103 -103 1,453 1,427 26 26 Mar. 1.., 31,614 31,532 82 67 15 5,643 5,679 -36 -36 1,411 1,425 -14 -14 8.. 31,465 31,289 176 103 73 5.649 5,658 -9 99 -108 1,435 1,419 16 16 15... 32,108 31,715 393 13 380 5,982 5,796 186 186 1,473 1,479 -6 -6 22... 31,558 31,691 -133 115 -248 5,605 5,725 -120 -215 1,421 1,433 -12 4 -16 29.. 32,219 31,934 285 153 132 5,911 5,820 91 -3 1,442 1,436 6 14 -8 Apr. 5.. 32,604 32,230 374 141 233 5,991 5,933 58 86 -28 1,521 1,472 49 49 12.. 32,345 32,179 166 14 152 5,963 5,953 10 10 1,446 1,482 -36 -36 19.. 32,565 32,624 -59 43 -102 5,947 6,055 -108 23 -131 1,498 1,489 9 9 26.. 32.666 32.448 218 279 -61 5,913 5,824 89 124 -35 1,441 1,456 -15 23 -38 May 3.. 32,840 32,704 136 117 19 5,862 5,927 -65 60 -125 1,513 1,480 33 33 10.. 32,757 32,566 191 87 104 6.019 5,978 41 49 -8 1,486 1,506 -20 -20 17.. 33,157 32,963 194 39 155 6,223 6,218 5 21 -16 1,566 1,535 31 31 24.. 32,646 32,560 86 63 23 6,007 5,994 13 39 -26 1,443 1,491 -48 -48 31.. 32.814 32,726 254 -166 5,975 6,001 -26 51 -77 1,520 1,496 24 54 -30 June 7.. 32,677 32,346 331 58 273 6.020 5,931 89 89 1,490 1,491 -1 -1 14.. 32,417 32,308 109 94 15 5,889 5,920 -31 -31 1,506 1,491 15 15 21». 32,602 32,391 211 57 154 6,040 5,975 65 47 1,499 1,497 2 2 28p. 32,299 32,174 125 135 -10 5,790 5,808 -18 -24 1,480 1,476 4 4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Reserves Borrow­ Borrow­ Period ings at Free ings at Free F.R. eserves F.R. reserves T h o e t l a d l Required Excess Banks T h o el ta d l Required i Excess Banks 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ...1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ...1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ,...1950—Dec. 7,950 7,851 100 20 80 6,689 6,066 623 40 583 ...1960—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 ...1965—Dec. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 .. .1967—Dec. 10,990 10,900 90 270 -180 9,875 9,625 250 180 70 ...1968—Dec. 10,970 10,964 6 479 -473 10,335 10,158 177 321 -144 ...1969—Dec. 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 ... .1970—Dec. 11,743 11,735 181 -173 11,256 11,078 178 161 17 ....1971—June 11,939 11,929 10 441 -431 11,472 11,294 178 265 -87 ..................July 11,871 11,883 -12 425 -437 11,474 11,324 150 208 -58 ................Aug. 12,115 12,077 38 318 -280 11,587 11,422 165 141 24 ................Sept. 12,069 12,050 19 163 -144 11,688 11,528 160 115 45 ..................Oct. 12,106 12,041 65 177 -112 11,795 11,641 154 101 53 ................Nov. 12,198 12,233 -35 22 -57 11,931 11,757 174 42 132 ..................Dec. 12,954 12,941 13 13 12,342 12,181 161 20 141 .... 1972—Jan. 12,578 12,573 5 12 -7 12,123 11,976 147 16 131 ................Feb. 12,559 12,533 26 9 17 12,113 11,954 159 15 144 ................Mar. 12,820 12,804 16 22 -6 12,325 12,209 116 34 82 ................Apr. 12,874 12,898 -24 31 -55 12,379 12,274 105 16 79 ...............May 12,751 12,741 10 40 -30 12,329 12,186 143 48 95 ..................June* Week ending— 11,891 11,857 34 317 -283 11,305 11,100 205 158 47 1971—June 2 11,693 11,753 -60 52 -112 11,131 10,967 164 55 109 ................... 9 11,812 11,749 63 113 -50 11,198 11,014 184 161 23 ...................16 11,703 11.640 63 286 -223 11,230 11,111 119 153 -34 ...................23 11,827 11,759 68 324 -256 11,384 11,208 176 308 -132 ...................30 12,181 12,025 156 282 -126 11,955 11,736 219 154 65 ..........Dec. 1 11.932 11,992 -60 15 -75 11,784 11,638 146 44 102 ................... 8 12,156 12,099 57 57 11,819 11,642 177 25 152 ...................15 12,180 12,254 -74 24 -98 11,853 11,748 105 24 81 ....................22 12,521 12,453 68 58 10 12,099 11,913 186 61 125 ...................29 12,871 12,819 52 52 12,223 12,037 186 57 129 1972—Jan. 5 12,898 12,927 -29 -29 12,271 12,071 200 17 183 ...................12 13,309 13,327 -18 -18 12,461 12,290 171 14 157 ....................19 12.932 12,837 95 95 12,419 12,256 163 12 151 ...................26 12,686 12,688 -2 -2 12,353 12,171 182 16 166 ..........Feb. 2 12,577 12,567 10 10 12,143 12,005 138 20 118 ...................9 12,602 12.636 -34 -35 12,127 11,949 178 17 161 ...................16 12,583 12,537 46 46 12,101 11,940 161 14 147 ...................23 12.464 12,492 -28 57 -85 12,096 11,936 160 10 150 ..........Mar. 1 12,396 12,384 12 12 11,985 11,828 157 4 153 ................... 8 12,605 12,554 51 2 49 12,048 11,886 162 11 151 .....................15 12.465 12,539 -74 8 -82 12,067 11,994 73 8 65 .....................22 12,651 12,609 42 21 21 12,215 12,069 146 24 122 .....................29 12,804 12,718 86 86 12,288 12,107 181 55 126 Apr. 5 12,740 12,705 35 35 12,196 12,039 157 14 143 .....................12 12,816 12,903 -87 -95 12,304 12,177 127 12 115 ...................19 12,865 12,827 38 -48 12,447 12,341 106 46 60 .....................26 12,894 12,866 28 2 26 12,571 12,431 140 55 85 ..........May 3 12,815 12,804 11 19 -8 12,437 12,278 159 19 140 .....................10 12,966 12,983 -17 4 -21 12,402 12,227 175 14 161 .....................17 12,884 12,850 34 8 26 12,312 12,225 87 16 71 ....................24 12,920 12,966 -46 106 -152 12,399 12,263 136 43 93 .....................31 12,867 12.791 76 20 56 12,300 12,133 167 38 129 ..........June 7 12,772 12.792 -20 44 -64 12,250 12,105 145 50 95 .....................14 12,718 12,713 5 13 -8 12,345 12,206 139 26 113 .....................21* 12,678 12.637 41 69 -28 12,351 12,253 98 60 38 ...................28 i Beginning Sept. 12, 1968, amount is based on close-of-business fig­ Total reserves held: Based on figures at close of business through Nov. ures for reserve period 2 weeks previous to report date. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ JULY 1972 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve possiittiioonn Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less- Net- Gross transactions Net transactions Reporting banks week a e n n d ding— Excess r a o B t B w a F o n i . r n k R - g s . s F t f i b e r n u N a d a n t n n e e e d r s r t k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e u v o c r i g f v r e . e e n d s t c P ha u s r e ­ s Sales t a w c t T r o t a i o - o n t w n a s s l a ­ y 2 b c o b u P h a f y a u n n s i r k n e e ­ s s g t s b o S e a f l a n l l n i e k n e s g s t d L ea o t l o a e n r s s3 de f r B i a r o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 1972—May 3.... 21 60 4,306 -4,345 31.7 10,211 5,905 4,100 6,111 1,805 1,828 233 1,595 10.... 23 46 5.621 -5,644 41.0 11,874 6,253 3,656 8,219 2,598 1,728 307 1,421 17.... 44 21 6,064 -6,041 42.7 12,039 5,976 3,756 8,284 2,220 1,476 233 1,243 24.... 24 39 4,994 -5,010 36.5 10,409 5,415 3,513 6,896 1,902 1,290 209 1,082 31.... -14 159 4,397 -4,570 33.1 10,300 5,903 3,546 6,754 2,358 1,499 321 1,178 June 7.... 97 6,076 -5,980 43.9 12,275 6,198 4,171 8,104 2,028 1,887 258 1,629 14.... 66 6,405 -6,340 46.5 12,440 6,035 4,018 8,423 2,018 1,721 344 1,377 21.... 104 19 6.622 -6,538 48.1 12,685 6,062 4,084 8,601 1,978 1,967 358 1,609 28.... 53 48 4,249 -4,244 31.8 11,188 6,939 4,054 7,135 2,885 1,585 438 1,147 8 in New York City 1972—May 3.... -37 60 1,541 -1,638 30,4 2,757 1,216 991 1,767 225 1,470 78 1,392 10.... 11 46 2,802 -2,837 52.1 3,596 794 617 2,980 178 1,264 50 1,214 17.... 19 21 3,205 -3,207 56.4 4,060 856 856 3,204 1,037 30 1,007 24.... 23 39 2.364 -2,381 44.4 2,984 620 619 2,364 950 39 911 31.... 29 2.364 -2,401 44.8 3,075 710 710 2,364 0 1,174 50 1,124 June 7.... 2.772 -2,699 51.0 3,721 948 948 2,772 1,406 41 1,365 14.... 3,215 -3,176 60.2 3,824 609 609 3,215 1,268 53 1,215 21.... 18 3,155 -3,096 58.1 4,126 971 971 3,155 1,389 44 1,345 28. ... 2,363 -2,334 45.3 3,326 963 950 2,376 13 1,121 24 1,098 38 outside New York City 1972—May 3.... 57 2,765 -2,708 32.6 7,453 4,689 3,109 4,344 1,580 358 155 203 10___ 12 2,819 -2,807 33.8 8,278 5,459 3,039 5,239 2,420 464 257 207 17.... 25 2,859 -2,834 33.4 7,979 5,120 2,900 5,079 2,220 439 203 236 24.... 1 2,630 -2,629 31.5 7,425 4,795 2,893 4,532 1,902 341 170 171 31___ —6 131 2,033 -2,169 25.7 7,226 5,193 2,836 4,390 2,358 326 271 55 June 7.... 24 3,304 -3,281 39.3 8,554 5,250 3,223 5,332 2,028 480 216 264 14___ 27 3,190 -3,163 37.8 8,616 5,426 3,409 5,208 2,018 453 291 162 21.... 27 1 3,467 -3,442 41.6 8,559 5,092 3,113 5,446 1,978 578 314 264 28___ 24 48 1,886 -1,910 23.3 7.863 5,977 3,104 4,759 2,873 464 415 49 5 in City of Chicago 1972—May 3___ 23 1,544 -1,521 112.9 2,288 744 676 1,611 67 229 229 10.... -4 1,856 -1,860 135.2 2,585 729 680 1,904 49 307 307 17.... 20 1,741 -1,721 122.9 2,402 661 614 1,788 47 268 268 24___ -19 1,441 -1,460 107.7 2,204 763 722 1,481 41 223 223 31. ... 12 54 1,434 -1,475 108.4 2,084 651 603 1,481 48 217 217 June 7.... -12 1,864 -1,875 138.0 2,567 704 667 1,901 37 254 254 14.... 7 1,926 -1,919 141.3 2,524 598 585 1,939 13 291 291 21.... 12 1,957 -1,945 142.4 2,738 782 740 1,999 42 302 302 28___ 10 1,532 -1,521 113.1 2,156 625 595 1,561 30 277 277 33 others 1972—May 3___ 34 1,221 -1,187 17.0 5,166 3,945 2,433 2,733 1,512 130 155 -26 10.... 16 963 -947 13.6 5,694 4,731 2,359 3,335 2,372 158 257 -100 17.... 6 1,119 -1,113 15.7 5,578 4,459 2,286 3,292 2,173 171 203 -32 24.... 20 1,189 -1,169 16.7 5,222 4,032 2,171 3,051 1,862 118 170 -52 31.... -18 77 599 -694 9.8 5,142 4,542 2,232 2,909 2,310 109 271 -162 June 7.... 35 1,441 -1,406 20.1 5,987 4,547 2,556 3,431 1,991 226 216 10 14.... 20 1,264 -1,244 17.8 6,092 4,828 2,824 3,269 2,005 162 291 -130 21.... 15 1,511 -1,497 21.7 5,821 4,310 2,374 3,447 1,936 276 314 -38 28..., 14 355 -389 5.7 5,707 5,352 2,509 3,198 2,843 186 415 -228 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

JULY 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. 13 3 Federal Reserve Bank J R u a 1 n t 9 e e 7 3 2 o 0 n , Ef d fe a c t t e ive Pr r e a v t io e us R Ju a 1 n t 9 e e 7 2 o 3 n 0, Ef d fe a c t t e ive Pr r e a v t i e ous R Ju a 1 n t 9 e e 7 2 o 3 n 0, Ef d fe a c t t e ive Pre r v a i t o e us Boston.................................................. 4»/2 Dec. 13, 1971 4V4 5 Dec. 13, 1971 5*4 6*4 Dec. 13, 1971 6V4 New York........................................... 4% Dec. 17, 1971 4V4 5 Dec. 17, 1971 5V4 6V2 Dec. 17, 1971 6V4 Philadelphia........................................ 4% Dec. 17, 1971 4Va 5 Dec. 17, 1971 5*4 6V2 Dec. 17, 1971 6 % 41/z Dec. 17, 1971 4% 5 Dec. 17, 1971 5*4 6*4 Dec. 17, 1971 6y4 4% Dec. 24, 1971 4V4 5 Dec. 24, 1971 5V4 6*4 Dec. 24, 1971 6V4 Atlanta................................................ 4 *4 Dec. 23, 1971 4 y4 5 Dec. 23, 1971 5V4 61/2 Dec. 23, 1971 6% Chicago................................................ 41/2 Dec. 17, 1971 4V4 5 Dec. 17, 1971 5V4 6*4 Dec. 17, 1971 6V4 St. Louis.............................................. 41/2 Dec. 13, 1971 4V4 5 Dec. 13, 1971 5*4 6*4 Dec. 13, 1971 6% Minneapolis........................................ 4% Dec. 23, 1971 41/4 5 Dec. 23, 1971 5V4 61/2 Dec. 23, 1971 6% Kansas City........................................ 4% Dec. 13, 1971 43/4 5 Dec. 13, 1971 5V4 6*4 Dec. 13, 1971 ey4 Dallas................................................... 4% Dec. 24, 1971 4V4 5 Dec. 24, 1971 5*4 6*4 Dec. 24, 1971 6% San Francisco.................................... 41/2 Dec. 13, 1971 4V4 5 Dec. 13, 1971 5V4 6*4 Dec. 13, 1971 6% i 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*4 1*4 1959—Mar. 6..................... 2*4-3 3 1969—Apr. 4..................... 5*4-6 6 16..................... 3 3 8...................... 6 6 1955—Apr. 14............. 1*4-1% 11/2 May 29..................... 3 -31/2 3*4 15............. 11/2-1% iy4 June 12..................... 3*4 3*4 May 2............. 1% 1% Sept. 11..................... 31/2-4 4 1970—Nov. 11..................... 534-6 6 Aug. 4............. l%-2*4 1% 18..................... 4 4 13..................... 534-6 534 5............. l%-2*4 2 16..................... 534 534 N Se o p v t . . 1 1 1 9 8 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 * 4 21 - - - 2 / 2 2 4 1 % % /2 2 2 2 2 * * * 4 4 4 1960—J A u u n g e . 1 1 1 3 2 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 * / 3 4 2 - * - - 3 4 4 4 *4 4 3 3 3 1 1/ /2 2 Dec. 1 4 1 1 . . . . . . . . .. . . . . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . .. . . . . . . . . . . . . . .. . . 5 51 * / 4 5 2 1 - - / 5 5 2 3 3 / 4 4 5 5 5 1 1 3 / / 4 2 2 23............. 21/2 21/2 Sept. 9..................... 3 3 1956— A A u p g r. . 2 2 3 1 0 4 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2% 3 * 3 4 4 - - - 3 3 3 2 2 3 3 3 3 4 4 1 1 9 9 6 64 3 — —J N u o ly v . 2 2 3 1 4 6 0 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 3 * 1 - 4 / 3 2 - * 4 4 4 4 3 3 1 * / 4 2 1971—Jan. 2 2 1 1 8 2 9 5 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 5 5 5 *4 5 5 - * - - 5 5 5 4 1 * * / 4 4 2 5 5 5 5 5 * * * 4 4 4 1957—Aug. 9............. 3 -3*4 3 Feb. 13..................... 434-5 5 2 3 31/2 31/2 1965—Dec. 6..................... 4 -41/2 4*4 19..................... 434 434 N D o ec v . . 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 -31/2 3 3 1967—Apr. 1 7 3. . . . . . . . . . . . . . . . . . . . . . . .. .. .. .. . . . . . . . . . . . 4 41 - / 4 2 *4 4 4 1/2 July 2 16 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 34-5 5 5 1958—Jan. 22............. 2%-3 3 14...................... 4 4 Nov. 11..................... 434-5 5 2 4 23/4-3 234 Nov. 20..................... 4 -4*4 4*4 19..................... 434 434 A M p a r r . . 2 1 1 7 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 * * 34 4 2 4 1 - - - / 2 3 4 2 3 * 4 4 2 2 2 1 * * * % 4 4 4 1968—Mar. 2 2 1 7 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4* 4 5 4 * -5 4 4 4 5 1 1 / / 2 2 Dec. 2 1 1 4 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 * * 4 4 4 1 - - / 4 4 2 3 3 4 4 4 4 4 1 1 3 / / 4 2 2 A M u a g y . 1 9 5. . . . . . . . . . . . . . . . . . . . . . . . . . 134 m -2 1 1 % % Apr. 2 1 6 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 - * 5 4 *4 5 51 * / 4 2 In effect June 30, 1972........ 4*4 41/2 Sept. 12............. 134-2 2 Aug. 16..................... 5*4-51/2 51/2 23............. 2 2 30..................... 5*4 51/4 Oct. 24............. 2 -2*4 2 Dec. 18..................... 51/4-51/2 51/2 Nov. 7............. 2*4 21/2 20..................... 51/2 5*4 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42 and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ JULY 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 2,7 deposits 2,4,7 (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 i $ U 5 n c m d it e i y l r ­ ba $ n O 5 k v m s e i r l ­ $ U 5 n m de b il r a ­ nk $ s O 5 v m e i r l ­ d S e in i p a t g s v o s ­ s­ $ U 5 ti n m m d e e il r ­ d ep $ O 5 o s v m i e ts i r l ­ lion lion lion lion lion lion In effect Dec. 31, 1949. 22 18 12 1966—July 14,21. 6 16% 6 12 64 Sept. 8, 15. 1951—Jan. 11,16......... 23 19 13 Jan. 25, Feb. 1. 24 20 14 1967—Mar. 2. 3% 3% 1953—July 9,1........... 22 19 13 Mar. 16. 3 3 1954—June 24, 16......... 21 July 29, Aug. 1. 20 18 12 1968—Jan. 11,18.... 16% 17 12 12% 1958—Feb. 27, Mar. 1. 19% 17% Mar. 20, Apr. 1. 19 17 11* 1969—Apr. 17............ 17 17% 12% 13 Apr. 17................ 18% Apr. 24................ 18 16% 1970—Oct. 1................. 1960—Sept. 1................ 17% Nov. 24................ 12 In effect June 30, 1972. 17 17% 12% 13 Dec. 1................ 16% 1962—July 28................ (3) Present legal Oct. 25, Nov. 1. requirement: Minimum........ 10 7 3 3 3 Maximum........ 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central of a member bank. For details concerning these requirements, see Regula­ reserve or reserve city banks and the second to the change at country tions D and M and appropriate supplements and amendments thereto. banks. For changes prior to 1950 see Board’s Annual Reports. 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation 2 Demand deposits subject to reserve requirements are gross demand club accounts became subject to same requirements as savings deposits. deposits minus cash items in process of collection and demand balances 6 See preceding columns for earliest effective date of this rate. due from domestic banks. 7 For amendment to Regulation D which will change structure of 3 Authority of the Board of Governors to classify or reclassify cities member bank reserve requirements effective with the weekly period begin­ as central reserve cities was terminated effective July 28, 1962. ning Sept. 21, 1972, see “Announcements” in this Bulletin. 4 Since Oct. 16, 1969, member banks have been required under Regula­ tion M to maintain reserves against balances above a specified base due Note.—All required reserves were held on deposit with F.R. Banks from domestic offices to their foreign branches. Effective Jan. 7, 1971, the June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member applicable reserve percentage was increased from the original 10 per cent banks were allowed to count part of their currency and coin as reserves; to 20 percent. Regulation D imposes a similar reserve requirement on bor­ effective Nov. 24, 1960, they were allowed to count all as reserves. For rowings above a specified base from foreign banks by domestic offices further details, see Board’s Annual Reports. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) T U G T U G --------' 1937—Nov. 1 1945—Feb. 4................. 40 50 1945—Feb. 5 July 4.................. 50 50 July 5 1946—Jan. 20.................. 75 75 1946—Jan. 21 1947—Jan. 31.................. 100 100 1947—Feb. 1 1949—Mar. 29.................. 75 75 1949—Mar. 30 1951—Jan. 16.................. 50 50 1951—Jan. 17 1953—Feb. 19.................. 75 75 1953—Feb. 20 1955—Jan. 3.................. 50 50 1955—Jan. 4 Apr. 22.................. 60 60 Apr. 23 1958—Jan. 15.................. 70 70 1958—Jan. 16 Aug. 4.................. 50 50 Aug. 5 Oct. 15.................. 70 70 Oct. 16 1960—July 27.................. 90 90 1960—July 28 1962—July 9.................. 70 70 1962—July 10 1963—Nov. 5.................. 50 50 1963—Nov. 6 1968—Mar. 10.................. 70 70 1968—Mar. 11 June 7................. 70 50 70 June 8 1970—May 5.................. 80 60 80 1970—May 6 1 1971—Dec. 3................. 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 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 o MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits............. 41/2 12 months or more.., 4 4 Other time deposits:2 Less than 12 months. 3% 3% Multiple maturity:3 30-89 days........... 4 41/2 90 days-1 year... 5 1 year to 2 years., 5 51/2 2 years and over.. 5y4 Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more.. .. 4 1 year to 2 years.. 5V4 5*4 6 months to 12 months 3*4 4‘/2 2 years and over. . 5*4 90 days to 6 months... 21/2 $100,000 and over: Less than 90 days......... 1 4 30-59 days.......... 5*4 (4) (30-89 days) 60-89 days.......... 5V4 (4) 90-179 days........ 5V2 5*4 6 6V4 180 days to 1 year. 7 1 year or more. .. W/4 71/2 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*4 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 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 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 April 19, 1972 Four weeksending May 17, 1972 Gross demand—Total.... 198,775 41,653 8,238 71,310 77,574 Gross demand—Total. .. 200,548 43,046 8,265 71,793 77,445 Interbank...................... 25,551 11,372 1,496 9,437 3,246 Interbank..................... 25,691 11,852 1,345 9,365 3,129 U.S. Govt...................... 6,106 1,156 297 2,392 2,261 U.S. Govt..................... 8,976 1,817 443 3,715 3,002 Other............................. 167,118 29,126 6,445 59,482 72,066 165,881 29,377 6,477 58,713 71,314 Net demand 1................... 152,675 27,047 6,487 54,434 64,707 Net demand 1................. 153,161 27,418 6,607 54,418 64,718 Time.................................. 218,957 26,106 7,726 79,080 106,045 Time................................. 221,754 26,997 7,908 80,581 106,268 Demand balances due Demand balances due from domestic banks... 13,361 3,431 162 684 084 from domestic banks. . 12,957 3,218 150 2,667 6,922 Currency and coin........... 5,387 424 103 695 166 Currency and coin.......... 5,533 431 107 1,736 3,258 Balances with F.R. Balances with F.R. Banks............................. 27,046 5,529 1,374 11,058 9,085 Banks........................... 27,322 5,573 1,395 11,149 9,206 Total reserves held........... 32,433 5,953 1,477 12,753 12,251 Total reserves held.......... 32,855 6,004 1,502 12,885 12,464 Required............................ 32,242 5,940 1,470 12,734 12,098 Required........................... 32,670 5,987 1,494 12,870 12,319 Excess................................ 191 13 7 19 153 185 17 8 15 145 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 □ JULY 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 June 28 June 21 June 14 June 7 May 31 June 30 May 31 June 30 Assets 10,303 10,303 10,303 10,303 10,303 10,303 10,303 10,075 400 400 400 400 400 400 400 400 315 316 315 315 318 319 318 283 Loans: 475 181 65 136 1,594 131 1,594 446 Acceptances: 71 66 73 76 78 73 78 62 77 54 65 65 Federal agency obligations: 1,118 1,118 1,118 1,118 979 1,106 979 10 12 25 25 U.S. Govt, securities: Bought outright: Bills......................................................................... 30,806 30,282 30,622 30,622 30,504 31,258 30,504 27,929 Certificates—Other................................................. Notes....................................................................... 36,596 36,448 36,448 36,448 36,448 36,596 36,448 34,354 Bonds....................................................................... 3,502 3,450 3,540 3,540 3,540 3,502 3,540 3,235 Total bought outright................................................ i 70,904 i 70,180 i 70,610 i 70,160 i 70,492 i 71,356 i 70,492 65,518 Held under repurchase agreements........................... 62 148 1,115 1,115 70,966 70,180 70,610 70,758 71,607 71,356 71,607 65,518 Total loans and securities.............................................. 72,717 71,545 71,866 72,154 74,348 72,666 74,348 66,026 Cash items in process of collection.............................. *1 1,510 *12,636 *12,500 *11,131 11,093 *10,539 11,093 10,745 163 163 163 163 163 163 163 141 Other assets: Denominated in foreign currencies........................... 22 23 23 57 57 18 57 96 IMF gold deposited 2................................................ 148 857 826 754 673 625 809 625 701 *96,287 *96,212 *96,324 *95,196 97,307 *95,217 97,307 88,615 Liabilities 54,669 54,534 54,651 54,476 54,249 54,698 54,249 51,452 Deposits: *27,480 *26,974 *27,590 *27,135 29,538 *27,508 29,538 24,550 U.S. Treasurer—General account............................. 2,923 2,954 2,121 2,356 2,144 2,344 2,144 1,274 194 186 126 145 157 257 157 199 Other: IMF gold deposited 2............................................ 148 All other................................................................. 585 554 533 615 584 836 584 540 *31,182 *30,668 *30,370 *30,251 32,423 *30,945 32,423 26,711 Deferred availability cash items.................................... 8,071 8,720 9,080 8,027 8,247 7,215 8,247 8,196 Other liabilities and accrued dividends........................ 589 562 559 570 580 580 580 546 Total liabilities............................................................... *94,511 *94,484 *94,660 *93,324 95,499 *93,438 95,499 86,905 Capital accounts Capital paid in............................................................... 773 772 770 771 768 772 768 729 Surplus............................................................................ 742 742 742 742 742 742 742 702 Other capital accounts.................................................. 261 214 152 359 298 265 298 279 Total liabilities and capital accounts........................... *96,287 *96,212 *96,324 *95,196 97,307 *95,217 97,307 88,615 Contingent liability on acceptances purchased for foreign correspondents.............................................. 252 252 252 256 261 251 261 230 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................j 29,069 28,989 28,805 28,668 28,594 28,579 28,594 17,980 ' Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 58,172 58,103 57,976 57,704 57,575 58,287 57,575 54,495 Collateral held against notes outstanding: Gold certificate account............................................ 1,945 1,945 1,945 1,945 1,945 1,945 1,945 3,170 U.S. Govt, securities.................................................. 57,495 57,455 57,245 57,445 57,235 57,495 57,235 52,945 Total collateral............................................................... 59,440 59,400 59,190 59,390 59,180 59,440 59,180 56,115 i See note 6 on p. A-5. 2 See note 1(b) to table at top of p. A-77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JUNE 30, 1972 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a i a t n s y ­ Dallas F c S i r s a a c n n o ­ Assets 10,303 603 2,572 536 861 960 522 1,557 408 189 424 274 1,397 Special Drawing Rights certif. acct.... 400 23 93 23 33 36 22 70 15 7 15 14 49 1,004 119 206 63 62 88 197 42 24 22 44 41 96 319 13 22 12 37 40 37 47 18 9 35 15 34 Loans: Secured by U.S. Govt, and agency 110 19 31 7 1 29 2 U 6 4 21 20 1 Acceptances: Bought outright............................... 73 73 Federal agency obligations: Bought outright................................ 1,106 52 279 59 84 80 61 179 42 23 45 51 151 U.S. Govt, securities: Bought outright................................ 171,356 3,366 17,996 3,791 5,440 5,135 3,947 11,544 2,710 1,472 2,909 3,325 9,721 72,666 3,437 18,379 3,857 5,524 5,216 4,008 11,752 2,754 1,526 2,961 3,376 9,876 Cash items in process of collection... 14,090 779 2,785 738 939 925 1,574 2,164 714 523 886 940 1,123 163 2 8 4 27 13 16 17 15 24 17 12 8 Other assets: Denominated in foreign currencies.. 18 1 21 1 2 1 2 3 1 1 1 1 3 All other........................................... 809 63 195 45 58 57 43 122 ' 28 18 31 35 114 Total assets......................................... 99,772 5,040 24,261 5,279 7,543 7,336 6,421 15,774 3,977 2,319 4,414 4,708 12,700 Liabilities F.R. notes................................. 55,702 2,963 13,731 3,288 4,434 4,924 2,820 9,491 2,173 966 2,150 2,140 6,622 Deposits: Member bank reserves..................... 27,508 1,123 7,027 1,136 1,865 1.448 1,861 3,661 972 690 1,246 1,662 4,817 U.S. Treasurer—General account.. 2,344 166 427 121 189 52 206 312 198 171 150 144 208 Foreign.............................................. 257 11 372 13 23 13 17 37 8 6 11 14 32 Other: All other....................................... 859 2 655 57 1 12 29 74 1 1 2 2 23 Total deposits....................................... 30,968 1,302 8,181 1,327 2,078 1,525 2,113 4,084 1,179 868 1,409 1,822 5,080 Deferred availability cash items.......... 10,743 668 1,741 541 829 748 1,338 1,827 545 433 757 626 690 Other liabilities and accrued dividends 580 29 144 33 45 41 33 93 22 13 23 26 78 Total liabilities..................................... 97,993 4,962 23,797 5,189 7,386 7,238 6,304 15,495 3,919 2,280 4,339 4,614 12,470 Capital accounts Capital paid in..................................... 772 33 200 39 71 40 53 119 25 18 33 42 99 Surplus.................................................. 742 34 193 38 68 38 50 111 25 17 32 41 95 Other capital accounts......................... 265 11 71 13 18 20 14 49 8 4 10 11 36 Total liabilities and capital accounts.. 99,772 5,040 24,261 5,279 7,543 7,336 6,421 15,774 3,977 2,319 4,414 4,708 12,700 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 251 11 465 13 23 13 17 37 9 6 11 14 32 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 58,287 3,124 14,492 3,373 4,626 5,092 3,041 9,738 2,263 1,009 2,237 2,287 7,005 Collateral held against notes out­ standing : QqJJ certificate account • ............ 1,945 150 300 350 285 700 155 5 U.S. Govt, securities....................... 57,495 3,000 14,650 3,150 4,400 4,855 3,100 9,300 2,180 1,030 2,300 2,330 7,200 Total collateral..................................... 59,440 3,150 14,650 3,450 4,750 5,140 3,100 10,000 2,335 1,030 2,300 2,335 7,200 1 See note 6 on page A-5. 4 After deducting $186 million participations of other Federal Reserve 2 After deducting $17 million participations of other Federal Reserve Banks. Banks. 3 After deducting $185 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 □ JULY 1972 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G h p r u a o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G h p r u a o s r s e ­ s s G sa r l o e s s s m re s a d h t o i e u f r m t r s i p , ty ­ c G h p r u a o s r s e ­ s s G sa r l o e s s s m E s a h x t o i u c r f r h ts i . ty tions 1971—May. 1,291 248 1,163 248 464 46 -136 June. 1,955 1,165 37 1.893 1,165 37 82 38 -82 July.. 2,067 1,617 127 2,067 1,617 127 Aug.. 1,818 1,024 1,709 1,024 991 84 -444 Sept.. 2,102 1,088 83 1,818 1,088 83 46 104 189 -104 Oct.. 772 1,133 772 1,133 Nov.. 1,883 1,070 '266' 1,129 1,070 ’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 Mar.. 2,009 298 155 1,829 298 155 11 92 Apr.. 2,666 1,478 135 2,254 1,478 133 7 -2 255 May. 475 291 475 291 2,626 -2,626 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal agency acceptances (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net 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 f i h t t a y 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 f i h t t a y s . ­ c G h p r u a o s r s e ­ s s G sa r l o e s s s G se i o t c i v u e t s r , ­ r O ig u h t t ­ R a m c g h e e r p a n e u s e t e r s ­ ­ r O i n g u e h t t t ­ , m r a c e g h n e p r a n e u e s t t e r s e ­ ­ , change1 1971—May. 82 -327 4,076 4,076 1,043 48 1,099 June . 11 14 1,165 1,165 754 -1 -48 705 July.. 3,044 3,044 323 -7 316 Aug.. 16 -547 2,184 1,951 1,027 69 -3 55 1,148 Sept.. 34 14 3,697 3,930 698 61 -69 -1 -55 634 O N c o t v .. .. . 267 i j920 58 150 2 5 , , 6 00 1 3 6 2 5 , , 6 00 1 3 6 -3 6 6 1 1 3 24 35 4 6 1 -3 8 2 6 6 2 Dec.. 67 6 4,830 3,607 2,401 145 101 22 181 2,850 1972—Jan.. 191 23 4,722 5,945 -666 165 -101 -4 -181 -787 Feb.. 52 -2,260 1,694 1,694 -1,854 77 -12 -1,789 Mar.. 31 47 2,695 2,022 2,229 83 16 19 61 2,408 Apr.. 126 23. 2,625 3,298 380 169 -16 1 -61 472 May. 1,115 1,299 25 -4 65 1,386 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d io o d f Total s P t o er u l n in d g s s A c u h s il t l r in ia g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i t l n 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—Mar.............. 34 * 1 * 27 1 5 Apr............... 34 * 1 * 27 1 5 May............. 94 * 1 * 87 1 5 June............. 96 * 2 * 87 1 6 July.............. 23 * 2 * 12 1 8 Aug.............. 23 * 2 * 12 1 8 Sept.............. 23 * 2 * 12 1 8 Oct............... 30 * 9 * 12 1 8 Nov.............. 15 * 4 * 2 1 8 Dec.............. 18 3 3 * 2 1 8 1972—Jan................ 17 3 3 * 2 1 8 Feb............... 17 3 3 * 2 1 8 Mar.............. 17 3 3 * 2 1 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 June 28 June 21 June 14 June 7 May 31 June 30 May 31 June 30 475 181 65 136 1,592 131 1,592 446 Within 15 days............................................................ 471 177 61 133 1,590 127 1,590 444 16 days to 90 days...................................................... 4 4 4 3 2 4 2 2 91 days to 1 year........................................................ Acceptances—T otal........................................................ 148 66 73 130 143 73 143 62 Within 15 days............................................................ 97 24 28 87 90 16 90 15 16 days to 90 days...................................................... 51 42 45 43 53 57 53 47 91 days to 1 year........................................................ U.S. Government securities—Total.............................. 70,966 70,180 70,610 70,758 71,607 71,356 71,607 65,518 Within 15 days*.......................................................... 4,737 4,630 4,079 4,297 5,059 2,734 5,059 3,268 16 days to 90 days..................................................... 15,827 15,662 16,411 16,524 15,894 17,292 15,894 13,298 91 days to 1 year........................................................ 19,132 18,815 19,047 18,864 19,581 20,060 19,581 18,552 Over 1 year to 5 years................................................ 24,108 24,039 24,039 24,039 24,039 24,108 24,039 23,600 Over 5 years to 10 years............................................. 5,913 5,804 5,804 5,804 5,804 5,913 5,804 5,907 Over 10 years.............................................................. 1,249 1,230 1,230 1,230 1,230 1,249 1,230 893 Federal agency obligations—Total............................... 1,128 1,118 1,118 1,130 1,004 1,106 1,004 Within 15 days*.......................................................... 42 32 12 12 60 20 60 16 days to 90 days...................................................... 123 123 142 120 78 123 78 91 days to 1 year........................................................ 162 162 163 180 221 162 221 Over 1 year to 5 years................................................ 480 480 480 494 409 480 409 Over 5 years to 10 years............................................ 197 197 197 196 132 197 132 Over 10 years.............................................................. 124 124 124 128 104 124 104 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 ^ S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1971—May............................. 11,316.5 5,033.8 2,606.3 6,282.7 3,676.4 77.8 174.3 79.2 53.9 44.0 June............................. 11,730.8 5,244.0 2,691.0 6,486.8 3,795.9 80.4 184.0 81.3 55.2 45.0 July............................... 11,703.8 5,210.2 2,681.0 6,493.6 3,812.6 80.0 184.4 80.4 55.0 45.0 Aug.............................. 12,093.8 5,408.9 2,783.7 6,684.8 3,901.2 81.6 189.0 82.8 55.9 45.4 Sept.............................. 12,202.2 5,570.3 2,757.5 6,631.9 3,874.4 82.2 190.6 82.3 55.6 45.2 Oct................................ 12,221.4 5,755.8 2,683.2 6,465.6 3,782.5 82.6 199.5 80.0 54.3 44.2 Nov.............................. 12,915.7 5,918.9 2,945.2 6,996.9 4,051.6 86.4 203.7 87.2 58.1 46.7 Dec............................... 12,383.2 5,523.3 2,859.8 6,859.9 4,000.2 83.7 196.1 85.2 57.3 46.4 1972—Jan................................ M2,530.7 5,687.0 2,803.1 r6,843.7 r4,040.6 83.9 205.3 82.0 56.3 46.2 Feb............................... r13,027.8 6,013.9 2,913.1 '7,013.9 r4,100.9 84.5 205.1 82.6 56.2 45.8 Mar.............................. M2,785.5 5,631.4 2,932.9 *•7,154.2 '•4,221.2 83.0 195.2 83.3 57.2 47.0 Apr............................... 13,175.9 5,801.4 3,053.1 7,374.4 4,321.3 85.6 202.1 87.3 58.9 47.9 May............................. 13,415.3 5,939.2 3,148.8 7,476.0 4,327.2 85.6 200.8 89.8 58.8 47.0 ^ Revised data. Back data will be published in a forthcoming Bulletin. Note.—Total SMSA’s includes some cities and counties not designated 1 Excludes interbank and U.S. Govt, demand deposit accounts. as SMSA’s. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ JULY 1972 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir ­ ­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939...................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941...................... 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945..................... 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947..................... 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950..................... 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955..................... 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1959..................... 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960...................... 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961...................... 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962...................... 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963...................... 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964...................... 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965..................... 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966.................. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967...................... 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968...................... 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969...................... 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970...................... 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—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 Mar........... 60,388 41,182 6,860 2,279 135 3,106 9,110 19,692 19,205 5,275 13,490 200 233 2 4 Apr........... 60,535 41,140 6,902 2,276 135 3,094 9,028 19,705 19,395 5,351 13,606 199 232 2 4 May.......... 61,702 42,056 6,969 2,334 135 3,170 9,243 20,204 19,647 5,425 13,785 198 232 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 May 31, against Treasury F.R. Banks 1972 gold and cash Banks and silver and Agents May Apr. May certificates Agents 31 30 31 Gold................................................................................. 10,410 (10,303) 107 Gold certificates.............................................................. (10,303) 210,302 1 Federal Reserve notes.................................................... 57,576 131 3,324 54,120 53,019 50,377 Treasury currency—Total.............................................. 8,020 120 319 7,582 7,516 7,026 Dollars......................................................................... 705 29 50 626 618 482 Fractional coin............................................................ 6,699 88 268 6,343 6,285 5,928 United States notes..................................................... 323 2 320 321 320 In process of retirement 3........................................... 293 293 293 296 Total—May 31, 1972.................................................... 4 76,006 (10,303) 358 10,302 3,644 61,702 Apr. 30, 1972.................................................... 4 74,888 (9,475) 401 9,474 4,477 60,535 May 31, 1971.................................................... 4 71,522 (10,075) 494 10,074 3,551 57,403 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

JULY 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 M% M2 Mz Mi (Mi plus time (Mi plus deposits Mi (Mi plus time (M2 plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other than institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 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 214.8 418.2 633.9 221.2 423.5 637.2 1971—Jun e 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........ 233.5 480.1 745.9 231.3 478.7 744.9 Apr......... 235.0 483.0 752.7 236.1 485.4 755.6 May....... 235.7 486.4 759.1 231.6 483.6 756.2 June*... . 236.5 490.3 765.7 234.7 488.8 756.1 Week ending— May 31. 236.3 488.4 231.6 484.8 June 7. 236.6 489.3 234.3 487.8 14. 236.6 490.0 235.8 490.0 21* 237.3 491.5 235.1 489.3 28* 235.8 490.5 232.8 487.1 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Month Non­ Non­ Govt, or bank bank depos­ week Cur­ De­ Time and savings thrift Cur­ De­ Time and savings thrift its 5 rency mand deposits institu­ rency mand deposits institu­ depos­ tions 4 depos­ tions 4 its its CD’s 3 Other Total CD’s 3 Other Total 1968—De c 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—De c 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—De c 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—Jun e 51.1 174.5 29.4 225.0 254.4 237.2 51.0 172.7 28.4 225.4 253.8 238.0 5.3 July......... 51.6 175.8 30.4 225.9 256.4 240.4 51.9 174.1 29.5 226.0 255.5 241.1 6.8 Aug......... 51.7 176.3 30.8 226.5 257.3 243.1 51.9 173.0 31.2 226.9 258.1 242.8 6.8 Sept........ 51.9 175.7 31.6 228.0 259.6 245.6 51.9 174.3 32.1 228.1 260.3 245.2 7.5 Oct.......... 52.2 175.5 32.7 230.6 263.3 248.3 52.2 175.3 33.6 230.5 264.1 247.9 5.3 Nov......... 52.2 175.5 32.2 233.1 265.3 250.8 52.8 176.9 33.7 231.8 265.5 250.0 3.9 Dec......... 52.5 175.7 33.4 236.4 269.9 253.4 53.5 181.5 33.9 235.1 269.0 253.2 6.7 1972—Ja n 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 33.8 244.3 278.1 261.8 52.6 176.4 33.1 243.7 277.3 261.4 7.2 Mar........ 53.7 179.9 33.4 246.5 279.9 265.8 53.2 178.1 33.3 247.5 280.8 266.2 7.7 Apr., . . . 54.0 180.9 34.7 248.1 282.8 269.7 53.6 182.6 33.8 249.3 283.1 270.2 7.6 May. . . . 54.4 181.4 36.3 250.7 287.0 272.6 54.0 177.6 35.1 251.9 286.9 272.8 10.4 June*___ 54.7 181.9 37.1 253.8 290.9 275.4 54.6 180.0 35.8 254.2 289.9 276.2 6.7 Week ending— May 31. 54.5 181.8 36.7 252.1 288.7 54.0 177.6 35.6 253.2 288.8 8.9 June 7. 54.6 182.0 36.8 252.7 289.5 54.7 179.6 36.1 253.4 289.5 6.1 14. 54.7 181.9 37.3 253.4 290.7 54.8 181.0 35.8 254.2 290.0 4.1 21* 54.7 182.6 37.0 254.2 291.2 54.7 180.4 35.5 254.3 289.7 8.5 28* 54.8 181.0 37.3 254.6 291.8 54.2 178.5 35.8 254.4 290.2 7.8 1 Includes, in addition to currency and demand deposits, savings de­ Note.—For description of revised series and for back data, see pp. 880posits, time deposits open account, and time certificates of deposits other 93 of the November Bulletin. than negotiable time certificates of deposit issued in denominations of Average of daily figures. Money stock consists of (1) demand deposits $100,000 or more by large weekly reporting commercial banks. at all commercial banks other than those due to domestic commercial 2 Includes M2, plus the average of the beginning and end of month banks and the U.S. Govt., less cash items in process of collection and F.R. deposits of mutual savings banks and savings and loan shares. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside 3 Negotiable time certificates of deposit issued in denominations of the Treasury, F.R. Banks, and vaults of all commercial banks. Time de­ $100,000 or more by large weekly reporting commercial banks. posits adjusted are time deposits at all commercial banks other than those 4 Average of the beginning and end-of-month deposits of mutual savings due to domestic commercial banks and the U.S. Govt. banks and savings and loan shares. 5 At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANK RESERVES; BANK CREDIT □ JULY 1972 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. items 4 Period Non- Total bor- Re­ Avail­ Demand Demand rowed quire d able2 Time Time Total and U.S. Total and U.S. S.A. N.S.A. savings Private Govt. savings Private Govt. 1968—Dec.. 27.25 26.47 26.89 24.96 297.6 164.2 128.3 5.1 301.2 163.8 133.3 4.1 304.6 308.1 1969—Dec.. 27.98 26.83 27.75 25.25 285.4 150.3 129.8 5.3 288.8 149.7 134.6 4.6 305.4 308.8 1970—Dec.. 29.13 28.76 28.92 26.75 319.0 178.8 133.8 6.4 322.8 178.2 138.7 6.0 330.6 334.4 1971—June.. 30.53 30.11 30.33 28.20 342.3 198.2 139.8 4.3 340.2 197.6 138.2 4.4 346.7 344.7 July. . 30.64 29.91 30.47 28.36 345.5 199.8 140.6 5.1 344.1 198.9 139.4 5.7 349.8 348.4 Aug.. 30.74 29.98 30.57 28.52 347.1 200.3 141.0 5.7 344.6 200.8 138.1 5.8 351.0 348.6 Sept.. 31.07 30.56 30.91 28.50 349.2 202.1 140.5 6.6 348.2 202.7 139.2 6.3 353.3 352.2 Oct... 30.88 30.48 30.69 28.59 349.8 205.2 139.9 4.7 350.2 205.9 139.9 4.3 354.7 355.0 Nov.. 30.97 30.54 30.75 28.73 352.7 206.4 140.9 5.4 351.6 206.9 141.6 3.2 358.0 357.0 Dec... 31.25 31.08 31.10 28.84 357.9 210.2 141.5 6.2 362.2 209.7 146.7 5.7 361.9 366.2 1972—Jan... 31.77 31.68 31.56 29.06 360.9 213.7 141.0 6.3 366.3 213.4 146.9 6.0 364.9 370.3 Feb... 31.62 31.58 31.47 29.24 363.1 216.4 142.9 3.7 363.4 215.9 141.5 6.1 366.7 367.1 Mar.. 32.03 31.93 31.82 29.63 368.4 217.4 144.9 6.1 368.0 218.1 143.4 6.6 372.1 371.8 Apr. . 32.64 32.53 32.47 29.80 372.7 219.8 145.5 7.4 373.1 219.8 146.8 6.5 376.3 376.6 May.. 32.83 32.73 32.69 29.95 377.1 223.4 146.3 7.4 374.9 223.1 142.9 8.8 380.9 378.6 June*\ 33.06 32.97 32.84 30.17 318.7 226.1 141.2 5.3 376.4 225.2 145.6 5.7 382.4 380.2 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. Data for effect of changes in Regulations D and M. Required reserves were in­ 1968 are not comparable with later data due to the withdrawal from the creased by $660 million effective Apr. 16, 1969, and $400 million, effective System on Jan. 2, 1969, of a large member bank. Oct. 16, 1969. Required reserves were reduced by $500 million (net) 4 Total member bank deposits subject to reserve requirements, plus effective Oct. 1, 1970. Euro-dollar borrowings, bank-related commercial paper, and certain 2 Reserves available to support private nonbank deposits are defined other nondeposit items. This series for deposits is referred to as “the ad­ as (1) required reserves for (a) private demand deposits, (b) total time justed bank credit proxy.” and savings deposits, and (c) nondeposit sources subject to reserve re­ quirements, and (2) excess reserves. This series excludes required reserves Note.—Due to changes in Regulations M and D, member bank re­ for net interbank and U.S. Govt, demand deposits. serves include reserves held against nondeposit funds beginning Oct. 16, 3 Averages of daily figures. Deposits subject to reserve requirements 1969. Back data may be obtained from the Banking Section, Division of include total time and savings deposits and net demand deposits as defined Research and Statistics, Board of Governors of the Federal Reserve by Regulation D. Private demand deposits include all demand deposits System, Washington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial and and industrial invest­ Plus U.S. invest­ Plus U.S. ments!,2 Total i,2 loans Plus Treas­ Other2 ments1,2 Total1,2 loans Plus Treas­ Other2 sold1,3 loans ury sold1*3 Total loans ury sold3 sold3 1965—Dec. 31.. 300.1 198.2 69.5 57.1 44.8 307.6 203.2 71.4 59.5 44.9 1966—Dec. 31.. 316.1 213.9 78.6 53.5 48.7 324.0 219.0 80.6 56.2 48.8 1967—Dec. 30.. 352.0 231.3 86.2 59.3 61.4 360.8 236.8 88.4 62.5 61.5 1968—Dec. 31.. 390.6 258.2 95.9 61.0 71.4 400.4 264.4 98.4 64.5 71.5 1969—Dec. 314. 402.1 279.4 283.3 105.7 51.5 71.2 412.1 286.1 290.0 108.4 54.7 71.3 1970—Dec. 31.. 435.9 292.0 294.9 109.6 111.7 58.0 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—June 30.. 461.1 5301.7 5304.8 112.1 114.0 62.8 596.6 464.8 5307.1 5310.2 114.4 116.3 60.3 597.4 July 28.. 463.7 304.1 307.0 113.2 115.0 61.6 98.0 463.0 305.6 308.4 113.4 115.2 59.3 98.2 Aug. 25.. 468.4 309.7 312.4 115.2 117.0 60.9 97.8 466.1 309.3 312.0 114.2 116.0 58.7 98.1 Sept. 29.. 472.4 313.0 316.0 116.2 118.1 59.9 99.5 472.0 313.4 316.4 115.9 117.8 58.7 99.9 Oct. 27.. 477.2 317.0 319.9 116.6 118.4 59.1 101.1 476.5 315.1 318.0 115.6 117.4 60.0 101.5 Nov. 24.. 479.8 318.7 321.6 116.0 117.8 58.8 102.2 479.9 317.3 320.1 115.6 117.4 61.0 101.6 Dec. 31.. 485.7 320.6 323.4 115.5 117.1 60.7 104.5 497.9 328.3 331.1 118.5 120.1 64.9 104.7 1972—Jan. 26.. 491.4 325.7 328.7 116.4 118.1 59.7 106.0 490.1 322.7 325.6 115.2 116.9 62.7 104.8 Feb. 23.. 496.6 328.5 331.5 117.3 119.0 61.0 107.1 492.4 324.3 327.3 116.1 117.8 61.9 106.2 Mar. 29p . 504.3 333.3 336.1 118.1 119.9 62.2 108.7 500.7 330.0 332.8 118.1 119.9 62.4 108.4 Apr. 26^ . 505.8 334.8 337.5 119.4 121.1 62.4 108.6 505.1 334.1 336.7 119.6 121.3 61.6 109.4 May 31^ . 513.8 340.3 342.8 120.7 122.2 62.8 110.7 511.4 340.0 342.4 120.3 121.8 61.0 110.5 June 30p . 514.0 341.2 343.5 6119.4 6120.8 62.8 110.0 518.2 347.4 349.7 6121.8 6123.2 59.9 110.9 1 Adjusted to exclude domestic commercial interbank loans. 5 Beginning June 30, 1971, Farmers Home Administration insured notes 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated totaling approximately $700 million are included in “Other securities” for payment of personal loans were deducted as a result of a change in rather than in “Loans.” Federal Reserve regulations. 6 Beginning June 30, 1972, commercial and industrial loans were re­ Beginning June 30, 1966, CCC certificates of interest and Export-Import duced by about $400 million as a result of loan reclassifications at one Bank portfolio fund participation certificates totaling an estimated large bank. $1 billion are included in “Other securities” rather than “Loans.” Note.—For monthly data on total loans and investments 1959-70, see 3 Loans sold outright by commercial banks to own subsidiaries, Dec. 1971 Bulletin, pp. 974-75. For monthly data, 1948-58, see Aug. foreign branches, holding companies, and other affiliates. 1968 Bulletin, pp. A-94-A-97. For a description of the seasonally ad­ 4 Beginning June 30, 1969, data revised to include all bank-premises justed series see the following Bulletins: July 1962, pp. 797-802; July 1966, subsidiaries and other significant majority-owned domestic subsidiaries; pp. 950-55; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. For earlier data include commercial banks only. Also, loans and investments monthly data on commercial and industrial loans, 1959-71, see July 1972 are now reported gross, without valuation reserves deducted, rather than Bulletin, p. A-109. For description of series, see “Announcements” in this net of valuation reserves as was done previously. For a description of the Bulletin. Data are for last Wednesday of month except for June 30 and revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in this table Dec. 31; data are partly or wholly estimated except when June 30 and Dec. beginning January 1959 have been revised to include valuation reserves. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 o BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and canital Total Bank credit assets, Date c c s G S e a a to r D t n o e t c d l i s R f d k i 1 ­ T r s c o e u r i t u n n a e u r g c a r y n t ­ ­ y s d ­ ­ Total Lo n a e 2 n t s Total U.S. s C a T a v o r n i m e n d a g l s . s ury R F s e e e s d c e u e r r r v i a t e l ies Other 3 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 a p 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 a s n i l c ts y C c m o a a n a u n p i c e n s i d ­ t c t t a s . l , banks Banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30................... 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,008 184,384 14,624 1967—Dec. 30................... 11,982 6,784 468,943 282,040 117,064 66,752 49,112 1,200 69,839 487,709 444,043 43,670 1968—Dec. 31.................... 10,367 6,795 514,427 311,334 121,273 68,285 52,937 51 81,820 531,589 484,212 47,379 1969—Dec. 315................. 10,367 6,849 532,663 335,127 115,129 57,952 57,154 23 82,407 549,879 485,545 64,337 1970—Dec. 31.................... 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971—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 7,600 622,200 369,500 133,600 63,300 67,800 2,500 119,100 640,300 571,600 68,800 Nov. 24................... 10,500 7,600 626,700 370,900 136,400 64,400 69,500 2,500 119,400 644,800 575,800 69,000 Dec. 31................... 10,532 7,627 650,677 386,010 141,547 68,198 70,804 2,545 123,120 668,837 604,415 64,423 1972—Jan. 26................... 10,500 7,700 642,600 380,600 138,400 66,000 69,900 2,500 123,600 660,800 593,000 67,900 Feb. 23................... 10,000 7,800 643,300 381,000 136,600 65,200 68,900 2,500 125,700 661,100 592,900 68,200 Mar. 29*................. 10,000 7,900 653,700 386,900 138,200 65,800 69,900 2,600 128,500 671,600 606,700 64,900 Apr. 26*................. 10,000 7,900 660,500 391,400 138,900 65,100 71,300 2,600 130,300 678,500 613,100 65,400 May 31*................. 10,800 8,000 665,300 395,000 138,600 64,400 71,600 2,600 131,700 684,100 619,400 64,700 June 28*................. 10,800 8,100 669,600 400,600 136,700 63,100 71,000 2,600 132,300 688,500 622,700 65,800 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n n u s c i k r d y ­ s e d ju e m D p s a a t o d e e n s ­ d ­ d i t 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 D p s a a t o d e e n s ­ d ­ d i t 7 s Total b m C a e n o r k c m s ia ­ l 8 b M sa a v n u i k t n u s g a s l 9 S P t a S e o v y m s i s t n a ­ g 3 l s n e F e i o g t n r 1 ­ , 0 T h c i u r n o a e r g l s a y d s h s ­ ­ s b c a a a o A v n n m i t d k n l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1 ,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315... 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970—Dec. 31___ 209,400 47,800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971—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.... 215,900 51,000 164,900 216,800 50,900 165,900 343,700 263,900 79,800 2,500 500 6,500 1,700 Nov. 24.... 216,700 51,100 165,600 220,100 52,500 167,600 346,400 266,100 80,300 2,600 500 4,700 1,400 Dec. 31.... 224,600 51,100 173,500 234,876 53,141 181,735 353,638 271,760 81,877 2,719 464 10,698 2,020 1972—Jan 26 217 200 51 700 165 500 220 000 51 000 169,000 357,300 274 900 82,500 2,400 500 9,900 2,900 Feb. 23.... 220,400 52,’100 168’300 219*300 51’500 167,800 361,700 278,300 83,400 2,600 400 7,800 1,100 Mar. 29*... 230,300 52,600 177,700 227,000 52,100 174,900 366,600 281,700 84,900 2,500 400 9,200 900 Apr. 26*... 227,400 52,700 174,700 227,400 52,200 175,200 370,000 284,000 86,000 2,500 400 11,000 1,800 May 31*... 233,800 53,300 180,500 230,900 53,100 177,800 374,100 288,000 86,100 2,900 400 9,000 2,100 June 28*... 233,400 53,300 180,100 230,200 53,300 177,000 376,800 290,000 86,900 2,900 400 9,500 2,900 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 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 □ JULY 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 l U.S. capital De­ Treas­ Other ac­ mand Time Times ury 2 counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10, < ►82 44,349 15,952 23 7,173 14,278 1945—Dec. 31.. . 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,( )65 105,921 30,241 219 8,950 14,011 1947—Dec. 31 6. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31... 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30... 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 31 7. 421,597 295,547 54,709 71,341 89,984 530,665 435,577 27,174 735 5,054 208,870 193,744 18,360 39,978 13,661 1970—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—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... 492,020 330,570 59,960 101,490 95,590 611,630 506,710 28,920 2,610 5,950 204,800 264,430 27,240 45,530 13,768 Nov. 24... 497,070 334,420 61,030 101,620 95,350 616.080 506,340 28,200 2,600 4,210 204,670 266,660 30,870 45,710 13,776 Dec. 31... 516,564 346,930 64,930104,704 99,832 640,255 537,946 32,205 2,908 10,169 220,375 272,289 25,912 47,211 13,783 1972—Jan. 26... 508,200 340,730 62,690104,780 92,690 624,750 521,320 28,480 2,960 9,280 205,160 275,440 26,370 46,600 13,787 Feb. 23... 511,360 343,300 61,860106,200 96,130 631,330 524,280 31,050 2,990 7,270 204,080 278,890 29,190 47,050 13,799 Mar. 29®.. 521,870 351,130 62,380108,360 91,350 638,210 525,520 26,430 2,950 8,740 205,210 282,190 32,810 47,450 13,806 Apr. 26p.. 523,760 352,770 61,620109,370 95,300 643.770 531,990 26,140 2,870 10,470 207,990 284,520 31,520 47,780 13,823 May 31p.. 529,510 358,080 60,960110,470101,360 656.770 542,940 28,240 3,020 8,430 214,640 288,610 33,110 48,310 13.838 June 28p.. 535,580 365,380 59,600110,600 93,250 653,960 538,670 26,520 3,000 8,920 209,720 290,510 34,240 48,340 13.838 Member of F.R. System: 1941—Dec. 31 ... 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31... 107,183 22,775 78,338 6,070 29.845 138,304 129,670 13,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31... 97,846 32,628 57,914 7,304 32.845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31... 263,687 182,802 41,924 38,960 60,738 334,559 291,063 18,788 794 4,432 138,218 128,831 4,618 26,278 6,150 1967—Dec. 30... 293,120 196,849 46,956 49,315 68,946 373,584 326,033 20,811 1,169 4,631 151,980 147,442 5,370 28,098 6,071 1968—Dec. 31... 325,086 220,285 47,881 56,920 73,756 412,541 355,414 23,519 1,061 4,309 163,920 162,605 8,458 30,060 5,978 1969—Dec. 31 7. 336,738 242,119 39,833 54,785 79,034 432,270 349,883 25,841 609 4,114 169,750 149,569 17,395 32,047 5,869 1970—Dec. 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 5,766 1971—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. 21... 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. 31... 405,087 277,717 47,633 79,738 86,189 511,353 425 380 30,612 2,549 8,427 174,385 209,406 25,046 37,279 5,727 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 5,931 161,031 214,012i 28,227 37,340 5,720 Mar. 29... 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 5.713 Apr. 26... 409,925 282,298 44,643 82,984 82.345 513,123 418,730 24,893 2,510 8,939 164,071 218,317 30,406 37,928 5.713 May 31... 414,469 286,310 44,403 83,756 87,524 523,538 427,426 26,913 2,663 6,825 169,496 221,529 31,907 38,356 5.713 June 28^.. 419,412 292,333 43,251 83,828 80.345 520,769 423,492 25,272 2,645 7,301 165,365 222,909 32,965 38,355 5.713 Reserve city member: New York City:8,9 1941—Dec. 31 ... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 31 7. 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—Dec. 31... 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971—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 5,088 8,675 24,405 91,671 68,923 13,005 1,086 710 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 1,196 392 28,785 24,431 6.954 7,257 12 Dec. 31. .. 63,342 48,714 5,597 9,031 22,663 91,461 71,723 13,825 1,186 1,513 30,943 2*t,256 5,195 7,285 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 Apr. 26... 63,467 49,539 4,825 9,103 21,014 90,364 68,798 11,451 1,162 2,013 28,842 25,330 6,650 7,372 12 May 31... 65,719 50,799 5,257 9,663 22,516 93,765 70,852 12,303 1,198 1,038 29,918 26,395 8,103 7,618 13 June 28.. . 66,761 51,973 4,962 9,826 19,971 92,258 70,213 11,790' 1,156 989 29,649 26,629 7,528 7,559 13 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 Interbank 3 Other Total Num­ Class of bank lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets 3 and Demand ings counts banks l U.S. capital Total 3 Treas­ Other ac­ De­ Time Time5 ury 2 counts 4 mand U.S. Govt. Other Reserve city member (cont.): City of Chicago: » 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—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............ 16,70^ 12,273 1,671 2,760 2,756 20,438 15,571 1,339 191 374 6,028 7,639 1,952 1,649 9 Oct. 27............ 16,526 11,938 1,732 2,856 3,576 21,049 15,933 1,553 228 240 6,386 7,526 2,462 1,669 9 Nov. 24............ 16,651 11,945 1,780 2,926 3,856 21,333 15,364 1,431 219 102 6,097 7,515 2,712 1,649 9 Dec. 31............ 17,133 12,285 1,782 3,067 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1,682 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 Apr. 26............ 17,761 12,998 1 ,510 3,253 3,207 21,858 16,017 1,344 191 465 6,381 7,636 2,972 1,829 9 May 31 r.......... 18,147 13,283 1,665 3,199 3,538 22,697 16,509 1,412 182 282 6,631 8,002 3,280 1,836 9 June 28............ 18,529 13,934 1,456 3,139 2,902 22,489 16,688 1,329 192 243 6,533 8,391 2,926 1,839 9 Other reserve city: 8 1941—Dec. 31............ 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............ 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............ 36,04C 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—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 9,1^0 684 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, * 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 1C,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 ),531 733 1,264 57,068 74,218 16,692 13,012 156 Dec. 31............ 149,401 106,361 15,912 27,129 33,732 190,880 155,226 11,241 933 3,557 62,474 77,020 14,799 13,197 156 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 Apr. 26............ 149,586 107,362 14,434 27,790 32,579 190,334 151,394 9,079 894 3,839 58,129 79,453 16,766 13,725 156 May 31............ 151,153 108,846 14,362 27,945 34,413 193,947 155,174 9,985 1,020 2,763 60,716 80,690 16,435 13,890 156 June 28............ 152,851 111,037 13,999 27,815 32,122 193,131 152,512 9,138 1,034 3,310 58,398 80,632 18,156 13,903 156 Country member: 8,9 1941_Dec. 31............ 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31............ 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31............ 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1966—Dec. 31............ 109,518 68,641 22,419 18,458 19,004 131,338 117,749 2,392 69 1,474 56,672 57,144 308 10,309 5,958 1967—Dec. 30............ 122,511 74,995 24,689 22,826 20,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Dec. 31............ 134,759 83,397 24,998 26,364 22,664 161,122 144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 317.......... 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—Dec. 31............ 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1971—June 30............ 163,371 103,449 22,634 37,289 24,563 193,374 168,852 3,087 224 2,512 68,742 94,286 2,656 14,499 5,559 July 28............ 163,225 102,754 22,955 37,516 23,059 191,971 167,088 2,776 135 2,281 66,784 95,112 2,866 14,128 5,553 Aug. 25............ 164,524 103,683 22,884 37,957 22,946 193,200 168,067 2,775 135 2,597 66,526 96,034 2,726 14,153 5,553 Sept. 29............ 166,630 105,263 22,864 38,503 23,519 196,237 170,060 2,782 224 2,730 67,186 97,138 3,146 14,195 5,547 Oct. 27........... 168,253 106,317 22,956 38,980 24,987 199,382 173,198 3,052 224 1,927 69,821 98,174 3,261 14,291 5,548 Nov. 24............ 169,620 107,432 23,065 39,123 24,858 200,544 173,702 2,985 224 1,559 69,955 98,979 3,418 14,385 5,552 Dec. 31............ 175,211 110,357 24,343 40,511 26,783 207,798 181,780 3,853 263 2,993 74,072100,600 3,118 15,114 5,550 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 69,521103,835 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 5,536 Apr. 26............ 179,111 112,399 23,874 42,838 25,545 210,567 182,521 3,019 263 2,622 70,719105,898 4,018 15,002r5,536 May 31............ 179,450 113,382 23,119 42,949 27,057 213,129 184,891 3,213 263 2,742 72,231106,442 4,089 15,012 5,535 June 28^.......... 181,271 115,389 22,834 43,048 25,350 212,891 184,079 3,015 263 2,759 70,785107,257 4,355 15,054 5,535 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ JULY 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 membershin Cash lia­ Bor­ Total Num­ and FDIC assets 3 bilities row­ capital ber insurance Total Loans and Total 3 Demand ings ac­ of l U.S. Other capital De­ Time counts banks Treas­ 2 ac­ mand Time 5 ury counts 4 G U o .S vt . . Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,i654 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 13,1883 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—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 Dec. 31.. 514,097 345,386 64,691104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,'786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,:229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—June 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—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 Dec. 31.. 302,756 206,758 36,386 59,612 59,191 376,318 314,085 17,511 1,828 6,014 128,441 160,291 18,169 27,065 4.599 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,'739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,- 411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 307. 88,346 64,007 9,902 14,437 26,344 119,358 93,858 9,773 285 1,341 45,152 37,307 4,104 8,689 1,236 Dec. 31.. 90,088 65,560 10,257 14,271 24,313 119,219 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 1970—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 Dec. 31.. 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790i 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137' 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146i 11,629 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155; 14,020| 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—June 307. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 34,070 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565: 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1970—Dec. 31.. 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 1971—June 30.. 99,532 61,509 15,953 22,070 i 10,439 113,058 99,774 989i 186 1,409» 39,908 57,283i 597 8,993 7,811 Dec. 31.. 108,527 67,188 17,058i 24,282: 12,092 123,970 109,841 1,212 242, 1,723I 44,717 61,946I 582: 9,451 7,875 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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— F C R la S s s m ifi e c m at b io er n s h b i y p Securities Cash T l o ia ta ­ l Interbank3 Other Bor­ Total Num­ a i n ns d u F ra D nc IC e Total Loa l ns T U re .S as . ­ Oth 2 er assets 3 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 ­ t t a s l ba b o n e f k r s ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31.......... 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1945—Dec. 31.......... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 316........ 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20.......... 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964 Dec. 31.......... 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965 Dec. 31.......... 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30.......... 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31.......... 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969 June 30 7....... 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dcc. 31.......... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1970—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 Dec. 31........ 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 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—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 Dec. 31........ 111,674 69,411 17,297 24,966 13,643 129,100112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1 Beginning June 30, 1966, loans to farmers directly guaranteed by p. 993. For various changes between reserve city and country status in CCC were reclassified as securities, and Export-Import Bank portfolio 1960-63, see note 6, p. 587, May 1964 Bulletin. fund participations were reclassified from loans to securities. This reduced 9 Beginning May 6, 1972, two New York City country banks, with Total loans and increased “Other securities” by about $1 billion. Total deposits of $1,412 million, merged and were reclassified as a reserve city loans include Federal funds sold, and beginning with June 1967 securities bank. purchased under resale agreements, figures for which are included in “Federal funds sold, etc.,” on p. A-24. Note.—Data are for all commercial banks in the United States (includ­ Beginning June 30, 1971, Farmers Home Administration notes are ing Alaska and Hawaii, beginning with 1959). Commercial banks represent classified as “Other securities” rather than “Loans.” As a result of this all commercial banks, both member and nonmember; stock savings change, approximately $700 million was transferred to “Other securities” banks; and nondeposit trust companies. for the period ending June 30, 1971, for all commercial banks. For the period June 1941-June 1962 member banks include mutual See also table (and notes) at the bottom of p. A-32. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 2 See first two paragraphs of note 1. and one through June 1962. Those banks are not included in insured 3 Reciprocal balances excluded beginning with 1942. commercial banks. 4 Includes items not shown separately. See also note 1. Beginning June 30, 1969, commercial banks and member banks exclude 5 See last paragraph of note 1. a small national bank in the Virgin Islands; also, member banks exclude, 6 Beginning with Dec. 31, 1947, the series was revised; for description, and noninsured commercial banks include, through June 30, 1970, a small see note 4, p. 587, May 1964 Bulletin. member bank engaged exclusively in trust business. i Figure takes into account the following changes beginning June 30, Comparability of figures for classes of banks is affected somewhat by 1969: (1) inclusion of consolidated reports (including figures for all bank- changes in F.R. membership, deposit insurance status, and the reserve premises subsidiaries and other significant majority-owned domestic classifications of cities and individual banks, and by mergers, etc. subsidiaries) and (2) reporting of figures for total loans and for individual Data for national banks for Dec. 31, 1965, have been adjusted to make categories of securities on a gross basis—that is, before deduction of them comparable with State bank data. valuation reserves—rather than net as previously reported. Figures are partly estimated except on call dates. 8 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, For revisions in series before June 30, 1947, see July 1947 Bulletin. pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS □ JULY 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments purc F h o a r s ing To U.S. Treasury b C a l n a k s s a o nd f lo T a a o n n t d s a l i f F e u r e n a d d l ­ s C m o e m r­ ­ Agri- o s r e c c u ar r r it y i i e n s g in f s in ti a tu n t c i 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 a i n n d ­ a tu l r- 5 b T ro o ­ tate v d id i- - Bills g se o c v u t ­ . r s it e i c e u s5 ­ d tr u ia s l ­ k an er d s ot T he o rs Banks Others uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31. 116,284 38,057 18,167 1,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io 422,728 9,928 286,750 108,443 10,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1971—June 30. 481,270 15,663 307,969 114,36212,2265,6343,493 2,844 16,95875,77769,1497,52760,254 77,99419,389 Dec. 31.517,244 19,954 3~:27,656118,52612,4977,2923,659 4,591 16,92681,60174,5148,04964,930 82,42022,284 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 ,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1969—Dec. 31 io 419,746 9,693284,945 107,68510.314 5,6443,991 2,425 14,89069,66963,008 7,319 54,399 58,84011,869 1971—June 30. 478,302 15,381306,194113,411 12,211 5,555 3,480 2,718 16,82575,615 68,9427,43759,991 77,687 19,048 Dec. 31.514,097 19,623325,764117,603 12,4827,201 3,644 4,405 16,79281,43474,2637,93964,691 82,09921,921 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1969—Dec. 31 io 337,613 7,356235,63996,0956,1875,408 3,286 2,258 14,03553,20748,388 6.77639,833 47,2277,558 1971—June 30. 378,769 12,026248,04098,5737,0945,3333,024 2,496 15,77056,93452,0376.777 44,038 61,963 12,702 Dec. 31.405,570 15,373262,826101,4797,311 6,895 3,167 4,123 15,71361,091 55,8397,20747,633 65,24414,494 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 23811,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,50328,189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 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 Dec. 31. 63,342 774 47,941 26,526 4,701 677 1,722 3,997 4,496 4,151 1,641 5,597 7,729 1,302 City of Chicago: 1941—Dec. 31.. 2,760 954 732 48 52 22 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1969—Dec. 31 io 14,365 215 10,556 6,444 337 262 186 1,219 842 862 354 1,564 1,837 192 1971—June 30. 16,477 612 11,164 6,515 373 245 218 1,465 861 1,078 367 1,736 2,580 384 Dec. 31. 17,162 621 11,693 6,355 527 263 382 1,568 949 1,167 431 1,782 2,688 379 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 4271,503 17 1,459 855 387 29.552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io 121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,70617,5692,757 11,944 16,625 1,859 1971—June 30. 137,451 5,010 92,17638,189 1,601 7861,419 893 7,51720,722 17,9293,12014.552 22,409 3,304 Dec. 31.149,484 7,771 98,67340,397 1,630 1,193 1,407 1,671 7,49722,300 19,4053,173 15,912 23,4593,670 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. 3110 141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 1971—June 30. 163,782 5,407 98,45226,9225,433 352 723 279 2,57731,14829,113 1,90522,634 29,6757,614 Dec. 31. 175,582 6,208104,52028,201 5,599 474 821 348 2,651 33,34731,117 1,96224,343 31,3679,144 Nonmember: 1947—Dec. 31. 18,454 5,432 1,205 614 20 156 2,266 1,061 10911,318 2,179 1,219 7,920 1,073 625 1969—Dec. 31 io 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,81314,868 61214,875 11,956 4,600 1971—June 30 102,500 3,638 59,929 15,7895,131 301 468 348 1,187 18,84317,112 74916,216 16,031 6,687 Dec. 31. 111,674 4,581 64,830 17,0465,187 398 492 468 1,21320,509 18,675 84217,297 17,1767,790 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

JULY 1972 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal­ De­ b c C a a l n l a l k s d s a a o n te d f B s w F e R a r . i n v R e t k h e ­ . s s r C c a e o n n u i c d r n y ­ b m a a w d n e n i c o s t k e t ­ h i s s c 7 ju p m s o a d a t d s e e n i ­ ­ d t d s 8 m D e I s n o t t ­ i e c r 7 ba e F n ig k o n r­ 9 G U o . v S t . . g S l a o o t n c a v d a t t e l . c C c h o f a e e i e f n e r r f c d d i s t k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U a o o a n . s S v v d t ­ t . a . l g S l a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a t a a u c p l n ­ i t ­ s etc. ings Total:3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1969—Dec. 311°.. 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 1971—June 30... 24,066 7,634 21,546168,263 28,699 2,614 8,412 17,276 11,949 177,692 2,207 51726.221 228,17622,54745,311 Dec. 31.. . 27,478 7,541 25,548 185,907 29,349 2,855 10,169 17,665 10,130 192,581 2,908 52930,384242,055 25,91247,211 All insured: 1941—Dec. 31.. .. 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31 io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166180,86018,02439,450 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 Dec. 31. . . 27,478 7,532 24,171 184,366 29,145 2,680 10,150 17,547 9,810 191,746 2,792 52930,303241,003 25,62846,731 Member—Total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1969—Dec. 3110.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 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 46220,534175,75721,70035,822 Dec. 31... 27,478 5,778 14,893 140,446 28,056 2,556 8,427 12,955 8,587 152,843 2,549 44523,890185,55325,04637,279 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. 3110.. 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 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 Dec. 31... 5,362 459 1,806 18,315 12,047 1,779 1,513 909 3,841 26,193 1,186 51 2,060 22,1455,195 7,285 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. 3110.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1971—June 30... 991 126 247 5,044 1,439 51 318 352 211 6,084 85 3 741 6,3532,359 1,636 Dec. 31... 956 133 202 5,335 1,592 101 363 333 240 6,323 168 1 809 6,749 1,935 1,682 Other reserve city: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1969—Dec. 31 io.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1971—June 30... 10,394 1,822 4,069 43,872 9,631 535 2,954 3,716 2,455 51,451 735 249 8,863 62,31212,15312,826 Dec. 31... 12,264 1,819 4,222 48,063 10,637 604 3,557 3,600 2,533 56,341 933 22510,516 66,36214,79913,197 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 31 io.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 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 Dec. 31. . . 8,896 3,367 8,663 68,733 3,779 73 2,993 8,113 1,973 63,986 263 16710,505 90,298 3,118 15,114 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 311 o 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 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 Dec. 31 1,763 10,655 45,462 1,293 299 1,742 4,710 1,543 39,737 359 85 6,494 56,502 866 9.932 7 Beginning with 1942, excludes reciprocal bank balances. Note.—Data are for all commercial banks in the United States; member 8 Through 1960 demand deposits other than interbank and U.S. banks in U.S. possessions were included through 1968 and then excluded. Govt., less cash items in process of collection; beginning with 1961, For the period June 1941—June 1962 member banks include mutual demand deposits other than domestic commercial interbank and U.S. savings banks as follows: three before Jan. 1960, two through Dec. 1960, Govt., less cash items in process of collection. and one through June 1962. Those banks are not included in all insured or 9 For reclassification of certain deposits in 1961, see note 6, p. 589, total banks. May 1964 Bulletin. A small noninsured member bank engaged exclusively in trust business *0 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 □ JULY 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1971 June 9.............. 8,923 8,066 540 140 177 178,281 81,292 2,217 629 3,645 114 2,349 6,781 6,646 16............. 9,126 8,308 424 234 160 181,622 82,556 2,223 795 3,934 117 2,355 7,420 6,854 2 3 263,883 8,412 7,653 483 130 146 180,709 82,338 2,238 433 3,732 141 2,366 7,120 6,927 3 0 266,785 7,757 7,015 518 28 196 182,693 82,156 2,261 888 4,175 124 2,412 7,597 7,282 1972 May 3............. 11,134 10,032 652 325 125 199,508 85,498 2,467 894 7,004 184 2,547 6,403 8,474 10............. 10,165 8,589 923 265 388 198,869 85,420 2,473 913 6,680 163 2,559 6,260 8,415 17............. 11,088 9,926 617 244 301 198,928 85,369 2,484 745 6,395 163 2,539 6,279 8,425 2 4 10,237 9,379 473 199 186 198,654 84,987 2,495 678 6,572 194 2,550 6,020 8,409 3 1 9,992 9,008 672 207 105 199,999 84,790 2,507 811 6,969 149 2,571 6,244 8,593 June 7*............ 292,091 11,134 10,084 575 401 74 199,770 84,673 2,509 784 6,924 155 2,572 6,176 8,613 14*............ 293,299 10,917 9,896 667 279 75 201,014 84,717 2,518 836 7,116 154 2,590 6,407 8,810 21*............ 295,424 11,377 10,239 657 317 164 203,151 85,624 2,532 809 7,405 158 2,612 6,675 9,016 28*............ 294,593 11,141 10,082 521 389 149 203,352185,042 2,546 645 7,143 156 1-2,651 |6,656 f9,308 New York City 1971 June 9.............. 55,924 1,142 1,044 25 73 42,112 25,483 19 491 2,430 19 579 1,995 1,569 16............. 58,374 1,749 1,692 25 32 43,535 25,977 19 668 2,627 20 577 2,226 1,609 2 3 56,698 1,578 1,506 65 7 42,643 25,787 20 327 2,498 30 578 2,098 1,621 3 0 57,597 827 742 18 67 43,886 25,902 19 803 2,950 20 585 2,253 1,673 1972 Mav 3.............. 61,983 1,869 1,789 30 50 46,482 25,117 31 738 4,752 54 636 1,778 2,056 10............. 60,561 705 669 3 33 45,848 24,971 30 757 4,442 50 648 1,737 2,021 17............. 60,675 1,246 1,205 41 45,418 25,005 33 591 4 132 47 638 1 731 2,019 2 4 60,046 827 783 15 29 45,266 24,770 33 544 4,332 50 640 1,657 2,038 3 1 60,623 940 917 5 18 45,924 24,563 32 691 4,652 47 642 1,747 2,109 June 7*............ 60,522 1,260 1,232 28 45,476 24,462 33 631 4,519 50 644 1,724 2,114 14*............ 60,796 1,065 1,009 29 27 45,918 24,356 33 689 4,714 47 641 1,850 2,153 21*............ 61,964 1,332 1,301 2 29 46,495 24,676 33 651 4,879 45 642 1,881 2,200 28*............ 61,549 1,715 1,606 98 11 46,225124,171 32 522 4,659 45 |671 |1,940 f2,406 Outside New York City 1971 June 9.............. 7,781 7,022 515 140 104 136,169 55,809 2,198 138 1,215 95 1,770 4,786 5,077 16.............. 7,377 6,616 399 234 128 138,087 56,579 2,204 127 1,307 97 1,778 5,194 5,245 2 3 6,834 6,147 418 130 139 138,066 56,551 2,218 106 1,234 111 1,788 5,022 5,306 3 0 6,930 6,273 500 28 129 138,807 56,254 2,242 85 1,225 104 1,827 5,344 5,609 1972 May 3............. 9,265 8,243 622 325 75 153,026 60,381 2,436 156 2,252 130 1,911 4,625 6,418 10.............. 9,460 7,920 923 262 355 153,021 60,449 2,443 156 2,238 113 1,911 4,523 6,394 17............. 9,842 8,721 617 244 260 153,510 60,364 2,451 154 2,263 116 1,901 4,548 6,406 2 4 } 9,410 8,596 473 184 157 153,388 60,217 2,462 134 2,240 144 1,910 4,363 6,371 3 1 1 9,052 8,091 667 207 87 154,075 60,227 2,475 120 2,317 102 1,929 4,497 6,484 June 7*............ ) 9,874 8,852 575 401 46 154,294 60,211 2,476 153 2,405 105 1,928 4,452 6,499 14*............ 5 9,852 8,887 638 279 48 155,096 60,361 2,485 147 2,402 107 1,949 4,557 6,657 21*............ ) 10,045 8,938 657 315 135 156,656 60,948 2,499 158 2,526 113 1,970 4,794 6,816 28*............ 1 9,426 8,476 521 291 138 157,127160,871 2,514 123 2,484 111 |1,980 f4,716 1-6,902 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ sumer For- All Certif­ 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 35 575 1,749 22,194 833 14,060 25,566 3,986 3,543 14,496 3,541 .........................June 9 35 548 1,957 22,298 818 14,373 25,586 4,056 3,660 14,330 3,540 ...................................16 35 584 1,871 22,375 811 14,246 25,052 3,574 3,631 14,371 3,476 ...................................23 35 618 1,719 22,665 731 14,390 26,637 4,228 3,691 15,324 3,394 ...................................30 1972 40 1,056 2,585 24,703 932 16,338 27,076 3,615 4,840 15,525 3,096 .........................May 3 40; 1.003 2,470 24,753 961 16,185 27,294 3,970 4,831 15,558 2,935 ...................................10 40; 1,123 2,663 24,820 951 16,168 27,326 4,072 4.619 15,550 3,085 ...................................17 40; 1,075 2,626 24,951 948 16,199 27,024 3,859 4.619 15,509 3,037 ...................................24 41 j 1.004 2,623 25,170 943 16,576 26,958 3,844 4,941 15,192 2,981 ...................................31 41 j 1,107 2,574 25,211 947 16,330 26,811 5,034 14,951 2,942 .........................June 7* 41, 1,150 2,531 25,366 976 16,418 26,943 4,040 5,065 14,985 2,853 ...................................14* 41; 1,152 2,501 25,460 999 16,561 26,612 4,083 4,800 14,864 2,865 ...................................21* f4i; 1,369 2,811 25,588 tl,044 fl6,572 26,030 3,648 4,783 14,783 2,816 ...................................28* New York City 1971 3, 169 839 1,828 522 2,449 4,754 1,113 430 2,721 490 ........................June 9 3, 174 950 1,833 532 2,573 4,746 1,150 430 2,689 477 ...................................16 3, 198 863 1,840 520 2,513 4,382 790 424 2,726 442 ...................................23 3, 170 822 1,864 494 2,651 4,879 963 442 3,085 389 ...................................30 1972 4, 277 1,244 1,912 552 3,002 4,805 883 1,065 2,483 374 .........................May 3 4, 253 1,146 1,917 578 2,938 5,132 1,254 1,083 2,468 327 ...................................10 4, 254 1,154 1,920 576 2,919 5,130 1 ,259 990 2,472 409 ...................................17 4, 245 1,121 1,926 579 2,923 5,042 1,231 993 2,425 393 ...................................24 4, 256 1,127 1,922 578 3,147 4.913 1,094 1,012 2,448 359 ...................................31 4, 292 1,073 1,933 580 2,994 4.913 1,240 995 2,373 305 .........................June 7* 4, 270 1,090 1,939 604 3,075 4,984 1,225 1,036 2,459 264 ...................................14* 4, 301 1,098 1,947 595 3,071 5,072 1,331 994 2,442 305 ...................................21* t4, 412 1,254 1,955 f641 f3,015 4,636 999 963 2,383 291 ...................................28* Outside New York City 1971 31, 406 910 20,366 311 11,611 20,812 2,873 3,113 11,775 3,051......................................June 9 31, 374 1.007 20,465 286 11,800 20,840 2,906 3,230 11,641 3,063 ................................................16 31, 386 1.008 20,535 291 11,733 20,670 2,784 3,207 11,645 3,034 ................................................23 31, 448 897 20,801 237 11,739 21,758 3,265 3,249 12,239 3,005 ................................................30 1972 36, 779 1,341 22,791 380 13.336 22,271 2,732 3,775 13,042 2,722 ..............May 3 36, 750 1,324 22,836 383 13,247 22,162 2,716 3,748 13,090 2,608 .........................10 36, 869 1,509 22,900 375 13,249 22,196 2,813 3,629 13,078 2,676 .........................17 36, 830 1,505 23,025 369 13,276 21,982 2,628 3,626 13,084 2,644 .........................24 36, 748 1,496 23,248 365 13,429 22,045 2,750 3,929 12,744 2,622 .........................31 36 j 815 1,501 23,278 367 13.336 21,898 2,644 4,039 12,578 2,637 .............June Ip 36j 880 1,441 23,427 372 13,343 21,959 2,815 4,029 12,526 2,589 .......................14* 37, 851 1,403 23,513 404 13,490 21,540 2,752 3,806 12,422 2,560 .......................21* 957 1,557 23,633 t403 fl3,557 21,394 2,649 3,820 12,400 2,525 .......................28* see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EPORTING BANKS □ JULY 1972 S AND LIABILITIES OF LARGE COMMERCIAL BANKS—ContlniM (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re­ of State corp. stock, in serves Cur­ and and process with rency political securities of F.R. and liab subdivisions collec­ Banks coin itic tion Tax Certif. war­ All of All rants3 other partici­ others pation4 7,868 34,822 1,124 5,706 31,082 18,855 3,422 338 j 7,865 35,262 1,128 5,761 35,329 18,291 3,483 346. 7,814 35,100 1,094 5,702 31,342 18,493 3,551 339: 7,548 35,130 1,319 5,701 38,776 18,187 3,504 35i; 9,284 37,076 1.593 6,150 30,198 20,142 3,446 372, 9,055 37,242 1,614 6,141 28,385 20,107 3,572 368, 9,117 37,289 1.594 6,095 30,125 21,814 3,633 373, 9,041 37,408 1,577 6,093 27,629 20,079 3,743 367, 9,066 37,357 1,588 6,190 32,686 22,696 3,792 377, 9,329 37,326 1,552 6,169 27,720 20,593 3,500 369, 9,195 37,350 1,603 6,277 30,655 20,753 3,780 375, 8,973 37,360 1,580 6,371 30,705 19,974 3,782 376, 8,799 37,341 1,572 6,358 29,358 20,564 3,934 374, 1,424 5,149 84 1,259 14,767 5,237 432 83. 1,413 5,557 78 1,296 16,104 3,641 411 85: 1,396 5,360 73 1,266 14,845 4,576 424 83i 1,217 5,344 188 1,256 19,547 4,511 415 89; 2,365 5,257 308 897 10,205 4,158 410 85, 2,328 5,337 333 878 10,881 4,872 434 85; 2,292 5,410 314 865 10,154 6,127 408 86! 2,291 5,438 306 876 10,729 5,345 433 85; 2,260 5,378 280 928 11,783 5,899 425 87; 2,307 5,361 271 934 9,155 5,598 436 83, 2,315 5,347 280 887 10,426 5,329 450 85; 2,455 5,431 280 899 11,277 5,014 444 87; 2,444 5,363 270 896 11,146 4,244 467 85; 6,444 29,673 1,040 4,447 16,315 13,618 2,990 255 6,452 29,705 1,050 4,465 19,225 14,650 3,072 261 6,418 29,740 1,021 4,436 16,497 13,917 3,127 256 6,331 29,786 1,131 4,445 19,229 13,676 3,089 262 6,919 31,819 1,285 5,253 19,993 15,984 3,036 286 6,727 31,905 1,281 5,263 17,504 15,235 3,138 282; 6,825 31,879 1,280 5,230 19,971 15,687 3,225 287; 6,750 31,970 1,271 5,217 16,900 14,734 3,310 282; 6,806 31,979 1,308 5,262 20,903 16,797 3,367 289; 7,022 31,965 1,281 5,235 18,565 14,995 3,064 285, 6,880 32,003 1,323 5,390 20,239 15,424 3,330 289; 6,518 31,929 1,300 5,472 19,428 14,960 3,338 288; 6,355 31,978 1,302 5,462 18,212 16,320 3,467 288; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers* Sav­ Other divi­ bank sions cial ings etc.2 cial checks ings sions banks Large banks— Total 1971 136,508 96,525 6,014 1,517 20,947 646 807 2,236 7,816 131,793 53,524 56,465 15,157 1,615 4,531 .............June 9 145,450 100,438 6,801 4,717 21,983 628 803 2,262 7,818 130,778 53,476 55,553 14,926 1,637 4,678 .......................16 138,625 97,162 6,558 3,280 20,460 594 752 2,384 7,435 131,394 53,429 56,135 14,964 1,687 4,685 .......................23 152,972102,131 7,632 5,332 24,967 794 745 2,404 8,967 131,856 53,644 56,451 14,742 1,782 4,736 .......................30 1972 148,501 101,536 7,165 8,614 20,693 738 721 2,565 6,469 147,119 57,295 62,610 19,398 2,110 5,224 ..............May 3 143,851 99,253 6,700 6,538 20,273 697 884 2,632 6,874 147,525 57,401 62,854 19,419 2,205 5,157 .......................10 147,348 102,291 6,606 7,513 20,649 655 798 2,653 6,183 148,130 57,523 63,336 19,346 2.264 5,167 .......................17 141,693 99,231 6,353 5,792 19,679 618 745 2,657 6,618 148,957 57,589 63,950 19,415 2,310 5,202 .......................24 150,176105,304 7,200 5,027 21,540 698 716 2,926 6,765 149,089 57,624 64,414 19,068 2,303 5,197 ........................31 140,989 100,936 6,213 3,284 20,221 721 730 2,644 6,240 149,691 57,722 64,827 19,034 2,363 5,274 .............June lp 146,084105,671 6,137 2,851 20,698 667 753 2,691 6,616 149,233 57,643 64,895 18,633 2,327 5,257 ........................14p 147,987 103,273 6,698 5,589 20,164 639 677 2,819 8,128 149,179 57,735 64,847 18,582 2.265 5,266 ........................21* 146,054102,315 6,890 5,654 19,990 694 912 2,866 6,733 149,684 57,732 65,454 18,427 2,257 5,322 .......................28* New York City 1971 39,974 21,925 465 201 9,701 332 614 1,523 5,213 22.558 5,319 12,400 1,427 798 2,492 .............June 9 42,674 23,097 777 1,249 9,961 321 651 1,570 5,048 21,970 5,310 11,683 1,397 845 2,605 .......................16 40,473 22,314 501 496 9,690 308 601 1,665 4,898 22,350 5,286 11,957 1,523 845 2,613 ........................23 47,728 24,323 616 1,173 13,054 456 585 1,687 5,834 22.559 5,302 12,134 1,461 873 2,661 ........................30 1972 39,713 22,811 502 2,004 8,663 396 591 1,773 2,973 24,937 5,726 12,970 2,100 1,046 2,989 ...............May 3 39,074 21,494 439 1,439 9,169 365 738 1,740 3,690 24,987 5.754 13,009 2,101 1,078 2.941 ........................10 38,817 22,225 443 1,628 8,788 342 659 1,842 2,890 24,957 5,751 13,031 2,022 1,105 2,950 ........................17 38,614 21,985 378 1,146 8,711 328 597 1,865 3,604 25,086 5.755 13,110 2,032 1,135 2,954 ........................24 40,908 23,546 426 972 9,593 369 563 2,090 3,349 25,064 5,749 13,215 1,927 1,132 2.942 ........................31 36,717 21,526 365 609 8,564 370 600 1,814 2,869 25,439 5,747 13,488 2,010 1,183 2,915 .............June 7* 38,794 23,091 305 522 8,792 339 616 1,887 3,242 25,182 5,743 13,406 1,910 1,170 2,865 ........................14? 40,936 22,681 611 1,082 8,718 321 526 2,005 4,992 24,882 5,745 13,222 1,900 1,112 2,811 ........................21 * 40,205 22,758 495 940 9,221 369 764 2,038 3,620 25,187 5,742 13,494 1,943 1,091 2,824 ........................28^ Outside New York City 1971 96,534 74,600 5,549 1 ,316 11,246 314 193 713 2,603 109,235 48,205 44,065 13,730 817 2,039 .............June 9 102,776 77,341 6,024 3,468 12,022 307 152 692 2,770 108,808 48,166 43,870 13,529 792 2,073 ........................16 98,152 74,848 6,057 2,784 10,770 286 151 719 2,537 109,044 48,143 44,178 13,441 842 2,072 ........................23 105,244 77,: 7,016 4,159 11,913 338 160 717 3,133 109,297 48,342 44,317 13,281 909 2,075 ........................30 1972 108,788 78,725 6,663 6,610 12,030 342 130 792 3,496 122,182 51,569 49,640 17,298 1,064 2,235 ...............May 3 104,777 77,759 6,261 5,099 11,104 332 146 892 3,184 122,538 51,647 49,845 17,318 1,127 2,216 .........................10 108,531 80,066 6,163 5,885 11,861 313 139 811 3,293 123,173 51,772 50,305 17,324 1,159 2,217 .........................17 103,079 77,246 5,975 4,646 10,968 290 148 792 3,014 123,871 51,834 50,840 17,383 1,175 2,248 .........................24 109,268 81,758 6,774 4,055 11,947 329 153 836 3,416 124,025 51,875 51,199 17,141 1,171 2,255 .........................31 104,272 79,410 5,848 2,675 11,657 351 130 830 3,371 124,252 51,975 51,339 17,024 1,180 2,359 ...............June 7* 107,290 82,580 5,832 2,329 11,906 328 137 804 3,374 124,051 51,900 51,489 16,723 1,157 2,392 .........................14* 107,051 80,592 6,087 4,507 11,446 318 151 814 3,136 124,297 51.990 51,625 16,682 1,153 2,455 .........................21p 105,849 79,557 6,395 4,714 10,769 325 148 828 3,113 124,497 51.990 51,960 16,484 1,166 2,498 .........................28* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ JULY 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits *1 ties of pur­ F.R. ties Secur­ loans invest­ mand banks chased, Banks Others etc. 8 Loans ities (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed i° Total to to foreign justed 9 IPC’s others bran­ ches Large banks— Total 1971 June 9...................... 22,380 560 898 16,167 4,030 25,716 178,563 253,649 82,962 28,760 17,702 11,058 1,938 16...................... 22,601 201 914 16,836 4,010 25,598 181,892 257,494 83,421 27,811 16,988 10,823 2.323 2 3 21,531 513 919 17,082 4,020 25,624 180,884 255,646 83,543 28,393 17,409 10,984 2.323 3 0 ................ 19,048 353 972 15,952 3,997 25,833 182,817 259,152 83,897 28,460 17,450 11,010 1,512 1972 i May 3...................... 26,683 446 1,142 15,888 4,143 28,009 199,554 280,733 88,996 34,288 20,960 13,328 1,240 10...................... 27,416 477 1,122 15.473 4,146 28,033 199,442 280,788 88,655 34,611 21,208 13,403 1,323 17...................... 28,362 181 1,094 15,878 4,137 27,972 198,967 280,388 89,061 34,927 21,604 13,323 1,544 2 4 27,198 292 1,245 15,705 4,145 27,981 198,437 279,580 88,593 35,470 22,035 13,435 1,599 3 1 27,209 1,516 1,261 15.474 4,154 28,187 199,979 281,138 90,923 35,581 22,276 13,305 1,465 June 7*.................... 29,725 109 1,466 15,414 4,150 28,216 199,713 280,900 89,764 36,106 22,617 13,489 1,192 14®.................... 30,090 37 1,494 15,712 4.157 28,160 200,885 282,253 91,870 35,813 22,542 13,271 1,525 21*.................... 29,535 145 1,531 15,788 4.157 28,116 203,137 284,033 91,529 35,452 22,280 13,172 1,740 2%v.................... 28,932 383 1,611 15,494 4,162 28,152 203,042 283,142 91,052 35,985 22,689 13,296 1,435 New York City 1971 June 9...................... 5,989 325 49 6,446 1,196 6,561 42,041 54,711 15,305 10,292 7,178 3,114 1,104 16...................... 5,922 43 6,943 1.187 6,516 43,418 56,508 15,360 9,644 6,443 3,201 1,532 2 3 5,463 43 7,138 1.188 6,501 42,517 54,994 15,442 9,991 6,669 3,322 1,414 3 0 4,065 ’ 50 205 6,688 1,169 6,551 43,801 56,685 13,954 10,074 6,694 3,380 1,154 1972 May 3...................... 5,803 417 106 6,009 1,211 7.095 46,285 59,917 18,841 12,134 7,838 4,296 878 10...................... 6,625 325 93 5,817 1,212 7,100 45,631 59,639 17,585 12,180 7,915 4,265 897 17...................... 7,812 150 102 6,050 1,213 7,069 45,205 59,216 18,247 12,193 8,061 4,132 1,164 2 4 6,785 276 259 5,960 1,216 7,056 45,065 59,018 18,028 12,341 8,164 4,177 1,227 3 1 6,986 254 334 5,631 1.217 7,136 45,691 59,450 18,560 12,199 8,119 4,080 1,025 June lv.................... 7,648 375 5,444 1.218 7,141 45,212 58,998 18,389 12,622 8,464 4,158 893 14*>.................... 7,591 349 5,693 1,221 7,115 45,704 59,517 19,054 12,377 8,365 4,012 1,211 21*.................... 7,623 125 392 5,699 1 ,221 7.096 46,225 60,362 19,859 12,051 8,187 3,864 1,364 28 *.................... 6,434 430 5,412 1 ,224 7,083 45,922 59,531 18,898 12,256 8,299 3,957 975 Outside New York City 1971 June 9...................... 16,391 235 849 9,721 2,834 19,155 136,522 198,938 67,657 18,468 10,524 7,944 834 16...................... 16,679 201 871 9,893 2,823 19,082 138,474 200,986 68,061 18,167 10,545 7,622 791 2 3 16,068 513 876 9,944 2,832 19,123 138,367 200,652 68,101 18,402 10,740 7,662 909 3 0 14,983 303 767 9,264 2,828 19,282 139,016 202,467 69,943 18,386 10,756 7,630 358 1972 May 3...................... 20,880 29 1,036 9,879 2.932 20,914 153,269 220,816 70,155 22,154 13,122 9,032 362 10...................... 20,791 152 1,029 9,656 2,934 20,933 153,811 221,149 71,070 22,431 13,293 9,138 426 17...................... 20,550 31 992 9,828 2,924 20,903 153,762 221,172 70,814 22,734 13,543 9,191 380 2 4 20,413 16 986 9,745 2,929 20,925 153,372 220,562 70,565 23,129 13,871 9.258 372 3 1 20,223 1,262 927 9,843 2.937 21,051 154,288 221,688 72,363 23,382 14,157 9,225 440 June lp.................... 22,077 109 1,091 9,970 2.932 21,075 154,501 221,902 71 ,375 23,484 14,153 9,331 299 14p.................... 22,499 37 1,145 10,019 2.936 21,045 155,181 222,736 72,816 23,436 14,177 9.259 314 21*.................... 21,912 20 1,139 10,089 2.936 21,020 156,912 223,671 71,670 23,401 14,093 9,308 376 28p.................... 22,498 383 1,181 10,082 2.938 21,069 157,120 223,611 72,154 23,729 14,390 9,339 460 f A reclassification of loans by a large bank on June 28, 1972, has re­ 2 Includes official institutions and so forth. sulted in a reduction of $357 million in commercial and industrial loans 3 Includes short-term notes and bills. and $18 million in real estate loans. These reductions were offset primarily 4 Federal agencies only. by increases in following types of loans (in millions): 5 Includes corporate stock. To nonbank financial institutions: 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. Personal finance, etc. $ 60 7 Includes securities sold under agreements to repurchase. Other 187 8 Includes minority interest in consolidated subsidiaries. For purchasing or carrying securities 22 9 Exclusive of loans and Federal funds transactions with domestic com­ To foreign govts., etc. 20 mercial banks. Other 81 10 All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. 1 Includes securities purchased under agreements to resell. 11 Certificates of deposit issued in denominations of $100,000 or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 1972 June June June June May June May Apr. II I IV 2nd 1st 28* 21 14 7 31 half half Durable goods manufacturing: Primary metals................................. 2,097 2,165 2,145 2,134 2,126 -29 52 11 34 54 -162 -282 88 Machinery......................................... 4,221 4,312 4,232 4,287 4,270 -49 -103 84 -68 -91 -600 -831 -159 Transportation equipment.............. 2,362 2,375 2,365 2,383 2,419 -57 -117 -140 -314 14 -101 -77 -300 Other fabricated metal products... 1,711 1,726 1,716 1,698 1,690 21 -24 -19 -22 17 -259 -389 -5 Other durable goods........................ 2,827 2,813 2,799 2,788 2,750 77 32 77 186 146 -328 -317 332 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,633 2,607 2,483 2,539 2,567 66 -22 -77 -33 -227 205 498 -260 Textiles, apparel, and leather.......... 2,855 2,832 2,799 2,780 2,767 88 137 56 281 281 -273 -304 562 Petroleum refining........................... 1,003 934 1,032 1,028 1,018 -15 -5 -54 -74 -97 56 52 -171 Chemicals and rubber..................... 2,128 2,141 2,110 2,109 2,167 -39 21 -5 -23 -103 -437 -592 -126 Other nondurable goods................. 1,654 1,659 1,659 1,647 1,677 -23 -50 -20 -93 -75 -96 -36 -168 Mining, including crude petroleum and natural gas........................... 3,601 3,698 3,702 3,678 3,680 -79 -1 11 -69 -137 -17 187 -206 Trade: Commodity dealers................. 1,177 1,265 1,285 1,317 1,362 -185 -89 -31 -305 -194 460 532 -499 Other wholesale....................... 4,498 4,541 4,436 4,434 4,415 83 2 32 117 -52 132 524 65 Retail........................................ 4,519 4,641 4,566 4,501 4,510 9 66 63 138 259 -340 -259 397 Transportation..................................... 5,650 5,604 5,569 5,570 5,569 81 -117 73 37 -33 -78 -324 4 Communication................................... 1,432 1,413 1,353 1,300 1,284 148 -62 106 192 -74 -249 -225 118 Other public utilities........................... 2,697 2,811 2,670 2,696 2,659 38 -30 237 245 -274 176 525 -29 Construction........................................ 4,298 4,262 4,189 4,184 4,127 171 68 86 325 156 77 183 481 Services................................................. 8,603 8,576 8,406 8,369 8,279 324 -81 114 357 372 276 289 729 All other domestic loans..................... 5,755 6,000 5,961 5,965 6,114 -359 98 98 -163 264 305 610 101 Bankers’ acceptances........................... 1,402 1,444 1,513 1,543 1,624 -222 16 -133 -339 -553 696 1,158 -892 Foreign commercial and industrial loans.............................................. 3,399 3,366 3,364 3,365 3,378 21 63 1 85 89 254 578 174 Total classified loans........................... 70,522 71,185 70,354 70,315 70,452 70 -146 570 494 -258 -303 1,500 236 Total commercial and industrial loans. 185,042 85,624 84,717 84,673 84,790 252 -97 982 1,137 135 335 1,614 1,272 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 1972 Industry June May Apr. Mar. Feb. Jan. Dec. Nov. Oct. II I IV III 1st 28* 31 26 29 23 26 29 24 27 half Durable goods manufactur­ ing: Primary metals................... 1,370 1,381 1,367 1,342 1,330 1,315 1,362 1,406 1,495 28 -20 -162 -62 8 Machinery.......................... 1,954 1,986 2,005 2,072 2,001 2,179 2,285 2,396 2,476 -118 -213 -194 -57 -331 Transportation equipment. 1,360 1,370 1,389 1,493 1,553 1,605 1,620 1,592 1,626 -133 -127 -69 130 -260 Other fabricated metal products......................... 675 685 695 688 683 699 713 707 743 -13 -25 -62 -39 -38 Other durable goods.......... 1,178 1,144 1,163 1,145 1,118 1,117 1,135 1,162 1,204 33 10 -79 -19 43 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 931 947 909 912 937 987 1,021 1,010 971 19 -109 36 17 -90 Textiles, apparel, and leather............................. 666 646 667 651 580 567 576 577 585 15 75 -31 10 90 Petroleum refining............. 694 726 714 757 818 848 892 867 900 -63 -135 35 -34 -198 Chemicals and rubber....... 1,234 1,245 1,238 1,226 1,315 1,330 1,441 1,528 1,654 8 -215 -344 -32 -207 Other nondurable goods. . 875 930 960 980 973 1,010 1,024 1,018 1,047 -105 -44 6 -2 -149 Mining, including crude pe­ troleum and natural gas. 2,667 2,785 2,870 2,872 2,891 2,927 3,039 2,998 3,021 -205 -167 105 -56 -372 Trade: Commodity dealers.. 109 128 125 125 132 119 115 104 116 -16 10 6 12 -6 Other wholesale........ 902 912 889 927 883 915 893 860 862 -25 34 46 11 9 Retail......................... 1,297 1,332 1,328 1,340 1,352 1,349 1,383 1,429 1,475 -43 -43 -88 57 -86 Transportation....................... 4,306 4,285 4,400 4,383 4,314 4,397 4,440 4,448 4,444 -77 -57 -131 -26 -134 Communication..................... 501 427 460 440 417 432 427 427 418 61 13 7 -48 74 Other public utilities............. 1,423 1,218 1,161 1,160 1,191 1,305 1,316 1,292 1,304 263 -156 44 178 107 Construction.......................... 1,401 1,371 1,376 1,417 1,327 1,257 1,244 1,255 1,240 -16 173 52 5 157 Services................................... 3,691 3,555 3,593 3,657 3,545 3,542 3,488 3,438 3,397 34 169 141 89 203 All other domestic loans .... 1,495 1,813 1,830 1,728 1,627 1,570 1,431 1,413 1,390 -233 297 41 141 64 Foreign commercial and in­ dustrial loans.................. 2,034 1,995 1,981 1,939 1,898 1,995 2,076 1,956 1,940 95 -137 184 -42 Total loans............................. 130,763 30,881 31,120 31,254 30,885 31,465 31,921 31,883 32,308 -491 -667 -457 275 -1,158 1 Loan reclassification at a large bank on June 28, 1972, resulted in a For description of series see article “Revised Series on Commercial and reduction of $357 million in total commercial and industrial loans and of Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. $464 million in “term” commercial and industrial loans. Commercial and industrial “term” loans are all outstanding loans with Note.—About 160 weekly reporting banks are included in this series; an original maturity of more than 1 year and all outstanding loans granted these banks classify, by industry, commercial and industrial loans amount­ under a formal agreement—-revolving credit or standby—on which the ing to about 90 per cent of such loans held by all weekly reporting banks original maturity of the commitment was in excess of 1 year. and about 70 per cent of those held by all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 DEMAND DEPOSIT OWNERSHIP □ JULY 1972 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, Financial Nonfinancial Consumer Foreign All IPC business business other All commercial banks: 17.1 85.3 49.0 1.6 9.6 162.5 17.0 88.0 51.4 1.4 10.0 167.9 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 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 18.5 98.4 58.6 1.3 10.7 187.5 1972-Mar................................................................................. 18.3 94.1 59.2 1.3 10.6 183.6 Weekly reporting banks: 1970—Dec.................................................................................. 13.5 56.1 23.3 1.2 5.6 99.7 1971—Mar................................................................................. 14.1 52.4 23.9 1.3 5.7 97.3 14.1 53.4 25.3 1.3 5.7 99.8 13.7 52.9 24.1 1.2 5.5 97.4 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 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 13.7 55.8 24.6 1.1 5.4 100.7 14.4 58.6 24.6 1.2 5.9 104.8 1972—Jan.................................................................................. 14.4 56.8 25.4 1.1 5.9 103.7 Feb.................................................................................. 13.7 55.4 24.4 1.1 5.9 100.5 Mar................................................................................. r13.9 56.0 r25.2 1.2 *■5.9 >•102.1 Apr.................................................................................. 14.3 56.9 27.0 1.2 5.9 105.4 13.8 56.2 25.2 1.3 5.7 102.1 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, June 30, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1969 1970 1971 1971 bank 1969 1970 1971 1971 All commercial......................... 1,131 804 746 680 All member—Cont. Insured................................... 1,129 803 745 677 Other reserve city............... 304 143 125 112 National member.................. 688 433 407 387 571 437 411 371 State member........................ 188 147 129 95 All nonmember...................... 255 224 210 197 All member............................... 876 580 536 482 Insured ............................... 253 223 209 195 Noninsured......................... 2 1 1 2 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

JULY 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 1972—Mar. 1 2,942 1.717 1,225 1,641 347 1.294 8 2,896 1,741 1,155 1,660 363 1.297 15, 2,807 1,709 1,098 1.658 360 1.298 22 2,801 1.717 1,084 1.623 358 1,265 29 2,779 1,792 987 1,617 361 1,256 Apr. 5, 2,806 1,737 1,069 1,620 358 1,262 12, 2,750 1,695 1,055 1.624 364 1,260 19 2,648 1,653 995 1,645 373 1,272 26 2,688 1,677 1,011 1.654 369 1.285 May 3 2,610 1,618 992 1.654 368 1.286 10 2,571 1,612 959 1.659 357 1.302 17 2,485 1,557 928 1,670 368 1.302 24, 2,446 1,564 882 1.660 366 1.294 31, 2,450 1,472 978 1,672 360 1,312 June 7, 2,413 1,513 900 1,697 374 1,323 14, 2,346 1,499 847 1,688 366 1.322 21, 2,268 1,439 829 1,680 357 1.323 28, 2,296 1,422 874 1,675 353 1,322 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im­ Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 . 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1.889 1,153 2,408 197 0 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—May, 31,115 392 12,608 1,356 16,759 7,494 2,927 2,382 545 112 253 4,203 2.889 1,479 3,126 June, 29,472 448 11,288 1,285 16,451 7,645 2,807 2,355 451 62 230 4,546 3,028 1,467 3,150 July. 29,746 469 11,001 1,339 16,937 7,454 2,594 2,168 426 55 228 4,577 3,118 1,388 2,948 Aug. 30,057 454 11,494 1,338 16,771 8,377 2,612 2,131 481 107 245 5,413 3,405 1,505 3,467 Sept. 29,946 395 11,909 1,505 16,137 8,148 2,803 2,227 575 51 259 5,036 3,286 1,470 3,391 Oct.. 31,205 454 11,897 1,527 17,327 7,811 3,000 2,350 650 52 261 4,499 3,148 1,366 3,296 Nov. 31,164 406 11,825 1.624 17,309 7,479 2,852 2,204 648 58 258 4,312 2,848 1,392 3,239 Dec. 29,934 495 10.923 1.478 17,038 7 , r 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 ^ Dec. r31,103 495 10.923 1.478 >•18,207 1972—Jan.. r32,167 505 11,922 1,582 >•18,158 7,601 2,917 2,157 761 75 253 4,356 2,558 1,584 3,458 Feb., r32,579 525 12,262 1.624 >•18,168 7,935 3,123 2,408 715 63 267 4,482 2,589 1,717 3,629 Mar. >■32,681 545 12,233 1,627 r18,276 7,985 3,083 2,246 837 143 263 4,496 2.597 1,774 3,613 Apr. r32,814 532 12,394 1,644 >•18,244 7,734 2,840 2,009 830 83 265 4,547 2.597 1,707 3,431 May 33,055 517 12,043 1,482 19,013 7,443 2,874 2,117 757 143 261 4,165 2,683 1,596 3,164 ^ 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 □ JULY 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during- Rate Effective date Rate Effective date Rate Effective date Rate 192 9 5 Vi-6 1955—Aug. 4.......... 3*4 1968—Apr. 19.. 6% Nov. 1.......... 5%*-5% Oct. 14.......... 3*4 Sept. 25. . 6 -6*4 4.......... 5*4 *-5 5/8 193 0 3*4-6 Nov. 13. . 6*4 8.......... 5*4* 193 1 234-5 1956—Apr. 13.......... 3V4 Dec. 2. 6*4 22.......... 5H-5V4* 193 2 31/4-4 Aug. 21.......... 4 18.. 6V4 29.......... 5 *4-5 *4* 193 3 1*4-4 5*4-5%- 1957—Aug. 6.......... 4*4 1969—Jan. 7.. 7 5*4* 1934— Mar. 17.. 7*4 27.......... 5*4-5*4* 1947 (Nov.) 1958—Jan. 22.......... 4 June 9.. 8 Vi 31.......... 5*4* 194 E 7— ffe D ct e i c v . e i . date iy4 1959— A S S M e e p a p p r y t t . . . 2 1 1 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 3 4 * * 4 4 1970— D N S M e o e a p c v r t . . . . 2 2 2 2 1 3 2 1 5 2 . . . . . . . . . . W m V 7 /4 2 I—J F a e n b . . 2 2 3 1 3 8 4 1 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4 5 1 3 3 y - / 5 / 4 2 8 8 - - - * - 5 5 4 6 4 * * 3 - * 4 5 4 4 * * * - 4* 1948—Aug. 1 2 1 1 9 9 6 6 0 5 — — A D u ec g . . 2 6 3 . . . . . . . . . . . . . . . . . . . . 5 4*4 1971—Jan. 1 1 6 8 5 . . . . . 6 6 6 1 * / 4 4 Mar. 2 1 3 3. . . . . . . . . . . .. . . .. . . . 4 43 * 4 4 4 3 * -4 4 3 * 4* 1950—Sept. 22.......... 2*4 Feb. 16.. 5*4 27.......... 434*-47/8-5 1966—Mar. 10.......... 5*4 Mar. 11. . 5 *4-5*4 434 *-5 1951—J O a c n t . . 1 8 7 . . . . . . . . . . . . . . . . . . . . 2 2V *4 4 J A u u n g e . 2 1 9 6 . . . . . . . . . . . . . . . . . . . . 5 6 % 19. . 51/4 1 5 7 . . . . . . . . . . . . . . . . . . . . 5 5 * *-5 *4 Dec. 3 1967—Jan. 26-27... 5*4-5% 1971—A M p a r y . 23. , 5 5 * * 4 4 -5*4 30.......... 5 5*-5*4-5*4 1953—Apr. 27.......... 31/4 N M o a v r . . 2 2 0 7 . . . . . . . . . . . . . . . . . . . . 5 6 *4 July 6.. 5 6 *4-6 26.......... 5 5 * * - - 5 5 * * 4 4-53/g 1954—Mar. 17.......... 3 Oct. 20.. 5% 1 Date of change not available. Note.—Beginning Nov. 1971, several banks adopted a floating prime rate keyed to money market variables. Asterisk denotes prime rate charged by the majority of commercial banks. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 Short-term 35 centers..................................... 5.59 5.52 7.07 7.08 6.53 6.44 5.94 5.76 5.57 5.44 5.33 5.31 New York City........................ 5.28 5.35 6.54 6.47 6.10 5.92 5.61 5.27 5.28 4.97 5.21 5.38 7 Other Northeast................... 5.81 5.72 7.25 7.20 6.73 6.58 6.10 5.91 5.72 5.54 5.46 5.45 8 North Central....................... 5.54 5.37 6.70 6.72 6.31 6.21 5.85 5.60 5.64 5.46 5.34 5.17 7 Southeast............................... 5.78 5.87 7.30 7.39 6.77 6.73 5.96 6.11 5.47 5.76 5.30 5.29 8 Southwest.............................. 5.88 5.79 7.02 7.05 6.44 6.43 6.04 5.81 5.71 5.60 5.60 5.58 4 West Coast............................ 5.60 5.39 7.45 7.41 6.77 6.69 6.12 6.08 5.55 5.46 5.35 5.07 Revolving credit 35 centers..................................... 5.59 5.24 6.52 6.60 6.28 6.16 5.69 5.60 5.60 5.31 5.57 5.18 New York City........................ 5.44 5.07 5.92 6.06 5.97 5.51 5.41 5.34 5.35 5.22 5.44 5.05 7 Other Northeast................... 5.82 5.41 7.56 7.37 6.73 6.56 5.87 5.44 6.09 5.28 5.76 5.38 8 North Central....................... 5.84 5.67 6.36 7.14 6.00 5.95 5.74 5.55 5.73 5.32 5.86 5.73 7 Southeast............................... 5.13 5.76 5.95 6.03 6.05 6.13 5.44 5.56 5.86 4.91 5.74 8 Southwest.............................. 5.98 5.91 6.52 6.65 6.48 5.94 5.91 5.69 6.22 6.44 5.85 5.73 4 West Coast............................ 5.57 5.13 6.90 6.67 6.37 6.36 5.72 5.72 5.47 5.10 5.55 5.04 Long-term 35 centers..................................... 5.87 5.64 7.03 6.98 6.65 6.85 6.26 6.19 5.87 6.13 5.78 5.44 New York City........................ 5.66 5.35 5.55 5.75 6.26 5.77 5.99 5.83 5.54 5.62 5.64 5.29 7 Other Northeast................... 6.03 5.99 7.76 7.59 6.60 7.07 6.45 6.51 6.01 6.88 5.85 5.52 8 North Central....................... 5.92 5.42 6.83 6.39 6.94 6.75 6.00 6.08 6.12 6.04 5.84 5.17 7 Southeast............................... 6.45 7.07 6.58 7.81 6.63 9.03 7.10 6.78 7.05 9.53 5.50 5.50 8 Southwest.............................. 6.37 6.16 6.92 6.57 6.95 6.67 6.33 6.42 6.29 6.68 6.35 5.87 4 West Coast........................... 5.80 5.80 7.49 7.55 6.35 6.24 6.37 6.02 5.25 5.04 5.79 5.87 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

JULY 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 Finance Prime CO. Prime Period 4 c p - o a t m p o e l 6 r . - d p p ir l a e a p c c t e e l d r y , b a a a c n n c c k e e e p s r t , s ­ ’ F f r e u a d n t e e d r 3 s al 3-month bills5 6-month bills5 9- to 12-month issues 3- to 5months1 m 3- o t n o t h 6 s - 2 90 days1 n R ew at e is o su n e M y a ie r l k d et n R ew at e is s o u n e M y a ie r l k d et bi 1 ll - y (m ea a r r­ Other6 is y s e u a e r s 7 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—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 Apr.................. 4.58 4.38 4.43 4.17 3.723 3.70 4.218 4.22 4.65 4.84 6.01 May................. 4.51 4.38 4.25 4.27 3.648 3.68 4.064 4.12 4.44 4.58 5.69 June................ 4.64 4.45 4.47 4.46 3.874 3.91 4.270 4.35 4.70 4.87 5.77 Week ending— 1972—Mar. 4.......... 3.90 3.80 3.60 3.18 3.446 3.44 3.762 3.78 4.17 4.19 5.50 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 5.84 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 8.............. 4.50 4.38 4.40 4.16 3.798 3.80 4.367 4.38 4.82 5.01 6.07 15.......... 4.63 4.38 4.50 4.18 3.731 3.81 4.223 4.30 4.77 4.96 6.08 22.......... 4.63 4.38 4.48 4.05 3.849 3.64 4.278 4.19 4.60 4.81 6.02 29.......... 4.55 4.38 4.33 4.20 3.513 3.54 4.004 4.01 4.39 4.57 5.86 May 6.......... 4.55 4.38 4.25 4.25 3.604 3.56 3.998 4.03 4.37 4.52 5.72 13 4.50 4.38 4.25 4.20 3.462 3.58 3.907 4.03 4.42 4.55 5.73 20.......... 4.50 4.38 4.25 4.32 3.699 3.74 4.118 4.23 4.53 4.67 5.71 27.......... 4.50 4.38 4.25 4.24 3.825 3.78 4.233 4.19 4.47 4.57 5.62 June 3.......... 4.50 4.38 4.25 4.38 3.762 3.82 4.106 4.20 4.51 4.66 5.64 10.......... 4.50 4.38 4.35 4.48 3.861 3.86 4.243 4.25 4.62 4.80 5.71 17.......... 4.63 4.38 4.38 4.46 3.798 3.87 4.187 4.29 4.62 4.80 5.73 24.......... 4.65 4.50 4.53 4.39 3.924 3.97 4.328 4.40 4.69 4.89 5.81 July 1.......... 4.83 4.58 4.70 4.49 4.023 3.96 4.484 4.50 4.92 5.02 5.87 1 Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 INTEREST RATES □ JULY 1972 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings / Period United and local rating group price ratio price ratio ( S l t o a n te g s ­ Total i term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 1962............................................... 3.95 3.30 3.03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963............................................... 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964............................................... 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965............................................... 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................... 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967............................................... 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968............................................... 5.25 4.48 4.20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 1969............................................... 6.10 5.73 5.45 6.07 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.05 1970............................................... 6.59 6.42 6.12 6.75 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.28 1971............................................... 5.74 5.62 5.22 5.89 7.94 7.39 8.56 7.57 8.38 8.13 6.69 3.14 5.44 1971—June.................................... 5.94 5.98 5.65 6.36 8.14 7.64 8.75 7.80 8.43 8.39 6.99 3.10 5.74 July..................................... 5.91 6.12 5.75 6.58 8.14 7.64 8.76 7.85 8.46 8.34 7.03 3.13 Aug.................................... 5.78 5.84 5.56 6.21 8.12 7.59 8.76 7.80 8.48 8.30 7.04 3.18 Sept.................................... 5.56 5.45 5.09 5.86 7.97 7.44 8.59 7.64 8.39 8.12 6.90 3.09 5.65 Oct...................................... 5.46 5.05 4.75 5.38 7.88 7.39 8.48 7.58 8.25 8.04 6.75 3.16 Nov.................................... 5.44 5.20 4.94 5.53 7.77 7.26 8.38 7.46 8.13 7.96 6.78 3.31 Dec..................................... 5.62 5.24 4.99 5.55 7.75 7.25 8.38 7.42 8.12 7.92 6.81 3.10 4.86 1972—Jan...................................... 5.62 5.13 4.84 5.49 7.66 7.19 8.23 7.34 7.98 7.85 6.57 2.96 Feb..................................... 5.67 5.29 5.01 5.63 7.68 7.27 8.23 7.39 8.00 7.84 6.67 2.92 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 Apr..................................... 5.74 5.45 5.16 5.79 7.71 7.30 8.24 7.42 8.04 7.87 6.91 2.83 May.................................... 5.64 5.33 5.09 5.65 7.71 7.30 8.23 7.43 8.01 7.88 6.90 2.88 June................................... 5.59 5.35 5.07 5.72 7.66 7.23 8.20 7.36 7.98 7.83 6.93 2.87 Week ending— 1972—Apr. 1............................. 5.69 5.40 5.05 5.70 7.67 7.24 8.25 7.37 8.04 7.82 6.75 2.89 8............................. 5.73 5.49 5.20 5.80 7.67 7.25 8.22 7.37 8.02 7.81 6.86 2.82 15............................. 5.76 5.54 5.25 5.90 7.69 7.28 8.22 7.39 8.01 7.84 6.87 2.79 22............................. 5.76 5.50 5.20 5.90 7.74 7.33 8.26 7.46 8.06 7.89 6.94 2.82 29............................. 5.71 5.26 5.00 5.55 7.76 7.36 8.26 7.48 8.06 7.92 6.97 2.88 May 6............................. 5.69 5.36 5.10 5.70 7.73 7.34 8.22 7.45 8.01 7.89 6.91 2.92 13............................. 5.69 5.41 5.20 5.70 7.71 7.33 8.20 7.44 8.00 7.86 6.93 2.94 20............................. 5.64 5.35 5.15 5.60 7.72 7.30 8.25 7.44 8.02 7.89 6.89 2.90 27............................. 5.57 5.21 4.90 5.60 7.70 7.27 8.25 7.40 8.01 7.88 6.92 2.81 June 3............................. 5.56 5.15 4.85 5.50 7.67 7.23 8.22 7.36 7.98 7.86 6.86 2.83 10............................. 5.59 5.31 5.10 5.65 7.67 7.24 8.21 7.36 7.99 7.84 6.88 2.88 17............................. 5.59 5.39 5.20 5.75 7.67 7.25 8.21 7.36 7.99 7.84 6.97 2.86 24............................. 5.58 5.46 5.20 5.80 7.66 7.23 8.18 7.35 7.96 7.83 6.92 2.85 July 1............................. 5.61 5.45 5.20 5.80 7.65 7.21 8.20 7.36 7.99 7.80 6.95 2.90 Number of issues2....................... 8 20 5 5 119 20 30 40 29 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Govt.: Averages of daily figures for bonds maturing or callable in 10 years arately. Because of a limited number of suitable issues, the number or more. (2) State and local govt.: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are 23, 1967, Aaa-rated railroad bonds are no longer a component of the from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios 2 Number of issues varies over time; figures shown reflect most recent are based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios Note.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Bonds: Monthly and weekly yields are computed as follows: (1) U.S. adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com­ companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5 Vi hours per day, or 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

JULY 1972 d 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 A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e al x 1 NYSE AMEX 196 2 . 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1,225 196 3 . 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 . 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 197 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—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 Apr........ 67.66 82.5 65.1 108.81 121.34 47.38 55.70 60.65 66.10 55.50 37.48 80.36 28.24 18,402 5,584 May 68.59 84.6 65.3 107.65 120.16 45.06 54.94 59.82 65.30 53.43 37.04 78.32 c27.63 15,270 4,184 June 69.05 83.4 65.6 108.01 120.84 43.66 53.73 59.87 65.76 51.26 36.32 76.59 27.47 14,298 3,872 Week ending— 1972—June 3, 69.34 85.6 65.6 109.83 122.84 44.80 54.76 60.95 66.83 53.92 36.97 78.48 27.82 15,342 4,048 10, 69.02 84.4 65.7 107.76 120.45 44.00 54.22 59.87 65.60 51.62 36.71 77.25 27.58 14,252 4,310 17, 69.09 83.4 65.5 107.95 120.78 44.03 53.59 59.86 65.73 51.40 36.31 76.62 27.49 15,476 3,897 24, 69.17 82.8 65.6 108.48 121.45 43.57 53.51 60.06 66.06 51.38 36.18 76.35 27.45 13,901 3,633 July 1, 68.85 82.8 65.6 107.17 119.95 42.62 53.20 59.29 65.24 49.67 37.79 75.33 27.22 13,219 3,485 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s g t r ) e & i s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e c i n t o r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r n . n s o ) t f C c t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & i 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 u o l o s a a u . r n n s o ) t f 1965....................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966....................... 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967....................... 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968....................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969....................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970....................... 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971....................... 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1971—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 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.............. 7.62 .95 26.5 75.0 37.3 27.6 7.45 .82 24.9 74.7 32.5 24.1 Feb.............. 7.45 1.02 27.0 76.5 37.2 27.8 7.35 .79 25.4 75.8 33.1 24.8 Mar.r.......... 7.38 .84 27.2 76.2 37.7 28.2 7.31 .77 25.1 75.6 32.7 24.4 Apr.r.......... 7.38 .83 27.2 76.0 38.3 28.5 7.30 .78 25.2 75.3 33.6 24.9 May............ 7.38 .84 27.2 76.1 38.2 28.4 7.34 .73 25.1 75.3 33.0 24.4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ JULY 1972 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Other Free credit balances security at brokers 5 End of period By source By type credit at banks 4 Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1971—May............ 5,701 4,874 827 4,620 754 213 57 41 16 1,122 1,235 431 2,084 June............ 5,783 4,976 807 4,720 733 213 58 43 16 1,228 1,263 415 2,023 July.............. 5,860 5,050 810 4,790 737 215 56 45 17 1,091 1,183 410 1,841 Aug.............. 5,917 5,121 796 4,850 723 227 58 44 15 1,208 1,206 405 1,838 Sept............. 5,990 5,208 782 4,930 713 230 54 48 15 1,182 1,237 364 1,734 Oct............... 6,016 5,238 778 4,950 711 239 53 49 14 1,194 1,204 393 1,765 Nov............. 5,995 5,198 797 4,910 731 242 51 46 15 1,193 1,209 412 1,758 Dec.............. 6,835 5,700 835 5,400 764 258 57 42 14 1,197 1,298 387 1,837 1972—Jan............... 6,850 5,989 861 5,700 789 252 56 37 16 1,182 1,313 448 2,040 Feb............... 7,427 6,477 950 6,180 877 256 56 41 17 1,170 1,327 434 2,108 Mar............. 7,847 6,896 951 6,620 883 240 53 36 15 1,158 1,294 442 2,070 Apr.............. 8,250 7,283 967 7,010 898 240 57 33 12 1,150 1,278 433 2,030 May............ 8,472 7,478 994 7,200 924 241 58 37 12 1,141 1 ,296 403 1,930 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 debt Net in debit status Total E pe n r d io o d f l ( d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 40 der End of period s c t r a e t d u i s t 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f b m a d i l o l a l l i n l o a c n r e s s ) lars) 1 46.5 47.1 6.4 4,360 1971—May. 4,620 10.6 15.7 36.7 18.0 7.4 11.6 45.1 47.8 7.0 4,250 June. 4,720 9.6 14.4 34.9 20.1 8.6 12.2 45.2 46.7 8.1 4,190 July.. 4,790 8.3 12.2 29.1 25.2 11.0 14.1 44.6 48.0 7.4 4,230 Aug.. 4,850 9.3 14.4 35.4 19.6 8.9 12.6 44.2 47.0 8.8 4,160 Sept.. 4,930 8.7 13.1 34.3 20.7 9.9 13.3 45.5 45.2 9.3 4,060 Oct... 4,950 7.5 10.9 28.7 24.4 12.1 16.3 44.6 45.1 10.2 4,000 Nov.. 4,910 7.3 10.7 25.9 26.2 13.1 16.8 35.0 55.7 9.4 7,300 Dec.. 5,400 8.6 12.7 27.1 29.9 10.2 11.5 1972—Jan........................ 36.8 55.9 7.3 5,780 1972—Jan... 5,700 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 35.8 56.0 8.1 5,990 Mar.. 6,620 7.6 11.2 22.3 38.5 10.6 9.7 35.5 56.5 8.0 5,920 Apr.. 7,010 7.1 10.2 19.5 40.0 12.8 10.5 34.7 57.1 8.0 5,860 May. 7,200 6.9 9.9 19.3 38.6 15.0 10.4 Note.—Special miscellaneous accounts contain credit balances that i 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

JULY 1972 o SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r g li T e a a t n b o i n e e i t d s a l r i a l ­ l D i e t p s o 2 s­ l O ia t t i b e h i s e li r ­ G r c e o e a s u n e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 reserve accts. 3 or 3-6 6-9 Over Total less 9 1963............... 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 1964............... 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965............... 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966............... 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967............... 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968............... 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969............... 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970............... 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—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.4.. 62,258 3,224 3,261 433 18,417 1,246 1,802 90,641 82,327 1,962 6,352 1,045 676 409 1,442 3,572 Feb.... 62,517 3,523 3,306 459 19,055 1,255 1,808 91,924 83,269 2,229 6,427 1,277 759 533 1,414 3,983 Mar... 62,947 3,660 3,380 515 19,659 1,256 1,852 93,268 84,809 1,991 6,468 1,448 769 681 1,429 4,327 Apr__ 63,299 3,452 3,425 548 20,192 1,239 1,868 94,022 85,299 2,231 6,492 1,720 747 742 1,437 4,646 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 a T s o s t e a ts l Total United State and Foreign 1 Total Bonds Stocks M gag o e rt s ­ e R st e a a t l e P lo o a li n c s y a O s t s h e e ts r States local 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--Apr.r........................... 212,870 10,891 4,455 3,329 3,107 93,899 75,702 18,197 74,529 6,442 16,376 10,733 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 Feb............................... 224,736 11,341 4,609 3,535 3,197 102,821 80,795 22,026 75,456 6,999 17,132 10,987 Mar.............................. 226,024 11,517 4,744 3,532 3.241 103,798 81,099 22,699 75,424 7,048 17,212 11,025 Apr............................... 227,893 11,083 4,476 3,373 3,234 105,249 82,293 22,956 75,469 7,034 17,360 11,698 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 □ JULY 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o g r e t s ­ I s 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 n d t f d ­ 1961....................... 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,872 1962....................... 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,193 1963....................... 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,572 1964....................... 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,549 1965....................... 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2,707 1966....................... 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1,270 2,136 1,482 1967....................... 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3,004 1968....................... 130,802 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—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.............. 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.............. 177,614 20,682 2,829 11,144 212,269 180,556 13,248 7,275 4,853 6,337 3,354 8,659 Mar............. 180,145 21,427 2,521 11,291 215,384 184,843 13,261 6,759 5,077 5,444 4,110 9,864 Apr............. 182,711 21,449 2,551 11,440 218,151 186,617 13,262 6,847 5,283 6,142 4,047 10,837 May*.......... 185,429 22,058 2,459 11,704 221,650 188,833 13,257 6,794 5,616 7,150 4,529 11,799 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 t n e e o c m rs e ­ s I m nv e e n s ts t­ p a o d n s e i d ­ 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 t s ­ n t a u ( o L n r t e e d ) s s c a o ( t o i t A 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—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 Mar.. 5,992 4,342 113 6,730 2,008 1,708 18,342 17,992 2,267 1,840 5,967 5,689 8,139 7,186 Apr... 5,913 4,233 81 6,729 1,762 1,717 18,403 18,131 2,260 1,833 6,105 5,879 8,238 7,382 May.. 5,853 4,067 108 6,528 1,789 1,718 18,598 17,959 2,181 1,852 6,229 6,018 8,343 7,382 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

ILY 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE ISSUES OF FEDERALLY SPONSORED AGENCIES, MAY 31, 1972 Amount Cou­ Amount (millions Agency, and date of issue pon (millions Agency, and date of issue illioi of dollars) and maturity rate of dollars) and maturity lollai Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 394 Debentures: 12/1/71 - 6/1/72............ 357 250 12/11/61 - 6/12/72... 4H 100 1/3/72- 10/1/73.............. 358 310 2/10/70 - 6/12/72. 8.70 300 2/1/72 -8/1/72............... 458 350 5/11/70 - 9/11/72___ 8.40 400 4/3/72- 10/2/72.............. 262 400 6/10/70 - 9/11/72. . .. 7.40 200 5/1/72- 11/1/72............. 317 400 11/10/69 - 12/11/72. . 8.00 200 10/1/70 - 10/1/73.......... 100 450 10/13/70 - 12/11/72. . 7.20 400 300 11/10/70 - 3/12/73. . . 7.30 450 Federal intermediate 250 12/12/69 - 3/12/73. . . 8.30 250 credit banks 300 6/12/61 - 6/12/73.... 41/4 146 Debentures: 300 7/10/70 - 6/12/73.... 8.35 350 9/1/72 -6/1/72............... 418 181 7/12/71 - 6/12/73........ 6.75 550 10/4/71 - 7/3/72............ 435 228 3/10/70 - 9/10/73.... 8.10 300 11/1/71 - 8/1/72.............. 594 250 6/10/71 -9/10/73........ 6.13 350 12/1/71 - 9/5/72............ 568 265 12/10/70 - 12/10/73. . 5.75 500 1/3/72 - 10/2/72.............. 439 300 8/10/71 - 12/10/73.. . . 7.15 500 2/1/72- 11/1/72.............. 629 350 12/1/71 - 3/11/74___ 5.45 400 3/1/72- 12/4/72.............. 558 300 4/10/70 - 3/11/74___ 7.75 350 4/3/72 - 1/2/73................ 514 200 8/5/70 - 6/10/74....... 7.90 400 5/1/72 - 2/1/73................ 482 350 11/10/71 -6/10/74.... 5.70 350 3/2/70 - 3/1/73.............. 203 200 9/10/69 - 9/10/74.... 7.85 250 9/1/70-7/2/73................ 200 200 2/10/71 - 9/10/74........ 5.65 300 7/1/71 - 1/2/74................ 212 5/10/71 - 12/10/74.... 6.10 250 1/4/71 - 7/1/74.............. 224 9/10/71 - 12/10/74.... 6.45 450 5/1/72 - 1/2/75................ 240 11/10/70 - 3/10/75. . . 7.55 300 1/3/72 - 7/1/75................ 302 10/12/71 - 3/10/75. . . 6.35 600 4/12/71 -6/10/75........ 5.25 500 Federal land banks 10/13/70 - 9/10/75. . . 7.50 350 Bonds: 175 3/10/72 - 12/10/75. . . 5.70 500 6/22/70 - 7/20/72.......... 8.20 442 150 3/11/71 - 3/10/76........ 5.65 500 9/14/56 - 9/15/72.......... 3K 109 200 6/10/71 -6/10/76........ 6.70 250 9/22/69 9/15/72.......... 8.35 337 350 2/10/72 - 6/10/76........ 5.85 450 10/23/72 - 10/23/72___ 5% 200 140 11/10/71 -9/10/76.... 6.13 300 7/20/71 10/23/72.......... 6.50 446 150 7/12/71 - 12/10/76---- 7.45 300 7/20/70 - 1/22/73.......... 7.95 407 150 2/13/62 - 2/10/77. 41/2 198 2/20/63 - 2/20/73-78 . . . 4K 148 12/10/70 - 6/10/77. . . 6.38 250 4/20/72 - 4/23/73............ 5.20 433 5/10/71 -6/10/77........ 6.50 150 1/20/70 7/20/73.......... 8.45 198 9/10/71 -9/12/77........ 6.88 300 8/20/73 - 7/20/73........... 7.95 350 10/12/71 - 12/11/78. . 6.75 300 4/20/70 - 10/22/73........ 7.80 300 12/10/71 - 12/10/79. . 6.55 350 2/20/72 - 2/20/74.......... 41/2 155 2/10/72 - 3/10/80........ 6.88 250 10/20/70 - 4/22/74 7.30 354 1/21/71 - 6/10/81___ 7.25 250 10/21/71 - 7/27/74........ 5.85 326 967 9/10/71 -9/10/81........ 7.25 250 4/20/71 - 10/21/74.......... 5.30 300 2/10/71 - 6/10/82........ 6.65 250 2/20/70 - 1/20/75.......... 8^8 220 250 3/11/71 - 6/10/83........ 6.75 200 4/20/65 - 4/21/75.......... 4Vs 200 200 11/10/71 -9/12/83.... 6.75 250 2/15/72 - 7/21/75 5.70 425 249 4/12/71 -6/11/84........ 6.25 200 7/20/71 - 10/20/75.......... 7.20 300 12/10/71 - 12/10/84. . 6.90 250 4/20/72 - 1/20/76............ 6V4 300 3/10/72 - 3/10/92. 7.00 200 2/21/66 - 2/24/76.......... 5.00 123 7/20/66 7/20/76.......... 5K 150 10/27/71 - 10/20/77___ 6.35 300 5/2/66 4/20/78 ............ 5Vs 150 400 2/20/67 - 1/22/79.......... 5.00 285 250 2/23/71 4/20/81............ 6.70 224 200 4/20/72 4/20/82............ 6.90 200 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 □ JULY 1972 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 196 8 153,671 172,802 6,030 178,833 -25,161 21,357 5,944 3,271 2,049 -1,119 23,100 -397 1,700 3,364 196 9 187,784 183,072 1,476 184,548 3,236 6,142 633 7,364 2,089 -1,384 2-1,295 596 1,616 269 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 Half year: 1970—-Jan.-June. 102,910 96,893 767 97,661 5,248 2,693 -1,310 5,451 346 -4,415 2,918 -896 1,188 July-Dee.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—Ma y >•13,176 rl 6,884 270 r17,154 r —3,979 4,954 40 2,095 r703 '2,196 r2,095 r600 '-1,012 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 Mar.......... 15,237 20,000 327 20,327 -5,090 3,312 -103 -683 97 3,795 591 -16 1,869 Apr........... 24,534 19,113 -515 18,598 5,935 -2,039 -44 -1,770 1,746 -2,059 4,047 1,338 1,508 May.......... 17,275 19,723 237 19,960 -2,685 2,607 272 3,527 -29 -618 -2,030 -1,617 -346 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 ec g u e r n it c ie y s Sp G I e n c o v i v a 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 te s c s s ia : 3 l E p T h q u b o e b u y l t l a d a i l l c s : s c p p o G r o N r i n o v p o s v a s w o . t t — e . r - e 6 d issues Fiscal year: 196 8 1,074 4,113 111 5,298 347,578 24,399 59,374 19,766 2,209 290,629 10,041 196 9 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 197 0 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 Calendar year 197 0 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 197 1 2,020 9,173 113 11,306 424,131 11,044 85,544 22.922 825 325,884 39,860 Month: 1971—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 39,883 Mar... 1,293 6,391 2 7,685 427,343 11,034 84,804 22,935 825 329,814 40,109 Apr.... 1,871 9,724 136 11,732 425,304 10,991 83,034 24.681 825 327,755 May... 2,144 7,420 136 9,700 427,912 11,263 86,561 24,652 825 327,137 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

JULY 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 Total W he i l t d h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c E o P r m t n o a a y l t p x l r ­ e i l b o s y u a m t S n i e o e d l n n f - s t 1 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 E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r ip i e s ­ t c s . 3 taxes empl. Fiscal year: 1968.................................... 153,671 57,301 20,951 9,52768,72629,897 1,23227,680 1,544 3,346 2,05234,62214,079 2,038 3,051 2,491 1969.................................... 187,78470,18227,25810,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 1970.................................... 193,74377,41626,23613,24090,41235,037 2,20837,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 1971.................................... 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 Half year: 1970—Jan.-June................ 102,91038,61920,465 12,75946,325 19,858 1,22620,134 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 2,06821,983 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 1,67322,989 8,961 1,838 2,395 1,718 Month: 1971—May......................... r13,176 *•6,215 735 3,114 r3,836 878 255 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 Jan........................... 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 Mar......................... 15,237 7,782 1,323 5,200 3,905 4,995 273 3,787 167 71 325 4,350 1,130 264 602 263 Apr.......................... 24,534 6,599 8,650 3,284 11,985 5,145 250 3,877 1,153 343 283 5,655 1,091 215 372 342 May........................ 17,275 8,141 1,413 2,997 6,557 967 234 5,281 223 1,636 303 7,443 1,371 235 461 475 Budget outlays4 Period Total t f i e N o d n e n a s ­ a e ­ l a I f n fa tl i . rs s S e p r a e a r ­ c ce h A c tu u g r r l e ­ i­ so N u u r r e a r a c ­ t l ­ es t C m r a a o e n n r m d c s e p ­ . d h e C o m a v u o n e u s m l d n i o n . - p g . E p m t d o a i n u w a o d n c n e a ­ r ­ w H e a e l n a f d a lt r h e e V ra e n t­ s In e t s e t r­ g G e o r e v a n l t. ­ t t I g i r n o a a o t c n n v r ­ a s t 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 1973 e 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 July-Dee................. 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—May........................ r17,154 6,043 056 274 94 r254 r709 r207 r780 *•5,855 877 *•1,672 r360 r —324 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 Mar......................... 20,327 7,158 361 310 16 265 876 342 932 7,111 1,045 1,801 401 -293 Apr.......................... 18,598 6,738 265 238 -196 255 793 9 728 6,936 929 1,792 419 -308 May........................ 19,960 7,107 268 207 126 265 713 490 1,033 6,914 973 1,784 389 -371 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 □ JULY 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l t s a i s c l 1 Total Total Bills M C a c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n l r n e d t­ ­ s T N o o ta n l m 3 ark b e o S t i a n n a b g v d l s ­ s e i S ss p u e e c s i a 4 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 52.5 78.1 1971—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 Apr. 425.3 340.4 263.0 98.3 114.7 50.0 2.3 75.1 55.9 83.1 May 427.9 339.5 261.9 98.1 113.4 50.4 2.3 75.2 56.2 86.6 June 427.3 335.8 257.2 94.6 113.4 49.1 2.3 76.3 56.5 89.6 1 Includes non-interest-bearing debt (of which $623 million on June 30, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1972, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s t i . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 O i m t n o v t i r h s e s c e s . ­ r 2 funds bonds securities 1939—Dec................ 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1965—Dec................ 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec................ 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec................ 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 1969—Dec................ 368.2 89.0 57.2 222.0 56.8 2.9 7.1 13.3 25.4 51.8 29.1 11.4 24.1 1970—Dec................ 389.2 97.1 62.1 229.9 62.7 2.8 7.0 10.5 23.1 52.1 29.8 20.6 21.4 1971—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 Mar............... 427.3 105.5 69.9 251.9 63.3 2.7 6.5 12.3 21.6 55.2 22.3 49.9 18.1 Apr................ 425.3 105.5 70.3 249.5 61.9 2.7 6.4 11.2 21.5 55.5 21.9 49.8 18.5 May............... 427.9 109.1 71.6 247.2 60.2 2.8 6.3 12. 1 21.4 55.8 21.6 49.4 17.7 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over 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—Apr. 30........................................................ 262,989 122,263 98,321 23,942 94,849 26,348 9,392 10,137 May 31........................................................ 261,924 126,617 98,094 28,523 89,005 26,852 9,364 10,086 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—Apr. 30................................................ 20,445 3,087 2,343 744 7,735 4,822 2,346 2,456 May 31................................................ 20,438 3,003 2,255 748 7,738 4,895 2,346 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 Apr. 30................................................ 70,307 36,609 30,319 6,290 26,665 5,804 618 612 May 31................................................ 71,607 40,245 31,291 8,954 24,311 5,818 621 612 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—Apr. 30................................................ 172,237 82,567 65,659 16,908 60,449 15,722 6,428 7,069 May 31................................................ 169,879 83,369 64,548 18,821 56,956 16,139 6,397 7,018 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—Apr. 30......................................... 48,650 14,062 6,221 7,841 28,112 5,821 465 189 May 31........................................ 48,076 15,044 5,911 9,133 26,675 5,723 451 183 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—Apr. 30......................................... 2,730 384 196 188 1,247 500 302 297 May 31......................................... 2,747 456 249 207 1,214 493 298 287 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—Apr. 30........................................ 5,507 622 291 331 1,417 1,020 1,360 1,087 May 31........................................ 5,478 644 287 357 1,375 1,027 1,352 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 16 20 1972—Apr. 30......................................... 4,854 3,711 2,794 917 1,014 105 15 9 May 31......................................... 5,717 4,537 3,425 1,112 971 181 19 9 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—Apr. 30......................................... 3,103 806 483 323 1,357 615 150 176 May 31......................................... 3,006 803 458 345 1,276 607 144 176 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—Apr. 30........................................ 10,165 4,940 4,113 827 2,328 774 846 1,278 May 31........................................ 9,987 4,934 4,054 880 2,184 765 838 1,265 All 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—Apr. 30........................................ 97,228 58,042 51,561 6,481 24,974 6,887 3,290 4,033 May 31........................................ 94,868 56,951 50,164 6,787 23,261 7,343 3,295 4,016 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 5,647 commercial banks, 485 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 734 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 467 nonfinancial corporations and 486 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 503 State and local govts. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks “All others,” a residual, includes holdings of all those not reporting but for other groups are based on Treasury Survey data. Of total mar­ in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 U.S. GOVERNMENT SECURITIES □ JULY 1972 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total Dealers and brokers securities Within 1-5 5-10 Over Com­ All 1 year years years 10 years mercial other U.S. Govt, Other banks securities 1971—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 ,190 730 569 1972—Ja n 3,191 2,268 571 309 44 i 879 2 391 1,120 3 801 623 Feb........ 3,260 2,339 652 242 27 913 363 1,170 815 611 Mar....... 3,177 2,443 464 241 29 800 437 1,060 881 459 Apr....... 2,990 2,300 460 203 28 704 450 1,002 835 609 May 2,542 1,939 348 221 35 589 364 821 767 485 Week ending— 1972—May 3. 3,408 2,307 719 348 34 756 637 1,188 826 521 10, 2,353 1,836 272 218 29 524 355 729 746 332 17. 2,237 1,624 350 213 49 457 316 751 713 370 24. 2,461 1,917 315 189 40 690 273 728 770 528 31. 2,891 2,267 358 235 31 641 452 986 812 817 June 7. 2,481 1,858 357 241 25 558 403 799 720 483 14, 2,117 1,719 213 131 53 466 280 626 745 288 21, 2,076 1,673 239 134 30 451 299 693 632 431 28, 2,840 2,428 232 148 32 671 402 829 937 404 1 Beginning Jan. 5,1972, represents transactions of U.S. Govt, securities Note.—The transactions data combine market purchases and sales of dealers. U.S. Govt, securities dealers reporting to the F.R. Bank of New York. 2 Beginning Jan. 5, 1972, represents transactions of U.S. Govt, securities They do not include allotments of, and exchanges for, new U.S. Govt, brokers. securities, redemptions of called or matured securities, or purchases or 3 Beginning Jan. 5, 1972, includes transactions of dealers and brokers sales of securities under repurchase agreement, reverse repurchase (resale), in securities other than U.S. Govt., previously shown under “other” or similar contracts. Averages of daily figures based on the number of dealers and brokers. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commcrc;ial banks U.S. Period m t A a i t e l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r i a­ o A th l e l r 1971—May............... 2,646 2,115 189 331 11 818 1971—May........... 3,389 1,095 475 517 1,301 June............... 2,735 2,477 116 130 12 776 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 4,511 1,188 704 921 1,699 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 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 Mar................ 4,933 4,710 228 -32 27 489 Mar........... 4,662 1,347 907 949 1,458 Apr................. 3,573 3,713 20 -131 -29 422 3,400 1,044 746 657 953 May............... 4,257 4,089 84 102 -18 551 May........... 4,073 1,107 931 755 1,280 Week ending— Week ending— 1972—Apr. 5........ 3,954 3,897 124 -61 -5 422 1972—Apr. 5... 4,015 1,265 1,009 667 1,074 12........ 3,826 3,928 12 -92 -21 378 12... 3,606 1,078 840 673 1,015 19. .. 3,394 3,709 -77 -195 -42 349 19... 3,435 1,105 779 635 916 26........ 3,075 3,286 16 -189 -39 460 26. .. 2,562 719 475 645 724 May 3........ 4,084 3,912 180 16 -25 600 May 3. .. 3,759 1,181 772 655 1,151 10 4,175 3,916 151 138 -31 453 10. .. 3,966 1,192 843 674 1,257 17 4,240 4,106 56 100 -21 428 17. .. 4,138 1,198 979 671 1,290 24 4,193 4,049 37 117 -11 580 24. .. 3,951 957 932 861 1,201 31........ 4,613 4,501 30 87 -5 779 31 4,328 1,042 1,011 853 1,421 Note.—The figures include all securities sold by dealers under repur­ i 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

JULY 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JUNE 30, 1972 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. July 6, 1972 3,903 Dec. 28, 1972............. 1,799 Oct. 1 1973.....1% 30 Sept. 15, 1967-72..2 Vi 1,951 July 13, 1972 3.902 Dec. 31, 1972............. 1,701 Feb. 15 1974.....7% 2,960 Dec. 15, 1967-72..2 Vi 2,547 July 20, 1972 3.902 Jan. 31, 1973.............. 1.700 Apr. 1 1974.....1Vi 34 Aug. 15, 1972 .4 1,453 July 27, 1972 3.903 Feb. 28, 1973.............. 1.701 May 15 1974.....7% 4,334 Aug. 15, 1973 .4 3,894 July 31, 1972 1,703 Mar. 31, 1973............. 1.702 Aug. 15 1974.....55/g 10,284 Nov. 15, 1973 •41/s 4,340 Aug. 3, 1972 3.901 Apr. 30, 1973.............. 1,200 Oct. 1 1974.....IVi 42 Feb. 15, 1974.....41/8 2,468 Aug. 10, 1972 3.901 May 31, 1973.............. 1,200 Nov. 15 1974.....5% 7,212 May 15, 1974.....4% 2,853 Aug. 17, 1972 4.101 June 30, 1973............. 1,201 Feb. 15 1975.....53yA 5,148 Nov. 15, 1974....•37/s 2,236 Aug. 24, 1972 4.102 July 6, 1972, strip.. . 204 Feb. 15 1975.....57/s 2,045 May 15, 1975-85..4% 1,208 Aug. 31, 1972 5,798 Apr. 1 1975 ...IVi 8 June 15, 1978-83..31^ 1,516 Sept. 7, 1972 4.102 May 15 1975.....57/8 1,776 Feb. 15, 1980.....4 2,583 Sept. 14, 1972 4.101 May 15 1975.....6 6,760 Nov. 15, 1980.....3Vi 1,900 Sept. 21, 1972 4.102 Aug. 15 1975.....57/8 7,679 Aug. 15, 1981.....7 807 Sept. 28, 1972 4,105 Oct. 1 1975.....1% 30 Feb. 15, 1982.....6% 2,702 Sept. 30, 1972 1,702 Nov. 15 1975... . .7 3,115 May 15, 1985. ... .3% 1,014 Oct. 5, 1972 1,800 Treasury notes Feb. 15 1976.. 3,739 Nov. 15, 1986. .,•61/8 1,216 Oct. 12, 1972 1,801 Aug. 15, 1972.....5 2,574 Apr. 1 1976 .• • • 1 Vi 27 Aug. 15, 1987-92..414 3,778 Oct. 19, 1972 1,801 Oct. 1, 1972.. ...1% 33 May 15 1976.....5% 2,802 Feb. 15, 1988-93..4 242 Oct. 26, 1972 1,801 Nov. 15, 1972.... .6 2,285 May 15 1976..••-6Vi 2,697 May 15, 1989-94..41/8 1,529 Oct. 31, 1972 1,700 Feb. 15, 1973.....6 Vi 2,514 Aug. 15 1976.....71/i 4,194 Feb. 15, 1990 .3 Vi 4,388 Nov. 2, 1972 1,801 Feb. 15, 1973.....47/8 4,268 Oct. 1 1976,....1% 11 Feb. 15, 1995.....3 1,020 Nov. 9, 1972 1,800 Apr. 1, 1973.....1% 34 Nov. 15 1976.....61/4 1,283 Nov. 15, 1998 •3Vi 3,490 Nov. 16, 1972 1,801 May 15, 1973.....7% 5,844 Feb. 15 1977.,, , ,8 5,163 Nov. 24, 1972 1,801 May 15, 1973.. ...4% 3,792 Apr. 1 1977..,...1% 3 Nov. 30, 1972 3,502 Aug. 15, 1973......8 H 1,839 Aug. 15 1977.. ,...734 2,264 Convertiblebonds Dec. 7, 1972 1,800 Feb. 15 1978,.,...6V4 8,389 Investment Series B Dec. 14, 1972 1,802 Nov. 15 1978..,, ..6 8,207 Apr. 1, 1975-80..234 2,310 Dec. 21, 1972 1,802 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 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 at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 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—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.. .. 1,770 1,120 649 2 639 545 587 1,690 377 147 440 56 670 Feb.... 1,989 1,049 935 5 354 963 671 1,917 527 78 435 29 849 Mar... 2,195 1,278 687 225 5 434 930 830 2,081 457 133 340 329 820 Apr__ 2,089 1,371 712 6 471 660 957 2,050 482 229 427 10 902 May... 1,947 974 971 2 374 810 765 1,881 640 212 289 67 673 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 □ JULY 1972 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n . v S c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 al Other5 Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1964.................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965.................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966.................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967.................... 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968.................... 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969.................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1970..................... 88,666 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—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.c........ 9,410 2,455 1,876 1,679 12 3,387 2,665 1,942 723 86 637 Nov.c.... 10,568 3,254 1,300 2,286 24 3,704 2,436 2,003 433 270 999 Dec.c....... 6,911 443 698 2,058 39 3,673 2,473 1,190 1,283 169 1,031 1972—Jan........... 7,188 529 1,401 1,737 316 3,205 2,371 1,767 604 303 531 Feb........... 7,302 539 1,325 1,942 126 3,369 2,329 1,917 412 195 846 Mar.......... 6,556 586 400 2,185 156 3,229 2,253 1,677 577 282 694 Apr.......... 8,633 2,281 1,055 2,089 24 3,184 2,322 1,622 700 263 598 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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—Apr.................................... 819 316 198 243 268 67 607 660 247 26 484 107 631 158 143 131 250 89 447 141 403 2 763 113 June................................... 1,031 175 497 290 182 115 616 439 204 14 513 300 July.................................... 383 200 159 188 157 62 520 212 232 1,390 500 144 Aug.................................... 262 212 76 175 76 12 687 162 359 385 126 Sept.................................... 991 154 123 295 120 29 578 492 235 46 525 179 Oct..................................... 571 91 150 172 185 5 703 230 432 624 224 637 174 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..................................... 321 71 163 138 268 14 418 115 458 294 742 202 Feb..................................... 428 101 67 104 142 4 388 600 438 60 865 171 Mar.................................... 448 155 178 264 102 3 386 354 197 30 942 170 Apr.................................... 375 197 223 178 104 3 917 295 176 1 527 189 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 I year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 196 7 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 196 8 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 196 9 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 197 0 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 197 1 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1971—1.. 11,241 2,015 9,226 8,765 1,776 6,989 2,476 239 2,237 II. 13,212 2,979 10,233 8,974 2,681 6,294 4,238 299 3,939 III 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 1972—1.. 10,072 2,691 7,381 6,699 2,002 4,698 3,373 690 2,683 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 1971—1.................. 2,076 520 201 416 271 33 1,897 948 1,194 66 1,349 255 II................ 2,296 885 446 757 461 374 1,347 1,261 919 38 825 624 Ill.............. 852 676 -10 678 195 230 1,493 814 832 1,442 1,148 404 IV............... 1,361 453 190 445 -27 163 1,749 1,183 980 54 1,683 734 1972—1.................. 696 423 31 545 267 15 827 872 1,020 402 1,856 425 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 position 3 1960.............. 2,097 842 1,255 17,026 973 16,053 1971—May.. 307 428 -121 53,610 2,607 51,003 June.. 434 467 -33 53,560 2,830 50,730 1961.............. 2,951 1,160 1,791 22,789 980 21,809 July... 371 444 -73 51,424 2,856 48,568 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Aug... 432 394 38 53,798 3,016 50,782 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Sept... 304 471 -167 53,291 2,511 50,780 Oct.... 596 419 177 51,160 2,885 48,275 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Nov... 397 334 63 50,958 3,172 47,786 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Dec... 453 411 42 55,045 3,038 52,007 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 1972—Jan.... 521 475 46 56,694 3,163 53,531 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Feb... 404 514 -110 58,536 3,478 55,058 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Mar... 472 667 -195 58,740 3,251 55,489 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Apr... 405 655 -250 58,870 2,827 56,043 May.. 378 585 -207 59,736 2,763 56,973 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 □ JULY 1972 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i e t s s d ­ co c a n a l ti s l 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 e t s s d ­ co c a n t a l i s l 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—II... 75.8 34.5 41.3 24.9 16.4 55.7 1967.............. 79.8 33.2 46.6 21.4 25.3 43.0 III... 78.5 35.6 42.9 25.2 17.7 56.7 IV... 71.6 32.3 39.2 25.0 14.3 58.0 1968.............. 87.6 39.9 47.8 23.6 24.2 46.8 1969.............. 84.2 39.7 44.5 24.4 20.0 51.3 1971—1___ 83.0 38.3 44.8 25.6 19.2 59.4 1970............... 75.4 34.1 41.2 25.0 16.2 56.2 II ... 86.9 39.1 47.8 25.4 22.4 61.0 1971.............. 85.5 37.8 47.6 25.5 22.1 61.9 III... 85.8 37.5 48.2 25.7 22.5 62.7 IV... 86.0 36.4 49.6 25.3 24.4 64.4 1972—I. ... 91.9 39.4 52.5 25.8 26.6 66.3 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 1967.............................. 198.9 470.4 54.1 12.7 5.1 216.0 153.4 29.0 271.4 5.8 190.6 14.1 60.8 1968.............................. 212.0 513.8 58.0 14.2 5.1 237.1 165.8 33.6 301.8 6.4 209.8 16.4 69.1 1969............................. 213.2 555.9 54.9 12.7 4.8 261.0 184.8 37.8 342.7 7.3 238.1 16.6 80.6 1970—1......................... 213.3 561.0 52.9 12.5 4.7 264.5 188.0 38.5 347.7 7.2 238.4 18.0 84.2 II....................... 213.6 566.3 52.5 10.7 4.4 268.7 190.2 39.9 352.7 7.0 244.1 14.6 87.1 Ill..................... 214.0 567.6 53.7 9.3 4.2 270.0 191.8 38.5 353.6 6.8 243.0 15.4 88.3 IV..................... 217.0 572.1 56.9 9.7 4.2 268.1 194.4 38.8 355.2 6.6 244.5 15.9 88.1 1971—1........................ 220.4 576.9 55.8 10.1 4.2 269.8 196.8 40.1 356.5 6.1 240.3 18.6 91.4 II....................... 226.3 582.6 58.6 10.3 3.9 273.2 197.4 39.3 356.3 5.3 241.2 16.8 93.0 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 2................... 235.3 601.5 63.0 13.0 3.5 277.6 201.3 43.0 366.2 4.9 247.4 19.5 94.4 1972—1........................ 240.6 611.8 62.7 12.3 3.4 282.7 205.4 45.2 371.2 4.9 247.3 21.4 97.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment 2 New series (for which figures for the third and fourth quarters of 1971 companies, were published in the April Bulletin) has been temporarily abandoned by SEC. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Commu­ Total Period Total Mining nications Otherl (S.A. Durable d N ur o a n b ­ le R ro a a i d l­ Air Other Electric and G a o s t her A.R.) 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 ? 90 1.75 2.42 1.55 14.58 2.86 12.30 19.51 1970—IV................ 21.66 4.26 4.40 j ! * -t < o .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.................. 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II 2r............ 22.90 4.09 4.09 .61 .47 .76 .38 3.56 .71 8.24 90.69 Ill 2............ 22.41 3.95 4.00 .58 .49 .50 .34 3.72 .87 7.96 89.72 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

JULY 1972 □ REAL ESTATE CREDIT A 51 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage holders2 commercial properties5 type6 E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t n c i i n i o s a a t n l i n ­ s ­ 1 O h e o t r h s ld e 3 ­ r h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ w u F V n r H i d A t A e te - r n - - t C i v o e o n n n a ­ ­ l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1964 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 1969--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 44.7 131.1 107.1 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 49.1 143.6 117.5 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 50.1 148.3 121.6 26.7 114.4 324.9 III. . 485.6 383.6 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.7 153.5 125.8 27.7 IV .. 499.9 394.5 105.4 66.8 32.9 9.9 23.0 467.0 307.8 254.2 53.6 159.2 130.5 28.7 1 Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by savings trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone 2 U.S. agencies include former FNMA and, beginning fourth quarter are shown on p. A-51. 1968, new GNMA as well as FHA, VA, PH A, 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-51. Figures for first three quarters of each year are F.R. estimates. MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) Government- All residential Multifamily i U]nderwritte:n 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 n c n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in re A - d - an g V u te A a e r - - d 1 ti v o e n n a ­ l tutions tutions 1 1 1 9 9 9 6 4 4 5 1. . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 4 1 . . . 3 2 2 1 1 1 7 4 5 6. . . 7 9 7 3 9 8 4. . . 5 4 6 2 5 5 9 . . . 9 7 0 2 3 3 0 . . . 7 5 6 2 2 8. . . 3 2 2 1 1 1 9 9 9 6 5 63 4 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . 2 9 9 1 1 2 1 1 4 6 8 . . .3 3 3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 1965............................... 212.9 73.1 42.0 31.1 139.8 1 1 1 9 9 9 6 6 6 7 6 5 2 2 2 5 6 8 0 4 0 . . . 1 0 0 2 2 2 1 3 2 3 3 6 . . . 2 7 6 4 4 3 0 6 3 . . . 3 9 4 4 4 3 0 3 7 . . . 3 9 2 2 3 31 9 4 . . . 5 7 0 9 8 8 . . . 8 2 2 1 1 1 9 9 9 6 6 6 7 8 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 3 2 5 6 3 1 . . . 1 6 2 7 8 7 6 9 4 . . . 1 9 4 4 5 4 4 0 7 . . . 8 6 4 3 3 3 1 2 3 . . . 3 5 8 1 1 1 5 4 6 6 6 7 . . . 1 8 6 196 8 298.6 250.8 47.8 47.3 37.7 9.6 1970—1.......................... 268.5 91.6 55.6 36.0 176.9 1970— I 1 I 3 32 2 6 1 . . 3 7 2 2 6 6 5 8 . . 9 9 5 5 5 7 . . 8 4 5 5 3 4. . 5 2 4 4 3 2. . 9 2 1 1 0 1 . . 3 3 I I l I l .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 27 7 1 6 . . 7 0 9 95 2 . . 1 2 5 5 6 8 . . 1 1 3 3 7 6 . . 0 0 1 1 7 8 9 1 . . 6 0 II I 332.2 272.8 59.4 56.1 44.3 11.8 IV........................ 280.2 97.3 59.9 37.3 182.9 I V 338.2 277.2 61.0 58.0 45.8 12.2 1971—1........................... 283.6 98.2 61.0 37.3 185.3 1971— I I I 1 I I 3 3 3 4 5 6 3 3 4 . . . 1 3 0 2 2 2 9 8 9 0 1 8 . . . 1 6 4 6 6 6 1 3 5 . . . 7 0 6 6 6 5 2 4 9 . . . 3 3 7 4 4 5 9 7 0 . . . 2 4 4 1 1 1 2 3 2 . . . 9 9 5 I I IV I l . l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 9 9 0 0 9 7 . . . 9 7 8 1 1 1 0 0 0 2 5 0 . . . 9 2 4 6 6 6 2 4 5 . . . 8 7 4 3 3 3 9 8 7 . . . 5 6 5 2 1 1 0 9 9 2 6 0 . . . 8 6 5 I V 374.7 306.1 68.6 66.8 52.0 14.8 1 Includes outstanding amount of VA vendee accounts held by private i Structures of five or more units. investors under repurchase agreement. sta N nd o i t n e g .— ” t B ab as le e . d on data from same source as for “Mortgage Debt Out­ est N im o a t t e e . s — . F F o o r r c t o o n ta v l e n d ti e o b n t a l, o u fi t g s u ta r n es d i a n r g e , de fi r g iv u e re d s . are FHLBB and F.R. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ JULY 1972 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar- ven­ Total in­ guar- ven­ sured anteed tional sured anteed tional 1941............................... 4,906 3,292 1,048 566 4,812 3,884 900 28 1945............................... 4,772 3,395 856 521 4,208 3,387 797 24 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966............................... 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968............................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1......................... 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II....................... 69,079 43,532 8,060 2,743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19,898 6,908 117 Ill...................... 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV....................... 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1......................... 70,854 44,568 7,888 2,496 34,184 22,248 4,038 56,394 48,874 15,865 12,105 20,904 7,413 107 II........................ 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,880 49,260 15,931 12,092 21,237 7,519 101 Ill...................... 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21,654 7,671 103 IV....................... 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—1......................... 74,424 46,343 7,971 2,595 35,777 23,595 4,486 58,680 50,553 16,157 12,010 22,386 8,014 113 II....................... 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 8,174 107 Ill...................... 79,936 50,280 25,500 4,156 60,625 51,989 22,429 75 IV....................... 82,515 52,004 26,306 4,205 61,978 53,027 23,287 50 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 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other i Farm Total Total in F s H u A re - d a g n V u t A e a e r - d ­ Other Farm 1945.............................................. 976 6,637 5,860 1,394 4,466 766 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 1970r............................................ 7,137 6,785 397 80 6,268 315 73,227 67,555 11,551 5,540 49,898 5,672 1971.............................................. 7,684 7,185 320 98 6,584 497 74,700 69,125 11,086 5,195 52,274 5,574 1971—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 5,594 607 565 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 Feb.................................... 436 392 26 12 354 44 75,456 69,940 10,674 4,952 53,750 5,516 Mar.................................... 569 484 24 18 442 85 75,424 69,897 10,599 4,932 54,366 5,527 Apr.................................... 560 504 30 15 459 54 75,469 69,163 10,535 4,903 53,725 5,543 1 Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value of ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end Note.—Institute of Life Insurance data. For loans acquired, the adjustments are more complete. Beginning 1970 monthly and year-earlier monthly figures may not add to annual totals; and for loans outstanding data are on a statement balance basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 o REAL ESTATE CREDIT A 53 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Number amount Period of loans committed Loan Interest Loan- Capitaliza­ Debt (millions of amount rate Maturity to-value tion rate coverage Per cent (dollars) (thousands (per cent) (yrs./mos.) ratio (per cent) ratio constant of dollars) (per cent) 1968........................... 2,569 3,244.3 1,263 7.66 22/11 73.6 9.0 1.30 9.5 1969........................... 1,788 2,920.7 1,633 8.69 21/8 73.3 9.6 1.29 10.2 1970........................... 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 1971........................... 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1971—Jan................. 69 141.4 2,050 9.69 22/8 74.3 10.5 1.31 10.7 Feb................. 90 237.7 2,641 9.47 22/11 72.9 10.2 1.32 10.6 Mar................ 124 351.5 2,835 9.14 23/4 75.0 10.2 1.32 10.4 Apr................. 137 302.1 2,205 8.98 22 75.2 9.9 1.28 10.4 May............... 146 257.3 1,762 8.91 23/4 75.6 10.0 1.27 10.4 June............... 203 729.0 3,591 8.92 23/8 75.5 9.8 1.29 10.2 July................ 183 386.5 2,112 8.94 21/10 74.4 9.8 1.26 10.4 Aug................ 153 434.4 2,839 9.08 23/1 74.9 9.9 1.27 10.4 Sept................ 178 366.1 2,057 9.15 22/6 74.8 9.8 1.28 10.4 Oct................. 112 198.4 1,771 9.20 22/7 75.8 10.0 1.28 10.4 Nov................ 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 10.2 Dec................. 133 290.0 2,181 8.96 23 74.4 9.9 1.30 10.2 1972—Jan................. 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 10.2 Feb................. 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 10.0 Mar................ 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 9.7 Note.—Life Insurance Association of America data for new commit­ limited to cases where information was available or estimates could be ments of $100,000 and over each on mortgages for multifamily and non- made: capitalization rate (net stabilized property earnings divided by residential nonfarm properties located largely in the United States. The 15 property value); debt coverage ratio (net stabilized earnings divided by companies account for a little more than one-half of both the total assets debt service); and per cent constant (annual level payment, including and the nonfarm mortgages held by all U.S. life insurance companies. principal and interest, per $100 of debt). All statistics exclude construction Averages, which are based on number of loans, vary in part with loan loans, increases in existing loans in a company’s portfolio, reapprovals, composition by type and location of property, type and purpose of loan, and loans secured by land only. and loan amortization and prepayment terms. Data for the following are MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Members’ Period va A n d c ­ es R m e e p n a ts y­ d ( e en p d o si o ts f Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t­ 1 t L e o rm ng ­ 2 period) Total i con­ pur­ Total 2 in- guar- ven­ struc­ chase sured anteed tional tion 1945....................... 278 213 195 176 19 46 1964....................... 5,565 5,025 5,325 2,846 2,479 1,199 1945............. 1,913 181 1,358 5,376 1965....................... 5,007 4,335 5,997 3,074 2,923 1,043 1966....................... 3,804 2,866 6,935 5,006 1,929 1,036 1964.............. 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1965............. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1967....................... 1,527 4,076 4,386 3,985 401 1,432 1966.............. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1968....................... 2,734 1,861 5,259 4,867 392 1,382 1969....................... 5,531 1,500 9,289 8,434 855 1,041 1967.............. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1970....................... 3,256 1,929 10,615 3,081 7,534 2,331 1968.............. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1971....................... 2,714 5,392 7,936 3,002 4,934 1,789 1969.............. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1970.............. 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1971—June............ 238 264 7,241 2,397 4,844 2,111 1971.............. 39,472 6,835 18,811 174.385 13.798 10.848 149.739 July............ 309 213 7,338 2,544 4,794 1,696 Aug............ 358 183 7,514 2,812 4,702 1,528 1971—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 2,109 161,44012,273 9,580 139,587 306 303 7,640 2,874 4,766 1,450 July... 4,151 686 2,087 163,951 12,592 9,784141,575 Nov............ 364 296 7,709 2,829 4,880 1,549 Aug... 4,111 641 2,225 166,34212,852 10,034143,456 Dec............. 490 262 7,936 3,002 4,934 1,789 Sept... 3,672 628 1,951 168,46413,130 10,232145,102 Oct.. . 3,405 609 1,717 170,10613,278 10,374146,454 1972—Jan............. 186 885 7,238 2,569 4,669 1,948 Nov... 3,298 589 1,661 172,04713,521 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 Mar............ M65 c689 5,992 2,125 3,867 2,008 Apr............. 318 396 5,913 2,049 3,864 1,762 1972—Jan.... 2,632 481 1,253 175,838 13,976 11.013 150,849 May........... 260 320 5,853 2,019 3,835 1,789 Feb.. . 2,849 518 1,400 177,61414,167 11,264 152,183 Mar.r. 2,849 712 1,861 180,145 14,450 11,546 154,149 Apr.r. 3,819 707 1,819 182,711 14,697 11,789 156,225 1 Secured or unsecured loans maturing in 1 year or less. May. . 4,580 830 2,270 185,429 14,1 12.014158,527 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 □ JULY 1972 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans home loans Mortgage Mortgage Mortgage holdings transactions commitments (during Date of auction Mortgage Average Mortgage Average End of period) amounts yield amounts yield period Total F su H in re A - d - a g n V u t A e a e r - d ­ c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Offered Accepted c ( m o s te h e m r n o m m t r s t i ) ­ t­ Offered Accepted c ( m o s te h m e r n o m m t r s t i ) ­ t­ 1 1 9 9 6 6 8 7 7 5 , , 1 5 6 2 7 2 4 5, , 1 0 2 4 1 8 2 1 , , 0 4 4 7 6 4 1 1 , , 4 9 0 4 0 4 12 2 1 , , 6 7 9 3 7 6 1,2 5 8 01 7 In m do il l l l i a o r n s s of per I n c ent In m do il l l l i a o r n s s of per I n c ent 196 9 10,950 7,680 3,270 4,121 6,630 3,539 197 0 15,502 11,071 4,431 5,078 8,047 5,203 197 1 17.791 3,574 4,986 5.694 1972—Jan. 10........... 136.9 72.9 7.62 24........... 103.6 54.9 7.61 1971-Mar.. 15,420 11,012 4,408 76 46 33 4.380 7.74 Apr.. 15,308 10,933 4,375 58 105 457 4.381 Feb. 7........... 88.7 63.9 7.61 May. 15,242 10,893 4,349 91 92 871 4,926 14........... 62.4 34.9 7.64 June. 15,363 10,970 4,393 239 10 1,294 5,750 22........... 68.6 44.8 7.61 July.. 15,674 11,184 4,490 407 576 5,709 28........... 21.1 11.5 Aug.. c16,204 =11,562 4,642 659 1,219 5,146 Sept.. 16,732 635 572 5,327 Mar. 6........... 86.9 50.6 7.56 Oct. . 17,202 553 655 5,208 13........... 10.1 5.5 7.61 Nov.. 17,535 406 893 5,466 20........... 202.9 86.2 7.54 Dec.. 17.791 350 1,014 5.694 Apr. 3........... 258.8 178.5 7.56 1972-Jan... 17,977 281 574 5,558 10........... 27.1 14.9 7.66 Feb.. 18,220 324 578 5,614 17........... 347.4 176.3 7.60 Mar.. 18,342 316 469 5,635 Apr.. 18,403 May 1............ 364.9 336.4 7.63 May. 18,599 8............ 35.0 20.4 7.77 15........... 266.3 188.2 7.63 30............ 133.4 76.4 7.62 Note.—Federal National Mortgage Assn. data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market June 1........... 28.2 22.7 7.80 portfolio of former FNMA. Mortgage holdings include loans used to back 12........... 83.5 48.1 7.62 bond issues guaranteed by GNMA. Mortgage commitments made during 26........... 97.8 76.6 7.62 the period include some multifamily and nonprofit hospital loan commit­ ments in addition to 1- to 4-family loan commitments accepted in FNMA’s f P r l e a e n m (P a r r o k g e r t a m au c 1 t 8 io ). n system, and through the FNMA-GNMA Tandem ba N sis o - t p e o .— int A f v ee e r p a a g i e d s f e o c r o m nd o a r r t y g ag m e a r s k er e v t ic y i i n e g ld . s T h a e r y e r g e r f o le s c s— t th b e e f a o v re e ra d g e e d u a c c t c i e o p n t e , o d f b 3 id 8 yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commitment fees and FNMA stock purchase and holding requirements. Beginning Oct. 18, 1971, the maturity on new short-term commitments was extended from 3 to 4 months. Mortgage amounts offered by bidders are total eligible bids received. GOVERNMENT NATIONAL MORTGAGE GNMA MORTGAGE-BACKED SECURITY PROGRAM ASSOCIATION ACTIVITY (In millions of dollars) (In millions of dollars) Pass-through securities Mortgage Mortgage Mortgage Bonds holdings transactions commitments Period sold (during Applications Securities End of period) received issued period Made Out Total sured a g n u te a e r­ d c P ha u s r e ­ s Sales d p u er r i i o n d g st i a n n g d­ 1971........................................ 4 1 , , 3 1 7 2 3 6 . . 6 2 2,7 4 0 5 1 2 . . 9 4 1,3 3 1 0 5 0 . . 0 0 1971—Apr.............................. 548.3 439.8 196 7 3,348 2,756 592 860 1,045 1,171 May............................ 255.9 519.7 196 8 4,220 3,569 651 1,089 867 1,266 June............................ 135.3 277.0 196 9 4,820 4,220 600 827 615 1,130 July............................. 104.2 116.4 197 0 5,184 4,634 550 621 897 738 Aug............................. 121.1 118.0 300.0 Sept............................. 254.2 71.5 1971-May. 5,261 4,731 530 40 171 906 226.1 112.6 June. 5,275 4,751 524 43 424 1,247 Nov............................. 533.7 244.2 July.. 5,282 4,761 520 25 487 1,586 318.3 212.8 Aug.. 5,279 29 Sept.. 5.259 4,749 510 17 1972—Jan.............................. 384.1 247.7 Oct. . 5,245 15 Feb.............................. 511.2 391.2 200.0 Nov.. 5.260 24 Mar............................. 528.3 322.5 Dec.. 5,294 32 187.8 275.1 May............................ 216.4 212.9 ’506.0' 1972-Jan... 5,287 Feb.. 5,281 Mar.. 5,243 Note.—Government National Mortgage Assn. data. Under the Mort­ Apr.. 5,125 gage-Backed Security Program, GNMA guarantees the timely payment May. 5,214 of principal and interest on both pass-through and bond-type securities, which are backed by a pool of mortgages insured by FHA or Farmers Home Admin, or guaranteed by VA and issued by an approved mortgagee. Note.—Government National Mortgage Assn. data. Data prior to To date, bond-type securities have been issued only by FNMA and Sept. 1968 relate to Special Assistance and Management and Liquidating FHLMC. portfolios of former FNMA and include mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conven­ tional mortgage loans acquired by former FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Com­ munity Facilities Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ REAL ESTATE CREDIT A 55 HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL (In per cent) LOANS MADE (In millions of dollars) Primary market Secondary (conventional loans) market FHA-insured VA-guaranteed FHA series FHLBB series Yield Mortgages Mortgages Period (effective rate) on FHA- Period Prop­ insured Pro­ erty New Existing h N om ew es l h o n o a e m n w s e Total h N om ew es h is o E t m i x n ­ e g s jects i m pr i e m o n v ­ t e s ­ 2 Total 3 h N om ew es h is o E t m i x n ­ e g s homes homes 1945............ 665 257 217 20 171 192 196 8 6.97 7.03 7.12 7.21 1964............ 8,130 1,608 4,965 895 663 2,846 1,023 1,821 196 9 7.81 7.82 7.99 8.26 197 0 8.44 8.35 8.52 9.05 1965............ 8,689 1,705 5,760 591 634 2,652 876 1,774 197 1 7.60 7.54 7.75 7.70 1966............ 7,320 1,729 4,366 583 641 2,600 980 1,618 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1971—May 7.47 7.45 7.65 7.75 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 June, 7.50 7.50 7.70 7.89 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 July. 7.66 7.63 7.80 7.97 1970............ 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 Aug. 7.74 7.71 7.85 7.92 Sept. 7.83 7.76 7.85 7.84 1971—Apr.. 1,136 293 467 330 46 350 98 252 Oct.. 7.84 7.75 7.80 7.75 May. 1,203 290 504 354 55 417 111 306 Nov. 7.79 7.69 7.75 7.62 June. 1,372 322 629 399 21 519 127 392 Dec.. 7.77 7.64 7.70 7.59 July.. 1,340 338 646 304 53 561 135 426 Aug.. 1,393 407 710 216 60 577 146 431 1972—Jan.. 7.78 7.58 7.60 7.49 Sept.. 1,242 320 543 290 89 693 188 506 Feb.. 7.60 7.49 7.60 7.46 Oct. . 1,202 318 504 276 105 514 135 379 Mar. 7.52 7.44 7.55 7.45 Nov.. 1,220 358 511 273 77 757 226 526 Apr.. 7.51 7.42 7.60 7.50 Dec.. 1,598 358 502 691 47 685 220 465 May. 7.53 7.46 7.60 7.53 1972—Jan. . 1,277 420 516 280 62 629 204 425 Feb.. 1,094 366 448 237 44 460 199 361 Note.—Annual data are averages of monthly figures. The Mar.. 1,253 349 449 401 54 658 231 427 FHA data are based on opinion reports submitted by field offices Apr.. 954 272 381 249 51 509 170 339 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 1 Monthly figures do not reflect mortgage amendments included in annual 203, 30-year mortgages with minimum downpayment and an totals. assumed prepayment at the end of 15 years. Gaps in data are 2 Not ordinarily secured by mortgages. due to periods of adjustment to changes in maximum permis­ 3 Includes a small amount of alteration and repair loans, not shown separ­ sible contract interest rates. The FHA series on average contract ately; only such loans in amounts of more than $1,000 need be secured. interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured The FHLBB effective rate series reflects fees and charges as well loans represent gross amount of insurance written; VA-guaranteed loans, as contract rates (as shown in the table on conventional first- gross amounts of loans closed. Figures do not take into account principal mortgage terms, p. A-37) and an assumed prepayment at end repayments on previously insured or guaranteed loans. For VA-guaranteed of 10 years. loans, amounts by type are derived from data on number and average amount of loans closed. DELINQUENCY RATES ON HOME MORTGAGES FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— Loans in Mortgage Mortgage Mortgage fore­ holdings transactions commitments End of period closure (during period) Total 30 days 60 days o 9 r 0 m da o y r s e End of period FHA- Con­ Pur­ Made Out­ Total VA ven­ chases Sales during stand­ 1965............... 3.29 2.40 .55 .34 .40 tional period ing 1966............... 3.40 2.54 .54 .32 .36 1967............... 3.47 2.66 .54 .27 .32 1968............... 3.17 2.43 .51 .23 .26 1970...................... 325 325 325 1969............... 3.22 2.43 .52 .27 .27 1971...................... 968 821 147 778 64 182 1970............... 3.64 2.67 .61 .36 .33 1971............... 3.93 2.82 .65 .46 .46 1971—Mar.......... 320 316 4 3 Apr.......... 328 322 6 8 1969—1.......... 2.77 2.04 .49 .24 .26 May.......... 346 339 7 20 II........ 2.68 2.06 .41 .21 .25 485 454 31 141 Ill.... 2.91 2.18 .47 .26 .25 July............ 637 587 50 154 49 283 IV___ 3.22 2.43 .52 .27 .27 Aug............ 689 625 65 54 76 305 Sept........... 798 695 103 111 117 376 1970—1.......... 2.96 2.14 .52 .30 .31 Oct........... 902 761 141 108 49 300 II........ 2.83 2.10 .45 .28 .31 Nov........... 976 800 176 91 15 23 227 Ill___ 3.10 2.26 .53 .31 .25 Dec............ 968 821 147 45 49 7 182 IV....... 3.64 2.67 .61 .36 .33 1972—Jan............. 979 828 151 17 2 17 182 1971—1.......... 3.21 2.26 .56 .39 .40 Feb............ 893 844 49 23 104 126 290 II......... 3.27 2.36 .53 .38 .38 Mar.......... 988 928 60 98 258 373 Ill....... 3.59 2.54 .62 .43 .41 Apr............ 1 ,110 1,040 70 126 232 455 IV....... 3.93 2.82 .65 .46 .46 May.......... 1,324 1,239 86 220 156 398 1972—1.......... 3.16 2.21 .58 .37 .50 Note.—Federal Home Loan Mortgage Corp. data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Note.—Mortgage Bankers Association of America data from Holdings, purchases and sales include participations as well as whole loans. reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ Mortgage holdings include loans used to back bond issues guaranteed by ventional mortgages held by more than 400 respondents, including GNMA. Commitment data cover the conventional and Govt.-underwritten loan mortgage bankers (chiefly), commercial banks, savings banks, and programs. savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ JULY 1972 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1939. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 . 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950. 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955. 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960. 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 1965. 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966. 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 1967. 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 1968. 113,191 89,890 34,130 24,899 3,925 26,936 23,301 9,138 7,755 6,408 1969. 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 1970, 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1971 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1971--May............................. 126,025 100,692 35,819 28,706 4,126 32,041 25,333 9,765 8,004 7,564 June............................. 127,388 101,862 36,349 28,976 4,186 32,351 25,526 9,862 8,214 7,450 July.............................. 128,354 102,848 36,763 29,165 4,240 32,680 25,506 9,854 8,271 7,381 Aug.............................. 129,704 104,060 37,154 29,477 4,295 33,134 25,644 9,997 8,305 7,342 Sept.............................. 130,644 104,973 37,383 29,840 4,330 33,420 25,671 10,061 8,305 7,305 131,606 105,763 37,759 30,072 4,357 33,575 25,843 10,097 8,435 7,311 Nov.............................. 133,263 107,097 38,164 30,586 4,370 33,977 26,166 10,182 8,634 7,350 Dec............................... 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1972- 135,830 108,826 38,111 32,096 4,319 34,300 27,004 10,324 8,929 7,751 Feb............................... 135,253 108,634 38,239 31,615 4,332 34,448 26,619 10,433 8,141 8,045 Mar.............................. 136,135 109,481 38,762 31,682 4,354 34,683 26,654 10,511 8,011 8,132 Apr............................... 137,791 110,734 39,337 31,882 4,417 35,098 27,057 10,620 8,306 8,131 May............................. 139,963 112,477 40,119 32,309 4,497 35,552 27,486 10,749 8,692 8,045 i Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,’* Section 16 (New) of Supplement to Banking and, Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- and pp. 983-1003 of the Bulletin for Dec. 1968. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Mis­ Auto­ Other Total mercial Finance Credit cellaneous Total mobile retail banks cos. 1 unions lenders * 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- 100,692 87,491 42,482 30,441 12,874 1,694 13,201 334 12,867 101,862 88,544 43,011 30,609 13,206 1,718 13,318 339 12,979 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- 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 14,319 109,481 94,853 46,415 32,221 14,328 1,889 14,628 366 14,262 110,734 96,104 47,148 32,530 14,494 1,932 14,630 372 14,258 112,477 97,748 48,032 32,957 14,797 1,962 14,729 381 14,348 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

JULY 1972 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Autoinobile Repair E p n er d i o o d f Total ch P a u s r e ­ d pape D r irect s g O p c u o a o t m o p h n d e e e ­ r s r r m iz l o o a a d a n ti e n d o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s O g p c u o a o t m o p h n d e e e ­ r s r r m i R z lo a o e a n a d p ti n d e a o s r i n r n­ s l P o o a e n n r a ­ s l 1939, 1,079 237 178 166 135 363 1939. 1,836 932 134 151 619 1941. 1,726 447 338 309 161 471 1941 . 2,541 1,438 194 204 705 1945. 745 66 143 114 110 312 1945. 910 202 40 62 606 1950. 5,798 1,177 1,294 1,456 834 1,037 1950. 5,315 3,157 692 80 1,386 1955. 10,601 3,243 2,062 2,042 1,338 1,916 1955 , 11,838 7,108 1,448 42 3,240 1960. 16,672 5,316 2,820 2,759 2,200 3,577 1960. 15,435 7,703 2,553 173 5,006 1965. 28,962 10,209 5,659 4,166 2,571 6,357 1965 . 24,282 9,400 4,425 224 10,233 1966. 31,319 11,024 5,956 4,681 2,647 7,011 1966 26,091 9,889 5,171 191 10,840 1967. 32,700 10,927 6,267 5,126 2,629 7,751 1967. 26,734 9,538 5,479 154 11,563 1968. 36,952 12,213 7,105 6,060 2,719 8,855 1968. 29,098 10,279 5,999 113 12,707 1969. 40,305 12,784 7,620 7,415 2,751 9,735 1969. 31,734 11,053 6,514 106 14,061 1970 41,895 12,433 7,587 8,633 2,760 10,482 1970, 31,123 9,941 6,648 94 14,440 1971 45,976 13,003 8,752 9,805 2,864 11,552 1971 32,140 10,279 6,521 107 15,233 1971--May... 42,482 12,361 7,942 8,676 2,729 10,774 1971- 30,441 9,810 6,236 100 14,295 June... 43,011 12,484 8,098 8,821 2,765 10,843 30,609 9,918 6,224 101 14,366 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 31,098 10,077 6,249 103 14,669 Sept... 44,603 12,831 8,380 9,235 2,860 11,297 31,133 10,077 6,268 104 14,684 Oct---- 44,947 12,932 8,509 9,301 2,874 11,331 31,331 10,177 6,306 105 14,743 Nov... 45,396 13,015 8,680 9,412 2,875 11,414 31,643 10,248 6,325 106 14,964 Dec__ 45,976 13,003 8,752 9,805 2,864 11,552 32,140 10,279 6,521 107 15,233 1972--Jan.. .. 45,878 12,957 8,734 9,783 2,835 11,569 1972- 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 Mar. 46,415 13,167 8,903 9,833 2,835 11,677 32,221 10,340 6,554 109 15,218 Apr.... 47,148 13,369 9,065 10,004 2,873 11,837 32,530 10,474 6,574 112 15,370 May... 48,032 13,647 9,264 10,208 2,925 11,988 32.957 10,642 6,686 113 15,516 See Note to first table on preceding page. Note.—Finance companies consist of those institutions formerly clas­ sified as sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards1 1939................................ 150 27 5 12 106 banks insti­ 1941................................ 213 47 9 11 146 tutions 1945................................ 121 16 4 10 91 1950............................... 692 159 40 102 391 1939................. 2,719 625 162 1,414 518 1955............................... 1,959 560 130 313 956 1941................. 3,087 693 152 1,645 597 1960............................... 4,566 1,460 297 775 2,034 1945.................. 3,203 674 72 1,612 845 1965............................... 8,289 3,036 498 933 3,822 1950................. 6,768 1,576 245 3,291 76 1,580 1966............................... 9,314 3,410 588 980 4,336 1955................. 9,924 2,635 367 4,579 216 2,127 1967............................... 10,056 3,707 639 1,006 4,704 1960................. 13,173 3,884 623 4,893 436 3,337 1968................................ 11,407 4,213 727 1,093 5,374 1969................................ 12,943 4,809 829 1,183 6,122 196 5 18,990 6,690 981 5,724 706 4,889 1970................................ 14,046 5,202 898 1,256 6,690 196 6 20.004 6,946 1,026 5,812 874 5,346 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—May.................... 14,568 5,372 927 1,297 6,972 196 9 24,300 7,900 1,196 6,650 1,584 6,970 June..................... 14,924 5,510 952 1,320 7,142 197 0 25,641 8,205 1,279 6,932 1,918 7,307 July..................... 15,043 5,548 958 1,336 7,201 197 1 27.692 8,916 1,384 7,597 2,221 7,574 Aug..................... 15,326 5,659 977 1,354 7,336 Sept..................... 15,543 5,746 992 1,366 7,439 1971—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 Mar..................... 16,217 5,986 1,033 1,410 7,788 Dec.... 27.692 8,916 1 ,384 7,597 2,221 7,574 Apr...................... 16,426 6,057 1,046 1,432 7,891 May..................... 16,759 6,185 1,067 1,459 8,048 1972—Jan.. .. 27.004 8,937 1,387 6,719 2,210 7,751 Feb.... 26,619 9,008 1,425 6,008 2,133 8,045 Mar. .. 26,654 9,083 1,428 5,969 2,042 8,132 lan N eo o u t s e .— len O de th rs e . r financial lenders consist of credit unions and miscel­ A M p a r y _ . _ .. 2 2 7 7 , , 0 4 5 8 7 6 9 9 , , 1 2 7 9 6 4 1 1 , , 4 4 4 55 4 6 6, , 6 2 3 3 8 9 2 2 , , 0 0 6 5 7 4 8 8 , , 0 13 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 □ JULY 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—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 Mar.............................. 10,996 10,951 3,143 3,358 3,921 3,727 249 230 3,683 3,636 Apr............................... 10,777 10,563 3,194 3,257 3,824 3,591 256 262 3,503 3,453 May............................. 10,998 11,677 3,239 3,666 3,938 3,986 243 307 3,578 3,718 Repayments 1965........................................ 69,957 23,543 20,518 2,116 23,780 1966......................................... 76,120 25,404 23,178 2,110 25*428 1967......................................... 81,306 26,499 25,535 2,142 27 * 130 1968......................................... 88,089 28,018 28,089 2,132 29^850 1969......................................... 94,609 29,882 30,369 2,163 32*195 1970......................................... 101,138 30,943 34,441 2,075 33*679 1971......................................... 109,254 31,818 38,481 2,304 36^651 1971—May............................. 9,197 8,898 2,640 2,560 3,211 3,124 188 186 3,158 3,028 June............................. 9,190 9,497 2,678 2,771 3,233 3,268 192 203 3,087 3,255 July.............................. 8,914 9,112 2,565 2,618 3,203 3,226 188 194 2,958 3,074 Aug.............................. 9,222 9,088 2,697 2,675 3,262 3,153 196 198 3,067 3,062 Sept.............................. 9,157 8,936 2,732 2,698 3,172 3,091 199 202 3,054 2,945 Oct................................ 9,107 9,007 2,634 2,661 3,219 3,191 197 198 3,057 2,957 Nov.............................. 9,306 9,377 2,662 2,700 3,254 3,223 199 202 3,191 3,252 Dec............................... 9,230 9,518 2,696 2,634 3,188 3,200 198 195 3,148 3,489 1972—Jan................................ 9,547 9,485 2,761 2,669 3,501 3,648 201 193 3,084 2,975 Feb............................... 9,373 9,094 2,693 2,634 3,408 3,407 200 189 3,072 2,864 Mar.............................. 9,632 10,104 2,693 2,835 3,422 3,660 204 208 3,313 3,401 Apr............................... 9,681 9,310 2,767 2,682 3,531 3,391 207 199 3,176 3,038 May............................. 9,557 9,934 2,748 2,884 3,457 3,559 214 227 3,138 3,264 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—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 Mar.............................. 1,364 847 450 523 499 67 45 22 370 235 Apr............................... 1,096 1,253 427 575 293 200 49 63 327 415 May............................. 1,441 1,743 491 782 481 427 29 80 440 454 1 Includes adjustments for differences in trading days. purchases and sales of instalment paper, and certain other transac­ 2 Net changes in credit outstanding are equal to extensions less tions may increase the amount of extensions and repayments repayments. without affecting the amount outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often Credit,” Section 16 (New) of Supplement to Banking and Monetary include financing charges. Renewals and refinancing of loans, Statistics, 1965, and pp. 983-1003 of the Bulletin for Dec. 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 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 (966......................................... 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—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 Mar.............................. 10,996 10,951 4,117 4,237 2,906 2,890 1,737 1,743 2,236 2,081 Apr............................... 10,777 10,563 4,156 4,215 2,908 2,793 1,583 1,577 2,130 1,978 May............................. 10,998 11,677 4,250 4,701 2,912 3,009 1,614 1,792 2,222 2,175 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—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 Mar............................... 9,632 10,104 3,574 3,785 2,513 2,648 1,527 1,539 2,018 2,132 Apr............................... 9,681 9,310 3,598 3,482 2,579 2,484 1,424 1,368 2,080 1,976 May............................. 9,557 9,934 3,621 3,817 2,489 2,582 1,408 1,459 2,039 2,076 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—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 Mar.............................. 1,364 847 543 452 393 242 210 204 218 -51 Apr............................... 1,096 1,253 558 733 329 309 159 209 50 2 May............................. 1,441 1,743 629 884 423 427 206 333 183 99 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. □ JULY 1972 MARKET GROUPINGS (1967 = 100) p 19 ro 67 ­ a 1 v 9 e 7 r 1 ­ 1971 1972 Grouping p ti o o r n ­ age* May June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May* Total index. 100.00 106.! 107.4 107.4 106.8 105.6 107.1 106.1 107.4 108.1 108.7 110.0 110.9 112.1 112.4 Products, total................ 62.21 106.4 106.1 106.2 107.0 106.1 107.0 107.0 107.9 108.0 108.4 109.5 109.6 110.8 111.1 Final products.............. 48.95 104.7 104.4 104.6 105.0 104.8 105.5 105.4 106.1 106.2 106.4 107.6 107.6 109.2 109.3 Consumer goods---- 28.53 115.7 115.4 116.1 116.3 115.9 116.7 116.6 118.0 118.0 118.5 119.6 119.4 121.4 121.8 Equipment............... 20.42 89.4 88.7 88.5 89.3 89.5 89.8 89.8 89.6 89.6 89.5 90.9 91.2 92.0 91 .8 Intermediate products. 13.26 112.6 112.9 112.2 114.6 110.9 112.3 113.2 114.3 114.9 115.9 117.0 116.9 116.5 118.1 Materials......................... 37.79 107.4 109.4 109.3 106.4 104.8 107.3 106.6 106.5 108.4 109.2 110.8 112.9 114.4 114.8 Consumer goods Durable consumer goods.................. 7.86 115.1 116.9 117.0 117.4 117.3 117.1 116.8 116.0 117.4 117.5 120.3 118.8 124.9 124.8 Automotive products................... 2.84 119.5 120.7 121.2 121.7 122.3 122.9 121.9 119.7 119.9 116.6 119.5 119.3 127.9 127.5 Autos......................................... 1.87 108.3 108.3 107.9 107.9 108.5 108.0 107.8 109.2 109.4 102 106.4 104.6 114.3 111.3 Auto parts and allied goods... .97 140.9 144.5 146 148.0 148.9 151.5 149.0 140.1 140.0 143.4 144.5 147.5 154.1 158.7 Home goods............................... 5.02 112.6 115.0 114.6 115.0 114.4 113. 113.9 113. 116.0 118.1 120.7 118.5 123.2 123.3 Appliances, TV, and radios.. 1.41 111.5 120.8 117.3 115.5 112.4 110.4 109.7 110.5 116.9 123.8 123.1 115.1 132.2 128.9 Appliances and A/C.... .92 127.6 132.2 129.7 126.7 128.5 129.0 129.5 131.3 135 143.4 146.9 131 .9 149.3 147.6 TV and home audio....... .49 81.4 99.4 93.9 94.5 82.4 75.6 72.6 71.8 81.3 87.1 78.3 84.0 100.1 93.7 Carpeting and furniture. 1 117.2 116.3 119.2 121.2 121.7 121.9 120.7 122.2 120.4 121.7 126.1 126. 128.0 130.0 Misc. home goods.......... 2.53 111.2 111.2 111.3 112.1 112.7 112.3 113.4 112.0 113.7 113.5 117.2 116. 116.3 117.3 Nondurable consumer goods............ 20.67 116.0 114.8 115.6 115.9 115.4 116.5 116.6 118.8 118.4 119.0 119.3 119.6 120.0 120.6 Clothing........................................ 4.32 101.4 99.6 102.0 102.5 100.3 103.6 103.2 103.7 105.0 105.8 102.7 104.0 104.5 Consumer staples......................... 16.34 119. 118.9 119.2 119.4 119.4 119.9 120.2 122. 121.9 122.5 123.7 123.7 124.1 125.3 Consumer foods and tobacco. 8.37 113.6 113.1 113.4 112.3 112.8 114.1 113.9 117.2 115.5 115.4 115.5 115.7 116.0 116.9 Nonfood staples......................... 7.98 126.3 124.9 125.3 126.9 126.4 126.1 126.7 128.6 128.7 129.8 132.4 132.0 132. 134.0 Consumer chemical products. 2.64 133.9 133.3 131.1 132.7 133.3 133.6 132.0 137.2 134.3 137.6 144.3 141.4 145.4 145.8 Consumer paper products---- 1.91 107.9 105.0 107.7 106.9 106.2 109.2 111.0 111.5 114.8 111.4 112.1 113.9 111.4 111.3 Consumer fuel and lighting.. 3.43 130.8 129.5 130.5 133.8 132.3 129.6 131.6 131.6 132.1 134.2 134.5 134.9 134.8 137.4 Residential utilities............. 2.25 137.6 137.3 137.6 141.8 138.6 136.5 138.5 138.8 139.0 141.8 142.5 142.3 142.1 145.3 Equipment Business equipment..................... 12.74 96.8 95.1 95.6 97.1 97.5 98.2 98.2 97.9 98.0 98.4 99.9 100.6 101.2 101.0 Industrial equipment.............. 6.77 92.9 91.3 91.9 92.0 92.8 93.2 93.5 94.2 94.2 94.1 95.4 96.0 95.4 95.0 Building and mining equip. 1.45 92.9 91.5 88.8 88.9 96.4 96.6 95.5 95.2 94.0 98.0 99.6 100.9 97. 97.4 Manufacturing equipment. 3.85 82.6 80.4 81.2 82.5 81.5 82.1 83.1 83.5 83. 82.4 83.4 84.1 84.3 83.9 Power equipment............... 1.47 119.8 119.5 122 119.9 119.0 118.7 118.8 121.5 121.6 121.0 122.7 122.0 122.0 121.7 Commercial, transit, farm eq.. 5.97 101.2 99.4 99.7 102 102. 104.0 103 102.1 102.4 103.3 105.1 105.8 107.9 107.9 Commercial equipment___ 3.30 110.0 108.6 108.6 111.7 111.1 113.1 112.2 110.2 109.4 109.1 111.9 112.7 111. 113.4 Transit equipment.............. 2.00 89.4 87.5 88.2 89.3 90.7 90.8 91 89.4 93.1 95.1 94.7 95.4 101.6 98.9 Farm equipment................. .67 93.2 89.4 90 100.2 97.7 98.5 98.8 100.0 96.1 98.6 102.4 103.2 106.3 107.3 Defense and space equipment. 7.68 77.1 78.2 76 76.3 76.3 76.0 75.7 75.9 75.6 74.8 76.0 75.7 76.6 76.4 Military products............... 5.15 79.9 81.4 79.3 78 79 79.0 79.0 78.8 78.3 77.6 78.5 77.9 78.5 78.4 Intermediate products Construction products.......... 5.93 112.6 114.4 113.3 115.2 109 111. 112 114.2 115.2 115.7 115.8 115.4 115.5 116.7 Misc. intermediate products. 7.34 112 111.7 111.4 114.4 112.1 112. 113.5 114.4 114.5 116.1 118.0 118.2 117.3 119.2 Materials Durable goods materials---- 20.91 101.7 105.4 103.7 99.7 96.5 100.6 102.2 100.5 101.6 103.5 105.8 107.6 109.6 111.0 Consumer durable parts. 4.75 104.2 107.5 107 101.1 105.6 103.3 104.1 101 104.0 105.1 107.1 110.1 111.1 110.8 Equipment parts............. 5.41 87.1 89.1 87.3 88.0 83.1 87.1 88.1 87.3 87.9 88.8 90.7 90.8 95.1 98.0 Durable materials nec... 10.75 107.9 112.7 110.3 105.1 99.3 106.2 108.5 106.5 107.4 110.2 112.8 115.0 116.2 117.6 Nondurable goods materials........... 13.99 114.1 113.3 115.2 113.6 114.7 114.7 115.0 115.9 116.7 116.0 117.0 119.7 120.1 119.4 Textile, paper, and chem. mat.. 8.58 116.6 114.6 117 115.5 117.7 11 119.0 121 123.0 120. 121.5 124.9 125.1 124.8 Nondurable materials n.e.c...., 5.41 110.3 111.4 112.1 110.6 110.0 108.2 108.4 107.2 106.8 108.3 109.9 111.4 112.3 111.0 Fuel and power, industrial........... 2.89 116.3 119. 120.7 119.6 117.4 119.5 98 104.6 117.6 117.4 117.7 118.9 121.6 119.9 Supplementary groups Home goods and clothing., 9.34 107.4 107.9 108.8 109.2 107.9 109.1 108.9 109.2 110.9 112.4 112.4 111 114.5 114.0 Containers........................... 1.82 116.8 117.9 115.6 118.3 117.3 115.1 116.9 119.4 121.0 120.6 123.7 120.3 127.5 123.6 Gross value of products in market structure (In billions of 1963 dollars) ► ► Products, total................. 392.0 392.0 392.8 388.8 391. i 393.3 394 398.1 397.8 400.1 403.3 403.9 408.3 409.7 Final products............ 302.6 302.2 303.4 298.4 303. 304.5 305.1 307.7 307.1 307.5 310.2 310.9 316.1 316.3 Consumer goods.... 213. 213.4 215.0 210.8 214. 214. 215.5 218.4 217.8 217 219.2 219.9 224.0 224.3 Equipment............... 88. 88.7 88.6 88.4 89. 89.9 89.9 89.4 89.4 89.7 91.1 90.9 92.2 91.8 Intermediate products. 89.5 89.7 89.5 91.5 87. 89. 89.5 90.2 90.8 92.6 93.1 93.0 92.2 93.5 ^ Revised monthly data for these series through Feb. 1972 will be For Note see p. A-63. published in the Aug. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) Grouping p p 1 ti 9 o r o 6 o r n 7 ­ ­ a a 1 v g 9 e e 7 r * 1 ­ May June July Aug. 197 S 1 ept. Oct. Nov. Dec. Jan. Feb. M 1 a 9 r 7 . 2 Apr. May* Manufacturing...................................... 88.55 105.2 105.9 106.0 105.8 104.2 105.7 106.1 106.0 106.2 107.1 108.5 109.2 111.0 111.3 Durable............................................ 52.33 99.4 101.1 100.7 100.3 97.4 99.3 100.1 99.1 99.5 100.4 102.1 102.8 105.1 105.4 Nondurable...................................... 36.22 113.6 112.8 113.7 113.8 114.0 115.1 114.7 115.9 116.0 116.8 117.8 118.3 119.6 119.9 Mining and utilities............................. 11.45 118.9 119.3 119.7 119.2 118.6 118.3 114.3 117.4 120.1 120.6 121.6 122.3 123.5 122.7 Mining.............................................. 6.37 107.0 108.7 108.6 105.6 106.3 105.9 97.7 102.5 107.8 107.3 107.2 108.5 108.9 106.5 Utilities............................................. 5.08 133.9 132.8 133.8 136.2 134.1 134.0 135.2 136.0 135.8 137.4 139.7 139.7 141.6 143.0 Durable manufactures Primary and fabricated metals............ 12.55 104.0 111.6 108.3 104.6 94.0 99.5 101.3 98.8 100.6 104.0 105.4 107.2 110.1 111.0 Primary metals................................. 6.61 100.9 114.3 108.1 98.9 81.2 93.8 96.1 91.4 94.3 102.4 102.6 105.1 110.2 111.5 Iron and steel, subtotal............... 4.23 96.6 112.8 105.3 99.0 66.5 85.9 89.4 81.9 85.5 95.2 95.9 98.8 105.5 107.3 Fabricated metal products.............. 5.94 107.5 108.6 108.6 110.9 108.2 105.9 107.1 107.1 107.6 106.0 108.6 109.5 110.0 110.5 Machinery and allied goods................. 32.44 94.9 94.6 95.1 95.8 95.4 96.2 96.6 95.9 95.6 95.7 97.3 97.6 100.1 100.3 Machinery......................................... 17.39 96.2 95.6 96.3 97.7 96.7 91.9 98.3 97.8 97.9 98.5 99.5 99.8 101.8 102.4 Nonelectrical machinery.............. 9.17 94.3 91.9 93.6 95.8 95.5 97.0 97.4 95.9 94.8 95.1 96.2 96.7 97.4 98.2 Electrical machinery.................... 8.22 98.3 99.7 99.4 99.9 97.9 99.0 99.3 99.9 101.3 102.2 103.2 103.3 106.8 107.0 Transportation equipment.............. 9.29 92.9 92.1 93.1 93.2 93.9 94.2 94.5 93.4 92.7 92.0 94.7 95.9 100.2 99.1 Motor vehicles and parts............ 4.56 114.1 112.3 113.9 115.5 116.3 115.8 116.0 115.7 116.1 114.0 117.7 118.8 125.6 123.2 Aerospace and misc. trans. eq... 4.73 72.5 72.7 73.0 71.7 72.3 73.4 73.7 72.0 70.1 70.8 72.7 73.9 75.6 75.9 Instruments...................................... 2.07 108.5 108.0 108.5 110.9 109.1 110.5 111.2 110.4 109.3 111.3 114.5 113.8 115.8 116.8 Ordnance, private and Govt........... 3.69 86.1 88.5 87.1 85.0 85.5 85.2 85.3 84.9 84.4 83.2 83.7 82.5 83.5 83.9 Lumber, clay, and glass....................... 4.44 111.5 111.6 112.6 111.4 111.0 112.1 113.2 113.7 114.8 115.5 118.0 117.5 117.3 116.7 Lumber and products..................... 1.65 113.9 110.0 114.0 114.1 113.9 114.8 118.2 119.4 121.7 122.0 119.7 119.6 119.9 119.6 Clay, glass, and stone products___ 2.79 110.0 112.6 111.8 109.8 109.3 110.6 110.1 110.4 110.7 111.6 117.0 116.3 115.9 115.0 Furniture and miscellaneous................. 2.90 111.7 111.6 113.3 115.9 114.0 114.2 114.0 113.3 114.3 115.0 117.3 118.4 119.8 121.0 Furniture and fixtures..................... 1.38 102.1 101.1 105.2 104.8 105.2 105.3 104.5 105.4 103.8 104.0 108.4 108.7 111.5 111.4 Miscellaneous manufactures........... 1.52 120.5 121.2 120.7 126.1 122.0 122.2 122.6 120.5 123.9 125.1 125.4 127.2 127.4 129.5 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 100.7 100.6 101.3 100.9 100.8 102.5 102.3 101.8 103.1 102.0 101.1 102.9 105.3 104.0 Textile mill products....................... 2.69 108.6 107.7 109.2 108.6 110.5 111.0 110.1 110.2 112.6 108.9 107.0 110.5 112.5 110.8 Apparel products............................. 3.33 97.8 97.7 98.1 98.3 97.4 99.5 100.0 99.8 99.7 99.8 100.1 101.4 102.4 Leather and products...................... .88 87.4 89.9 89.4 87.0 84.2 87.7 87.4 83.3 87.1 89.6 86.9 85.4 94.4 89.0 Paper and printing............................... 7.92 107.8 106.8 105.9 108.4 108.1 108.2 109.4 110.5 110.7 111.3 112.6 112.2 111.4 112.2 Paper and products......................... 3.18 115.8 114.9 113.1 115.3 117.5 116.2 116.9 119.2 119.8 122.2 122.8 122.5 123.2 124.3 Printing and publishing................... 4.74 102.5 101.4 101.0 103.8 101.7 102.9 104.3 104.5 104.7 103.9 105.8 105.4 103.4 104.0 Chemicals, petroleum, and rubber.... 11.92 124.8 123.2 126.1 124.7 126.3 127.5 126.6 127.9 127.9 129.8 132.6 133.3 135.6 136.9 Chemicals and products.................. 7.86 126.4 124.5 127.9 126.0 127.7 129.9 128.4 130.8 130.4 131.2 135.1 135.6 137.6 138.4 Petroleum products......................... 1.80 115.7 112.7 115.0 114.8 115.8 113.7 115.7 116.0 118.3 119.3 118.7 117.9 117.0 118.5 Rubber and plastics products......... 2.26 126.0 127.3 129.1 128.1 129.9 129.6 129.1 127.7 126.6 133.3 135.0 138.0 144.0 146.3 Foods and tobacco............................... 9.48 113.7 113.5 113.6 114.1 113.1 114.2 113.3 115.8 115.0 115.7 115.9 116.0 116.9 116.9 Foods................................................ 8.81 114.9 114.5 115.2 115.5 114.1 115.2 114.4 117.1 116.6 116.5 116.9 117.1 118.1 118.2 Tobacco products............................ .67 97.7 100.3 92.1 96.6 98.2 100.3 98.5 98.2 93.8 103.8 102.5 101.7 100.7 Mining Metal, stone, and earth minerals......... 1.26 104.6 104.6 104.9 91.5 96.8 98.1 102.0 110.9 111.1 108.0 109.8 108.3 104.4 98.8 Metal mining................................... .51 121.4 122.6 117.3 93.3 104.8 109.7 117.1 136.7 137.7 128.9 133.7 131.0 122.6 113.6 Stone and earth minerals................ .75 93.2 92.4 96.4 90.2 91.4 90.1 91.7 93.4 92.7 93.8 93.5 92.7 92.1 88.7 Coal, oil, and gas................................. 5.11 107.6 109.7 109.5 109.1 108.7 107.9 96.6 100.4 107.1 107.1 106.5 108.6 110.0 108.4 Coal.................................................. .69 99.8 111.4 109.3 109.3 110.7 111.0 29.5 55.1 112.4 106.3 99.6 104.1 112.9 104.8 Oil and gas extraction..................... 4.42 108.9 109.4 109.6 109.1 108.4 107.4 107.1 107.4 106.3 107.2 107.6 109.3 109.6 108.9 Utilities Electric.................................................. 3.91 138.1 136.0 137.5 140.9 138.6 138.6 140.6 141.9 141.9 141.2 144.4 144.8 147.5 149.1 1.17 119.8 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. □ JULY 1972 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ a 1 v 9 e 71 r­ 1971 1972 Grouping p ti o o r n ­ age* May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May* 100.00 106.8 107.6 110 0 102.8 105.8 110.3 110.3 107.7 104.5 106.6 110.3 111.3 113.0 112.7 62.21 106.4 105.3 109 1 104.5 107.4 112.2 111.5 107.7 103.0 105.5 109.0 109.4 110.9 110.3 48.95 104.7 103.1 107 4 102.0 105.5 110.6 109.7 105.9 101.2 104.4 107.7 107.6 109.3 108.1 28.53 115.7 113.6 119 3 112.6 118.4 124.2 123.0 117.2 109.9 115.7 119.4 118.9 121.7 119.9 20.42 89.4 88.5 90 8 87.3 87.5 91.7 91.1 90.1 89.0 88.6 91.4 91.9 92.0 91.5 13.26 112.6 113.2 115 3 113.5 114.3 118.0 118.0 114.1 109.8 109.4 113.8 116.1 116.7 118 3 37.79 107.4 111.3 111.5 99.9 103.1 107.3 108.2 107.6 106.9 108.3 112.4 114.3 116.2 116.7 Consumer goods 7.86 115.1 118.0 l?f 3 102.7 109.7 122.5 126.6 119.9 107.7 117.1 122.9 121.6 127.8 125.4 2.84 119.5 127.3 no 5 94.9 102.0 128.7 135.9 123.9 102.5 120.7 126.5 126.3 137.2 132.7 1.87 108.3 120.2 170 8 69.4 76.5 112.0 124.0 115.6 87.5 112.0 117.0 115.1 128 0 121 3 Auto parts and allied goods........ .97 140.9 140.9 149.0 144.0 151.1 160.6 158.7 139.8 131.3 137.5 144.8 147.8 154.9 154.7 5.02 112.6 112.8 116 1 107.1 114.1 119.0 121.4 117.6 110.7 115.1 120.8 119.0 122.5 121.3 1.41 111.5 117.3 117.5 102.9 104.5 113.9 125.7 116.7 98.4 123.1 127.2 120.1 131.9 124.5 .92 127.6 132.5 136.6 122.9 115.0 128.6 143.5 132.3 108.2 143.8 150.3 139.3 156.6 146.3 .49 81.4 88.8 81 .9 65.4 84.8 86.2 92.5 87.4 80.1 84.3 83.9 84.1 85.6 83.7 1.08 117.2 113.0 118,1 103.4 121.9 125.4 122.0 125.5 123.0 123.5 131.4 130.5 128.5 126.4 2.53 111.2 110.1 114,5 111.1 116.2 119.1 118.8 114.7 112.3 107.1 112.7 113.5 114.7 117.3 20.67 116.0 111.9 118.6 116.4 121.7 124.8 121.6 116.2 110.8 115.1 118.1 117.8 119.3 117.8 4.32 101.4 101.4 105.6 93.7 105.6 107.0 110.4 100.6 90.6 100.8 106.6 107.1 111.5 Consumer staples............................. 16.34 119.8 114.7 122.1 122.4 126.0 129.5 124.6 120.3 116.2 118.9 121.2 120.6 121.3 121.1 Consumer foods and tobacco.... 8.37 113.6 110.7 116.5 112.9 118.7 123.9 120.5 115.8 109.0 109.2 111.2 112.5 114.1 114.1 Nonfood staples........................... 7.98 126.3 118.8 127.9 132.4 133.7 135.3 128.9 125.0 123.7 129.0 131.7 129.2 128.9 128.5 Consumer chemical products.. 2.64 133.9 132.5 142.4 138.0 139.6 145.4 139.4 137.1 124.9 129.3 137.7 135.0 142.3 144.9 Consumer paper products....... 1.91 107.9 102.0 110.2 109.6 113.9 116.0 114.7 110.7 108.9 106.3 109.1 110.8 110.3 108.1 Consumer fuel and lighting. . . 3.43 130.8 117.6 126.5 140.8 140.2 138.3 128.8 123.7 131.0 141.4 139.6 135.0 129.0 127.1 Residential utilities............... 2.25 137.6 121.0 130.7 151.6 149.6 148.6 134.8 126.9 135.5 152.3 150.1 144.2 136.3 131.6 Equipment Business equipment............................... 12.74 96.8 94.7 98.9 94.4 94.7 101.1 100.3 98.3 96.4 96.6 100.7 101.5 101.5 100,7 Industrial equipment....................... 6.77 92.9 90.7 93.6 91.0 90.8 95.7 95.2 94.6 93.4 93.0 96.2 96.1 95.4 94.4 Building and mining equip.......... 1.45 92.9 90.9 91.6 87.0 90.5 98.2 97.0 99.0 95.7 97.1 99.5 97.6 98.4 96.7 Manufacturing equipment.......... 3.85 82.6 80.0 82.6 80.7 80.0 85.0 83.9 83.2 83.1 81.4 85.6 85.8 84.2 83 5 Power equipment......................... 1.47 119.8 118.5 124.2 121.7 119.1 121.2 123.1 120.2 118.1 119.3 120.6 121.4 121.8 120.7 Commercial, transit, farm eq.......... 5.97 101.2 99.2 104.9 98.2 99.1 107.3 106.1 102.4 99.9 100.7 105.8 107.6 108.5 107 8 Commercial equipment................ 3.30 110.0 107.0 113.5 114.5 111.9 116.7 113.2 110.5 107.4 105.3 110.1 110.7 109.9 111.7 Transit equipment....................... 2.00 89.4 89.2 94.1 75.5 83.1 92.9 96.0 91.8 90.8 93.5 97.3 99.5 104.8 100 9 Farm equipment........................... .67 93.2 90.9 94.3 85.8 83.8 103.7 101.2 93.7 90.6 99.1 109.9 116.8 112.7 109.1 Defense and space equipment.............. 7.68 77.1 78.1 77.4 75.4 75.5 76.1 75.7 76.4 76.6 75.3 75.9 76.0 76.1 76.2 Military products............................. 5.15 79.9 81.6 80.6 78.2 78.6 78.9 78.7 79.0 78.8 77.8 78.4 78.2 78.3 78.6 Intermediate products Construction products......................... 5.93 112.6. 116.9 118.4 112.2 111.8 116.1 117.6 112.7 109.1 107.6 113.7 116.4 117.9 119.3 Misc. intermediate products............... 7.34 112.6i 110.2 112.8 114.5 116.4 119.6 118.4 115.2 110.4 110.9 113.9 115.8 115.7 117.5 Materials Durable goods materials....................... 20.91 101.7r 107.Sf 107. C> 93.1 93.5 100.8 103.3 101.2 100.1 102.2 107.5 110.0 112.0 113.4 Consumer durable parts................. 4.75i 104.2I 108.81 107.3i 90.4 96.7 102.7 106.6 106.3 109.0 108.8 110.5 111.5 112.5 112.1 Equipment parts............................... 5.41 87.1 89.6i 89.6» 82.6i 81.1 88.0i 87.8 86.5 87.1 89.1 92.1 93.5 96.2 98.6 Durable materials n.e.c................... 10.75i 107.S► 116.5i 115.7' 99.6> 98.3 106.4 109.6 106.3 102.7 105.8 114.0 117.6 119.8 121.4 Nondurable goods materials................. 13.9<>> 114.1' 114.9> 116.4( 107.7r 114.4! 114.8f 117.6 117.5 114.4 115.1 118.3 119.7 121.3 121.1 Textile, paper, and chem. mat......... 8.585 116.(i 116.S> 118.S> 107.3i 116.8; 118.7' 121.5 122.8: 119.2; 120.0 124.3 125.9 127.7 127.3 Nondurable materials n.e.c............. 5.41L 110.3i 111.'/r 112.5; 108.3i 110.7 108.6» 111.3 109.0i 106.8 107.4 108.8 110.0 111.2 111.3 Fuel and power, industrial................. 2.8S> 116.2( 119.1r 119.5► 111.6i 118.0I 118.5i 97.9' 105.3 119.2: 119.4 119.6 119.6 121.8 119.1 Supplementary groups Home goods and clothing.................. 9.3^t 107.^I 107.!> in.:> 100.S) 110.2’ 113.4[ 116.3i 109.'r 101.4t 108.5: 114.2 113.5 117.4 113.8 Containers........................................... 1.8:> 116.11 119.1i 119.:> 113.1 121.31 120.2 123 f> 118.3! Ill .S> 114.Cl 123.3 120.3 127.91 125.5 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967 = 100) p 19 ro 67 - a 1 v 9 e 7 r 1 ­ 1971 1972 Grouping tion age* May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 88.55 105.2 106.3 108.7 100.3 103.5 108.8 109.7 106.8 102.7 104.7 109.0 110.1 111.9 111.9 Durable............................................ 52.33 99.4 102.2 103.3 93.7 94.3 101.0 102.4 99.8 91A 99.2 103.8 105.0 106.7 106.6 Nondurable...................................... 36.22 113.6 112.3 116.5 109.9 116.8 120.0 120.2 116.8 110.9 112.6 116.4 117.4 119.5 119.5 Mining and utilities............................... 11.45 118.9 116.6 120.1 121.3 123.5 122.8 114.2 113.9 118.1 121.0 121.1 120.7 120.4 119.2 Mining.............................................. 6.37 107.0 111.0 110.8 103.0 107.9 106.5 97.9 101.8 107.5 104.7 105.4 106.4 108.8 108.6 Utilities............................................. 5.08 133.9 123.6 131.7 144.2 143.0 143.4 134.7 129.1 131.5 141.5 140.8 138.7 134.9 132.6 Durable manufactures Primary and fabricated metals............ 12.55 104.0 114.6 111.2 96.2 90.2 99.1 101.6 98.9 98.0 102.8 109.4 112.3 114.0 114.4 Primary metals................................. 6.61 100.9 119.8 112.6 88.5 76.4 91.1 94.5 90.2 89.4 101.0 108.6 113.5 117.4 117.7 Iron and steel, subtotal............... 4.23 96.6 119.0 109.0 90.4 62.7 81.9 86.2 80.7 81.3 93.7 101.3 107.4 113.2 113.2 Fabricated metal products.............. 5.94 107.5 108.9 109.6 104.8 105.5 107.9 109.5 108.6 107.6 104.8 110.2 110.9 110.3 110.8 Machinery and allied goods................. 32.44 94.9 95.2 97.3 89.2 91.0 98.0 99.2 96.7 93.7 95.8 99.1 99.5 101.3 100.9 Machinery........................................ 17.39 96.2 95.1 97.7 93.1 93.5 100.4 100.6 98.1 95.6 97.8 101.7 101.8 102.6 102.2 Nonelectrical machinery............. 9.17 94.3 92.4 95.3 93.6 92.0 98.6 97.1 95.0 93.7 93.9 99.4 99.3 98.6 98.7 Electrical machinery.................... 8.22 98.3 98.1 100.4 92.6 95.2 102.5 104.4 101.5 97.7 102.1 104.3 104.5 107.1 106.2 Transportation equipment.............. 9.29 92.9 95.5 97.5 79.0 84.4 94.8 99.0 95.4 90.3 94.0 97.5 99.0 103.5 101.7 Motor vehicles and parts............ 4.56 114.1 119.0 122.8 88.0 98.0 116.6 124.8 119.8 110.8 119.1 123.3 123.8 131.8 128.2 Aerospace and misc. trans. eq. .. 4.73 72.5 72.8 73.2 70.4 71.2 73.8 74.1 71.9 70.6 69.8 72.6 75.0 76.3 76.1 Instruments....................................... 2.07 108.5 106.9 110.8 110.9 111.4 114.9 114.4 111.0 109.2 108.1 111.2 111.9 112.2 115.6 Ordnance, private and Govt........... 3.69 86.1 88.7 87.5 84.3 84.5 84.9 84.7 85.0 84.8 83.7 84.0 83.2 83.5 84.1 Lumber, clay, and glass....................... 4.44 111.5 113.8 117.4 111.5 116.7 117.6 118.6 113.5 107.1 105.9 112.3 115.3 117.7 119.1 Lumber and products...................... 1.65 113.9 112.5 118.4 113.2 118.5 120.4 122.6 116.2 109.3 111.1 119.5 121.5 122.1 122.4 Clay, glass, and stone products___ 2.79 110.0 114.6 116.8 110.5 115.6 115.9 116.3 111.9 105.8 102.8 108.1 111.6 115.1 117.1 Furniture and miscellaneous................. 2.90 111.7 109.3 114.3 106.2 114.6 118.1 117.3 117.5 115.2 111.3 118.4 118.8 119.0 118.3 Furniture and fixtures..................... 1.38 102.1 99.3 103.5 91.1 103.5 106.4 104.8 108.6 106.9 106.2 113.7 112.7 111.4 109.4 Miscellaneous manufactures........... 1.52 120.5 118.4 124.1 120.0 124.8 128.8 128.7 125.6 122.7 116.0 122.8 124.4 125.9 126.5 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 100.7 101.3 104.6 90.8 104.4 105.0 107.5 101.3 92.6 100.4 105.4 105.8 108.6 104.8 Textile mill products....................... 2.69 108.6 110.6 114.1 97.0 114.5 113.6 113.8 111.0 101.9 106.6 110.3 113.6 114.9 113.8 Apparel products............................. 3.33 97.8 97.4 100.8 89.9 100.4 102.4 106.7 98.1 87.7 98.4 105.3 103.6 107.5 Leather and products...................... .88 87.4 88.0 89.9 75.4 88.8 88.1 91.5 83.9 83.0 88.9 90.6 90.4 93.3 87.1 Paper and printing............................... 7.92 107.8 106.7 108.4 105.1 111.4 113.3 115.2 112.0 104.9 105.2 109.9 110.9 112.0 112.1 Paper and products......................... 3.18 115.8 116.0 116.3 105.5 117.3 115.9 123.0 120.2 110.8 120.7 125.9 125.3 126.9 125.5 Printing and publishing................... 4.74 102.5 100.5 103.1 104.9 107.5 111.5 109.9 106.5 100.9 94.8 99.2 101.2 102.0 103.1 Chemicals, petroleum, and rubber....... 11.92 124.8 123.7 129.4 122.3 126.8 130.9 130.1 129.1 125.9 126.0 131.1 132.4 135.5 137.4 Chemicals and products.................. 7.86 126.4 126.1 132.2 125.2 128.7 133.3 131.0 131.3 127.7 126.6 132.0 134.0 138.6 140.2 Petroleum products......................... 1.80 115.7 111.7 119.1 118.9 120.9 118.9 117.8 115.2 116.5 114.4 115.0 113.5 112.1 117.4 Rubber and plastics products......... 2.26 126.0 125.1 127.7 114.9 124.7 131.9 136.7 132.3 126.9 133.0 140.8 142.1 143.4 143.8 Foods and tobacco............................... 9.48 113.7 110.5 115.9 112.3 117.8 122.9 121.2 116.8 110.4 110.8 111.4 112.6 113.5 114.0 Foods................................................ 8.81 114.9 111.4 117.2 114.3 118.7 124.1 122.4 118.2 112.8 111.3 111.8 113.4 114.8 115.2 Tobacco products............................ .67 97.7 99.3 98.5 86.2 105.7 106.5 106.1 99.0 78.7 103.6 105.5 101.9 96.4 Mining Metal, stone, and earth minerals......... 1.26 104.6 116.9 118.3 97.2 104.1 104.1 105.8 103.9 100.5 93.1 95.4 98.0 105.1 110.3 Metal mining................................... .51 121.4 145.7 147.7 106.6 116.9 118.7 117.9 114.8 111.3 105.8 113.8 114.4 123.9 135.0 Stone and earth minerals................ .75 93.2 97.4 98.3 90.9 95.4 94.2 97.6 96.6 93.1 84.4 82.8 86.8 92.3 93.5 Coal, oil, and gas................................. 5.11 107.6 109.5 109.0 104.5 108.8 107.1 95.9 101.3 109.2 107.6 107.9 108.5 109.7 108.2 Coal.................................................. .69 99.8 113.6 110.4 83.7 117.9 113.9 31.5 56.9 111.7 105.1 99.9 102.7 114.9 106.9 Oil and gas extraction..................... 4.42 108.9 108.9 108.8 107.8 107.4 106.1 106.0 108.2 108.8 108.0 109.2 109.4 108.9 108.4 Utilities Electric.................................................. 3.91 138.1 124.2 134.6 151.3 150.0 150.8 139.9 132.8 136.2 146.6 145.8 143.5 138.5 135.5 Gas........................................................ 1.17 119.8 Note.—Published groupings include series and subtotals not shown date. Figures for individual series and subtotals are published in the separately. A description and historical data will be available at a later monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 BUSINESS ACTIVITY; CONSTRUCTION □ JULY 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry p u a ti c li i z ty a­ Con­ N ri o c n u a l- g - Products tion struc­ tural Total Period Total Total Final C p o r n o ­ ducts m In ed te ia r­ te M ri a al t s e­ f M a i c a n t n g u u r­ ­ i o = ( n u 1 1 m 9 tp 0 6 f 0 u 7 g ) t . tr c t a i o o c n t n s ­ T m p o e e l m o t n a y t ­ l — ­ i p m E lo e m n y ­ t ­ r P o a l y ls ­ s r a e l t e ai s l 3 s C um on e ­ r m W c s o o a h d m l o e i l t ­ e y ­ Total sumerEquip­ prod­ goods ment ucts 1952..................... 92.8 74.1 93.4 54.5 52 79.5 88.6 1953..................... 95.5 76.3 98.2 60.3 54 80.1 87.4 1954..................... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955..................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956..................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957..................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958..................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959..................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 I960..................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961..................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 '82.1 84.5 68.0 70 89.6 94.5 1962..................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963..................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 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..................... 106.7 106.0 104.5 110.3 96.3 111.7 107.7 105.2 r78. 3 107.3 98.1 114.2 120 116.3 110.4 1971* 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 '75.0 132.0 107.4 94.3 116.9 122 121.2 113.9 1971--M Ju a n y e . . . . . . . . . . . . . . . . . . r r 1 1 0 07 7. . 4 4 r '1 1 0 0 6 6 . . 2 1' '1 1 0 0 4 4 . . 6 4 ' ' 1 1 1 1 6 5 . . 1 4 ' ' 8 8 8 8 . . 5 7 ' '1 11 1 2 2 . . 9 2 ' '1 10 0 9 9 . . 3 4 ' ' 1 1 0 0 5 6 . . 9 0 '75.6 1 1 4 4 1 7 . . 0 0 1 1 0 0 7 7. . 3 5 9 9 4 4 . . 8 3 1 1 1 1 7 7. . 6 7 1 1 2 28 9 1 1 2 2 1 0 . .8 5 1 1 1 1 4 3 . . 3 8 July.......... '106.8 '107.0 '105.0 '116.3 89.3 '114.6 '106.4 '105.8 151.0 107.1 93.9 116.8 129 121.8 114.6 Aug.......... r105.6 '106.1 '104.8 '115.9 '89.5 '110.9 '104.8 '104.2 r74.7 153.0 107.1 93.5 116.5 133 122.1 114.9 Sept.......... r107.1'107.0 '105.5 '116.7 '89.8 '112.3 '107.3 '105.7 156.0 107.6 94.5 117.0 135 122.2 114.5 Oct........... r106.8 '107.0 '105.4 '116.6 '89.8 '113.2 '106.6 '106.1 137.0 107.6 94.1 117.8 134 122.4 114.4 Nov.......... r107.4 '107.9 '106.1 '118.0 '89.6 '114.3 '106.5 '106.0 r74.6 155.0 107.9 94.4 118.4 136 122.6 114.5 Dec........... r108.1'108.0 '106.2 '118.0 '89.6 '114.9 '108.4 '106.2 160.0 108.1 94.2 121.1 133 123.1 115.4 1972-—Jan........... '108.7 '108.4 '106.4 '118.5 '89.5 115.9 '109.2 '107.1 165.0 108.7 94.5 122.2 133 123.2 116.3 Feb........... ’•110.0 '109.5 '107.6 '119.6 '90.9 '117.0 '110.8 '108.5 '75.3 155.0 108.9 95.0 124.9 135 123.8 117.3 Mar.......... '110.9 '109.6 '107.6 '119.4 '91.2 '116.9 '112.9 '109.2 159.0 109.4 95.6 125.8 139 124.0 117.4 Apr........... '112.1 '110.8 '109.2 '121.4 '92.0 '116.5 '114.4 '111.0 167.0 109.7 96.2 '128.7 139 124.3 117.5 May......... 112.4 111.1 109.3 121.8 91.8 118.1 114.8 111.3 76.7 165.0 '110.1 '96.8 '129.3 141 124.7 118.2 June*....... 112.7 111.0 109.1 121.4 92.1 118.2 115.6 111.4 110.2 96.4 129.7 118.8 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. Latest figure is final. value of total construction contracts, including residential, nonresidential, 5 Figure is for second 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Total construction 1......................... 67,097 78,878 7,555 8,077 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607 7,284 8,100 9,097 By type of ownership: Public........................................ 23,362 24,183 2,065 2,795 2,683 2,299 2,010 1,837 1,960 1,696 2,137 1,634 '1,686 1,741 2,574 Private 1.................................... 45,058 56,408 5,489 5,489 4,987 5,413 4,804 4,731 4,445 4,590 4,097 3,973 '5,598 6,359 6,524 By type of construction: Residential building 1.............. 24,910 35,226 3,310 3,485 3,357 3,255 3,196 3,170 3,001 2,997 2,667 2,664 3,617 3,971 Nonresidential building........... 24,180 26,577 2,264 2,800 2,621 2,120 2,246 2,064 2,128 1.959 1,728 1,799 2,187 2,182 .....N...o..n..b...u..i.l.d..i..n..g.... 18,489 20,509 1,981 1,792 1,691 2,337 1,371 1,332 1,274 1.959 1,840 1,144 1 ,480 1,947 Private housing units authorized. .. 1,324 1,885 1,927 1,849 2,052 2,006 1,900 2,173 1,961 2,292 2,105 '2,078 '1 ,928 1,928 1,991 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Resi­ Buildings Mili­ High­ C v o a n ti s o e n r­ Total dential Total Indus­ Com­ Other Other Total tary way de m v & e en lo t p­ Other 2 trial mercial build­ ings 1 1962 3 ........ 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1963 4 ........ 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1965 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 1967 77,503 51,967 25,568 26.399 6,131 6,982 4.993 8,293 25,536 695 8,591 1968 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1969 93,347 65,384 33,200 32,184 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—May. 107,591 77,880 41,500 36,380 5,766 11,038 5,289 14,287 29,711 848 702 June. 109,210 79,941 42,326 37,615 5,508 11,795 5,815 14,497 29,269 865 614 July.. 109,801 80,328 42,533 37,795 5,428 12,690 5,499 14,178 29,473 1,142 150 Aug.. 111,778 81,939 43,795 38,144 4,852 13,069 5,482 14,741 29,839 900 609 Sept.. 110,319 81,730 45,027 36,703 4,597 11,702 5,591 14,813 28,573 786 570 Oct.. 114,748 82,905 46,135 36,770 4,993 11,510 5,372 14,895 31,843 881 540 Nov.. 115,186 84,764 46,841 37,923 4,885 12,188 5,670 15,180 30,422 938 697 Dec.. 117,017 85,989 47,741 38,248 4,914 12,391 5,770 15,173 31,028 918 454 1972—Jan.r 120,763 88,580 49,587 38,993 4,936 13,272 5,734 15,051 32,183 985 943 Feb.r 121,728 90,812 51,907 31,905 4,674 13,247 5,583 15,401 30,916 1,002 804 Mar.; 122.968 92,586 53,109 39,477 4,796 13,243 5.993 15,445 30,382 1,186 919 Apr.r 120,599 91,656 52,738 38,918 4,649 13,411 5,764 15,094 28,943 972 640 May. 121,843 91,690 52,211 39,479 4,684 13,730 5,905 15,160 30,153 978 967 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R .) Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.: Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 1963......................... 1,610 261 328 591 431 1,021 5189 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 c2,087 c2,055 c32 c627 c533 c94 c497 1971—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................ 2,457 437 508 995 518 1,347 121 989 155 152 3 92 85 7 34 1972—Jan................ 2,487 438 436 983 629 1,415 175 896 151 149 2 45 37 8 33 Feb................ 2,682 271 566 1,223 622 1,325 215 1,142 154 152 1 36 28 8 40 Mar.r............ 2,369 360 363 1,049 597 1,302 139 928 206 204 2 49 38 11 49 Apr. r............ 2,101 242 334 1,084 441 1,162 146 793 212 211 2 38 29 9 53 May.............. 2,322 264 545 1,031 482 1,329 118 875 226 224 2 43 34 9 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 □ JULY 1972 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p n T o ( s o N t p t i a u . t S u l l t a . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f a S o o b . r A t c o a e r . l ) Total Total E In m c n u p o l l t n o u a y ra g e l r d i- 1 In U pl n o e y m ed ­ U (p n e e m r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ industries agriculture 196 6 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967 3........ 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84.240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1971—June, 142,482 54,698 86,217 83,401 78,600 75,299 3,301 4,801 5.8 July. 142,685 53,877 86,727 83,930 79,014 75 ,640 3,374 4,916 5.9 Aug. 142,886 54,433 87,088 84.313 79,199 75,792 3,407 5,114 6.1 Sept. 143,104 56,220 87.240 84,491 79,451 76,088 3,363 5,040 6.0 Oct.. 143,321 55,968 87,467 84,750 79,832 76,416 3,416 4,918 5.8 Nov. 143,517 55,802 87,812 85,116 80,020 76,601 3,419 5,096 6.0 Dec. 143,723 56,181 87,883 85,225 80,098 76,698 3,400 5,127 6.0 1972—Jan.. 144,697 57,550 88,301 85,707 80,636 77,243 3,393 5.071 5.9 Feb., 144,895 57,577 88,075 85,535 80,623 77,266 3,357 4,912 5.7 Mar. 145,077 57,163 88,817 86.313 81,241 77,759 3,482 5.072 5.9 Apr. 145,227 57.440 88,747 86,284 81,205 77,881 3,324 5,079 5.9 May 145,427 57.441 88,905 86,486 81,394 78,041 3,353 5,092 5.9 June 145,639 55,191 88,788 86,395 81,667 78,330 3,337 4,728 5.5 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) Contract Transporta­ Period Total M t a u n ri u n f g ac­ Mining con ti s o t n ruc­ ti li o c n u & til i p ti u e b s ­ Trade Finance Service G m ov e e n r t n­ 1966......................................................... 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 1967......................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969......................................................... 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 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—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................................................ 71,729 18,690 612 3,236 4,479 15,495 3,879 12,177 13,161 Mar............................................... 72,030 18,777 613 3,272 4,536 15,518 3,890 12,217 13,207 Apr............................................... 72,263 18,870 603 3,233 4,522 15,647 3,897 12,254 13,237 May*............................................ 72,540 18,961 602 3,255 4,545 15,650 3,920 12,306 13,301 June*............................................ 72,556 18,908 601 3,245 4,551 15,651 3,923 12,359 13,318 NOT SEASONALLY ADJUSTED 1971—June.............................................. 71,355 18,746 634 3,414 4,549 15,192 3,837 12,050 12,933 July.............................................. 70,452 18,448 613 3,480 4,534 15,132 3,867 12,040 12,338 Aug............................................... 70,542 18,651 625 3,509 4,486 15,151 3,865 11,994 12,261 Sept............................................... 71,184 18,840 623 3,471 4,509 15,242 3,829 11,986 12,684 Oct................................................ 71,379 18,709 522 3,478 4,455 15,327 3,826 12,020 13,042 Nov............................................... 71,638 18,693 524 3,410 4,447 15,537 3,836 12,032 13,159 Dec............................................... 72,034 18,595 605 3,177 4,469 16,089 3,841 12,029 13,229 1972—Jan................................................ 70,643 18,440 602 2,965 4,430 15,266 3,833 11,926 13,181 Feb................................................ 70,776 18,537 596 2,880 4,407 15,147 3,844 12,031 13,334 Mar............................................... 71,374 18,653 599 2,974 4,482 15,274 3,867 12,131 13,394 Apr............................................... 71,928 18,713 597 3,117 4,486 15,460 3,885 12,279 13,391 May*............................................ 72,516 18,813 602 3,245 4,527 15,571 3,912 12,404 13,442 June*............................................ 73,274 19,054 615 3,404 4,601 15,710 3,954 12,520 13,416 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

JULY 1972 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted i Industry group 1971 1972 1971 1972 June Apr. May?5 JuneP June Apr. May? June» 13,496 13,770 13,851 13,798 13,611 13,626 13,721 13,918 Durable goods.................................................................. 7,627 7,815 7,889 7,852 7,713 7,781 7,853 7,940 Ordnance and accessories...................................... 95 91 93 97 95 90 92 96 Lumber and wood products.................................. 495 523 523 518 514 513 520 538 Furniture and fixtures............................................ 378 402 403 404 378 398 398 404 Stone, clay, and glass products............................. 499 515 524 521 511 510 522 534 Primary metal industries........................................ 996 969 977 959 1,019 974 983 981 Fabricated metal products..................................... 1,013 1,043 1,054 1,054 1,023 1,033 1,044 1,064 Machinery............................................................... 1,152 1,185 1,206 1,204 1,164 1,197 1,210 1,216 Electrical equipment and supplies......................... 1,179 1,224 1,235 1,237 1,175 1,211 1,218 1,233 Transportation equipment..................................... 1,246 1,265 1,275 1,254 1,258 1,267 1,274 1,267 Instruments and related products......................... 256 265 268 270 257 264 267 270 318 333 331 334 320 324 326 336 Nondurable goods............................................................ 5,869 5,955 5,962 5,946 5,898 5,845 5,868 5,978 Food and kindred products................................... 1,178 1,180 1,171 1,164 1,170 1,103 1,109 1,156 Tobacco manufactures........................................... 64 62 62 61 56 54 53 53 Textile-mill products............................................... 838 870 875 875 850 867 870 888 Apparel and related products................................ 1,188 1,201 1,190 1,182 1,202 1,191 1,187 1,196 Paper and allied products...................................... 520 535 540 540 528 531 535 548 Printing, publishing, and allied industries............ 667 667 669 665 666 667 666 665 Chemicals and allied products............................... 585 577 581 580 589 580 580 584 Petroleum refining and related industries............. 115 116 116 115 119 115 116 119 Rubber and misc. plastic products......................... 449 479 486 492 450 475 481 494 Leather and leather products................................. 265 268 272 272 269 264 269 276 1 Data adjusted to 1970 benchmark. Note.—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked1 Average weekly earnings1 Average hourly earnings1 (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1971 1972 1971 1972 1971 1972 June Apr. MayP JuneP June Apr. May-P June** June Apr. MayP June** Total................................................................... 40.0 40.8 40.5 40.6 143.51 152.69 153.09 154.63 3.57 3.77 3.78 3.79 Durable goods..................................................... 40.6 41.5 41.2 41.3 155.04 165.62 166.04 167.66 3.80 4.02 4.03 4.04 Ordnance and accessories........................... 41.6 42.4 42.2 42.0 160.93 171.33 172.18 172.18 3.85 4.06 4.08 4.08 Lumber and wood products...................... 40.4 41.1 40.8 41.2 129.65 133.58 135.55 138.44 3.17 3.25 3.29 3.32 Furniture and fixtures................................. 39.9 40.8 40.6 40.8 116.29 121.81 121.81 125.05 2.90 3.03 3.03 3.05 Stone, clay, and glass products................. 42.0 41.9 41.7 42.4 155.24 160.90 162.15 166.53 3.67 3.84 3.87 3.90 Primary metal industries............................ 41.0 41.4 41.5 41.4 173.87 190.90 192.19 193.49 4.21 4.60 4.62 4.64 Fabricated metal products......................... 40.6 41.2 41.1 41.1 153.38 161.56 162.76 164.36 3.75 3.95 3.96 3.97 Machinery.................................................... 40.7 41.8 41.7 42.0 162.39 176.81 176.81 178.50 3.99 4.23 4.24 4.25 Electrical equipment and supplies............. 39.9 40.8 40.4 40.4 139.95 147.06 147.10 148.60 3.49 3.64 3.65 3.66 Transportation equipment......................... 41.4 42.9 41.9 42.1 183.85 198.24 199.08 200.45 4.43 4.72 4.74 4.75 Instruments and related products............. 39.7 40.7 40.7 41.0 140.10 150.26 150.66 154.54 3.52 3.71 3.72 3.76 Miscellaneous manufacturing industries... 38.7 39.6 39.3 39.3 114.46 121.66 120.74 121.75 2.95 3.08 3.08 3.09 39.3 39.8 39.7 39.7 128.44 135.49 135.88 137.31 3.26 3.43 3.44 3.45 Food and kindred products....................... 40.1 40.7 40.5 40.6 136.89 143.60 145.08 146.52 3.38 3.59 3.60 3.60 Tobacco manufactures............................... 36.2 33.8 34.0 34.3 121.44 114.20 116.59 122.15 3.30 3.45 3.47 3.51 Textile-mill products................................... 40.8 41.7 41.2 41.2 104.96 112.34 111.52 112.61 2.56 2.72 2.72 2.72 Apparel and related products.................... 35.4 36.0 35.6 35.8 87.69 92.62 91.85 92.98 2.47 2.58 2.58 2.59 Paper and allied products.......................... 42.3 43.0 42.7 43.1 155.24 164.44 165.29 168.95 3.67 3.86 3.88 3.92 Printing, publishing, and allied industries. 37.7 38.0 37.7 37.8 158.34 167.45 167.70 168.97 4.20 4.43 4.46 4.47 Chemicals and allied products................... 41.7 41.7 41.6 41.6 164.30 173.05 172.64 174.30 3.94 4.13 4.15 4.19 Petroleum refining and related industries . 42.3 41.9 41.4 41.2 195.11 209.95 207.55 201.62 4.58 4.94 4.93 4.87 Rubber and misc. plastic products............ 40.7 41.5 41.2 41.7 137.57 146.32 146.73 149.29 3.38 3.56 3.57 3.58 Leather and leather products..................... 37.5 39.1 38.7 38.8 98.30 102.22 104.49 106.38 2.58 2.69 2.70 2.70 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 □ JULY 1972 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Home­ F o u i e l l G an a d s n in is g h s ­ up a k n e d ep p t o io rt n a­ Med­ Per­ R i e n a g d­ g O o t o h d e s r Total Rent owner- and elec­ and Total ical sonal and and ship coal tricity opera­ care care recrea­ serv­ tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945.......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56^9 1960.......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1961.......................... 89.6 89.1 90.9 92.9 86.9 91.0 99.4 93.7 90.4 90.6 86.7 81.4 90.6 89.3 88.5 1962.......................... 90.6 89.9 91.7 94.0 87.9 91.5 99.4 93.8 90.9 92.5 88.4 83.5 92.2 91.3 89.1 1963.......................... 91.7 91.2 92.7 95.0 89.0 93.2 99.4 94.6 91.9 93.0 90.0 85.6 93.4 92.8 90.6 1964.......................... 92.9 92.4 93.8 95.9 90.8 92.7 99.4 95.0 92.7 94.3 91.8 87.3 94.5 95.0 92.0 1965.......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970.......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971......................... 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1971—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............... f122.1 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 f 119.3 123.1 130.0 117.5 119.7 121.8 Sept............... tl22.2 119.1 125.5 116.1 135.1 117.8 115.7 119.4 120.6 1118.6 123.6 130.4 117.6 120.5 122.4 Oct................ fl22.4 118.9 125.9 116.4 135.7 117.8 115.7 119.5 121.6 fl 19.3 123.5 129.6 117.9 120.5 122.6 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 Mar............... 124.0 122.4 127.9 117.7 138.2 118.7 119.7 120.1 121.3 118.4 125.0 131.4 118.7 121.7 124.6 Apr............... 124.3 122.4 128.2 118.1 138.5 118.6 120.2 120.5 121.8 118.6 125.5 131.7 119.1 122.3 125.1 May.............. 124.7 122.3 128.5 118.3 138.9 118.7 120.5 120.8 122.5 119.5 125.8 132.0 119.7 122.5 125.4 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 Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ c f f e P o a e s n r o e s o d d d e ­ s d s Total T t e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c m M a q e h n e r u i a y n d n i ­ p ­ t ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i a o e u r n n n i t p a s t ­ ­ 1 ­ n c M e e o l i l u s a ­ s ­ 1960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961............................. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962............................. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963............................. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964............................. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 'ioo.s 105.2 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 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—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................... 114.5 110.5 114.6 115.0 109.7 114.7 115.3 104.3 109.7 134.3 110.6 121.1 116.0 110.2 124.2 109.6113.0 Oct................... 114.4 111.3 114.1 115.0 109.6 114.7 114.8 104.2 109.5 131.8 110.6 121.0 116.0 110.2 124.1 110.7113.0 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.................... 116.3 117.8 117.2 115.9 111.3 117.8 116.0 103.4 109.5 134.9 110.8 121.4 116.5 110.2 124.3 113.4113.7 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 Mar................... 117.4 119.7 118.6 116.9 112.1 123.0 116.5 103.4 108.9 139.5 112.3 123.4 117.3 110.9 124.8 113.8 114.2 Apr................... 117.5 119.1 117.7 117.3 112.6 127.2 116.9 104.1 108.7 141.1 112.8 123.5 117.6 111.0 125.6 113.7114.1 May................. 118.2 122.2 118.6 117.6 113.3 129.5 117.5 104.4 108.8 142.7 113.2 123.6 117.9 111.1 125.9 113.8 114.1 June................. 118.8 124.0 119.6 117.9 113.6 130.9 118.2 104.3 108.9 144.2 113.5 123.6 118.1 111.2 125.8 114.2114.2 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967=100) 1971 1972 1971 Group Group June Apr. May June Apr. May June Farm products: Pulp, paper, and allied products: Fresh and dried produce................... 136.1 117.6 120.6 121.7 Pulp, paper and products, excluding Grains.................................................. 109.4 96.0 97.5 94.5 building paper and board........... 110.4 113.1 113.4 113.8 Livestock............................................. 118.9 133.8 139.8 146.4 Woodpulp........................................ 112.4 111.5 111.5 111.5 Live poultry........................................ 108.1 94.1 96.3 102.9 Wastepaper....................................... 112.3 131.0 130.5 137.7 Plant and animal fibers...................... 92.3 122.1 130.1 127.3 Paper................................................ 114.3 115.9 115.9 116.2 Fluid milk........................................... 119.1 122.1 122.5 121.7 Paperboard....................................... 102.8 105.6 105.8 106.0 Eggs..................................................... 98.0 87.2 90.6 91.9 Converted paper and paperboard.. 109.8 112.7 113.3 113.5 Hay and seeds..................................... 109.9 118.5 116.9 116.9 Building paper and board.............. 103.2 106.1 106.5 106.6 Other farm products........................... 113.7 118.0 119.5 119.9 Processed foods and feeds: Metals and metal products: Cereal and bakery products.............. 111.5 112.8 113.3 113.3 Meat, poultry, and fish...................... 116.7 123.6 126.8 131.4 Iron and steel............................... 120.3 128.3 128.3 128.1 Dairy products................................... 116.1 117.5 117.4 115.3 Steelmill products........................ 121.1 130.9 130.7 130.4 Processed fruits and vegetables......... 115.4 118.3 119.0 119.5 Nonferrous metals....................... 116.4 117.6 117.8 117.6 Sugar and confectionery.................... 119.0 121.1 120.8 121.3 Metal containers.......................... 123.0 127.3 127.3 128.8 Beverages and beverage materials. .. 115.7 117.2 117.2 117.8 Hardware..................................... 115.8 119.6 120.2 120.4 Animal fats and oils........................... 123.9 127.8 127.3 125.8 Plumbing equipment................... 116.8 119.0 119.0 119.7 Crude vegetable oils........................... 127.2 118.9 112.8 112.0 Heating equipment............................ 115.2 117.9 118.1 118.6 Refined vegetable oils......................... 131.6 120.9 119.6 119.1 Fabricated structural metal products 117.9 122.1 122.0 122.2 Vegetable oil end products................ 118.5 120.7 120.7 121.5 Miscellaneous metal products.......... 118.7 124.3 124.4 124.4 Miscellaneous processed foods.......... 113.9 113.8 115.0 114.4 Manufactured animal feeds............... 107.4 108.5 108.4 107.7 Textile products and apparel: Machinery and equipment: Cotton products................................. 110.9 120.5 121.5 122.6 Agricultural machinery and equip... 116.9 122.1 122.3 122.7 Wool products.................................... 93.4 93.0 98.3 99.2 Construction machinery and equip., 121.2 125.7 125.6 125.9 Manmade fiber textile products.... 101.4 107.2 108.0 108.6 Metalworking machinery and equip 117.9 119.7 120.0 120.2 Apparel................................................ 112.3 114.2 114.3 114.4 General purpose machinery and Textile housefurnishings.................... 104.5 108.7 109.3 109.5 equipment...................................... 119.3 121.9 122.2 122.7 Miscellaneous textile products.......... 118.7 131.1 129.8 125.8 Special industry machinery and equipment...................................... 120.9 123.4 123.5 123.7 Hides, skins, leather, and products: Electrical machinery and equip........ 109.4 110.2 110.5 110.6 Miscellaneous machinery................. 117.2 119.6 120.3 120.7 Hides and skins.................................. 114.0 188.6 200.3 204.1 Leather................................................ 114.4 138.1 137.8 138.6 Footwear............................................. 116.8 122.4 124.6 125.8 Other leather products....................... 108.2 113.7 115.3 116.7 Furniture and household durables: Fuels and related products, and power: Household furniture........................ 115.2 116.9 117.1 117.2 Commercial furniture..................... 118.1 119.2 119.4 119.5 Coal..................................................... 182.5 191.2 191.2 191.2 Floor coverings............................... 98.4 98.2 98.2 98.6 Coke.................................................... 150.5 155.3 155.3 155.3 Household appliances..................... 107.1 107.5 107.2 107.1 Gas fuels............................................. 107.5 112.5 113.0 112.9 Home electronic equipment............ 93.6 92.8 92.9 92.6 Electric power.................................... 113.0 120.5 121.2 121.5 Other household durable goods... 120.1 124.5 125.0 125.4 Crude petroleum................................. 113.2 113.2 113.2 113.2 Petroleum products, refined.............. 107.4 106.6 107.3 108.5 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals........................... 102.2 101.5 101.4 101.4 Flat glass.......................................... 122.5 121.1 121.5 121.1 Prepared paint.................................... 115.9 118.3 118.3 118.3 Concrete ingredients....................... 121.5 126.4 126.7 126.8 Paint materials.................................... 99.4 103.0 103.5 103.9 Concrete products........................... 120.1 125.1 125.1 125.3 Drugs and pharmaceuticals............... 102.3 102.4 102.8 103.1 Structural clay products excluding Fats and oils, inedible........................ 132.0 112.2 116.0 115.9 refractories................................... 114.5 117.2 117.2 117.4 Agricultural chemicals and products. 94.1 92.2 92.1 92.3 Refractories..................................... 126.9 127.1 127.1 127.1 Plastic resins and materials................ 88.1 88.3 88.6 87.9 Asphalt roofing............................... 130.7 131.2 131.2 131.2 Other chemicals and products.......... 112.5 113.5 114.1 113.8 Gypsum products............................ 104.0 114.9 113.4 113.9 Glass containers............................... 131.5 136.2 136.2 136.2 Rubber and plastic products: Other nonmetallic minerals............ 124.8 126.4 128.4 127.4 Rubber and rubber products............ 111.1 112.9 113.0 113.3 Crude rubber................................... 99.4 98.2 98.6 98.6 Tires and tubes............................... 107.5 108.4 108.4 108.7 Transportation equipment: Miscellaneous rubber products.... 117.0 120.4 120.4 120.8 Plastic construction products (Dec. Motor vehicles and equipment. 114.4 '118.0 118.1 118.5 1969 = 100)....................................... 93.6 93.6 93.3 93.5 Railroad equipment................... 120.8 128.4 129.6 129.6 Unsupported plastic film and sheeting (Dec. 1970= 100)............................ 101.9 98.4 98.5 98.1 Laminated sheets, high pressure (Dec. 1970=100)............................ 99.2 98.4 98.4 97.9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................... 112.6 114.0 114.1 114.4 Lumber................................................ 134.4 155.1 157.0 159.0 Tobacco products............................. 116.5 117.4 117.5 117.5 Millwork............................................. 122.2 126.6 127.6 128.4 Notions.............................................. 111.7 111.7 111.7 111.7 Plywood.............................................. 110.2 128.9 130.3 131.7 Photographic equipment and supplies 106.0 106.2 106.2 106.2 Other wood products......................... 119.1 121.1 122.7 123.4 Other miscellaneous products.......... 111.9 115.0 114.9 115.2 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 □ JULY 1972 GROSS NATIONAL PRODUCT (In billions of dollars) I 1971 1972 Item 1929 1933 1941 1950 1967 1968 1969 1970 | 1971 I II III IV I Gross national product..................................... 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.1;1,046.81,020.81,040.01,053.41,072.91,103.6 Final purchases.................................................. 101.4 57.2 120.1 278.0 785.7 857.1 921.7 971.31,044.51,017.71,035.41,054.61,070.41,103.0 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 492.1 536.2 579.6 615.8 662.1 644.9 657.4 668.8 677.2 691.8 Durable goods.............................................. 9.2 3.5 9.6 30.5 73.1 84.0 89.9 88.6 100.5 96.6 99.1 102.8 103.6 107.6 37.7 22.3 42.9 98.1 215.0 230.8 247.6 264.7 278.6 273.2 277.8 280.2 283.3 288.0 30.3 20.1 28.1 62.4 204.0 221.3 242.1 262.5 282.9 275.0 280.5 285.8 290.3 296.2 Gross private domestic investment................... 16.2 1.4 17.9 54.1 116.6 126.0 137.8 135.3 151.6 143.3 152.9 150.8 159.4 168.3 14.5 3.0 13.4 47.3 108.4 118.9 130.4 132.5 149.3 140.2 148.3 152.0 157.0 167.7 10.6 2.4 9.5 27.9 83.3 88.8 98.6 102.1 108.7 104.7 108.3 109.3 112.6 118.7 Structures.............................................. 5.0 .9 2.9 9.2 28.0, 30.3 34.5 36.8 38.2 36.7 38.5 38.7 39.0 39.8 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 55.3 58.5 64.11 65.4 70.5 68.1 69.8; 70.6 73.6 78.9 Residential structures............................... 4.0 . 6 3.9 19.4 25.11 30.1 31.8 30.4 40.6 35.4 40.0| 42.7 44.4 49.0 Nonfarm................................................ 3.8 .5 3.7 18.6 24.51 29.5 31.2 29.7 40.1 35.0 39.5| 42.1 43.8 48.4 Change in business inventories................... 1.7 -1.6 4.5 6.8 8.2j 7.1 7.4 2.8 2.2 3.1 4.6 -1.2 2.4 .6 1.8 -1.4 4.0 6.0 7.5 6.9 7.3 2.5 1.7 2.9 4.1 -2.0 2.0 .1 Net exports of goods and services................... 1.1 .4 1.3 1.8 5.2 2.5 2.0 3.6 4.7 .1 — 4.6 — 6 2 Exports.......................................................... 7.0 2.4 5.9 13.8 46.2 50.6 55.6i 62.9 65.3 66.2 66.5; 68.2 60^4 69 .*2 Imports.......................................................... 5.9 2.0 4.6 12.0 41.0I: 48.1 53.6 59.3 65.3 61.5 66.4 68.2 65.0 75.4 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 180.1 199.6 209.7 219.4 233.0 227.9 229.6 233.8 240.8 249.6 Federal.......................................................... 1.3 2.0 16.9 18.4 90.7i 98.8 99.2’ 97.2! 97.6 96.4 96.0 97.6 100.3 104.9 National defense....................................... 13.8 14.1 72.4' 78.3 78.4 75 4 71 4 72.6 71.4 70.2 71.4 75.8 Other.......................................................... 3.1 4.3 18.4! 20.5 20.7 21 .91 26.2 23.7 24.6 27! 4 28*9 29 0 7.2 6.0 7.9 19.5 89.4•! 100.8 110.6> 122.2 135.5 131.6 133.6, 136.2 140.5 144!8 1 Gross national product in constant (1958) ! dollars............................................................ 203.6 141.5 263.7 355.3 675.2i 706.6i 724.7’ 720.0 739.4 729.7 735.8 740.7 751.3 761.6 1 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, July 1968, July 1969, July 1970, July adjusted totals at annual rates. For back data and explanation of series, 1971, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1971 1972 1929 1933 1941 1950 1967 1968 1969 1970 1971 Item I II III IV I National income................................................ 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 831.7 847.3 855.2 870.1 899.0 Compensation of employees............................. 51.1 29.5 64.8 154.6 467.2 514.6 565.5 601.9 641.9 627.3 638.0 645.6 656.6 679.9 Wages and salaries....................................... 50.4 29.0 62.1 146.8 423.1 464.9 509.6 541.4 574.2 561.4 571.0 577.3 587.0 607.3 Private........................................................ 45.5 23.9 51.9 124.4 337.3 369.2 405.5 426.6 450.4 440.3 448.4 452.3 460.3 475.6 Military..................................................... .3 .3 1.9 5.0 16.2 17.9 19.0 19.4 18.6 19.2 18.6 18.0 18.6 19.9 Government civilian................................. 4.6 4.9 8.3 17.4 69.5 77.8 85.1 95.5 105.2 101.8 104.0 106.9 108.1 111.8 Supplements to wages and salaries............... .7 .5 2.7 7.8 44.2 49.7 56.0 60.5 67.7 65.9 67.0 68.3 69.6 72.6 Employer contributions for social in- .1 .1 2.0 4.0 21.9 24.3 27.8 29.6 34.0 33.3 33.6 34.2 35.0 37.4 Other labor income.................................. .6 .4 .7 3.8 22.3 25.4 28.2 30.8 33.7 32.6 33.4 34.1 34.6 35.2 Proprietors’ income........................................... 15.1 5.9 17.5 37.5 62.1 64.2 67.0 66.9 68.3 66.4 67.2 69.2 70.5 71.2 Business and professional............................ 9.0 3.3 11.1 24.0 47.3 49.5 50.3 51.0 52.1 51.6 51.9 52.3 52.5 52.6 Farm.............................................................. 6.2 2.6 6.4 13.5 14.8 14.7 16.8 15.8 16.3 14.8 15.2 17.0 18.1 18.7 5.4 2.0 3.5 9.4 21.1 21.2 22.6 23.3 24.3 23.8 24.2 24.5 24.6 24.8 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 78.7 84.3 78.6 70.8 81.0 79.5 82.5 80.0 82.0 86.3 Profits before tax......................................... 10.0 1.0 17.7 42.6 79.8 87.6 84.2 75.4 85.4 83.0 86.9 85.8 86.0 91.9 Profits tax liability.................................... 1.4 .5 7.6 17.8 33.2 39.9 39.7 34.1 37.8 38.3 39.1 37.5 36.4 39.4 Profits after tax......................................... 8.6 .4 10.1 24.9 46.6 47.8 44.5 41.2 47.6 44.8 47.8 48.2 49.7 52.5 Dividends.............................................. 5.8 2.0 4.4 8.8 21.4 23.6 24.4 25.0 25.5 25.6 25.4 25.7 25.3 25.8 2.8 -1.6 5.7 16.0 25.3 24.2 20.0 16.2 22.1 19.2 22.4 22.5 24.4 26.6 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -1.1 -3.3 -5.5 -4.5 -4.4 -3.5 -4.4 -5.8 -4.0 -5.6 Net interest........................................................ 4.7 4.1 3.2 2.0 24.4 26.9 29.9 33.0 35.6 34.8 35.4 35.9 36.4 36.9 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

JULY 1972 □ NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1971 1972 Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 I II III IV I 1 Gross national product..................................... 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.11,046.81,020.81,040.01,053.41,072.91,103.6 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 68.9 74.5 81.1 87.6 95.2 92.0 93.9 96.2 98.7 101.2 Indirect business tax and nontax lia- 7.0 7.1 11.3 23.3 70.4 78.6 85.7 92.9 102.1 99.0 100.2 103.0 106.2 107.9 Business transfer payments.................. .6 .7 .5 .8 3.1 3.4 3.7 3.9 4.3 4.2 4.2 4.3 4.4 4.5 .7 .6 .4 1.5 Plus: Subsidies less current surplus of gov- -.1 .1 .2 1* ~ r- Tt -2.7 -4.1 -4.5 -4.9 -4.3 -4.9 -4.7 -5.8 -7.4 .7 1.1 1.7 1.0 1.8 .7 .7 .7 1.5 Equals: National income.................................. 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 831.7 847.3 855.2 870.1 899.0 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 79.5 82.5 80.0 82.0 86.3 Contributions for social insurance---- .2 .3 2.8 6.9 42.4 47.1 54.0 57.6 65.2 64.0 64.6 65.4 66.6 71.5 Excess of wage accruals over disburse­ ments.................................................. — 1.7 Plus: Government transfer payments........... .9 1.5 2.6 14.3 48.7 56.1 62.2 75.6 90.4 83.7 92.2 92.5 93.3 95.0 Net interest paid by government and consumers. . .................................... 2.5 1.6 2.2 7.2 23.6 26.1 29.0 31.7 31.9 31.8 31.4 32.2 32.2 31.9 Dividends.............................................. 5.8 2.0 4.4 8.8 21.4 23.6 24.4 25.0 25.5 25.6 25.4 25.7 25.3 25.8 .6 .7 .5 .8 3.1 3.4 3.7 3.9 4.3 4.2 4.2 4.3 4.4 4.5 Equals: Personal income................................. 85.9 47.0 96.0 227.6 629.3 688.9 750.3 803.6 857.0 833.5 853.4 864.6 876.7 900.1 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 83.0 97.9 116.2 115.9 115.8 111.6 113.8 116.0 121.7 135.7 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 546.3 591.0 634.2 687.8 741.3 722.0 739.6 748.5 755.0 764.3 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 506.0 551.2 596.3 633.7 680.7 663.3 676.0 687.6 696.0 710.8 Personal consumption expenditures. 77.2 45.8 80.6 191.0 492.1 536.2 579.6 615.8 662.1 644.9 657.4 668.8 677.2 691.8 Consumer interest payments............ 1.5 .5 .9 2.4 13.2 14.3 15.8 16.9 17.7 17.6 17.7 17.8 17.9 18.0 Personal transfer payments to for­ eigners............................................ .3 .2 .2 .5 .7 .8 .9 .9 .9 .9 .9 1.0 .9 1.0 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 40.4 39.8 37.9 54.1 60.5 58.6 63.6 61.0 59.0 53.5 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 477.5 499.0 513.5 531.5 550.6 542.7 550.5 553.2 556.1 558.0 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May** Total personal income.......................... 803.6 857.0 848.6 868.6 857.7 866.1 869.9 871.2 874.9 883.9 892.8 901.8 905.6 911.1 915.9 Wage and salary disbursements.......... 541.4 574.2 572.0 573.2 572.9 579.2 579.8 581.3 584.8 594.8 603.0 610.6 613.2 618.3 621.3 Commodity-producing industries. . 200.7 205.7 206.1 206.4 205.0 205.3 206.7 207.4 208.1 211.4 213.2 216.4 218.8 221.0 222.4 Manufacturing only...................... 158.3 160.8 161.1 161.4 160.2 160.2 161.1 162.0 162.2 165.3 165.8 169.2 171.6 173.4 174.8 Distributive industries..................... 129.1 138.8 138.3 138.1 138.0 140.0 140.7 140.9 141.6 144.7 146.3 149.4 148.6 150.1 150.4 Service industries............................. 96.7 105.9 105.0 105.7 106.3 107.4 107.7 108.1 108.7 109.9 111.4 112.3 113.5 114.3 115.1 Government..................................... 114.8 123.8 122.6 123.0 123.6 126.6 124.7 124.9 126.4 128.8 132.0 132.5 132.3 132.9 133.4 Other labor income............................. 30.8 33.7 33.4 33.7 33.9 34.1 34.3 34.4 34.6 34.8 35.0 35.2 35.4 35.7 35.9 Proprietors’ income............................. 66.8 68.4 67.1 67.4 68.3 69.3 70.1 70.4 70.6 70.7 70.8 71.3 71.7 71.5 71.3 Business and professional................ 51.0 52.1 51.9 52.1 52.2 52.3 52.3 52.4 52.5 52.6 52.5 52.6 52.7 52.8 52.9 Farm................................................. 15.8 16.3 15.2 15.3 16.1 17.0 17.8 18.0 18.1 18.1 18.3 18.7 19.0 18.7 18.4 Rental income...................................... 23.3 24.3 24.2 24.3 24.4 24.5 24.5 24.5 24.6 24.6 24.7 24.8 24.8 24.9 25.0 Dividends............................................. 25.0 25.5 25.6 25.2 25.6 25.7 25.7 25.7 25.7 24.3 25.8 25.9 25.8 25.9 26.1 Personal interest income..................... 64.7 67.5 66.7 66.9 67.4 68.1 68.8 68.7 68.6 68.4 68.7 68.8 68.7 69.3 69.9 Transfer payments............................... 79.6 94.7 90.5 109.0 96.2 96.5 97.9 97.4 97.6 98.2 98.7 99.4 100.3 100.0 101.0 Less: Personal contributions for social insurance....................................... 28.0 31.2 31.0 31.1 31.1 31.4 31.4 31.4 31.6 32.0 33.9 34.2 34.4 34.5 34.6 Nonagricultural income........................ 781.4 834.0 826.5 846.5 834.8 842.4 845.3 846.4 850.1 859.2 867.9 876.4 879.8 885.4 890.5 Agricultural income.............................. 22.2 23.0 22.1 22.2 22.9 23.7 24.6 24.7 24.7 24.8 24.9 25.4 25.7 25.6 25.4 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 □ JULY 1972 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 1972 Transaction category, or sector 1965 1966 1967 1968 1969 1970 1971 HI H2 HI H2 HI H2 Q1 Funds raised, by type and sector Total funds raised by nonfinancial 1 sectors....................................... 70.4 68.7 83.4 97.8 92.5 101.9 156.3 91.1 93.6 94.5 109.7 142.9 168.9 141.7 1 2 U.S. Government............................. 1. 3.6 13.0 13.4 -2 13.1 25.5 -7.4 2.0 8.9 17.4 22.3 28.6 3.6 2 3 Public debt securities.................. 1.3 2.3 8.9 10.3 -1.3 12.9 26.0 -5.9 3.6 9.5 16.3 23.8 28.1 1.3 3 4 Budget agency issues.................. .5 1.3 4.1 3.1 -1.6 .3 -.5 -1.5 -1.6 -.6 1.1 -1.6 .5 2.2 4 5 All other nonfinancial sectors. 68.6 65.0 70.4 84.4 95.3 130.8 98.5 91.5 85.6 92.3 120.6 140.3 138.1 5 6 Corporate equity shares............. .3 .9 2.4 -.7 4. 6.8 13.5 1.9 7.6 6.0 7.6 12.7 14.2 10.9 6 7 Debt instruments......................... 68.3 64.1 68.0 85.1 90.6 81.9 117.4 96.6 83.9 79.6 84.7 108.0 126.1 127.2 7 8 Debt capital instruments........ 38. 39.0 46.2 51.3 49.0 60.8 87.5 51.8 46.2 52.5 69.2 84.5 90.5 81.5 8 9 State and local govt. secs.. . 7.3 5.7 8.3 10.1 7.9 13.8 20.2 8.5 7.4 11.8 15.9 22.0 18.4 16.5 10 Corporate and fgn. bonds.. 5.9 11.0 15.9 14.0 13.1 21.1 20.3 14.0 12.2 18.0 24.3 23.2 17.4 15.9 11 Mortgages............................ 25.6 22.3 22.0 27.3 27.9 25.8 47.0 29.3 26.5 22.7 29.0 39.3 54.6 49.1 12 Home mortgages.............. 15.4 11.4 11.6 15.2 15.7 12.8 26.1 16.8 14.6 11.2 14.4 20.4 31 27.5 13 Other residential............... 3.6 3.1 3.6 3.5 4.8 5.9 8.8 4.6 5.1 5.2 6.6 8.6 9.0 9.1 14 Commercial...................... 4.4 5.7 4.7 6.6 5.5 5.4 10.1 5.7 5.3 4.8 6.0 8.6 11.6 10.4 15 Farm................................. 2.2 2.1 2.1 2.1 1.9 1.8 2.0 2.3 1.6 1.5 2.1 1.8 2.3 2.1 16 Other private credit................. 29.5 25.1 21.8 33.8 41.6 21.1 29.9 44. 37 21A 15.5 23.4 35.6 45.7 17 Bank loans n.e.c................... 14.1 10.4 9.9 13.8 16.8 5.0 13.0 19.4 14.2 9.0 1.1 7.9 18.0 21.8 18 Consumer credit.................. 10.0 7.2 4.6 11.1 9.3 4.3 10.4 10.0 7.9 5.5 3.4 6.5 13.5 13.9 19 Open-market paper............. -.3 1.0 2.1 1.6 3.3 3.8 -.4 4.6 2.1 3.7 3.8 -.4 -.4 2.9 20 Other.................................... 5.7 6.4 5.2 7.3 12.2 8.0 6.9 10.8 13.6 7.3 9.4 4.5 7.0 21 By borrowing sector.................. 68.6 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 138.1 22 Foreign........................................ 2.5 1.3 4.0 3.1 3.3 3.0 5.6 4.7 2.0 2.3 3.8 5.5 5.8 4.2 23 State and local governments 7.6 6.4 8.5 10.4 8.7 13.9 20.6 8.9 8.5 11.4 16.4 22.1 19.1 16.8 24 Households.................................. 28.8 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 49.4 25 Nonfinancial business................. 29.6 34.1 38.1 39.1 50 49.5 63.0 50.8 50.7 49.9 49.2 61.6 64.4 67.7 26 Corporate.................................. 20.6 25.2 29.7 30.7 40.2 39.8 48.6 39.8 40.6 41.1 38.5 47.0 50.1 52.7 27 Nonfarm noncorporate............. 5.7 5.5 5.0 5.7 7.4 6.4 10.3 7.6 7.2 5.6 7.4 11.0 9.7 10.2 28 Farm.......................................... 3.3 3.5 3.5 2.7 3.2 3.2 4.1 3.4 3.0 3.2 3.3 3.6 4.6 4.8 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1........ 173.6 191.2 188.7 208.7 225.1 221.9 249.7 222.3 227.9 220.3 223.4 243.7 i 272.9 1 2 Capital consumption2............. 110.3 118.5 128.4 140.4 153.8 165.7 176.3 150.4 157.2 163.3 168.2 173.4 179.1 183.9 2 3 Net physical investment.......... 63.3 72.7 60.3 68.3 71.3 56.1 73.4 71.9 70.7 57.1 55.2 70.4 89.0 3 4 Net funds raised...................... 58.5 57.3 57.9 71.0 83.3 71.8 104.6 84.9 81.1 71.9 72.1 93.1 117.1 4 5 Excess net investment3............ 4.9 15.4 2.4 -2.7 -12.0 -15.7 -31.2 -13.0 -10.3 -14 -17.0 -22.7 — 38.! -28.1 5 Total business 6 Total capital outlays.......... 84.1 97.0 94.0 99.0 108.4 109.0 119.0 104.5 112.2 105.7 112.3 117.6 128.9 6 7 Capital consumption............... 50.5 54.2 58.5 63.2 69.0 74.6 81.2 67.4 70.6 73.4 75. 79.1 86.6 7 8 Net physical investment.......... 33.6 42. 35.6 35. 39.4 34.4 37. 37.2 41.6 32.3 36.6 38.4 42.2 8 9 Net debt funds raised.............. 29.6 33.0 35. 40.0 46.5 42.7 49.6 49.5 43.4 43.7 41.9 49.2 56.7 9 10 Corporate equity issues.......... * 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 11.0 10 11 Excess net investment3............ 4.0 8.7 -2.5 -3.3 -11.4 -15.1 -25.2 -13.6 -9.1 -17.6 -12.6 -23.1 -27.3 -25.5 11 Corporate business 12 Total capital outlays.......... 62.8 77.1 72.0 76.2 84.1 84.1 87.1 80.6 87.6 81.5 86.8 86.9 96.0 12 13 Capital consumption............... 35.2 38.2 41.5 45.1 49.2 53.8 59.0 48.0 50.4 52.7 54.8 57.4 63.1 13 14 Net physical investment.......... 27.5 38.9 30.5 31.1 34.9 30.3 28.2 32.6 37.2 28. 31.9 29.5 32.9 14 15 Net debt funds raised.............. 24.0 27.4 31.6 35.9 33.0 35.1 38.6 33.2 34.9 31.2 34.7 35 41.7 15 16 Corporate equity issues.......... 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 11.0 16 17 Excess net investment3............ 6.9 13.7 .3 -5.3 -9.5 -20.4 -7.2 -3.3 -12.3 -6.5 -17.5 -19.8 17 Households 18 Total capital outlays.......... 89.6 94.2 94.6 109.7 116.7 112.9 130.7 117.7 115.7 114.6 111.0 126.2 135.2 144.0 18 19 Capital consumption............... 59.9 64.3 69.9 77.2 84.8 91.2 95.1 83.0 86.6 89.9 92.4 94.2 95.9 97.2 19 20 Net physical investment.......... 29.7 29.9 24.7 32.5 31.9 21.7 35.6 34.7 29.1 24.7 18.6 32.0 39.3 46.8 20 21 Net funds raised...................... 28.! 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 49.4 21 22 Excess net investment3........... .9 6.7 5.0 .6 -.6 -.6 -6.0 .5 -1.2 2. -4.3 .5 -11.7 -2.6 22 Of which: 23 Houses less home mortgages.. -3.3 -1.3 -2.1 -3.4 -2 -9.5 -2. -4.0 -1.4 -4.3 -5.3 -13. -5.4 23 24 Durables less cons, credit.... 4.7 7.9 7.8 5.6 6.3 4.0 6.5 7.2 5.9 5.0 2.8 8.5 5.3 8.2 24 25 Nonprofit P&E less mortgages 1.8 2.0 1.9 1.9 2.3 2.3 2.3 2.1 2.4 2.5 2.1 2.2 2.3 2.4 25 26 Less: Unallocated debt.......... 2.4 2.4 3.5 4.8 5.8 4.1 5.2 6.0 5.6 3.3 4.9 4.9 5.6 7.8 26 1 Capital outlays are totals for residential and nonresidential fixed and foreigners. All funds raised by financial sectors are excluded. U.S. capital, net change in inventories, and consumer durables, except outlays Government budget issues (line 4) are loan participation certificates by financial business. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 2 Capital consumption includes amounts for consumer durables and security issues by FHA, Export-Import Bank, and TV A. Issues by federally excludes financial business capital consumption. sponsored credit agencies are excluded as borrowing by financial institu­ 3 Excess of net investment over net funds raised. tions. Such issues are in U.S. Government securities on p. A-73, line 11. Corporate share issues are net cash issues by nonfinancial and foreign Note.—Data revised 1965-71; 1972 Q1 based on preliminary and in­ corporations. Mortgages exclude loans in process. Open market paper is complete information. commercial paper issued by nonfinancial corporations plus bankers’ Funds raised by type and sector. Credit flows included here are the acceptances. net amounts raised by households, nonfinancial business, governments, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ FLOW OF FUNDS A 73 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 1972 Transaction category, or sector 1965 1966 1967 1970 1971 HI HI H2 HI H2 Q1 1 Total funds advanced in credit mar­ kets to nonfinancial sectors... . 70.1 67.7 81.0 98.5 87.7 95.1 142.9 89.1 86.0 88.5 102.1 130.2 154.7 130.8 1 By public agencies and foreign 2 Total net advances........................... 8.9 11.9 11.3 12.2 15.8 28.0 41.2 9.9 22.3 25.3 30.6 37.7 44.8 27.4 3 U.S. Government securities........ 3.7 3.4 6 3.4 .9 15.7 33.4 -2.7 4.5 10.5 21.0 32.4 34.4 21.3 4 Residential mortgages................ .4 2. 2.1 2. 4.6 5.7 5.7 3.0 6.3 6.3 5.2 4.2 7.1 5.7 5 FHLB advances to S&L’s........... .7 .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2. -.1 -5 .5 -6.0 6 Other loans and securities.......... 4.1 4. 4.9 5.1 6.3 5.2 4. 6.6 6.6 5.7 4.6 6.9 2. 6.4 By agency— 7 U.S. Government.......................... 2. 4.9 4.6 4.9 2.9 2. 3.2 2.7 3.7 3.1 2.6 4.4 1.9 3.0 8 Sponsored credit agencies............. 2.2 5.1 -.1 3.2 9.0 9.9 2. 6.2 11.8 11.1 8.7 -1.8 7.4 7.2 9 Federal Reserve............................. 3.8 3.5 4.8 3.7 4.2 5.0 3.7 4. 2.8 7.2 8.4 9.3 3.9 10 Foreign........................................... .1 -1.6 2.0 .3 -.3 10.3 26.4 -2.6 2.0 8.3 12.2 26.7 26.1 13.4 11 Agency borrowing not in line 1. . .. 2.1 4. -.6 3.5 8.7 3.9 7.1 11.0 10.8 6.6 .3 7.4 6.6 Private domestic funds advanced 12 Total net advances............................. 63.3 60.6 69.1 89.8 80.7 75.8 105.5 86.3 74.7 74.0 78.0 92.8 117.3 110.0 13 U.S. Government securities......... * 5.4 5.7 13.3 5.4 6.2 -4.0 2.5 8.7 9.3 3.1 -9.9 1.8 -11.4 14 Municipal securities...................... 7.3 5.7 8.3 10.1 7.9 13.8 20.2 8.5 7.4 11.8 15.9 22.0 18.4 16.5 15 Corporate and foreign bonds....... 6.0 10.3 16.0 13.8 12.6 20.5 20.0 13.4 11.8 17.1 23. 23.0 17.1 16.9 16 Residential mortgages................... 18.6 11.6 13.1 15.8 15 12.9 29.2 18.3 13.3 10.0 15.7 24.7 33.6 30.9 17 Other mortgages and loans......... 32.1 28.5 23.5 37.8 43.0 23. 37.4 46.8 38.5 28.6 19.4 27.2 46. 51.1 18 Less: FHLB advances.................. .7 .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2. -.1 -5. .5 -6.0 Private financial intermediation 19 Credit market funds advanced by pri­ vate financial institutions........... 62.5 44.7 62.8 75.0 54.0 70.2 105.8 64.1 43.7 54.3 86.1 105.9 105.3 118.3 19 20 Commercial banking.................... 29.1 17.0 35.9 39.0 18.9 31.6 49 23.1 14.7 21.6 41.5 49.4 50.0 57.9 20 21 Savings institutions....................... 14.3 7.9 15.0 15.6 14.2 16.6 41.6 17.8 10.6 11.7 21.5 45.4 37.8 49.7 21 22 Insurance and pension funds 13.6 15.0 12.4 13.9 12.2 17.6 12.0 12.4 12.1 17.7 17.5 11.6 12.4 7.2 22 23 Other finance................................. 5.5 4.7 -.5 6.6 8.6 4.5 2.3 10.9 6.2 3.3 5.5 -.6 5.2 3.4 23 24 Sources of funds:............................... 62.5 44.7 62.8 75.0 54.0 70.2 105.8 64.1 43.7 54.3 86.1 105.9 105.3 118.3 24 25 Domestic private deposits............ 38.5 21.2 49.4 46.1 2.5 60.4 92.3 5.0 -. 1 32.0 88.8 105. 78.6 110.2 25 26 Credit market borrowing.............. 6.8 3.0 -.6 6.9 16.8 1.8 4.5 13.4 20.1 10.7 -7.0 -.2 9.2 3.1 26 27 Other sources................................. 17.2 20.5 14.0 22.0 34.7 8.0 9.0 45.7 23.6 11.6 4.3 .3 17.6 5.0 27 2 2 8 9 T Fo re r a e s ig u n ry f u b n a d la s n .. c .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -1. . 0 8 - 3 . . 5 7 2. . 3 2 - 2 . . 2 6 9.3 * -8 2 . . 4 9 -3 2 . . 3 2 - 1 2 4 .1 .4 4 2. . 1 2 -3 3 . . 4 4 -13 2 . . 5 4 - - 7 1 . . 6 6 6 1 . . 1 0 -7 5 . . 4 4 2 2 9 8 30 Insurance and pension reserves. 11.4 13.2 11.8 11.2 10.3 13.5 8.2 9.7 10.9 13.0 14.1 7.6 8.8 5.2 30 31 Other, net................................... 5.9 4.2 -.3 8.4 15.1 1.8 23.7 6.3 -1.3 1.2 2.0 1.6 1.7 31 Private domestic nonfinancial investors 32 Direct lending in credit mkts............ 7.6 18.9 5 21.7 43.5 7.4 4.2 35.5 51.2 30.3 -15.0 -13.3 21.2 -5.1 32 33 U.S. Government securities.......... 2.3 8.8 -1.3 7.7 16.0 -7.6 -13.1 14.6 17.4 1.8 -17.0 -24.7 -1.6 -18.1 33 34 Municipal securities...................... 2.6 2.7 -2.0 .3 7.5 1.7 5.7 5.4 9.7 4.5 -1.1 5.3 6.1 -1.3 34 35 Corporate and foreign bonds....... 1.4 2.5 5.3 5.1 7.6 10.4 8.6 6.0 9.1 8.7 12.1 10.3 6.8 13.5 35 36 Commercial paper......................... .5 2.0 1.5 4.4 8.7 -1.2 -2.1 6.1 11.2 10.9 -13.3 -7.8 3.7 -5.2 36 37 Other.............................................. 3.0 2.4 4.2 3.7 4.1 5.0 3.5 3.8 4.3 4.3 3.5 6.2 6.0 37 38 Deposits and currency..................... 40.7 23.1 51.5 48.6 5.3 63.9 95.7 6.5 4.1 35.0 92 110.3 80.9 117.5 38 39 Time and savings accounts.......... 32.7 20.3 39.3 34.0 -2.2 56.2 81.3 5.2 -9.7 31.1 81.4 92.4 70.1 86.8 39 40 Money............................................ 7.9 2.8 12.2 14.6 7.6 7.7 14.4 1.3 13.8 3.9 11.4 17.9 10.7 30.7 40 41 Demand deposits....................... 5.8 .8 10.1 12.2 4.7 4.2 11.0 -.2 9.6 .9 7.4 13.4 8.4 23.4 41 42 Currency..................................... 2.1 2.0 2.1 2.4 2.8 3.5 3.4 1.5 4.2 3.0 4.0 4.5 2.3 7.3 42 43 Total of credit market instr., de­ posits, and currency.................. 48.2 42.1 57.3 70.3 48.8 71.3 99.9 42.1 55.3 65.3 77.8 96.9 102.1 112.3 43 Memoranda: 44 Public support rate (in per cent) 12.7 17.6 18.0 29.4 28.9 26.0 28.6 30.0 28.9 29.0 21.0 44 45 Pvt. fin. intermediation (in per cent)....................................... 98.8 73.7 90.8 83.5 66.9 92.6 100.2 74.3 58.5 73.4 110.3 114.0 89.8 107.5 45 46 Total foreign funds....................... 2.1 4.3 2.9 9.0 1.8 23.1 11.8 6.2 4.9 -1.3 19.1 27.1 18.8 46 Corporate equities not included above 1 Total net issues.................... 3.4 4.6 4.9 4.0 10.4 9.3 14.6 8.3 12.6 9.1 9.5 12.9 16.3 8.1 1 2 Mutual fund shares......... 3.1 3.7 2.6 4.7 5.7 2.4 1.1 6.4 5.0 3.0 1.9 .2 2.1 -2.8 2 3 Other equities................... .3 .9 2.3 -.7 4.7 6.9 13.5 1.9 7.6 6.1 7.6 12.7 14.2 10.9 3 4 Acq. by financial institution 5.7 6.0 8.4 9.5 12.8 11.3 19.1 12.1 13.5 12.5 10.2 20.7 17.5 15.4 5 Other net purchases............ -2.3 -1.3 -3.5 -5.5 -2.4 -2.0 -4.5 -3.8 -.9 -3.3 -.7 -7.8 -1.2 -7.3 Notes 29. Demand deposits at commercial banks. 30. Excludes net investment of these reserves in corporate equities. Line 31. Mainly retained earnings and net miscellaneous liabilities. 1. Total funds raised (line 1 of p. A-72) excluding corporate equities. 32. Line 12 less line 19 plus line 26. 2. Sum of lines 3-6 or 7-10. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 6. Includes farm and commercial mortgages. includes mortgages. 11. Funds raised by Federally sponsored credit agencies. 42. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. Also sum of lines 27 through 41 excluding subtotals. 44. Line 2/line 1. 17. Includes farm and commercial mortgages. 45. Line 19/line 12. 25. Lines 39 + 41. 46. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line branches, and liabilities of foreign banking agencies to foreign 1 and 3 Includes issues by financial institutions. Digitized for FRAaSffiEliaRte s. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. BALANCE OF PAYMENTS □ JULY 1972 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1971r 1972 Line Credits+, debits — 1969 »• 1970r 1971r I II III IV I* Summary—Seasonally adjusted 1 Merchandise trade balance 1.................................................... 621 2,164 -2,689 289 -1,012 -472 -1,494 -1,673 2 Exports............................................................................... 36,417 41,963 42,770 11,017 10,710 11,479 9,564 11,809 3 -35,796 -39,799 -45,459 -10,728 -11,722 -11,951 -11,058 -13,482 4 Military transactions, net......................................................... -3,344 -3,374 -2,894 -665 -698 -724 -807 -866 5 Travel and transportation, net................................................. -1,784 -2,061 -2,432 -498 -625 -606 -703 -643 6 Investment income, net 2.......................................................... 5,975 6,259 7,995 1,798 2,191 1,711 2,295 1,836 7 U.S. direct investments abroad........................................ 7,340 7,920 9,455 2,060 2,464 2,163 2,770 2,271 ft Other U.S. investments abroad........................................ 3,199 3,506 3,443 877 833 852 881 930 9 -4,564 -5,167 -4,903 -1,139 -1,106 -1,304 -1,356 -1,365 10 442 574 748 212 180 182 172 199 11 1,911 3,563 727 1,136 36 91 -537 -1,147 12 Remittances, pensions, and other transfers........................... -1,301 -1,474 -1,529 -355 -369 -402 -404 -387 13 Balance on goods, services, and remittances................................... 610 2,089 -802 781 -333 -311 -941 -1,534 14 U.S. Government grants (excluding military)......................... -1,644 -1,734 -2,045 -436 -477 -544 -588 -560 15 -1,035 356 -2,847 345 -810 -855 -1,529 -2,094 16 U.S. Government capital flows excluding nonscheduled repayments, net 4.................................................................. -2,106 -1,829 -2,117 -609 -681 -442 -385 -287 17 Nonscheduled repayments of U.S. Government assets.......... -87 244 225 4 102 72 48 45 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies......................................................... 267 -433 -486 -97 -5 -188 -196 -143 19 Long-term private capital flows, net....................................... -50 -1,398 -4,149 -922 -1,605 -1,883 260 -762 20 U.S. direct investments abroad........................................ -3,254 -4,400 -4,765 -1,290 -1,277 -1,410 -788 -994 21 Foreign direct investments in the United States............. 832 1,030 -67 124 I -374 181 -335 22 Foreign securities.............................................................. -1,494 -942 -909 -361 -372 -249 73 -388 23 U.S. securities other than Treasury issues....................... 3,112 2,190 2,282 559 196 606 921 1,066 24 Other, reported by U.S. banks......................................... 477 198 -814 -127 -214 -308 -165 6 25 Other, reported by U.S. nonbanking concerns............... 277 526 124 173 61 -148 38 -117 26 -3,011 -3,059 -9,374 -1,279 -2,999 -3,296 -1,802 -3,241 27 Nonliquid short-term private capital flows, net..................... -640 -482 -2,420 -534 -315 -883 -688 -529 28 Claims reported by U.S. banks....................................... -658 -1,023 -1,807 -139 -91 -892 -685 -566 29 -73 -361 -555 -133 -145 -147 -130 34 30 Liabilities reported by U.S. nonbanking concerns.......... 91 902 -58 -262 -79 156 127 3 31 867 717 180 179 179 179 178 32 Errors and omissions, net........................................................ -2,470 -1,174 -10,927 -944 -2,586 -5,380 -2,018 480 33 Net liquidity balance......................................................................... -6,122 -3,851 -22,002 -2,577 -5,721 -9,380 -4,329 -3,112 34 Liquid private capital flows, net.............................................. 8,824 -5,988 -7,763 -2,848 -745 -2,551 -1,619 -165 35 Liquid claims..................................................................... 162 252 -1,072 -272 95 -555 -340 -693 36 Reported by U.S. banks............................................ -209 -99 -566 -94 32 -392 -112 -518 37 Reported by U.S. nonbanking concerns................. 371 351 -506 -178 63 -163 -228 -175 38 Liquid liabilities................................................................. 8,662 -6,240 -6,691 -2,576 -840 -1,996 -1,279 528 39 To foreign commercial banks................................... 9,166 -6,508 -6,908 -2,928 -892 -1,775 -1,313 438 40 To international and regional organizations........... -63 181 682 280 198 149 55 29 41 To other foreigners.................................................... -441 87 -465 72 -146 -370 -21 61 42 2,702 -9,839 -29,765 -5,425 -6,466 -11,931 -5,948 -3,277 Financed by changes in— 43 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Government.............................................. -162 535 341 -8 -8 -9 366 280 44 Nonliquid liabilities to foreign official agencies reported -836 -810 -539 -201 -160 -173 -5 -4 45 Liquid liabilities to foreign official agencies........................... -517 7,637 27,615 4,952 5,975 10,919 5,774 2,572 46 U.S. official reserve assets, net................................................. -1,187 2,477 2,348 682 659 1,194 -187 429 47 Gold................................................................................... -967 787 866 109 456 300 1 544 48 SDR’s................................................................................ -851 -249 -55 17 -29 -182 -178 49 Convertible currencies...................................................... 814 2,152 381 373 -66 72 2 64 50 Gold tranche position in IMF......................................... -1,034 389 1,350 255 252 851 -8 -1 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................. 2,856 2,586 3,153 735 778 701 939 932 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)........................... 2,614 2,885 (5) (5) (5) (5) (5) (5) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)...................... 431 434 (5) (5) (5) (5) (5) (5) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 o U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 75 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1971 ^ 1972 Credits +, debits — 1969 »• 1970 r 1971 r I II III IV Ip Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance..................................................................... -6,122 —4,718 -22,719 -2,757 -5,900 -9,559 -4,508 -3,290 Official reserve transactions balance............................................. 2,702 -10,706 -30,482 -5,605 -6,645 -12,110 -6,127 -3,455 Balances not seasonally adjusted Balance on goods and services (line 11)....................................... 1,911 3,563 727 1,509 251 -1,330 296 -782 Balance on goods, services, and remittances (line 13)................ 610 2,089 -802 1,174 -131 -1,743 -104 -1,148 Balance on current account (line 15)............................................ -1,035 356 -2,847 709 -655 -2,246 -657 -1,738 Balance on current account and long-term capital 4 (line 26)... -3,011 -3,059 -9,374 -1,262 -3,466 -4,672 23 -3,272 Balances including allocations of SDR’s: Net liquidity (line 33)............................................................. -6,122 -3,851 -22,002 -1,858 -6,612 -10,066 -3,466 -2,365 Official reserve transactions (line 42).................................... 2,702 -9,839 -29,765 -4,718 -6,462 -12,703 -5,882 -2,548 Balances excluding allocations of SDR’s: -6,122 -4,718 -22,719 -2,575 -6,612 -10,066 -3,466 -3,075 Official reserve transactions................................................... 2,702 -10,706 -30,482 -5,435 -6,462 -12,703 -5,882 -3,258 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 avaiiable. 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...................... 3 2,161 3,406 3,733 4,221 32,002 3,223 3,683 4,540 159 183 50 -319 Feb..................... 32,266 3,547 3,691 3,806 32,672 3,278 3,550 4,403 -406 269 141 -598 Mar..................... 3 3,188 3,376 3,815 3,891 32,982 3,218 3,565 4,475 206 158 250 -584 Apr..................... 3 3,318 3,409 3,521 3,760 3 3,183 3,263 3,754 4,460 135 146 -232 -699 May................... 3 3,268 3,661 3,783 3,914 3 3,257 3,338 3,983 4,466 11 323 -201 -552 3 3,179 3,730 3,661 3 3,152 3,266 4,019 27 465 -358 July.................... 3,182 3,699 3,493 3,074 3,255 3,790 108 444 -297 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 11,917 7,655 9,719 10,798 13,418 -40 609 441 -1,501 II........................ 9,765 10,800 10,965 9,591 9,867 11,755 174 933 -790 Ill .... 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 □ JULY 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) 1971 1972 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 III IV Western Europe: Austria............................... -82 -55 -100 -25 Belgium............................... -40 -83 -58 -110 -110 France................................. — 518 -405 -6oi 600 325 -129 -473 -282 -191 Germany, Fed. Rep. of. . . -225 500 Ireland................................ -1 -2 -2 -2 -52 41 Italy..................................... 200 -80 -60 -85 -209 -76 Netherlands....................... -60 -35 -19 -50 -25 -25 Spain................................... -130 -32 -180 51 Switzerland......................... -81 -50 -2 -30 -50 -25 -50 -175 -75 -50 -50 United Kingdom............... *329 618 150 80 -879 -835 Bank for Intl. Settlements. 200 Other.................................. -35 -49 16 -47 11 -29 -13 -6 -22 Total. -399 -88 -1,299 -659 -980 -669 969 -204 -796 -85 -448 -263 Canada ---- 200 150 50 Latin American republics: Argentina ..................... -39 -1 -25 -25 -28 Brazil.............................. -3 -1 -23 Colombia....................... 7 -1 Venezuela....................... Other............................... -9 -6 -40 -29 -80 -5 Total. 32 56 -41 -65 -131 -4 Asia: Iraq................ -4 -21 -42 Japan............. -56 -119 Lebanon........ -11 -95 -35 Malaysia........ -34 -10 Philippines. .. 25 -1 9 40 ’ -i -1 Saudi Arabia. -50 Singapore -81 -30 Other............. -13 -14 -14 -22 -75 2-91 21 -1 Total................. 12 3 -44 -366 -213 -15 10 -32 All other....................... -36 -7 3-166 3-68 -81 -1 -4 Total foreign countries. -392 -36 -1 ,322 -608 -1,031 -1,118 957 4-631 -845 -102 -445 -296 Intl. Monetary Fund5.. 6-225 177 22 -3 10 -156 -22 -7 -11 -4 -544 Grand total........ -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -867 -109 -457 -300 -1 -544 1 Includes purchase from Denmark of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 2 Includes purchase from Kuwait of $25 million. by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 3 Includes sales to Algeria of $150 million in 1967 and $50 million in first withdrawal ($17 million) was made in June 1968 and the last with­ 1968. drawal ($144 million) was made in Feb. 1972. 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. IMF repurchased $400 million in Sept. 1970 and the remaining in connection with the IMF quota payments. Such U.S. sales to countries $400 million in Feb. 1972 and resales to the United States by the IMF total $548 million each. 6 Payment to the IMF of $259 million increase in U.S. gold subscription 5 Includes IMF gold sales to and purchases from the United States, 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 if needed. Under appropriate conditions, the United States could pur­ IMF operations. Does not include transactions in gold relating to gold chase additional amounts equal to its quota. deposit or gold investment (see Table 6). 5 Includes $259 million gold subscription to the IMF in June 1965 for a U.S. quota increase, which became effective on Feb. 23, 1966. In figures 2 Positive figures represent purchases from the IMF of currencies of published by the IMF from June 1965 through Jan. 1966, this gold sub­ other members for equivalent amounts of dollars; negative figures repre­ scription was included in the U.S. gold stock and excluded from the sent repurchase of dollars, including dollars derived from charges on reserve position. purchases and from other net dollar income of the IMF. The United 6 Includes $30 million of special drawing rights. States has a commitment to repurchase within 3 to 5 years, but only to 7 Represents amount payable in dollars to the IMF to maintain the the extent that the holdings of dollars of the IMF exceed 75 per cent of value of IMF holdings of U.S. dollars. the U.S. quota. Purchases of dollars by other countries reduce the U.S. commitment to repurchase by an equivalent amount. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 3 Includes dollars obtained by countries other than the United States 1966, to $6,700 million in Dec. 1970, and to $7,270 million in May 1972 as from sales of gold to the IMF. a result of the change in par value of the U.S. dollar. Under the Articles of 4 Represents the U.S. gold tranche position in the IMF (the U.S. Agreement, subscription payments equal to the quota have been made quota minus the holdings of dollars of the IMF), which is the amount 25 per cent in gold and 75 per cent in dollars. that the United States could purchase in foreign currencies automatically Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 d U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e C u c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i e n t F i r o v 3 n e SDR’s 4 E m n o d n t o h f Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e C u c r r i r o e t e r i i e n s b g 5 n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 1958... 22,540 20,582 20,534 1,958 1971 1959.. . 21,504 19,507 19,456 1,997 June... 13,504 10,507 10,332 322 1,428 1,247 1960. . . 19,359 17,804 17,767 1,555 July__ 13,283 10,453 10,332 250 1,433 1 147 Aug---- 12,128 10,209 10,132 248 574 1,097 1961... 18,753 16,947 16,889 116 1,690 Sept---- 12,131 10,207 10,132 250 577 1,097 1962... 17,220 16,057 15,978 99 1,064 Oct.. . . 12,146 10,207 10,132 259 580 1,100 1963... 16,843 15,596 15,513 212 1,035 Nov... . 12,131 10,206 10,132 243 582 1,100 1964... 16,672 15,471 15,388 432 769 Dec.... 812,167 10,206 10,132 8 276 585 1,100 1965... 15,450 613,806 613,733 781 6 863 1972 1966... 14,882 13,235 13,159 1,321 326 Jan.. . . 12,879 10,206 10,132 276 587 1,810 1967... 14,830 12,065 11,982 2,345 420 Feb.... 12,330 9,662 9,588 276 582 1,810 1968... 15,710 10,892 10,367 3,528 1,290 Mar__ 12,270 9,662 9,588 212 586 1,810 1969. . . 716,964 11,859 10,367 72,781 2,324 Apr... . 12,285 9,662 9,588 429 391 1,803 1970... 14,487 11,072 10,732 629 1,935 851 May. .. 913,345 910,490 910,410 469 9428 91,958 1971 . . . 812,167 10,206 10,132 8 276 585 1,100 June. . . 13,339 10,490 10,410 457 434 1,958 1 Includes (a) gold sold to the United States by the International Mon­ became effective on Feb. 23, 1966. In figures published by the IMF from etary Fund with the right of repurchase, and (b) gold deposited by the June 1965 through Jan. 1966, this gold subscription was included in the IMF to mitigate the impact on the U.S. gold stock of foreign purchases U.S. gold stock and excluded from the reserve position. for the purpose of making gold subscriptions to the IMF under quota 7 Includes gain of $67 million resulting from revaluation of the German increases. For corresponding liabilities, see Table 6. mark in Oct. 1969, of which $13 million represents gain on mark holdings 2 Includes gold in Exchange Stabilization Fund. at time of revaluation. 3 The United States has the right to purchase foreign currencies equiva­ 8 Includes $28 million increase in dollar value of foreign currencies lent to its reserve position in the IMF automatically if needed. Under ap­ revalued to reflect market exchange rates as of Dec. 31, 1971. propriate conditions the United States could purchase additional amounts 9 Total reserve assets include an increase of $1,016 million resulting equal to the U.S. quota. See Table 5. from change in par value of the U.S. dollar on May 8, 1972; of which, 4 Includes allocations by the IMF of Special Drawing Rights as follows: total gold stock $828 million, (Treasury gold stock $822 million,) reserve (in millions of dollars) 867 on Jan. 1, 1970; 717 on Jan. 1, 1971; and 710 on position in IMF $33 million, and SDR’s $155 million. Jan. 1. 1972; plus net transactions in SDRs. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. Note.—See Table 24 for gold held under earmark at F.R. Banks for 6 Reserve position includes, and gold stock excludes, $259 million gold foreign and international accounts. Gold under earmark is not included subscription to the IMF in June 1965 for a U.S. quota increase which in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by reserve other countries position Period with IMF Per cent in IMF P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t s ­ by s g N I a o M l e l e d t s F 1 T t c f i r c o 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 d n o c F i l o n l a m n rs e e t P d u o rc l o l h a f a r s s e 3 s pu d r o R c i l h n l e a a ­ r s s es c T ha o n ta g l e Amount q U u o . o S f t . a p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 6 712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6.115 91 585 1971—June. 250 -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 Apr.. 200 -5 195 6,309 94 391 May. 7541 -4 537 6,846 94 428 June. -6 -6 6,840 94 434 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. □ JULY 1972 6. U.S. LIQUID AND NONLIQUID LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions 2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid Nonliquid ties to End IMF Liquid non­ of Total arising liabili­ mone­ period from Short­ Nonmar­Nonmar­ Long ties Short­ tary gold term Market­ ketable ketable term to com­ term Market­ inti, trans­ Total liabili­ able con­ noncon­ liabili­ mercial liabili­ able and re­ actions 1 ties re­ U.S. vertible vertible ties re­ banks Total ties re­ U.S. gional ported Govt. U.S. U.S. ported abroad 6 ported Govt. organi­ by bonds Treas. Treas. by by bonds zations 7 banks and bonds bonds banks banks and in notes3,4 and and in in notes3 U.S. notes notes5 U.S. U.S. 195 7 8 15,825 200 7,917 (9) 3,472 2,252 (9) 764 195 8 8 16,845 200 8,665 (9) 3,520 2,430 (9) 1,047 195 9 19,428 500 10,120 9,154 966 4,678 2,940 2,399 541 1,190 1960 io......... (20,994 800 11,078 10,212 866 4.818 2,773 2.230 543 1,525 \21,027 800 11,088 10,212 876 4.818 2,780 2.230 550 1,541 1961 io......... /22,853 800 11.830 10.940 890 5,404 2,871 2,355 516 1.948 \22,936 800 11.830 10.940 890 5,484 2,873 2,357 516 1.949 1962 io......... J 1 2 2 4 4 . , 2 2 6 6 8 8 8 8 0 0 0 0 1 1 2 2 , , 9 9 4 1 8 4 1 1 1 1 , , 9 96 9 3 7 7 7 5 5 1 1 2 2 0 0 0 0 5 5 . . 3 3 4 4 6 6 3 3 . . 0 0 1 1 3 3 2 2 . . 5 5 6 6 5 5 4 44 4 8 8 2 2 , , 1 1 6 9 1 5 1963 io.......... / \ 2 2 6 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 5 2 9 5 1 1 2 2 . . 4 4 6 6 7 7 1 1 , , 2 1 1 83 7 7 7 0 0 3 3 6 6 3 3 5 5 . . 8 8 1 1 7 7 3 3, , 3 38 97 7 3 3 . . 0 0 4 4 6 6 3 3 4 51 1 1 1, , 9 9 6 6 5 0 1964 io.......... / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , . 7 78 9 6 0 1 1 3 3, , 2 22 2 4 0 1 1 . . 1 1 2 25 5 1 1 . . 0 0 7 7 9 9 2 2 0 0 4 4 1 1 5 5 8 8 7 7 , , 2 3 7 0 1 3 3 3, , 7 7 5 3 3 0 3 3 , , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 . . 7 7 2 2 2 2 196 5 29,569 834 15,826 13.066 1,105 1,201 334 7,419 4,059 3,587 472 1,431 1966 io......... / 1 3 3 1 1 , , 1 0 4 2 5 0 1 1, , 0 01 1 1 1 1 1 4 4, , 8 8 4 9 1 6 1 1 2 2 , , 4 53 8 9 4 8 86 60 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 io......... / \ 3 3 5 5 , , 8 6 1 6 9 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 3 2 4 7 9 9 0 0 8 8 7 7 1 1 1 1 7 7 4 4 1 1 1 1 . . 8 8 0 07 7 1 1 1 1 , , 2 0 0 8 9 5 4 4 , , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 69 7 1 7 1968 io......... / 1 3 3 8 8 , , 6 4 8 7 7 3 1 1 . . 0 0 3 3 0 0 1 1 7 7 , , 4 3 0 4 7 0 1 1 1 1 . . 3 3 1 1 8 8 4 5 6 29 2 7 70 0 1 1 2 2 . . 5 5 1 1 8 8 2 2 . . 3 3 4 41 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 7 2 2 5 2 1969 io......... / \4 4 5 5, , 7 9 5 1 5 4 1 1 . . 0 0 1 1 9 9 1 1 5 5 , ,9 9 9 7 8 5 1 1 1 1 , , 0 0 5 7 4 7 3 3 4 4 6 6 H5 5 5 5 5 5 2 2 . . 5 5 1 1 5 5 1 1 . .5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3 , , 0 93 6 9 4 5 5 2 2 5 5 6 6 5 6 9 3 1970—Dec. io f47,009 566 23.786 19.333 306 429 3.023 695 17,137 4,676 4,029 647 844 \46,960 566 23,775 19.333 295 429 3.023 695 17,169 4,604 4,039 565 846 1971—May.. 55,236 548 35,506 31,346 292 452 3.023 393 13,235 4,610 4,041 569 1,337 June.. 54,765 548 33,996 26,808 379 3.452 3.023 334 14.367 4,530 3,957 573 1,324 July.. . 56,603 544 36,259 26,868 632 5.452 3.023 284 13,937 4,473 3,894 579 1,390 Aug.. . 63,105 544 43,863 34.015 870 5,785 3.021 172 12,820 4,382 3,839 543 1,496 Sept... 63,943 544 45,331 35,080 1,015 6.054 3.021 161 12,435 4.160 3,645 515 1,473 Oct.. . 65,262 544 46,574 36.067 1,272 6.055 3.021 159 12,478 4,244 3,734 510 1,422 Nov... 65,746 544 48,339 37,271 1,747 6.055 3,096 170 11,194 4,214 3,733 481 1,455 /67,693 544 51,221 39,679 1.955 6,060 3,371 156 10,262 4,138 3,691 447 1,528 Dec. i2 \67,819 544 50,661 39.016 1.955 6.093 3.441 156 10,950 4,141 3,694 447 1,523 1972—Jan.... 69,077 544 51,531 39,586 2,260 6.094 3.441 150 11,166 4.161 3,771 390 1,675 Feb.... 70,032 52,847 40,699 2,448 6.094 3.441 165 11.368 4,203 3,811 392 1,614 Mar... 71,071 53,858 41,007 2,882 6.094 3.723 152 11,459 4,202 3,826 376 1,552 Apr.'\ 72,261 54,140 38,745 2,933 8.594 3.723 145 12,433 4,242 3,853 389 1,446 May7\ 72,167 53,630 37,872 3,283 8.594 3.723 158 12,835 4,284 3,889 395 1,418 1 Includes (a) liability on gold deposited by the IMF to mitigate the 10 Data on the two lines shown for this date differ because of changes impact on the U.S. gold stock of foreign purchases for gold subscriptions in reporting coverage. Figures on first line are comparable with those to the IMF under quota increases, and (b) U.S. Govt, obligations at cost shown for the preceding date; figures on second line are comparable with value and funds awaiting investment obtained from proceeds of sales of those shown for the following date. gold by the IMF to the United States to acquire income-earning assets. 11 Includes $17 million increase in dollar value of foreign currency 2 Includes BIS and European Fund. liabilities resulting from revaluation of the German mark in Oct. 1969. 3 Derived by applying reported transactions to benchmark data; 12 Data on the second line differ from those on first line because cer­ breakdown of transactions by type of holder estimated 1960-63. Includes tain accounts previously classified as “official institutions” are included securities issued by corporations and other agencies of the U.S. Govt, with “banks”; a number of reporting banks are included in the series for which are guaranteed by the United States. the first time; and U.S. Treasury securities payable in foreign currencies 4 Includes nonguaranteed securities of U.S. Federally-sponsored agen­ issued to official institutions of foreign countries have been increased in cies, beginning Feb. 1972. value to reflect market exchange rates as of Dec. 31, 1971. 5 Excludes notes issued to foreign official nonreserve agencies. 6 Includes short-term liabilities payable in dollars, and those payable Note.—Based on Treasury Dept, data and on data reported to the in foreign currencies to commercial banks abroad and to “other for­ Treasury Dept, by banks and brokers in the United States. Data correspond eigners”; marketable U.S. Govt, bonds and notes held by commercial generally to statistics following in this section, except for the exclusion banks abroad are included with those held by “other foreigners.” of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign 7 Principally the International Bank for Reconstruction and Develop­ official nonreserve agencies, the inclusion of investments by foreign ment and the Inter-American and Asian Development Banks. From Dec. official reserve agencies in nonguaranteed bonds of U.S. Federally- 1957 through Jan. 1972 includes difference between cost value and face sponsored agencies and minor rounding differences. Table excludes IMF value of securities in IMF gold investment account. “holdings of dollars,” and holdings of U.S. Treasury letters of credit and 8 Includes total foreign holdings of U.S. Govt, bonds and notes, for nonnegotiable, noninterest-bearing special U.S. notes held by other in­ which breakdown by type of holder is not available. ternational and regional organizations. 9 Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 7. U.S. LIQUID AND NONLIQUID 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 i 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. 18,194 10,321 1,310 1,582 4,428 250 303 1968 3 /17,407 8,070 1,867 1,865 5,043 259 303 \17,340 8,062 1,866 1,865 4,997 248 302 1969 3 . /4 15,975 4 7,074 1,624 1,888 4,552 546 291 \ 15,998 7,074 1,624 1,911 4,552 546 291 1970 3 /23,786 13,620 2,951 1,681 4,713 407 414 \23,775 13,615 2,951 1,681 4,708 407 413 1971- 35,506 23,320 3,154 1,290 6,799 286 657 33,996 21,277 3,132 1,338 7,245 271 733 July.............................................................................. 36,259 23,048 3,210 1,362 7,566 285 788 43,863 26,059 3,474 1,398 11,788 312 832 45,331 26,634 3,462 1,275 12,872 296 792 46,574 27,154 3,530 1,344 13,477 276 793 48,339 28,157 3,710 1,340 14,009 248 875 Dec. 5........................................................................... /51,221 30,020 3,980 1,414 14,522 415 870 150,661 30,144 3,980 1,429 13,824 415 869 1972-—Jan............................................................................... 51,531 30,280 3,974 1,401 14,435 426 1,015 Feb............................................................................... 52,847 31,217 3,981 1,346 14,798 449 1,056 53,858 31,620 4,052 1,339 15,196 457 1,194 Apr.?........................................................................... 54,140 31,390 4,181 1,508 15,249 477 1,335 May p.......................................................................... 53,630 30,957 4,316 1,492 14,981 458 1,426 1 Includes Bank for International Settlements and European Fund. to official institutions of foreign countries have been increased in value by 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ $110 million to reflect market exchange rates as of Dec. 31, 1971. pean dependencies in Latin America. 3 See note 10 to Table 6. Note.—Data represent short and long-term liabilities to the official 4 Includes $17 million increase in dollar value of foreign currency institutions of foreign countries, as reported by banks in the United States; liabilities resulting from revaluation of the German mark in Oct. 1969. foreign official holdings of marketable and 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, except for non­ accounts previously classified as “Official institutions” are included in marketable notes issued to foreign official nonreserve agencies; and in­ “Banks”; a number of reporting banks are included in the series for vestments by foreign official reserve agencies in nonguaranteed bonds of the first time; and U.S. Treasury liabilities payable in foreign currencies U.S. Federally-sponsored agencies. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners T a o n n d o r n e m gi o o n n e a t l a o ry rg i a n n te iz r a n t a i t o i n o s n 6 al Payable in dollars Deposits IMF End of period Total i Total Dem D an e d pos T it i s me 2 b T i c r l c U e l e a s r a t . t S e s i a f u s . i n r ­ 3 d y s O l t i h e a t o r h b m r e . t 4 r ­ P r f a e o c y n r i u e n c a r i i b g ­ e l n s e i m n g v o e e l n s d t t ­ 5 Total Demand Time2 b T i c r l c U e l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t o r h b m r e . t 4 r ­ 1969.............................. 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 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—May.................. 50,217 49,598 10,002 4,900 26,961 7,735 619 400 1,195 49 221 209 716 June.................. 46,713 46,046 10,869 4,968 22,763 7,446 667 400 1,181 60 232 164 724 July................... 46,346 45,693 10,274 4,955 23,439 7,025 653 400 1,247 79 224 170 774 Aug................... 52,416 51,766 9,294 5,026 30,198 7,248 650 400 1,342 61 202 269 810 Sept................... 52,878 52,481 10,605 5,054 29,772 7,050 397 400 1,318 92 212 146 867 Oct..................... 53,946 53,566 11,860 5,088 29,758 6,860 380 400 1,267 78 177 168 843 Nov................... 53,898 53,527 10,883 5,219 30,723 6,702 371 400 1,300 69 205 157 870 Dec.8................ / 1 5 5 5 5 , , 4 4 0 2 4 7 5 55 5 , , 0 0 1 3 8 5 1 6 0 , , 4 3 6 99 0 4 5 , , 2 2 1 09 5 3 3 3 3 , , 0 0 2 2 5 5 1 6 1 , , 3 3 8 3 5 5 3 3 8 9 6 2 4 4 0 0 0 0 1 1 , , 3 36 72 7 7 7 3 3 1 1 9 9 2 2 2 2 1 1 0 0 8 8 9 9 1 6 1972—Jan..................... 56,441 56,009 6,157 4,225 33,906 11,721 432 400 1,518 86 200 338 893 Feb.................... 57,335 56,862 6,019 4,329 34,494 12,020 473 1,457 85 164 295 912 Mar................... 57,687 57,171 5,991 4,438 34,933 11,809 516 1,395 88 191 275 841 Apr.27................ 56,308 55,814 6,460 4,497 32,328 12,529 494 1,277 87 195 177 819 May p............... 55,853 55,354 6,569 4,648 31,502 12,635 499 1,257 84 171 198 802 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. □ JULY 1972 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions 9 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a 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 b h 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 posi T ts ime2 T bi c c r l U e e a ls a r t . t e s S i a s u f . n i r 3 ­ d y s O l t h i e a t o r h b m r e . t ­ 4 r c P u f r a o r y r e i e a n n i b c g l i n e es 1969.............. 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2.159 202 19707........... / \4 4 0 0 , , 5 4 4 9 1 9 1 1 5 5 , , 7 7 2 1 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 3 8 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . .6 65 52 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 12 2 1 1 4 4 8 8 1971—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.. 45,132 10,809 4,736 22.199 6,722 667 26,808 1,463 2,251 20,097 2,577 420 July... 44,699 10,195 4,732 22,869 6,249 653 26,868 1,469 2,307 19,605 3,067 420 Aug... 50,674 9,233 4,823 29,529 6,438 650 34.015 1,264 2,371 26,674 3,285 421 Sept... 51,160 10,513 4,843 29,226 6,182 397 35,080 1,450 2,392 27,855 3,225 158 Oct... 52,279 11,781 4,911 29,190 6,016 380 36,067 1,231 2.465 28,982 3,231 158 Nov... 52,198 10,814 5,014 30,166 5,831 371 37,271 1,263 2.465 30,071 3,314 158 Dec.8 5 5 3 3 , , 6 6 3 6 2 0 1 6 0 , , 3 3 8 2 7 6 4 5 . , 0 0 2 1 3 7 3 3 2 2 . . 4 4 1 1 5 5 1 5 0 , , 4 4 8 4 9 3 3 3 8 9 6 2 3 3 9 9 , . 6 0 7 1 9 6 1 1, , 3 6 2 2 7 0 2 2 , , 0 5 3 0 6 4 3 3 2 2. . 3 31 11 1 3 3 , ,1 08 7 6 7 1 1 6 5 5 8 1972—Jan.... 54,523 6,071 4.024 33,168 10,827 432 39,586 1,185 2,027 33,049 3.159 166 Feb.. . 55,878 5,934 4,165 34.199 11,108 473 40,699 1,099 2,121 34,096 3,216 167 Mar... 56,292 5,903 4,247 34,658 10,968 516 41,007 1,128 2,150 34,552 3,010 167 Apr.P. 55,031 6,373 4,302 32,151 11,711 494 38,745 1,246 2,268 32,051 3,013 167 May p 54,596 6,485 4,475 31,304 11,833 499 37,872 1,224 2,387 31,213 2,881 167 To banksi1 To other foreigners To banks Payable in dollars and other foreigners: End of period payable in Total Dema D n e d posi T ts ime2 T b c i r c l U e e l a s r a . t t s S e i a u f s . n i r ­ d y s O l t i h e a t o r b h m r . e t 4 r ­ Dema D n e d posi T ts ime2 T b c i r l c U e e l a s r a . t t s S i e a f u s . n i r ­ d y s O l t i h e a t o r b h m r . e t 4 r ­ foreign 1969.............. 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 .......... J \2 2 1 1 , , 2 1 0 6 8 6 1 1 6 6 , , 9 9 1 4 7 9 1 1 2 2 , , 3 3 8 7 5 6 1 1 , , 3 3 2 5 6 4 1 1 4 4 3 3 , , 2 19 02 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 2 5 5 2 2 2 2 0 0 1971—May. . 17,276 13,036 6,573 590 1,518 4,354 4,041 1,737 1,885 131 287 199 June. . 18,324 14,120 7,586 649 2,016 3,869 3,957 1,760 1,835 86 276 247 July... 17,831 13,704 7,030 600 3,168 2,905 3,894 1,696 1,825 96 277 233 Aug... 16,659 12,590 6,284 665 2,769 2,872 3,839 1,684 1,787 87 280 230 Sept... 16,080 12,196 7,486 739 1,286 2,686 3,645 1,577 1,712 85 272 239 Oct.. . 16,212 12,256 8,845 786 120 2,504 3,734 1,705 1,660 89 281 222 Nov... 14,927 10,981 7,871 879 9 2,223 3,733 1,680 1,670 87 296 213 Dec.8 , / \ 1 14 3, , 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, , 9 1 9 3 5 0 3 3 , , 6 6 9 9 1 4 1 1 , , 6 6 6 6 0 0 1 1 , , 6 6 6 6 3 6 9 9 6 6 2 27 7 1 4 2 22 2 8 8 1972—Jan.... 14,937 10,899 3,183 330 7,382 3,771 1,703 1,667 116 284 267 Feb... 15,179 11,062 3,121 344 7,593 3,811 1,714 1,699 99 299 306 Mar... 15.285 11,110 3,093 354 7,658 3,826 1,682 1,742 102 299 349 Apr p . 16.286 12,106 3,372 352 8,379 3,852 1,756 1,682 96 318 328 May p 16,724 12,502 3,568 307 8,624 3,889 1,692 1,781 328 333 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”; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Foreign central banks and foreign central govts, and their agencies, time certificates of deposit. See also note 8(a). and Bank for International Settlements and European Fund. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of 10 Increase in valuation resulting from revaluation of Swiss franc. gold by the IMF to the United States to acquire income-earning assets. 11 Excludes central banks, which are included in “Official institutions.” Upon termination of investment, the same quantity of gold was reac­ quired by the IMF. Note.—“Short-term” refers to obligations payable on demand or having 6 Principally the International Bank for Reconstruction and Develop­ an original maturity of 1 year or less. For data on long-term liabilities ment and the Inter-American Development Bank. reported by banks, see Table 10. Data exclude the “holdings of dollars” Includes difference between cost value and face value of securities in of the International Monetary Fund; these obligations to the IMF consti­ IMF gold investment account. tute contingent liabilities, since they represent essentially the amount of 7 Data on the two lines shown for this date differ because of changes in dollars available for drawings from the IMF by other member countries. reporting coverage. Figures on the first line are comparable in coverage Data exclude also U.S. Treasury letters of credit and non-negotiable, nonwith those shown for the preceding date; figures on the second line are interest-bearing special U.S. notes held by the Inter-American Develop­ comparable with those shown for the following date. ment Bank and the International Development Association. 8 Data on second line differ from those on first line because (a) those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1970 1971 1972 Area and country Dec. Sept. Oct. Nov. Dec.1 Jan. Feb. Mar. Apr.* May* Europe: Austria...................................................... 185 244 255 246 254 254 261 252 257 276 283 Belgium-Luxembourg.............................. 597 901 875 736 701 701 735 779 895 866 864 Denmark.................................................. 189 173 171 168 168 168 177 179 191 218 203 Finland...................................................... 117 116 136 134 160 160 156 150 140 151 131 France....................................................... 2,267 3,302 2,842 2,858 3,150 3,150 3,234 3,311 3,103 3,043 3,027 Germany.................................................. 7,520 5,339 5,606 5,733 6,596 6,596 6,972 7,724 7,670 5,482 5,500 Greece....................................................... 184 179 184 175 170 170 167 164 147 163 159 Italy.......................................................... 1,330 2,286 2,231 1,953 1,888 1,888 1,704 1,697 1,576 1,631 1,576 Netherlands.............................................. 762 302 315 291 271 270 306 424 823 878 861 324 655 658 714 685 685 702 675 674 655 669 Portugal.................................................... 274 314 307 308 303 303 299 282 267 279 284 Spain......................................................... 198 185 202 185 203 203 187 177 183 219 206 Sweden...................................................... 503 729 729 757 791 792 803 871 964 981 1,010 Switzerland............................................... 1,948 3,268 3,306 3,265 3,248 3,249 3,256 3,099 2,935 2,942 2,708 Turkey...................................................... 46 27 48 67 68 68 36 34 42 36 39 United Kingdom..................................... 5,504 6,342 7,223 7,711 7,374 7,379 7,892 7,600 8,089 7,954 7,954 37 41 34 40 34 34 35 40 54 94 88 Other Western Europe2.......................... 594 1,446 1,409 1,401 1,369 1,391 1,367 1,438 1,416 1,391 1,383 U.S.S.R..................................................... 15 11 12 8 14 14 28 11 9 9 , 13 Other Eastern Europe............................. 54 61 56 67 53 53 54 46 58 56 58 Total.................................................. 22,648 25,921 26,599 26,816 27,503 27,530 28,372 28,955 29,494 27,325 27,019 Canada.......................................................... 4,056 3,472 3,803 3,590 3,441 3,441 3,593 3,574 3,486 3,722 4,146 Latin America: 539 419 415 437 441 441 435 420 541 507 465 346 358 360 383 342 342 376 423 466 559 593 Chile.......................................................... 266 247 211 189 191 191 180 146 137 132 134 Colombia.................................................. 247 178 181 179 188 188 185 176 163 184 190 Cuba.......................................................... 7 6 6 6 6 6 6 6 6 7 6 821 670 678 706 709 715 757 747 658 667 760 Panama.................................................... 147 127 150 150 154 154 158 156 156 155 185 Peru........................................................... 225 162 163 163 164 164 164 160 174 174 167 Uruguay.................................................... 118 117 116 108 108 108 108 111 124 118 122 735 806 915 874 963 963 870 843 740 851 873 Other Latin American republics............. 620 597 608 615 656 655 645 684 649 695 661 Bahamas and Bermuda........................... 745 661 346 376 657 656 313 278 307 444 440 Netherlands Antilles and Surinam......... 98 87 94 85 87 87 97 90 81 87 91 Other Latin America............................... 39 44 42 46 36 37 43 47 37 29 43 Total.................................................. 4,952 4,481 4,284 4,317 4,702 4,708 4,336 4,288 4,239 4,609 4,730 Asia: China Mainland....................................... 33 34 34 34 39 39 39 38 39 39 38 Hong Kong.............................................. 258 296 316 336 312 312 304 335 306 299 328 India.......................................................... 302 150 154 142 89 89 114 118 116 102 104 Indonesia.................................................. 73 57 69 65 63 63 54 71 90 89 87 Israel......................................................... 135 108 130 133 150 150 133 143 143 145 148 Japan........................................................ 5,150 13,793 14,014 13,919 14,294 14,295 14,179 14,950 14,808 14,902 14,017 Korea........................................................ 199 195 189 216 201 196 224 220 204 178 196 Philippines................................................ 285 322 294 304 304 304 269 264 265 291 344 Taiwan...................................................... 275 268 294 248 258 258 280 291 320 338 365 Thailand.................................................... 508 144 131 107 126 126 121 116 120 170 189 Other........................................................ 717 568 631 579 595 595 774 708 717 714 729 Total.................................................. 7,936 15,936 16,255 16,082 16,432 16,427 16,493 17,254 17,129 17,265 16,547 Africa: Congo (Kinshasa).................................... 14 25 16 i 12 12 12 12 13 22 14 16 Morocco................................................... 11 11 8 l 9 9 9 10 9 9 11 8 South Africa............................................. 83 81 74 74 78 78 53 73 70 79 70 U.A.R. (Egypt)......................................... 17 25 16 13 24 24 14 13 13 15 18 Other......................................................... 395 321 331 314 474 474 510 538 526 542 522 Total.................................................. 521 463 445 422 597 597 599 646 640 661 635 Other countries: Australia................................................... 389 854 854 919 916 916 1,087 1,121 1,257 1,405 1 ,482 All other.................................................... 39 34 39 51 42 42 42 41 47 43 39 Total.................................................. 428 888 893 970 957 957 1,129 1,162 1,304 1,448 1,520 Total foreign countries............................... 40,541 51,160 52,279 52,198 53,632 53,660 54,523 55,878 56,292 55,031 54,596 International and regional: International 3........................................... 975 1,301 1,265 1,269 1,332 1,327 1,470 995 947 809 803 Latin American regional......................... 131 280 267 287 298 298 306 316 302 330 330 Other regional4........................................ 114 137 135 144 142 142 142 146 146 138 124 Total.................................................. 1,220 1,718 1,667 ! 1,700 1,772 1,767 1,918 1,457 1,395 1,277 1,257 Grand total....................................... 41,761 52,878 53,946 53,898 55,404 55,427 56,441 57,335 57,687 56,308 55,853 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. □ JULY 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 * 1970 1971 1972 1970 1971 1972 Area or country Area or country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus....................................... 15 10 7 2 2 Jordan......................................... 30 14 3 2 2 Iceland...................................... 10 10 10 11 9 Kuwait........................................ 66 54 36 20 16 Ireland, Rep. of........................ 32 41 29 16 15 Laos............................................ 4 5 2 3 3 Lebanon..................................... 82 54 60 46 60 Other Latin American republics: Malaysia..................................... 48 22 29 23 25 Bolivia....................................... 76 69 59 55 53 Pakistan...................................... 34 38 27 33 58 Costa Rica................................ 43 41 43 62 70 Ryukyu Islands (incl. Okinawa) 26 18 39 29 (6) Dominican Republic................ 96 99 90 123 91 Saudi Arabia.............................. 166 106 41 79 80 Ecuador.................................... 72 79 72 57 62 Singapore................................... 25 57 43 35 45 El Salvador.............................. 79 75 80 78 83 Syria............................................ 6 7 3 4 6 Guatemala................................ 110 100 97 117 123 Vietnam...................................... 91 179 161 159 185 Haiti.......................................... 19 16 19 18 23 Honduras.................................. 29 34 44 42 50 Other Africa: Jamaica..................................... 17 19 19 19 32 Algeria........................................ 13 17 13 23 31 Nicaragua................................ 76 59 47 50 66 Ethiopia (incl. Eritrea).............. 33 19 12 11 29 Paraguay.................................. 17 16 15 17 17 Ghana......................................... 7 8 6 8 11 Trinidad & Tobago................. 11 10 14 10 15 Kenya......................................... 47 38 13 9 14 Liberia........................................ 41 22 21 23 25 Ot B he ri r t i L sh a t W in e A st m In er d i i c e a s : ................. 38 33 38 N L So i i b g u y e th a ri e . a . r . . n . . . . . . . R . . . . . . h . . . . o . . . . . d . . . . e . . . . s . . . i . . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 11 0 2 19 1 5 7 1 9 2 1 5 2 2 4 7 6 2 4 ( ( 6 6 2 ) ) Sudan.......................................... 1 1 1 1 (6) Other Asia: Tanzania..................................... 18 9 10 6 6 Afghanistan............................. 15 26 15 19 17 Tunisia........................................ 7 7 6 9 7 Burma...................................... 5 4 3 10 5 Uganda....................................... 7 8 5 3 (6) Cambodia................................ 1 2 2 5 2 Zambia....................................... 38 10 14 13 (6) Ceylon..................................... 4 4 4 4 6 Iran.......................................... 41 32 50 59 88 All other: Iraq.......................................... 6 11 7 10 (6) New Zealand............................. 18 25 22 23 27 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 until Feb. 1972, when investment was terminated. 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 Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ies 196 8 3,166 777 2,389 2,341 8 40 284 241 658 201 651 97 196 9 2,490 889 1,601 1,505 55 41 64 41 655 70 472 124 197 0 1,703 789 914 695 166 54 13 6 385 8 122 240 1971—May. 1,142 548 594 393 144 57 13 94 8 182 83 213 June. 1,129 557 572 334 189 48 13 87 8 130 80 252 July.. 1,024 501 524 284 189 51 13 88 8 83 91 239 Aug.. 895 480 415 172 190 53 13 66 8 12 92 223 Sept.r 885 480 405 161 189 55 15 62 8 12 90 217 Oct.r. 941 490 452 159 236 57 15 84 8 12 92 240 Nov.r 917 452 465 170 237 59 15 101 7 8 89 245 Dec.. 915 446 469 156 257 56 2 109 6 3 83 265 1972—Jan... 1,009 546 462 150 255 58 2 105 6 80 268 Feb.. 1,062 565 497 165 253 79 2 107 6 79 303 Mar.. 1,115 633 483 152 254 78 2 102 6 68 304 Apr.*. 1,138 659 479 145 254 80 2 103 5 63 305 May*, 1,188 695 494 158 253 83 2 116 5 61 309 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 o 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 May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p May** Europe: Belgium-Luxembourg..................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Switzerland...................................... 30 29 29 29 29 29 60 60 53 53 53 52 52 United Kingdom............................. 485 490 496 460 432 427 362 323 279 283 268 280 288 Other Western Europe................... 25 25 25 25 49 71 82 85 95 95 95 95 95 Eastern Europe............................... 6 6 6 6 5 5 5 5 5 5 5 5 5 Total......................................... 552 557 562 525 521 538 516 480 438 441 426 438 445 Canada................................................ 175 174 175 175 175 175 179 181 179 179 178 179 166 Latin America: Latin American republics............... 1 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........................................ 7 7 7 7 7 7 7 7 7 7 7 7 7 Asia: India................................................ 20 20 20 20 20 20 20 Japan................................................ 55 142 395 633 755 1,009 1,488 1,717 2,007 2,146 2,391 2,415 2,777 Other Asia................;..................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total........................................ 85 172 425 663 784 1,038 1,518 1,727 2,017 2,156 2,401 2,425 2,787 Africa................................................... 43 43 43 43 43 25 8 8 8 8 8 8 8 All other.............................................. * * * * * * * * * * * * * Total foreign countries....................... 861 952 1,211 1,413 1,530 1,782 2,228 2,402 2,650 2,791 3,020 3,057 3,413 International and regional: International................................... 115 115 115 126 126 126 126 126 126 126 126 136 136 Latin American regional................ 27 27 28 28 29 29 30 30 31 31 32 33 25 Total......................................... 142 142 143 154 155 155 156 156 157 157 158 168 161 Grand total.............................. 1,003 1,095 1,354 1,567 1,685 1,937 2,383 2,558 2,807 2,948 3,177 3,226 3,574 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Govt, securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total Bel­ Can­ Ger­ Italy 2 Korea Tai­ Thai­ Total Ger­ Italy Switz­ gium ada 1 many wan land many 3 erland 196 9 4 3,181 1,431 32 1,129 135 15 20 100 4 1,750 4 1,084 125 541 197 0 3,563 2.480 32 2.289 25 15 20 100 1,083 542 541 1971—June..................................... 6.592 5.480 32 2.289 3.000 25 15 20 100 1,111 542 569 July....................................... 8.592 7.480 32 2.289 5.000 25 15 20 100 1,111 542 569 Aug....................................... 8,924 7,479 32 2,289 5,000 23 15 20 100 1,444 542 902 Sept...................................... 9,193 7,479 32 2,289 5,000 23 15 20 100 1,714 542 1,172 Oct........................................ 9,195 7,479 32 2,289 5,000 23 15 20 100 1,716 542 1,174 Nov...................................... 9,271 7,554 32 2,365 5,000 22 15 20 100 1,716 542 1,174 Dec....................................... 5 9,657 7,829 32 2,640 5,000 22 15 20 100 5 1,827 612 1,215 1972—Jan........................................ 9,658 7.829 32 2.640 5.000 22 15 20 100 1,828 612 1,216 Feb....................................... 9,658 7.829 32 2.640 5.000 22 15 20 100 1,828 612 1,216 Mar...................................... 9,940 8,188 32 2.840 5,158 22 15 20 100 1.752 536 1,216 Apr....................................... 12,440 10,688 32 2.840 7,658 22 15 20 100 1.752 536 1,216 May..................................... 12.441 10,688 32 2.840 7.658 22 15 20 100 1.753 536 1.217 June..................................... 12.441 10,688 32 2.840 7.658 22 15 20 100 1.753 536 1.217 1 Includes bonds issued in 1964 to the Government of Canada in connec­ million equivalent were issued to a group of German commercial banks in tion with transactions under the Columbia River treaty. Amounts out­ June 1968. The dollar value of these notes was increased by $10 million in standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through Oct. 1969 and by $18 million as of Dec. 31, 1971. Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and 4 Includes an increase in dollar value of $84 million resulting from Oct. 1970 through Oct. 1971, $24 million. revaluation of the German mark in Oct. 1969. 2 Bonds issued to the Government of Italy in connection with mili­ 5 Includes $106 million increase in dollar value of foreign currency tary purchases in the United States. obligations revalued to reflect market exchange rates as of Dec. 31, 1971. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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. Sept. Oct. Nov. Dec.1 Jan. Feb. Mar. Apr.* May* Europe: Austria...................................................... 6 5 4 10 11 11 8 11 11 12 13 Belgium-Luxembourg............................. 50 60 53 63 57 57 71 102 78 66 72 Denmark.................................................. 40 47 50 48 49 49 50 54 55 52 54 66 114 113 116 135 135 137 139 138 137 133 113 149 133 182 267 268 311 344 342 273 295 Germany.................................................. 186 253 198 227 235 235 202 253 258 239 231 26 21 24 23 30 30 30 25 29 28 30 Italy.......................................................... 101 131 114 139 159 161 166 182 230 213 231 Netherlands.............................................. 61 82 70 90 105 105 92 102 117 105 101 54 68 66 66 67 67 72 71 73 72 65 Portugal.................................................... 11 12 10 12 12 12 14 14 14 13 24 52 62 58 68 70 70 83 88 105 135 149 Sweden...................................................... 97 116 113 120 118 118 125 125 130 128 132 Switzerland............................................... 100 145 137 143 145 145 147 181 164 138 192 9 20 4 3 3 3 4 8 3 5 3 United Kingdom..................................... 379 457 410 536 564 564 527 563 559 535 539 Yugoslavia................................................ 35 29 27 22 19 19 20 15 25 24 27 Other Western Europe............................ 13 15 16 11 12 12 13 16 17 17 19 U.S.S.R..................................................... 3 2 4 10 28 28 33 37 47 70 65 Other Eastern Europe............................. 45 39 33 33 37 37 44 48 51 42 43 Total.................................................. 1,449 1,827 1,639 1,923 2,123 2,125 2,148 2,376 2,445 2,303 2,416 Canada......................................................... 1,043 1,092 1,093 1,138 1,529 1,529 1,507 1,700 1,942 1,831 1,697 Latin America: A Br r a g z e i n l. t . i . n .. a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 2 2 5 6 4 3 1 3 2 7 4 3 1 2 8 7 4 3 1 1 0 6 4 3 3 0 4 5 4 30 4 5 0 4 3 5 1 2 0 4 3 7 0 2 6 4 3 8 1 2 6 5 3 1 0 1 4 5 3 4 16 4 C C h o i l l o e m ... b .. i . a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 0 8 0 4 3 1 5 4 3 3 3 1 5 38 3 3 1 7 4 8 2 3 1 8 39 0 1 3 3 8 9 0 3 1 7 2 5 6 3 1 9 2 0 2 3 1 7 06 6 3 1 7 0 9 8 3 9 9 4 4 Cuba......................................................... 13 13 13 13 13 13 13 13 13 13 13 Mexico...................................................... 909 901 808 839 936 936 1,004 977 1,006 1,095 1,037 Panama.................................................... 112 97 95 109 125 125 110 106 116 110 120 Peru.......................................................... 147 190 198 201 176 176 163 159 155 163 177 Uruguay.................................................... 63 31 32 39 41 41 41 41 41 38 38 Venezuela.................................................. 283 243 251 249 268 268 271 271 278 311 299 Other Latin American republics............. 342 319 326 337 374 374 366 364 352 376 360 Bahamas and Bermuda........................... 196 265 242 264 262 262 253 288 300 278 265 Netherlands Antilles and Surinam......... 19 17 21 20 18 18 20 23 16 15 16 Other Latin America............................... 22 27 32 23 25 26 23 21 20 27 24 Total.................................................. 3,239 3,347 3,253 3,340 3,495 3,502 3,527 3,554 3,577 3,727 3,697 Asia: China Mainland....................................... 2 1 1 1 1 1 1 1 2 2 2 Hong Kong.............................................. 39 78 77 71 68 70 61 81 90 99 107 India.......................................................... 13 20 22 17 21 21 22 20 17 18 16 Indonesia.................................................. 56 57 39 40 41 41 37 35 37 39 49 Israel......................................................... 120 125 103 132 129 129 124 106 98 84 81 Japan........................................................ 3,890 4,047 j 3,739 3,889 4,279 4,296 4,149 4,059 4,116 3,980 3,687 Korea........................................................ 178 217 286 329 348 348 330 394 403 399 377 Philippines................................................ 137 110 111 129 136 138 141 145 149 137 138 Taiwan...................................................... 95 113 105 94 109 109 123 154 156 172 180 Thailand................................................... 109 147 145 148 164 173 175 200 201 203 203 Other........................................................ 167 240 226 226 252 252 237 213 232 210 199 Total.................................................. 4,807 5,155 1 4,854 5,075 5,548 5,577 5,399 5,407 5,502 5,343 5,040 Africa: Congo (Kinshasa).................................... 4 21 ! 22 21 21 21 21 14 13 15 19 Morocco................................................... 6 5 5 4 4 4 4 4 3 4 4 South Africa............................................ 77 144 146 152 156 158 163 166 147 152 149 U.A.R. (Egypt)........................................ 13 12 11 9 10 10 11 13 11 10 11 Other........................................................ 79 106 101 90 99 99 91 101 104 120 129 Total.................................................. 180 287 285 277 291 292 290 299 278 301 311 Other countries: Australia................................................... 64 134 140 140 159 159 162 158 165 169 175 All other................................................... 16 23 22 24 27 27 31 29 35 34 31 Total.................................................. 80 158 162 164 186 186 193 188 200 203 206 Total foreign countries............................... 10,798 11,867 11,286 11,917 13,172 13,211 13,063 13,524 13,944 13,709 13,368 International and regional.......................... 3 3 3 4 3 3 3 5 4 3 7 Grand total....................................... 10,802 11,870 11,289 11,920 13,175 13,214 13,066 13,528 13,948 13,712 13,375 1 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

JULY 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) Payablein dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c o t i s u a a ­ l ns t B o a — nks1 Others C s t t o o i i a o n l u n l n g t e d ­ s c ­ ­ f A e o o m a i c r f g n c a n a f c e d o c e e p e c r r s t s ­ t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c F a o n u c o n v o a r r d i n t m e t , i c i e f l g s e i . s e ­ n , ­ Other paper 196 9 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971—May.. 11,606 10,974 3,374 156 1,929 1,290 2,349 4,173 1,078 632 446 78 109 June. 11,048 10,493 3,401 147 1,969 1,284 2,378 3,990 724 555 365 102 89 July.. 10,953 10,423 3,559 200 2,051 1,308 2,364 3,678 821 531 374 62 95 Aug.. 12,441 11,810 4,290 191 2,682 1,417 2,357 4,157 1,006 631 495 46 90 Sept.. 11,870 11,225 3,831 188 2,236 1,406 2,372 4,049 974 645 453 104 88 Oct... 11,289 10,668 3,516 135 2,056 1,325 2,307 3,864 982 620 406 111 103 Nov.. 11,920 11,276 4,024 167 2,431 1,426 2,306 3,897 1,050 644 457 89 99 Dec. 2. / \ 1 1 3 3 , , 1 2 7 1 5 4 1 1 2 2 , , 3 3 3 7 3 3 4 3 , , 5 9 0 7 8 5 2 2 2 2 1 2 2 2, , 6 0 2 8 1 7 1 1 , , 6 66 6 6 7 2 2, , 4 4 7 7 5 5 4 4 , , 2 2 4 7 3 0 1 1, , 6 1 5 0 2 7 8 84 4 1 2 5 5 4 48 9 1 1 1 19 9 1 17 7 4 4 1972—Jan... 13,066 12,322 3,882 206 2,061 1,614 2,473 4,251 1,716 744 501 139 104 Feb... 13,528 12,741 4,036 198 2,061 1,777 2,430 4,394 1,882 787 562 127 98 Mar.. 13,948 13,048 4,179 167 2,141 1,870 2,476 4,410 1,983 900 579 183 138 Apr.* 13,712 12,991 4,455 163 2,354 1,939 2,469 4.252 1,815 721 498 112 111 May* 13,375 12,614 4,608 170 2,516 1,923 2,540 3,793 1 ,673 760 530 112 118 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 r r ies Official Other term cies Total institu­ Banksi 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—May.... 3,252 2,940 523 251 2,167 279 32 107 498 277 1,269 208 548 343 June.... 3,203 2,898 475 241 2,182 278 26 112 519 266 1,234 225 514 333 July. ... 3,261 2,959 489 253 2,217 282 20 118 530 266 1,277 219 515 337 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 1,351 225 536 367 Oct........ 3,494 3,181 533 266 2,382 286 26 127 580 261 1,323 240 565 398 Nov. . .. 3,537 3,237 555 282 2,401 276 23 138 586 244 1,357 240 564 407 Dec....... 3,640 3,331 565 309 2,457 287 22 130 593 228 1,435 246 582 426 1972—Jan........ 3,668 3,362 565 307 2,490 281 24 132 581 256 1,436 241 594 427 Feb .... 3,717 3,414 595 319 2,500 279 24 124 592 254 1,453 241 624 430 Mar... . 3,838 3,526 644 328 2,554 285 26 131 605 233 1,496 278 651 444 Apr.*... 3,939 3,617 653 335 2,630 295 27 143 625 230 1,540 290 671 440 May*... 4,042 3,722 672 335 2,715 289 30 140 636 251 1,582 278 710 444 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. □ JULY 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 t 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 ha s e a s t e l e p s s u o r r ­ c P ha u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 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 14,573 13,156 1,416 1,687 2,571 -885 1,385 1,434 -49 1972—Jan.-MayP----- 1,016 5 1,011 1,063 -52 8,177 6,646 1,530 789 1,366 -577 1,140 957 184 1971—May................. -33 1 -33 -33 1,163 1,126 37 118 218 -100 94 120 -26 June................. 92 * 91 87 4 1,007 1,022 -15 139 239 — 100 98 130 — 32 July.................. 260 1 259 253 6 1,042 1,006 36 112 138 -27 102 144 -42 Aug.................. 212 11 202 238 -36 1,185 1,021 163 110 313 -203 124 102 22 Sept.................. 118 1 117 145 -28 1,045 796 249 131 138 -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 94 137 136 * 137 76 61 Dec................... 175 1 175 209 -34 1,673 1,207 465 185 175 10 195 154 41 1972—Jan................... 248 1 247 305 -58 1,580 1,277 302 126 409 -283 191 170 21 Feb................... 141 141 138 3 1,611 1,312 299 159 241 -82 200 199 1 Mar.................. 230 1 229 245 -16 2,025 1,527 498 181 248 -67 290 269 20 Apr.2*............... 48 11 38 25 13 1,685 1,420 265 180 157 23 215 181 34 May p............... 348 -8 356 350 6 1,277 1,111 166 143 310 -167 245 138 107 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O un th tr e i r es r I e n g t i l o . n & al 1970..................... 626 58 195 128 110 -33 24 482 -9 47 85 22 1971..................... 733 87 131 219 168 -49 71 627 -92 38 108 54 1972—Jan.-May23 732 77 -15 151 237 198 I 649 -97 15 134 32 1971—May......... 10 9 * 13 10 -6 -3 24 -17 -4 1 7 June......... -11 3 3 12 9 -19 -24 -18 -11 -4 7 14 July.......... -3 12 -6 15 -10 6 -13 4 -24 2 15 -2 Aug........... 78 10 7 38 24 -33 -7 38 11 12 16 • Sept.......... 155 24 33 9 38 11 17 132 10 7 4 2 Oct,.......... -47 8 -4 2 4 -30 * -21 -21 -17 5 7 Nov.......... * 9 -9 22 1 -1 20 42 -14 -38 6 4 Dec........... 483 66 51 76 102 68 32 394 2 49 39 -2 1972—Jan............ 269 36 29 60 98 2 -7 218 1 11 27 12 Feb........... 153 13 4 37 55 36 5 149 -32 10 20 6 Mar.......... 177 19 -12 27 56 95 * 185 -26 3 8 7 Apr.**........ 78 -9 -22 19 1 46 * 35 -23 13 49 6 May**....... 55 19 -14 8 27 20 2 62 -17 -22 30 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1970..................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971..................... 684 15 35 -1 197 327 39 612 37 19 -2 * -21 39 1972—Jan.-May* 798 85 4 2 -9 191 44 316 28 14 285 * * 155 1971—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 85 -3 -1 -1 26 49 -3 67 * 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 Dec........... -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 Mar........... 321 5 3 * 29 54 15 106 -3 3 192 * * 23 Apr.*........ 187 38 3 2 -1 17 -13 45 -1 * 27 * 115 May*........ 111 40 -3 * -3 -2 15 48 11 26 11 * * 14 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) 1970................ —915 —254 -662 50 — 586 -11 -129 -6 20 1969—June........................... 566 397 1971................ —933 -310 -623 34 —285 -53 -350 -1 32 Sept............................ 467 297 1972— 434 278 Jan.-May*.. -393 -231 -162 277 -306 -34 -107 -13 20 1970—Mar........................... 368 220 1971—May... -126 4 -130 -4 -62 -13 -52 * 2 June........................... 334 182 June. .. -132 13 -145 -3 -93 5 -72 6 14 Sept............................ 291 203 July.... -68 7 -75 -16 -6 -2 -53 -1 2 349 281 Aug.. .. -180 -152 -29 23 -23 -16 -14 1 1 Sept.... 15 8 6 1 -7 3 8 *i 1 1971—Mar............................ 511 314 Oct....... -43 32 -75 22 -111 -13 24 1I 2 June........................... 419 300 Nov.... 61 11 51 37 32 -28 6 * 3 Sept............................ 333 320 Dec... . 51 2 49 23 53 -10 -15 -4 2 311 314 1972—Jan -262 -242 -20 11 -24 -16 5 * 3 1972—Mar.*......................... 325 379 Feb___ -81 -12 -68 32 -73 1 -26 -2 * Mar.... -46 14 -60 58 -74 -2 -47 — 5 |j 10 Apr.*. . 57 6 50 83 8 -31 -17 3 1 5 Note.—Data represent the money credit balances and May*. . -60 3 -63 94 -143 14 -21 -9 11 2 b m r o o n k e e y rs d e a b n i d t b d a e l a a l n e c rs e s i n a p t p h e e a r U in n g it e o d n t S h t e a t b e o s, o k in s o ac f c re o p u o n r t t s i n o g f foreieners with them, and in their accounts carried bv foreigners. Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars amounted to Note.—Components may not add to totals due to rounding. $7,441 million and $7,528 million, respectively, on Feb. 28 and $7,959 For a given month, total assets may not equal total liabilities because million and $8,089 million, respectively, on Mar. 31, 1972. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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 1970—Dec........... 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1,403 1971—Mar........... 48,284 6,769 4,055 2,714 38,643 7,838 17,300 744 12,762 2,871 Apr........... 49,444 5,047 2,511 2,536 39,927 8,468 17,401 747 13,311 4,471 May......... 50,574 4,398 2,191 2,207 41,576 8,317 18,124 798 14,337 4,600 June.......... 52,732 4,853 2,661 2,191 43,292 8,924 19,062 851 14,456 4,587 July........... 52,739 4,833 2,619 2,214 43,088 8,788 18,474 1,006 14,820 4,817 Aug........... 54,873 4,092 2,036 2,056 46,393 9,126 20,773 1,129 15,365 4,388 Sept........... 56,967 5,047 2,970 2,077 48,963 9,706 22,305 1,164 15,788 2,957 Oct............ 57,496 5,844 3,649 2,195 49,716 10,154 21,923 1,198 16,441 1,937 Nov........... 58,684 5,662 3,341 2,320 51,095 10,416 22,685 1,195 16,799 1,928 Dec........... 61,474 4,800 2,313 2,487 54,879 11,224 24,630 1,167 17,858 1,795 1972—Jan............ 60,026 4,333 1,987 2,345 53,760 10,445 24,513 1,211 17,591 1,933 Feb.r........ 61,862 4,116 1,742 2,374 55,845 11,013 25,618 1,118 18,095 1,901 Mar........... 65,053 4,565 2,085 2,480 58,662 10,635 28,070 1,176 18,781 1,826 1970—Dec........... 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Mar........... 34,980 6,560 4,043 2,516 26,430 5,070 13,322 453 7,585 1,990 Apr........... 35,742 4,856 2,501 2,356 27,361 5,654 13,223 530 7,954 3,525 May.......... 36,070 4,193 2,172 2,020 28,296 5,354 13,839 554 8,549 3,581 June.......... 37,648 4,648 2,651 1,998 29,438 5,609 14,645 587 8,598 3,562 July........... 37,117 4,613 2,610 2,003 28,718 5,648 13,799 714 8,557 3,787 Aug........... 37,846 3,875 2,025 1,851 30,703 5,791 15,466 866 8,581 3,268 Sept........... 38,712 4,807 2,950 1,858 32,145 6,029 16,436 875 8,805 1,759 Oct............ 38,570 5,600 3,633 1,968 32,617 6,094 16,302 907 9,013 653 Nov........... 39,184 5,380 3,319 2,061 33,147 6,436 16,715 910 9,086 658 Dec........... 40,236 4,542 2,306 2,236 35,117 6,659 18,040 864 9,554 577 1972—Jan............ 38.928 4.072 1,975 2.097 34.228 6.427 17,759 822 9.220 629 Feb.r........ 39,920 3,864 1,732 2,132 35,374 6,637 18,514 821 9; 402 682 Mar........... 43,002 4,300 2,062 2,238 38,074 6,727 20,608 845 9,891 631 IN UNITED KINGDOM Total, all currencies............................. 1970—Dec........... 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 6,235 601 1971—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 Dec........... 34,552 2,694 1,230 1,464 30,996 5,690 16,211 476 8,619 862 1972—Jan............ 33,877 2,514 1,228 1,287 30,447 5,243 16,411 469 8,325 916 Feb........... 34,712 2,247 1,044 1,204 31,617 5,584 17,097 454 8,482 848 Mar........... 37,104 2,503 1,312 1,190 33,810 5,380 19,177 491 8,762 790 ___^ > ^ .. s^_____✓ Payable in U.S. dollars........................ 1970—Dec........... 22,574 6,596 15,655 2,223 Q 420 4,012 323 1971—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 Dec........... 24,428 2,585 21,493 4,135 12,762 4,596 350 1972—Jan............ 23,666 2,415 20,857 3,885 12,631 4,341 394 Feb........... 23,816 2,153 21,254 3,960 13,058 4,237 409 Mar........... 26,097 2,401 23,324 3,926 14,865 4,534 372 IN THE BAHAMAS v .. .... x Total all currencies............................. 1970— Dec........... 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—Mar........... 4,775 879 162 718 3,625 2,009 1,616 271 Apr........... 5,270 935 169 766 3,666 1 ,933 1,733 669 May.......... 5,379 773 113 660 3,913 2,062 1,850 694 June.......... 5,760 839 203 635 4,238 2,338 1,900 683 July.......... 6,047 890 267 623 4,428 2,357 2,071 729 Aug........... 5,970 728 139 589 4,618 2,604 2,014 624 Sept........... 6,208 835 219 615 5,039 2,934 2,105 334 Oct............ 6,586 887 246 641 5,605 3,019 2,585 95 Nov........... 7,319 1,037 227 810 6,167 3,228 2,940 115 Dec........... 8,493 1,282 505 778 7,119 3,798 3,320 92 1972—Jan............ 7,973 955 159 796 6,925 3,679 3,247 94 Feb.r........ 18,380 994 107 888 7,276 3,819 3,457 110 Mar........... 18,836 1,178 126 1,052 7,551 4,038 3,513 108 For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of banks insti­ for­ parent tutions eigners bank IN ALL FOREIGN COUNTRIES 47 354 2 575 716 1 859 42 812 6,426 24,829 4 180 7,377 1,967 ...........1970—Dec. ..........Total all currencies 48,285 2,640 559 2,080 44,069 7,507 24,175 5,006 7,381 1,576 ...........1971—Mar. 49,444 2,529 547 1,982 45,066 8,078 24,118 5,554 7,316 1,849 50,574 2,848 726 2,122 45,891 8,134 25,039 5,216 7,502 1,835 52,732 2,565 528 2,038 48,342 8,553 26,729 5,339 7,721 1,824 52,736 3,061 477 2,584 47,934 8,346 26,544 5,373 7,670 1,741 .......................July 54,873 3,349 763 2,586 49,622 8,792 27,178 5,450 8,203 1,902 .......................Aug. 56,969 3,015 501 2,514 51,940 9,516 28,497 5,476 8,451 2,014 57,496 2,915 474 2,441 52,540 9,802 28,520 5,581 8,638 2,041 58,684 2,892 475 2,417 53,673 10,038 29,354 5,749 8,531 2,119 61,475 3,114 669 2,445 56,242 10,818 31,147 5,491 8,786 2,119 60,020 2,938 658 2,280 55,048 10,324 29,763 5,869 9,091 2,034 ...........1972—Jan. 61,862 3,170 779 2,391 56,634 10,645 30,707 6,180 9,102 2,058 .......................Feb. r 65,053 3,047 636 2,411 59,933 10,363 33,712 6,312 9,546 2,073 36,086 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 ...........1970—Dec. 36,233 2,413 501 1,912 32,891 5,052 18,722 4,323 4,794 930...........1971—Mar. 36,998 2,284 491 1,794 33,717 5,644 18,717 4,743 4,612 997 37,316 2,582 643 1,939 33,638 5,469 19,120 4,419 4,630 1,096 39,142 2,293 432 1,861 35,782 5,793 20,610 4,604 4,775 1,068 38,322 2,762 393 2,368 34,571 5,433 20,192 4,416 4,530 990 .......................July 39,494 2,939 643 2,296 35,406 5,735 20,340 4,375 4,956 1,149 40,208 2,638 381 2,257 36,375 6,234 20,981 4,408 4,752 1,195 40,742 2,549 352 2,198 36,331 6,154 20,797 4,503 4,878 1,161 40,949 2,546 375 2,170 37,176 6,479 21,124 4,662 4,910 1,227 42,090 2,674 511 2,163 38,139 6,692 22,069 4,426 4,953 1,276 41,379 2,556 546 2,010 37,642 6,710 20,874 4,753 5,306 1,182 ...........1972—Jan. 42,562 2,743 644 2,099 38,607 6,853 21,742 4,768 5,244 1,212 .......................Feb. r 45,612 2,643 509 2,135 41,744 6,945 24,425 4,947 5,428 1,225 IN UNITED KINGDOM 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 ...........1970—Dec 28,711 1,533 103 1,430 26,597 2,586 15,942 3,615 4,454 581 ...........1971—Mar. 29,082 1,492 186 1,306 26,989 2,699 15,698 4,067 4,525 601 29,952 1,591 301 1,291 27,667 2,843 16,387 3,873 4,565 694 31,276 1,565 147 1,419 29,021 2,931 17,578 3,967 4,545 690 30,710 1,773 126 1,647 28,264 2,762 16,843 4,034 4,625 674.......................July 32,119 2,000 300 1,700 29,429 3,069 17,310 4,268 4,782 691 33,280 1,658 117 1,541 30,877 3,344 18,431 4,318 4,785 745 33,408 1,628 104 1,523 31,009 3,250 18,535 4,447 4,777 772 33,945 1,618 77 1,541 31,513 3,106 18,901 4,622 4,885 814 34,552 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 33,877 1,626 132 1,494 31,473 3,296 18,076 4,680 5,421 778 ...........1972—Jan. 34,712 1 ,582 114 1,468 32,371 3,417 18,705 4,788 5,461 759 .......................Feb. 37,104 1,525 78 1,447 34,787 3,209 20,989 4,996 5,594 792 23,005 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 ...........1970—Dec ..........Payable in U.S. dollars 22,654 1,411 90 1,321 20,954 1,759 12,754 3,207 3,233 289 ...........1971—Mar. 22,907 1,358 173 1,185 21,249 1,900 12,640 3,588 3,121 299 23,198 1,455 266 1,189 21,378 1,902 12,967 3,368 3,142 365 24,474 1,432 96 1,336 22,682 2,053 14,071 3,493 3,065 361 23,400 1,610 89 1,521 21,428 1,819 13,198 3,382 3,029 361 .......................July 24,263 1,790 238 1,552 22,095 1,900 13,445 3,501 3,249 377 24,742 1,460 59 1,401 22,882 2,126 14,160 3,555 3,041 400 24,727 1,435 49 1,387 22,875 2,095 14,079 3,660 3,041 417 25,044 1,452 36 1,416 23,166 2,028 14,185 3,813 3,140 426 24,845 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 24,445 1,437 76 1,360 *•22,608 2,157 13,249 3,851 3,351 400...........1972—Jan. 24,765 1,377 50 1,327 22,985 2,081 13,670 3,824 3,411 403 .......................Feb. 26,971 1,327 19 1,308 25,220 2,093 15,694 4,041 3,392 424 __v ...........- IN THE BAHAMAS 4,815 542 4,183 488 2,872 823 90 ...........1970—Dec ..........Total, all currencies 4,776 534 4,171 681 2,575 915 72...........1971—Mar. 5,270 503 4,681 1,087 2,706 888 87 5,380 646 4,633 991 2,744 898 101 5,761 446 5,221 1,013 3,095 1,113 93 6,045 753 5,197 1,126 3,138 933 95.......................July 5,970 696 5,155 1,005 3,029 1,121 119 6,211 719 5,359 931 3,381 1,048 133 6,588 628 5,805 1,083 3,551 1,170 155 7,320 622 6,537 1,446 3,947 1,144 161 8,495 750 7,557 1,649 4,784 1,124 188 7,973 625 7,197 1,563 4,427 1,207 151...........1972—Jan. i 8,380 858 7,380 1,526 4,676 1,178 142 1 8,836 833 7,876 1,429 5,142 1,305 128 For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JULY 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 1972 Wednesday ties1 Wednesday ties1 plus Wednesday ties1 Maturity of sec.2 liability Feb. Mar. Apr. 1967 1971 1972—Cont. 1.70 1.50 1.91 J S M D u e e n a p c r e t . . . 2 2 2 2 8 9 7 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 3 3 , , , , 2 0 4 1 4 5 1 6 1 9 2 6 J F M A M a e p n a a b r . y r . . . 2 2 2 2 3 4 7 8 6 1 . . . . . 5 6 2 2 1 , , , , , 6 5 8 1 5 6 3 5 5 79 6 6 8 8 7 6 4 5 4, , , , , 5 6 5 3 1 6 8 3 5 6 7 6 6 8 6 Feb. 1 1 1 1 , , , , 3 0 0 0 0 6 0 6 1 2 6 8 C O a t i m d h n l a e l o . t r . e n . f l . : o t i . h . a l . l b . s o . i . w l .. i . t i a . i n . e f . g . s t . e , . . r m . c .. a . a . l r t . e . e u . n . p r . d i . o n . a . r g . r t . . 1.72 1.75 2.10 June 30. 1,492 4,500 9.15 11.27 9.00 J S M J S D D M u u e e e e n n a a p p c c r r e e t t . . . . . . 2 2 2 2 2 2 3 3 1 5 7 6 5 6 4 1 . . . . . . . ( . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . / 1 . . . 1 . . . . 1 . . . . . . . 9 9 . . . . . . . / . . . . . . . 6 6 6 . . . . . . . . . . . . . . 8 9 9 . . . . . . . . . . . . . . ) 1 1 1 4 6 7 6 9 3 4 2 , , , , , , , , 6 0 9 1 2 2 8 3 2 3 2 0 0 6 0 4 1 9 9 5 2 0 4 9 J S A O N D u e u c o e l p y t c g v . t . . . . 2 2 2 2 2 2 2 1 1 1 5 8 7 3 9 7 4 2 8 9 0 1 5 . . . . . . . . . . . . . 2 2 2 2 2 1 1 3 3 1 1 1 , , , , , , , , , , , , 4 9 4 4 4 9 4 3 3 8 3 5 9 7 1 6 9 0 6 0 5 4 6 8 4 0 5 5 5 7 7 4 8 2 8 7 6 4 9 4 4 3 , , , 6 0 5 4 7 7 5 5 8 M M A a p a y r r . . 1 2 1 1 1 3 0 7 5 6 2 9 . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 , , , , , , , , , , , 1 2 0 3 5 2 1 3 2 3 9 5 6 6 7 4 3 5 3 7 2 4 5 4 3 4 9 6 2 0 2 4 3 4 0 4 Mat 1 1 1 u 2 4 5 6 9 3 0 1 2 r t n r t t t t t t i h h h h h d h h t d i . . . . . . . . e . . . . . . . . . . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . o . . . . . . . . . . . . . . . . . . f . . . . . . . . . . . . . . . . . . m . . . . . . . . . . . . . . . . . . . . . . . . . . . o . . . . . . . . . . . . . . . . . . r . . . . . . . . . . . . . . . . . . e . . . . . . . . . . . . . . . . . . . . . t . . . . . . . . . . . . . . . h . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . n . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . . . . . 4 5 2 2 1 . . . . . . . . . . . . 6 8 4 4 7 3 3 9 3 3 3 4 7 9 3 3 3 8 0 4 2 8 4 4 4 2 5 1 1 1 . . . . . . . . . . . . 7 8 5 3 4 9 4 4 3 3 0 7 9 1 3 5 6 5 3 4 6 6 7 7 2 2 2 5 5 1 . . . . . . . . . . . . 0 1 1 0 5 9 3 5 1 3 3 4 1 5 1 8 8 6 6 2 3 0 6 7 24. 1,599 32.83 34.81 34.05 1970 1972 31r 1,465 Mar. 25............... 11,885 Jan. 5. 1,208 June 7. . 1,192 dep N o o s t it e s . — an I d n c d lu ir d e e c s t b i o n r t r e o re w s i t n -b g e s a o ri f n a g l l U br . a S n . ch d e o s ll a in r June 24.............. 12,172 12. 1,721 14. . 1,525 the Bahamas and of all other foreign branches Sept. 30.............. 9,663 19. 1,568 21. . 1,740 for which such deposits and direct borrowings Dec. 30.............. 7,676 26. 1,419 28. . 1,435 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 were 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 ini custody End of End of United period Deposits period Total Short­ Short­ King­ Canada U se .S cu . r G it o ie v s t 1 , Ear g m o a ld rked Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom 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 1971—June.. 199 26,544 13,509 1Q£Q 2 / \ 1 1 , , 3 4 1 9 9 1 1,0 9 6 5 2 2 1 16 1 1 6 1 18 7 3 4 7 8 6 6 6 6 6 1 3 0 4 5 6 3 9 4 July... 162 28,574 13,559 1970................... 1,141 697 150 173 121 372 436 Aug... 122 35,914 13,821 Sept... 166 36,921 13,819 1971—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 June........ 1,470 932 176 240 122 634 365 Dec... 294 43,195 13,815 July........ 1,478 949 189 238 101 579 395 Aug......... 1,661 1,085 201 246 128 639 480 1972—Jan.... 147 44,359 13,815 Sept......... 1,579 989 198 285 107 519 489 Feb. .. 137 45,699 14,359 Oct.......... 1,604 1,015 206 277 106 540 531 Mar... 191 46,837 14,321 Nov......... 1,622 1,029 205 246 143 612 517 Apr.. . 228 46,836 14,315 Dec.r___ 1,630 1,057 219 234 120 575 570 May.. 157 46,453 15,542 June.. 257 47,176 15,542 1972—Jan.r___ 1,729 1,071 252 244 163 604 665 Feb.'.... 1,813 1 ,018 332 238 225 548 838 Mar.r__ 1,949 1,194 281 274 200 642 840 1 Marketable U.S. Treasury bills, certificates of in­ Apr......... 1,882 1,241 224 252 164 659 733 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

JULY 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 Dec. Mar. June Sept. Dec. Dec. Mar. June Sept. Dec. Europe: Austria.................................. 8 11 12 10 5 10 10 10 13 14 Belgium-Luxembourg.......... 46 47 58 60 66 47 49 61 59 62 Denmark............................... 2 9 3 3 2 17 16 17 14 15 Finland.................................. 2 2 2 2 2 11 8 15 16 18 France................................... 126 112 117 139 142 150 159 181 182 208 Germany, Fed, Rep. of........ 139 122 105 125 117 209 191 228 209 192 Greece................................... 4 4 5 6 4 28 34 27 40 35 Italy....................................... 77 71 69 74 108 163 175 172 176 191 Netherlands........................... 128 115 102 85 70 62 65 74 66 69 Norway................................. 5 4 5 5 5 16 15 14 17 13 Portugal................................. 13 14 18 18 16 15 13 20 13 16 Spain..................................... 24 27 35 37 66 81 93 91 89 125 Sweden.................................. 34 28 31 28 17 40 53 40 37 40 Switzerland........................... 159 122 85 100 91 47 38 62 95 63 Turkey................................... 4 3 5 3 2 8 17 9 9 9 United Kingdom.................. 860 735 659 686 768 698 1,020 961 846 957 Yugoslavia............................ 4 4 4 4 3 17 16 16 21 13 Other Western Europe........ 11 1 2 2 2 9 12 11 14 13 Eastern Europe..................... 5 4 3 3 4 24 16 16 16 28 Total.............................. 1,649 1,437 1,319 1,391 1,489 1,652 1,997 2,027 1,932 2,080 Canada...................................... 221 206 193 183 | 181 769 721 706 800 909 Latin America: ; Argentina.............................. 11 14 17 19 18 61 65 66 66 55 Brazil..................................... 19 15 17 13 21 120 105 117 127 150 Chile...................................... 11 13 8 14 | 14 48 40 44 48 47 C Co u l b o a m ... b .. i . a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 * 6 * 6 * 6 * | i 7 * 37 1 36 1 31 1 40 1 46 1 Mexico................................... 22 20 20 23 ! 22 156 143 151 146 151 Panama................................. 5 6 6 6 5 18 21 17 20 21 Peru....................................... 4 4 4 5 7 36 35 36 34 34 Uruguay................................ 4 4 4 4 2 6 7 6 6 5 Venezuela.............................. 18 17 17 14 i 16 67 69 69 73 81 Other L.A. republics............ 37 29 29 33 33 99 95 96 105 101 Bahamas and Bermuda........ 163 173 167 232 ! 275 188 222 273 362 366 Neth. Antilles and Surinam. 23 5 7 4 1 3 9 8 9 9 9 Other Latin America............ 6 5 6 5 29 21 25 21 24 8 i Total.............................. 329 311 307 381 429 874 866 940 1,057 1,090 1 Asia: | Hong Kong........................... 9 8 8 9 ! 12 17 19 25 26 24 38 25 22 26 27 34 39 39 36 37 9 5 6 11 10 21 20 21 24 29 Israel...................................... 24 28 19 21 10 23 24 25 21 23 Japan..................................... 144 165 158 178 177 323 349 372 397 411 Korea..................................... 1 11 10 10 13 42 50 54 52 68 Philippines............................. 7 7 7 6 7 30 31 56 43 49 Taiwan................................... 9 10 11 17 18 33 32 38 43 41 Thailand................................ 4 4 3 4 i 3 11 12 13 16 15 Other Asia............................. 50 59 122 140 , 143 145 153 158 201 147 Total.............................. 296 322 366 421 | 420 678 729 800 859 844 Africa: ! Congo (Kinshasa)................ 2 2 2 1 1 3 5 6 4 6 South Africa......................... 34 31 45 45 31 30 32 38 39 41 U.A.R. (Egypt)..................... 1 2 1 1 ! 1 9 10 9 9 9 Other Africa......................... 41 19 33 32 j 35 50 53 67 70 100 Total.............................. 78 54 82 78 1 68 92 100 120 122 156 Other countries: j Australia............................... 75 81 81 68 i 46 80 86 82 85 83 All other........................... 7 8 8 9 1 9 15 13 17 24 19 Total.............................. 82 89 89 77 55 94 99 99 109 102 1I International and regional.... * * * i | * 1 3 4 4 4 2,655 2,418 2,357 2,532 | 2,643 4,160 4,515 4,696 4,882 5,185 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. □ JULY 1972 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NON BANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n l a a b r l s e cu P f r o a r r y e i e n a n i b g c l i n e es Total P d a o y i l n a la b r l s e b D a e n p k o s s i a ts b r w o i a t d h in reporter’s Other name 1967—Sept...................... 1,353 1,029 324 2,555 2,116 192 246 1 f 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 / 1,786 1,399 387 3,710 3,124 221 365 \ 2,124 1,654 471 4,159 3,532 244 383 1970—Mar...................... 2,234 1,724 510 4,275 3,738 219 318 June..................... 2,387 1,843 543 4,457 3,868 234 355 Sept...................... 2,512 1,956 557 4,361 3,756 301 305 Dec...................... 2,655 2,159 496 4,160 3,579 234 348 1971—Mar...................... 2,418 1,957 462 4,515 3,909 232 374 June..................... 2,357 1,919 438 4,696 4,045 303 348 Sept...................... 2,532 2,091 442 4,882 4,174 383 326 Dec....................... 2,643 2,180 463 5,185 4,535 318 333 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th l e l r 1967—Sept........................ 411 1,452 40 212 309 212 84 283 109 103 87 13 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 S 1,725 2,215 152 433 496 172 73 388 141 249 69 42 ........................ X 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970—Mar........................ 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June....................... 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept........................ 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec........................ 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar........................ 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June....................... 3,172 2,994 151 692 677 180 64 629 138 313 75 76 Sept........................ 2,922 3,025 135 675 753 179 63 598 133 323 91 75 Dec........................ 3,028 3,137 128 715 756 174 60 656 141 327 96 85 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

JULY 1972 □ MONEY RATES A 93 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Ar ( g p e e n so ti ) na A (d u o st l r la a r l ) ia (s A ch u i s ll t i r n ia g) B (f e r l a g n iu c m ) C (d a o n ll a a d r a ) C (ru ey p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an ka d ) F (f r r a a n n c c e ) .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 4 19.302 126.589 111.36 3.8659 2.0139 2 95.802 16.774 13.334 23.742 18.087 22.502 113.61 4.0009 2.0598 99.021 16.800 13.508 23.758 18.148 1971—May.................................................. 24.156 112.42 3 3.9676 2.0164 99.138 16.792 13.334 23.735 18.094 June.................................................. 23.602 112.43 4.0021 2.0109 97.913 16.792 13.342 23.735 18.092 July.................................................. 22.642 112.42 4.0040 2.0133 97.912 16.792 13.334 23.735 18.136 Aug................................................... 20.757 113.17 4.0264 2.0351 98.670 16.792 13.435 23.735 18.130 Sept.................................................. 19.919 114.78 4.0844 2.0921 98.717 16.839 13.672 23.830 18.112 Oct.................................................... 19.923 115.76 4.1261 2.1353 99.537 16.820 13.768 23.800 18.073 Nov.................................................. 19.925 115.89 4.1280 2.1572 99.607 16.806 13.773 23.773 18.096 Dec................................................... 19.928 117.48 4.2041 2.1986 100.067 16.797 13.994 23.852 18.549 1972—Jan.................................................... 19.960 119.10 4.2516 2.2514 99.411 16.653 14.219 24.077 19.329 Feb.................................................... 119.960 119.10 4.3108 2.2810 99.528 16.650 14.306 24.099 19.650 Mar................................................... 119.10 4.3342 2.2757 100.152 16.650 14.361 24.121 19.835 Apr................................................... 119.10 4.3236 2.2672 100.430 16.650 14.301 24.088 19.852 May.................................................. 119.10 4.3277 2.2737 101.120 16.650 14.332 24.084 19.944 June.................................................. 119.10 4.3421 2.2758 102.092 16.772 14.336 24.136 19.937 Period ( G D m e e r u a m t r s k a c ) n h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u l i a e l n t d h d e ­ r s ) 196 8 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 196 9 5 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 197 0 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 197 1 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 1971—May, 6 28.144 13.330 241.87 .16059 .27979 32.642 8.0056 628.135 June, 28.474 13.346 241.87 .16009 .27979 32.720 8.0056 28.065 July. 28.728 13.347 241.85 .16048 .27980 32.733 8.0056 28.097 Aug. 29.277 13.345 243.46 .16157 .28113 32.737 8.0056 28.693 Sept. 29.794 13.401 246.94 .16292 .29583 33.354 8.0056 29.308 Oct.. 30.065 13.349 249.06 .16332 .30202 33.573 8.0056 29.772 Nov. 30.005 13.353 249.33 .16324 .30418 33.627 8.0056 30.006 Dec., 30.593 13.388 252.66 .16652 .31249 34.135 8.0056 30.503 1972—Jan.. 30.956 13.415 257.05 .16923 .31978 34.737 8.0002 31.072 Feb.. 31.390 13.638 260.37 .17036 .32769 35.080 8.0000 31.468 Mar. 31.545 13.716 261.81 .17161 .33054 35.409 8.0000 31.384 Apr. 31.468 13.735 261.02 .17138 .32943 35.406 8.0000 31.142 May. 31.454 13.763 261.24 .17175 .32854 35.446 8.0000 31.124 June, 31.560 13.754 256.91 .17142 .33070 35.475 8.0000 31.296 Period Z (d e N o a e l l l a w a n r) d N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o a fr n u i d c th a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r r w l a a i n n tz c d ­ ) ( U p K d o n i o u n i m t n g e d d ­ ) 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—May..................................................................... 112.54 13.556 3.5013 140.56 1.4291 19.357 724.253 241.87 June..................................................................... 112.55 14.062 3.5027 140.57 1.4290 19.370 24.409 241.87 July..................................................................... 112.53 14.073 3.5016 140.55 1.4292 19.371 24.423 241.85 Aug...................................................................... 113.28 14.244 3.5289 141.46 1.4335 19.502 24.813 243.46 Sept...................................................................... 114.95 14.494 3.5970 140.88 1.4415 19.732 25.118 246.94 Oct....................................................................... 115.88 14.599 3.6275 140.43 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 Mar...................................................................... 119.29 15.161 3.6930 133.77 1.5369 20.956 25.974 261.81 Apr....................................................................... 119.36 15.151 3.6950 133.32 1.5487 20.907 25.920 261.02 May..................................................................... 119.41 15.214 3.7075 133.82 1.5492 21.032 25.903 261.24 June..................................................................... 119.13 15.303 3.7083 132.63 1.5509 21.101 26.320 9256.91 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 9 Effective June 23, 1972, the U.K. pound was floated. dollar within the margins required by IMF rules. 3 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 Note.—Effective Aug. 16, 1971, the U.S. dollar convertibility to gold per U.S. dollar. was suspended; as from that day foreign central banks did not have to 4 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to support the dollar rate in order to keep it within IMF limits. 5.55 francs per U.S. dollar. During December 1971, certain countries established central rates 5 Effective Oct. 26, 1969, the new par value of the German mark was against the U.S. dollar in place of former IMF parities. set at 3.66 per U.S. dollar. Averages of certified noon buying rates in New York for cable transfers. 6 Effective May 10, 1971, the German mark and Netherlands guilder For description of rates and back data, see “International Finance,” have been floated. Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 MONEY RATES □ JULY 1972 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of June 30, 1971 Rate Country 1971 1972 as of June 30, Per Month 1972 cent effective July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Argentina....................... 6.0 Dec. 1957 18.0 18.0 Austria........................... 5.0 Jan. 1970 5.0 Belgium......................... 6.0 Mar. 1971 5.5 5.0 4.5' 4.0 4.0 Brazil............................. 20.0 July 1969 20.0 Canada........................... 5.25 Feb. 1971 4.75 4.75 Ceylon........................... 6.5 Jan. 1970 6.5 Chile............................... 14.0 July 1969 7.0 7.0 Colombia....................... 8.0 May 1963 8.0 Costa Rica..................... 4.0 June 1966 4.0 Denmark....................... 7.5 Apr. 1971 7.0 8.0 8.0 Ecuador......................... 8.0 Jan. 1970 8.0 Egypt, Arab Rep. of... 5.0 May 1962 5.0 El Salvador.................... 4.0 Aug. 1964 4.0 Ethiopia......................... 6.50 Aug. 1970 6.50 Finland.......................... 8.50 June 1971 7.75 7.75 France........................... 6.75 May 1971 6.5 6.0 5.75 5.75 Germany, Fed. Rep. of. 5.0 Apr. 1971 4.5 4.0 3.0 3.0 Ghana........................... 5.5 Mar. 1968 8.0 8.0 Greece........................... 6.5 Sept. 1969 6.5 Honduras....................... 4.0 Feb. 1966 4.0 Iceland........................... 5.25 Jan. 1966 5.25 India.............................. 6.0 Jan. 1971 6.0 Indonesia....................... 6.0 May 1969 6.0 Iran................................ 8.0 Aug. 1969 7.0 7.0 Ireland........................... 6.00 June 1971 5.94 6.12 5.12 5.12 4.94 4.81 4.81 4.81 Italy............................... 5.0 Apr. 1971 4.5 4.0 4.0 Jamaica......................... 5.5 Apr. 1971 5.0 6.0 6.0 Japan............................. 5.5 May 1971 5.25 4.75 4.25 4.25 Korea............................. 16.0 June 1971 13.0 13.0 Mexico........................... 4.5 June 1942 4.5 Morocco........................ 3.50 Nov. 1951 3.50 Netherlands................... 5.5 Apr. 1971 5.0 4.5 4.0 4.0 New Zealand................. 7.0 Mar. 1961 6.0 6.0 Nigeria........................... 4.50 June 1968 4.50 Norway......................... 4.5 Sept. 1969 4.5 Pakistan......................... 5.0 June 1965 6.0 6.0 Peru............................... 9.5 Nov. 1959 9.5 Philippine Republic---- 10.0 June 1969 10.0 Portugal......................... 3.75 Feb. 1971 3.75 South Africa.................. 6.5 Mar. 1971 6.5 Spain............................. 6.0 Apr. 1971 5.0 Sweden........................... 6.0 Apr. 1971 5.0 5.0 Switzerland................... 3.75 Sept. 1969 3.75 Taiwan........................... 9.25 May 1971 9.25 Thailand........................ 5.0 Oct. 1959 5.0 Tunisia........................... 5.0 Sept. 1966 5.0 Turkey........................... 9.0 Sept. 1970 9.0 United Kingdom.......... 6.0 Apr. 1971 5.0 6.0 6.0 Venezuela...................... 5.0 Oct. 1970 5.0 Vietnam......................... 18.0 Sept. 1970 18.0 Note.—Rates shown are mainly those at which the central bank either Honduras—Rate shown is for advances only. discounts or makes advances against eligible commercial paper and/or Indonesia—Various rates depending on type of paper, collateral, com­ govt, securities for commercial banks or brokers. For countries with modity involved, etc.; more than one rate applicable to such discounts or advances, the rate Japan—Penalty rates (exceeding the basic rate shown) for borrowings shown is the one at which it is understood the central bank transacts from the central bank in excess of an individual bank’s quota: the largest proportion of its credit operations. Other rates for some Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of these countries follow: of paper, maturity, collateral, guarantee, etc. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ pending on type of transaction; tion, import substitution industries and manufacture of exports; 8 per Brazil—8 per cent for secured paper and 4 per cent for certain agricultural cent for other agricultural, industrial and mining paper; paper; Philippines—6 per cent for financing the production, importation, and dis­ Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent tribution of rice and corn and 7.75 per cent for credits to enterprises en­ for loans to make up reserve deficiencies. gaged in export activities. Preferential rates are also granted on credits to Colombia—5 per cent for warehouse receipts covering approved lists of rural banks; and products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent Venezuela—2 per cent for rediscounts of certain agriculture paper, 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

JULY 1972 a MONEY RATES; ARBITRAGE A 95 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n s ls t u , h r s y i m Da o d y n a - y e 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 o a l s l n s u t , h ry s D m a d o y a n - y e to y - C d b r l e a e a p t a n e o r k s s in s 4 it ’ g D m a o d y n a - e y 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 m Da o d y n a - y e t y o 7 - 3 T m r 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—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 5.20 2.75 4.15 3.19 3.38 5.00 Mar............. 3.51 3.70 4.77 4.34 4.58 2.50 4.76 2.75 3.88 2.26 0.98 5.00 Apr............. 3.65 3.68 4.62 4.30 3.82 2.50 4.81 2.75 3.77 1.84 0.70 4.75 3.67 3.73 4.83 4.27 4.56 2.50 2.75 2.95 1.98 3.03 4.75 June 3.61 3.64 5.86 5.21 3.92 2.93 1.90 1.53 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 Se N cti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m ti e o n n t a to n d B a b n a k c i k n g d a a n ta d , M se o e n e “ ta In ry te r S n t a a t t i i o st n ic a s l , F 19 in 62 a . nce,” ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Date K U in n g i d te o d m Spread P d ( r i e s + c m ) o i u o u n r m t in ( c f N e a n v e t o t iv r e Canada Spread d ( ( i + - sc ) ) o o u o n n r t in ( c f N e a n v e t o t iv r e (adj. to United (favor (-) on of United (favor forward of quo U t . a S ti . on States Lon o d f on) f p o o rw un ar d d London) qu A i o n t s ed qu A o U d t j . a . S ti t . o o n States Can o a f da) C d a o n l a l d ar ia s n Canada) basis) Canada basis 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 Apr. 7.............. 4.27 3.72 .55 .17 .72 3.64 3.56 3.72 -.16 -.80 -.96 14.............. 4.27 3.78 .49 .12 .61 3.71 3.63 3.78 -.15 -.80 -.95 21.............. 4.23 3.48 .75 .01 .76 3.64 3.56 3.48 .08 -1.04 -.96 28.............. 4.21 3.48 .73 -.04 .69 3.62 3.54 3.48 .06 -1.20 -1.14 May 5.............. 4.19 3.44 .75 -.22 .53 3.61 3.53 3.44 .09 -1.28 -1.19 12.............. 4.20 3.55 .65 -.21 .44 3.62 3.54 3.55 -.01 -1.40 -1.41 19.............. 4.20 3.72 .48 -.38 .10 3.69 3.61 3.72 -.11 -1.72 -1.83 26.............. 4.24 3.67 .57 -.49 .08 3.75 3.66 3.67 -.01 -1.72 -1.73 June 2.............. 4.34 3.77 .57 -.39 .18 3.73 3.65 3.77 -.12 -1.80 -1.92 9.............. 4.78 3.78 1.00 -.49 .51 3.70 3.62 3.78 -.16 -1.36 -1.52 16.............. 5.46 3.85 1.61 -1.62 -.01 3.57 3.49 3.85 -.36 -.72 -1.08 23.............. 5.54 3.93 1.61 -7.74 -6.13 3.53 3.45 3.93 -.48 -.10 -.58 30.............. 5.56 3.91 1.65 -4.00 -2.35 3.50 3.42 3.91 -.49 -.20 -.69 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 □ JULY 1972 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per ounce through Apr. 1972 and at $38 per ounce thereafter) Esti­ Intl. Esti­ E pe n r d i o o d f m to a t t a e l d M ta o r n y e­ U St n a i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world 1965......................... 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 44 1966......................... 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967......................... 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968.......................... 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969.......................... 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 47 1970......................... 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 63 791 47 1971- 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 47 4,724 10.207 192 140 259 722 1,564 46 22 792 47 4,726 10,206 192 140 259 722 1,564 46 22 792 47 41,185 4.732 10,206 26,250 192 90 259 729 1,544 46 22 792 47 1972-—Jan................. 4.732 10,206 192 90 260 729 1.544 46 22 792 47 Feb................ 5.303 9,662 192 90 260 729 1.544 46 21 792 Mar............... *41,260 5.304 9,662 *26,290 192 70 259 729 1,544 46 20 792 Apr................ 5,331 9,662 192 70 259 729 1,544 46 20 767 May*............ 5,761 10,490 208 791 1,682 18 836 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 1966......................... 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967......................... 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 1968.......................... 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 1969.......................... 26 89 45 3,547 4,079 130 243 158 193 39 46 2,956 413 1970.......................... 17 64 29 3,532 3,980 117 243 131 144 16 43 2,887 532 1971-—May............... 16 64 29 3,523 4,035 99 243 130 143 16 43 2,884 641 June............... 16 64 29 3,523 4,046 99 243 131 143 16 43 2.884 641 July............... 16 64 29 3.523 4,077 99 243 131 143 16 43 2.884 670 Aug............... 14 64 49 3.523 4.076 99 243 131 143 16 43 2.884 679 Sept............... 14 64 49 3,523 4.077 98 243 131 143 16 43 2.884 679 Oct................. 14 64 49 3,523 4.077 98 243 131 143 16 43 2.884 679 Nov............... 14 64 49 3,523 4.077 98 243 131 143 16 43 2.884 679 Dec................ 14 64 49 3,523 4.077 98 243 131 144 16 43 2.884 679 1972-—Jan................. 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 679 Feb................ 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 711 Mar............... 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 735 Apr................ 14 64 49 3.523 4.077 98 243 131 144 16 43 2.884 735 May*............ 15 69 53 3,826 4,437 143 156 17 3,131 801 E pe n r d i o o d f Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ Po g r a t l u­ A S r a a u b d i i a 1965......................... 52 182 68 2 158 21 1,756 31 53 67 38 576 73 1966......................... 67 193 68 1 109 21 1,730 18 53 65 44 643 69 1967......................... 136 193 68 31 166 21 1,711 18 53 20 60 699 69 1968.......................... 122 288 85 66 165 21 1,697 24 54 20 62 856 119 1969.......................... 86 288 85 63 169 21 1,720 25 54 25 45 876 119 1970.......................... 86 288 85 48 176 21 1,787 23 54 40 56 902 119 1971—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 67 918 127 Dec................ 87 322 85 58 184 21 1,909 33 55 40 67 921 127 1972—Jan................. 87 322 85 58 181 21 1,908 33 55 40 68 921 127 Feb................ 87 322 85 58 179 21 1,908 33 55 40 68 921 127 Mar............... 87 322 85 58 21 1,908 33 55 68 925 127 Apr................ 89 322 85 58 21 1,908 33 55 68 925 127 May*... . 104 93 63 2,079 36 60 73 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ GOLD RESERVES AND PRODUCTION A 97 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions of dollars; valued at $35 per ounce through Apr. 1972 and at $38 per ounce thereafter) Bank E pe n r d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o i n t m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l l e . ­ ments 4 1965............................. 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 1966.............................. 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 1967............................. 583 785 203 3,089 81 92 97 93 1,291 140 401 22 -624 1968.............................. 1,243 785 225 2,624 81 92 97 93 1,474 133 403 50 -349 1969.............................. 1,115 784 226 2,642 82 92 117 93 1,471 165 403 51 -480 1970.............................. 666 498 200 2,732 82 92 126 85 1,349 162 384 52 -282 1971—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 51 310 1972_Jan..................... 403 498 200 2,909 80 82 130 85 778 391 51 332 Feb.................... 405 498 200 2,909 80 82 130 85 751 391 51 333 Mar.. ................ 405 498 200 2,909 80 82 129 85 751 391 51 354 Apr.................... 412 498 200 2,909 80 82 127 391 51 347 May*................ 469 217 3,158 89 425 56 365 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c i ­ A So fr u ic th a Ghana C s ( h K o a n i s n g a ­ o ) U S n ta i t t e e s d C a a d n a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h i i n l e ip s ­ t A ra u l s ia ­ o A th l e l r 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*........................... 1.098.7 24.4 6.0 77.3 6.6 4.1 24.9 22.2 23.5 1971—Apr................... 91.9 6.5 .5 .4 2.2 1.7 May................. 91.5 6.7 .5 .3 1.6 1.8 June................. 92.0 6.7 .1 .4 2.4 1.9 July.................. 93.4 5.8 1.1 .4 2.4 2.1 Aug................... 92.3 6.3 .6 .3 2.4 2.1 Sept.................. 91.3 6.1 .6 .3 2.4 2.1 Oct.................... 93.4 6.3 .6 .3 2.1 2.0 Nov.................. 91.7 6.6 .6 .3 Dec................... 85.7 5.9 .5 1972—Jan.................... 87.8 6.0 .6 Feb................... 81.2 5.9 .6 Mar.................. 84.5 6.1 Apr................... 85.9 6.9 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 BANKS AND THE MONETARY SYSTEM □ JULY 1972 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Bank credit Total assets, Gold Treas­ net— stock ury U.S. Treasury securities Total Capital Date and cur­ liabil­ Total and SDR rency ities deposits misc. certifi­ out­ Loans, Com­ Other and and ac­ cates 1 stand­ Total net2 mercial Federal secu­ capital, currency counts, ing Total and Reserve Other3 rities4 net net savings Banks 1964—Dec. 31.. 15,388 5,405 365,366 214,254 106,825 68,779 37,044 1,002 44,287 386,159 352,964 33,193 1965—Dec. 31. . 13,733 5,575 399,779 242,706 106,716 65,016 40,768 932 50,357 419,087 383,727 35,359 1966—Dec. 31.. 13,159 6,317 422.676 261,459 106,472 60,916 44,316 1,240 54,745 442,152 400,999 41,150 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 82,407 549,884 485,545 64,339 1970—June 30... 11,767 6,986 536,845 336,860 112,475 54,742 57,714 19 87,510 555,596 487,093 68,501 Dec. 31... 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971—Jan. 27.. 11,100 7.200 574,100 346.300 127.000 64,700 62,000 300 100,800 592.400 527,200 65,200 Feb. 24.. 11,100 7.200 577,500 347.300 127,200 64.800 61,700 700 103.000 595.800 529.600 66.300 Mar. 31.. 11,100 7.300 586.700 350.100 129,900 65,000 64,200 800 106,600 605,100 539,100 66,000 Apr. 28.. 11,100 7.300 589.300 351.100 128.300 63.400 64,000 900 110.000 607.800 544,300 63,400 May 26.. 10.700 7.400 594.700 355.300 128,100 62,200 64,900 900 111,300 612.800 550,400 62.300 June 30.. 10,732 7,420 608,204 363.301 130,479 63,565 65,518 1,396 114,424 626,356 560,032 66,324 July 28.. 10.700 7.400 605.300 360.100 129,700 62.800 65.800 1,100 115.400 623.400 559.500 64.000 Aug. 25.. 10.500 500 611.300 365,700 130.000 62,200 66,400 1,400 115,600 629.300 563.500 65.800 Sept. 29.. 10.500 500 617,000 368.100 131.300 62,200 67,600 1,600 117,500 635,000 567.500 67,600 Oct. 27.. 10.500 600 622,200 369,500 133,600 63,300 67.800 2.500 119,100 640.300 571.600 68.800 Nov. 24.. 10.500 600 626.700 370,900 136,400 64.400 69,500 2.500 119.400 644,800 575,800 69.000 Dec. 31.. 10,532 627 650.677 386,010 141,547 68,198 70,804 2,545 123,120 668,837 604,415 64,423 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S.Government Date For­ At Cur­ De­ Cur­ De­ Postal eign Treas­ com­ rency mand rency mand Com­ Mutual Savings net 10 ury mer­ At Total outside deposits Total outside deposits Total mercial savings Sys­ cash cial F.R. banks ad­ banks ad­ banks 8 banks 9 tem 3 hold­ and Banks justed 7 justed 7 ings savings banks 1964—Dec. 31.... 159,300 33,500 125,800 167,140 34,882 132,258 175,898 126,447 49,065 386 1,724 612 6,770 820 1965—Dec. 31 .... 167,100 35,400 131,700 175,314 36,999 138,315 199,427 146,433 52,686 309 1,780 760 5,778 668 1966—Dec. 31 .... 170,400 37,600 132,800 178,304 39,003 139,301 213,961 158,568 55,271 122 1,904 1,176 5,238 416 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315. .. 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970—June 30.. .. 199,600 46,600 153,000 201,614 47,032 154,582 273,109 203,916 69,193 2,641 439 8,285 1,005 Dec. 31___ 209,400 47,800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971— Jan. 27.... 203,300 48,300 155,000 205,900 47,600 158,300 307,600 235,000 72,600 2,500 500 9,500 1,200 Feb. 24.... 204,900 48,500 156,400 203,800 47,900 155,900 313,900 240,400 73,500 2,500 500 7,500 1,400 Mar. 31.... 214,100 49,300 164,800 208,200 48,800 159,400 322,100 247,000 75,100 2,500 500 5,000 900 Apr. 28.... 207,200 48,900 158,300 207,400 48,500 158,800 324,200 248,300 75,900 2,300 500 8,600 1,400 May 26.... 212,400 49,500 162,900 209,900 49,400 160,500 328,400 251,700 76,800 2,300 500 8,500 900 June 30__ 217,900 50,000 167,900 215,010 50,491 164,519 331,873 253,651 78,222 2,482 454 8,939 1,274 July 28.... 213,900 50,400 163,500 213,700 50,500 163,200 334,000 255,800 78,200 2,500 500 7,400 1,400 Aug. 25.... 214,700 50,300 164,400 213,000 50,600 162,300 336,300 257,700 78,600 2,500 500 10,000 1,400 Sept. 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.... 215,900 51,000 164,900 216,800 50,900 165,900 343,700 263,900 79,800 2,500 500 6,500 1,700 Nov. 24.... 216,700 51,100 165,600 220,100 52,500 167,600 346,400 266,100 80,300 2,600 500 4,700 1,400 Dec. 31.... 224,600 51,100 173,500 234,876 53,141 181,735 353,638 271,760 81,877 2,719 464 10,698 2,020 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 3 After June 30, 1967, Postal Savings System accounts were eliminated million to demand deposits). from this Statement. 4 See second paragraph of Note 2. 5 Figures for this and later dates take into account the following changes Note.—For back figures and descriptions of the consolidated condition (beginning June 30, 1969) for commercial banks: (1) inclusion of con­ statement and the seasonally adjusted series on currency outside banks and solidated reports (including figures for all bank-premises subsidiaries and demand deposits adjusted, see “Banks and the Monetary System,” Section other significant majority-owned domestic subsidiaries) and (2) reporting 1 of Supplement to Banking and Monetary Statistics, 1962, and Bulletins of figures for total loans and for individual categories of securities on a for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti­ gross basis—that is, before deduction of valuation reserves. See also note 1. mated and are rounded to the nearest $100 million. 6 Series began in 1946; data are available only for last Wed. of month. For description of substantive changes in official call reports of 7 Other than interbank and U.S. Govt., less cash items in process of condition beginning June 1969, see Bulletin for August 1969, pp. collection. 642-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ COMMERCIAL BANKS A 99 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans and Total 3 Demand ings counts banks l U.S. capital De­ Treas­ Other 2 ac­ mand Time Time 5 ury counts4 U.S. Govt. Other All commercial banks: 1964—Dec. 31----- 277,376 175,589 62,991 38,796 60,489346,921 307,170 17,938 819 6,510 155,184126,720 2,679 27,795 13,761 1965—Dec. 31___ 306,060201,658 59,547 44,855 60,899 377,264332,436 18,426 1,008 5,525 160,780146,697 4,472 30,272 13,804 1966—Dec. 31___ 322,661 217,726 56,163 48,772 69,119403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30___ 359,903235,954 62,473 61,477 77,928451,012395,008 21,883 1,314 5,234 184,066182,511 5,777 34,384 13,722 1968—Dec. 31___ 401,262265,259 64,466 71,537 83,752500,657434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 316. . .421,597295,547 54,709 71,341 89,984530,665435,577 27,174 735 5,054208,870 193,744 18,360 39,978 13,661 1970—June 30___ 423,240296,091 51,569 75,579 85,631 529,679432,429 26,338 898 8,076 192,999204,118 18,546 41,708 13,671 Dec. 31___ 461,194313,334 61,742 86,118 93,643576,242480,940 30,608 1,975 7,938209,335231,084 19,375 42,958 13,686 1971 _jan. 27___ 454.250305,600 61,520 87,130 83,860559,200462,730 25,360 2,030 9,250 190,810235,280 20,500 42,730 13,692 Feb. 24___ 458,040307,740 61,430 88,870 82,450561,810463,950 25,850 1,990 7,060 188,180240,870 21,500 43,050 13,700 Mar. 31----- 463,500310,380 61,620 91,500 94,350580,930483,470 30,640 1,990 4,520 198,860247,460 22,130 43,530 13,713 Apr. 28___ 467,030312,840 60,030 94,160 88,680578,200479,640 26,430 2,020 8,150 194,310248,730 24,070 43,740 13,717 May 26----- 469,010315,380 58,770 94,860 84,530576,610478,570 24,400 2,080 7,900 191,930252,260 23,390 43,910 13,720 June 30----- 480,524322,886 60,254 97,383 96,141 599,429 503,018 31,313 2,207 8,412206,918254,168 22,547 45,311 13,729 July 28___ 478,300320,870 59,280 98,150 85,880587,470489,140 26,650 2,030 6,790 197,310256 360 24,050 44,800 13.734 Aug. 25___ 482,230325,450 58,720 98,060 85,300591,080491,180 26,380 2,110 9,390 195,020258,280 24,620 44,980 13,739 Sept. 29___ 489,640331,000 58,740 99,900 88,180602,070497,530 27,050 2,500 8,920 197,180261,880 26,850 45,110 13,753 Oct. 27___ 492,020330,570 59,960 101,490 95,590611,630506,710 28,920 2,610 5,950204,800264,430 27,240 45,530 13,768 Nov. 24___ 497,070334,420 61,030 101,620 95,350616,080506,340 28,200 2,600 4,210204,670266,660 30,870 45,710 13,776 Dec. 31___ 516,564346,930 64,930 104,704 99,832640,255537,946 32,205 2,908 10,169220,375272,289 25,912 47,211 13,783 Members of F.R. System: 1964—Dec. 31___ 228,497 147,690 48,717 32,089 52,737289,142255,724 17,007 664 5,838 128,539 103,676 2,481 22,901 6,225 1965—Dec. 31___ 251,577 169,800 44,992 36,785 52,814313,384275,517 17,454 840 4,890 132,131 120,202 4,234 24,926 6,221 1966—Dec. 31___ 263,687 182,802 41,924 38,960 60,738 334,559291,063 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 68,946373,584326,033 20,811 1,169 4,631 151,980147,442 5,370 28,098 6,071 1968—Dec. 31___ 325,086220,285 47,881 56,920 73,756412,541 355,414 23,519 1,061 4,309 163,920162,605 8,458 30,060 5,978 1969—Dec. 316... 336,738242,119 39,833 54,785 79,034432,270349,883 25,841 609 4,114 169,750149,569 17,395 32,047 5,869 1970—June 30___ 335,551 240,100 37,324 58,127 75,539428,975345,514 25,122 691 6,957 155,916156,829 17,507 33,184 5,803 Dec. 31___ 365,940253,936 45,399 66,604 81,500465,644384,596 29,142 1,733 6,460 168,032179,229 18,578 34,100 5,766 1971—Jan. 27___ 359,731 247,183 45,222 67,326 73,521451,224369,092 24,179 1,785 7,929 152,695 182,504 19,557 33,950 5,761 Feb. 24___ 362,488248,916 44,840 68,732 72,296452,887369,632 24,680 1,744 5,730 150,712 186,766 20,440 34,213 5,754 Mar. 31___ 366,723250,777 45,193 70,753 83,092469,355386,692 29,399 1,749 3,726 159,983 191,835 21,107 34,658 5,751 Apr. 28.... 368,539252,040 43,704 72,795 78,152465,677382,149 25,278 1,776 6,957 155,728 192,410 22,983 34,799 5,747 May 26___ 369,182253,513 42,601 73,068 73,902462,599379,887 23,243 1,838 6,663 153,227194,916 22,237 34,944 5,742 June 30___ 378,233259,530 44,038 74,665 84,743482,225400,973 29,965 1,980 6,984 165,827 196,218 21,700 35,822 5,736 July 28___ 376,133257,988 42,844 75,301 75,342471,089 388,088 25,436 1,804 5,496 157,436 197,916 23,131 35,555 5,730 Aug. 25___ 379,269261,993 42,337 74,939 74,807473,923389,558 25,169 1,883 7,907 155,336 199,263 23,751 35,723 5,730 Sept. 29... . 385,391 266,575 42,369 76,447 77,361 483,064394,598 25,829 2,274 7,369 157,000202,126 25,843 35,827 5,724 Oct. 27___ 386,028264,847 43,586 77,595 83,963490,047401,167 27,616 2,385 4,840 162,600203,726 26,203 36,179 5,725 Nov. 24___ 389,468267,287 44,630 77,551 83,788492,995399,678 26,941 2,372 3,317 161.905205,143 29,776 36,303 5,729 Dec. 31___ 405,087277,717 47,633 79,738 86,189511,353425,380 30,612 2,549 8,427 174,385209,406 25,046 37,279 5,727 Reserve city member:6 New York City: 1964—Dec. 31___ 39,507 27,301 6,178 6,028 11,820 53,867 45,191 5,088 436 1,486 23,896 14,285 1,224 4,471 13 1965—Dec. 31___ 44,763 33,125 5,203 6,435 11,876 59,517 49,270 5,225 522 1,271 24,265 17,988 1,987 5,114 12 1966—Dec. 31___ 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30___ 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31___ 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 316. . . 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 693 36,126 14,944 4,405 6,301 12 1970—June 30___ 57,088 44,881 4,413 7,795 23,070 85,666 60,615 11,148 321 1,236 32,590 15,320 4,057 6,374 12 Dec. 31___ 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971—Jan. 27___ 60,658 45,791 6,011 8,856 21,274 87,437 64,712 11,270 950 1,985 29,761 20,746 4,997 6,449 12 Feb. 24___ 60,791 46,610 5,378 8,803 20,393 86,749 63,848 11,367 919 879 29,352 21,331 5,855 6,510 12 Mar. 31___ 59,912 45,457 5,683 8,772 27,111 93,161 71,345 14,672 846 573 33,114 22,140 5,741 6,723 12 Apr. 28___ 60,115 45,741 5,316 9,058 23,718 89,486 67,750 12,261 920 1,392 30,793 22.384 6,285 6,743 12 May 26.... 59,029 45,441 5,007 8,581 19,816 84,885 63,973 10,254 846 1,388 28,552 22,933 6,072 6,797 12 June 30___ 61,059 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 5,088 8,675 24,405 91,671 68,923 13,005 1,086 710 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 1,196 392 28,785 24,431 6,954 7,257 12 Dec. 31___ 63,342 48,714 5,597 9,031 22,663 91,461 71,723 13,825 1,186 1,513 30,943 24,256 5,195 7,285 12 For notes see p. A-101. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 COMMERCIAL BANKS □ JULY 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK-Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans and Total 3 Demand ings counts banks l U.S. capital De­ Treas­ Other 2 ac­ mand Time Time5 ury counts4 U.S. Govt. Other Reserve city member: (cont.): City of Chicago:7,8 1964—Dec. 31___ 10,562 7,102 1,873 1,587 2,366 13,289 11,807 1,448 22 396 5,362 4,578 204 1,056 12 1965—Dec. 31___ 11,455 8,219 1,700 1,536 2,426 14,290 12,475 1,437 39 345 5,656 4,999 355 1,132 11 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. 316... 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—June 30___ 14,648 10,986 1,540 2,121 2,622 18,291 13,266 1,682 16 347 6,102 5,119 1,507 1,566 9 Dec. 31___ 15,745 11,214 2,105 2,427 3,074 19,892 15,041 1,930 49 282 6,663 6,117 1,851 1,586 9 1971—Jan. 27___ 15,530 10,901 2,208 2,421 2,981 19,487 14,303 1,313 79 487 6,091 6,333 1,969 1,591 9 Feb. 24___ 15,479 11,000 2,048 2,431 3,083 19,482 14,264 1,451 58 252 6,010 6,493 2,125 1,618 9 Mar. 31___ 16,056 11,345 2,179 2,532 2,695 19,609 14,665 2,074 130 168 5,598 6,695 1,961 1,635 9 Apr. 28___ 15,726 11,051 1,940 2,735 3,159 19,874 15,048 1,326 123 414 6,415 6,770 2,304 1,622 9 May 26___ 15,853 11,293 1,677 2,883 3,011 19,741 14,951 1,300 143 419 6,181 6,908 2,180 1,616 9 June 30.... 16,477 11,777 1,736 2,964 3,080 20,477 15,636 1,489 85 317 6,648 7,097 2,359 1,637 9 July 28___ 16,128 11,724 1,565 2,839 3,199 20,233 15,413 1,448 150 277 6,389 7,149 2,489 1,634 9 Aug. 25... . 16,346 12,113 1,528 2,705 3,089 20,364 15,234 1,365 142 380 5,997 7,350 2,447 1,638 9 Sept. 29... . 16,704 12,273 1,671 2,760 2,756 20,438 15,571 1,339 191 374 6,028 7,639 1,952 1,649 9 Oct. 27___ 16,526 11,938 1,732 2,856 3,576 21,049 15,933 1,553 228 240 6,386 7,526 2,462 1,669 9 Nov. 24___ 16,651 11,945 1,780 2,926 3,856 21,333 15,364 1,431 219 102 6,097 7,515 2,712 1,649 9 Dec. 31___ 17,133 12,285 1,782 3,067 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1,682 9 Other reserve city:7, 8 1964—Dec. 31___ 84,670 57,555 16,326 10,789 21,607 109,053 97,145 8,289 134 2,195 46,883 39,645 841 8,488 182 1965—Dec. 31___ 91,997 65,117 14,354 12,526 21,147 116,350 103,034 8,422 206 1,773 47,092 45,541 1,548 9,007 171 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 28,136 151,957132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 316... 121,324 90,896 11,944 18,484 29,954 157,512126,232 10,663 242 1,574 58,923 54,829 9,881 11,464 157 1970—June 30.... 121,213 90,152 11,372 19,689 27,106 154,889 123,673 9,530 273 3,115 53,317 57,438 9,779 11,868 156 Dec. 31___ 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—Jan. 27___ 130,725 92,805 14,490 23,430 26,930164,214133,018 8,875 675 3,141 52,463 67,864 10,413 12,234 156 Feb. 24___ 131,751 92,932 14,498 24,321 26,701 164,992133,375 9,169 686 2,262 52,063 69,195 10,014 12,321 156 Mar. 31___ 134,204 94,302 14,636 25,266 29,361 170,513 138,409 9,791 692 1 ,592 55,594 70,740 11,044 12,474 156 Apr. 28___ 134,119 94,416 13,830 25,873 28,581 169,509136,752 9,036 652 3,066 53,562 70,436 11,889 12,502 156 May 26___ 134,244 95,022 13,409 25,813 28,193 169,420137,136 9,009 714 2,671 53,519 71,223 11,325 12,561 156 June 30... .137,326 97,061 14,552 25,713 30,901 175,607142,776 10,166 735 2,954 57,622 71,299 12,153 12,826 156 July 28----- 136,792 97,128 13,487 26,177 26,803 170,828138,268 9,150 684 1 ,999 54,884 71,551 11,822 12,785 156 Aug. 25... . 137,513 98,538 13,132 25,843 27,341 172,142138,865 9,111 667 3,366 54,235 71,486 12,375 12,854 156 Sept. 29... .140,060100,339 13,121 26,600 27,832 175,407140,334 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. 31___ 149,401 106,361 15,912 27,129 33,732 190,880155,226 11,241 933 3,557 62,474 77,020 14,799 13,197 156 Country member:7, 8 1964—Dec. 31___ 93,759 55,733 24,341 13,685 16,944 112,932101,581 2,182 71 1,760 52,398 45,169 213 8,886 6,018 1965—Dec. 31___ 103,362 63,338 23,735 16,288 17,366 123,227 110,738 2,371 74 1,501 55,118 51,675 343 9,673 6,027 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 20,334 146,052131,156 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 22,664 161,122144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 316... 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—June 30___ 142,603 94,081 19,999 28,522 22,741 170,129 147,960 2,763 81 2,259 63,907 78,951 2,164 13,377 5,626 Dec. 31___ 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1971—Jan. 27___ 152,818 97,686i 22,513 32,619 22,336 180,086157,059 2,721 81 2,316 64,380i 87,561 2,178 13,676 5,584 Feb. 24___ 154,467 98,374• 22,916 33,177 22,119 181,664158,145 2,693 81 2,337 63,287 89,747 2,446 13,764• 5,577 Mar. 31 ... . 156,551 99,673i 22,695 34,183 23,925 186,072 162,273 2,862 81 1,393 65,677 92,260i 2,361 13,826i 5,574 Apr. 28___ 158,579100,832! 22,618; 35,129' 22,694 186,808162,599 2,655 81 2,085 64,958! 92,820i 2,505 13,932 5,570 May 26... . 160,056101,757r 22,5081 35,791 22,882:188,553 163,827 2,680i 135 2,185 64,975 93,852 2,660 13,970i 5,565 June 30.... 163,371 103,445► 22,634t 37,289i 24,563i 193,374 168,852 3,087 224■ 2,512: 68,742: 94,286 2,656 14,499' 5,559 July 28...., 163,225 102,7541 22,955i 37,516> 23,059i 191,971 167,088 2,776 135 2,281 66,784 95,112 2,866 14,128: 5,553 Aug. 25... ,, 164,524103,68:1 22,884\ 37,951r 22,946> 193,20CI 168,067 2,775 135 2,597' 66,526; 96,034• 2,728 14,153 5,553 Sept. 29... ,. 166,630105,26:J 22,8641 38,502I 23,519» 196,237r 170,060 2,782: 224• 2,73C1 67,186i 97,138 3,146 14,195 5,547 Oct. 27...,. 168,253 106,31'1 22,95(> 38,98C) 24,987r 199,3821173,198 3,0521 224 1,927 69,821 98,174 3,261 14,291 5,548 Nov. 24. . .. 169,620 107,43:I 23,06!5 39,122I 24,85?! 200,544t173,702 2,985i 224L 1,559• 69,955 98,979* 3,418 14,385 5,552 Dec. 31... . 175,211 110,35:1 24,3425 40,511 26,7821 207,7981181,780 3,853I 263l 2,993I 74,0721100,600I 3,118 15,114 5,550 For notes see p. A-101. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ COMMERCIAL BANKS A 101 Notes to pp. A-99—A-100. 1 Beginning June 30, 1966, loans to farmers directly guaranteed by categories of securities on a gross basis—that is, before deduction of CCC were reclassified as securities, and Export-Import Bank portfolio valuation reserves—rather than net as previously reported. fund participations were reclassified from loans to securities. This reduced 7 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, Total loans and increased “Other securities” by about $1 billion. Total p. 993. For various changes between reserve city and country status in loans include Federal funds sold, and beginning with June 1967 securities 1960-63, see note 6, p. 587, May 1964 Bulletin. purchased under resale agreements, figures for which are included in 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million “Federal funds sold, etc.,” on p. A-24. was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve Beginning June 30, 1971, Farmers Home Administration notes are city bank in Chicago with total deposits of $190 million was reclassified classified as “Other securities” rather than “Loans.” As a result of this as a country bank. change, approximately $700 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. Note.—Data are for all commercial banks in the United States (includ­ See also table (and notes) at the bottom of p. A-32. ing Alaska and Hawaii). Commercial banks represent all commercial 2 See first two paragraphs of note 1. banks, both member and nonmember; stock savings banks; and nondeposit 3 Reciprocal balances excluded beginning with 1942. trust companies. 4 Includes items not shown separately. See also note 1. Beginning June 30, 1969, commercial banks and member banks exclude 5 See last paragraph of note 1. a small national bank in the Virgin Islands. 6 Figure takes into account the following changes beginning June 30, Comparability of figures for classes of banks is affected somewhat by 1969: (1) inclusion of consolidated reports (including figures for all bank- changes in F.R. membership, deposit insurance status, the reserve classifi­ premises subsidiaries and other significant majority-owned domestic cations of cities and individual banks, and by mergers, etc. subsidiaries) and (2) reporting of figures for total loans and for individual Figures are partly estimated except on call dates. For revisions in series before Dec. 31, 1964, see earlier Bulletins. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY SIZE OF BANK AND BY RATIO OF TIME TO TOTAL DEPOSITS (Averages of individual ratios expressed as percentages) Size group—Total deposits Ratio of time deposits to (in thousands of dollars) total deposits (per cent) All Item groups 5,000 5,000- 10,000- 25,000- 50,000- 100,000- Over Under 60 and and 10,000 25,000 50,000 100,000 500,000 500,000 40 40-49 50-59 over under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............................. 10.10 8.25 9.87 10.67 10.68 10.62 10.58 10.50 9.76 10.17 10.16 10.11 Net income.................................................................................................... 10.83 8.90 10.54 11.47 11.51 11.54 11.23 10.81 10.33 10.89 10.92 10.88 Percentage of net income: Cash dividends paid...................................................................................... 28.25 26.60 24.85 26.42 29.68 34.05 38.55 45.79 34.27 21. SI 27.97 26.84 Sources and disposition of income: Percentage of total assets: Total operating expenses.............................................................................. 5.06 5.02 5.06 5.08 5.11 5.09 4.99 4.80 4.38 4.98 5.18 5.21 Salaries, wages, and fringe benefits......................................................... 1.40 1.64 1.42 1.32 1.34 1.34 1.40 1.39 1.72 1.53 1.44 1.22 Interest on time and savings deposits..................................................... 2.30 2.03 2.31 2.43 2.40 2.36 2.10 1.80 1.11 1.89 2.32 2.83 Occupancy expense of bank premises, net.............................................. .20 .18 .18 .20 .22 .23 .23 .22 .23 .23 .21 .17 All other operating expenses.................................................................... 1.16 1.17 1.15 1.13 1.15 1.16 1.26 1.39 1.32 1.33 1.21 .99 Total operating income................................................................................ 6.21 6.17 6.25 6.24 6.22 6.17 6.08 5.92 5.80 6.18 6.31 6.26 Income after taxes and before securities gains (losses)1............................ .85 .81 .86 .87 .84 .83 .84 .82 .98 .87 .85 .80 Net income.................................................................................................... .91 .87 .92 .94 .91 .89 .89 .84 1.03 .93 .91 .86 Percentage of total operating income: Interest, fees, and other loan income2........................................................ 63.49 60.93 62.52 63.88 65.06 64.86 65.20 67.19 60.85 62.86 63.59 64.52 Securities—Interest and dividends:3 U.S. Treasury securities............................................................................ 14.75 20.62 16.46 14.31 11.54 11.38 9.43 7.15 16.11 14.14 14.41 14.91 Other U.S. Govt, securities (agencies and corporations)....................... 4.60 6.19 5.33 4.32 4.05 3.61 2.81 1.14 3.80 4.08 4.54 5.15 Obligations of States and political subdivisions..................................... 8.47 4.85 7.99 9.31 10.01 9.97 9.84 8.86 8.03 8.53 8.59 8.47 All other securities.................................................................................... .61 .75 .55 .55 .59 .68 .71 .55 .51 .42 .49 .82 (Service charges on deposit accounts4)........................................................... (4.20) (3.86) (4.41) (4.45) (4.33) (3.91) (3.45) (2.77) (5.15) (5.20) (4.55) (3.12) (Trust department income4)............................................................................... (2.16) (1.72) (1.10) (1.06) (1.89) (2.50) (3.67) (5.15) (3.96) (2.60) (2.06) (1.38) All other operating income.......................................................................... 8.08 6.66 7.15 7.63 8.75 9.50 12.01 15.11 10.70 9.91 8.38 6.13 Total operating income.................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages........................................................................................ 20.02 24.42 20.21 18.57 18.75 18.79 19.79 19.87 26.40 21.87 20.10 17.11 Officer and employee benefits....................................................................... 2.65 2.29 2.50 2.61 2.84 2.90 3.24 3.56 3.29 2.78 2.64 2.39 Interest on: Time and savings deposits........................................................................ 37.24 32.92 37.38 39.21 38.91 38.61 34.72 30.44 19.46 31.17 37.30 45.54 .47 .11 .11 .18 .35 .78 2.22 5.81 1.17 .71 .40 .19 (Capital notes and debentures4)................................................................... (1-14) (1.62) (1.15) (1.22) (1.16) (1.12) (1.05) (1.06) (1.23) (1.19) (1.18) (1.08) Occupancy expense of bank premises, net.................................................. 3.32 3.03 3.00 3.29 3.64 3.79 3.90 3.86 4.12 3.76 3.37 2.81 2.31 2.73 2.41 2.25 2.09 1.97 2.03 2.50 2.82 2.84 2.51 1.73 15.38 15.76 15.16 15.14 15.65 15.59 16.00 14.82 18.07 17.18 15.63 13.53 Total operating expenses1................................................................. 81.39 81.26 80.77 81.25 82.23 82.43 81.90 80.86 75.33 80.31 81.95 83.30 Income before taxes and securities gains (losses)....................................... 18.61 18.74 19.23 18.75 17.77 17.57 18.10 19.14 24.67 19.69 18.05 16.70 Income after taxes and before securities gains (losses).............................. 14.02 13.65 14.24 14.21 13.81 13.69 14.05 14.19 17.49 14.53 13.72 12.98 Net securities gains or losses (—), after taxes............................................ .84 .66 .75 .90 .99 .98 .84 .35 .61 .91 .87 .83 All other income (net).................................................................................. .04 .07 .09 .03 .01 .06 - .01 .02 .07 .04 .06 Net income1.................................................................................................. 14.90 14.38 15.08 15.14 14.81 14.73 14.88 14.56 18.17 15.44 14.63 13.87 A 102 MEMBER BANKS, 1971 □ JULY 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends:3 U.S. Treasury securities.................................................................... 5.77 5.77 5.80 5.82 5.75 5.76 5.60 5.53 5.66 5.75 5.80 5.81 Other U.S. Govt, securities (agencies and corporations)............... 5.08 4.72 4.85 5.16 5.35 5.28 5.59 5.29 4.54 4.95 5.05 5.34 Obligations of States and political subdivisions.............................. 4.16 3.96 4.26 4.19 4.21 4.11 4.08 4.20 4.06 4.11 4.19 4.19 All other securities............................................................................ 5.94 5.73 5.71 5.86 6.20 6.17 6.40 7.08 6.03 5.73 5.94 6.00 On loans:2 Interest, fees, and other loan income............................................... 8.25 8.45 8.36 8.31 8.14 7.95 7.89 7.64 8.49 8.53 8.37 7.95 Net loan losses (—) or recoveries5................................................... -.24 -.17 -.23 -.25 -.26 -.26 -.27 -.38 -.23 -.32 -.28 -.17 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities................................................................ 15.50 21.33 17.21 15.14 12.34 12.00 10.07 7.55 15.89 14.91 15.34 15.80 Other U.S. Govt, securities (agencies and corporations)............ 4.37 5.72 5.14 4.16 3.88 3.30 2.64 1.12 3.40 3.84 4.43 4.88 Obligations of States and political subdivisions.......................... 12.19 6.78 11.17 13.58 14.53 14.66 14.46 12.61 10.91 12.19 12.53 12.31 All other securities........................................................................ .61 .69 .61 .58 .58 .66 .62 .47 .50 .48 .52 .79 Gross loans2...................................................................................... 51.80 49.23 51.10 52.09 53.13 53.41 53.28 55.60 47.49 50.20 51.64 54.01 Cash assets......................................................................................... 13.12 14.54 12.79 12.16 12.57 12.99 15.54 17.43 19.28 15.63 13.04 10.10 Real estate assets.............................................................................. 1.64 1.32 1.56 1.70 1.83 1.85 1.81 1.76 1.65 1.81 1.74 1.48 Percentage of gross loans:2 Commercial and industrial loans..................................................... 19.60 12.69 15.94 18.92 23.46 26.48 30.94 39.25 23.87 24.38 20.39 15.32 Loans to farmers............................................................................... 13.82 29.13 20.38 11.06 5.10 2.21 1.82 1.11 18.10 14.25 15.05 11.29 Real estate loans................................................................................ 27.66 22.30 26.00 29.86 31.11 31.62 26.67 20.16 13.99 19.26 25.38 37.80 Loans to individuals for personal expenditures.............................. 27.61 24.21 26.53 29.47 30.23 29.02 26.09 19.15 27.32 28.71 28.43 26.47 All other loans2................................................................................ 11.31 11.67 11.15 10.69 10.10 10.67 14.48 20.33 16.72 13.40 10.75 9.12 Other ratios (per cent): Interest and fees on loans to loans...................................................... 7.84 7.96 7.92 7.89 7.77 7.62 7.56 7.30 7.84 8.02 7.98 7.63 Interest on time and savings deposits to time and savings deposits6. 4.70 4.54 4.67 4.73 4.77 4.77 4.72 4.76 4.46 4.72 4.75 4.70 Income taxes to net income plus income taxes.................................. 20.73 22.06 21.70 20.97 18.93 19.77 17.87 20.43 26.36 21.78 19.98 19.13 Time and savings deposits to total deposits........................................ 54.94 49.87 55.32 57.32 56.86 56.32 51.47 46.05 28.54 45.66 55.14 67.31 Total capital accounts and reserves to total assets7.......................... 8.79 10.51 8.94 8.34 8.20 8.21 8.34 8.41 10.46 9.06 8.64 8.28 Number of banks 8..................................................................................... 5,647 891 1,299 1,797 802 376 361 121 653 1,057 1,780 2,157 For notes see p. A-107. JULY 1972 □ MEMBER BANKS, 1971 A 103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY RATIO OF TIME TO TOTAL DEPOSITS, BY SIZE OF BANK (Averages of individual ratios expressed as percentages) Banks with ratios of time Banks with ratios of time Banks with ratios of time Banks with ratios of time to total deposits of to total deposits of to total deposits of to total deposits of under 40 percent 40-49 per cent 50-59 per cent 60 per cent and over Item All groups Size group—Total deposits (in thousands of dollars) 5,000 5,GOO- Over 5,000 5,GOO- Over 5,000 5,GOO- Over 5,000 5,GOO- Over and 25, 000 25,000 and 25, 000 25,000 and 25, 000 25,000 and 25, 000 25,000 under under under under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............. 10.10 8.75 10.28 10.02 7.59 10.60 10.72 8.60 10.35 10.58 7.94 10.23 10.82 10.83 9.38 10.86 10.52 8.24 11.40 11.33 9.23 11.15 11.36 8.63 10.94 11.77 Percentage of net income: Cash dividends paid...................................................................... 28.25 35.00 29.24 41.09 21.38 25.66 34.27 26.22 25.51 33.37 24.14 25.26 31.56 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................... 5.06 4.20 4.42 4.52 5.19 4.96 4.90 5.25 5.17 5.15 5.29 5.18 5.24 Salaries, wages, and fringe benefits.......................................... 1.40 2.01 1.68 1.49 1.72 1.54 1.43 1.59 1.41 1.42 1.36 1.19 1.22 Interest on time and savings deposits...................................... 2.30 .79 1.21 1.30 1.87 1.90 1.89 2.28 2.35 2.30 2.77 2.85 2.80 Occupancy expense of bank premises, net............................... .20 .20 .24 .25 .24 .22 .24 .18 .20 .23 .14 .16 .20 All other operating expenses..................................................... 1.16 1.20 1.29 1.48 1.36 1.30 1.34 1.20 1.21 1.20 1.02 .98 1.02 Total operating income................................................................. 6.21 5.71 5.87 5.79 6.18 6.26 6.07 6.36 6.33 6.25 6.31 6.26 6.24 Income after taxes and before securities gains (losses)1............. .85 1.06 1.00 .86 .68 .93 .88 .80 .86 .84 .72 .82 .80 Net income..................................................................................... .91 1.13 1.05 .91 .75 .99 .93 .86 .93 .90 .78 .87 .87 Percentage of total operating income: Interest, fees, and other loan income2......................................... 63.49 57.23 60.74 64.78 60.82 61.80 65.42 61.88 63.28 65.03 62.71 64.51 65.35 Securities—Interest and dividends:3 U.S. Treasury securities............................................................. 14.75 23.18 15.90 9.05 20.20 14.91 10.16 20.17 14.75 10.90 19.50 15.54 11.43 Other U.S. Govt, securities (agencies and corporations)........ 4.60 5.59 3.84 1.87 6.03 4.57 2.43 5.93 4.79 3.37 6.97 4.98 4.68 8.47 5.55 9.25 8.76 4.45 8.98 9.76 5.10 8.76 10.03 4.34 8.55 10.16 All other securities.................................................................... .61 .60 .49 . 46 .58 .38 .42 .57 .44 .54 1.13 .72 .91 0Service charges on deposit accounts4)....................................... (4.20) (4.74) (6.43) (3.67) (4.75) (5.86) (4.38) (3.80) (4.85) (4.34) (2.78) (3.08) (3.35) (Trust department income4)........................................................ (2.16) (1.39) (1.86) (5.14) (1.80) (1.23) (3.25) (1.80) (1.00) (2.65) (1.86) (.86) (1.74) All other operating income........................................................... 8.08 7.85 9.78 15.08 7.92 9.36 11.81 6.35 7.98 10.13 5.35 5.70 1A1 Total operating income..................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages......................................................................... 20.02 32.36 25.25 21.93 25.51 21.73 20.39 22.76 19.65 19.58 19.71 16.66 16.92 Officer and employee benefits....................................................... 2.65 2.93 3.33 3.61 2.11 2.75 3.13 2.25 2.52 3.06 1.98 2.35 2.66 Interest on: Time and savings deposits......................................................... 37.24 13.90 20.93 23.04 30.82 30.99 31.60 36.42 37.60 37.20 44.35 45.91 45.28 Borrowed money........................................................................ .47 .11 .16 3.81 .07 .19 1.80 .15 .19 .91 .09 .10 .45 (Capital notes and debentures4).............................................. (1-14) (3.01) (.18) (1.24) (2.10) (1.01) (1.17) (.71) (1.33) (1.12) (1.14) (1.20) (1.02) Occupancy expense of bank premises, net.................................. 3.32 3.61 4.27 4.42 3.82 3.54 4.07 2.84 3.26 3.84 2.33 2.70 3.27 Provision for loan losses............................................................... 2.31 2.57 3.01 2.80 3.37 2.68 2.83 3.34 2.57 1.99 1.84 1.83 1.48 All other operating expenses......................................................... 15.38 17.92 17.98 18.32 17.90 17.15 16.91 14.80 15.75 15.80 13.87 13.27 13.92 Total operating expenses1................................................. 81.39 73.40 74.93 77.93 83.60 79.03 80.73 82.56 81.54 82.38 84.17 82.82 83.98 Income before taxes and securities gains (losses)........................ 18.61 26.60 25.07 22.07 16.40 20.97 19.27 17.44 18.46 17.62 15.83 17.18 16.02 Income after taxes and before securities gains (losses)............... 14.02 19.35 17.64 15.32 11.62 15.35 14.63 12.89 13.92 13.77 11.56 13.25 13.03 Net securities gains or losses (—), after taxes............................. .84 .53 .64 .67 .74 .97 .84 .71 .88 .91 .66 .79 1.02 All other income (net).................................................................. .04 . 19 - .02 .07 .11 -.01 .08 .01 .04 .07 .03 Net income1................................................................................... 14.90 20.07 18.26 16.06 12.47 16.32 15.46 13.60 14.88 14.69 12.26 14.11 14.08 A 104 MEMBER BANKS, 1971 □ JULY 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends:3 U.S. Treasury securities................................................................ 5.77 5.75 5.69 5.50 5.51 5.82 5.75 5.84 5.84 5.70 5.87 5.82 5.75 Other U.S. Govt, securities (agencies and corporations)............ 5.08 4.27 4.42 5.02 4.37 4.95 5.22 4.89 4.96 5.28 5.09 5.25 5.67 Obligations of States and political subdivisions.......................... 4.16 3.86 4.21 4.03 3.88 4.18 4.11 4.10 4.21 4.18 3.95 4.23 4.21 All other securities........................................................................ 5.94 5.69 6.05 6.36 5.85 5.42 6.16 5.62 5.85 6.28 5.80 5.86 6.39 On loans:2 Interest, fees, and other loan income........................................... 8.25 8.65 8.70 7.99 8.73 8.72 8.16 8.55 8.47 8.10 8.02 7.99 7.83 -.24 -.06 -.27 -.37 -.15 -.32 -.41 -.33 -.28 -.25 -.11 -.18 -.18 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities............................................................ 15.50 22.12 15.92 9.36 21.94 15.64 10.54 21.31 15.65 11.80 20.41 15.46 12.24 Other U.S. Govt, securities (agencies and corporations)........ 4.37 4.92 3.54 1.61 5.60 4.34 2.28 5.57 4.79 3.20 6.53 4.72 4.47 Obligations of States and political subdivisions....................... 12.19 7.39 12.49 12.21 6.09 12.73 14.19 7.29 12.74 14.75 6.24 12.38 14.90 All other securities.................................................................... .61 .47 .53 .47 .61 .45 .45 .65 .49 .52 .95 .75 .80 51.80 43.75 47.23 51.78 47.70 49.42 52.55 50.01 51.25 53.19 53.32 53.87 54.62 Cash assets..................................................................................... 13.12 19.96 17.98 20.53 15.90 15.11 16.31 13.46 12.79 13.30 10.92 9.85 10.27 Real estate assets........................................................................... 1.64 1.00 1.89 1.99 1.67 1.76 1.97 1.34 1.73 1.94 1.31 1.47 1.58 Percentage of gross loans:2 Commercial and industrial loans................................................. 19.60 14.86 22.23 35.75 14.37 21.61 33.26 12.51 18.91 27.06 10.28 14.13 20.25 Loans to farmers........................................................................... 13.82 33.75 17.87 2.11 29.24 16.56 3.75 33.52 16.12 3.84 21.37 12.83 3.31 27.66 11.61 14.60 15.54 17.81 18.60 20.94 20.17 24.94 28.82 34.84 37.65 39.48 Loans to individuals for personal expenditures........................... 27.61 24.33 30.19 26.12 26.24 30.29 27.46 23.89 29.03 29.61 23.20 26.38 28.16 11.31 15.45 15.11 20.48 12.34 12.94 14.59 9.91 11.00 10.67 10.31 9.01 8.80 Other ratios (per cent): Interest and fees on loans to loans.................................................. 7.84 7.95 7.99 7.51 8.18 8.14 7.76 8.13 8.06 7.76 7.67 7.66 7.55 Interest on time and savings deposits to time and savings deposits 6. 4.70 4.12 4.51 4.69 4.62 4.68 4.83 4.67 4.77 4.77 4.61 4.71 4.73 Income taxes to net income plus income taxes............................... 20.73 26.16 26.89 25.78 19.96 22.95 20.83 21.60 20.42 18.36 20.87 20.02 16.36 Time and savings deposits to total deposits.................................... 54.94 21.44 30.40 33.15 45.87 45.71 45.50 55.10 55.20 55.07 67.48 67.50 66.81 Total capital accounts and reserves to total assets7....................... 8.79 12.61 9.86 9.13 10.61 8.92 8.56 9.93 8.50 8.26 9.53 8.25 7.77 Number of banks8.................................................................................. 5,647 192 277 184 164 540 353 267 980 533 268 1,299 590 For notes see p. A-107. JULY 1972 □ MEMBER BANKS, 1971 A 105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY FEDERAL RESERVE DISTRICT (Averages of individual ratios expressed as percentages) All New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Item districts Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............. 10.10 9.40 9.38 9.21 10.20 10.90 11.00 9.91 10.79 9.85 10.37 9.83 8.57 Net income..................................................................................... 10.83 10.19 10.00 9.78 10.96 11.47 11.74 10.88 11.40 10.52 10.93 10.67 9.79 Percentage of net income: Cash dividends paid....................................................................... 28.25 39.23 33.43 32.18 29.16 29.17 25.08 26.89 25.61 25.23 29.74 25.91 26.55 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................... 5.06 5.21 5.09 4.87 4.82 4.97 5.19 5.04 4.64 5.25 5.10 5.10 6.04 Salaries, wages, and fringe benefits.......................................... 1.40 1.82 1.48 1.14 1.18 1.37 i .46 1.30 1.25 1.34 1.54 1.53 1.84 Interest on time and savings deposits...................................... 2.30 1.66 2.28 2.62 2.41 2.29 2.18 2.53 2.19 2.73 2.14 1.95 2.35 Occupancy expense of bank premises, net.............................. .20 .31 .24 .16 .16 .20 .21 .19 .17 .16 .19 .23 .31 All other operating expenses..................................................... 1.16 1.42 1.09 .95 1.07 1.11 1.34 1.02 1.03 1.02 1.23 1.39 1.54 Total operating income................................................................. 6.21 6.41 6.11 5.95 5.99 6.25 6.34 6.11 5.90 6.31 6.37 6.23 7.01 Income after taxes and before securities gains (losses)1............. .85 .86 .79 .82 .91 .92 .90 .79 .92 .76 .91 .84 .68 Net income..................................................................................... .91 .93 .85 .87 .98 .96 .98 .86 .97 .81 .95 .91 .77 Percentage of total operating income: ......................................... 63.49 68.08 64.81 66.81 63.98 Inte6r5e.s1t,8 fees,6 a0n.7d7 other6 1lo.8a9n inco6m0.e228 f2 58 64.47 64.23 65.38 Securities—Interest and dividends:3 U.S. Treasury securities............................................................. 14.75 10.26 12.19 13.66 17.00 13.48 12.47 17.15 18.55 15.62 15.51 12.06 11.03 Other U.S. Govt, securities (agencies and corporations)........ 4.60 1.85 3.32 3.88 2.98 5.47 5.45 4.55 6.25 6.27 3.64 5.56 3.94 Obligations of States and political subdivisions...................... 8.47 7.86 10.29 8.52 9.28 8.53 10.21 6.21 8.28 7.57 7.51 8.46 6.68 All other securities..................................................................... .61 .76 1.00 1.69 .61 .36 .46 .89 .59 .33 .21 .45 .40 (Service charges on deposit accounts4)....................................... (4.20) (5.80) (4.24) (2.40) (2.92) (3.06) (5.55) (3.37) (3.00) (3.86) (5.00) (5.50) (6.85) (Trust department income4)........................................................ (2.16) (3.45) (2.98) (2.07) (2.34) (1.90) (2.19) (2.00) (1.65) (2.03) (1.81) (1.68) (2.49) All other operating income........................................................... 8.08 11.19 8.39 5.44 6.15 6.98 10.64 7.31 6.05 7.63 8.66 9.24 12.57 Total operating income..................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages......................................................................... 20.02 24.47 21.07 16.70 17.33 19.28 20.31 18.91 18.87 18.65 21.67 22.36 23.19 Officer and employee benefits....................................................... 2.65 3.91 3.22 2.49 2.45 2.62 2.73 2.59 2.42 2.63 2.61 2.30 2.95 Interest on: Time and savings deposits......................................................... 37.24 26.02 37.50 44.22 40.47 36.84 34.75 41.54 37.21 43.56 33.74 31.52 34.10 Borrowed money........................................................................ .47 .80 .70 .26 .28 .36 .58 .43 .38 .31 .50 .49 1.12 (Capital notes and debentures4).............................................. (.1.14) C98) (1.03) (.98) (1.21) (1.30) (.97) (1.21) (1.22) (1.16) (1.49) (1.20) (.80) Occupancy expense of bank premises, net.................................. 3.32 4.88 4.10 2.91 2.86 3.35 3.44 3.24 2.97 2.72 2.99 3.72 4.48 Provision for loan losses............................................................... 2.31 2.07 2.19 1.27 1.73 1.96 2.59 1.71 1.96 1.70 2.88 4.02 3.43 All other operating expenses......................................................... 15.38 19.00 14.40 14.10 15.42 15.00 17.43 14.18 14.68 13.60 15.44 17.14 16.46 Total operating expenses1................................................. 81.39 81.15 83.18 81.95 80.54 79.41 81.83 82.60 78.49 83.17 79.83 81.55 85.73 Income before taxes and securities gains (losses)........................ 18.61 18.85 16.82 18.05 19.46 20.59 18.17 17.40 21.51 16.83 20.17 18.45 14.27 Income after taxes and before securities gains (losses)............... 14.02 13.78 13.16 14.10 15.45 15.10 14.43 13.12 15.96 12.32 14.51 14.06 10.25 Net securities gains or losses (—), after taxes............................. .84 .83 .90 .64 1.04 .67 .82 1.12 .73 .62 .67 .81 1.01 All other income (net)................................................................... .04 .06 .04 .10 .07 .03 .02 .05 .08 .03 .07 .01 Net income1................................................................................... 14.90 14.67 14.10 14.84 16.56 15.77 15.28 14.26 16.74 13.02 15.21 14.94 11.27 A 106 MEMBER BANKS, 1971 □ JULY 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends ;3 5.77 5.99 5.79 5.78 5.70 5.90 5.80 5.85 5.80 5.45 5.79 5.75 5.81 Other U.S. Govt, securities (agencies and corporations)............ 5.08 4.06 5.03 5.22 4.98 5.67 5.59 4.75 5.31 5.67 4.39 5.47 5.20 Obligations of States and political subdivisions.......................... 4.16 4.37 4.18 3.92 4.19 3.90 4.31 4.15 4.06 4.28 4.14 4.18 4.30 All other securities........................................................................ 5.94 6.81 6.58 6.11 6.23 6.20 5.68 5.95 5.02 5.72 5.82 5.63 7.47 On loans:2 Interest, fees, and other loan income........................................... 8.25 8.28 7.71 7.58 7.81 8.23 8.70 7.92 8.07 7.94 8.69 9.02 8.83 Net loan losses (—) or recoveries5............................................... -.24 -.23 -.21 -.12 -.19 -.18 -.29 -.19 -.20 -.18 -.33 -.33 -.43 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities............................................................. 15.50 11.00 12.76 13.94 17.62 13.86 13.39 17.45 18.61 18.02 16.65 12.58 12.41 Other U.S. Govt, securities (agencies and corporations)........ 4.37 1.86 3.19 3.52 2.66 4.98 5.38 4.30 5.74 6.26 3.44 5.23 4.42 Obligations of States and political subdivisions...................... 12.19 12.00 14.82 12.28 12.94 12.72 14.40 11.77 11.54 10.99 10.93 12.19 10.46 All other securities.................................................................... .61 .78 .92 1.63 .58 .40 .51 .85 .44 .34 .29 .54 .46 51.80 57.54 54.28 56.88 52.94 53.34 48.78 51.51 47.58 51.51 52.06 49.32 55.18 13.12 14.18 11.50 9.74 11.16 12.17 14.28 11.80 13.99 10.83 14.63 17.48 13.25 Real estate assets........................................................................... 1.64 1.95 1.52 1.48 1.54 1.91 2.17 1.50 1.51 1.40 1.38 1.86 2.23 Percentage of gross loans:2 Commercial and industrial loans................................................. 19.60 27.08 20.82 15.10 14.26 16.43 24.13 17.51 17.37 17.54 18.62 25.49 26.30 Loans to farmers............................................................................ 13.82 1.37 3.29 4.00 5.90 3.64 3.45 14.43 14.00 24.48 32.84 16.98 7.54 Real estate loans............................................................................ 27.66 27.92 35.75 43.57 37.44 32.74 23.83 33.01 30.06 29.97 14.72 13.64 26.95 Loans to individuals for personal expenditures........................... 27.61 32.14 27.99 25.01 32.26 35.46 34.63 24.20 27.42 21.90 22.60 29.14 27.95 All other loans2............................................................................. 11.31 11.49 12.15 12.32 10.14 11.73 13.96 10.85 11.15 6.11 11.22 13.75 11.26 Other ratios (per cent): 7.84 7.88 7.43 7.17 7.41 7.89 8.17 7.53 7.73 7.77 8.14 8.44 8.54 Interest on time and savings deposits to time and savings deposits6. 4.70 4.45 4.44 4.48 4.42 4.59 4.77 4.70 4.77 4.90 4.77 4.89 4.77 Income taxes to net income plus income taxes............................... 20.73 23.74 16.71 18.17 17.32 23.30 17.35 21.58 22.38 21.53 24.58 18.05 24.61 Time and savings deposits to total deposits.................................... 54.94 43.12 58.74 66.19 61.47 56.34 51.66 59.99 51.02 62.22 49.76 44.68 56.49 Total capital accounts and reserves to total assets7....................... 8.79 9.39 9.17 9.29 9.16 8.93 8.55 8.36 8.90 8.02 9.01 9.04 8.16 Number of banks 8.......................................................................................... 5,647 226 329 306 468 354 522 931 457 487 792 628 147 1 Excludes minority interest in operating income, if any. 8 The ratios for 80 member banks in operation at the end studying the financial results of operations of individual banks, 2 Loans include Federal funds sold and securities purchased of 1971 were excluded from the compilations because of un­ while ratios based on aggregates show combined results for under agreements to resell. availability of data covering the complete year’s operations, the banking system as a whole and, broadly speaking, are the 3 Excludes trading-account securities. certain accounting adjustments, lack of comparability, and more significant for purposes of general analyses of credit 4 Averages exclude banks not reporting these items, or re­ so forth. and monetary problems. porting negligible amounts. Figures of revenue, expenses, and so forth, used in the 5 Net losses for banks on a valuation-reserve basis are the Note.—These ratios, being arithmetic averages of the calculations were taken from the annual income and dividends excess of actual losses over actual recoveries credited and operating ratios of individual member banks, differ in many reports for 1971. Balance sheet figures used in the compila­ charged to valuation reserves; net recoveries are the reverse. cases from corresponding ratios computed from aggregate tions were obtained by averaging the amounts shown in each For all other banks, net losses are the amount deducted from dollar amounts shown in the May 1972 issue of the Bulletin. bank’s official condition reports submitted for Dec. 31, 1970, operating income as an operating expense. Such differences result from the fact that each bank’s figures June 30, 1971, and Dec. 31, 1971. Savings deposits are in­ 6 Banks reporting no interest paid on time deposits were have an equal weight in calculation of the averages, whereas cluded in the time deposits figures used in these tables. excluded in computing this average. the figures of the many small and medium-sized banks have For details concerning comparability of income and related res 7 e r I v n e c s l . udes capital notes and debentures and all valuation i l n it d tl i e v i i d n u fl a u l e n ra c t e i o o s n a t r h e e u a s g e g f r u e l g p at r e im d a o r l i l l a y r t a o m t o h u o n s t e s . in A t v e e re ra s g te e d s o in f p d p at . a 5 6 fo 4 r - 7 1 2 9 . 69 and earlier years, see Bulletin for July 1970, JULY 1972 □ MEMBER BANKS, 1971 A 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JULY 1972 □ BUSINESS LOANS OF BANKS A 109 COMMERCIAL AND INDUSTRIAL LOANS AT ALL COMMERCIAL BANKS (In billions of dollars) Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted 1959. i 35.5 i 35.7 1 35.8 i 36.2 i 37.0 37.4 38.1 38.3 38.5 38.8 39.1 39.4 1960. 40.0 40.3 40.6 41.1 41.3 41.4 41.5 41.5 41.8 41.9 42.0 42.1 1961 . 42.1 42.3 42.5 42.5 42.5 42.4 42.7 42.9 43.0 43.2 43.3 43.9 1962. 44.0 44.1 44.6 44.8 45.2 45.5 45.7 46.3 46.7 47.0 47.4 47.6 1963. 47.9 48.1 48.4 48.7 49.0 49.4 49.6 49.7 50.1 50.8 51.5 52.1 1964. 52.4 52.8 53.0 53.5 54.0 54.5 54.9 55.5 56.1 56.6 57.3 58.4 1965. 59.5 60.7 61.8 62.8 63.6 64.4 65.3 65.9 66.8 67.6 68.4 69.5 1966. 70.4 71.4 72.2 73.1 74.1 75.7 76.8 77.6 78.1 78.6 78.7 78.6 1967. 79.6 80.1 81.0 81.6 82.0 82.9 83.6 83.7 84.3 84.3 84.9 86.2 1968. 86.4 87.0 87.9 88.7 89.2 89.6 90.6 91.6 92.4 93.6 95.2 95.9 1969. 97.6 98.7 99.9 101.2 102.3 102.4 102.7 103.4 104.2 104.6 105.1 105.7 1970. 105.2 105.1 105.1 105.3 105.5 106.2 107.0 108.5 109.5 109.4 109.3 109.6 1971 . 110.3 111.3 111.1 111.7 112.6 112.1 113.2 115.2 116.2 116.6 116.0 115.5 Not seasonally adjusted 1959. i 35.0 i 35.1 i 35.8 i 36.0 i 36.9 37.8 37.8 38.2 38.7 38.8 39.4 40.2 1960. 39.4 39.8 40.9 40.9 41.3 41.9 41.2 41.2 41.8 41.8 42.3 43.1 1961 . 41.5 41.9 42.8 42.4 42.3 42.8 42.3 42.5 43.0 43.2 43.6 45.2 1962. 43.4 43.7 44.8 44.7 45.0 45.9 45.2 45.8 46.7 47.1 47.7 49.1 1963. 47.3 47.7 48.6 48.6 48.8 49.9 49.0 49.2 50.1 50.6 51.9 53.7 1964. 51.8 52.4 53.2 53.4 53.9 55.1 54.4 54.9 56.1 56.3 57.4 60.2 1965. 58.9 60.3 62.2 62.5 63.4 65.5 64.8 65.5 66.8 67.1 68.3 71.4 1966. 69.7 70.7 72.6 72.8 74.0 77.2 77.1 76.7 77.9 78.0 78.6 80.6 1967. 78.9 79.1 81.1 81.8 81.7 84.5 84.1 82.6 84.0 83.8 84.6 88.4 1968. 85.7 85.9 87.8 89.2 88.7 91.4 91.3 90.3 92.1 92.7 94.7 98.4 1969. 96.5 97.7 99.7 101.6 101.8 104.4 103.1 102.0 103.8 103.6 104.4 108.4 1970, 104.1 104.0 104.9 105.5 105.2 108.4 107.3 107.1 109.4 108.4 108.8 112.5 1971 , 109.1 110.3 111.2 111.6 112.4 114.4 113.4 114.2 115.9 115.6 115.6 118.5 Plus sales to affiliates—Seasonally adjusted2 1969 103.1 103.7 104.6 105.6 106.7 107.9 108.5 108.3 1970 109.6 110.1 110.4 110.9 111.9 112.7 113.3 114.5 113.2 112.6 112.0 111.7 1971 112.4 113.4 113.0 113.6 114.5 114.0 115.0 117.0 118.1 118.4 117.8 117.1 Plus sales to affiliates—Not seasonally adjusted2 1969 102.6 105.7 105.0 104.2 106.3 106.9 107.8 111.0 1970 i08.5 109.0 110.2 111.1 111.6 114.9 113.6 113.1 113.1 111.6 111.5 114.6 1971 111.2 112.4 113.1 113.5 114.3 116.3 115.2 116.0 117.8 117.4 117.4 120.1 l ] mform with changes in definition of commercial and Note.—Data are for last Wednesday of month except for June 30 and indu: une 1959 when loans to sales finance companies and Dec. 31; data are partly estimated except when June 30 and Dec. 31 are loan companies were excluded from commercial and in- call dates. dusti 2 ] ss loans sold outright by commercial banks to own l branches, holding companies, and other affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 110 B O A R D O F G O V E R N O R S O F T H E F E D E R A L R E S E R V E S Y S T E M Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher 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 Robert L. Cardon, 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. Melnicoff, 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 Eleanor J. Stockwell, Assistant Adviser OFFICE OF THE SECRETARY Stephen P. Taylor, Assistant Adviser Tynan Smith, Secretary Louis Weiner, 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 A. B. Hersey, Senior Adviser Robert F. Gemmill, Adviser Reed J. Irvine,Adviser LEGAL DIVISION Samuel I. Katz, Adviser Thomas J. O’Connell, General Counsel Bernard Norwood, Adviser Paul Gardner, Jr. , Assistant General Counsel Samuel Pizer, Adviser Pauline B. Heller, Assistant General Counsel Ralph C. Wood, Adviser Robert S. Plotkin, Adviser George B. Henry, Assistant Adviser Helen B. Junz, Assistant 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. Walcutt, Assistant Director John T. McClintock, Assistant Director E. Maurice McWhirter, Chief Federal Thomas A. Sidman, Assistant Director Reserve Examiner Charles L. Marinaccio, Adviser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 111 B O A R D O F G O V E R N O R S C o n tin u ed DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER Ronald G. Burke, Director John Kakalec, Controller John J. Hart, Assistant Director Harry J. H alley, Deputy Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director DIVISION OF ADMINISTRATIVE SERVICES C harles L. Hampton, Associate Director G lenn L. Cummins, Assistant Director Joseph E. K elleher, Director Benjamin R. W. K nowles, Jr., W alter W. Kreimann, Deputy Director Assistant Director D onald E. Anderson, Assistant Director Henry W. M eetze, Assistant Director John D. Smith, Assistant Director Richard S. W att, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 F E D E R A L O P E N M A R K E T C O M M IT T E E Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer J. Dewey Daane J. L. Robertson Jeffrey M. Bucher David P. Eastburn John E. Sheehan Philip E. Coldwell Bruce K. MacLaury W illis J. Winn George W. M itchell R obert C. H olland, Secretary R obert Solom on, Economist (International Finance) A rthur L. Broida, Deputy Secretary Edw ard G. Boehne, Associate Economist M urray A ltm ann, Assistant Secretary Ralph C. B ryant, Associate Economist Norm and R. V. B ernard, Assistant Secretary Lyle E. G ram ley, Associate Economist H ow ard H. H ackley, General Counsel Ralph T. G reen, Associate Economist Thomas J. O’C onnell, Assistant General Counsel A. B. Hersey, Associate Economist J. C harles Partee, Senior Economist W illiam J. H octer, Associate Economist John H. K areken, Associate Economist Stephen H. A xilrod, Economist (Domestic Finance) R obert G. Link, Associate Economist A lan R. Holmes, Manager, System Open Market Account C harles A. Coombs, Special Manager, System Open Market Account F E D E R A L A D V IS O R Y C O U N C IL A. W. C lausen, tw elfth federal reserve district, President G. M orris D orrance, Jr., third federal reserve district, Vice President James F. English, first federal Gaylord Freeman, seventh federal RESERVE DISTRICT RESERVE DISTRICT David Rockefeller, second David H. M orey, eighth federal federal reserve district RESERVE DISTRICT John S. Fangboner, fourth federal Chester C. Lind, ninth federal reserve district RESERVE DISTRICT Joseph W. Barr, fifth federal Morris F. Miller, tenth federal reserve district RESERVE DISTRICT Harry Hood Bassett, sixth federal Lewis H. Bond, eleventh federal RESERVE DISTRICT RESERVE DISTRICT H erbert V. Prochnow , Secretary W illiam J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 113 F E D E R A L R E S E R V E B A N K S A N D B R A N C H E S 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. Boy sen 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 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 114 F E D E R A L R E S E R V E B O A R D P U B L IC A T IO N S 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 are not accepted.) ANNUAL REPORT 36 pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per Currency. 1963. 11 pp. $.35. Sec. 12. Money annum or $.60 a copy in the United States and Rates and Securities Markets. 1966. 182 pp. its possessions, Bolivia, Canada, Chile, Colom­ $.65. Sec. 14. Gold. 1962. 24 pp. $.35. Sec. bia, Costa Rica, Cuba, Dominican Republic, 15. International Finance. 1962. 92 pp. $.65. Ecuador, Guatemala, Haiti, Republic of Hon­ Sec. 16 (New). Consumer Credit. 1965. 103 pp. duras, Mexico, Nicaragua, Panama, Paraguay, $.65. Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue sent to one address, $5.00 INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. per annum or $.50 each. Elsewhere, $7.00 per 172 pp. $1.00 a copy; 10 or more sent to one annum or $.70 a copy. address, $.85 each. FEDERAL RESERVE CHART BOOK ON FINANCIAL BANK MERGERS & THE REGULATORY AGENCIES: AND BUSINESS STATISTICS. Monthly. Annual APPLICATION OF THE BANK MERGER ACT OF subscription includes one issue of Historical 1960. 1964 . 260 pp. $1.00 a copy; 10 or more Chart Book. $6.00 per annum or $.60 a copy sent to one address, $.85 each. in the United States and the countries listed above; 10 or more of same issue sent to one BANKING MARKET STRUCTURE & PERFORMANCE IN address, $.50 each. Elsewhere, $7.00 per annum METROPOLITAN AREAS: A STATISTICAL STUDY OF or $.70 a copy. FACTORS AFFECTING RATES ON BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or more sent to HISTORICAL CHART BOOK. Issued annually in Sept. one address, $.40 each. Subscription to monthly chart book includes one issue. $.60 a copy in the United States and THE PERFORMANCE OF BANK HOLDING COMPA­ countries listed above; 10 or more sent to one NIES. 1967. 29 pp. $.25 a copy; 10 or more sent address, $.50 each. Elsewhere, $.70 a copy. to one address, $.20 each. THE FEDERAL RESERVE ACT, as amended through THE FEDERAL FUNDS MARKET. 1959. Ill pp. December 1971, with an appendix containing $1.00 a copy; 10 or more sent to one address, provisions of certain other statutes affecting the $.85 each. Federal Reserve System. 252 pp. $1.25. TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 REGULATIONS OF THE BOARD OF GOVERNORS OF a copy; 10 or more sent to one address, $.85 THE FEDERAL RESERVE SYSTEM. each. PUBLISHED INTERPRETATIONS OF THE BOARD OF U.S. TREASURY ADVANCE REFUNDING, JUNE GOVERNORS, as of Dec. 31, 1971. $2.50. 1960-JULY 1964. 1966 . 65 pp. $.50 a copy; 10 or more sent to one address, $.40 each. FLOW OF FUNDS IN THE UNITED STATES, 1939-53. 1955. 390 pp. $2.75. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 pp. $1.00 a copy; 10 or more sent DEBITS AND CLEARING STATISTICS AND THEIR USE. to one address, $.85 each. 1959. 144 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. INTEREST RATE EXPECTATIONS: TESTS ON YIELD SPREADS AMONG SHORT-TERM GOVERNMENT SUPPLEMENT TO BANKING AND MONETARY STA­ SECURITIES. 1968. 83 pp. $.50 a copy; 10 or TISTICS. Sec. 1. Banks and the Monetary Sys­ more sent to one address, $.40 each. tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. SURVEY OF FINANCIAL CHARACTERISTICS OF 36 pp. $.35. Sec. 6. Bank Income. 1966. 29 CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 pp. $.35. Sec. 9. Federal Reserve Banks. 1965. or more sent to one address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 115 SURVEY OF CHANGES IN FAMILY FINANCES. 1968. FINAL DEMAND, by Clayton Gehman and Corne­ 321 pp. $1.00 a copy; 10 or more sent to one lia Motheral. Jan. 1967. 57 pp. address, $.85 each. OPERATING POLICIES OF BANK HOLDING COMPA­ REPORT OF THE JOINT TREASURY-FEDERAL RE­ NIES—PART 1, by Robert J. Lawrence. Apr. SERVE STUDY OF THE U.S. GOVERNMENT SE­ 1971, 82 pp. CURITIES MARKET. 1969. 48 pp. $.25 a copy; THE RELATIVE IMPORTANCE OF MONETARY AND 10 or more sent to one address, $.20. FISCAL VARIABLES IN DETERMINING PRICE LEVEL JOINT TREASURY-FEDERAL RESERVE STUDY OF MOVEMENTS: A NOTE, byPeter S. Rose and Lacy THE GOVERNMENT SECURITIES MARKET: STAFF H. Hunt II. June 1971. 7 pp. STUDIES—PART 1 (papers by Cooper, Bernard, ESTIMATION OF THE INVESTMENT AND PRICE and Scherer). 1970. 86 pp. $.50 a copy; 10 or EQUATIONS OF A MACROECONOMETRIC MODEL, more sent to one address, $.40 each. PART 2 by Robert J. Shiller. June 1971. 65 pp. (papers by Ettin, Peskin, and Ahearn and Peskin). 1971. 153 pp. $1.00 a copy; 10 or more ADJUSTMENT AND DISEQUILIBRIUM COSTS AND sent to one address, $.85 each. THE ESTIMATED BRAINARD—TOBIN MODEL, by Joseph Bisignano. July 1971. 108 pp. (Limited supplies, in mimeographed or simi­ lar form, of staff papers other than those A TEST OF THE “EXPECTATIONS HYPOTHESIS” contained in Parts 1 and 2 are available upon USING DIRECTLY OBSERVED WAGE AND PRICE request for single copies. See p. 48 of main EXPECTATIONS, by Stephen J. Turnovsky and report for a list of such papers.) Michael L. Wachter. Aug. 1971. 25 pp. OPEN MARKET POLICIES AND OPERATING PROCE­ MORTGAGE REPAYMENTS AS A SOURCE OF DURES—STAFF STUDIES (papers by Axilrod, LOANABLE FUNDS, by Robert Moore Fisher. Davis, Andersen, Kareken et al., Pierce, Fried­ Aug. 1971. 43 pp. man, and Poole). 1971. 218 pp. $2.00 a copy; 10 or more sent to one address, $1.75 each. THE USE OF INTEREST RATE POLICIES AS A STIMU­ LUS TO ECONOMIC GROWTH, by Robert F. REAPPRAISAL OF THE FEDERAL RESERVE DIS­ Emery. Sept. 1971. 37 pp. COUNT MECHANISM, Vol. 1 (papers by Steering Committee, Shull, Anderson, andGarvy). 1971. PRIVATE HOUSING COMPLETIONS—A NEW DIMEN­ 276 pp. Vol. 2 (papers by Boulding, Chandler, SION IN CONSTRUCTION STATISTICS, by Bernard Jones, Ormsby, Modigliani, Alperstein, Meli- N. Freedman. Jan. 1972. 20 pp. char, and Melichar and Doll). 1971. 173 pp. POLICY VARIABLES, UNEMPLOYMENT AND PRICE Vol. 3 (papers by Staats, Willis, Minsky, LEVEL CHANGES, by Peter S. Rose and Lacy H. Stackhouse, Meek, Holland and Garvy, and Hunt II. Jan. 1972. 11 pp. Lynn). 1972. 220 pp. Each volume $3.00 a copy; 10 or more sent to one address, $2.50 each. OPTIMAL DISTRIBUTED LAG RESPONSES AND EX­ PECTATIONS, by Roger Craine. Feb. 1972. 9 pp. A limited supply of the following mimeo­ graphed paper is available upon request for THE EFFECT OF HOLDING COMPANY ACQUISITIONS single copies: ON BANK PERFORMANCE, by Samuel H. Talley. Feb. 1972. 25 pp. ACADEMIC VIEWS ON IMPROVING THE FEDERAL RESERVE DISCOUNT MECHANISM. 1970. 172 pp. INTERNATIONAL MONEY MARKETS AND FLEXIBLE EXCHANGE RATES, by Stanley W. Black. Mar. 1972. 74 pp. STAFF ECONOMIC STUDIES EXPLAINING CHANGES IN EURO-DOLLAR POSI­ Studies and papers on economic and financial TIONS: A STUDY OF BANKS IN FOUR EUROPEAN subjects that are of general interest in the field COUNTRIES, by Rodney H Mills, Jr. May 1972. of economic research. 34 pp. CREDIT RATIONING: A REVIEW, by Benjamin M. Summaries only printed in the BULLETIN. Friedman. June 1972. 27 pp. (Limited supply of mimeographed copies of full text available upon request for single copies.) REGULATION Q AND THE COMMERCIAL LOAN MAR­ KET IN THE 1960’s, by Benjamin M. Friedman. MEASURES OF INDUSTRIAL PRODUCTION AND June 1972. 38 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 FEDERAL RESERVE BULLETIN c JULY 1972 Printed in full in the BULLETIN. UNDERWRITING OF MUNICIPAL REVENUE BONDS. (These studies are included in list of reprints Aug. 1967. 16 pp. below.) THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL. REPRINTS Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL LIQUIDITY AND PUBLIC POLICY, Staff Paper by GOVERNMENTS IN 1966. July 1968. 30 pp. Stephen H. Axilrod. Oct. 1961. 17 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 18 pp. July 1962. 6 pp. BUSINESS FINANCING BY BUSINESS FINANCE COM­ INTEREST RATES AND MONETARY POLICY, Staff PANIES. Oct. 1968. 13 pp. Paper by Stephen Axilrod. Sept. 1962. 28 pp. MANUFACTURING CAPACITY: A COMPARISON OF MEASURES OF MEMBER BANK RESERVES. July TWO SOURCES OF INFORMATION, Staff Eco- 1963. 14 pp. nomic Study by Jared J. Enzler. Nov. 1968. 5 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 1963. 8 pp. MONETARY RESTRAINT, BORROWING, AND CAPITAL SPENDING BY SMALL LOCAL GOVERNMENTS AND REVISION OF BANK DEBITS AND DEPOSIT TURN­ STATE COLLEGES IN 1966. Dec. 1968. 30 pp. OVER SERIES. Mar. 1965. 4 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. TIME DEPOSITS IN MONETARY ANALYSIS, Staff 1968. 21 pp. Economic Study by Lyle E. Gramley and Sa­ muel B. Chase, Jr. Oct. 1965. 25 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. RESEARCH ON BANKING STRUCTURE AND PER­ FORMANCE, Staff Economic Study by Tynan OUR PROBLEM OF INFLATION. June 1969. 15 pp. Smith. Apr. 1966. 11 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco- A REVISED INDEX OF MANUFACTURING CAPACITY, nomic Study by Frank de Leeuw and Edward Staff Economic Study by Frank de Leeuw with Gramlich. June 1969. 20 pp. Frank E. Hopkins and Michael D. Sherman. Nov. 1966. 11 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. Aug. 1969. 5 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS, Staff Economic Study by EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. Daniel H. Brill with Ann P. Ulrey. Jan. 1967. 20 pp. 14 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ REVISED SERIES ON COMMERCIAL AND INDUS­ CIAL BANKING. Mar. 1970. 16 pp. TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND SURVEY OF FINANCE COMPANIES, MID-1965. Apr. STATISTICS. May 1970. 4 pp. 1967. 26 pp. INFLATION IN WESTERN EUROPE AND JAPAN. Oct. EVIDENCE ON CONCENTRATION IN BANKING MAR­ 1970. 13 pp. KETS AND INTEREST RATES, Staff Economic Study by Almarin Phillips. June 1967. 11 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. 11 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. INTEREST COST EFFECTS OF COMMERCIAL BANK 1971. 26 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 117 BANK FINANCING OF MOBILE HOMES. Mar. 1971. CHANGES IN TIME AND SAVINGS DEPOSITS, 4 pp. JULY-OCTOBER 1971. Jan. 1972. 14 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS ASSETS AND LIABILITIES OF FOREIGN BRANCHES TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 OF U.S. BANKS. Feb. 1972. 16 pp. pp. TREASURY-FEDERAL RESERVE FOREIGN EX­ INTEREST RATES, CREDIT FLOWS, AND MONETARY CHANGE OPERATIONS. Mar. 1972. 29 pp. AGGREGATES SINCE 1964. June 1971. 16 pp. WAYS TO MODERATE FLUCTUATIONS IN THE TWO KEY ISSUES OF MONETARY POLICY. June CONSTRUCTION OF HOUSING. Mar. 1972. 11 pp. 1971. 4 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT SURVEY OF DEMAND DEPOSIT OWNERSHIP. June POSITION. Apr. 1972. 15 pp. 1971. 12 pp. OPEN MARKET OPERATIONS AND THE MONETARY BANK RATES ON BUSINESS LOANS—REVISED AND CREDIT AGGREGATES—1971. Apr. 1972. 23 SERIES. June 1971. 10 pp. pp. INDUSTRIAL PRODUCTION—REVISED AND NEW CHANGES IN BANK LENDING PRACTICES, 1971. Apr. MEASURES. July 1971. 26 pp. 1972. 5 pp. BANKING AND MONETARY STATISTICS, 1970. Se­ FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER lected series of banking and monetary statistics OF 1972. May 1972. 9 pp. for 1970 only. Feb., Mar., and July 1971. 19 pp. CONSTRUCTION LOANS AT COMMERCIAL BANKS. June 1972. 12 pp. REVISED MEASURES OF MANUFACTURING CAPAC­ ITY UTILIZATION. Oct. 1971. 3 pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. June 1972. 5 pp. REVISION OF THE MONEY STOCK. Nov. 1971. 14 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. June 1972. 10 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN­ CHANGES IN TIME AND SAVINGS DEPOSITS AT CIAL INSTITUTIONS. Nov. 1971. 11 pp. COMMERCIAL BANKS, JANUARY—APRIL 1972. July 1972. 11 pp. REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ pp. OVER—REVISED SERIES. July 1972. 5 pp. PLANNED AND ACTUAL LONG-TERM BORROWING RECENT REGULATORY CHANGES IN RESERVE BY STATE & LOCAL GOVERNMENTS. Dec. 1971. REQUIREMENTS AND CHECK COLLECTION. 11 pp. July 1972. 5 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 901-A hguorht 4-A segap o t era secnerefeR( A 118 FEDERAL RESERVE BULLETIN c JULY 1972 IN D E X T O S TA TIS TIC A L T A B L E S (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 Banks, by classes, 11, 20, 25, 29, 99-101 Arbitrage, 95 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners): corporations, 32 Banks, by classes, 20, 24, 25, 26, 39, 99-101 Subject to reserve requirements, 18 Banks and the monetary system, 19, 98 Turnover, 15 Corporate, current, 50 Deposits (See also specific types of deposits): Federal Reserve Banks, 12 Accumulated at commercial banks for payment of per­ Automobiles: sonal loans, 32 Consumer instalment credit, 56, 57, 58 Adjusted, and currency, 19, 98 Production index, 60, 61 Banks, by classes, 11, 20, 25, 29, 39, 99-101 Euro-dollars, 90 Bank credit proxy, 18 Federal Reserve Banks, 12, 90 Bankers’ balances, 25, 28 Postal savings, 19, 25, 98 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 18 Banking and monetary statistics for 1971, 98 Discount rates (See Interest rates) Banks and the monetary system, 19 Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 40 Dividends, corporate, 50 Bonds (See also U.S. Govt, securities): Dollar assets, foreign, 77, 83 New issues, 47, 48, 49 Yields and prices, 36, 37 Earnings and hours, manufacturing industries, 67 Branch banks: Employment, 64 , 66, 67 Foreign, 30, 88, 89, 90 Euro-dollar deposits in foreign branches of U.S. banks, 90 Brokerage balances, 87 Business expenditures on new plant and equipment, 50 Farm mortgage loans, 51, 52 Business indexes, 64 Federal agency obligations, 12, 13, 14, 15 Business loans (See Commercial and industrial loans) Federal finance: Cash transactions, 42 Capacity utilization, 64 Receipts and expenditures, 43 Capital accounts: Treasury operating balance, 42 Banks, by classes, 20, 25, 30, 99-101 Federal funds, 8, 24, 26, 30, 35 Federal Reserve Banks, 12 Federal home loan banks, 40, 41, 53 Central banks, 94, 96 Federal Home Loan Mortgage Corporation, 55 Certificates of deposit, 30 Federal Housing Administration, 51, 52, 53, 54, 55 Coins, circulation, 16 Federal intermediate credit banks, 40, 41 Commercial and industrial loans: Federal land banks, 40, 41 Commercial banks, 24, 33, 109 Federal National Mortgage Assn., 40, 41, 54 Weekly reporting banks, 26, 31 Federal Reserve Banks: Commercial banks: Condition statement, 12 Assets and liabilities, 20, 24, 25, 26, 99-101 U.S. Govt, securities held, 4, 12, 15, 44, 45 Consumer loans held, by type, 57 Federal Reserve credit, 4, 6, 12, 15 Deposits at, for payment of personal loans, 32 Federal Reserve notes, 12, 16 Loans sold outright, 33 Federally sponsored credit agencies, 40, 41 Number, by classes, 20, 99-101 Finance companies: Real estate mortgages held, by type, 52 Loans, 26, 56, 57, 59 Commercial paper, 33, 35 Paper, 33, 35 Condition statements (See Assets and liabilities) Financial institutions, loans to, 24, 26 Construction, 64, 65 Float, 4 Consumer credit: Flow of funds, 72 Instalment credit, 56, 57, 58, 59 Foreign: Noninstalment credit, by holder, 57 Currency operations, 12, 14, 77, 83 Consumer price indexes, 64, 68 Deposits in U.S. banks, 5, 12, 19, 25, 29, 90, 98 Consumption expenditures, 70, 71 Exchange rates, 93 Corporations: Trade, 75 Profits, taxes, and dividends, 50 Foreigners: Security issues, 48, 49 Claims on, 84, 85, 90, 91, 92 Security yields and prices, 36, 37 Liabilities to, 30, 78, 79, 81, 82, 83, 90, 91, 92 Cost of living (See Consumer price indexes) Currency and coin, 5, 10, 25 Gold: Currency in circulation, 5, 16, 17 Certificates, 12, 13, 16 Customer credit, stock market, 38 Earmarked, 90 Net purchases by U.S., 76 Debits to deposit accounts, 15 Production, 97 Debt (See specific types of debt or securities) Reserves of central banks and govts., 96 Demand deposits: Stock, 4, 19, 77, 98 Adjusted, banks and the monetary system, 19, 98 Government National Mortgage Assn., 54 Adjusted, commercial banks, 15, 18, 25 Gross national product, 70, 71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 119 Hours and earnings, manufacturing industries, 67 Production, 60-63, 64 Housing permits, 64 Profits, corporate, 50 Housing starts, 65 Real estate loans: Income, national and personal, 70, 71 Banks, by classes, 24, 27, 39, 52 Industrial production index, 60-63, 64 Delinquency rates on home mortgages, 55 Instalment loans, 56, 57, 58, 59 Mortgage yields, 53, 54, 55 Insurance companies, 39, 44, 45, 52, 53 Type of holder and property mortgaged, 51-55 Insured commercial banks, 22, 24, 32 Reserve position, basic, member banks, 8 Interbank deposits, 11, 20, 25, 99-101 Reserve requirements, member banks, 10 Interest rates: Reserves: Business loans by banks, 34 Central banks and govts., 96 Federal Reserve Banks, 9 Commercial banks, 25, 28, 30 Foreign countries, 94, 95 Federal Reserve Banks, 12 Money market rates, 35 Member banks, 5, 6, 11, 18, 25 Mortgage yields, 53, 54, 55 U.S. reserve assets, 77 Prime rate, commercial banks, 34 Residential mortgage loans, 37, 51, 52, 53, 54, 55 Time and savings deposits, maximum rates, 11 Retail credit, 56 Yields, bond and stock, 36 Retail sales, 64 International capital transactions of U.S., 78-92 International institutions, 76, 77, 94, 96 Saving: Inventories, 70 Flow of funds series, 72 Investment companies, issues and assets, 49 National income series, 71 Investments (See also specific types of investments): Savings and loan assns., 40, 45, 53 Banks, by classes, 20, 24, 27, 28, 39, 99-101 Savings deposits (See Time deposits) Commercial banks, 18, 109 Savings institutions, principal assets, 39, 40 Federal Reserve Banks, 12, 15 Securities (See also U.S. Govt, securities): Life insurance companies, 39 Federally sponsored agencies, 40, 41 Savings and loan assns., 40 International transactions, 86, 87 New issues, 47, 48, 49 Labor force, 66 Silver coin, 16 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 13, 19, 74, 77, 98 Banks, by classes, 20, 24, 26, 27, 39, 99-101 State and local govts.: Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34, 109 Deposits, 25, 29 Federal Reserve Banks, 4, 6, 9, 12, 13, 15 Holdings of U.S. Govt, securities, 44, 45 Insurance companies, 39, 52, 53 New security issues, 47, 48 Insured or guaranteed by U.S., 51, 52, 53, 54, 55 Ownership of securities of, 24, 28, 39 Savings and loans assns., 40, 53 Yields and prices of securities, 36, 37 State member banks, 22, 32 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, 99-101 Tax receipts, Federal, 43 Borrowings at Federal Reserve Banks, 6, 12 Time deposits, 11, 18, 19, 20, 25, 29, 98, 99-101 Deposits, by classes, 11 Treasury cash, Treasury currency, 4, 5, 16, 19, 98 Number, by classes, 20, 99-101 Treasury deposits, 5, 12, 42 Operating ratios, 102-07 Treasury operating balance, 42 Reserve position, basic, 8 Reserve requirements, 10 Unemployment, 66 Reserves and related items, 4, 18 U.S. balance of payments, 74 Mining, production index, 61, 63 U.S. Govt, balances: Mobile home shipments, 65 Commercial bank holdings, 25, 29 Money rates (See Interest rates) Consolidated condition statement, 19, 98 Money stock and related data, 17, 19 Member bank holdings, 18 Mortgages (See Real estate loans and Residential mortgage Treasury deposits at Reserve Banks, 5, 12, 42 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 19, 20, 24, 27, 39, 44, 45, 98, 99-101 Mutual savings banks, 19, 29, 39, 44, 45, 52, 98 Dealer transactions, positions, and financing, 46 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 National banks, 22, 32 Foreign and international holdings, 12, 83, 86, 90 National income, 70, 71 International transactions, 83, 86 National defense expenditures, 43, 70 New issues, gross proceeds, 48 Nonmember banks, 22, 24, 25, 32, 98 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Open market transactions, 14 Ownership of, 44, 45 Operating ratios, member banks, 102-07 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, 98 Veterans Administration, 51, 52, 53, 54, 55 Prices: Consumer and wholesale commodity, 64, 68 Weekly reporting banks, 26 Security, 37 Prime rate, commercial banks, 34 Yields (See Interest rates) )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 901-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Chicago j Omofo* ( _L IcincivnouT jyf . J- I St. Louis ‘r J '" I Oklahoma. City y| ■jttUiocA/ ^ n tX Dallas Jioustcm Miami January 1972 ‘DrambyH.W. ^alvi^Cart ☆ (c THE FEDERAL RESERVE SYSTEM g) a HAW AII J L e g e n d Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities • Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis