Federal Reserve Bulletin, 1972-08

Federal Reserve Bulletin AUGUST 1972 s s x O a * f^AL * * R E ^ * * * + 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 8 □ VOLUME 58 □ AUGUST 1972 687 Financial Developments in the Second Quarter of 1972 696 Statements to Congress 707 Record of Policy Actions of the Federal Open Market Committee 713 Law Department 744 Announcements 745 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 102 Board of Governors and Staff A 104 Open Market Committee and Staff; Federal Advisory Council A 105 Federal Reserve Banks and Branches A 106 Federal Reserve Board Publications A 110 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

Financial Developments in the Second Quarter of 1972 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in finan­ cial markets during the spring and early summer. SHORT-TERM INTEREST RATES, which had begun to rise in March, continued to move moderately upward during the second quarter along with the rapid expansion in economic activity. The sharpest increases occurred in the Federal funds rate and commer­ cial paper rates, with the latter reflecting the first significant increase in private nonbank demands on the money market since 1970. Larger-than-anticipated net repayment of debt by the Treasury, however, limited upward pressure in short-term markets, particu­ larly the Treasury bill market. Near the end of the quarter large foreign central bank support of the U.S. dollar also created market expectations of reduced rate pressures resulting from foreign central bank purchases of Treasury debt including special issues. However, the full impact of such purchases on short-term rates did not develop until July. Long-term interest rates, on the other hand, fluctuated in a narrow range, and bond yields ended the quarter only slightly higher than in March. The relative stability of longer-term interest rates, despite the rise in short-term rates, reflected mainly a continued smaller volume of public bond offerings, compared with the record amounts of the last 2 or 3 years, and the lack of large Treasury financing that had been expected earlier. In addition, the spread between short- and long-term rates was unusually wide, suggesting that, barring a significant deterioration of market expectations or a sharp increase in bond offerings, short-term rates could rise relative to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN □ AUGUST 1972 long-term rates. The continuation of a high rate of deposit growth at financial institutions, moreover, helped to channel short-term funds into longer-term assets. Rates of growth in all of the major monetary aggregates mod­ erated appreciably in the second quarter from their unusually rapid first-quarter pace. In the case of Mx (currency plus private nonbank demand deposits), the annual growth rate slowed to 5.3 per cent, in part because of the reduced supply of reserves available to support private nonbank deposits (RPD’s). In addition, certain special circumstances noted later undoubtedly played some role. MONETARY AGGREGATES Because of the large first-quarter growth in the monetary aggregates and the accelerating pace of economic activity, the Federal Reserve provided RPD’s at a less rapid rate in the second quarter. As a result, RPD’s grew at an annual rate of about 7 per cent, consid­ erably less than the nearly 11 per cent annual rate of the first quarter. Commercial bank demands for reserves to support a sizable build­ up in U.S. Government and interbank deposits were, nevertheless, accommodated in line with the new System operating procedures, so that total reserves expanded more rapidly than in the first quarter. Owing in part to the slower growth of RPD’s, second-quarter expansion in Mx—particularly in May and June—was substantially NOT SEASONALLY ADJUSTED Monthly averages of daily figures for member banks. Total and nonborrowed reserves are adjusted to exclude the effects of changes in reserve requirement percentages. Nonborrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. Excess reserves are total reserves less required reserves. Latest figures, June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1972 689 smaller than during the first quarter. The 5.3 per cent annual growth rate for the quarter was about the same as the annual rate in the first and fourth quarters combined and less than the 6.5 per cent annual rate that had prevailed on average for the 2^-year period ending with June 1972. CHANGES IN SELECTED MONETARY AGGREGATES In per cent; quarterly figures are seasonally adjusted annual rates 1971 1972 Type of aggregate 1971 III IV I II Member bank reserves: Total ................................................................... 7.3 7.2 2.2 10.1 12.8 Nonborrowed..................................................... 8.0 6.0 6.8 11.0 13.0 Available to support private nonbank deposits1......................................... 7.8 4.3 4.8 10.8 7.1 Concepts of money:2 Mt............................................................................................... 6.2 3.7 1.1 9.3 5.3 M2............................................................................................... 11.1 4.4 8.0 13.3 8.6 m3............................................................................................... 13.3 7.8 9.6 15.5 10.8 Bank credit proxy, adjusted3................................ 9.5 7.6 9.7 11.3 11.1 memo (change in billions of dollars, seasonally adjusted): Large CD’s ..................................................... 7.9 2.3 1.8 -.1 3.7 U.S. Govt, demand deposits at member banks .............................................. -.3 2.3 -.4 -.1 -.8 1 Total reserves less required reserves for U.S. Government and interbank deposits. 2Mi is currency plus private demand deposits adjusted. M2 is Mi plus bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 3 Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter. Expansion of Mx during the second quarter also reflected in some degree the influence of two special factors, both of which tended to moderate its rate of growth. First, there was an unusually large diversion of private demand deposits into Treasury balances as U.S. Government tax receipts were augmented by higher withholding rates on 1972 personal tax liabilities and large final tax payments on 1971 liabilities. In addition, a shift of funds to foreign countries by speculators and hedgers in late June may have had a transitory impact on the growth of Mx late in the quarter. Inflows of consumer-type time and savings deposits at both commercial banks and nonbank thrift institutions also slowed sig­ nificantly from their unusually high first-quarter rate, but they still remained large by historical standards. While the moderate upward movement in short-term market interest rates may have been a factor in this development, savings inflows did pick up noticeably at banks after the mid-April date for payment of individual income taxes. With both Mj and consumer-type interest-bearing deposits growing less rapidly, the rate of expansion of M2 (Mx plus thrift Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN □ AUGUST 1972 Seasonally adjusted monthly averages. For definitions of MXj M2, and Af3, see footnote 2 to Selected Monetary Aggregates table. deposits at commercial banks) and M3 (M2 plus thrift accounts at nonbank savings institutions) slowed in the second quarter. Despite the more moderate growth of these aggregates, the adjusted credit proxy expanded at essentially the same rate as in the first quarter— 11 per cent. The sustained high level of total deposit growth at member banks reflected the unusually rapid expansion in large negotiable certificates of deposits (CD’s). Over the quarter, CD’s grew by $3.7 billion, offsetting the slower expansion of demand and thrift deposits. The volume of funds from nondeposit sources was approximately unchanged. BANK USES OF FUNDS While Federal Reserve data for deposits are based on averages of daily figures, the series on bank credit components are based on single-day figures (last Wednesday of the month). Thus, from time to time, and for short intervals, deposit and credit data do not move in close parallel; the second quarter is one of those periods. Even though the rate of growth in the adjusted credit proxy for member banks was about the same as the first quarter, each of the major components of bank credit showed less expansion in the second quarter than in the first. The slowing in the growth of U.S. Government securities at banks in the second quarter was associated no doubt with the smaller volume of Treasury financing in the period. Both the retirement of a significant volume of short-term tax warrants by certain States and municipalities and the efforts of some banks to reduce the rate at which they were acquiring longer-term tax-exempt issues—in anticipation of rising interest rates and increased private Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1972 691 credit demands—contributed to the generally slower pace of bank acquisitions of other securities. Continued strength in demands for housing and consumer durable goods contributed to further rapid expansion in both real estate and consumer loans during the quarter. However, all other loan categories were weaker. Security loans expanded less rapidly, as growth in stock margin credit was more moderate, and loans to nonbank financial institutions declined somewhat after a sharp increase in the first quarter. Business loans, which had increased at a 9.6 per cent annual rate in the first quarter, expanded at only a 4.3 per cent rate in the second—near the modest pace for all of 1971. All of the moderation in business loan growth occurred in June, when such loans declined; April-May growth had been a little more rapid than in the first quarter. The June decline in measured business loans apparently reflected a temporary bunching of repayments and perhaps a sharp increase in commercial paper sales by nonfinancial corporations—which substituted for bank credit. In July business loan expansion returned to the more rapid pace of the first 5 months of the year. As in the first quarter, business loan growth occurred mainly at banks outside New York City. Apparently the increase in aggregate business loans—as in earlier months this year—was chiefly attributable to demands of small and intermediate-sized regional firms that do not have ready access to other sources of BANK CREDIT-components CHANGE. BILLIONS OF DOLLARS 2 BANK LOANS-major components CHANGE, BILLIONS OF DOLLARS BUSINESS 4 ri n 2 i— j . + 0 1 R EAL ESTA 1 TE 1 n i ri icoNsuimrat Q1 Q2 1972 Seasonally adjusted. Loans adjusted for Seasonally adjusted. Business loans adtransfers between banks and their holding justed for transfers between banks and their companies, affiliates, subsidiaries, or foreign holding companies, affiliates, subsidiaries, branches. or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN □ AUGUST 1972 credit; large corporations apparently had sufficient liquidity to limit their credit demands, even in an expanding economy. Reflecting the higher level of both business loan demands and short-term rates generally, the prime rate charged by most banks rose from 43A per cent in March to 5 lA per cent at the end of June. For the few large banks that follow a policy of tying their prime rate directly to open market yields, the rate varied between 4% and 5Va per cent over the quarter. NONBANK Deposits at nonbank thrift institutions grew at a seasonally adjusted INTERMEDIARIES annual rate of 14.6 per cent in the second quarter of 1972. Although AND THE this was appreciably below the 20.5 per cent rate in the first quarter, MORTGAGE it represented a comparatively high level of savings inflows. MARKET Reflecting these continued favorable savings inflows, the major depositary institutions channeled a record net volume of funds, even after seasonal adjustment, into the mortgage market during NONBANK SAVINGS ACCOUNTS the second quarter of 1972. In addition, life insurance companies, which had reduced their mortgage holdings in the first quarter, became net investors again during the second quarter. The lending activity of Federal and related housing agencies remained at a low level in the second quarter, as the net amount of funds supplied by the private sector continued to be large. During the second quarter net mortgage debt formation was running at a record seasonally adjusted quarterly rate of $15 billion. The pace of residential mortgage debt formation accelerated even further, relative to the first quarter, as residential construction activity continued to rise; and the increase in nonresidential mort­ gage debt remained at the record pace established in the first quarter. NET CHANGE IN MORTGAGE DEBT OUTSTANDING Seasonally adjusted. In billions of dollars, seasonally adjusted quarterly rates 1971 1972 Type of debt II III IV I IIe 11.9 13.4 13.4 14.2 15.1 Residential ..................... 9.0 10.0 10.0 10.4 11.3 Other1 .............................. 2.9 3.4 3.3 3.8 3.8 1 Includes commercial and other nonresidential as well as farm properties. ePartly estimated. Note.—Details may not add to totals because of rounding. FUNDS RAISED IN The volume of security offerings by corporations in the second SECURITIES quarter of 1972 was only slightly above the first-quarter total, which MARKETS had been the smallest quarterly volume in more than a year. While there was a substantial rise in private placement activity and an increase of about 15 per cent in new equity issues, the volume of public bond offerings declined contraseasonally. Corporate de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1972 693 OFFERINGS OF NEW SECURITY ISSUES Quarterly totals, in billions of dollars, not seasonally adjusted 1971 1972 Type of issue II III IV I IIe Corporate securities—Total............... 11.7 10.4 10.8 9.8 10.1 Bonds ................................................. 8.3 6.4 7.6 7.0 6.9 Stocks ................................................. 3.4 4.1 3.2 2.9 3.2 State and local government bonds ................................................. 6.1 6.0 6.1 6.0 6.2 e Estimated. Note.—Details may not add to totals because of rounding. mands on the public bond market have moderated as a result of increased cash flow and the improved liquidity position resulting from previous large capital markets financing. Second-quarter offerings of long-term bonds by State and local governments were somewhat above the first-quarter total. An unu­ sually large volume of revenue bonds contributed to the continued heavy financing activity in the tax-exempt market, and in June more than $250 million of advance refunding was accomplished. The U.S. Treasury was able to repay about $6 billion of debt during the second quarter. Thus it returned to the normal pattern of debt retirement in the latter part of the fiscal year, a pattern that it had been unable to maintain in fiscal 1971. Furthermore, the Treasury cash balance at the end of June was almost $2.5 billion larger than at the end of March. Although Federal outlays continued to rise during the second quarter, budget receipts jumped by about $19 billion, a 40 per cent increase over first-quarter receipts. The growing strength of the economy, high tax payments in April because of underwithholding in 1971, and the impact of overwith­ holding in 1972 resulted in a budget surplus of $5.8 billion during the quarter. FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals in billions of dollars, not seasonally adjusted 1971 1972 Item II III IV I II Budget surplus or deficit..................... 1.8 -7.8 -10.6 -10.5 5.8 New cash borrowings, or repayments (—) .............................. 1.6 9.1 12.5 3.9 -6.0 Other means of financing1................. .9 -.1 -.6 3.0 2.6 Change in cash balance..................... 4.3 1.2 1.3 -3.6 2.4 memo: Net borrowings by Federally sponsored credit agencies2........ -.9 1.7 1.4 .4 1.2 Checks issued less checks paid and other accrued items. 2Includes debt of Federal Home Loan Banks, the Federal Home Loan Mortgage Corpora­ tion, Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, and Federal National Mortgage Association (including discount notes and bonds guaranteed by the Government National Mortgage Association). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN □ AUGUST 1972 Purchases of special issues by foreign central banks, which amounted to almost $2.5 billion in the April-June period, also contributed to the increase in the Treasury cash balance. For technical reasons—related to complex security exchange opera­ tions—the cash balance will not show the full effect of these operations until the third quarter of 1972. Special issues to foreign monetary authorities amounted to almost $3.1 billion in July, reflecting the accumulation of foreign official dollar balances as a result of private capital flows in response to the recent interna­ tional monetary uncertainties. INTEREST RATES The uptrend in short-term rates that had begun in mid-February continued throughout most of the second quarter. The largest increases were in the Federal funds rate, which rose more than 60 basis points, and in private short-term rates. The latter reflected growth in credit demands as the economy recovered. Rates on 3-month Treasury bills fluctuated widely, but net advances over the quarter were moderate relative to those on other short-term rates. On short-term Treasury bills the net increase was less than 20 basis points, leading to a further widening of the already sizable spread between these and other short-term rates. The major influ­ ence in the bill market was the limited supply of short-term Treasury INTEREST RATES PER CENT PER ANNUM 69 1970 1971 ’72 69 1970 1971 12 Monthly averages except FHA (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; FHA, weighted averages of private secondary market prices of new-home 30-year mort­ gages converted to annual yield (dashed line indicates period of adjustment of change in con­ tractual interest rate); corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1972 695 instruments available in the market because of debt repayment and large collateral requirements against Treasury balances. As the supply of investment funds remained adequate in relation to long-term credit demands, the second-quarter increases in long­ term rates on private securities were quite small. Corporate new issue rates rose about 8 basis points, and tax-exempt yields were only 3 basis points higher, on the average, in June than in March 1972. Yields on long-term Government securities declined 7 basis points, undoubtedly reflecting both the easier conditions in the Treasury bill market late in the quarter and the unexpectedly favorable Federal budget position. Secondary market yields on FHA mortgages edged upward over the second quarter, but certain key rates in the primary market for residential mortgages showed essentially no change. Ample availability of funds made possible the stability in primary mortgage market rates in spite of the continued heavy demand for housing credit. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Arthur F. Burns, Chairman, in 1972, but the effects of the pronounced rise Board of Governors of the Federal Reserve in new housing starts last year are still ramify­ System, before the Joint Economic Committee, ing. Sales of furniture and appliances, for ex­ July 26, 1972. ample, have been soaring this year. Consumer buying generally has been on a I am pleased to report to this Committee once marked uptrend since the late summer of 1971. again the views of the Federal Reserve Board Spendable incomes of consumers have risen on the state of the economy. steadily and substantially, as employment has Since my appearance before this Committee increased and the workweek has lengthened. in February, evidence has accumulated of a After more than 5 years of stagnation, average significant strengthening in the pace of eco­ weekly earnings of production workers have nomic expansion. The output of our Nation’s increased significantly in real terms since last factories and mines has increased rapidly since summer. Confidence in the economic outlook last fall and now exceeds the previous peak rate has improved, and consumers are now borrow­ in September 1969. ing at record rates to buy new autos and other Advancing levels of production and sales durable goods. have resulted in a larger demand for labor by In short, as we see the economic scene, the manufacturing plants, distributive firms, service current expansion is now exhibiting the charac­ establishments, and other places of business. teristics that are typical of cyclical recoveries. Total employment since June of last year has A strong revival of output in the durable goods risen by 3 million and the length of the work­ trades is under way, employment is rising week has generally increased. rapidly, and more and more branches of pro­ The improvement of labor markets has en­ duction are being caught up in the rising trend couraged substantial numbers of women and of activity. younger workers to enter the labor force. The There is good reason to expect this cumula­ ranks of jobseekers have also been swelled by tive process of business expansion to continue a sizable reduction in the Armed Forces. As a on into 1973. Inventory accumulation should consequence, unemployment has remained high provide an upward thrust in the months imme­ despite better job opportunities. Last month, diately ahead. Stocks have fallen to low levels however, unemployment did show a heartening in relation to sales, and it appears that a pick-up decline. in inventory building is already in process. A major source of the quickening tempo of Business investment in fixed capital should economic activity has been the recovery in continue to be a major expansive factor, since business capital formation. Confidence of the new orders and contracts for plant and equip­ business community was bolstered by the gov­ ment have been moving strongly upward for ernmental measures adopted last year to moder­ some time. If these categories of business ate inflation and to stimulate employment and spending rise briskly, as now seems likely, output. With incentives to invest strengthened, growth rates of employment and earnings will contracts for business construction and orders remain high. Disposable income will also gain for machinery and equipment have been rising from a rise in social security benefits this fall vigorously. and sizable tax refunds next spring. With con­ Higher residential construction has also been sumers in a more optimistic mood, these addi­ a stimulating factor. New housing starts have tions to purchasing power should stimulate de­ declined somewhat from the level reached early mand further. Digitized for FRASER6 96 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

697 Thus, when I consider the recent course of stabilized, the wage guidelines—which now economic activity and the prospects for the permit increases in wage rates well above long­ near-term future, I find reason for optimism. term productivity gains—will need to be The expansion in real output and employment lowered. But any such wage development will has remained orderly and well balanced. Most necessitate measures to assure workers that their major sectors appear to be poised for a further real earnings will not be eroded by continuing rise in activity. And it seems likely that unem­ increases in consumer prices. ployment will diminish as real output continues A tighter rein on inflation is needed not only to rise. to protect the incomes and savings of our peo­ Progress has also been made in moderating ple; it is needed also to restore equilibrium in the rate of increase in wages and prices. Over our international accounts. Indeed, I seriously the first half of this year, average hourly earn­ doubt whether this external objective can be ings in the private nonfarm economy rose at an achieved without a stable price level. The annual rate of about 5xk per cent, compared with Smithsonian realignment of exchange rates last 63A per cent during the first 7 months of 1971. December laid the basis for a substantial im­ The control program has evidently had a salu­ provement in our competitive position. But that tary effect, although competitive forces may potential will be dissipated if appreciable in­ also have served to dampen the rise in wage creases in domestic costs and prices continue. rates. Our international accounts are still seriously Price indexes too indicate some reduction in out of balance. Imports this year have increased the rate of inflation. A comprehensive measure substantially further, and while exports have of price performance—the fixed-weight index of also risen, our trade deficit has deepened. Such prices of all private goods and services in the a development is not unusual in the months gross national product—rose over the first three immediately following a currency depreciation, quarters of last year at an annual rate of about and the more advanced stage of our economic 4.5 per cent. In the three most recent quarters, recovery relative to that of our major trading the rate of increase has receded to about 3 per partners has undoubtedly been an aggravating cent. factor. With economic conditions abroad again Other price indexes also show improvement. improving, the demand for our exports should Thus, consumer prices since last August have rise more vigorously over the near term. Past increased at an annual rate of 2.7 per cent, experience suggests, however, that 2 or 3 years compared with 3.8 per cent in the first 7 months may need to elapse before the full benefit of of 1971. In the last 4 months, the annual rate last December’s exchange rate realignment is of increase averaged about 2 per cent. realized. The need for further progress in curbing The over-all balance of payments was in inflationary pressures remains great, however, substantial deficit during the first quarter. But particularly in view of potential developments beginning in mid-March, the over-all balance in 1973. Next year, collective bargaining became more favorable, due principally to agreements covering large numbers of workers short-term capital inflows. Indeed, we actually will be reopened in major industries. The nego­ experienced a balance of payments surplus be­ tiations will take place in a climate of improving tween mid-March and June 23, when the British labor markets and against the backdrop of a pound was floated. substantial increase in consumer prices over the In the weeks immediately following the Brit­ past several years. If wage rate increases should ish decision, exchange markets around the accelerate, pressures on unit costs of production world experienced renewed turmoil, and a siz­ would intensify. And business firms would able shift of dollars into European central banks probably take advantage of receptive product occurred. Most recently, however, order has markets to pass on cost increases to customers. been re-established on the foreign exchanges. Greater success in our efforts to moderate The renewal of market confidence is due in no inflation is therefore vital. If costs are to be small measure to the intervention in the ex­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN □ AUGUST 1972 change markets by the Federal Reserve in col­ on Interest and Dividends. Businesses were thus laboration with the Treasury. in a good position to finance their needs for The recent disturbances of exchange markets increased investment spending and working provide a clear warning. If repetitive monetary capital from internal sources. crises are to be avoided and an environment Monetary policy over this past year also con­ conducive to healthy expansion of foreign trade tributed to stability in credit markets. The Fed­ and investment is to be preserved, international eral Reserve pursued a moderate course of negotiations on monetary reform must begin monetary expansion, so that fears of a new wave promptly. The recent disturbances are also a of inflationary pressures would not be generated. warning that turmoil in international financial But the Federal Reserve also saw to it that the markets may continue until the United States economic recovery would not suffer for want and its major trading partners find ways to rid of money or credit. their economies of the inflationary sickness that The moderate course of monetary policy is is plaguing us all. evidenced by the major monetary aggregates. Let me turn next to the course that our Na­ During the 12 months ending in June, the nar­ tion’s monetary and fiscal policies must pursue rowly defined money supply (currency plus de­ to offer hope of solving our inflation problem, mand deposits) increased by 5 per cent, or less and at the same time to facilitate growth in than the increase in the Nation’s real output. production and employment. The money supply defined more broadly, so as Typically, expansions in economic activity to include time deposits other than large-deare accompanied by pronounced pressures in nomination certificates of deposit, rose faster as credit markets, reflecting larger credit demands consumers built up liquid assets by adding to as well as more stringent monetary policies. their time and savings accounts. Thus far, this expansion has been rather free As this Committee knows, rates of monetary from such pressures. Inflows of savings deposits expansion have recently varied considerably to nonbank thrift institutions—though below from one quarter to the next. The effects of such earlier peaks—remain abundant, and these variations on economic activity can easily be funds are being used actively in mortgage lend­ exaggerated. Last fall, for example, growth in ing. Commercial banks, besides extending sub­ money balances slowed sharply, and concern stantial amounts of credit to businesses and was voiced in some quarters that the economic consumers this year, have been able to acquire expansion would falter. Actually, there was no a record volume of mortgages and to supply a shortage of money or credit at that time. The major part of the funds raised in credit markets abundant supply provided in the first half of last by State and local governments. And although year was still there to meet the need of con­ interest rates on short-term securities have risen sumers and businesses. In fact, the slowdown from their lows early this year, long-term rates served a useful function. For it assured the of interest have changed very little. Actually, public that there was no intention to open the interest rates on practically all classes of loans monetary spigot in a reckless effort to stimulate and securities—including mortgages—are dis­ expansion, while wages and prices were being tinctly below their July 1971 levels. held in check with direct controls. A major reason for the relative stability of The Board recognizes, however, that fluctua­ interest rates was the substantial reduction in tions in growth rates of money and bank credit the size of the Federal deficit for fiscal 1972 have at times gone beyond our intentions. To from earlier expectations. Moderation in busi­ deal with this problem, techniques of imple­ ness credit demands was also a contributing menting monetary policy have recently been factor. Retained earnings of corporations were altered in ways that might permit us to minimize augmented by the rise in business profits, the undesired variations. release of funds by the investment tax credit Early this year, the Federal Open Market and accelerated depreciation, and the 4 per cent Committee decided that the pursuit of its mone­ ceiling on dividends imposed by the Committee tary goals might be aided by focusing less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 699 heavily on the Federal funds rate as an operating We stand at a crossroads in our fiscal ar­ target and instead giving more weight to the rangements. Many of our citizens are alarmed desired growth of the bank reserves held against by the increasing share of their incomes that private deposits. This change in operating is taken away by Federal, State, and local taxes. procedure did not, of course, mean that money Meanwhile, Federal expenditures have been and capital market developments would be rising at a rate well above the growth rate of disregarded. It merely meant that, in the Com­ our national income and product. The propen­ mittee’s judgment, greater emphasis could be sity to spend more than we are prepared to placed on the reserves needed to attain the finance through taxes is becoming deep-seated desired growth rates of the monetary aggregates, and ominous. An early end to Federal deficits while still giving attention to interest rates and is not now in sight. Numerous Federal programs other dimensions of financial markets. Monetary have a huge growth of expenditures built into developments since January seem to confirm them, and there are proposals presently before that judgment, but more time will be needed the Congress that would raise expenditures by to evaluate properly the new operating tech­ vast amounts in coming years. niques. The fundamental problem, therefore, is how At present, the Federal Reserve is in a favor­ to regain control over Federal expenditures. I able position to continue pursuing a path of do not think this can be accomplished without moderate monetary growth, for economic ex­ departing from our traditional methods of pansion thus far has been orderly and supplies budgetary management. of real resources are still ample. And if, as I have long been an advocate of zero-base seems likely, private credit demands advance budgeting—a procedure that would require at a temperate pace, interest rates near current careful scrutiny by the congressional appro­ levels could continue to prevail in the months priations committees of the full expenditure immediately ahead. requested for every Government program, rather Whether or to what degree this desirable than just the increase in expenditures. Such a outcome is realized will depend heavily on the procedure would help to weed out programs state of the Federal budget. At the time of the whose social usefulness has diminished or midyear budget review, the deficit projected for ended. It would take considerable time, how­ fiscal 1973 was $27 billion. The recent passage ever, to reform budgetary procedures along of the social security bill has raised that figure these lines even if the Congress were ready to appreciably. Supplements to defense spending adopt it. not allowed for in the midyear budget review To obtain immediate results, other steps are may add further to the deficit. And there will needed. Recently, a bipartisan group of Con­ be a temporary but potentially dangerous bulge gressmen advanced a proposal that would pro­ in the deficit next spring, when large refunds hibit consideration of any appropriation bills in of overwithheld taxes will add to disposable the House of Representatives until the House income. This concentrated fiscal stimulus could had approved a resolution containing a compre­ have unfortunate consequences for prices. hensive Federal budget. The proposal also I recognize that deficits are difficult to avoid would require a two-thirds majority vote for any when tax revenues fall below the levels that appropriation bill exceeding the provisions of would be produced by an economy operating the over-all budget resolution. This is a highly at full employment. But in fiscal 1973 the deficit constructive suggestion. I hope the Congress may be growing at a time when the economy will give it careful study and at the same time is expanding briskly and the margins of unused consider the desirability of establishing a joint capacity are narrowing. Such a development committee of the Congress on revenues and would add explosive fuel to the fires of inflation. expenditures. I therefore see no escape from the conclusion Another proposal that could produce imme­ that the time has come when the Congress must diate beneficial results has already been studied put our fiscal house in order. by many members of the Congress—namely, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN □ AUGUST 1972 the President’s recommendation for a legislative savings and loan associations, and credit ceiling on this year’s budget expenditures. I unions).” H.R. 15656 applies only to commer­ strongly support this recommendation in the cial banks insured by the Federal Deposit Insur­ hope that the ceiling would be a rigid one, that ance Corporation. The Board’s recommendation it would admit of no escape hatches whatever, of broader coverage was based on the premise and that it would apply both to the Executive that any statutory protections accorded to com­ and to the Congress. mercial banks should, as a matter of equity, be Re-establishment of order in our Federal extended to their close competitors. I recognize, finances has become a critical need in our Na­ however, that in some cases these competitors tion’s struggle against inflation. In the Board’s have looked upon this suggestion as reflecting judgment an enduring prosperity cannot be an intention to expose them to new tax burdens achieved unless this need is attended to rather than protect them. Congress therefore promptly and courageously by the Congress. may prefer to restrict this legislation to com­ mercial banks, as H.R. 15656 would do. Statement by George W. Mitchell, Member, TAXATION OF INTANGIBLES Board of Governors of the Federal Reserve The Board’s report recommended that Congress System, before the Committee on Banking, make permanent “the present denial of authority Housing and Urban Affairs, U.S. Senate, Au­ for States and their subdivisions to impose taxes gust 1, 1972. on intangible personal property owned by na­ tional banks and extend that denial to intangible I appreciate this opportunity to testify on behalf personal property owned by State banks and of the Board of Governors on legislation clari­ other depositary institutions.” fying the powers of the States to tax banks. This recommendation related to ad valorem Legislation is needed for three reasons. First, taxation of intangible personal property owned taxation of intangibles owned by banks should by banks. It does not concern taxes on bank be prohibited. Second, the imposition outside shares or deposits or franchise taxes on capital the home State of taxes measured by net in­ stock. The recommendation rests on grounds of come, capital stock, or gross receipts, and other equity and economic impact. “doing business” taxes should be deferred until Ad valorem taxes on intangible property now such time as uniform and equitable methods yield little revenue to the States. The number may be devised to determine jurisdiction to tax of States imposing such taxes has been dimin­ and to divide the tax base among States. Third, ishing, reflecting the fact that intangibles taxes discriminatory forms of taxation that might dis­ are extremely difficult to enforce effectively and courage interstate and interregional credit have strongly adverse economic impacts when movements should be avoided. To accomplish they are enforced. In an authoritative study a these three broad objectives, the Board recom­ few years ago of the economics of the property mends enactment of the provisions incorporated tax, Professor Dick Netzer of New York Uni­ in title II of H.R. 15656. versity observed (Economics of the Property While I have mentioned three broad objec­ Tax, 1966, pp. 140 and 141): tives, the recommendations in the Board’s The progressive withdrawal of particular classes of personal property from the scope report to Congress, submitted May 4, 1971, of the general property tax represents a sur­ were more detailed. Let me turn now to those render to reality. The process of exemption recommendations and their relation to H.R. has gone furthest for those classes which 15656. pose the greatest difficulties in regard to At the outset, the Board’s report suggested discovery and valuation of the assets and in regard to the economic consequences of that “it would be desirable that the restrictions uniform valuation and taxation even where proposed in our recommendations apply to all these are possible. commercial banks (national and State) and all Intangibles present the extreme case, for other depositary institutions (savings banks, they are either readily concealed or highly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 701 mobile (or both) and thus hard to locate on financial flows, with some consequent loss in assessment day; moreover, the incentive to economic efficiency. For example, banks might evade or avoid the assessor is substantial, then invest less in taxable assets such as loans since investment in the form of intangibles to businesses and consumers, and more in taxfrequently yields considerably lower rates of return than comparable investment in tangi­ exempt municipal bonds. Or flows of savings ble assets. Hence a uniform area-wide prop­ might be diverted from banks in States that erty tax rate is likely to absorb a substantially imposed such a tax and into banks in States that larger part of the (realized or imputed) return did not. The process of financial intermediation from intangibles than of the return from performed by banks and other depositary insti­ other assets, especially when one considers that the assessor cannot as readily un- tutions is particularly vulnerable to an intangi­ derassess fixed value claims, such as bank bles tax since the duplication of financial assets deposits, as he can other assets. that is inherent in the flow of savings, first into Netzer went on to describe the large shifts deposits of these institutions and then into cus­ of bank deposits out of Chicago banks just tomer loans, would expose savings flowing before the annual assessment date, April 1— through intermediaries to an additional layer of shifts so large that they have a discernible im­ taxation. This extra exposure does not occur pact on Treasury bill yields. These assessment- where funds flow directly from savers to ulti­ day disturbances in the money markets of Chi­ mate borrowers. cago were described again in the Wall Street The staff study submitted with the Board Journal of July 18 this year: “April 1 is assess­ report included a section summarizing argu­ ment day, and only that cash on deposit that ments against allowing States to tax bank-owned day in Illinois banks is considered taxable by intangible assets. Because a full quotation the state. Therefore, shortly before April 1, would involve repetition of some of the points many big companies convert their cash balances I have already presented, I shall simply submit into government securities, which are tax-ex­ that section of the report (Part II, pp. 54 and empt, or simply transfer their funds across the 55) for the record, as follows: border and beyond the reach of the Illinois tax (1) The territorial immobility of banks and man.” the fact that they are closely regulated prob­ If Public Law 91-156 had been in effect when ably would lead to considerably heavier he wrote, Netzer might have added that the taxation of their intangibles than of similar difficulties that prevent effective enforcement as assets of nonfinancial corporations. Intangi­ to nonbank businesses might not confront the bles in nature and in form are mobile, and opportunities to choose the business situs of tax assessor in applying these taxes to intangi­ such assets on the basis of tax considerations bles owned by banks. Banks cannot move their ordinarily are available to most firms con­ base of operations from one taxing jurisdiction ducting dispersed operations. However to another; they are closely supervised, with equal they might be under the law, in prac­ tice banks and some other classes of financial published balance sheets; and tax assessors institutions would be at a relative disadvan­ cannot readily undervalue the fixed claims that tage compared to firms in nonfinancial busi­ make up bank assets to the degree that they ness, especially large firms, if barriers to generally undervalue other types of assets. State taxation of intangibles were elimin­ But application of intangibles taxes to banks ated. (2) A general tax on intangibles would would be inequitable, and would have unde­ have a discriminatory impact against the sirable economic effects. Virtually all the assets process of intermediation as distinguished of banks are in the form of intangibles, whereas from direct market financing, since the this class of property is much less important for layering of financial assets that is inherent nonfinancial businesses. So even though intan­ in intermediation would expose savings that flow through intermediaries to double or gibles taxes were to be levied on all corporations multiple taxation, whereas those placed di­ they would bear far more heavily on banks than rectly with borrowers would be taxed only on general business firms. once. Moreover, a tax on intangible assets Moreover, such a tax would tend to distort would be easily enforceable against institu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN □ AUGUST 1972 tions but the holdings of individuals would ance burdens and uncertainty about potential largely escape assessment and taxation. increases in the rate or coverage of such (3) Unless most intangibles are taxed taxes might lead to limitation of credit practically everywhere and to all businesses, operations in the foreign taxing States; any and with substantially equal effectiveness in such impediments to the interstate flow of all jurisdictions, the intangible personal credit and commerce would hamper the property tax has distinctly unneutral effects efficient utilization of resources. upon geographic and inter-industry move­ (7) Denial of authority to tax bank intan­ ments of capital. If the intangibles tax were gibles would not be a major limitation on imposed in only a few States, or if admin­ the States, or a major loss to them, for istration was more vigorous and effective in several reasons: some States than in others, the taxed banks’ (a) They never have had this authority market power to recoup the tax by obtaining with respect to national banks and there­ higher interest rates on loans and securities fore have applied it only in rare instances would be severely limited. Banking capital to State banks. In calling for amendment would tend to migrate toward non-taxing of section 5219, States did not make a States or low-rate States. special point of this prohibition, as they (4) An intangibles tax would fall more did with respect to sales, documentary, heavily on Federal Reserve member banks and some other types of taxes. than non-member banks and would consti­ (b) Many States exempt all personal tute an additional cost of membership. This property or all intangibles and the trend is because member banks are required to toward exemption is continuing. Some hold all their legal reserves in a form that States exempt designated classes of in­ earns no interest (vault cash or balances at tangibles and tax selected categories at the Reserve Banks), whereas non-member special low rates in recognition of prob­ banks generally may hold their reserves in lems of double taxation, the confiscatory earning forms or in balances with other potentials of property tax rates when re­ banks for which correspondent bank services lated to yields on intangibles, difficulties are received. The nearly universal practice of enforcement and administration, and of determining assessments on a single the geographic shifts of investment that predetermined date each year might enable might be induced by full-rate taxation. It member banks to mitigate this difference by is doubtful that taxes on intangibles other acting to reduce reserves on the assessment than bank deposits and shares currently date. However, such adjustments would not contribute as much as one-third of 1 per­ remain possible if pressures to minimize cent of all State-local tax revenues. market disruptions and tax avoidance im­ (c) In any event, a significant portion pelled States to assess on the basis of of bank-held intangibles is not available averages. for State taxation because of the exclusion (5) Exclusion of tax-exempt obligations of Federal government obligations from from the tax base means that an intangibles the property tax base. tax would apply unevenly to individual On balance, it appears that the prospective banks, rather than in a uniform relationship removal of the prohibition on taxing intan­ to the volume of their intangible assets. gibles owned by national banks could have Moreover, a tax-induced preference for taxsubstantial effects, concentrated in that sec­ exempt holdings might have incidental ef­ tor of the economy which is engaged in the fects, such as a tendency to divert banks basic economic function of financial inter­ from helping to finance the private sector mediation. The interstate flow of credit and since this would involve acquisition of tax­ commerce might be hindered. In practice able assets. If a State taxed public debt such a tax would be discriminatory against instruments issued by other States and their banks and other financial institutions, how­ subdivisions, this might narrow the market ever equitable and even-handed the for­ for out-of-State obligations while strength­ mulation of the State tax laws. ening the market for home-State securities, since they are usually exempt. Over the years the number of States retaining (6) The possibility that intangibles might an intangibles tax has been diminishing, reflect­ be subjected to taxation in States other than ing dissatisfaction with the tax as inequitable the home State of the bank—that is, by the and difficult to enforce. This trend is continuing State of the debtor—might create apprehen­ sions and protective reactions on the part of as indicated by the 1970 repeal of the ad va­ banks. For example, concern about compli­ lorem intangibles tax in Iowa, conversion from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 703 an ad valorem to a gross earnings tax in Kansas, objective was “to forestall the development of and adoption of a constitutional amendment in significant impediments to . . . mobility [of Illinois providing for the elimination of all per­ funds] while safeguarding the authority of the sonal property taxation by 1979. It would be States to collect taxes in circumstances where unfortunate if Public Law 91-156 should lead an outside bank . . . has established a clear to a reversal of this trend by encouraging States relationship to the taxing State . . . through a to focus upon bank-owned assets simply be­ physical presence or a pattern of sustained and cause they are comparatively easy to assess. substantial operations.” Mere occasional and transitory business activities in a State should TAXATION BY STATES OTHER THAN THE not subject a bank to “doing business” taxes HOME STATE in that State. It seems prudent to suggest that The second recommendation in the Board’s if banks are now to be exposed for the first time report related to taxation outside the home State. to multistate taxation (as they would be under The recommendation was to “limit the circum­ the permanent amendment in Public Law 91stances in which national banks, State banks, 156), they should from the very outset be given and other depositary institutions may be subject some degree of statutory protection from the to State or local government taxes on or mea­ kinds of unsettling diversities and uncertainties sured by net income, gross receipts, or capital that characterize State taxation of interstate stock, or to other ‘doing business’ taxes in a manufacturing and mercantile businesses. State other than the State of the principal office, There is at present no consensus among State and prescribe rules for such taxation.” taxing authorities or in the banking community For national banks, the law now in effect about the precise methods for providing such confers exclusive taxing authority on the do­ protection, particularly as to rules for division miciliary State. That limitation would terminate of the tax base. December 31, 1972, if the “permanent amend­ Equitable division requires either separate ment” of section 5219 becomes effective, as accounting or apportionment of the tax base by it will unless Congress takes action at this ses­ a standard formula. Separate accounting is a sion. Under the permanent amendment and procedure for nominal separation of affiliated under the Board’s recommendation, the home enterprises that the States generally have found State might be required to divide the tax base difficult to police and evaluate. On the other of its domiciliary banks, both State and national, hand, where States use a formula to apportion with other States in which the banks are “doing the tax base of nonbank businesses, they com­ business.” monly use one or more of three basic factors: H.R. 15656 would continue the present property, payrolls, and sales. These factors are exclusive jurisdiction in the domiciliary State not particularly suited to the banking business. and extend this Federal statutory provision to Moreover, as the Board report indicated, if all insured commercial banks. The section on interstate division of the taxable net income of policy includes a declaration that “doing busi­ banks were to conform closely to procedures ness” taxes outside the home State should be applied to other businesses by most States, there deferred until uniform and equitable methods would be —with present lending practices— may be developed for determining jurisdiction comparatively little allocation of the tax base to tax and for dividing the tax base among to States other than the home State of the banks. States. We consider this a realistic approach to In a formal sense, virtually all business of a complicated problem. commercial banks is conducted in the domici­ The Board report recognized that its recom­ liary State. Banking practices may change, of mendation presupposes the formulation of clear course. State allocation procedures also may jurisdictional principles for determining when a change in a variety of ways unless Federal State may tax an out-of-State bank and standard statutory limitations are enacted to assure uni­ rules for measuring what part of the base is formity. subject to tax in any given State. The underlying Formulation of satisfactory uniform standards Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN □ AUGUST 1972 for multiple State taxation will be a time-con­ to assure uniform treatment for banks and non­ suming and difficult process, requiring a major bank businesses. H.R. 15656 adopts this ap­ coordinated effort by State tax authorities in proach by authorizing taxation of insured banks consultation with representatives of the banking only where the tax is imposed generally industry. H.R. 15656 provides for a study by throughout the taxing jurisdiction on a nonthe Board of Governors to develop such stand­ discriminatory basis. ards. The Board is hopeful that this provision will be amended to place responsibility for the INCOME ON U.S. OBLIGATIONS; study in the Treasury Department or the Advi­ TREATMENT OF COIN AND CURRENCY sory Commission on Intergovernmental Rela­ The fourth and fifth recommendations in the tions. These two agencies are well qualified to Board’s report involved narrower questions. deal with the technical complexities and the Recommendation 4 was that States should be consultative aspects of the problem, and the authorized “to include, in the measure of oth­ Board is not. erwise valid direct net income taxes, the income realized by banks and other depositary institu­ DISCRIMINATORY TAXATION tions from Federal Government obligations.” The third recommendation in the Board’s report Under present law (31 U.S.C. 742), States may was to prohibit “imposition of discriminatory include such income in the tax base for a fran­ or more onerous license, privilege, or other chise or excise tax measured by net income, similar ‘doing business’ taxes upon out-of-State but not for a direct tax on income. There is depositary institutions than would be imposed no economic difference between these two types upon these institutions if chartered by the taxing of taxes, and the present exemption restricts the State.” This particular form of discriminatory choice domiciliary States should have in taxing taxation would not be allowed under H.R. bank income. However, the St Germain sub­ 15656, since it would authorize “doing busi­ committee of the House Committee on Banking ness” taxes only in the domiciliary State. More and Currency decided not to include provisions broadly, H.R. 15656 would expressly prohibit carrying out this recommendation in H.R. discrimination against out-of-State banks in any 15656. I understand that this decision reflects form of taxation, and would require equal treat­ questions of committee jurisdiction. ment of national banks and State banks. Recommendation 5 was that “coins and paper It is difficult to frame a statutory prohibition currency [should] be considered intangible per­ against other forms of discrimination that would sonal property for State and local tax purposes.” add substance to the protections now incorpo­ This recommendation is incorporated in the rated in the Federal and State constitutions. definition of “intangible personal property” in Uniformity is not the answer, since some kinds H.R. 15656. Cash and currency are treated as of nominally uniform taxes, such as ad valorem intangibles under section 5219 of the Revised taxes on intangibles, if applied equally to banks Statutes as now in effect, but the specification and nonbank businesses, would hit banks un­ would lapse at the end of 1972 if there were duly hard. Therefore, as was pointed out in the no further legislation. staff study that accompanied the Board’s report, “it may be necessary in the interests of equity RELATIVE TAX BURDENS and economic neutrality to classify banks and It may be useful to mention briefly a question other financial institutions, particularly deposi­ that is sometimes raised in discussions of State tary institutions, separately from other busi­ taxation of banks. The question is whether nesses in order that tax provisions may be ad­ banks pay their fair share of taxes, as compared justed to their special characteristics.” Accord­ with other businesses. This question was exam­ ingly, the Board recommends continuation of ined in detail in appendix 9 of the Board’s the general standard against discrimination es­ report. For reasons summarized at pages 18 and tablished in Public Law 91-156, without the 19 of Part II of the Board’s report, the report addition of specific statutory standards intended does not include a comparison of tax treatment Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 705 of banks with that of other businesses. We know tainties about potential tax liabilities and of no way to make such comparisons in a concern about compliance burdens could become material factors in decisions to make meaningful and objective fashion on the basis particular loans or investments. of available data. As far as the pending legislation is concerned, SUMMARY: STATE TAXATION OF the relevant point is that H.R. 15656 would not BANKS take away any existing source of revenue nor Admittedly, the central questions involved in would it impose significant Federal limits on Federal legislation pertaining to State and local future taxation. The continued prohibition of taxation of banks are quite technical and com­ taxes on bank-owned intangible personal prop­ plex. But they are important for the industry erty would become important in terms of the and for some State and local governments. The revenues involved only if States were to reverse Board’s report and the staff studies that preceded the long-continued trend away from taxation of it have been furnished to the House and Senate intangibles. The provisions relating to taxation committees. These documents explore the un­ of out-of-State banks would not necessarily re­ derlying issues in greater detail. The point that duce total taxes below what they would other­ I would stress today is that the restraints on the wise be. In fact, they might produce the oppo­ taxing powers of the States incorporated in H.R. site result for reasons that were pointed out in 15656 will not, in my judgment, cut off impor­ the Board report (pp. 4 and 5): tant potential sources of revenue, but they do offer assurance against imposition of taxes that The aggregate of taxes paid by any indi­ might impair the ability of the banking system vidual bank or other depositary institution probably would be reduced by multiple State to contribute to the efficient allocation of the taxation as compared with taxation confined Nation’s credit resources. to the headquarters State because applicable tax rates in the home State (especially in the FULL INSURANCE OF PUBLIC DEPOSITS major banking center States) may be higher The bulk of my statement has dealt with taxation than in other States, and some States may of banks, since I had understood that would be not tax the out-of-State institution. the subject matter of the hearing. I have since The importance of the multistate taxation issues been informed that the hearing would be broad­ lies in the fact, also noted in the Board report ened to cover two additional subjects incorpo­ (p. 5), that rated in an amendment intended to be proposed . . . in some instances the added costs of by Senator Proxmire, introduced July 26. Title acquiring technical competence regarding III of the Proxmire amendment provides that the differing tax laws and procedures of all deposits by Federal, State, or local governments States where business is done, maintaining records needed to determine which taxes are in institutions insured by the Federal Deposit applicable and the amount of liability, and Insurance Corporation or the Federal Savings preparing and filing returns in all affected and Loan Insurance Corporation shall be fully States may be even greater than the taxes. covered by deposit insurance, notwithstanding The objective of H.R. 15656 is not to relieve the $20,000 limit generally applicable to other banks of any taxes comparable to those borne deposits. The FDIC and the FSLIC would be by other enterprises, but rather to avoid exces­ authorized to limit the aggregate amount of such sive compliance costs and the erection of deposits in any individual institution on the basis avoidable barriers to interstate credit flows. As of the size of the institution in terms of its assets. the Board said in its report (p. 5): The Board recommends against enactment of title III. Such barriers would be raised not only by Commercial banks invest heavily in Treasury the imposition of the tax itself but also if and municipal securities. At the end of last year there ensued uncertainty, controversy, and they held $160 billion of U.S. Treasury, Federal litigation of the sort that for decades have characterized taxation of interstate mercan­ agency, and municipal securities. An estimated tile and manufacturing businesses. Uncer­ $70 billion of these were pledged as security Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN □ AUGUST 1972 against $59 billion in public deposits. Full in­ providing such check-cashing services: losses surance would eventually lead to removal of on checks cashed for people who are not entitled pledging requirements and reduce bank de­ to payment, and routine handling costs. Losses mands for these securities. Borrowing costs to due to false identification could be minimized, the Treasury and to State and local governments but not entirely eliminated, if identification would thereby be raised. procedures were carefully worked out. Routine Moreover, if the principle of full insurance handling costs, however, cannot be readily ab­ were later extended to cover private as well as sorbed, particularly if the identification proce­ public deposits, incentives for good bank man­ dures proved to be time consuming. Financial agement could be significantly weakened. Fi­ institutions would have to absorb these costs or nally, the Board believes it would be unwise pass them on to their customers, unless some to divert active or short-term time deposits from arrangements were made for the Government to banks to savings and loan associations, as could reimburse them for their added expense. result if title III were enacted. Public deposits In an analogous situation, when business are made up of funds needed for operating payrolls result in a large number of checks being purposes, and of temporary overruns or sur­ presented for cash at local banks, employer pluses. Public policy should not encourage in­ firms maintain balances at the banks at levels vestment of funds of this kind in long-term that will compensate them for the check-cashing illiquid assets such as mortgages. service. I understand that in a few instances compensation has taken the form of fees rather CASHING OF GOVERNMENT CHECKS than maintenance of deposit balances—a prac­ Title II of the Proxmire amendment would pro­ tice that may become more widespread as costhibit any institution insured by FDIC or FSLIC accounting techniques are perfected. from refusing to cash a Government check upon If banks are required to cash Government presentation by the payee on the ground that checks free of charge, the impact will vary he does not have an account at the institution, among individual banks; in some cases the provided he furnishes adequate identification. It added costs could be substantial. We would would also prohibit such institutions from hope that arrangements could be made, includ­ charging the payee for cashing the check. The ing guarantees against liability where the Trea­ Treasury would prescribe regulations to carry sury’s identification procedures are complied out these provisions. with, to avoid imposing unfair cost burdens on Two elements of cost would be involved in particular institutions. □ 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 meetings held in 1972 through April 18 were published in the Bulletins for April, pages 390-97; May, pages 455-63; June, pages 562-70; and July, pages 640-48. The record for the meeting held on May 23, 1972, follows: Digitized for FRASER 707 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN □ AUGUST 1972 MEETING HELD ON MAY 23, 1972 Current economic policy directive. Estimates of the Commerce Department indicated that real output of goods and services had grown at an annual rate of 5.6 per cent in the first quarter—about the same rate as in the fourth quarter of 1971—and growth appeared to be accelerating in the current quarter. Staff projections suggested that the growth rate would increase further in the second half of 1972. In April industrial production rose at a faster pace than earlier in the year, reflecting widespread gains in output among consumer goods, business equipment, and materials. Employment in manu­ facturing and other nonfarm establishments continued to expand, and the average factory workweek increased sharply. However, the unemployment rate remained at 5.9 per cent. According to the advance report, retail sales declined in April—following an upsurge in March—but they remained well above the monthly average in the first quarter. Housing starts continued to fall from the extraordinary high reached in February, although part of the reported decline for April may have reflected statistical problems. Wholesale prices of farm and food products, which had declined in March, were about unchanged in April, but prices of industrial commodities continued to rise at the substantial rate of the preced­ ing 4 months. The consumer price index rose somewhat, after having been stable in March; over the 2 months, retail prices of foods changed little. The advance in average hourly earnings of production workers on private nonfarm payrolls remained fairly rapid. Staff projections continued to suggest that growth in real GNP would accelerate in the current quarter, with a step-up in inventory accumulation from a very low rate in the first quarter now expected to account for a part of the acceleration. Consumer spending, which had increased more in the first quarter than had been estimated earlier, was expected to continue upward at a substantial rate; such spending would be buoyed by a larger gain in disposable income than in the first quarter when a sizable increase in personal income tax payments under the new withholding schedules had dampened Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 709 the rise. It was anticipated that business capital outlays would continue to increase, but at a less rapid pace than in the first quarter, and that the rise in residential construction outlays would slow. Projections for the second half of the year, like those of 5 weeks earlier, suggested some further rise in the rate of real GNP growth. It was still anticipated that disposable income and consumption expenditures would increase at a faster pace, that business capital outlays and inventory investment would continue to expand, and that net exports would improve. On the other hand, it was expected that the expansion in Federal outlays would slow—although not to the extent that had been suggested in the previous projections— and that residential construction outlays would level off. Exchange rates for the dollar against most major foreign curren­ cies had changed little since mid-March. The U.S. balance of payments on the official settlements basis had been in slight surplus, reflecting an inflow of private capital, especially short term, to the United States; this was in contrast with the heavy deficit recorded in the first 2lh months of 1972 when private capital on balance had flowed out. The payments balance on the net liquidity basis apparently had remained in deficit in recent weeks, although the deficit was greatly reduced by the inflow of capital. In March the deficit in merchandise trade remained large. The Treasury announced on April 26 that in its mid-May financ­ ing it would refund only $1.75 billion of the $2.4 billion in publicly held debt maturing on May 15 and that it would redeem the balance for cash. In the refunding the Treasury auctioned $1.25 billion of a 1-year note, at an average price to yield 4.44 per cent, and $500 million more of a bond maturing in February 1982, at an average price to yield 6.29 per cent. It was thought possible that the Treasury would undertake an advance refunding in the interval before the next meeting of the Committee. Market interest rates generally had fluctuated in a narrow range since the Committee’s meeting on April 18. Early in the period short- and long-term rates had edged down, partly in response to indications that Treasury cash borrowings in the second half of the year would be less than had been anticipated. Moreover, the combined volume of new corporate and State and local government bonds publicly issued had declined somewhat in April and appeared likely to decline further in May. Toward the end of the period, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN □ AUGUST 1972 however, interest rates—especially short-term rates—had tended upward again partly in response to some firming in money market conditions and to three Treasury auctions of bills in a short period of time. The market rate on 3-month bills was 3.79 per cent on the day before this meeting, compared with a low of 3.42 per cent in early May and 3.85 per cent on the day before the April meeting. Contract interest rates on conventional new-home mortgages and yields in the secondary market for Federally insured mortgages rose somewhat in April; in both cases the increases were the first in many months. Inflows of savings funds to nonbank thrift institu­ tions slowed, but they remained at a relatively advanced pace. At commercial banks, business loans outstanding expanded in April at a faster pace than in the first quarter, and real estate and consumer loans continued to grow rapidly. Banks added only a small amount to their holdings of Government securities and reduced slightly their holdings of other securities; in the first quarter, they had added substantial amounts of both. Growth in the narrowly defined money stock (private demand deposits plus currency in circulation, or Mx) slowed to an annual rate of about 8 per cent in April from an average rate of about 12 per cent in February and March. Inflows of savings funds to commercial banks continued to slacken, and growth in the more broadly defined money stock (Mx plus commercial bank time and savings deposits other than large-denomination CD’s, or M2) also moderated to a rate of about 8 per cent, from an average rate of 13 per cent in February and March. However, expansion in the bank credit proxy—daily-average member bank deposits, ad­ justed to include funds from nondeposit sources—remained rapid, reflecting increases in both U.S. Government deposits and the volume of large-denomination CD’s outstanding. System open market operations since the April 18 meeting of the Committee had been directed at fostering growth in reserves available to support private nonbank deposits (RPD’s) at an annual rate in the April-May period of 7 to 11 per cent and growth in the monetary aggregates at somewhat more moderate rates than earlier, while at the same time avoiding sharp day-to-day fluctua­ tions and large cumulative changes in money market conditions. It appeared at present that RPD’s would actually grow over the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 711 April-May period at an annual rate of 7.5 per cent. Since the April meeting the Federal funds rate had continued to fluctuate around the AlA per cent level reached in early April. Member bank borrow­ ings averaged about $115 million in the 5 weeks ending May 17 compared with about $105 million the preceding 4 weeks. In pursuit of its open market objectives, the System needed to provide fewer reserves than it would otherwise have provided because a large amount of reserves was supplied by a reduction in the Treasury’s balance at the Federal Reserve Banks and by the monetization of the gain in the dollar value of the gold stock that resulted from the recent increase in the U.S. official price of gold. In late April the System met temporary needs for reserves by making repurchase agreements with nonbank dealers; interest rates on those agreements were established by competitive bidding, in accordance with a Committee decision on April 17, 1972. In this initial use of the experimental auction procedure, no major difficulties were encountered. The Committee agreed that the economic situation called for growth in the monetary aggregates over the months ahead at rates somewhat slower than those recorded in recent months. After taking account of recent changes in deposits and lagged reserve require­ ments, the Committee decided to seek growth in RPD’s at an annual rate in a range of 7.5 to 11.5 per cent during the May-June period while continuing to avoid sharp fluctuations and large cumulative changes in money market conditions. It was recognized that growth in RPD’s within that range might be associated with some firming of money market conditions. The members also decided that some allowance should be made in the conduct of operations if growth in the monetary aggregates appeared to be deviating significantly from the rates expected and that account should be taken of capital market developments and possible Treasury refunding. As at other recent meetings, it was understood that the Chairman might call upon the Committee to consider the need for supplementary in­ structions before the next scheduled meeting if it appeared that the Committee’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: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN □ AUGUST 1972 The information reviewed at this meeting, including recent data for such measures of business activity as industrial production and employment, suggests that real output of goods and services may be growing at a faster rate in the current quarter than in the two preceding quarters, but the unemployment rate remains high. In April wholesale prices of farm and food products changed little— after having declined in March—but the rise in prices of industrial commodities remained substantial. The consumer price index, which had been stable in March, increased somewhat. Wage rates contin­ ued to rise at a substantial pace. The U.S. balance of payments on the official settlements basis has been in small surplus since mid-March, but the payments balance on the net liquidity basis has apparently remained in deficit. In March merchandise imports con­ tinued to be considerably in excess of exports. Growth in both the narrowly and broadly defined money stock slowed in April from the rapid rates in February and March. Inflows of savings funds to nonbank thrift institutions also slowed, but they remained at a relatively advanced pace. Reflecting a further increase in U.S. Government deposits and a rise in the outstanding volume of large-denomination CD’s, the bank credit proxy continued to expand at a rapid rate. In recent weeks, market interest rates have fluctuated in a narrow range. 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 possible Treasury refunding, the Committee seeks to achieve bank reserve and money market conditions that will support somewhat slower growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Hayes, Brimmer, Cold well, Daane, Eastburn, MacLaury, Mitchell, Sheehan, and Winn. Votes against this action: None. Absent and not voting: Mr. Robertson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions EXTENSION OF DEFENSE PRODUCTION ACT account.” The text of these amendments reads as set forth below: By Act approved June 30, 1972 (Public Law 92-325) Congress extended until June 30, 1974, AMENDMENTS TO REGULATION G those provisions of the Defense Production Act of 1950 (including section 301, which is the basis Effective September 18, 1972, Regulation G is for guarantees of loans for defense production) that amended as follows: otherwise would have expired on June 30, 1972. 1. Section 207.1(j)(2) is amended to read as follows: SECURITIES CREDIT SECTION 207.1—GENERAL RULE TRANSACTIONS * * * * * The Board of Governors has amended its margin regulations, Regulation G, “Securities Credit by (j) Withdrawals and substitutions of collat­ Persons other than Banks, Brokers, or Dealers”; eral. * * * Regulation T, “Credit by Brokers and Dealers”; (2) Same-day substitution of collateral. Except and Regulation U, “Credit by Banks for the Pur­ as prohibited by § 207.4(a)(2), in the case of a pose of Purchasing or Carrying Margin Stocks”, credit in which the equity ratio is equal to or effective September 18, 1972. Under the amend­ exceeds the minimum equity ratio as prescribed ments, which are technical in nature, use of the in § 207.5 (the supplement to the regulation) a “same-day substitution” rule will end in accounts lender may permit a substitution of margin securi­ where the debt—adjusted as defined in the regula­ ties effected by a purchase and sale on orders tions—is more than 60 per cent of the market value executed within the same day: Provided, That (i) of the stock collateral in the account. The “same- if the proceeds of the sale exceed the total cost day substitution” rule permits customers to of the purchase, the credit is reduced by at least substitute one security for another in their accounts an amount equal to the retention requirement in through off-setting purchases and sales made on respect to the sale less the retention requirement the same day. in respect to the purchase, or (ii) if the total cost Also effective September 18, 1972, the Board of the purchase exceeds the proceeds of the sale, has amended Regulation T to permit short sales the credit may be increased by an amount no of stock into which bonds are convertible to be greater than the maximum loan value of the se­ made in the special convertible debt security ac­ curities purchased less the maximum loan value count if the bond is held in the account. of the securities sold. If the maximum loan value In a separate action, the Board has amended of the collateral securing the credit has become section 220.4(k) of Regulation T, effective Sep­ less than the amount of the credit, the amount of tember 5, 1972, to eliminate the requirement that, the credit may nonetheless be increased if there in order to be eligible for the provisions of that is provided additional collateral having maximum section, a creditor must be the issuer, or a sub­ loan value at least equal to the amount of increase, sidiary or affiliate of the issuer, of programs which or the credit is extended pursuant to § 207.4(a). combine the acquisition of mutual fund shares and insurance. Also, creditors who arrange credit for 2. Paragraph (k) is added to § 207.2 as follows: the acquisition of mutual fund shares and insurance SECTION 207.2—DEFINITIONS are permitted to sell mutual fund shares without insurance under the provisions of section 220.4(c). In addition, the designation of section 220.4(k) is changed to “Special insurance premium funding (k) The term “equity ratio” means the fraction Digitized for FRASER 713 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN □ AUGUST 1972 stated as a percentage in which the denominator 1. Section 220.3(a), (b)(1), (d)(3), and (g) is is the current market value of the collateral having amended as set forth below: loan value in respect of the credit and the numera­ tor is such current market value minus the amount SECTION 220.3—GENERAL ACCOUNT of the credit currently owing. (a) Contents of general account. All financial relations between a creditor and a customer, whether recorded in one record or in more than 3. Paragraph (f) is added to § 207.5 (the Sup­ one record, shall be included in and be deemed plement to Regulation G) as follows: to be part of the customer’s general account with the creditor, except that the relations which § SECTION 207.5—SUPPLEMENT 220.4 permits to be included in any special account provided for by that section may be included in the appropriate special account, and all transac­ (f) Minimum equity ratio. The minimum eq­ tions in commodities, and, except to the extent uity ratio of a credit subject to § 207.1 is 40 per provided in paragraph (b)(2) of this section, all cent. transactions in non-equity securities, exempted securities, and in other securities having no loan AMENDMENTS TO REGULATION T value in a general account under the provisions of paragraph (c) of this section and § 220.8 (the Effective September 5, 1972, § 220.4(k) is Supplement to Regulation T) (except unissued amended to read as follows: securities, short sales and securities positions to offset short sales other than those permitted in § SECTION 220.4—SPECIAL ACCOUNTS 220.4(j)(5), purchases to cover short sales and contracts involving an endorsement or guarantee of any put, call, or other option), shall be included (k) Special insurance premium funding ac­ in the appropriate special account provided for by count. In a special insurance premium funding § 220.4. During any period when such § 220.8 account a creditor may arrange for the extension specifies that margin equity securities shall have or maintenance of credit, not in excess of the no loan value in a general account or special premiums on the insurance policy (plus any ap­ convertible debt security account (sometimes re­ plicable interest), on a security issued by an in­ ferred to herein as “special convertible security vestment company registered pursuant to section account”) subject to § 220.4(j), any transaction 8 of the Investment Company Act of 1940 (15 consisting of a purchase of a security other than U.S.C. 80a-8) that serves as collateral under a a purchase of a security to reduce or close out plan, program, or investment contract registered a short position shall be effected in the special with the Securities and Exchange Commission cash account provided for by § 220.4(c) or in some under the Securities Act of 1933 (15 U.S.C. 77), other appropriate special account provided for by that provides for the acquisition both of a security § 220.4. issued by such investment company and of insur­ (b) General rule. (1) (i) A creditor shall not ance: Provided, That such credit is extended or effect for or with any customer in a general ac­ maintained by a lender subject to Part 207 of this count, special bond account subject to § 220.4(i), Chapter (Regulation G) or a bank subject to Part or special convertible debt security account any 221 of this Chapter (Regulation U). A creditor transaction which, in combination with the other arranging credit in a special insurance premium transactions effected in such account on the same funding account shall not extend, arrange, or day, creates an excess of the adjusted debit balance maintain credit in the general account or any other of such account over the maximum loan value of special account in § 220.3 and this section, except the securities in such account, or increases any for transactions involving the purchase of shares, such excess, unless in connection therewith the in the special cash account described in paragraph creditor obtains, as promptly as possible and in (c) of this section, in investment companies which any event before the expiration of 5 full business are so registered. days following the date of such transaction, the deposit into such account of cash or securities in Effective September 18, 1972, Regulation T is such amount that the cash deposited plus the loan amended as follows: value of the securities deposited equals or exceeds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 715 the excess so created or the increase so caused. count the same securities or securities exchangea­ (ii) If the adjusted debit balance in a general ble or convertible within 90 calendar days, without account or special convertible debt security ac­ restriction other than the payment of money, into count, computed using the margin requirement for such securities sold short; short sales specified in § 220.8(g)(2) of the Sup­ plement to Regulation T, exceeds the maximum * * * * * loan value of the securities in such account speci­ (g) Transactions on given day. (1) For the fied in § 220.8(g)(1), the account is subject to § purpose of paragraph (b)(1) of this section, except 220.8(g) (sometimes referred to herein as “ac­ in the case of an account subject to section 8(g), count subject to section 8(g)”). If an account is the question of whether or not an excess of the subject to § 220.8(g) as of the close of business adjusted debit balance of a general account, special on the preceding business day, it shall be subject, bond account, or special convertible debt security in addition to all other requirements applying to account over the maximum loan value of the the account, to the requirement that the creditor securities in such account is created or increased shall not effect any transaction in the account on a given day shall be determined on the basis which creates an excess of the adjusted debit of all the transactions in the account on such day balance of such account, computed using the mar­ exclusive of any deposit of cash, deposit of se­ gin requirements for short sales specified in § curities, covering transactions, or other liquidation 220.8(d), over the maximum loan value of the that has been effected on such day, pursuant to securities in such account specified in § 220.8(a) the requirements of paragraph (b) or (e) of this and (c), or increases any such excess, unless in section, in connection with a transaction on a connection therewith the creditor obtains, as previous day. promptly as possible and in any event before the (2) In the case of an account subject to section expiration of 5 full business days following the 8(g), the computation for the required deposit, date of such transaction, the deposit into such under paragraph (b)(l)(ii) of this section in con­ account of cash or securities in such amount that nection with transactions on a given day, may be the cash deposited plus the loan value of the made at the close of trading on such day and shall securities deposited equals or exceeds the excess be made exclusive of any deposit of cash, deposit so created or the increase so caused. The required of securities, covering transactions or other liqui­ deposit may be reduced by the amount of cash dation that has been effected on such day, pursuant or securities which otherwise could be withdrawn to the requirements of paragraph (b) or (e) of this pursuant to the provisions of subparagraph (2) of section, in connection with a transaction on a this paragraph in connection with any other trans­ previous day. actions in the account on the same day. (3) In any case in which an excess so created, or increase so caused, by transactions on a given * * * * * day does not exceed $100, the creditor need not obtain the deposit specified therefor in paragraph (d) Adjusted debit balance. For the purpose (b)(1) of this section. of this part, the adjusted debit balance of a general (4) Any transaction which serves to meet the account, special bond account, or special convert­ requirements of paragraph (e) of this section or ible debt security account shall be calculated by otherwise serves to permit any offsetting transac­ taking the sum of the following items: tion in an account shall, to that extent, be un­ available to permit any other transaction in such * * * * * account. (3) the current market value of any securities (5) For the purposes of this part (Regulation T), (other than unissued securities) sold short in the if a security has maximum loan value under para­ general account plus, for each security (other than graph (c)(1) of this section in a general account, an exempted security), such amount as the Board or under § 220.4(j) in a special convertible debt shall prescribe from time to time in § 220.8(d) security account, a sale of the same security (even (the Supplement to Regulation T) as the margin though not the same certificate) in such account required for such short sales, except that such shall be deemed to be a long sale and shall not amount so prescribed in such § 220.8(d) need not be deemed to be or treated as a short sale. be included when there are held in the general account or special convertible debt security ac­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN □ AUGUST 1972 2. Subparagraph (4) of § 220.4(j) is amended debit balance of the account pursuant to § and a new subparagraph (5) is added to that section 220.3(d)(3) as margin required for short sales of to read as follows: securities (other than exempted securities) shall be 40 per cent of the current market value of each SECTION 220.4—SPECIAL ACCOUNTS security. 4. To conform with these amendments: In § (j) Special convertible debt security account. 220.2(e)(2), the reference to § 220.8(g) is changed * * * to read § 220.8(h); and in § 220.2(e)(3)(ii), the (4) In the event any convertible debt security reference to § 220.8(h) is changed to read § held in this account is to be converted to a stock, 220.8(i). such security shall upon conversion be transferred to the customer’s general account against a deposit AMENDMENTS TO REGULATION U of cash or margin securities eligible for an exten­ sion of credit in this account (counted at their maximum loan value) equal to at least the maxi­ Effective September 18, 1972, Regulation U is mum loan value of the security so transferred amended as follows: without regard to the retention requirement of § 220.3(b)(2). 1. Section 221.1(c) is amended to read as fol­ (5) In a special convertible debt security account lows: the amount of margin equity securities into which a margin debt security held in the account is convertible may be sold short without regard to the margin required for short sales in § 220.8(d) SECTION 221.1—GENERAL RULE (Supplement to Regulation T), and such short position may be carried in the special convertible debt security account in conformity with the ex­ ception provided in § 220.3(d)(3). (c) Same-day transactions. (1) Except as pro­ vided in § 221.3(r)(l), a bank may in the case * * * * * of a credit in which the equity ratio is equal to or exceeds the minimum equity ratio as prescribed in § 221.4 (the supplement to the regulation) 3. In § 220.8 (the Supplement to Regulation permit a substitution of stock whether margin or T), a new paragraph (g) is added as set forth below non-margin, effected by a purchase and sale on and the existing paragraphs (g) and (h) are rede­ orders executed within the same day: Provided, signated as paragraphs (h) and (i), respectively. That (i) if the proceeds of the sale exceed the total SECTION 220.8—SUPPLEMENT cost of the purchase, the credit is reduced by at least an amount equal to the “retention require­ ment” with respect to the sale less the “retention requirement” with respect to the purchase, or (ii) (g) Account subject to section 8(g). For pur­ if the total cost of the purchase exceeds the pro­ poses of the computation described in § ceeds of the sale, the credit may be increased by 220.3(b)( 1 )(ii), an amount no greater than the maximum loan value (1) The maximum loan value of a registered of the stock purchased less the maximum loan non-equity security held in the account on March value of the stock sold. If the maximum loan value 11, 1968, and continuously thereafter, and of a of the collateral securing the credit has become margin equity security shall be 60 per cent of the less than the amount of the credit, the amount of current market value of such security, and the the credit may nonetheless be increased if there maximum loan value of an exempted security held is provided additional collateral having maximum in the account on March 11, 1968, and continu­ loan value at least equal to the amount of the ously thereafter shall be the maximum loan value increase. of the security as determined by the creditor in (2) For the purpose of this paragraph, the term good faith. ‘‘equity ratio” means the fraction (stated as a (2) The amount to be included in the adjusted percentage) in which the denominator is the cur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 717 rent market value of the collateral having loan Congress has had an opportunity to consider the value in respect of the credit and the numerator matter. Suggestions for changes in rules governing is such current market value minus the amount specialized thrift institutions have been made by of the credit currently owing. the President’s Commission on Financial Structure and Regulation (the “Hunt Commission”), as well as others. It is expected that the next Congress sfs sjc s+s sfs will have occasion to thoroughly consider bank 2. A new paragraph (f) is added to § 221.4 (the and savings and loan association relationships. Supplement to Regulation U) as follows: The action does not affect previous Board deci­ sions permitting affiliations of thrift institutions SECTION 221.4—SUPPLEMENT and commercial banks in Rhode Island. (Applica­ tions of Newport Savings & Loan Association, 1972 B ulletin 313 and Old Colony Co-operative Bank, 1972 B ulletin 417). (f) Minimum equity ratio. The minimum eq­ uity ratio of a credit subject to § 221.1 is 40 per cent. ORDER UNDER BANK MERGER ACT AND DETERMI­ NATION UNDER BANK HOLDING COMPANY ACT BANK HOLDING COMPANIES: THE TRUST COMPANY OF NEW JERSEY, OPERATION OF SAVINGS AND LOAN JERSEY CITY, NEW JERSEY, ASSOCIATIONS WILSHIRE OIL COMPANY OF TEXAS, The Board of Governors announced August 3, NEW YORK, NEW YORK 1972, that it has decided not to include at the Order Denying Application by The Trust present time operation of savings and loan associ­ Company of New Jersey for Merger with ations on its list of activities in which bank holding Nonoperating Bank companies may engage. Determination of Status of Wilshire Oil The Board had previously indicated that opera­ Company of Texas Under Bank Holding tion of a savings and loan association was not Company Act within the scope of activities heretofore authorized Order With Respect to Merger Proposal to be conducted by a bank holding company under The Trust Company of New Jersey, Jersey City, section 4(c)(8) of the Bank Holding Company Act, New Jersey (“Trust Company”), a State member and that it was then considering whether to expand bank of the Federal Reserve System, has applied its list of activities to include such activity. for the Board’s approval, pursuant to the Bank The Board noted that Congress has created a Merger Act (12 U.S.C. 1828(c)) (“Act”), of the statutory framework for savings and loan associa­ merger of that bank with The New Trust Company tions that is separate from the statutes governing of New Jersey, Jersey City, New Jersey (“New Bank”), a newly-chartered, nonoperating bank commercial banks. Under these statutes, different which is a wholly-owned subsidiary of Wilshire rules have been established for the two kinds of Oil Company of Texas, New York, New York institutions on such matters as branching, taxation, (“Wilshire”), a bank holding company registered and ceilings on rates paid to attract savings. A under the Bank Holding Company Act of 1956 statute has also been enacted governing savings (12 U.S.C. 1841 et seq.). Wilshire is the owner and loan holding companies, separate and distinct of 50.6 per cent of the outstanding voting shares from the Bank Holding Company Act. This statu­ of Trust Company. New Bank, into which Trust tory pattern suggests past intent on the part of Company is to be merged, has significance only Congress to maintain savings and loan associations as a means to facilitate the acquisition of all of the voting shares of Trust Company by Wilshire. as specialized lenders to finance housing, with As required by the Act, notice of the proposed specialized rules appropriate to that role. Acquisi­ merger, in form approved by the Board, has been tion of savings and loan associations by bank published, and the Board has requested reports on holding companies could tend to blur this Concompetitive factors from the Attorney General, the gressionally-established structure. Comptroller of the Currency, and the Federal Proposals for affiliation of banks and savings Deposit Insurance Corporation. and loan associations in a holding company system The Board has considered the application and involve broad questions of public policy which, all comments and reports received in the light of in the Board’s opinion, should not be decided until the factors set forth in the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN □ AUGUST 1972 The Act requires the Board to take into consid­ pany’s operating revenues have remained constant eration: (1) the competitive effects of the proposed and the bank has experienced steady asset growth. transaction; (2) the financial and managerial re­ Trust Company has paid relatively stable cash sources of each of the banks involved; (3) future dividends for at least the last five years and stock prospects of the existing and proposed institutions; dividends in 1967, 1968 and 1969. Since acquiring and (4) the convenience and needs of the commu­ control over the bank, Wilshire has initiated sev­ nity to be served. eral programs aimed at revitalizing the perform­ Trust Company ($203.3 million of deposits and ance of Trust Company, such as upgrading of $229.7 million of assets), headquartered in Jersey management personnel and salaries, modification City, New Jersey, operates 12 offices, all in Hud­ of loan policies and expansion and modernization son County, New Jersey, and is the 13th largest of bank offices and equipment. In view of the of 84 commercial banks in the State’s First Bank­ present resource strength of Trust Company and ing District. (All banking data are as of December the changes in management and operating policies 31, 1971.) Since the proposed merger of Trust already undertaken, its future prospects for con­ Company into a wholly-owned nonoperating tinued growth appear satisfactory. subsidiary of Wilshire is only a vehicle intended The current financial condition of Wilshire ap­ to facilitate the acquisition by Wilshire of all of pears satisfactory, although the drain on cash as the outstanding voting shares not now held by that a result of its commercial operations and debt costs company, and since Wilshire already holds more incurred in connection with the acquisition of Trust than 50 per cent of the outstanding voting shares Company shares has caused some deterioration in of Trust Company, consummation of the proposal its cash flow position in recent years. Analysis of would have no effect on competition in any rele­ Wilshire’s past and present financial condition and vant area. future prospects indicates that it is subject to wide Wilshire, in addition to its investment in Trust fluctuations in income due to the speculative nature Company, is engaged in extensive nonbanking of many of its nonbanking enterprises. Wilshire’s activities. These activities include acquisition of nonbank activities earned only marginal net profits oil, gas and other mineral properties; production in the years 1966-1969. In 1970, Wilshire sus­ and sale of crude oil, natural gas and other miner­ tained a loss from its nonbank operations and in als extracted from properties in the United States 1971, the net income realized by Wilshire as a and Canada; and distribution and sale of electronic result of its investment in Trust Company after equipment and components and automotive equip­ deduction of interest and related acquisition ex­ ment. penses, was more than double its net income The record indicates that Wilshire initiated its derived from its nonbank operations. Although relationship with Trust Company in early 1967 Wilshire generally operated profitably before its when Wilshire began purchasing shares of the investment in Trust Company, it is clear that its bank and Wilshire’s president advised the pres­ investment in Trust Company (representing ap­ ident of Trust Company of its intention to acquire proximately $11 million of its total $27 million control of Trust Company. As of June 1968, of assets) represents Wilshire’s principal source of Wilshire had acquired 8 per cent of the outstanding net income as well as its most reliable income voting shares of Trust Company and its president producer. In contrast to Trust Company’s record and one of its directors were elected to the board of cash dividends, Wilshire has paid stock divi­ of Trust Company. Wilshire’s president, with the dends but has never paid a cash dividend. consent of Trust Company management, appears The Supreme Court has observed that it is clear to have participated in the operations of Trust not only from the language of the Bank Merger Company from some time in 1968 as Wilshire’s Act, but from the statements of those who sup­ share ownership in Trust Company increased. ported it while the Act was under consideration Wilshire acquired 17 per cent of Trust Company that in determining whether the merger should be shares through a tender offer announced in August approved “[t]he public interest was the ultimate 1969 and an additional 25 per cent through another test imposed.” (United States v. Third National tender offer in 1970. Consequently, on December Bank in Nashville, et al., 390 U.S. 171, 184 31, 1970, Wilshire held 50.6 per cent of the (March 1968)) outstanding voting shares of the bank. Upon con­ The Board, in two recent decisions under the summation of the proposed merger Wilshire would Bank Holding Company Act, has expressed its hold 100 per cent of the outstanding voting shares belief that a holding company should be a source of the successor by merger to Trust Company. of financial strength for its subsidiary banks rather The financial condition of Trust Company ap­ than vice versa. (Application of First Southwest pears satisfactory. The bank appears to have been Bancorporation, Inc., Waco, Texas, to acquire operated by conservative management prior to the four banks, 1972 Federal Reserve B ulletin 301 assumption of control by Wilshire. Although net and application of Seilon, Inc., Toledo, Ohio, to income has declined in recent years, Trust Com­ acquire shares of First Bancorporation, 1972 Fed­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 719 eral Reserve B ulletin (July 20, 1972)) holders without any balancing benefits, except In its Order denying the application of Seilon, perhaps some tax advantages to Wilshire. Further­ Inc., the Board concluded that it was unlikely that more, in the present case, the presence of minority the Applicant would be able to provide meaningful shareholders may serve as a beneficial restraining financial assistance to the bank in the reasonably influence upon any possible use by Wilshire of near future. It was only its existing interest in the the resources of Trust Company that would be bank which provided Applicant with an operating contrary to the best interests of the bank. In profit as Applicant’s nonbanking activities had addition, as a result of the Board’s concurrent been operated at a loss. determination under the Bank Holding Company Because the sole purpose of the proposed Act, described hereinafter, with respect to Wil­ merger is to provide a means for the acquisition shire’s status as “a company covered in 1970,” by Wilshire, a bank holding company, of all of Wilshire is required to divest either its nonbanking the outstanding shares of Trust Company, the activities or its control of Trust Company by Board believes it appropriate to apply these same January 1, 1981. Approval of the proposed merger principles to the merger proposed herein. Upon would therefore remove the minority interest in consideration of the possible effects of the favor of Wilshire which, in turn, may be required proposed merger on the financial and managerial to divest its control over Trust Company before resources and future prospects of Trust Company January 1981. and the effects upon minority shareholders of that Expansion of Wilshire’s interest over Trust bank, the Board is of the opinion that the proposed Company may provide some benefit to the con­ merger is not in the public interest. venience and needs of the community served by Upon consummation of the proposed merger, the bank insofar as it may increase the possibility Wilshire would control 100 per cent of the suc­ that Wilshire would cause Trust Company to ex­ cessor to Trust Company and, thereby, be able pand and modernize its banking services. How­ to rely more heavily upon the resource strength ever, it appears that improvements in the banking of Trust Company to bolster its own historically services provided by Trust Company could be erratic financial condition. In this connection, it accomplished under Wilshire’s present interest in is noted that the application of Trust Company the bank or by the bank absent Wilshire’s present with respect to this proposal quotes Wilshire as interest. stating that “if Applicant is a wholly-owned Any possible benefits to the convenience and subsidiary of Wilshire, Wilshire will have maxi­ needs of the community in which Trust Company mum flexibility in all aspects of Applicant’s future operates are clearly overshadowed by the poten­ operations.” Acquisition of 100 per cent of the tially adverse consequences to the public interest voting shares of the successor to Trust Company brought about by cementing further a relationship increases the possibility that Trust Company could between the bank and a corporation whose non­ be used to advance the speculative enterprises of banking operations are so incompatible with the Wilshire. Although Federal and State banking laws interests of prudent banking. Approval of the pro­ afford some degree of protection against unwise posal to acquire the remaining 49 per cent of Trust use of bank assets, a great deal of latitude is still Company shares would, in the Board’s opinion, provided to bank management. Situations which clearly do violence to the basic intent of the Bank give substantial possibility for potential abuses Merger Act, the Bank Holding Company Act and should, in the Board’s opinion, be prevented from the banking laws in general insofar as it would arising, rather than to rely solely on remedial further a union of banking with a most speculative action once trouble begins, with consequent po­ type of industrial enterprise. tential damage to the banking public. On the basis of the record as summarized above, Further, although the application appears to it is the Board’s judgment that approval of this contend to the contrary, there is little likelihood application would not be in the public interest and, in the Board’s opinion that Wilshire can or would accordingly, the application is denied. in the foreseeable future, be in a position to provide financial strength to Trust Company. (See Determination of Status Under Bank Holding applications of First Southwest Bancorporation, Company Act Inc., and Seilon, Inc., noted above.) Consummation of the proposed merger would, Concurrent with its denial of the proposed in addition, result in the squeezing out of those merger, the Board has considered a request by minority shareholders of Trust Company who do Wilshire that the Board determine that it is a not wish to receive shares of Wilshire in exchange “company covered in 1970” within the meaning for those of Trust Company. In the Board’s opin­ of section 2(b) of the Bank Holding Company Act ion, the elimination of these minority interests is and as such would be permitted to continue in­ not in the public interest. There is an obvious definitely its nonbanking activities while at the inequity of forcing a result on minority share­ same time continue to maintain its ownership of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN □ AUGUST 1972 more than 50 per cent of the outstanding voting sence” at Trust Company and in fact was present shares of Trust Company.1 By virtue of its owner­ “almost daily” throughout this period. This of­ ship of this interest in Trust Company, Wilshire ficer of Wilshire participated in senior management became a bank holding company subject to the conferences and was consulted regularly regarding Act as a result of the 1970 Amendments to the various aspects of Trust Company’s operations, Act. including investment and advertising policies, Wilshire contends that (a) its relationship with employment practices and modernization of facili­ Trust Company on June 30, 1968 satisfies the ties. presumptions of control under the Board’s Regu­ It does appear that on June 30, 1968 Wilshire lation Y (12 CFR 225.2(c)) and in any case (b) was capable of exerting some influence on the bank on or before June 30, 1968, it exercised a “con­ through its share holdings, representation on the trolling influence” over the management or poli­ board and its presence, primarily through its pres­ cies of Trust Company consistent with section ident, in the operations of the bank during at least 2(a)(2)(C) of the Act and that such “controlling part of the period ending on June 30, 1968. How­ influence” has continued to the present. ever, that “influence,” in the Board’s opinion, did The Board has considered information, includ­ not amount to a “controlling influence” over Trust ing extensive legal memoranda and affidavits, Company. submitted in support of Wilshire’s contention and Although it appears that Wilshire’s relationship has considered materials submitted by stock­ with Trust Company satisfied the conditions es­ holders’ counsel challenging Wilshire’s belief that tablished by section 225.2 of the Board’s Regula­ it is a “company covered in 1970.” Additionally, tion Y (Presumptions of Control), satisfaction of Wilshire has been provided with adequate oppor­ that provision establishes only a presumption of tunity to review and comment upon materials control which the Board finds to have been rebut­ submitted by parties opposed to Wilshire’s asser­ ted by additional information (see hereinafter). tion of “grandfather” status with respect to its These conclusions are founded upon a number nonbanking activities. The Board has considered of observations on the character of Wilshire’s the information submitted in the light of the statu­ relationship with Trust Company on June 30, tory provisions and legislative history of the Bank 1968, including the following: Holding Company Act and judicial and admin­ 1. Wilshire’s ownership of 8 per cent of the istrative determinations under other Federal stat­ outstanding voting shares of Trust Company on utes which contain a “controlling influence” June 30, 1968, without the existence of other provision.2 factors, appears inadequate to establish a “con­ Among the factors cited by Wilshire in support trolling influence.” of its position are the following: 2. While Wilshire’s shareholdings may have 1. On June 30, 1968, Wilshire held 8 per cent placed it in an advantageous position if a proxy of the outstanding voting shares of Trust Com­ fight had developed, it seems apparent from Trust pany. Company’s response to a tender offer in 1969 that 2. On June 30, 1968, Wilshire had two directors there was substantial opposition to Wilshire among on the board of Trust Company. the management and shareholders of Trust Com­ 3. No other person owned, controlled or had pany.3 The tender offer in 1969 (which was not the power to vote as much as 5 per cent of the endorsed by Trust Company management) and a outstanding voting shares of Trust Company. subsequent tender offer in 1970 resulted in Wil­ 4. From late 1967 through June 30, 1968, the shire acquiring just over 50 per cent of the out­ president of Wilshire maintained an “active pre­ standing voting shares of Trust Company. (In each instance the tender offer was for all outstanding shares.) 1 Section 2(b) defines a “company covered in 1970” as a company which becomes a bank holding company as a result of the enactment of the Bank Holding Company Act Amend­ ments of 1970 and which would have been a bank holding 3In a letter dated September 23, 1969, of the Board of Directors company on June 30, 1968, if those amendments had been of Trust Company to its stockholders concerning Wilshire’s enacted on that date. If Wilshire held “control” or a “control­ tender offer, it was stated: “Your Board of Directors has full ling influence” over Trust Company on June 30, 1968, it would confidence in the management of The Trust Company under have been a bank holding company as defined by § 2(a) of whose leadership The Trust Company has operated on a sound the Act. and profitable basis for many years. It is not clear to what 2Public Utility Holding Company Act (15 U.S.C. 79b(a)(7) extent The Trust Company’s present management would con­ and (8)); Investment Company Act of 1940 (15 U.S.C. 80a- tinue to direct the affairs of The Trust Company if Wilshire 2(a)(9). were to succeed in taking control.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 721 3. The very brief interval of eight months be­ Company) to June 30, 1968 established the basis tween Wilshire’s first contact with Trust Company for Wilshire’s eventual controlling influence and and its alleged assumption of a “controlling influ­ control over Trust Company. The period of No­ ence,” and the fact that only two Wilshire repre­ vember 1967 to June 30, 1968 was one in which sentatives became “insiders” (two of 16 Trust Wilshire’s presence and influence over Trust Company directors) just two months prior to June Company was increased. However, it took two 30, 1968, indicates that strong historical ties be­ tender offers, at subsequent times, for Wilshire to tween Wilshire and Trust Company had not de­ achieve even bare majority control over Trust veloped. In contrast, decisions under other Federal Company. statutes containing “controlling influence” provi­ On the basis of all the information submitted, sions which have relied on established corporate the Board is unable to conclude that Wilshire and personnel affiliations to identify “controlling exercised or possessed the power to exercise a influence” indicate that such “controlling influ­ controlling influence over the management or ence” will be found where relationships have policies of Trust Company on June 30, 1968. existed over a number of years. (H. M. Byllesby Accordingly, the Board has determined that Wil­ and Co., 16 SEC 639 (1940) American Gas and shire is not a “company covered in 1970” within Electric Company v. SEC, 134 F. 2d, 633 the meaning of section 2(b) of the Bank Holding (D.C. Cir.) cert, denied, 319 U.S. 763 (1943)). Company Act. 4. Although it seems that Wilshire’s president As a result of this determination, Wilshire is did participate in many areas of Trust Company required by January 1, 1981 to either (a) divest operations, information submitted relating to this those of its nonbanking activities not permitted for officer’s activities at Trust Company fail to indicate bank holding companies, or (b) cease to be a bank more than a consulting or advisory relationship holding company as defined by section 2 of the rather than a position of dominance. The fact that Act by divesting its controlling interest in Trust some of his recommendations may have been Company. adopted by those in management positions does By order of the Board of Governors, effective not indicate that Trust Company was controlled July 27, 1972. by Wilshire, any more than one can say that if management accepts the recommendations of an Voting for these actions: Chairman Burns and Governors attorney, accountant or outside management con­ Robertson, Brimmer, Sheehan, and Bucher. Absent and not sultant, such person “controls” the company. voting: Governors Mitchell and Daane. 5. It is clear that Wilshire’s involvement with Trust Company from November 1967 (when it (Signed) Tynan Smith, announced its intention to acquire control of Trust [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN □ AUGUST 1972 ORDERS UNDER SECTION 3(a) OF to be served are consistent with approval of the BANK HOLDING COMPANY ACT application. It is the Board’s judgment that the transaction would be in the public interest and that CHEYENNE COUNTY INVESTMENT COM­ the application should be approved. PANY, INC., ST. FRANCIS, KANSAS On the basis of the record, the application is approved for the reasons summarized above. The Order Approving Formation of Bank Hold­ transaction shall not be consummated (a) before ing Company the thirtieth calendar day following the effective Cheyenne County Investment Company, Inc., date of this Order or (b) later than three months St. Francis, Kansas, has applied for the Board’s after the effective date of this Order, unless such approval under § 3(a)(1) of the Bank Holding period is extended for good cause by the Board, Company Act (12 U.S.C. 1842(a)(1)) of formation or by the Federal Reserve Bank of Kansas City of a bank holding company through acquisition pursuant to delegated authority. of 100 per cent (less directors’ qualifying shares) By order of the Board of Governors, effective of the voting shares of The Cheyenne County State July 5, 1972. Bank, St. Francis, Kansas (“Bank”). Voting for this action: Vice Chairman Robertson and Gov­ Notice of receipt of the application has been ernors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Mitchell. given in accordance with § 3(b) of the Act, and the time for filing comments and views has ex­ (Signed) M ichael A. Greenspan, pired. The Board has considered the application [seal] Assistant Secretary of the Board. and all comments received in the light of the factors set forth in § 3(c) of the Act (12 U.S.C. BANK SECURITIES, INC., 1842(c)) and finds that: ALAMOGORDO, NEW MEXICO Applicant is a nonoperating corporation formed for the purpose of acquiring Bank which has Order Approving Acquisition of Bank aggregate deposits of approximately $4.8 million. Bank Securities, Inc., Alamogordo, New Mex­ (All banking data are as of December 31, 1971.) ico, a bank holding company within the meaning Since Applicant has no present operations or of the Bank Holding Company Act, has applied subsidiaries, consummation of the proposal would for the Board’s approval under § 3(a)(3) of the not adversely affect existing or potential competi­ Act (12 U.S.C. 1842(a)(3)) to acquire all of the tion, nor have an adverse effect on any bank in voting shares (less directors’ qualifying shares) of the area. First National Bank of Roswell, Roswell, New Applicant has made a tender offer to the Mexico (“Bank”). principal shareholder of Bank, while making an Notice of the application, affording opportunity exchange offer to minority shareholders who are for interested persons to submit comments and all officers or directors of the bank and include views, has been given in accordance with § 3(b) Applicant’s principal executive officer and share­ of the Act. The time for filing comments and views holder. These individuals have all accepted the has expired, and the Board has considered the offer and, although the offers are not identical, application and all comments received in light of they are substantially equivalent. the factors set forth in § 3(c) of the Act (12 U.S.C. Applicant’s financial resources and future pros­ 1842(c)). pects are dependent upon those of Bank. Its pro­ Applicant, the fourth largest banking organi­ jected earnings appear to be sufficient to service zation and third largest multi-bank holding com­ the debt which it will incur upon consummation pany in New Mexico controls seven banks with of the proposed transaction without adversely af­ aggregate deposits of $120.6 million, representing fecting Bank’s capital structure. These consid­ 6.6 per cent of total deposits of commercial banks erations are consistent with approval of the ap­ in the State. (All banking data are as of December plication. Consummation of the proposed transac­ 31, 1971, and reflect bank holding company tion would ensure continuation of local ownership formations and acquisitions approved through May and management of Bank, and considerations re­ 31, 1972.) Upon acquisition of Bank ($40.7 mil­ lating to the financial and managerial resources and lion of deposits) Applicant’s share of deposits in future prospects of Bank thus weigh toward ap­ the State would increase by 2.2 percentage points proval of the application. Considerations relating and its present ranking would remain unchanged. to the convenience and needs of the communities Bank, the largest of three banks in Roswell, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 723 New Mexico, operates six banking offices in Ros­ Bank and the fact that no other banking organi­ well and adjacent communities and controls ap­ zation has indicated a willingness to provide such proximately 44 per cent of total deposits in com­ assistance, the Board views this proposal as the mercial banks in Chaves County, New Mexico, most appropriate means presently available to which approximates its banking market. The sec­ eliminate Bank’s operating difficulties without ond and third largest banks in this market, are creating serious anticompetitive consequences in subsidiaries of the first and third largest multi-bank the Chaves County banking market. Therefore, holding companies operating in the State. financial and managerial considerations, as they Applicant’s acquisition of Bank would consti­ relate to Applicant, its subsidiary banks and Bank tute its initial entry into the market, and its subsi­ lend significant weight toward approval of the diary banking office closest to Bank is located application. approximately 54 miles south of Bank. No com­ Although it does not appear that any needs of petition exists between Bank and any of Appli­ the banking public and Bank’s market are going cant’s subsidiary banks, nor does it appear likely unserved, to the extent Applicant is able to provide that such competition would develop in the future additional specialized services through Bank, as in the light of the distances separating Bank from a more competitive force in the Chaves County Applicant’s subsidiaries, the State’s restrictive market, convenience and needs considerations are branching laws, and the low population densities consistent with approval. It is the Board’s judg­ in the areas involved. Entry de novo by Applicant ment that the proposed transaction would be in also appears unlikely in view of the static eco­ the public interest, and that the application should nomic conditions in the Roswell area. Con­ be approved. summation of the proposal herein would neither On the basis of the record, the application is eliminate any meaningful existing competition nor approved for the reasons summarized above. The foreclose significant potential competition. transaction shall not be consummated (a) before The Board notes that Applicant’s rapid expan­ the thirtieth calendar day following the effective sion program (acquisition of seven banks since date of this Order or (b) later than three months 1967) has, in part, been responsible for creating after the effective date of this Order, unless such a strain on Applicant’s overall financial and mana­ period is extended for good cause by the Board, gerial resources. Since a number of banks acquired or by the Federal Reserve Bank of Dallas pursuant were experiencing asset, capital and management to delegated authority. By order of the Board of Governors, effective difficulties, it has been necessary for Applicant to provide management and financial assistance to July 5, 1972. these banks. Applicant’s efforts to improve these Voting for this action: Vice Chairman Robertson and Gov­ conditions have not, as yet, been successful and ernors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Mitchell. it is likely that significant additional assistance will be required. (Signed) M ichael A. Greenspan, Applicant has been providing needed capital and [seal] Assistant Secretary of the Board. management assistance to Bank which has experi­ enced both financial and management difficulties FIRST NATIONAL CITY CORPORATION, during the past few years. Declining economic NEW YORK, NEW YORK conditions in the late 1960’s in the Chaves County area and loan losses suffered by Bank have con­ Order Approving Acquisition of Bank tributed to its present condition. Additional assis­ First National City Corporation, New York, tance is necessary to permit Bank to continue New York, a bank holding company within the serving the Chaves County area as a viable finan­ meaning of the Bank Holding Company Act, has cial institution. Applicant has expressed its wil­ applied for the Board’s approval under § 3(a)(3) lingness to continue to assist Bank through in­ of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 creased contribution of managerial and financial per cent of the voting shares (less directors’ qual­ resources. Its proposal to make an immediate ifying shares) of the successor by merger to The contribution of capital to Bank upon consumma­ National Exchange Bank of Castleton-on-Hudson, tion of the proposal herein will provide Bank with Castleton-on-Hudson, New York (“Bank”). The needed resources, however, the need for additional bank into which Bank is to be merged has no assistance in the future also appears likely. In the significance except as a means to acquire all of light of Applicant’s past record of assistance to the shares of Bank. Accordingly, the proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN □ AUGUST 1972 acquisition of the shares of the successor organi­ the proposed acquisition would be in the public zation is treated herein as the proposed acquisition interest and that the application should be ap­ of shares of Bank. proved. Notice of receipt of the application has been On the basis of the record, the application is given in accordance with § 3(b) of the Act, and approved for the reasons summarized above. The the time for filing comments and views has ex­ approval herein neither provides authority to pired. The Board has considered the application Applicant to continue in the nonbank activities nor and all comments received in the light of the to retain nonbank shares nor requires the Applicant factors set forth in § 3(c) of the Act (12 U.S.C. to modify or terminate said activities or holdings. 1842(c)) and finds that: However, consummation of the proposal herein is Applicant, the largest banking organization in subject to the continuing authority of the Board New York in terms of domestic deposits, controls to require modification or termination of such three subsidiary banks1 with aggregate deposits of activities or holdings (within a period no shorter approximately $13.8 billion, representing 14.7 per than 2 years), if the Board determines that the cent of the total deposits in commercial banks in continued combination of banking and onbanking the State.2 Consummation of the proposal would interests is likely to have an adverse effect on the not significantly increase Applicant’s share of de­ public interest. The transaction shall not be con­ posits in the State. summated (a) before the thirtieth calendar day Bank, with deposits of $12.3 million, operates following the effective date of this Order or (b) four offices in Renssalaer County, which is part later than three months after the effective date of of the Albany banking market. Bank is the twelfth this Order, unless such period is extended for good largest of fourteen banks in that market, control­ cause by the Board, or by the Federal Reserve ling 1.1 per cent of deposits therein. Applicant’s Bank of New York pursuant to delegated author­ nearest existing subsidiary bank is 100 miles from ity. Bank. No significant existing or potential com­ By order of the Board of Governors, effective petition would be foreclosed by consummation of July 7, 1972. this proposal. Voting for this action: Chairman Burns and Governors In addition, the Albany banking market is con­ Robertson, Mitchell, Sheehan, and Bucher. Voting against this centrated, with three of fourteen banks controlling action: Governor Brimmer. Absent and not voting: Governor Daane. over 56 per cent of deposits. Bank is presently affiliated with the largest bank in the market and (Signed) M ichael A. G reenspan, Applicant’s acquisition of Bank should result in [seal] Assistant Secretary of the Board. disaffiliation. Accordingly, consummation of the proposal will likely have a procompetitive effect, since Bank, with Applicant’s support, should Dissenting Statement of Governor Brimmer compete more aggressively with the larger institu­ This application should not be approved until tions. after the Board has determined whether the com­ Considerations related to the financial and man­ bination of Applicant’s existing banking and non­ agerial resources of Applicant, its subsidiary banking businesses is consistent with the purposes banks, and Bank are satisfactory and consistent of the Bank Holding Company Act, as amended. with approval. Although there is no evidence that On October 26, 1971, the Board issued for the banking needs of the communities to be served public comment a proposed regulation that would are not being adequately met at present, Applicant require one-bank holding companies to divest their proposes to provide, through Bank, another com­ nonbanking activities within two years after the petitive source of specialized banking services. acquisition of an additional bank. At the same Convenience and needs considerations are consis­ time, the Board put one-bank holding companies tent with approval. It is the Board’s judgment that (including Applicant) on notice that the acquisition of an additional bank would make them subject xOn April 19, 1972, the Board of Governors announced its to the proposed regulation. On April 25, 1972, approval of Applicant’s plan to acquire a fourth bank, the the Board announced that instead of adopting the successor by merger to State Bank of Honeoye Falls, Honeoye Falls, New York, with deposits of $7.4 million. proposed regulation it would proceed to determine 2Unless otherwise noted, deposit data are as of December on a case-by-case basis whether the continued 31, 1971, market data are as of June 30, 1971, adjusted to combination of banking and nonbanking interests reflect holding company formations and acquisitions through April 7, 1972. by certain one-bank holding companies would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 725 have an adverse effect on the public interest. New Jersey and is the smallest multi-bank holding Applicant is the largest banking organization in company in the State.1 Acquisition of Bank (de­ New York and the second largest banking organi­ posits of about $17 million) would increase zation in the country. Shortly before Applicant Applicant’s share of deposits in the State by only became subject to regulation by the Board on about one-tenth of one percentage point and would January 1, 1971, it acquired several nonbanking not alter its ranking. businesses—including Advance Mortgage Com­ Bank is the smallest organization operating in pany and Cresap, McCormick and Paget (a man­ the Vineland-Millville-Bridgeton area with 3.3 per agement consulting firm),1 both leading competi­ cent of area deposits. Although one of Applicant’s tors in their respective industries. subsidiary banks is located in this area and controls The combination of one of the country’s largest 5 per cent of area deposits, there is little existing banks with such nonbanking companies could re­ competition between this bank, or any of Appli­ sult in the undesirable consequences that the Bank cant’s other subsidiary banks, and Bank. Three Holding Company Act was enacted to prevent. By of the banks competing in the Vineland-Millvilleapproving the present application without first Bridgeton area control over $200 million in de­ considering whether Applicant should be permitted posits each, and four of the banks are affiliated to continue to engage in its nonbanking businesses, with three of the six largest bank holding compa­ the Board is ignoring its stated position of April nies in New Jersey. It appears that there is little 25, 1972. I choose not to join in this circumvention likelihood of substantial competition developing in of established Board policy. Accordingly, I dissent the future between Bank and any of Applicant’s from the Board’s action in this matter. present subsidiary banks. Consummation of the proposal would have no adverse effects on existing CITIZENS BANCORP, or potential competition and may create more VINELAND, NEW JERSEY effective competition for the larger organizations in the market. Order Approving Acquisition of Bank Considerations relating to the financial condi­ tion, managerial resources, and prospects of Citizens Bancorp, Vineland, New Jersey, a Applicant, its subsidiary banks, and Bank are bank holding company within the meaning of the generally satisfactory, and are consistent with ap­ Bank Holding Company Act, has applied for the proval of the application. Considerations relating Board’s approval under § 3(a)(3) of the Act (12 to the convenience and needs of the communities U.S.C. 1842(a)(3)) to acquire 100 per cent (less to be served lend weight for approval of the directors’ qualifying shares) of the voting shares application, since Applicant plans to provide of the successor by merger to Citizens National overdraft checking privileges and data processing Bank of South Jersey, Bridgeton,. New Jersey (“Bank”). The bank into which Bank is to be services which are not presently available to cus­ tomers of Bank. It is the Board’s judgment that merged has no significance except as a means to consummation of the proposed acquisition would facilitate the acquisition of voting shares of Bank. be in the public interest and the application should Accordingly, the proposed acquisition is treated be approved. herein as the proposed acquisition of the shares of Bank. On the basis of the record, the application is approved for the reasons summarized above. The Notice of the application, affording opportunity for interested persons to submit comments and transaction shall not be consummated (a) before the thirtieth calendar day following the effective views, has been given in accordance with § 3(b) date of this Order or (b) later than three months of the Act. The time for filing comments and views after the effective date of this Order, unless such has expired, and the Board has considered the period is extended for good cause by the Board, application and all comments received in light of or by the Federal Reserve Bank of Philadelphia the factors set forth in § 3(c) f the Act (12 U.S.C. pursuant to delegated authority. 1842(c)). By order of the Board of Governors, effective Applicant controls three banks with deposits of July 12, 1972. about $54 million, representing approximately .3 per cent of total deposits of commercial banks in banking data are as of December 31, 1971, and reflect holding company formations and acquisitions approved by the ^he Board has recently determined that management con­ Board through May 31, 1972, and include the Board’s approval sulting is not a permissible activity for bank holding compa­ of this date of Applicant’s acquisition of The First National nies. (See 12 CFR 225.4(a)(5), as amended June 6, 1972.) Bank of Marlton, Marlton, New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN □ AUGUST 1972 Voting for this action: Chairman Burns and Governors sidiary and Bank. Consummation of the proposal Robertson, Daane, Brimmer, Sheehan, and Bucher. Absent would be consistent with approval of the applica­ and not voting: Governor Mitchell. tion. (Signed) Tynan Smith, Considerations relating to the financial condi­ [seal] Secretary of the Board. tion, managerial resources, and prospects of Applicant and its subsidiary banks are generally Order Approving Acquisition of Bank satisfactory. On the other hand, Bank has shown Citizens Bancorp, Vineland, New Jersey, a a poor operating history and a lack of management bank holding company within the meaning of the continuity. Affiliation by Bank with Applicant Bank Holding Company Act, has applied for the should help to alleviate these problems and provide Board’s approval under § 3(a)(3) of the Act (12 for a strengthened institution. Applicant has al­ U.S.C. 1842(a)(3)) to acquire 100 per cent (less ready assisted Bank in obtaining additional capital directors’ qualifying shares) of the successor by which was strongly required. Considerations re­ merger to The First National Bank of Marlton, lating to these factors lend strong weight for ap­ Marlton, New Jersey (“Bank”). The bank into proval of this application. Considerations relating which Bank is to be merged has no significance to the convenience and needs of the communities except as a means to facilitate the acquisition of to be served are consistent with approval of the voting shares of Bank. Accordingly, the proposed application. It is the Board’s judgment that con­ acquisition is treated herein as the proposed ac­ summation of the proposed acquisition would be quisition of the shares of Bank. in the public interest and the application should Notice of the application, affording opportunity be approved. for interested persons to submit comments and On the basis of the record, the application is views, has been given in accordance with § 3(b) approved for the reasons summarized above. The of the Act. The time for filing comments and views transaction shall not be consummated (a) before has expired, and the Board has considered the the thirtieth calendar day following the effective application and all comments received in light of date of this Order or (b) later than three months the factors set forth in § 3(c) of the Act (12 U.S.C. after the effective date of this Order, unless such 1842(c)). period is extended for good cause by the Board Applicant controls two banks with deposits of or by the Federal Reserve Bank of Philadelphia about $33 million, representing approximately .2 pursuant to delegated authority. per cent of total deposits of commercial banks in By order of the Board of Governors, effective New Jersey and is the smallest multi-bank holding July 12, 1972. company in the State.1 Acquisition of Bank (de­ Voting for this action: Chairman Burns and Governors posits of about $21 million) would increase Robertson, Daane, Brimmer, Sheehan, and Bucher. Absent Applicant’s share of the deposits in the State by and not voting: Governor Mitchell. only about .1 of one percentage point and would (Signed) Tynan Smith, not alter its ranking. [seal] Secretary of the Board. There is little existing competition between Applicant and Bank, though one of Applicant’s HMT CORPORATION, two banking subsidiaries is located in the Camden MIAMI, FLORIDA area as is Bank. Neither Bank nor this subsidiary is a significant factor in the Camden area, with Order Approving Formation of Bank market shares of 1.2 and .6 per cent, respectively, Holding Company and the combination of these two banks would still HMT Corporation, Miami, Florida, has applied leave Applicant ranking only as the eleventh larg­ for the Board’s approval under §3(a)(1) of the est banking organization in the Camden area. Bank Holding Company Act (12 U.S.C. 1842 There is little likelihood of substantial future com­ (a)(1)) of formation of a bank holding company petition developing between this subsidiary and through acquisition of 80 per cent or more of the Bank due to the large number of intervening voting shares of each of Bank of Perrine, Perrine, banks, New Jersey’s branching laws, and the Florida (“Perrine Bank”), and Bank of Cutler somewhat limited resources of Applicant’s sub­ Ridge, Cutler Ridge, Florida (“Cutler Ridge Bank”). banking data are as of December 31, 1971, and reflect Notice of the application, affording opportunity holding company formations and acquisitions approved by the Board through May 31, 1972. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 727 views, has been given in accordance with § 3(b) of the area to be served are consistent with, and of the Act. The time for filing comments and views lend some support toward, approval of the ap­ has expired, and the Board has considered the plication. It is the Board’s judgment that the application and all comments received in light of proposed transaction would be in the public inter­ the factors set forth in § 3(c) of the Act (12 U.S.C. est and that the application should be approved. 1842(c)). On the basis of the record, the application is Applicant is an inactive corporation recently approved for the reasons summarized above. The organized under the laws of the State of Florida transaction shall not be consummated (a) before for the purpose of acquiring Perrine Bank ($17.3 the thirtieth calendar day following the effective million in deposits) and Cutler Ridge Bank ($5.6 date of this Order or (b) later than three months million in deposits). (All banking data are as of after the effective date of this Order, unless such December 31, 1971, adjusted to reflect holding period is extended for good cause by the Board, company formations and acquisitions approved or by the Federal Reserve Bank of Atlanta pursuant through June 30, 1972.) Applicant proposes to to delegated authority. acquire shares of the subject banks in accordance By order of the Board of Governors, effective with the plan of reorganization; directly, through July 12, 1972. an exchange of stock, and indirectly through the Voting for this action: Chairman Bums and Governors acquisition of 90 per cent or more of the out­ Robertson, Daane, Brimmer, Sheehan, and Bucher. Absent standing shares of Florida Shares, Inc., a Florida and not voting: Governor Mitchell. corporation which owns stock of the Perrine and (Signed) Tynan Smith, Cutler Ridge Banks. It is proposed that, subse­ [seal] Secretary of the Board. quently, Florida Shares, Inc. will be merged into Applicant under the name “Florida Shares, Inc.”. NORTH AMERICAN MORTGAGE CORPORA­ As a result of consummation of the proposal, TION, Applicant would rank as the twenty-sixth largest ST. PETERSBURG, FLORIDA bank holding company in the State through control of .14 per cent of aggregate commercial bank Order Approving Acquisition of a Bank deposits in the State and would become, in terms North American Mortgage Corporation, St. Pe­ of deposits, the eleventh largest of the thirteen tersburg, Florida, a bank holding company within bank holding companies operating in Dade County the meaning of the Bank Holding Company Act, where both subject banks are located, and, to­ has applied for the Board’s approval under gether, control .7 per cent of the commercial bank § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to deposits in that market. Notwithstanding the fact acquire 23.9 per cent of the voting shares of The that their service areas overlap, the subject banks American Bank, St. Petersburg, Florida do not presently engage in meaningful competition (“Bank”), a proposed new bank. nor are they likely to do so in the future in view Notice of receipt of the application has been of the close affiliation between them. (The given in accordance with § 3(b) of the Act, and principal stockholders of Perrine Bank organized the time for filing comments and views has ex­ Cutler Ridge Bank in 1964; currently, nine direc­ pired. The Board has considered the application tors are common to both banks; and investment and all comments received in the light of the policies of both banks are identical and handled factors set forth in § 3(c) of the Act (12 U.S.C. by common management.) It is the Board’s judg­ 1842(c)). ment that approval of the formation would have Applicant controls one bank, the American Na­ no adverse effects on competition. tional Bank of Clearwater, Clearwater, Florida Applicant proposes to increase substantially (“American National”), with deposits of $11.2 Perrine Bank’s capital funds. In the light of this million, representing 0.1 per cent of total com­ consideration, the financial condition and manage­ mercial bank deposits in the State. (Banking data rial resources of the proposed group are regarded are as of June 30, 1971.) Approval of the acquisi­ as generally satisfactory, and prospects for the tion of Bank would not presently increase Appli­ system appear favorable. Applicant also proposes cant’s deposits since Bank is a proposed new bank. to introduce trust services at Perrine Bank, and Moreover, Applicant is one of the smallest bank­ it is expected that the community will benefit from ing organizations in the State of Florida. this additional source of banking services. Con­ Bank’s location is in the fastest growing area siderations relating to the convenience and needs in greater St. Petersburg. The relevant market Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN □ AUGUST 1972 appears to be somewhat underbanked. American On the basis of the record, the application is National is located 19 miles from the proposed approved for the reasons summarized above. The site of the Bank, with a number of banks and transaction shall not be consummated (a) before geographical barriers in the intervening area. The the thirtieth calendar day following the effective Board concludes that consummation of the date of this Order or (b) later than three months proposed acquisition would not adversely affect after the effective date of this Order, and provided competition in any relevant area. further that (c) The American Bank shall be open The financial and managerial resources and fu­ for business not later than six months after the ture prospects of Applicant, its subsidiary bank, effective date of this Order. The periods described and Bank are regarded as generally satisfactory in (b) and (c) hereof may be extended for good and consistent with approval. Considerations re­ cause by the Board, or by the Federal Reserve lating to the convenience and needs of the com­ Bank of Atlanta pursuant to delegated authority. munity lend some weight in favor of approval By order of the Board of Governors, effective since Bank will be able to provide a convenient, July 13, 1972. additional service for banking in the fastest grow­ Voting for this action: Chairman Burns and Governors ing area in greater St. Petersburg. It is the Board’s Robertson, Daane, Sheehan, and Bucher. Voting against this action: Governor Brimmer, on the basis of principles pre­ judgment that the proposed acquisition would be viously discussed in his dissenting statement of July 7, 1972 in the public interest and that the application in connection with the Board’s Order approving the application should be approved. of First National City Corporation to acquire the successor by merger to The National Exchange Bank of Castleton-on-Hud- Applicant is a one-bank holding company that son. (See page 723 of this Bulletin.) Absent and not voting: is engaged in certain mortage banking and insur­ Governor Mitchell. ance agency activities. These activities appear to (Signed) Tynan Smith, fall within the proviso in § 4(a)(2) of the Bank [seal] Secretary of the Board. Holding Company Act, as amended, the so-called “grandfather” provision. The approval herein Concurring Statem ent of Governor Ro­ neither provides authority to Applicant to continue bertson in the nonbank activities nor to retain nonbank In my judgment, a Board review of the combi­ shares nor requires the Applicant to modify or nation of a one bank holding company’s bank and terminate said activities or holdings. However, nonbank activities should precede Board approval consummation of the proposal herein is subject to of an application by such company to acquire an the continuing authority of the Board to require additional bank; and such order of approval should modification or termination of such activities or include, or be accompanied by, any Board deter­ holdings (within a period no shorter than 2 years), mination with respect to whether the Applicant if the Board determines that the continued combi­ shall modify or terminate its nonbank activities or nation of banking and nonbanking interests is holdings. likely to have an adverse effect on the public In this case, the Board has approved, subject interest. to a later review and determination, a procedure The provision of any credit, property or services to which I do not subscribe as a general rule. by the holding company or any affiliate thereof However, I have concurred in the approval (as in shall not be subject to any condition which, if a similar case in the recent past) on the basis of imposed by a bank, would constitute an unlawful the following considerations: tie-in arrangement under § 106 of the Bank Hold­ (1) the Board’s staff immediately will undertake ing Company Amendments of 1970. The non­ a review of the activities of Applicant so that the banking activities of Applicant shall not be altered Board may determine very shortly whether the in any significant respect from those engaged in combination of banking and nonbanking interests at the time of the filing of the application herein in Applicant’s holding company system is likely nor shall they be provided at any location other to have an adverse effect on the public interest, than as described in said application, except upon and compliance with the procedures of § 225.4(b)(1) (2) in the very near future, the Board will of Regulation Y; and no merger, or consolidation, consider adopting a procedure designed to provide or acquisition of assets other than in the regular such review and determination prior to Board course of business, to which Applicant or any action on such an application and take appropriate affiliate thereof is a party, shall be consummated steps to bring such procedure to the attention of without prior Board approval. all Applicants. 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LAW DEPARTMENT 729 Accordingly, I approve—in these limited cir­ Statutory considerations. Applicant, an Ohio cumstances, and because I am satisfied that there based company, has engaged in a variety of cor­ will follow shortly a review of Applicant’s activi­ porate activities since incorporation in 1921 (in­ ties and the adoption by the Board of an appro­ cluding the plastics, wire and cable, and footwear priate procedure for evaluating a combination of businesses), but presently limits its activities to bank and nonbank activities. ownership of 36.5 per cent of the voting shares of First Bancorporation, a one-bank holding com­ SEILON, INC., pany owning 100 per cent of the shares of Bank, TOLEDO, OHIO and ownership of a wholly-owned subsidiary, Thompson International Company, engaged in the Order Denying Approval of Acquisition of manufacture and sale of farm machinery directly Shares of a Bank Holding Company and through subsidiaries. Seilon, Inc., Toledo, Ohio, has applied for the Bank ($114.2 million of deposits), which is Board’s approval under § 3(a)(3) of the Bank headquartered in Reno and operates nineteen Holding Company Act (12 U.S.C. 1842(a)(3)) to branches throughout Nevada, is the fourth largest acquire up to an additional 63.5 per cent of the of eight commercial banks in the State and controls voting shares of First Bancorporation, Reno, Ne­ approximately 9 per cent of the total commercial vada, a one-bank holding company owning 100 bank deposits in the State.1 Applicant has no other per cent of the voting shares (less directors’ qual­ banking subsidiary and the proposal herein repre­ ifying shares) of Nevada National Bank, Reno, sents an increase in Applicant’s already substantial Nevada. (over 25 per cent) interest in Bank. Consummation Notice of the application, affording opportunity of Applicant’s proposal would not alter any exist­ for interested persons to submit comments and ing banking competition nor foreclose potential views, has been given in accordance with § 3(b) competition, nor have adverse effects on any of the Act. The time for filing comments and views competing bank in any relevant area. Nor does has expired, and the Board has considered the it appear that the convenience and needs of the application and all comments received in light of communities involved would be materially af­ the factors set forth in § 3(c) of the Act (12 U.S.C. fected as a result of consummation of Applicant’s 1842(c)). proposal. The Board concludes that considerations On the basis of the record, the application is relating to competition and convenience and needs denied for the reasons set forth in the Board’s are consistent with, but lend no weight toward, Statement of this date. approval of the application. By order of the Board of Governors, effective In acting on any application under the Bank July 20, 1972. Holding Company Act, the Board’s consideration Voting for this action: Vice Chairman Robertson and Gov­ must include an examination of the financial and ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab­ managerial resources and prospects of the holding sent and not voting: Chairman Burns. company and the banks involved. In evaluating (Signed) Tynan Smith, those factors in the present proposal, the Board [seal] Secretary of the Board. finds that a denial of the application is warranted. Applicant’s record of operations lacks a show­ Statement ing of financial strength and profitability. During the late 1960’s, Applicant disposed of several of Seilon, Inc., Toledo, Ohio, a registered bank its nonbanking subsidiaries, apparently because of holding company has applied to the Board of their failure to generate earnings and a need on Governors, pursuant to section 3(a)(3) of the Bank the part of Applicant to satisfy debt obligations. Holding Company Act of 1956 (12 U.S.C. Except for 1971, Applicant has incurred signifi­ 1842(a)(3)), for prior approval of the acquisition cant operating losses during the last five years and of up to an additional 63.5 per cent of the voting its operating profit in 1971 was due solely to its shares of First Bancorporation, Reno, Nevada, a investment in First Bancorporation. one-bank holding company that owns 100 per cent The Board has previously stressed the impor­ of the voting shares (less directors’ qualifying tance of financial strength of a bank holding com­ shares) of Nevada National Bank, Reno, Nevada pany so that it can assist its subsidiaries with (“Bank”) and engages in no other activity. capital if the need arises. Given the present state Applicant presently owns 36.5 per cent of the outstanding shares of First Bancorporation. banking data are as of June 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN □ AUGUST 1972 of Applicant’s financial condition, it is unlikely could be paid followed by a payout of several that Applicant would be able to provide meaning­ years’ accumulated earnings to common stock­ ful financial assistance to Bank in the reasonably holders. The exchange plan would enable Appli­ near future. Only the earnings of the Bank give cant to take dividends out of First Bancorporation Applicant an operating profit; Applicant’s non­ without having to give a share of them to the banking activities have been operated at a loss. holders of the preferred stock (who are now hold­ Consummation of the proposal herein would give ers of common stock of First Bancorporation). Applicant majority control of First Bancorporation Moreover, since the non-cumulative preferred and Bank and would position Applicant to en­ stock would not carry voting rights—unless deavor to improve its financial condition at the Applicant refrained from paying dividends for expense of Bank through liberal or excessive divi­ three consecutive years—the present shaeholders dends or management fees drawn from Bank. Such of First Bancorporation who exchange their com­ a program could put an undue strain on Bank’s mon shares for said preferred stock would have financial condition. no vote in the policies of Applicant for at least The Board has additional and serious reserva­ three years. In the Board’s view, such an exchange tions with respect to the managerial resources of offer is adverse to the interests of the present Seilon. Applicant, headquartered in Ohio, ac­ shareholders of First Bancorporation other than quired its interest in First Bancorporation, a Ne­ Applicant. vada corporation, in 1968 and 1969.2 At the Summary and conclusion. On the basis of all present time only one of Applicant’s five directors relevant facts contained in the record, and in light is a resident of Nevada. Absentee management of of the factors set forth in section 3(c) of the Act, the nature involved in Applicant’s structure is noting particularly the present financial condition regarded by the Board as less than desirable, and managerial resources of Applicant, it is the certainly substantially less effective than on-the- Board’s judgment that consummation of the pro­ scene-management, which is usually better able posal would not be in the public interest and that to react quickly when and if financial, operational, the application should be denied. or managerial difficulties arise in a subsidiary bank. Further, on-the-scene-management is more FIRST AMERICAN BANCSHARES, INC., attuned to local banking needs than absentee man­ ST. JOSEPH, MISSOURI agement. Further supporting denial of Applicant’s pro­ Order Approving Mergers of Bank Holding posal, in the Board’s judgment, is the fact that Companies Applicant’s board of directors has no member with First American Bancshares, Inc., St. Joseph, in-depth banking experience. The Board is unable Missouri, a bank holding company within the to conclude that the general interest of the public meaning of the Bank Holding Company Act, has and the particular interests of the community filed separate applications for the Board’s approval served by Bank would be benefited or served by under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) permitting Applicant to expand its control over to acquire additional voting shares of the following First Bancorporation at this time. banks: (1) 238 of the voting shares of First Na­ The Board is also concerned about the fairness tional Bank of Stewartsville, Stewartsville, Mis­ of the exchange offer contemplated by Applicant. souri (“Stewartsville Bank”) ($3.4 million of de­ The present holders of First Bancorporation com­ posits); (2) 352 of the voting shares of Bank of mon stock (other than Applicant) would be offered Skidmore, Skidmore, Missouri (“Skidmore 5 Vi per cent non-cumulative convertible preference Bank”) ($3.2 million of deposits); (3) 454 of the stock of Applicant. Applicant would not be re­ voting shares of First National Bank of Plattsburg, quired to pay dividends on the preferred stock even Plattsburg, Missouri (“Plattsburg Bank”) ($8.4 if there are current earnings. Such an arrangement million of deposits); and (4) 836 of the voting invites problems. Dividends on the preferred stock shares of Bank of Edgerton, Edgerton, Missouri could be passed for a number of years, after which (“Edgerton Bank”) ($2.6 million of deposits). a dividend of 5Vi per cent on the preferred stock The proposed acquisitions are to be accom­ 2Applicant became a bank holding company subject to the plished by means of mergers with Applicant of jurisdiction of the Board as a result of the enactment of the two other bank holding companies under common 1970 Amendments to the Bank Holding Company Act; Appli­ control with Applicant, namely, First Bancorpora­ cant’s original acquisition of shares of First Bancorporation did not require prior Board approval. tion, Inc. and Missouri Bancorporation, Inc., each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 731 located in St. Joseph, Missouri. A merger between but also over the other subject banks, as if they two or more bank holding companies involves a were a single banking group.2 Each of the banks reduction in the number of bank holding compa­ whose shares are to be acquired by Applicant is nies in a State. The Board regards the applications located in a small community in northwest Mis­ as falling under section 3(a)(5) of the Act, which souri and primarily serves the residents of its requires the Board’s prior approval “for any bank immediate community. Each bank is the only bank holding company to merge or consolidate with any located in its respective community. The closest other bank holding company.” The Board has proximity of each such bank to any other such considered the applications on this basis. bank or to Applicant’s present subsidiary is 12 Notice of the applications, affording opportunity road miles and there does not appear to be a for interested persons to submit comments and significant overlap in the areas primarily served views, has been given in accordance with § 3(b) by these banks. Moreover, due to their operation of the Act. The time for filing comments and views under common control and the fact that the pros­ has expired, and the Board has considered the pect of a change in this relationship appears re­ applications and all comments received in light of mote, it does not seem that any significant com­ the factors set forth in § 3(c) of the Act (12 U.S.C. petition among such banks would develop in the 1842(c)) and finds that: future. It therefore appears that approval of the Applicant, a one-bank holding company by vir­ applications would not eliminate significant tue of its ownership of 50.6 per cent of the present or potential competition, and the Board outstanding voting shares of First American Bank concludes that competitive considerations are con­ of Union Star (formerly, Farmers State and Peo­ sistent with such approval. ples Bank), Union Star, Missouri ($3.4 million The financial condition and managerial re­ of deposits) also holds between 21 and 23 per cent sources of Applicant, together with the two bank of the outstanding voting shares of the four subject holding companies to be merged with Applicant, banks. Upon consummation of the proposal, and of the banks that are or will thereby become Applicant would hold: 69.4 per cent of the out­ subsidiaries of Applicant, are considered satis­ standing voting shares of Stewartsville Bank; 92 factory. The future prospects of Applicant and per cent of the outstanding voting shares of Skid­ each such subsidiary bank appear favorable. Con­ more Bank; 68.3 per cent of the outstanding voting solidation of the structure under which the subject shares of Plattsburg Bank; and 63.7 per cent of banks are being operated may conceivably im­ the outstanding voting shares of Edgerton Bank. prove internal operating efficiency of the banking First Bancorporation and Missouri Bancorpora­ group of which they are, in effect, members. tion are bank holding companies by virtue of the Unification of the group may contribute to its fact that each owns more than 25 per cent of the ability as a regional banking organization to meet voting shares of the Skidmore Bank.1 Applicant competition from the larger Statewide multi-bank and such bank holding companies are small bank­ holding companies. It appears that consummation ing organizations in the competitive structure of of Applicant’s proposal would not have any im­ Missouri banking. Upon consummation of the mediate effects on the convenience and needs of proposal herein Applicant would become the sev­ the communities to be served. Considerations re­ enteenth largest of eighteen multi-bank holding lating to such convenience and needs are deemed companies in Missouri and its share of deposits to be consistent with approval of the applications. of commercial banks in the State would increase It is the Board’s judgment that the proposed trans­ from .03 to .17 per cent and thus concentration actions are consistent with the public interest and of banking resources therein would not be signifi­ should be approved. cantly affected. On the basis of the record, the applications are Applicant, First Bancorporation and Missouri approved for the reasons summarized above. The Bancorporation are under common control by one transactions shall not be consummated (a) before person who exercises control not only over First the thirtieth calendar day following the effective American Bank of Union Star and Skidmore Bank, date of this Order or (b) later than three months after the effective date of this Order, unless such *First Bancorporation holds 23.8 per cent of Stewartsville period is extended for good cause by the Board, Bank; 26.2 per cent of Skidmore Bank; 23.9 per cent of Plattsburg Bank and; 23.9 per cent of Edgerton Bank. Missouri 2A11 three bank holding companies were organized between Bancorporation holds 23.8 per cent of Stewartsville Bank; 44.2 1956 and 1963 by Applicant’s president and associated indi­ per cent of Skidmore Bank; 21.5 per cent of Plattsburg Bank viduals and these companies acquired control of the subject and 17.9 per cent of Edgerton Bank. banks between 1956 and 1968. 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732 FEDERAL RESERVE BULLETIN □ AUGUST 1972 or by the Federal Reserve Bank of Kansas City trols 24 per cent of the shares of Bank ($23.9 pursuant to delegated authority. million deposits), one of the smaller banks in the By order of the Board of Governors, effective Dallas banking market. Applicant proposes to have July 20, 1972. its trusteed affiliate acquire 1,036 shares of Bank Voting for this action: Chairman Burns and Governors through a rights offering. Applicant’s trusteed af­ Robertson, Brimmer, Sheehan, and Bucher. Absent and not filiate will be acquiring less than its proportionate voting: Governors Mitchell and Daane. interest in the offering, with the result that Appli­ (Signed) Tynan Smith, cant’s interest in Bank will drop to 23.7 per cent [seal] Secretary of the Board. of the outstanding shares. The transaction involves neither an expansion of Applicant nor an increase FIRST NATIONAL BANK IN DALLAS AND in the banking resources controlled by it. Con­ FIRST NATIONAL SECURITIES COMPANY summation of the proposal would eliminate neither IN DALLAS, existing nor potential competition nor does it ap­ DALLAS, TEXAS pear that there would be any adverse effects on any bank in the area. Order Approving Acquisition of Bank The financial and managerial resources and First National Bank in Dallas, Dallas, Texas, prospects of Applicant, its subsidiaries, and Bank owns 26.41 per cent of South Oak Cliff Bank, are regarded as satisfactory and consistent with Dallas, Texas,1 is a bank holding company within approval of the application. The convenience and the meaning of the Bank Holding Company Act, needs of the area involved would not be affected and has applied for the Board’s approval under by consummation of Applicant’s proposal. It is § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to the Board’s judgment that the application should acquire, through a rights offering, 1,036 of the be approved. voting shares of North Dallas Bank & Trust Co., On the basis of the record, the application is Dallas, Texas (“Bank”). Applicant states that the approved for the reasons summarized above. The proposed acquisition will be made directly by First transaction shall not be consummated (a) before National Securities Company in Dallas, Dallas, the thirtieth calendar day following the effective Texas, Applicant’s trusteed affiliate, which now date of this Order or (b) later than three months controls 24 per cent of the outstanding shares of after the effective date of this Order, unless such Bank. period is extended for good cause by the Board, Notice of the application, affording opportunity or by the Federal Reserve Bank of Dallas pursuant for interested persons to submit comments and to delegated authority. views, has been given in accordance with § 3(b) By order of the Board of Governors, effective of the Act. The time for filing comments and views July 25, 1972. has expired, and none has been timely received. The Board has considered the application in light Voting for this action: Chairman Burns and Governors Robertson, Daane, and Sheehan. Absent and not voting: Gov­ of the factors set forth in § 3(c) of the Act (12 ernors Mitchell, Brimmer, and Bucher. U.S.C. 1842(c)). Applicant with its one subsidiary bank controls (Signed) Tynan Smith, total deposits of $1.69 billion, representing 5.7 [seal] Secretary of the Board. per cent of the total commercial bank deposits in the State, and is the second largest banking orga­ Y.B. CORPORATION, nization in the Dallas SMS A and in Texas. SOUTH SIOUX CITY, NEBRASKA Through its trusteed affiliate2 Applicant now con- Order Approving Formation of Bank Hold­ *The interest in South Oak Cliff Bank was acquired in 1966 ing Company in satisfaction of a debt previously contracted. Applicant’s trusteed affiliate controls more than 5 per cent Y.B. Corporatibn, South Sioux City, Nebraska, but less than 25 per cent of each of twelve other Texas banks. has applied for the Board’s approval under § The Board’s action herein does not constitute a determination 3(a)(1) of the Bank Holding Company Act (12 that any of the banks in which Applicant’s trusteed affiliate owns shares is or may become a subsidiary of Applicant; nor U.S.C. 1842(a)(1)) of formation of a bank holding does the action herein indicate that the Board would in the company through acquisition of 81 per cent of the future permit Applicant to acquire directly or indirectly any additional shares of any of said banks. However, the determi­ voting shares of Nebraska State Bank, South Sioux nation herein does not preclude the Board from determining City, Nebraska (“Bank”). that Applicant exercises a controlling influence over the man­ Notice of the application, affording opportunity agement or policies of any of said banks within the meaning of § 2(a)(2)(C) of the Act. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 733 views, has been given in accordance with § 3(b) of Bank) appear satisfactory and lend some weight of the Act. The time for filing comments and views toward approval of the application. To the extent has expired, and the Board has considered the that formation of the proposed bank holding com­ application and all comments received in light of pany will facilitate the continued provision of the factors set forth in § 3(c) of the Act (12 U.S.C. sound management policies and thereby enable 1842(c)). Bank to provide expanded banking services, con­ Applicant, a newly organized corporation, was siderations relating to the convenience and needs formed by the present management of Bank for of the relevant community served by Bank lend the purpose of becoming a bank holding company weight toward approval of this application. through the purchase of shares of Bank. Upon On the basis of the record, the application is acquisition of Bank ($11.9 million of deposits), approved for the reasons summarized above. The Applicant would control approximately . 3 per cent transaction shall not be consummated (a) before of the commercial bank deposits in Nebraska. (All the thirtieth calendar day following the effective banking data are as of December 31, 1971.) As date of this Order or (b) later than three months the proposed transaction represents a sale of shares after the effective date of this Order, unless such of Bank by individuals to a presently nonoperating period is extended for good cause by the Board, holding company, consummation of the proposal or by the Federal Reserve Bank of Kansas City would not eliminate existing or potential competi­ pursuant to delegated authority. tion and would not result in an increase in the By order of the Board of Governors, effective concentration of banking resources in any relevant July 25, 1972. area. Voting for this action: Chairman Burns and Governors Bank, located in South Sioux City, Nebraska, Robertson, Daane, and Sheehan. Absent and not voting: Gov­ is the largest of two banks in that city. Bank ernors Mitchell, Brimmer, and Bucher. operates in the Sioux City, Iowa-Nebraska metro­ (Signed) Tynan Smith, politan area (which approximates its relevant mar­ [seal] Secretary of the Board. ket area). For a number of years, prior to the assumption MANUFACTURERS HANOVER of active control by Bank’s present management CORPORATION, in February 1971, Bank’s condition was adversely NEW YORK, NEW YORK affected by frequent changes in management (four managing officers in seven years) and unprofitable Order Approving Acquisition of Bank credit policies. Bank’s financial condition has been Manufacturers Hanover Corporation, New substantially improved by the introduction of more York, New York, a bank holding company within profitable loan policies and effective management the meaning of the Bank Holding Company Act, supervision by two individuals responsible for has applied for the Board’s approval under § Applicant’s organization. The Director of Banking 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ for the State of Nebraska, in recommending ap­ quire 100 per cent of the voting shares (less proval of the proposed transaction, has expressed directors’ qualifying shares) of the successor by confidence in Bank’s present management. He has merger to First National Bank of Bay Shore, Bay stated, “ . . . we feel that they are capable of Shore, New York (“FNB”). The bank into which successfully operating the bank involved.” FNB is to be merged has no significance except Upon consummation of the proposed transac­ as a means to facilitate the acquisition of the voting tion, Applicant would begin operations with a shares of FNB. Accordingly, the proposed ac­ relatively high acquisition debt. Applicant quisition of the shares of the successor organi­ proposes to retire this debt within ten years. Based zation is treated herein as the proposed acquisition upon projected future earnings of Bank and of the shares of FNB. Applicant’s proposals with respect to management Notice of the application, affording opportunity and dividend policies of Bank, it appears probable for interested persons to submit comments and that Applicant would be able to retire its acquisi­ views, has been given in accordance with § 3(b) tion debt within this period. of the Act. The time for filing comments and views On the basis of the facts of record as sum­ has expired, and the Board has considered the marized herein, the financial and managerial re­ application and all comments received in light of sources and future prospects of Bank and Appli­ the factors set forth in § 3(c) of the Act (12 U.S.C. cant (which are entirely dependent on the earnings 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN □ AUGUST 1972 Applicant controls one bank, Manufacturers of Applicant, MHTC, and FNB are considered to Hanover Trust Company (“MHTC”), with de­ be satisfactory, the managements of each are posits of $9.8 billion, representing 10.4 per cent deemed capable, and their prospects appear favor­ of total commercial bank deposits in the State of able. Banking factors are consistent with approval New York, and ranks as the third largest banking of the application. Although the major banking system in the State. (All banking data are as of needs of the area are satisfactorily served at the December 31, 1971, adjusted to reflect holding present time, Applicant proposes to assist FNB in company formations and acquisitions through June providing new services in international banking 30, 1972.) The acquisition of FNB with deposits and lease financing. Considerations relating to the of $59.9 million would not change Applicant’s convenience and needs of the communities to be present rank among State banking organizations served are consistent with and lend some support nor significantly increase the concentration of to approval of the application. It is the Board’s banking resources in any relevant areas. judgment that the proposed transaction is in the FNB is located in the Village of Bay Shore in public interest and that the application should be southwestern Suffolk County; is the thirteenth approved. largest of 32 banks headquartered in New York’s On the basis of the record, the application is First Banking District and ranks fourth largest approved for the reasons summarized above. The among the 16 banks located in the Babylon-Islip transaction shall not be consummated (a) before Market. Eight New York City based holding com­ the thirtieth calendar day following the effective panies are represented in the Market. The nearest date of this Order or (b) later than three months subsidiary banking office of MHTC to an FNB after the effective date of this Order, unless such branch is the Massapequa office located in Nassau period is extended for good cause by the Board, County, a distance of nine miles from the West or by the Federal Reserve Bank of New York, Islip office of FNB, and the offices of 22 financial pursuant to delegated authority. institutions are located in the intervening area. By order of the Board of Governors, effective These institutions compete in separate banking July 25, 1972. markets and consummation of the proposed ac­ Voting for this action: Chairman Burns and Governors quisition would not eliminate any meaningful Sheehan and Bucher. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: Governors amount of existing competition between these or Mitchell and Daane. other offices of MHTC and FNB. Although some potential competition could be (Signed) Tynan Smith, eliminated by consummation of the present pro­ [seal] Secretary of the Board. posal, it appears that such competition would not be of a substantial nature. Applicant could enter Dissenting Statement of Governors Robert­ Suffolk County de novo or by acquisition of a son and Brimmer smaller bank. However, State banking laws restrict We would deny the application on the grounds the branching operations of newly-chartered banks that consummation of the acquisition would result by holding companies until January 1976, and it in adverse effects on competition which would not appears that the acquisition of one of the nine be offset by any special benefits to the public. remaining, somewhat smaller, Suffolk County In this case, we are confronted again with a banks would not be significantly less anticompeti­ proposal by a large banking system (deposits of tive than the present proposal. The proposed affil­ $9.8 billion) to acquire a strong independent bank, iation could serve to stimulate competition since the fourth largest in its market area. FNB operates consummation would remove home office protec­ in a rapidly developing area in Suffolk County, tion afforded by State law to Bay Shore. Two approximately 55 miles east of New York City, applications are pending to establish new branches and serves the local area through its seven offices, in Bay Shore at the present time subject to ap­ all located in Suffolk County. FNB was established proval of this application. It appears that con­ as a national bank in 1911, and its earnings in summation of the proposed acquisition would not recent years have been well above the average for adversely affect any competing bank nor act as other area banks of comparable size. It has recently a deterrent to entry into the area by other banking received approval to establish two additional institutions. Competitive considerations are con­ branches in Suffolk County. Prospects for the sistent with approval of the application. continued expansion and growth of FNB appear Considerations relating to the financial condition assured—even without affiliation with Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 735 We are gravely concerned in this case, not so Notice of the application, affording opportunity much by removal of existing competition, but by for interested persons to submit comments and the restriction of future competition which would views, has been given in accordance with § 3(b) result from consummation of this proposal. Appli­ of the Act. The time for filing comments and views cant is one of the most likely entrants into the has expired, and none has been timely received. area, and, with enormous resources, is capable of The Board has considered the application in light entering Suffolk County de novo. Additionally, the of the factors set forth in § 3(c) of the Act (12 establishment of a new bank would have procom­ U.S.C. 1842(c)). petitive effects on banking in the area. We are Applicant is the fifth largest banking organi­ also convinced that FNB is capable of operating zation in Missouri, controlling eight subsidiary successfully in the area, either as an independent banks which have aggregate deposits of $553.9 bank or as an affiliate with a smaller banking million, representing 4.4 per cent of total deposits system. Either of these alternatives is more de­ in commercial banks in the State. (All banking sirable than its capture (as here) by a multi-billion data are as of December 31, 1971, and are adjusted dollar banking organization. to reflect holding company acquisitions and All of the major banking needs of the area are formations approved by the Board to date.) Ac­ apparently satisfied by services presently available quisition of Bank by Applicant will increase its at existing institutions. Applicant proposes to en­ share of Statewide depoists by . 1 percentage points able FNB to offer a fairly full range of banking and will not increase its ranking among the State’s services, to include new services in lease financing largest banking organizations. and international banking. However, there appears Bank controls deposits of $15 million and is to be no present need for these new services in located about 60 miles south of Kansas City, the area. Under the circumstances presented here, Missouri. It is the largest bank in the market we can find no need or public benefit that would controlling 43.6 per cent of the deposits in Bates emanate from consummation of the proposed ac­ County. There are nine other banks competing in quisition to outweigh the adverse effect that con­ the market, with the next largest controlling ap­ summation of the proposal would have on com­ proximately 24.5 per cent of market deposits. petition in the related communities. There is no existing competition between Bank and In weighing the options open to Applicant for any of Applicant’s existing subsidiary banks, the entry into Suffolk County, and at the same time nearest of which is located 40 miles from Bank. cognizant of the projected growth and expanding The area is not attractive for de novo entry and economy of this area, we are convinced that the the smaller banks in the area would not appear public interest would be served by the Board’s to be likely entry vehicles due to their locations denial of this application. and limited growth prospects. The other alterna­ tive, Bank’s major competitor, has correspondent FIRST NATIONAL CHARTER CORPORA­ relationships with a large Kansas City bank. Con­ TION, summation of the proposal would eliminate no KANSAS CITY, MISSOURI present competition nor would it foreclose any significant possibility of competition developing in Order Approving Acquisition of Bank the future due to an alternative entry into the First National Charter Corporation, Kansas market by Applicant. City, Missouri, a bank holding company within Consummation of the proposed transaction will the meaning of the Bank Holding Company Act, have the effect of strengthening Bank’s position has applied for the Board’s approval under § in the market, however, the Board does not believe 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ that it will give Bank a dominant position. Further, quire 100 per cent of the voting shares (less any adverse effects of the affiliation on competing directors’ qualifying shares) of the successor by banks in the market are outweighed in the public merger to Butler State Bank, Butler, Missouri interest by the considerations relating to the finan­ (“Bank”). The bank into which Bank is to be cial and managerial resources and prospects of merged has no significance except as a means of Bank and the convenience and needs of the com­ acquiring all of the shares of Bank. Accordingly, munities to be served. the proposed acquisition of the shares of the suc­ Bank is presently in need of capital and approval cessor organization is treated herein as the of the application will result in Applicant’s imme­ proposed acquisition of shares of Bank. diate addition of $400,000 to Bank’s capital ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN □ AUGUST 1972 counts. Bank is also in need of strong executive by retaining the assets of the Cody Insurance management, which Applicant will furnish upon Agency, Cody, Nebraska (“Agency”). consummation of the proposal. Bank’s prospects Notice of receipt of the applications has been will be substantially improved by Applicant’s given in accordance with sections 3 and 4 of the proposed changes in Bank’s operations and con­ Act, and the time for filing comments and views siderations relating to the financial and managerial has expired. The Board has considered the ap­ resources and prospects of Bank lend strong plications and all comments received in the light weight toward approval of the application. of the factors set forth in section 3(c) of the Act There is no evidence on the record that signifi­ (12 U.S.C. 1842(c)), and the considerations cant banking needs of the communities involved specified in section 4(c)(8) of the Act (12 U.S.C. are going unserved. However, affiliation of Bank 1843(c)(8)) and finds that: with Applicant will enable larger loans and spe­ Applicant’s sole business activity is operating cialized banking services to be provided as the Agency. Bank is the only bank in a community demand for them increases. These considerations of less than 250 people. Bank has deposits of $2.2 provide some weight for approval of the applica­ million and is the fourth largest of five banks in tion. the Cherry County banking market, controlling On the basis of the record, the application is approximately 9 per cent of deposits in commercial approved for the reasons summarized above. The banks in that market.1 Since the transaction in­ transaction shall not be consummated (a) before volves only a change from individual to corporate the thirtieth calendar day following the effective ownership, consummation of the proposal will date of this Order or (b) later than three months have no adverse effects on existing or potential after the effective date of this Order, unless such competition. period is extended for good cause by the Board, The financial and managerial resources and fu­ or by the Federal Reserve Bank of Kansas City ture prospects of Applicant and its existing subsid­ pursuant to delegated authority. iary are consistent with approval. Although By order of the Board of Governors, effective Applicant will incur considerable debt in acquiring July 27, 1972. Bank, its income from Bank and Agency will provide sufficient revenue to adequately service the Voting for this action: Vice Chairman Robertson and Gov­ debt. In addition, Applicant’s acquisition of Bank ernors Mitchell, Brimmer, and Sheehan. Absent and not vot­ will assure continued operation of the only bank ing: Chairman Burns and Governors Daane, and Bucher. in Cody. Accordingly, considerations relating to (Signed) Tynan Smith, the convenience and needs of the community to [seal] Secretary of the Board. be served, with respect to the acquisition of Bank, lend weight toward approval. It is the Board’s judgment that consummation of the transaction ORDERS UNDER SECTIONS 3 AND 4 OF would be in the public interest and that the ap­ BANK HOLDING COMPANY ACT plication to acquire Bank should be approved. CODY AGENCY, INC., Agency is the only insurance agency in the town LINCOLN, NEBRASKA of Cody and primarily sells casualty insurance. Acting as a general insurance agent or broker in Order Approving Formation of Bank Holding a community of less than 5,000 people is an Company and Retention of Cody Insurance activity that the Board has previously determined Agency by regulation to be closely related to banking (12 Cody Agency, Inc., Lincoln, Nebraska, has CFR 225.4(a) (9)). There is no evidence in the record indicating applied for the Board’s approval under § 3(a)(1) that consummation of the proposal would result of the Bank Holding Company Act (12 U.S.C. in any undue concentration of resources, unfair 1842(a)(1)) of formation of a bank holding com­ competition, conflicts of interests, unsound bank­ pany through acquisition of 100 per cent of the ing practices, or other adverse effects on the public voting shares (less directors’ qualifying shares) of interest. It appears that the operation of Agency Bank of Cody, Cody, Nebraska (“Bank”). in conjunction with Bank will ensure the continu­ At the same time Applicant has applied for the ation of both banking and insurance agency ser­ Board’s approval under § 4(c)(8) of the Act and vices in Cody. Based upon the foregoing and other § 225.4(b)(2) of the Board’s Regulation Y to continue to engage in insurance agency activities 1 All banking data are as of December 31, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 737 considerations reflected in the record, the Board Board to be closely related to banking or control­ has determined that the balance of the public ling or managing banks (12 CFR 225.4(a)(1)). interest factors the Board is required to consider Notice of the applications, affording opportunity regarding the retention of Agency under § 4(c) for interested persons to submit comments and (8) is favorable and that the application should be views, has been given in accordance with §§ 3(b) approved. and 4(c)(8) of the Act. The time for filing com­ On the basis of the record, the applications to ments and views has expired, and the Board has acquire Bank and to continue to engage in insur­ considered the applications and all comments re­ ance agency activities are approved for the reasons ceived in light of the factors set forth in §§ 3(c) summarized above. The acquisition of Bank shall and 4(c)(8) of the Act (12 U.S.C. 1842(c) and not be consummated (a) before the thirtieth calen­ 1843(c)(8)). dar day following the effective date of this Order Applicant is a nonoperating corporation formed or (b) later than three months after the effective for the purpose of acquiring Bank. Upon acquisi­ date of this Order, unless such period is extended tion of Bank ($3.7 million in deposits as of De­ for good cause by the Board, or by the Federal cember 31, 1971), Applicant would not control Reserve Bank of Kansas City pursuant to delegated a significant portion of the total deposits in com­ authority. The determination as to Agency’s ac­ mercial banks in Kansas. As the proposed trans­ tivities is subject to the Board’s authority to require action represents a restructuring of the ownership reports by, and make examinations of, holding of Bank and Credit, consummation would not companies and their subsidiaries and to require eliminate any existing or potential banking com­ such modification or termination of the activities petition and would not result in any increase in of a holding company or any of its subsidiaries the concentration of commercial banking resources as the Board finds necessary to assure compliance in any relevant area. Bank’s financial and mana­ with the provisions and purposes of the Act and gerial resources and future prospects are consistent the Board’s regulations and orders issued with approval, as are those of Applicant, depen­ thereunder, or to prevent evasion thereof. dent as they will be upon those of Bank. Applicant By order of the Board of Governors, effective is planning no new services for Bank. Approval July 5, 1972. of the proposed transaction, therefore, would have no effect on convenience and needs in the Winona Voting for this action: Vice Chairman Robertson and Gov­ ernors Daane, Brimmer, Sheehan, and Bucher. Absent and banking market. Applicant has made an equal not voting: Chairman Burns and Governor Mitchell. exchange offer to all shareholders of Bank. (Signed) M ichael A. Greenspan, Credit, with it sole office located on the prem­ [seal] Assistant Secretary of the Board. ises of Bank, engages in the making of agricul­ tural loans to local farmers and ranchers and re­ WESTERN KANSAS INVESTMENT CORPO­ discounting the majority of such loans with the RATION, INC., WINONA, KANSAS Federal Intermediate Credit Bank. As of January 31, 1972, Credit had loans outstanding of approx­ Order Approving Formation of Bank H old­ imately $400,000. Credit was established de novo ing Company and Request for Determ ination by Bank in 1967. Subsequently, the shares of under Section 4(c)(8) Credit were distributed on a pro rata basis to the Western Kansas Investment Corporation, Inc., shareholders of Bank. The shares of Credit are Winona, Kansas, has applied for the Board’s ap­ still held by all shareholders of Bank in amounts proval under § 3(a)(1) of the Bank Holding Com­ equivalent to each shareholder’s holding of shares pany Act (12 U.S.C. 1842(a)(1) to become a bank of Bank. The formation of Credit, and its affilia­ holding company through the acquisition of 100 tion with Bank, has enabled each institution to per cent of the voting shares of Farmers State accommodate a larger number of farmers and Bank, Winona, Kansas (“Bank”). ranchers in the area than could be served by Bank Applicant has also applied for the Board’s ap­ alone. The Board concludes that continuation of proval under § 4(c)(8) of the Act and § 225.4(b)(2) this affiliation would be in the public interest. of the Board’s Regulation Y to engage, through On the basis of the foregoing and other facts the acquisition of 100 per cent of the shares of reflected in the record, the Board has determined Western Kansas Credit Corporation, Winona, that the considerations affecting the factors enu­ Kansas (“Credit”), in the activity of agricultural merated in section 3(c) of the Act and the balance lending. Such activity has been determined by the of the public interest factors the Board must con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN □ AUGUST 1972 sider under section 4(c)(8) in permitting a holding gave notice of receipt of the application to acquire company to engage in an activity on the basis that voting shares of Bank to the Comptroller of the it is closely related to banking both favor approval Currency. The Comptroller has not commented to of the Applicant’s proposal. the Board on the application. Accordingly, the applications are approved for Notice of the applications, affording opportunity the reasons summarized above. The Board’s de­ for interested persons to submit comments and termination in connection with the application to views on the public interest factors, has been duly acquire Credit is subject to the conditions set forth published (37 Federal Register 10620). The time in section 225.4(c) of Regulation Y and to the for filing comments and views has expired and Board’s authority to require such modification or none have been received. termination of the activities of a holding company Applicant is an industrial loan company operat­ or any of its subsidiaries as the Board finds neces­ ing in the manner authorized by Oklahoma law sary to assure compliance with the provisions and and does not accept demand deposits. As such, purposes of the Act and the Board’s regulations it engages in the business of making personal loans and orders issued thereunder, or to prevent evasion secured, from time to time, by first and second thereof. The acquisition of Bank shall not be mortgages on real estate or by durable consumer consummated (a) before the thirtieth calendar day goods, and sells credit life, credit health, and following the effective date of this Order or (b) credit accident insurance to its borrowers. Such later than three months after the effective date of activities have been determined by the Board to this Order, unless such period is extended for good be closely related to banking or managing or cause by the Board, or by the Federal Reserve controlling banks (12 CFR 225.4(a)(2) and Bank of Kansas City pursuant to delegated au­ (9)(ii)(a)). thority. Applicant is an industrial loan company, with By order of the Board of Governors, effective total assets of $3.1 million, operating out of one July 20, 1972. office in Tulsa. Bank, with total deposits of $19.2 Voting for this action: Chairman Burns and Governors million, holds .3 per cent of total deposits in Robertson, Brimmer, Sheehan, and Bucher. Absent and not commercial banks in Oklahoma and is the thir­ voting: Governors Mitchell and Daane. teenth largest of the 19 banks located in Tulsa and (Signed) Tynan Smith, the 29 banks located in Tulsa County. The [seal] Secretary of the Board. proposed transaction would have no significant adverse effect on existing competition in the mar­ GUARANTY LOAN AND INVESTMENT ket for lendable funds. Whereas Bank offers the CORPORATION OF TULSA, INC. usual range of deposit services offered by com­ TULSA, OKLAHOMA mercial banks, Applicant offers “thrift certifi­ cates” which, though similar to certificates of Order Approving Acquisition of Bank and deposit, represent a higher risk due to their unin­ Continuation of the Activities of an Indus­ sured character and a possible limitation on repay­ trial Loan Company and the Sale of ment to 50 per cent of the Applicant’s net receipts Credit-related Insurance for the previous month, than do the deposits re­ Guaranty Loan and Investment Corporation of ceived by Bank. This is reflected in higher interest Tulsa, Inc., Tulsa, Oklahoma, has applied for the rates paid by Applicant on such funds than are Board’s approval under sections 3(a)(1) and paid by Bank. Barriers to entry into the banking 4(c)(8) of the Bank Holding Company Act (12 business and legal requirements that Bank, as a U.S.C. 1842(a)(1) and 1843(c)(8)) to acquire 50 national bank, maintain the insured character of per cent of the voting shares of Republic National its deposits and comply with limitations upon the Bank of Tulsa (“Bank”), Tulsa, Oklahoma, and payment of interest on deposits established by the to continue to engage in the operation of an indus­ Board’s Regulation Q (12 CFR 217) suggest that trial loan company and the sale of credit-related future significant development of competition be­ insurance, including succession to such insurance tween Applicant and Bank in the market for such sales activity on the premises of Bank, both insur­ lendable funds is unlikely. Seventy per cent of ance agency activities to be carried on by Guaranty Applicant’s loan portfolio is secured by second Agency, Inc., a wholly-owned subsidiary of mortgages on real estate. Bank is generally pro­ Applicant to be formed. hibited by section 24 of the Federal Reserve Act Pursuant to section 3(b) of the Act, the Board (12 U.S.C. 371) from making loans in primary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 739 reliance on a second mortgage on real estate as nation is subject to the conditions set forth in security. However, a slight amount of competition section 225.4(c) of Regulation Y and to the may exist between Applicant and Bank in the Board’s authority to require such modification or making of some consumer loans. The five-mile termination of the activities of a holding company distance between offices of Applicant and Bank or any of its subsidiaries as the Board finds neces­ and the relatively small size of the consumer loan sary to assure compliance with the provisions and portfolios of Applicant and Bank lessen the slight purposes of the Act and the Board’s regulations adverse effect that consummation of the proposed and orders issued thereunder, or to prevent evasion transaction would have on competition in the Tulsa thereof. The transaction shall not be consummated consumer loan market. Further, since neither (a) before the thirtieth calendar day following the Applicant nor Bank solicit credit-related insurance effective date of this Order or (b) later than three sales from persons other than their borrowers, no months after the effective date of this Order, unless competition would appear to exist between Appli­ such period is extended for good cause by the cant and Bank in the market for sale of credit- Board or by the Federal Reserve Bank of Kansas related insurance and consummation would there­ City pursuant to delegated authority. fore not foreclose any existing competition in that By order of the Board of Governors, effective market. July 28, 1972. Considerations relating to the financial and Voting for this action: Chairman Burns and Governors managerial resources and future prospects of both Mitchell and Brimmer. Voting against this action: Governors Robertson and Sheehan. Absent and not voting: Governors Applicant and Bank appear satisfactory and con­ Daane and Bucher. sistent with approval of the applications. Al­ (Signed) Tynan Smith, though, upon consummation of the proposed [seal] Secretary of the Board, transaction, Applicant will assume a relatively substantial amount of debt, its past earnings record Dissenting Statement of Governors and growth suggest that Applicant will be able to Robertson and Sheehan service that debt. We assume that this will be done Section 3(c) of the Act provides that without the payment of an unreasonable amount In every case, the Board shall take into of dividends or management fees by Bank. Fur­ consideration the financial and managerial thermore, Applicant will make a pro rata offer resources and future prospects of the com­ to all shareholders of Bank permitting minority pany or companies and the banks con­ shareholders to participate in the proposed trans­ cerned. . . . action in an equitable manner. In compliance therewith, this Board has looked Applicant has stated its intention to increase askance at the assumption by a bank holding consumer services offered by Bank. Consid­ company of excessive debt, particularly when the erations relating to convenience and needs of the debt is incurred to enable the holding company communities to be served, as well as public bene­ to acquire a subsidiary (see Order Denying fits that may be expected to derive from the Formation of Bank Holding Company by Firstproposed affiliation, therefore lend weight toward brook Corporation, Chicago, Illinois, 58 Federal approval. The slight possible adverse effect on Reserve B ulletin 162 (February, 1972)). How­ competition in the market for consumer lending ever, where the Board has reviewed convincing is outweighed by this expected benefit to the pub­ evidence that a bank holding company will be able lic. Other possible adverse effects, such as undue to service its debt without adversely affecting the concentration of resources, unfair competition, condition of its banks, the Board has not consid­ conflicts of interests, or unsound banking practices ered the acquisition debt to be such as to require do not appear to be presented by the proposed denial of the application (see, for example, Order transaction. Approving Formation of Bank Holding Company Based upon the foregoing and other consid­ by American Bancorporation, Inc., Kansas City, erations reflected in the record, the Board has Missouri, 57 Federal Reserve B ulletin 847 determined that the balance of the public interest (October, 1971)). factors the Board is required to consider under In view of the serious interest of this Board in section 4(c)(8) is favorable. It is the Board’s the financial resources and future prospects of bank judgment that consummation of the proposal holding companies and their subsidiaries, we do would be in the public interest. Accordingly, the not believe that a consclusion regarding a holding applications are hereby approved. This determi­ company’s ability to service debt should be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN □ AUGUST 1972 reached unless that ability is clearly demonstrated Notice of the application, affording opportunity in the record before the Board. for interested persons to submit comments and This is of even greater importance where, as views on the public interest factors, has been duly here, the application represents the initial entry of published (37 Federal Register 10757). The time an applicant into banking since an optimistic esti­ for filing comments and views has expired, and mate of that ability may in effect contribute to the Board has considered all comments received serious future problems for the holding company in the light of the public interest factors set forth before it has even begun its existence as a bank in § 4(c)(8) of the Act (12 U.S.C. 1843(c)). holding company. Applicant, the third largest banking organization In the instant case, Applicant, already in a in South Dakota, controls five banks with aggre­ highly leveraged position, will, as a result of the gate deposits of $48.0 million, representing 3.0 proposed transaction, incur further substantial per cent of the total of commercial bank deposits debt. Based on its past earnings growth and on in the State. (All banking data are as of December the growth of Bank, the majority concludes that 31, 1971 and represent bank holding formations Applicant will be able to service this debt without and acquisitions through June 30, 1972.) unduly straining the resources of Bank. We are The Board approved Applicant’s acquisition of unconvinced given the fact that the majority’s the Bank of Lemmon, Lemmon, South Dakota conclusion is based on Applicant’s operating his­ (deposits of $9.3 million), on April 29, 1970 (1970 tory of only four years and Bank’s operating B ulletin 464). Lemmon Agency shares the history of only eight years. Since there are now quarters of Bank’s main office in Lemmon (1970 four new banks competing in Bank’s service area, population—1,997) and also has an office at the the speculative nature of projections of Bank’s Bank’s branch in Bison (1970 population—406). earnings needs to be especially emphasized. The building housing Bank’s Bison office is the We are not opposed to acquisitions of banks principal asset of Lemmon Agency, accounting for by young organizations, or by industrial loan $176,000 of its $200,000 of total assets. Prior to companies where, as in other cases, there is posi­ the organization of Lemmon Agency in 1965, tive and convincing evidence that they are able Bank engaged directly in the insurance agency to service debts they incur. Our objection is that business. the record in this case contains insufficient evi­ Although Applicant has five insurance agency dence of a positive and convincing nature that subsidiaries, the closest agency to Lemmon Applicant possesses that ability without placing an Agency is 90 miles away. It is unlikely that undue strain on Bank’s earnings. consummation of the proposal would eliminate any We therefore would deny the application. existing competition nor does it appear likely that potential competition would be eliminated. ORDERS UNDER SECTION 4(c)(8) There is no evidence in the record indicating OF BANK HOLDING COMPANY ACT that consummation of the proposal would result in any undue concentration of resources, unfair DACOTAH BANK HOLDING CO., competition, conflicts of interest, or unsound ABERDEEN, SOUTH DAKOTA banking practices. Approval of the application Order Approving Acquisition of Lemmon, would enable Applicant and Bank to continue to Insurance Agency, Inc. provide a convenient source of insurance agency Dacotah Bank Holding Co., Aberdeen, South services in two communities, each with a popula­ Dakota, a bank holding company within the tion of less than 5,000. meaning of the Bank Holding Company Act, has Based upon the* foregoing and other consid­ applied for the Board’s approval, under section erations reflected in the record, the Board has 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s determined that consummation of the proposal Regulation Y, to acquire voting shares of Lemmon herein can reasonably be expected to produce Insurance Agency, Inc., Lemmon, South Dakota benefits to the public that outweigh possible ad­ (“Lemmon Agency”), a company that engages in verse effects. the activities of a general insurance agency in a Accordingly, the application is hereby ap­ community of less than 5,000 persons. Such ac­ proved. This determination is subject to the tivity has been determined by the Board to be conditions set forth in section 225.4(c) of Regula­ closely related to the business of banking (12 CFR tion Y and to the Board’s authority to require such 225.4(a)(9)). modification or termination of the activities of a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 741 holding company or any of its subsidiaries as the to employees and customers of Local and its Board finds necessary to assure compliance with subsidiaries as a matter of convenience to those the provisions and purposes of the Act and the purchasers. Guardian’s premium income from Board’s regulations and orders issued thereunder, these sales to such employees and customers does or to prevent evasion thereof. not constitute a significant portion of its aggregate By order of the Board of Governors, effective insurance premium income. Local operates 63 July 17, 1972. offices, of which 46 are in the northern two-thirds of Indiana and 17 in southern Michigan. None of Voting for this action: Chairman Burns and Governors Robertson, Brimmer, Sheehan, and Bucher. Absent and not these offices are in Marion County where Bank’s voting: Governors Mitchell and Daane. offices are located. With total assets of $36.5 (Signed) Tynan Smith, million, Local ranks 89th among finance compa­ [seal] Secretary of the Board. nies in the nation and accounts for approximately 2.0 per cent of the approximately $1.8 billion of AMERICAN FLETCHER CORPORATION, the outstanding personal loans in Indiana as of December 31, 1970. INDIANAPOLIS, INDIANA The proposed acquisition would have only a Order Approving Acquisition of Local slightly adverse effect on existing competition Finance Corporation since Bank does not maintain offices in any geo­ graphic market served by Local. It is estimated American Fletcher Corporation, Indianapolis, that Bank’s volume of consumer loans and pur­ Indiana, a bank holding company registered under chases of installment sales finance contracts in the the Bank Holding Company Act, as amended, has four counties contiguous to Marion County, in applied for the Board’s approval, under § 4(c)(8) which Local has offices, amounts to approximately of the Act and § 225.4(b)(2) of the Board’s Regu­ $150,000 per year. To this slight extent, existing lation Y, to acquire all of the voting shares of competition would be eliminated by consumma­ Local Finance Corporation, Marion, Indiana tion of the proposed acquisition. (“Local”). Notice of the application affording opportunity for interested persons to submit com­ As the second largest banking organization in ments and views has expired and those received Indiana, Applicant has the capital resources to have been considered. enter markets served by Local and possibly other Applicant’s banking subsidiary, American midwest States de novo, either directly or through Fletcher National Bank (“Bank”), is the second a recently-established subsidiary, American largest bank in Indiana with deposits of $1 billion, Fletcher Finance Corporation. However, Appli­ representing 8.7 per cent of State deposits. (All cant does not appear to be one of the most likely deposit data are as of December 31, 1971, whereas entrants into Local’s markets or these other States, all market share data are as of June 30, 1971.) the most likely entrants being the major existing Bank operates 44 offices, all in Marion County. consumer finance and sales finance companies. Indiana law prohibits a bank from branching out­ Even if, contrary to Applicant’s own statement that side of the county where its head office is located. it has no intention of entering these markets de Local is a consumer finance holding company, novo, Applicant were to be deemed one of the its subsidiaries specializing in making personal most likely entrants into these markets, the un­ loans, normally without collateral, and purchasing concentrated character of those markets coupled installment sales finance contracts. Guardian with the relatively small market shares held by Agency, Inc. (“Guardian”), a wholly-owned Local, forces the conclusion that any adverse ef­ subsidiary of Local engages in the sale, at offices fects of this acquisition upon potential competition of Local, of credit life and credit disability insur­ are slight. Further, there does not appear to be ance coverage to borrowers from Local’s finance any substantial possibility that the acquisition of company subsidiaries under group policies. In Local by Applicant will have any significant ad­ Indiana only, the insurance sales activities of verse effects on credit presently made available Guardian include the sale of casualty insurance on to independent finance companies by Bank. collateral securing credit extended by those subsi­ Access to Applicant’s financial resources would diaries. Further, Guardian sells various forms of permit Local to extend its services to additional casualty, liability, and fidelity insurance to Local geographic markets. In addition, Applicant states and its subsidiaries and, in Indiana only, automo­ that Local will expand its services presently being bile property damage and homeowners insurance offered by initiating the financing of new and used Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN □ AUGUST 1972 automobiles, mobile homes, property improve­ Applicant in entry into northern and central In­ ments, recreational articles and farm equipment as diana consumer finance markets. Therefore, we are well as dealer financing of consumer durables. not persuaded by Applicant’s declaration that it These expanded services would add to the public’s would not enter these markets de novo. convenience, as well as increase competition and, Bank is one of several alternative sources of in the Board’s judgment, outweigh the slightly credit to independent finance companies, and we adverse competitive effects of the acquisition. agree with the majority that consummation of this In its consideration of the application the Board proposal will not have any significant adverse noted that the equity capital of Bank is somewhat effect on credit presently being made available to lower than that of most other banks with similar such independent companies. However, approval deposit liabilities. Applicant is, however, aware of this application would establish a precedent for of the situation and has agreed to contribute an other bank holding company acquisitions of additional $15 million in equity capital to the Bank independent finance companies in Applicant’s in the near future. The Board assumes that this market area with cumulative adverse effects on improved capital level will be maintained. existing competition, virtually devoid of public Based on the foregoing and other considerations benefits as in the case of this acquisition. Although reflected in the record, the Board hereby approves the possibility of credit foreclosure exists if bank the application. This determination is subject to holding companies entered consumer finance mar­ the conditions set forth in section 225.4(c) of kets de novo, such entry would at least present Regulation Y and to the Board’s authority to the compensating features of increased competi­ require such modification or termination of the tion and public convenience deriving from the activities of a holding company or any of its resultant increase in the number of competitors in subsidiaries as the Board finds necessary to assure those markets. Accordingly, we do not favor ap­ compliance with the provisions and purposes of proval of the acquisition of an existing finance the Act and the Board’s regulations and orders company by a bank holding company which is one issued thereunder, or to prevent evasions thereof. of the most likely entrants into the market. By order of the Board of Governors, effective In our opinion, there are virtually no public July 20, 1972. benefits presented by this application. Rather, it appears that Applicant would be the sole benefi­ Voting for this action: Governors Mitchell, Daane, Sheehan, and Bucher. Voting against this action: Vice Chairman Ro­ ciary of the acquisition. bertson and Governor Brimmer. Absent and not voting: Chair­ Given the adverse effect on potential competi­ man Burns. tion and concentration of resources presented here, (Signed) Tynan Smith, accompanied by the virtual absence of any public [seal] Secretary of the Board. benefits, we would deny the application. Dissenting Statement of Governors DETERMINATION UNDER SECTION 2(b) OF BANK HOLDING COMPANY ACT Robertson and Brimmer We would not approve the acquisition of a large WILSHIRE OIL COMPANY OF TEXAS, and well-established finance company by a bank­ NEW YORK, NEW YORK ing organization which is the second largest in its State and is a likely potential de novo entrant into (For the Board’s determination the consumer finance business. The fact that regarding this matter, see page 717 Applicant possesses the economic and managerial of this B ulletin.) resources for de novo entry into markets served by Local is beyond dispute. Equally clear is the ORDGR UNDER SECTION 2(g)(3) presence of a sufficient economic incentive for such entry. As the second largest banking organi­ IOWA BUSINESS INVESTMENT CORP. AND zation in Indiana, Applicant maintains a unique SUPERIOR EQUITY CORP. relationship, through its reputation and contacts, Order Granting Determination Under Bank with various financial and geographic markets in Holding Company Act that State and a presumed desire to sustain its competitive position. Both are shared with few In the matter of the request by Iowa Business others. Further, the mere act of filing this applica­ Investment Corp., Storm Lake, Iowa, and Supe­ tion signifies a certain interest on the part of rior Equity Corp., Lincoln, Nebraska for a deter­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 743 mination pursuant to section 2(g)(3) of the Bank Wednesday June 23, 1971 (36 F.R. 11961). The Holding Company Act of 1956, as amended. time provided for requesting a hearing expired on Iowa Business Investment Corp. (IBIC), Storm July 6, 1971. No such request has been received Lake, Iowa, a bank holding company within the by the Board, nor has any evidence been received meaning of section 2(a) of the Bank Holding to show that the transferors, Superior/IBIC, will, Company Act of 1956 (12 U.S.C. 1841(a)) on the in fact, be capable of controlling the affairs of basis of its ownership of 52.6 per cent of the voting Sibley State Bank. shares of Sibley State Bank, Sibley, Iowa, and It is hereby determined that neither the Iowa Superior Equity Corp. (Superior), Lincoln, Ne­ Business Investment Corp. nor its successor in braska, its proposed successor in interest through interest by merger, Superior Equity Corp., will merger, seek a determination pursuant to section be capable of controlling the aforementioned Sib­ 2(g)(3) of the Bank Holding Company Act of ley State Bank stock transferees. This determi­ 1956, as amended, that they will not be capable nation is based upon the evidence of record in this of controlling the transferees of shares of the matter, including (1) a copy of an executed pur­ aforementioned bank. chase offer and acceptance dated April 6, 1971, Superior/IBIC seeks to terminate its present and addendum thereto dated June 7, 1971, agreed status as a bank holding company by selling and upon by Superior Investment Corp., as successor transferring all of IBIC’s present interest in Sibley in interest; Iowa Business Investment Corp., State Bank to Bruce R. Lauritzen, Darrell D. seller; and Bruce R. Lauritzen, Darrell D. Green, Green, and Joseph T. Latoza, all of Omaha, Ne­ and Joseph J. Latoza, purchasers; (2) affidavits braska prior to the consummation of the proposed of a majority of the directors of IBIC and Superior merger. affirming that no direct or indirect ownership or Under the provisions of section 2(g)(3) of the control will be retained over Sibley State Bank Act (12 U.S.C. 1841(g)(3)), shares transferred by the respective corporations after the transfer; after January 1, 1966, by any bank holding com­ (3) affidavits submitted by each of the prospective pany to a transferee that is indebted to the trans­ purchasers stating that he is not a director, officer, feror are deemed to be indirectly owned or con­ employee, stockholder, or debtor (other than with trolled by the transferor unless the Board of Gov­ respect to the instant transaction) of Superior or ernors of the Federal Reserve System, after op­ IBIC, their subsidiaries, or affiliates; and (4) in­ portunity for hearing, determines that the trans­ formation showing that transferees have obtained feror is not in fact capable of controlling the financing arrangements from a bank having no transferee. affiliation or similar relationship with the trans­ The terms of the purchase agreement entered ferors which will cover all obligations of the into between Superior/IBIC and the proposed pur­ transferees to the transferors under the aforesaid chasers provide for payment on an installment purchase contract. basis. Because the transferees will become and Accordingly, it is ordered, That the request of remain debtors of the transferors until final pay­ Iowa Business Investment Corp. and its proposed ment is made, Superior/IBIC is presumed to con­ successor in interest, Superior Equity Corp., for tinue to control the shares transferred, unless the a determination pursuant to section 2(g)(3) be and Board, after opportunity for hearing, makes a hereby is granted. determination of the kind described in section By order of the Board of Governors, acting 2(g)(3). Superior/IBIC has requested such a deter­ through its General Counsel pursuant to delegated mination and has submitted to the Board docu­ authority (12 CFR 265.2) August 26, 1971.1 mentary evidence to support the contention that Tynan Smith, the transferees not be subject to the control of the [seal] Secretary. transferors. Notice of opportunity for hearing with respect to the Request for a Determination under section *This order was inadvertently not published in the 1971 2(g)(3) was published in the Federal Register on Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGE IN BOARD STAFF next Congress will have occasion to thoroughly The Board of Governors of the Federal Reserve consider bank and savings and loan association System has announced the appointment of Edward relationships. K. O’Connor as Assistant Director in the Division This action does not affect previous Board de­ of Data Processing, effective August 8, 1972. Mr. cisions permitting affiliations of thrift institutions O’Connor, who joined the Board’s staff in April and commercial banks in Rhode Island. 1971, received a bachelor’s degree in mathematics from Boston University in 1956. TRANSFER OF FEDERAL RESERVE BRANCH TERRITORY BANK HOLDING COMPANY ACTIVITIES Effective July 20, 1972, the territory of the Louis­ The Board of Governors announced on August 3, ville Branch of the Federal Reserve Bank of St. 1972, that it had decided not to include at the Louis was extended to include the towns of Hol­ present time operation of savings and loan associ­ land and Loogootee, Indiana. These towns were ations on its list of activities in which bank holding previously in the territory served by the head companies may engage. office at St. Louis. The Board had previously indicated that opera­ tion of a savings and loan association was not NEW PUBLICATION within the scope of activities heretofore authorized The third and final volume on the Reappraisal of to be conducted by a bank holding company under the Federal Reserve Discount Mechanism is section 4(c)(8) of the Bank Holding Company Act, available for distribution. Volume 3 consists of and that it was then considering whether to expand the following: “The Secondary Market for State its list of activities to include such activity. and Local Government Bonds” by William F. The Board noted that Congress has created a Staats; “The Secondary Market for Negotiable statutory framework for savings and loan associa­ Certificates of Deposit” and “A Study of the tions that is separate from the statutes governing Market for Federal Funds” by Parker B. Willis; commercial banks. Under these statutes, different “Financial Instability Revisited: The Economics rules have been established for the two kinds of of Disaster” by Hyman P. Minsky; “Discount institutions on such matters as branching, taxation, Policy and Bank Supervision” by Benjamin and ceilings on rates paid to attract savings. A Stackhouse; “Discount Policy and Open Market statute has also been enacted governing savings Operations” by Paul Meek; “The Redesigned and loan holding companies, separate and distinct Discount Mechanism and the Money Market” by from the Bank Holding Company Act. This statu­ Robert C. Holland and George Garvy; and “Re­ tory pattern suggests past intent on the part of the serve Adjustments of the Eight Major New York Congress to maintain savings and loan associations City Banks During 1966” by Dolores P. Lynn. as specialized lenders to finance housing, with Copies may be obtained from Publications Ser­ specialized rules appropriate to that role. Acquisi­ vices, Division of Administrative Services, Board tion of savings and loan associations by bank of Governors of the Federal Reserve System, holding companies could tend to blur this con- Washington, D.C. 20551. The price is $3.00 per gressionally established structure. copy; in quantities of 10 or more sent to one Proposals for affiliation of banks and savings address, $2.50 each. and loan associations in a holding company system involve broad questions of public policy that, in ADMISSION OF STATE BANK TO the Board’s opinion, should not be decided until MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM the Congress has had an opportunity to consider The following bank was admitted to membership the matter. Suggestions for changes in rules gov­ in the Federal Reserve System during the period erning specialized thrift institutions have been July 16, 1972, through August 15, 1972. made by the President’s Commission on Financial Structure and Regulation (the “Hunt Commis­ Florida sion”), as well as others. It is expected that the Holiday .........................................Bank of Holiday Digitized for FRASER 744 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication August 15 Industrial production rose moderately further in EMPLOYMENT July while nonfarm employment declined some­ Nonfarm payroll employment declined somewhat what and the unemployment rate was unchanged. in July. Employment advanced in services and Retail sales increased and the wholesale price State and local government but dropped in manu­ index rose further. Commercial bank credit, the facturing and in construction where there was an money stock, and time and savings deposits in­ increase in strike activity. Average weekly hours creased. Between mid-July and mid-August, of factory production workers were unchanged. yields on Treasury bills and municipal securities The unemployment rate remained at 5.5 per cent declined and yields on seasoned corporate securi­ after declining sharply in the previous month, as ties were about unchanged. both total employment and the civilian labor force showed little change. INDUSTRIAL PRODUCTION Industrial production rose 0.3 per cent in July and RETAIL SALES 0.1 per cent in June. The output gains in July and The value of retail sales rose 2 per cent in July June reflected in part the effects of the flooding and was 11 per cent above a year earlier, according caused by hurricane Agnes. The level of the total to the advance report. Sales at durable goods stores index has been revised upward from March on by rose sharply, reflecting in part a very high rate an average of 0.5 per cent. At 113.6 per cent in of sales of new domestic-type autos. Sales at July (1967=100) the total index was 6 per cent nondurable goods stores were also higher. above a year earlier and 1:5 per cent above the pre-recession peak in 1969. AGRICULTURE Output of consumer goods was unchanged in The Department of Agriculture August crop report July. Auto assemblies were maintained at the June indicates a decline this year in the “all crops” rate of 8.5 million units. A further rise in produc­ production index. Among the major crops, corn tion of carpeting and furniture was about offset output is forecast to decline 11 per cent from last by a decline in household appliances. Output of year. Soybean production is expected to reach a consumer nondurable goods continued at the June new high, 9 per cent above 1971, and cotton level. Production of business equipment changed production is indicated to be up 27 per cent. little in July and output of defense equipment rose Average yields per acre are down somewhat this further. Output of construction products, iron and year. steel, and the market grouping for textile, paper, and chemical materials increased. WHOLESALE AND CONSUMER PRICES INDUSTRIAL PRODUCTION RATIO SCALE, 1967 The wholesale price index, seasonally adjusted, rose 0.7 per cent between June and July. Farm 120 and food products increased 1.8 per cent as large price increases were posted for fresh fruits and vegetables, livestock, grains, dairy products, and manufactured animal feeds. Increases in prices of industrial commodities slowed to 0.2 per cent with 120 advances for fuels and power, textile products, 100 apparel, machinery and equipment, and lumber and plywood. The consumer price index, seasonally adjusted, rose 0.1 per cent in June. Food prices were up 0.2 per cent, but those of other commodities were F.R. indexes, seasonally adjusted. Latest figures: July. unchanged as declines for apparel and gasoline 745 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Net borrowed reserves of member banks 1967=100 967 Wholesale Consumer i =ioo averaged about $25 million over the 4 weeks ending July 26 compared with free reserves of $110 million in June. Member bank borrowings increased sharply and excess reserves showed little further change. SECURITY MARKETS Treasury bill rates fell by about 5 to 15 basis points on balance between mid-July and mid-August. The 3-month bill was bid at around 3.85 per cent in the middle of August, down from 3.95 per cent a month earlier. Yields on coupon-bearing Treas­ 1968 1970 1972 1968 1970 1972 ury obligations were some 5 basis points higher Bureau of Labor Statistics. “Farm products and foods” is BLS to 10 basis points lower over the same period. “Farm products, and processed foods and feeds.” Latest Yields on new corporate issues dropped slightly figures: Consumer, June; Wholesale, July. on balance from mid-July to mid-August, while offset advances for most durables. Service costs seasoned corporate rates remained relatively sta­ rose 0.3 per cent. ble. Municipal security rates dropped over the interval. BANK CREDIT, DEPOSITS, AND RESERVES Common stock prices rose steadily on moderate Commercial bank credit, adjusted for transfers of volume. loans between banks and their affiliates, increased at a rate of about 10 per cent in July after showing no change in June. A sharp advance in loans INTEREST RATES PER CENT reflected strong growth in loans to businesses, consumers, nonbank financial institutions, and loans secured by real estate. Holdings of U.S. Government securities declined, reflecting in part the unusually small volume of Treasury financing over the month. Holdings of other securities in­ creased only slightly, continuing the reduced growth evident in the second quarter. The narrowly defined money stock increased at an annual rate of 15.2 per cent in July, following a moderate 5.3 per cent rate of expansion in the second quarter. U.S. Government deposits showed little further change. Inflows of time and savings deposits other than large negotiable CD’s slowed significantly in July—rising at an annual rate of 8.5 per cent compared with 14.8 per cent in June. Discount rate, range or level for all F.R. Banks. Weekly Sales of large negotiable CD’s were slightly larger average market yields for U.S. Govt, bonds maturing in 10 years or more and for 90-day Treasury bills. Latest figures: than in June. week ending August^. 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 □ AUGUST 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: Number of banking offices: A 98 Analysis of changes A 99 On, and not on, Federal Reserve Par List A 101 Banking offices and deposits of banks in holding company groups, December 31,1971 A 110 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a also include not fully guaranteed issues) as well as direct negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” also A heavy vertical rule is used in the following in­ includes municipalities, special districts, and other politi­ stances: (1) to the right (to the left) of a total when the cal subdivisions. components shown to the right (left) of it add to that In some of the tables details do not add to totals because total (totals separated by ordinary rules include more of rounding. components than those shown), (2) to the right (to the The footnotes labeled Note (which always appear left) of items that are not part of a balance sheet, (3) to the last) provide (1) the source or sources of data that do left of memorandum items. not originate in the System; (2) notice when figures are “U.S. Govt, securities” may include guaranteed estimates; and (3) information on other characteristics issues of U.S. Govt, agencies (the flow of funds figures of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds..................................... 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 ... Aug. 1972 A-98 1960-71 ................ June 1972 A-73.10—A-73.21 On, and not on, Federal Reserve Par List, number...................... Aug. 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. 31,1971........ Aug. 1972 A-101 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 □ AUGUST 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 u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ assets 3 account stand­ Total out­ chase ing right agree­ ment Averages of daily figures 1939—Dec........................... 2,510 2,510 8 83 2,612 17,518 2,956 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 I960—Dec........................... 27^,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—Dec........................... 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1967—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—Jul y 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......................... 71,632 71,624 8 94 3,370 933 76,108 10,410 400 8,043 July2*........................ 72,089 70,992 1,097 203 3,558 1,111 77,046 10,410 400 8,080 Week ending— 1972—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.................... 71,325 71,325 59 3,704 941 76,101 10,410 400 8,055 28................... 71,658 71,648 10 129 3,497 1,002 76,367 10,410 400 8,057 July 5................... 72,487 72,431 56 312 3,053 1,010 76,939 10,410 400 8,056 12................... 71,785 71,688 97 227 3,767 1,061 76,923 10,410 400 8,077 19^............ 72,353 71,988 365 175 3,931 1,115 77,700 10,410 400 8,082 26*>................. 71,909 71,909 171 3,716 1,156 77,017 10,410 400 8,089 End oi month 1972—May......................... 72,611 6 71,471 1,140 1,594 2,846 845 78,039 10,410 400 8,020 June......................... 72,462 6 72,462 130 3,299 990 76,954 10,410 400 8,066 July25......................... 71,901 6 10,822 1,079 83 2,107 1,268 75,422 10,410 400 8,101 Wednesday 1972—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 « 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 6 71,471 1,140 1,594 2,846 845 78,039 10,410 400 8,020 June 7................... 71,888 6 71,728 160 135 3,125 893 76,171 10,410 400 8,028 14................... 71,728 6 71,728 66 3,440 940 76,247 10,410 400 8,037 21................... 71,298 6 71,298 181 3,950 1,012 76,507 10,410 400 8,057 28................... 72,094 6 72,022 72 474 3,488 1,042 77,246 10,410 400 8,057 July 5?............... 72,969 6 72,582 387 514 3,109 1,062 77,769 10,410 400 8,056 12*............... 69,515 6-769,515 85 3,835 1,107 74,608 10,410 400 8,081 19?........... 72,443 6 72,039 404 81 4,031 1,155 77,820 10,410 400 8,087 26?........... 71,959 6 71,959 637 3,553 1,168 77,381 10,410 400 8,093 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 il 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 ­ Other2 counts3 ca a p n it d al3 B W F a . n R it k h . s c r C e a o n n u in c d r y s ­ Total Averages of daily figures 7,609 2,402 616 7-\9 248 11,473 11,473 .......................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .......................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .......................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .......................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .......................1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 .......................1965—Dec. 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, i 92 23,071 4,960 28.031 .......................1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 .....................1970—Dec. 58,847 471 1,546 161 714 2,251 25,231 5,316 30,547 .......................1971—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 27,002 5,537 32,539 .................................June 62,669 342 2,398 209 617 2,329 27,372 5,660 33.032 ..................................July* Week ending— 60,668 403 2,090 191 603 2,356 27,259 5,581 32,840 ...............1972—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 2,178 323 588 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 27,240 5,356 32,596 .....................................21 61,871 354 3,173 154 571 2,330 26,780 5,521 32,301 .....................................28 62,384 362 2,166 252 722 2,372 27,548 5.595 33,143 ..........................July 5 63,005 352 2,427 176 599 2,364 26,889 5,858 32,747 .....................................12 62,829 330 2,388 199 621 2,264 27,963 5,370 33,333 .....................................19* 62,530 335 2,533 271 584 2,303 27,360 5,704 33,064 .....................................26* End of month 61,702 358 2,144 157 584 2,388 29,538 5,513 35,051 ......................1972—May 62,201 351 2,344 257 836 2,359 27,482 5,594 33,076 .................................June 62,442 339 2,298 160 620 2,406 26,068 5,795 31,863 ...................................July3* Wednesday 60,936 405 2,687 136 560 2,387 27,273 5,571 32,844 ...............1972—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 27,155 5.593 32,748 ...........................June 7 62,123 357 2,121 126 533 2,223 27,611 5,655 33,266 .....................................14 62,014 368 2,954 186 554 2,290 27,008 5,357 32,365 .....................................21 62,161 357 2,923 194 585 2,365 27,528 5,524 33.052 ......................................28 62,926 367 1,795 189 575 2,414 28,369 5.594 33,963 ...........................July 5* 63,125 339 2,816 172 561 2,216 24,270 5,863 30,133 .....................................12* 62,795 337 2,426 236 615 2,294 28,014 5,370 33,384 ..........................19* 62,582 349 2,490 156 601 2,328 27,778 5,704 33,482 ..........................26* 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 □ AUGUST 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 ta d l qu R ir e e ­ d1 Excess 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 ­ d 1 Excess B r F i o a n a . n w g R t k s ­ . s s F er r r v e e e ­ e s T h o e t l a d l qu R ir e e ­ d i Excess B r F i a o n . a n w R 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 3 1960—Dec............ 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 1965—Dec............ 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1.143 1,128 23 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 13 -5 1968—De c 27,221 26,766 455 765 -310 5,157 5.057 100 230 -130 1.199 1,184 85 -70 1969—De c 28.031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1 ,285 1,267 27 -9 1970—De c 29,265 28,993 272 321 -49 5.623 5,589 34 25 9 1,329 1,322 4 3 1971—Jul y 30,547 30,385 162 820 -658 5,729 5,754 -25 86 -111 1.407 1.408 28 -29 Aug........... 30,455 30,257 198 804 -606 5,693 5,640 53 164 -111 1.417 1,410 7 . Sept........... 30,802 30,596 206 501 -295 5,683 5,674 9 38 -29 1.417 1,423 4 ‘ -io Oct............ 30,860 30,653 207 360 -153 5,678 5,667 11 67 -56 1.425 1.408 15 2 Nov............ 30,953 30,690 263 407 -144 5,644 5,608 36 107 -71 1.408 1,400 22 -14 Dec............ 31,329 31,164 165 107 58 5.774 5,749 25 35 c-10 1.426 1,425 -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 -37 1,446 1.442 4 4 Mar........... 31,921 31,688 233 99 134 5,815 5,758 -14 1,434 1.443 -9 4 -13 Apr............ 32,565 32,429 136 109 27 5,938 5,940 -50 1,482 1,476 6 5 1 May.......... 32,812 32,708 104 119 -15 6,045 6,031 -36 1,514 1,505 9 12 -3 June.......... 32,539 32,335 204 94 110 5,956 5,922 28 1,488 1,489 -1 -1 July**......... 33.032 32,876 156 203 -47 6,135 6,097 22 1.503 1,501 2 -4 Week ending— 1971—July 7... 30,313 33,036 661 -384 5,689 5,663 26 34 1,388 1,374 14 14 14... 30,254 30,249 991 -986 5,747 5,814 -67 252 -319 1,390 1,412 -22 -22 21. .. 30,932 30,650 282 1,121 -839 5.911 5,856 55 65 -10 1,464 1.451 13 116 -103 28. . . 30,623 30,556 67 545 -478 5,671 5,718 -47 30 -77 1,383 1,384 -1 7 -8 1972—Jan. 5... 32.814 32,502 312 57 255 6,200 6,120 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 1.442 1,436 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 1,513 1.480 33 33 10... 32,757 32,566 191 87 104 6.019 5,978 41 49 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 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, 5,920 -31 -31 1,506 1.491 15 15 21.. 32,596 32,384 212 59 153 6,047 5,975 72 54 1,492 1.497 -5 -5 28.. 32,301 32,177 129 -5 5,793 5,809 -16 -22 1,480 1,476 4 4 July 5.. 33,143 32,815 328 312 16 6,171 6,097 74 32 1 ,532 1.507 25 25 12.. 32,747 32,524 223 227 -4 6,014 5,991 23 23 1,484 1,485 -1 -1 \9*. 33,333 33,164 169 175 -6 6,180 6,210 -30 -30 1.526 1,529 -3 -3 26v. 33,064 32,972 92 171 -79 6,122 6,124 -2 26 -28 1.498 1.489 9 26 -17 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ BANK RESERVES AND RELATED ITEMS A 7 ERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) banks Country banks Reserves Borrow­ Period Free ings at Free eserves F.R. reserves T h o e t l a d l Required1 Excess Banks ,188 1,188 1,568 897 671 3 668 ,303 1,302 2,210 1,406 804 4 800 ...........................1941—Dec. 418 322 4,576 3,566 1,011 46 965 232 182 4,761 4,099 663 29 634 100 80 6,689 6,066 623 40 583 ...........................1960—Dec. 67 -161 8,219 7,889 330 92 238 50 -55 8,901 8,634 267 80 187 ...........................1967—Dec. 90 -180 9,875 9,625 250 180 70 ...........................1968—Dec. 6 -473 10,335 10,158 177 321 -144 42 -222 10,765 10,576 189 28 161 ...........................1970—Dec. 10 -431 11,472 11,294 178 265 -87 .............................1971—July -12 -437 11,474 11,324 150 208 -58 38 -280 11,587 11,422 165 141 24 19 -144 11,688 11,528 160 115 45 65 -112 11,795 11,641 154 101 53 -35 -57 11,931 11,757 174 42 132 13 13 12,342 12,181 161 20 141 ............................1972—Jan. 5 -7 12,123 11,976 147 16 131 .......................................Feb. 26 17 12,113 11,954 159 15 144 16 -6 12,325 12,209 116 34 82 -24 -55 12,379 12,274 105 26 79 7 -33 12,349 12,185 164 48 116 -51 -115 12,553 12,386 167 117 50 Week ending 46 -326 11,389 11,198 191 255 -64 .....................1971—July 7 -90 -588 11,331 11,147 184 241 -57 ...........................................14 61 -546 11,468 11,315 153 333 -180 ...........................................21 -47 -343 11,623 11,461 162 212 -50 ...........................................28 52 52 12,223 12,037 186 57 129 .....................1972—Jan. 5 -29 -29 12,271 12,071 200 17 183 ...........................................12 -18 -18 12,461 12,290 171 14 157 ...........................................19 95 95 12,419 12,256 163 12 151 ...........................................26 -2 -2 12,353 12,171 182 16 166 .................................Feb. 2 10 10 12,143 12,005 138 20 118 ........................................... 9 -34 -35 12,127 11,949 178 17 161 46 46 12,101 11,940 161 14 147 ...........................................23 -28 -85 12,096 11,936 160 10 150 .................................Mar. 1 12 12 11,985 11,828 157 4 153 51 49 12,048 11,886 162 11 151 ...........................................15 -74 -82 12,067 11,994 73 8 65 ...........................................22 42 21 12,215 12,069 146 24 122 ...........................................29 86 86 12,288 12,107 181 55 126 Apr. 5 35 35 12,196 12,039 157 14 143 ...........................................12 -87 -95 12,304 12,177 127 12 115 ...........................................19 38 -48 12,447 12,341 106 46 60 ...........................................26 28 26 12,571 12,431 140 55 85 11 -8 12,437 12,278 159 19 140 -17 -21 12,402 12,227 175 14 161 ...........................................17 34 26 12,312 12,225 87 16 71 ...........................................24 -46 -152 12,399 12,263 136 43 93 ...........................................31 76 56 12,300 12,133 167 38 129 -20 -64 12,250 12,105 145 50 95 ...........................................14 6 -6 12,345 12,206 139 29 110 ...........................................21 3 -64 12,386 12,253 133 56 77 ...........................................28 78 -48 12,516 12,365 151 144 7 ................................July 5 13 -65 12,422 12,234 188 149 39 ...........................................12 41 -23 12,526 12,365 161 111 50 -32 -65 12,626 12,509 117 86 31 ...........................................26? I, an mt is based on close-of-business fig- Total reserves held: Based on figures at close of business through Nov. ious 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. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. they arc not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. tiin the month. Beginning with Jan. or weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ AUGUST 1972 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Gross transactions Net transactions Reporting banks week a e n n d ding— r a o B t B w a F o n in . r k R ­ g s . s F t f i b e r n u N a a d t n n n e e e d r s t r k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e u o v c r i g f v r e . e e n d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c o b P u h a f y a u n n s i r k n e e ­ s s g t s o b S e a f l a n l l n i e k n e s g s t d L ea o t l o a e n r s s3 de f r B i r a o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 1972—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 July 5... . 170 113 4,735 -4,678 34.0 11,315 6,580 3,952 7,363 2,628 1,707 437 1,270 12.... 66 6.405 -6,340 46.5 12.440 6.035 4.018 8.423 2,018 1.721 344 1.377 19... . 65 30 5,583 -5,548 39.5 12,117 6,534 3,965 8,152 2,569 1,293 526 768 26.... 19 64 5,259 -5,304 38.4 11,856 6,597 3,921 7,935 2,675 1,592 513 1,079 8 in New York City 1972—June 7.... 2,772 -2,699 51.0 3,721 948 948 2,772 1,406 1,365 14.... 3.215 -3,176 60.2 3.824 609 609 3.215 1,268 1.215 21.... 18 3,155 -3,096 58.1 4,126 971 971 3,155 1,389 1,345 28.... 2,363 -2,334 45.3 3,326 963 950 2,376 1,121 1,098 July 5... . 2,713 -2,673 49.2 3,442 728 710 2,732 1,182 1,124 12.... 3.215 -3,176 60.2 3.824 609 609 3.215 1,268 1.215 19.... 2,876 -2,846 51.4 3,693 817 743 2,950 854 805 26.... 23 3,224 -3,230 59.2 3,886 663 663 3,224 1,138 1,096 38 outside New York City 1972—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 3,467 -3,442 41.6 8,559 5,092 3,113 5,446 1,978 578 314 264 28........ 24 1,886 -1,910 23.3 7,863 5,977 3,104 4,759 2,873 464 415 49 July 5 . , 88 70 2,022 -2,005 24.1 7,874 5,852 3,242 4,631 2,609 525 379 146 12 . 27 3.190 -3,163 37.8 8,616 5.426 3.409 5.208 2,018 453 291 162 19....... 35 2,707 -2,702 31.7 8,424 5,717 3,222 5,202 2,496 439 477 -38 26....... 2 2,035 -2,075 24.8 7,970 5,935 3,259 4,711 2,675 454 470 -17 5 in City of Chicago 1972—June 7. 1,864 -1,875 138.0 2,567 704 667 1,901 37 254 254 14. 1.926 -1,919 141.3 2.524 598 585 1.939 13 291 291 21. 1,957 -1,945 142.4 2,738 782 740 1,999 42 302 302 28. 1,532 -1,521 113.1 2,156 625 595 1,561 30 277 277 July 5. 1,614 -1,584 115.1 2,166 552 528 1,638 24 259 259 12. 1.926 -1,919 141.3 2.524 598 585 1.939 13 291 291 19. 1,555 -1,558 111.4 2,298 743 649 1,649 94 203 203 26. 26 1,458 -1,481 108.7 2,154 696 590 1,564 106 214 214 33 others 1972—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 July 5. 58 70 408 -420 6.1 5.708 5,300 2,714 2,993 2,586 266 379 -113 12. 20 1,264 -1,244 17.8 6.092 4.828 2.824 3.269 2.005 162 291 -130 19. 38 1,152 -1,143 16.1 6,126 4,974 2,573 3,553 2,402 237 477 -240 26. -2 577 -594 8.5 5,816 5,239 2,668 3,148 2,570 240 470 -230 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Loans to member banks Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b)2 last par. Sec. 133 Federal Reserve Bank J R u a 1 l t 9 y e 7 3 2 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous R Ju a 1 l t y 9 e 7 3 2 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous J R u a 1 ly t 9 e 7 3 2 o 1 n , Ef d fe a c t t e ive Pre r v at io e us Boston.............................................. 4*4 Dec. 13, 1971 434 5 Dec. 13, 1971 5*4 6 Vi Dec. 13, 1971 6 V4 New York....................................... 4Vi Dec. 17, 1971 434 5 Dec. 17, 1971 514 6*4 Dec. 17, 1971 634 4Vi Dec. 17, 1971 434 5 Dec. 17, 1971 5V4 6Vi Dec. 17, 1971 634 4V4 Dec. 17, 1971 434 5 Dec. 17, 1971 5V4 6V4 Dec. 17, 1971 634 4Vi Dec. 24, 1971 434 5 Dec. 24, 1971 514 6*4 Dec. 24, 1971 634 Atlanta............................................ 4Vi Dec. 23, 1971 434 5 Dec. 23, 1971 5V4 6*4 Dec. 23, 1971 634 Chicago............................................ 4Vi Dec. 17, 1971 434 5 Dec. 17, 1971 5V4 6V4 Dec. 17, 1971 634 St. Louis.......................................... 4 Vi Dec. 13, 1971 434 5 Dec. 13, 1971 5*4 6*4 Dec. 13, 1971 634 Minneapolis.................................... 4 Vi Dec. 23, 1971 434 5 Dec. 23, 1971 514 6Vi Dec. 23, 1971 634 Kansas City..................................... 4Vi Dec. 13, 1971 434 5 Dec. 13, 1971 5V4 6Vi Dec. 13, 1971 634 Dallas.............................................. 4V4 Dec. 24, 1971 434 5 Dec. 24, 1971 514 6Vi Dec. 24, 1971 634 San Francisco................................. 4Vi Dec. 13, 1971 434 5 Dec. 13, 1971 51/4 6V4 Dec. 13, 1971 634 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*4-134 1*4 May 29. 3 -3% 3 Vi 15............ 11/2-134 m June 12. 3% 3 Vi May 2............ iy4 m Sept. 11. 3 Vi-4 4 1970—Nov. 11................... 534-6 6 Aug. 4............ 1V4-2V4 134 18. 4 4 13.................... 534-6 534 1V4-2V4 2 16................... 534 534 S N e o p v t . . 1 n 1 9 8 3 .Y . . . . . . . . . . . . . . . Y . . . . . . . . . . . . . . Y . . . . . . . . . . 2 2 2 1 4 2 - - - % 2 2 2 V 1 % / a 2 2 2 2 2 1 1 i/ 4 4 i 1960—J A u u n g e . 1 1 1 0 2 3 4 . . . . 3 3 3 V 1 3 4 i - - V - 3 4 4 i Vi 4 3 3 3 V V i i Dec. 1 4 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 * 1 5 4 4 * - - 5 5 4 3 3 4 4 5 5 5 1 * 34 / 4 4 23............ 2% 2% Sept. 9. 3 3 1956— A A u p g r. . 2 2 3 1 4 0 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 21 3 3 / 4 2 3 4 - - - 3 3 3 2 2 3 3 3 34 4 1 1 9 9 6 6 4 3 — —J N u o ly v . 2 2 3 1 4 6 0 7 . . . . 3 3 4 3 V - V i 3 - i 1 4 /2 4 4 3 3 % Vi 1971—Jan. 2 2 1 1 2 9 8 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 1 5 5 4 - - 1 - 5 5 5 4 V 1 1 4 4 4 5 5 5 5 5 1 1 1 4 4 4 1957—Aug. 9............ 3 -31/2 3 Feb. 13................... 434-5 5 2 3 3% 3i/i 1965—Dec. 6. 4 -41/2 4% 19................... 434 434 N De o c v . . 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . 3 3 -3*4 3 3 13. 4Vi 4 Vi July 16................... 434-5 5 1967—Apr. 7. 4 —4 Vi 4 23................... 5 5 1958—Jan. 22............ 23/4-3 3 14. 4 4 Nov. 11................... 434-5 5 2 4 234-3 234 Nov. 20. 4 -4 Vi 4 Vi 19................... 434 434 M Ap a r r . . 2 1 1 7 1 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 13 1 1 4 2 4 4 1 — - - 2 3 4 2 3 1 4 4 2 2 2 1 1 1 1 * / 4 4 4 4 1968—Mar. 2 2 1 7 2 5 . . . 4V 4 5 i V -5 i 4 4 5 V *4 i Dec. 2 1 1 4 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 V * 4 4 4 * - - 4 4 4 3 34 4 4 4 4 3 * * 4 4 4 M Au a g y . 1 9 5 . . . . . . . . . . . . . . . . . . . . . . . . 13/4 1 - * 2 4 1 1 3 3 4 4 Apr. 2 1 6 9 . . 5 5 - V 5 i Vi 5 5 V V i i In effect July 31, 1972........ 4*4 4*4 Sept. 12............ l34-2 2 Aug. 16. 5 J4-5 Vi 5 Vi 23............ 2 2 30. 5*4 5% Oct. 24............ 2 -21/i 2 Dec. 18. 5i4-5Vi 5 Vi Nov. 7............ 2*4 21/2 20. 5Vi 5 Vi 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 d AUGUST 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 *> 5 deposits 2,7 deposits 2,4,7 (all classes of banks) Time depos­ its Reserve Country Other Effective date i 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 l k s f l e s s ) Effective date 1 $ U 5 n c m d it e i y l r ­ ba $ n O 5 k v m s e i r l ­ $ U 5 n m de b il r a ­ nk $ s O 5 v m e i r l ­ d S e in i p a t g s v o s ­ s­ $ U 5 ti n m m d e e i l r ­ d ep $ O o 5 s v m it e s i r l ­ lion lion lion lion lion lion In effect Dec. 31, 1949. 22 18 12 1966—July 14,21. 6 16% 64 64 Sept. 8, 15. 1951—Jan. 11,16....... 23 19 13 Jan. 25, Feb. 1 24 20 14 1967—Mar. 2. 3% 3% 1953—July 9,1........... 22 19 13 Mar. 16. 3 3 1954—June 24, 16....... 21 July 29, Aug. 1 20 18 12 1968—Jan. 11,18....... 16% 17 12 12% 1958—Feb. 27, Mar. 1 191/2 171/2 11% 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 July 31, 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” beginning on p. 679 of the 4 Since Oct. 16, 1969, member banks have been required under Regula­ July 1972 Bulletin. tion M to maintain reserves against balances above a specified base due from domestic offices to their foreign branches. Effective Jan. 7, 1971, the Note.—All required reserves were held on deposit with F.R. Banks applicable reserve percentage was increased from the original 10 per cent June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member to 20 percent. Regulation D imposes a similar reserve requirement on bor­ banks were allowed to count part of their currency and coin as reserves; rowings above a specified base from foreign banks by domestic offices effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. MARGIN REQUIREMENTS (Per cent of market value) For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946—Jan. 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

AUGUST 1972 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits............. 4% 12 months or more.. 4 4 Other time deposits:2 Less than 12 months. 3% 3% Multiple maturity:3 30-89 days........... 4 4 Vi 90 days-1 year... 5 1 year to 2 years., 5 5V4 2 years and over.. 5% Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more.... 4 1 year to 2 years.. 5 Vi 5 Vi 6 months to 12 months, 3*4 4 Vi 2 years and over. . 5Va 90 days to 6 months.. . 2% 5Vi $100,000 and over: Less than 90 days......... 1 4 30-59 days.......... 5% (4) (30-89 days) 60-89 days.......... 5% (4) 90-179 days........ 5Vi 5*4 6 ey4 180 days to 1 year. 7 1 year or more... W/4 7Vi 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 6Vi per cent on maturities of those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k 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 May 17, 1972 Four weeks ending June 14, 1972 Gross demand—Total., 200,548 43,046 8,265 71,793 77,445 Gross demand—Total. 196,077 41,147 8,108 70,345 76,477 Interbank.................. 25,691 11,852 1,345 9,365 3,129 Interbank................. 25,252 11,481 1,360 9,314 3,097 U.S. Govt.................. 8,976 1,817 443 3,715 3,002 U.S. Govt................. 6,142 948 252 2,481 2,461 Other......................... 165,881 29,377 6,477 58,713 71,314 Other......................... 164,682 28,718 6,496 58,550 70,919 Net demand 1............... 153,161 27,418 6,607 54,418 64,718 Net demand 1.............. 149,937 26,506 6,429 53,178 63,825 Time.............................. 221,754 26,997 7,908 80,581 106,268 Time............................. 224,607 27,779 8,170 81,710 106,947 Demand balances due Demand balances due from domestic banks 12,957 3,218 150 2,667 6,922 from domestic banks 13,424 3,616 147 2,725 6,936 Currency and coin........ 5,533 431 107 1,736 3,258 Currency and coin.... 5,468 442 103 1,716 3,206 Balances with F.R. Balances with F.R. Banks......................... 27,322 5,573 1,395 11,149 9,206 Banks....................... 27,171 5,531 1,387 11,145 9,109 Total reserves held. 32,855 6,004 1,502 12,885 12,464 Total reserves held.... 32,639 5,973 1,490 12,861 12,315 Required.................... 32,670 5,987 1,494 12,870 12,319 Required................... 32,485 5,962 1,492 12,850 12,182 Excess....................... 185 17 15 145 Excess....................... 154 11 - 2 11 133 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 □ AUGUST 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 July 26 July 19 July 12 July 5 June 28 July 31 June 30 July 31 Assets Gold certificate account................................. 10,303 10,303 10,303 10,303 10,303 10,303 10,303 10,075 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash............................................... 317 314 303 305 315 324 319 277 Loans: Member bank borrowings.............. 637 81 85 514 474 83 130 778 Other................................................ Acceptances: Bought outright............................... 64 66 67 63 73 55 Held under repurchase agreements. 48 Federal agency obligations: Bought outright............................... 1,079 1,086 1,086 1,086 1,118 1,079 1,106 Held under repurchase agreements. 48 46 10 U.S. Govt, securities: Bought outright: Bills........................... 30,782 30,855 28,331 31,398 30,806 30,724 31,258 28,252 Certificates—Special. Other.. Notes......................... 36,596 36,596 36,596 36,596 36,596 36,596 36,596 34,354 Bonds....................... 3,502 3,502 3,502 3,502 3,502 3,502 3,502 3,235 Total bought outright..................... i 70,953 1-2 68,429 i 71,496 1 70,904 i 70,822 i 71,356 i 65,841 Held under repurchase agreements. 356 341 62 Total U.S. Govt, securities. 70,880 71,309 68,429 71,837 70,966 70,822 71,356 65,841 Total loans and securities................... 72,660 72,634 69,666 73,598 72,716 72,047 72,665 66,674 Cash items in process of collection... 3311,692 *13,004 *12,576 *11,364 11,559 *9,851 10,514 9,244 Bank premises..................................... 163 164 163 163 163 164 163 144 Other assets: Denominated in foreign currencies. 9 15 16 16 22 7 18 23 IMF gold deposited 3..................... 144 All other........................................... 996 976 '928 883 '857' i*097 809 898 Total assets. *96,540 *97,810 *94,355 *97,032 96,335 *94,193 95,191 87,879 Liabilities F.R. notes.......................................... 55,048 55,252 55,579 55,435 54,669 54,897 54,698 51,610 Deposits: Member bank reserves.................. *27,778 *28,014 *24,270 *28,369 27,528 *26,068 27,482 25,321 U.S. Treasurer—General account. 2,490 2,426 2,816 1,795 2,923 2,298 2,344 1,115 Foreign........................................... 156 236 172 189 194 160 257 162 Other: IMF gold deposited 3............... 144 All other..................................... 601 615 561 575 585 620 836 613 Total deposits. *31,025 *31,291 *27,819 *30,928 31,230 *29,146 30,919 27,355 Deferred availability cash items........... 8,139 8,973 8,741 8,255 ,071 7,744 7,215 6,623 Other liabilities and accrued dividends. 545 574 560 583 589 577 580 557 Total liabilities........................................ *94,757 *96,090 *92,699 *95,201 94,559 *92,364 93,412 86,145 Capital accounts Capital paid in............................................................. 773 774 774 773 773 775 772 731 Surplus.......................................................................... 742 742 742 742 742 742 742 702 Other capital accounts................................................. 268 204 140 316 261 312 265 301 Total liabilities and capital accounts.......................... *96,540 *97,810 *94,355 *97,032 96,335 *94,193 95,191 87,879 Contingent liability on acceptances purchased for foreign correspondents............................................ 262 264 265 255 252 263 251 228 Marketable U.S. Govt, securities held in custody for foreign and international accounts...................... 29,739 29,869 29,740 28,795 29,069 29,804 28,579 18,191 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 58,866 58,949 58,818 58,456 58,172 58,917 58,287 55,095 Collateral held against notes outstanding: 1,945 1,945 1,945 1,945 1,945 1,945 1,945 3,250 U.S. Govt, securities.................................................. 57,855 58,005 57,985 57,495 57,495 58,055 57,495 53,340 Total collateral............................................................... 59,800 59,950 59,930 59,440 59,440 60,000 59,440 56,590 1 See note 6 on p. A-5. 3 See note 1(b) to table at top of p. A-77. 2 See note 7 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JULY 31, 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 Gold certificate account.................. 10,303 404 3,109 678 732 1,022 508 1,664 537 189 280 403 777 Special Drawing Rights certif. acct.. 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks............... 1,230 153 218 62 61 116 215 57 49 32 55 89 123 Other cash........................................ 324 14 22 12 37 40 36 47 19 8 37 14 38 Loans: Secured by U.S. Govt, and agency obligations............................. 83 26 28 2 10 * 3 2 2 4 6 Other......................................... Acceptances: Bought outright........................ 63 63 Held under repurchase agreements Federal agency obligations: Bought outright............................ 1,079 50 276 58 82 79 58 173 40 21 47 49 146 Held under repurchase agreements U.S. Govt, securities: Bought outright........................ 170,822 3,262 18,093 3,807 5,410 5,193 3,818 11,335 2,632 1,386 3,063 3,234 9,589 Held under repurchase agreements Total loans and securities............ 72,047 3,338 18,460 3,865 5,494 5,282 3,876 11,511 2,674 1,409 3,114 3,289 9,735 Cash items in process of collection 13,751 861 2,414 806 1,044 972 1,518 2,082 752 568 891 855 988 Bank premises................................ 164 2 8 4 27 13 16 17 15 25 17 12 8 Other assets: Denominated in foreign currencies 7 22 1 1 1 1 1 All other................................... 1,097 127 267 56 75 76 56 152 36 23 43 45 141 Total assets. 99,323 4,922 24,593 5,506 7,504 7,557 6,248 15,601 4,097 2,261 4,452 4,722 11,860 Liabilities F.R. notes............................................ 56,127 2,966 13,886 3,313 4,463 4,927 2,821 9,562 2,202 974 2,174 2,199 6,640 Deposits: Member bank reserves..................... 26,068 926 7,320 1,241 1,638 1,422 1,714 3,454 940 663 1,177 1,492 4,081 U.S. Treasurer—General account.. 2,298 146 505 168 181 178 156 199 190 81 126 124 244 Foreign.............................................. 160 6 360 7 12 7 9 20 5 3 6 8 17 Other: All other....................................... 620 1 558 2 2 16 5 4 1 3 2 26 Total deposits. 29,146 1,079 8,443 1,418 1,833 1,623 1,884 3,677 1,136 747 1,312 1,626 4,368 Deferred availability cash items......... 11,644 768 1,646 652 1,001 864 1,386 1,987 677 487 864 774 538 Other liabilities and accrued dividends 577 28 145 30 44 42 36 90 21 13 25 26 77 Total liabilities................... 97,494 4,841 24,120 5,413 7,341 7,456 6,127 15,316 4,036 2,221 4,375 4,625 11,623 Capital accounts Capital paid in............ 775 34 200 39 71 40 53 120 26 18 33 42 99 Surplus......................... 742 34 193 38 68 38 50 111 25 17 32 41 95 Other capital accounts. 312 13 80 16 24 23 18 54 10 5 12 14 43 Total liabilities and capital accounts.. 99,323 4,922 24,593 5,506 7,504 7,557 6,248 15,601 4,097 2,261 4,452 4,722 11,860 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 263 11 469 14 24 14 18 39 9 6 11 14 34 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 58,917 3,169 14,662 3,421 4,635 5,123 3,076 9,850 2,309 1,011 2,269 2,314 7,078 Collateral held against notes out­ standing : Gold certificate account.................. 1,945 150 300 350 285 700 155 5 U.S. Govt, securities....................... 58,055 3,050 14,850 3,250 4,400 4,915 3,150 9,300 2,230 1,030 2,300 2,380 7,200 Total collateral. 60,000 3,200 14,850 3,550 4,750 5,200 3,150 10,000 2,385 1,030 2,300 2,385 7,200 1 See note 6 on page A-5. 4 After deducting $194 million participations of other Federal Reserve 2 After deducting $5 million participations of other Federal Reserve Banks. Banks. 3 After deducting $100 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 a AUGUST 1972 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s Gross m re s a d h t o e i u f m r t r s i p , ty ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o u i c r f r h t i s . ty tions 1971—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 *200’ 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 J M un ay e 1,2 4 9 7 4 5 2 3 9 3 1 5 96 1,0 4 9 7 4 5 2 3 9 3 1 5 2, - 6 9 2 0 6 69 -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 Govt, repur­ change1 c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s se it c ie u s r­ r O ig u h t­ t R a m c g e h e r p a n e s u e t e s r ­ ­ r O i n g u e h t t t ­ , m a c g h n e r a n e e s t t e s e ­ , 1971—June . 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 Oct... 2,616 2,616 -361 35 1 -326 Nov.. 267 1,920 58 150 5,003 5,003 613 244 6 862 Dec.. 67 6 4,830 3,607 2,401 145 101 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 June. 109 20 211 1,326 -251 + 127 -25 -6 -65 -221 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 hi s l 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 1,444 433 165 1 1969—Dec. 1,967 1,575 199 60 125 1970—Dec. 257 154 98 1971—Apr. 34 27 May 94 87 June 96 87 July. 23 12 Aug. 23 12 Sept. 23 12 Oct.. 30 12 Nov. 15 2 Dec. 18 2 1972—Jan.. 17 2 Feb. 17 2 Mar. 17 2 Apr. 17 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 July 26 July 19 July 12 July 5 June 28 July 31 June 30 July 31 Loans—Total.................................................................. 637 81 85 514 475 83 131 778 Within 15 days............................................................ 634 78 83 511 471 81 127 774 3 3 2 3 4 2 4 4 91 days to 1 year........................................................ Acceptances—Total........................................................ 64 110 66 115 148 63 73 55 Within 15 days............................................................ 17 53 11 63 97 17 16 18 16 days to 90 days...................................................... 47 57 55 52 51 46 57 37 91 days to 1 year........................................................ U.S. Government securities—Total.............................. 70,880 71,309 68,429 71,837 70,966 70,822 71,356 65,841 Within 15 days*.......................................................... 4,679 5,032 1,593 4,497 4,737 4,209 2,734 3,062 16 days to 90 days...................................................... 15,980 16,020 16,639 16,818 15,827 15,726 17,292 14,173 91 days to 1 year........................................................ 18,951 18,987 18,927 19,252 19,132 19,617 20,060 18,206 Over 1 year to 5 years................................................ 24,108 24,108 24,108 24,108 24,108 24,108 24,108 23,600 Over 5 years to 10 years............................................ 5,913 5,913 5,913 5,913 5,913 5,913 5,913 5,907 Over 10 years.............................................................. 1,249 1,249 1,249 1,249 1,249 1,249 1,249 893 Federal agency obligations—Total............................... 1,079 1,134 1,086 1,132 1,128 1,079 1,106 Within 15 days1.......................................................... 38 93 7 52 42 38 20 16 days to 90 days...................................................... 99 98 136 136 123 99 123 91 days to 1 year........................................................ 146 142 142 143 162 146 162 Over 1 year to 5 years................................................ 475 480 480 480 480 475 480 Over 5 years to 10 years............................................ 197 197 197 197 197 197 197 Over 10 years.............................................................. 124 124 124 124 124 124 124 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 t 2 h S 6 e A r ’s 1971—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................................ 12,530.7 5,687.0 2,803.1 6,843.7 4,040.6 83.9 205.3 82.0 56.3 46.2 Feb............................... 13,027.8 6,013.9 2,913.1 7,013.9 4,100.9 84.5 205.1 82.6 56.2 45.8 Mar.............................. 12,785.5 5,631.4 2,932.9 7,154.2 4,221.2 83.0 195.2 83.3 57.2 47.0 Apr............................... >■13,176.9 5,801.4 3,053.1 '7,375.5 '4,322.4 85.6 202.1 87.3 58.9 47.9 May............................. r13,401.6 5,939.2 3,148.8 '7,462.3 '4,313.5 85.6 200.8 89.8 '58.7 '46.9 June............................. 13,281.7 5,780.8 3,096.4 7,500.9 4,404.5 84.7 199.9 88.1 58.7 47.5 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ AUGUST 1972 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 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—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 June.......... 62,201 42,399 7,016 2,328 135 3,178 9,295 20,446 19,803 5,446 13,923 197 230 2 4 i 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 June 30, against Treasury F.R. Banks 1972 gold and cash Banks and silver and Agents June May June certificates Agents 30 31 30 Gold................................................................................. 10,410 (10,303) 107 Gold certificates.............................................................. (10,303) 2 10,302 1 Federal Reserve notes................................................... 58,286 126 3,588 54,572 54,120 51,304 Treasury currency—Total.............................................. 8,066 119 318 7,629 7,582 7,089 Dollars....................................................................... 712 29 50 633 626 482 Fractional Coin........................................................... 6,739 88 268 6,383 6,343 5,990 United States notes..................................................... 323 2 320 320 321 In process of retirement 3.......................................... 293 292 293 296 Total—June 30, 1972.................................................... 4 76,761 (10.303) 351 10.302 3,907 62,201 May 31, 1972.................................................... 4 76,006 (10.303) 358 10.302 3.644 61,702 June 30,1971.................................................... 4 72,247 (10,075) 454 10,074 3,326 58,393 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

AUGUST 1972 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjustedr Not seasonally adjusted*' Month or week m2 Mi M2 Mi Mi (Mi plus time (Mi plus deposits Mi (Mi plus time (Mi plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other than institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 1968—Dec................................ 197.4 378.0 572.6 203.4 383.0 577.5 1969—Dec................................ 203.7 386.8 588.3 209.8 392.0 593.4 1970—Dec................................ 214.8 418.2 633.9 221.2 423.5 c639.1 1971—July............................... 227.4 453.4 693.8 226.0 452.0 693.0 Aug............................... 228.0 454.5 697.6 224.9 451.7 694.5 Sept............................... 227.6 455.6 701.2 226.2 454.3 699.5 Oct................................ 227.7 458.3 706.5 227.5 458.0 705.9 Nov............................... 227.7 460.8 711.6 229.6 461.4 711.4 Dec................................ 228.2 464.7 718.1 235.1 470.2 723.4 1972—Jan................................ 228.8 469.9 727.3 235.3 475.3 732.8 Feb................................ 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 r............................ 235.5 486.1 758.8 231.3 483.2 755.9 June r............................. 236.6 490.4 766.1 234.7 488.9 765.5 July*............................. 239.6 495.2 775.0 238.0 493.7 774.2 Week ending— 1972—July 5........................ 238.0 493.7 238.8 494.5 12........................ 240.9 495.8 239.5 494.4 19........................ 239.7 495.0 238.3 493.7 26*...................... 239.6 495.5 235.8 491.8 Aug. 2*...................... 239.7 496.2 237.4 494.1 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 c215.7 50.0 171.3 25.8 202.3 228.1 c215.6 7.3 1971—Jul y 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 c33.6 243.7 277.3 261.4 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 r181.1 36.3 250.7 287.0 272.6 54.0 r177.3 35.1 251.9 286.9 r272.7 10.4 June....... 54.7 181.9 37.1 253.8 290.9 r275.1 54.6 *•180.1 35.8 254.2 r290.0 *•276.6 *•6.8 July*___ 54.9 184.7 38.1 255.6 293.7 293.7 55.2 182.8 37.0 255.7 292.7 280.5 7.2 Week ending— July 5. 54.8 183.2 37.4 255.7 293.1 55.4 183.4 35.7 255.7 291.4 8.3 12. 54.9 186.0 37.9 255.0 292.8 55.6 183.9 36.4 255.0 291.3 5.9 19. 55.0 184.7 38.2 255.3 293.5 55.3 183.0 37.0 255.4 292.4 6.1 26* 55.0 184.6 38.5 255.9 294.4 54.9 180.9 37.7 256.0 293.7 8.4 Aug. 2* 54.8 184.9 38.6 256.5 295.1 54.8 182.6 38.3 256.7 294.9 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 A/2, plus the average of the beginning and end of month banks and the U.S. Govt., less cash items in process of collection and F.R. deposits of mutual savings banks and savings and loan shares. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside 3 Negotiable time certificates of deposit issued in denominations of the Treasury, F.R. Banks, and vaults of all commercial banks. Time de­ $100,000 or more by large weekly reporting commercial banks. posits adjusted are time deposits at all commercial banks other than those 4 Average of the beginning and end-of-month deposits of mutual savings due to domestic commercial banks and the U.S. Govt. banks and savings and loan shares. 5 At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANK RESERVES; BANK CREDIT □ AUGUST 1972 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves,S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non­ Total bor­ Re­ Avail­ Demand Demand rowed quired 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 r164.5 128.3 '4.8 301.2 163.8 133.3 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 r178.6 133.8 '6.5 322.8 178.2 138.7 6.0 330.6 334.4 1971—J uly.... 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 '200.2 141.0 '5.8 344.6 200.8 138.1 5.8 351.0 348.6 Sept.... 31.07 30.56 30.91 28.50 349.2 '202.2 140.5 '6.5 348.2 202.7 139.2 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 c378.7 226.1 c147.3 5.3 376.4 225.2 145.6 5.7 382.4 380.2 July?. .. 33.14 32.93 32.96 30.37 382.6 228.2 149.0 5.3 381.0 227.1 147.9 6.1 386.5 384.9 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 Securities Total Total loans Commercial loans Commercial in a v n e d s t­ Plus and industrial U.S. in a v n e d st­ Plus and industrial U.S. ments! 2 Total i,2 loans Plus Treas­ Other2 ments1,2 Total1,2 loans Plus Treas­ sold 1,3 Total 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 1966—Dec. 31___ 316.1 213.9 78.6 53.5 48.7 324.0 219.0 80.6 56.2 1967—Dec. 30___ 352.0 231.3 86.2 59.3 61.4 360.8 236.8 88.4 62.5 1968—Dec. 31___ 390.6 258.2 95.9 61.0 71.4 400.4 264.4 98.4 64.5 1969—Dec. 314 ... 402.1 279.4 283.3 105.7 108.3 51.5 71.2 412.1 286.1 290.0 108.4 111.0 54.7 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 1971—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 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 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 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 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 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 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 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 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 Apr. 26p ... 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 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 June 30? ... 514.0 341.2 343.5 5119.4 5120.8 62.8 110.0 518.2 347.4 349.7 5121.8 5123.2 59.9 July 26?. . . 518.3 346.3 348.6 120.8 122.2 61.9 110.2 518.4 348.8 351.1 121.6 123.0 59.2 1 Adjusted to exclude domestic commercial interbank loans. net of valuation reserves as was done previously. For a description of the 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in this table for payment of personal loans were deducted as a result of a change in beginning January 1959 have been revised to include valuation reserves. Federal Reserve regulations. 5 Beginning June 30, 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 Beginning June 30, 1971, Farmers Home Administration insured notes Dec. 1971 Bulletin, pp. 974-75. For monthly data, 1948-58, see Aug. totaling approximately $700 million are included in “Other securities” 1968 Bulletin, pp. A-94-A-97. For a description of the seasonally ad­ rather than in “Loans.” justed series see the following Bulletins: July 1962, pp. 797-802; July 1966, 3 Loans sold outright by commercial banks to own subsidiaries, pp. 950-55; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. For foreign branches, holding companies, and other affiliates. monthly data on commercial and industrial loans, 1959-71, see July 1972 4 Beginning June 30, 1969, data revised to include all bank-premises Bulletin, p. A-109. For description of series, see July 1972 Bulletin, subsidiaries and other significant majority-owned domestic subsidiaries; p. 683. Data are for last Wednesday of month except for June 30 and earlier data include commercial banks only. Also, loans and investments Dec. 31; data are partly or wholly estimated except when June 30 and Dec. are now reported gross, without valuation reserves deducted, rather than 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and caDital Total Bank credit assets, Treas­ net— Date c c s G S e a a to D r n o t t e c d i l R s f d k i 1 ­ r s o c e u i t n u n a u r g c r n y t ­ ­ y 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 B e e e a c s d n e u e r k r r v i a s t e l ies Other3 O r s i e t t c i h 4 e u e s ­ r c l T a i i a n a p t o n i b e i e t t d a i t 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 co m a a n a u n p i c e n s i d ­ t t c t a s . , l banks 1947—Dec. 31................... 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30................... 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,008 184,384 14,624 1967—Dec. 30................... 11,982 6,784 468,943 282,040 117,064 66,752 49,112 1,200 69,839 487,709 444,043 43,670 1968—Dec. 31.................... 10,367 6,795 514,427 311,334 121,273 68,285 52,937 51 81,820 531,589 484,212 47,379 1969—Dec. 315.................. 10,367 6,849 532,663 335,127 115,129 57,952 57,154 23 82,407 549,879 485,545 64,337 1970—Dec. 31.................... 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971—July 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. 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. 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. 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. 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. 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. 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. 26p................. 10,000 7,900 660,000 391,000 138,900 65,000 71,300 2,600 130,100 677,900 612,500 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 July 26*.................. 10,800 8,100 674,200 405,800 136,200 62,700 70,900 2,600 132,300 693,100 628,600 64,500 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted * Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n n u s c i k r d y ­ s e d ju m e D p a s a t o d e e n s ­ ­ d d it 7 s Total o b r u C e a t n u n s c i r k d y ­ s e d ju e m D p a s a o t d e e n s ­ ­ d d it 7 s Total b m C a e n o r k c m s ia ­ l 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 m y s i t s 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 h s s ­ ­ s b c a a o a A v n n m i t d k n l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315... 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970—Dec. 31.... 209,400 47,800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971—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 52,200 175,200 369,400 284,000 85,400 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 -6,900 2,900 400 9,500 2,900 July 26*... 233,300 53,700 179,600 233,000 53,800 179,200 380,400 292,800 87,600 3,000 300 9,400 2,500 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 □ AUGUST 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets 3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Time 5 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,C >65 105,921 30,241 219 8,950 14,011 1947—Dec. 31 *. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31... 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30... 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 31 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—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. 29p.. 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. 26^.. 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 28^.. 535,580 365,380 59,600110,600 92,730 653,980 538,620 26,520 3,000 8,920 209.710 290,470 34,240 48,340 13.875 July 26*\. 539,350 369,750 59,190110,410 92,480 657.330 543,510 27,310 3,230 8,860 210.710 293,400 34,230 48,710 13.875 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—July 28... 376,133 257,988 42,844 75,301 75,342 471,089 388,088 25,436 1,804 5,496 157,436 197,916 23,131 35,555 5.730 Aug. 25... 379,269 261,993 42,337 74,939 74,807 473,923 389,558 25,169 1,883 7,907 155,336 199,263 23,749 35,723 5.730 Sept. 29... 385,391 266,575 42,369 76,447 77,361 483,064 394,598 25,829 2,274 7,369 157,000 202,126 25,843 35,827 5.724 Oct. 27... 386,028 264,847 43,586 77,595 83,963 490,047 401,167 27,616 2,385 4,840 162,600 203,726 26,203 36,179 5.725 Nov. 24... 389,468 267,287 44,630 77,551 83,788 492,995 399,678 26,941 2,372 3,317 161,905 205,143 29,776 36,303 5,729 Dec. 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 5,931 161,031 214,012 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 80,019 520,769 423,451 25,272 2,644 7,301 165,349 222,885 32,965 38,355 5.714 July 26p.. 422,377 295,860 42,923 83,594 79,416 523,010 426,833 25,970 2,867 7,328 165,551 225,117 32,924 38,650 5.714 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—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 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 l 7,372 12 May 31... 65,719 50,799 5,257 9,663 22,516 i 93,765 70,852 12,303 1,198 1,038 29,918 26,395i 8,103 i 7,618 13 June 28... 66,761 51,973 4,962 9,826i 19,971 92,258 70,213 11,790i 1,156 989 29,649 26,629' 7,528 1 7,559 13 July 26... 66,331 51,408 4,954 9,969' 19,517 91,247 69,508 11,580i 1,312: l,17C 28,396 27,*05C1 7,431 7,612 13 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets 3 and Demand ings counts banks l ILS. capital Total 3 Treas­ Other ac­ De­ Time Time* ury 2 counts4 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—Julv 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 Sent. 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. 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. 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............ 17,66£ 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. 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 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 c191 243 6,533 c8,392 2,926 1,839 9 July 26............ 18,582 14,130 1,398 3,054 3,070 22,727 16,695 1,447 194 310 6,157 8,587 3,187 1,850 9 Other reserve city: * 1Q41 Der. ............ 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. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............ 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31............ 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967—Dec. 30............ 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............ 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 7........ 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Dec. 31............ 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—July 28............ 136,792 97,128 13,487 26,177 26,803 170,828 138,268 9,150 684 1,999 54,884 71,551 11,822 12,785 156 Aug. 25............ 137,513 98,538 13,132 25,843 27,341 172,142 138,865 9,111 667 3,366 54,235 71,486 12,375 12,854 156 Sept. 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. 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. 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 33,732 190,880 155,226 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. 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. 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 July 26?.......... 154,897 113,590 13,855 27,452 31,161 194,283 154,255 9,721 1,098 3,226 59,082 81,128 17,854 14,010 156 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—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. 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. 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. 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. 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. 179,111 112,399 23,874 42,838 25,545 210,567 182,521 3,019 263 2,622 70,719105,898 4,018 15,002 5,536 May 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 25,024 212,891 184,038 3,015 263 2,759 70,769107,232 4,355 15,054 5,536 July 26? ........ 182,567 116,732 22,716 43,119 25,668 214,753 186,375 3,222 263 2,622 71,916108,352 4,452 15,178 5,536 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ AUGUST 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 memhershir) Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Loans and Total3 Demand ings ac­ of l U.S. Other capital De­ Time counts banks Treas­ 2 ac­ mand Time 5 ury counts4 U.S. Other Govt. Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,(5 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,S3 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25.277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876' 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13.464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13.464 1970—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 i 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 41,927j 52,271 305,800 251,489 14,324 437 3,534 113,134 120,060 9,895 22,628 4,700 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 1970—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 10,777i 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262j 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 14,437j 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 1,063I 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 23,550i 13,391 5,523 . 5,942: 49,275 i 44,280 559 61 726 23,140 19,793 72, 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 1 6,233 i 7,174• 54,747’ 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310i 14,137r 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 33,636i 13,873 i 9,349 ' 7,777r 65,921 59,434 7091 87 543 28,471 29,6251 99 ' 5,342 7,384 1967—Dec. 30.. 64,449 37,675i 15,146 i 11,629' 8,403 74,328 : 67,107 786 89 588 31,004 34,640l 162 : 5,830 i 7,440 1968—Dec. 31.. 73,553 43,378; 16,155i 14,020I 9,305! 84,605! 76,368 908 94 691 34,615 40,0601 211r 6,482: 7,504 1969—June 307. 78,032 48,358; 14,341 15,333 i 8,696i 88,802: 78,610 791 78 749 34,070 42,921 451 7,004 • 7,528 Dec. 31.. 82,133 51,643i 14,565i 15,925i 10,056; 94,453i 83,380 1,017r 85i 924■ 37,561 43,7921 629> 7,403 7,595 1970—Dec. 31.. 92,399 57,489' 16,039> 18,871 11,208: 106,457r 93,998 1,091 141 1,438! 40,005! 51,322* 571 8,326i 7,735 1971—June 30.. 99,532 61,509> 15,953 1 22,07C ) 10,439» 113,058 1 99,774 989) 186> 1,409> 39,908I 57,283 1 59' r 8,993 l 7,811 Dec. 31.. 108,527 67,188! 17,058t 24,282i 12,092t 123,97C) 109,841 1,212> 242t 1,723\ 44,711r 61,946> 5821 9,451 7,875 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 a s i n n s m i d s f u e ic F r m a a D n t b i c I o e C e r n s h b i y p Total Loa l ns T U re . S S a e s . c ­ urit O ie t s h 2 er a C ss a e s t h s3 c b T a i a l a l o p i i n c a t i t d i a ­ t ­ e a l s l Total3 m D I a n e n t ­ d erba T n i k m 3 e Dema O nd ther Tim 5 e r B i o n o w g r s ­ ­ c c T a o a o p u c t i n a ­ ta t l s l N ba b u o n e m 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 3:19 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. 7 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 a AUGUST 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b c C a a l n l a l k s d s a a o n te d f l i m o T n a a v o e n n e n t d s a s t t s l i ­ f s e F e u o t r e n c l a d d d . l 2 , ­ s Total C m c a i o i n n e a m d ­ r l ­ ­ A c t a u u l g r l r - - 5 i- o p b T s r u r e o o r c c c ­ F u a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o c ti i o a n l s R t e a e s t a ­ e l O v t i d t h i n o i d e - - - r, Oth 5 er U B s .S e il c . l s u T ri r t e i a e s s u 6 ry S g s l a o e o t n c c a v a d u t t e l ­ . O r s it e t i h c es e u r 5 ­ d tr u ia s l ­ k a e n r d s ot T h o ers BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,1671,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 422,728 9,928286,750108,44310,329 5,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1971—June 30. 481,27015,663307,969 114,362 12,2265,6343,493 2,844 16,95875,77769,1497,527 60,254 77,99419,389 Dec. 31.517,244 19,954327,656118,526 12,4977,2923,659 4,591 16,92681,60174,514~ 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 3,651 333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1969—Dec. 31 io 419,746 9,693284,945107,685 10.314 5,6443,991 2,425 14,89069,66963,0087,319 54,399 58,84011,869 1971—June 30. 478,302 15,381306,194113,411 12,211 5,555 3,480 2,718 16,82575,61568,9427,43759,991 77,68719,048 Dec. 31.514,097 19,623325,764117,603 12,482 7,201 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 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1969—Dec. 31 337,613 7,356235,63996,0956,1875,4083,286 2,258 14,03553,20748,388 6.77639,833 47,2277,558 1971—June 30. 378,76912,026248,04098,5737,0945,333 3,024 2,496 15,77056,93452,0376.777 44,038 61,963 12,702 Dec. 31.405,57015,373262,826101,4797,3116,895 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 47,94126,526 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 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 248 2,274 213 185 1969—Dec. 31 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 7,51720,72217,9293,12014.552 22,4093,304 Dec. 31.149,484 7,771 98,67340,397 1,6301,193 1,407 1,671 7,49722,30019,4053,173 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. 31 ™ 141,286 3,318 89,401 23,7624,739 498 947 148 2,26328,82426,3621,85821,278 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 16,813 14,868 61214,875 11,9564,600 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

AUGUST 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 f d 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 o c 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 .S vt . . 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 e i e f t n e f r c r c d d i s t . k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U i a n o o a n . g s S v v d t s ­ t . a . l S g l a o o t n c a v d a t t e l . IPC3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s 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. 31 io.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,44318,36039,978 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 52930,384242,05525,91247,211 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 13,166 180,86018,02439,450 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 9,951 140,30817,39532,047 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 46220,534 175,75721,70035,822 Dec. 31. . . 27,478 5,778 14,893 140,446 28,056 2,556 8,427 12,955 8,587 152,843 2,549 44523,890 185,55325,04637,279 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. 31io.. 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. 31i°.. 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. 311°.. 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 1,82012,766 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 2,65614,499 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. 31 io 1,644 8,383 38,644 1,112 222 940 4,284 1,416 33,420 126 25 3,269 41,135 965 7,931 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 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports is treated as a noninsured bank and not as a member bank for the period (including figures for all bank-premises subsidiaries and other significant June 30, 1969—June 30, 1970. majority-owned domestic subsidiaries) and (2) reporting of figures for Comparability of figures for classes of banks is affected somewhat by total loans and for individual categories of securities on a gross basis—that changes in F.R. membership, deposit insurance status, and the reserve is, before deduction of valuation reserves. See also notes 1 and 6. classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ AUGUST 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. i Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. cos., etc. Large Banks— Total 1971 July 7.............. 268,681 9,087 8,060 830 139 182,782 82,461 2,247 990 3,725 127 2,401 7,480 7,242 14.............. 265.221 7,549 6,970 452 110 181,816 82,204 2,236 608 3,789 127 2.420 7,073 7,173 21.............. 263.221 7,060 6,545 359 143 180,970 81,849 2,227 546 3,554 142 2.420 7,010 7,013 28............. 264,132 8,433 7,705 569 119 180,561 81,488 2,219 667 3,490 147 2,415 6,828 6,980 1972 June 7.............. 292.091 11,134 10,084 575 401 74 199,770 84,603 2,509 784 6,924 155 2,572 6,176 8.613 14............. 293,299 10,917 9,896 667 279 75 201,014 84,647 2,518 836 7,116 154 2,590 6,407 8,810 21............. 295,419 11,377 10,239 657 317 164 203,146 85,549 2,532 809 7,405 158 2,612 6,675 9,016 28............. 294,629 11,138 10,079 521 389 149 203,428t84,953 2,544 645 7,150 156 1-2,670 f6,646 1*9,311 July 5p............ 298,209 12,901 11,683 638 359 221 205,496 85,442 2,552 589 7,423 158 2,708 7,118 9,558 12 p........... 297,337 12,250 9,566 2,228 269 187 205,134 85,267 2.554 1,319 7,141 160 2,693 6,552 9,553 \9P........... 296,385 11,951 10,916 536 287 212 205,144 85,314 2.555 653 7,149 155 2,684 6,697 9,576 26*........... 296.091 11,571 10,567 597 250 157 204,904 85,188 2,549 717 7,105 167 2,690 6,484 9.613 New York City 1971 July 7............. 58,475 1,301 1,241 43,741 25,935 891 2,546 581 2,196 1,664 14............. 56,932 642 588 43,219 25,916 477 2,677 589 2,034 1,577 21............... 56,508 1,286 1,254 42,561 25,733 457 2,433 587 2,013 1,562 28............. 56,376 1,331 1,253 42,502 25,598 571 2,350 587 1,987 1,556 1972 Juny 7............. 60,522 1,260 1,232 45,476 24,462 631 4,519 644 1,724 2,114 14............... 60,796 1,065 1,009 29 45,918 24,356 689 4,714 641 1,850 2,153 21............... 61,964 1,332 1,301 46,495 24,676 651 4,879 642 1,881 2,200 28............... 61,549 1,715 1,606 46,225 f24,171 522 4,659 f671 11,940 f2,406 July 5 p........... 62,409 1,816 1,768 47,076 24,452 478 4,857 674 2,039 2,488 12^............. 62,043 1,219 1,196 47,018 24,224 1,179 4,640 663 1,735 2,470 19 p........... 61,474 1,264 1,223 10 46,618 24,270 546 4,534 663 1,809 2,516 26p................. 61,088 1,039 1,028 46,280 24,126 584 4,582 657 1,752 2,521 Outside New York City 1971 July 7............... 210,206 7,786 6,819 824 85 139,041 56,526 2,229 99 1,179 107 1,820 5,284 5,578 14............... 208,289 6,907 6,382 442 66 138,597 56,288 2,218 131 1,112 108 1,831 5,039 5,596 21............... 206,713 5,774 5,291 344 126 138,409 56,116 2,210 89 1,121 121 1,833 4,997 5,451 28............... 207,756 7,102 6,452 514 96 138,059 55,890 2,201 96 1,140 126 1,828 4,841 5,424 1972 Juny 7............. 231,569 9,874 8,852 575 401 46 154,294 60,141 2,476 153 2,405 105 1,928 4,452 6,499 14............. 232,503 9,852 8,887 638 279 48 155,096 60,291 2,485 147 2,402 107 1,949 4,557 6,657 21............. 233,455 10,045 8,938 657 315 135 156,651 60,873 2,499 158 2,526 113 1,970 4,794 6,816 28............. 233,080 9,423 8,473 521 291 138 157,203 •60,782 2,512 123 2,491 111 fl ,999 t4,706 t6,905 July 5 p........... 235,800 11,085 9,915 638 359 173 158,420 60,990 2.519 111 2,566 115 2,034 5,079 7,070 \2p............... 235,294 11,031 8,370 2,228 269 164 158,116 61.043 2.521 140 2,501 116 2,030 4,817 7,083 19p........... 234,911 10,687 9,693 536 277 181 158,526 61.044 2.522 107 2,615 112 2,021 4,888 7,060 26 p............... 235,003 10,532 9,539 597 250 146 158,624 61,062 2.519 133 2,523 125 2,033 4,732 7,092 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts. 2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large Banks— Total 1971 35,656 586 1,925 22,692 795 14,455 27,110 4,858 3,574 15,321 3,357 .........................July 7 35,933 591 1,836 22,740 800 14,286 26,613 4,576 3,560 15,168 3,309 ...................................14 36,095 588 1,812 22,743 797 14,174 25,936 4,020 3,582 15,051 3,283 ...................................21 36,177 555 1,786 22,801 812 14,196 25,396 3,544 3,596 15,012 3,244 ...................................28 1972 41,265 1,107 2,574 25,220 947 16,321 26,811 3,884 5,034 14,951 2,942 .........................June 7 41,495 1,150 2,531 25,385 976 16,399 26,943 4,040 5,065 14,985 2,853 ...................................14 41,717 1,152 2,501 25,488 999 16,533 26,612 4,083 4,800 14,864 2,865 ...................................21 141,895 1,405 2,829 25,633 fl,032 fl6,559 26,009 3,625 4,786 14,928 2,670 ...................................28 42,025 1,403 2,786 25,733 1,023 16,978 26,225 3,901 4,823 14,728 2,773 ........................July 5* 42,213 1,432 2,817 25,747 1,018 16,668 25,696 3,523 4,780 14,694 2,699 ...................................12* 42,395 1,429 2,914 25,792 1,020 16,811 25,581 3,422 4,841 14,714 2,604 ...................................19* 42,561 1,339 2,892 25,900 1,011 16,688 25,804 3,498 5,014 14,667 2,625 ...................................26* New York City 1971 3,683 179 907 1,868 529 2,724 5,323 1,497 437 2,993 396 .........................July 7 3.795 193 873 1.875 539 2,637 5,206 1,483 433 2,920 370 ...................................14 3.795 204 853 1.875 544 2,467 4,814 1,124 471 2,867 352 ...................................21 3,801 183 833 1.876 558 2,563 4,612 877 541 2,848 346 ...................................28 1972 4,427 292 1,073 1,933 580 2,994 4,913 1,240 995 2,373 305 .........................June 7 4,457 270 1,090 1,939 604 3,075 4,984 1,225 1,036 2,459 264 ...................................14 4,476 301 1,098 1,947 595 3,071 5,072 1,331 994 2,442 305 ...................................21 f4,502 412 1,254 1.955 f641 1-3,015 4,636 999 963 2,383 291 ...................................28 4,524 419 1,164 1.956 627 3,322 4,737 1,150 964 2,357 266 .........................July 5* 4,548 418 1,183 1,965 631 3,285 4,518 1.013 966 2,366 173 ...................................12^ 4,570 445 1,281 1,970 623 3,315 4,494 1.014 1,008 2,388 84 ...................................19* 4,591 346 1,259 1,967 616 3,207 4,660 1,099 1,085 2,372 104 ...................................26 * Outside New York City 1971 31,973 407 1,018 20,824 266 11,731 21,787 3,361 3,137 12,328 2,961 .July 7 32,138 398 963 20,865 261 11,649 21,407 3,093 3,127 12,248 2,939 ..........14 32,300 384 959 20,868 253 11,707 21,122 2,896 3,111 12,184 2,931 ..........21 32,376 372 953 20,925 254 11,633 20,784 2,667 3,055 12,164 2,898 ..........28 1972 36,838 815 1,501 23,287 367 13,327 21,898 2,644 4,039 12,578 2,637 .June 7 37,038 880 1,441 23,446 372 13,324 21,959 2,815 4,029 12,526 2,589 ..........14 37,241 851 1,403 23,541 404 13,462 21,540 2,752 3,806 12,422 2,560 ..........21 f37,393 993 1,575 23,678 t391 1-13,544 21,373 2,626 3,823 12,545 2,379 ..........28 37,501 984 1,622 23,777 396 13,656 21,488 2,751 3,859 12,371 2,507 .July 5* 37,665 1,014 1,634 23,782 387 13,383 21,178 2,510 3,814 12,328 2,526 ...........12* 37,825 984 1.633 23,822 397 13,496 21,087 2,408 3,833 12,326 2.520 ...........19* 37,970 993 1.633 23,933 395 13,481 21,144 2,399 3,929 12,295 2.521 ..........26* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

:eporting banks □ august 1972 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re­ Bal­ of State corp. stock, in serves Cur­ ances and and process with rency with political securities of F.R. and do­ liab Total subdivisions collec­ Banks coin mestic itic tion banks Tax Certif. war­ All of All rants3 other partici­ other5 pation4 49,702 7,573 35,200 1,335 5,594 36,859 16,966 3,318 7,244 349, 49,243 7,490 34,942 1.373 5,438 32,470 18,906 3,652 5,938 342, 49,255 7,521 34,879 1.373 5,482 32,104 20,248 3,564 5,842 341, 49,742 7,628 35,319 1,350 5,445 31,178 18,369 3,666 5,862 339, 54,376 9,329 37,326 1,552 6,169 27,720 20,593 3,500 8,633 369, 54,425 9,195 37,350 1,603 6,277 30,665 20,753 3,780 9,151 375, 54,284 8,973 37.360 1,580 6,371 30,705 19,974 3,782 9,421 376, 54,054 8,795 37.361 1,572 6,326 29,235 20,568 3,943 8,803 374, 53,587 8,449 37,301 1,556 6,281 35,551 21,326 3,456 10,428 386, 54,257 8,856 37,585 1,553 6,263 30,060 17,799 3,894 8,872 375, 53,709 8,534 37,401 1,527 6,247 29,877 21,005 3,775 9,212 377, 53,812 8,871 37,114 1,532 6,295 27,826 20,503 3,900 8,756 374, 8,110 1,295 5,390 207 1,218 16,232 5,091 431 1,402 87, 7,865 1,229 5,275 240 1,121 13,816 5,338 442 887 83, 7,847 1,204 5,253 232 1,158 14,614 5,200 436 922 83, 7,931 1,208 5,396 213 1,114 14,951 5,160 438 972 83, 8,873 2,307 5,361 271 934 9,155 5,598 436 3,068 83 j 8,829 2,315 5,347 280 887 10,426 5,329 450 3,591 85, 9,065 2,455 5,431 280 899 11,277 5,014 444 3,923 87 j 8,973 2,444 5,363 270 896 11,146 4,244 467 3,209 85. 8,780 2,318 5,351 275 836 13,289 5,651 438 4,189 91 j 9,288 2,650 5,540 275 823 9,414 4,239 448 2,833 84 j 9,098 2,574 5,443 272 809 9,996 4,662 434 3,436 85. 9,109 2,844 5,135 277 853 9,821 5,130 442 3,285 85; 41,592 6,278 29,810 1,128 4,376 20,627 11,875 2,887 5,842 262, 41,378 6,261 29,667 1,133 4,317 18,654 13,568 3,210 5,051 259! 41,408 6,317 29,626 1,141 4,324 17,490 15,048 3,128 4,920 257; 41,811 6,420 29,923 1,137 4,331 16,227 13,209 3,228 4,890 255; 45,503 7,022 31,965 1,281 5,235 18,565 14,995 3,064 5,565 285 45,596 6,880 32,003 1,323 5,390 20,239 15,424 3,330 5,560 289 45,219 6,518 31,929 1,300 5,472 19,428 14,960 3,338 5,498 288! 45,081 6,351 31,998 1,302 5,430 18,089 16,324 3,476 5,594 288; 44,807 6,131 31,950 1,281 5,445 22,262 15,675 3,018 6,239 295 44,969 6,206 32,045 1,278 5,440 20,646 13,560 3,446 6,039 290; 44,611 5,960 31,958 1.255 5,438 19,881 16,343 3,341 5,776 292; 44,703 6,027 31,979 1.255 5,442 18,005 15,373 3,458 5,471 289; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 a 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 148,574100,871 6,463 5,081 24,032 851 829 2,512 7,935 131,598 53,497 56,316 14,865 1,647 4,775 ..............July 7 141,186100,266 6,017 3,396 20,398 715 731 2,415 7,248 132,058 53,314 56,764 14,970 1,614 4,859 ........................14 140,680 98,066 5,812 4,907 20,525 651 716 2,402 7,601 132,318 53,303 56,859 15,034 1,627 4,968 ........................21 139,736 97,285 6,158 3,901 20,844 621 762 2,368 7,797 132,932 53,140 57,172 15,276 1,601 5,197 ........................28 1972 140,989100,936 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 7 146,084105,671 6,137 2,851 20,698 667 753 2,691 6,616 149,233 57,643 64,895 18,633 2,327 5,257 ........................14 147,987103,273 6,698 5,589 20,164 639 677 2,819 8,128 149,179 57,735 64,847 18,582 2,265 5,266 ........................21 146,201 102,358 6,877 5,721 20,034 694 902 2,886 6,729 149,658 57,844 65,476 18,308 2,233 5,306 ........................28 157,679108,396 6,806 4,345 24,531 920 1,175 3,157 8,349 149,337 58,014 65,242 18,033 2,261 5,292 .............July 5* 146,907105,800 6,317 3,237 20,729 846 958 2,773 6,247 149,874 58,003 65,645 18,090 2,323 5,322 ........................12* 148,811 104,317 5,887 6,321 21,690 728 1,038 2,898 5,932 150,883 57,983 66,489 18,196 2,442 5,273 ........................19* 145,194102,644 5,895 5,326 20,395 694 893 2,988 6,359 151,358 57,939 66,913 18,170 2,482 5,363 ........................26* New York City 1971 43,635 22,676 496 1,328 11,420 492 681 1,738 4,804 22,431 5,278 12,108 1.403 828 2,688 .............July 7 39,024 22,422 464 706 8,786 386 563 1,724 3,973 22,634 5,236 12,305 1.404 779 2,751 ........................14 40,431 21,977 414 1,282 9,706 346 559 1,670 4,477 22,723 5,233 12,283 1,439 795 2,808 ....................,.21 40,851 22,049 406 914 9,997 322 603 1,652 4,908 23,010 5,211 12,311 1,568 779 2,953 ........................28 1972 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 45,187 24,397 473 637 11,328 536 1,039 2,290 4,487 25,140 5,745 13,446 1,957 1,088 2,814 .............July 5* 38,053 22,596 452 630 8,397 460 812 1,945 2,761 25,407 5,732 13,578 2,075 1,115 2,824 ........................12* 39,529 22,455 366 1,307 9,415 385 858 2,039 2,704 25,846 5,724 13,924 2,112 1,225 2,778 ........................19* 38,853 22,375 294 1,118 8,863 362 748 2,107 2,986 25,815 5,714 13,758 2,144 1,249 2,865 ........................26* Outside New York City 1971 104,939 78,195 5,967 3,753 12,612 359 148 774 3,131 109,167 48,219 44,208 13,462 819 2,087 ............July 7 102,162 77,844 5,553 2,690 11,612 329 168 691 3,275 109,424 48,078 44,459 13,566 835 2,108 ........................14 100,249 76,089 5,398 3,625 10,819 305 157 732 3,124 109,595 48,070 44,576 13,595 832 2,160 ........................21 98,885 75,236 5,752 2,987 10,847 299 159 716 2,889 109,922 47,929 44,861 13,708 822 2,244 ........................28 1972 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 ........................21 105,996 79,600 6,382 4,781 10,813 325 138 848 3,109 124,471 52,102 51,982 16,365 1,142 2,482 ........................28 112,492 83,999 6,333 3,708 13,203 384 136 867 3,862 124,197 52,269 51,796 16,076 1,173 2,478 .............July 5* 108,854 83,204 5,865 2,607 12,332 386 146 828 3,486 124,467 52,271 52,067 16,015 1,208 2.498 .......................12* 109,282 81,862 5,521 5,014 12,275 343 180 859 3,228 125,037 52,259 52,565 16,084 1,217 2,495 ........................19* 106,341 80,269 5,601 4,208 11,532 332 145 881 3,373 125,543 52,225 53,155 16,026 1,233 2.498 ........................26* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ AUGUST 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 11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed io Total to to foreign justed 9 IPC’s others bran­ ches Large Banks— Total 1971 July 7...................... 21,656 376 1,305 16,079 3,990 26,055 183,223 260,035 82,602 28.491 17,423 11,068 2,083 14...................... 20,823 1,697 1,075 15,417 3,988 26,008 181,804 257,660 84,922 29,252 17,991 11,261 1,730 21...................... 20,137 1,382 1.014 15,484 4,006 25,963 180,897 256,088 83,144 29.492 18,085 11,407 1,879 28...................... 20,073 642 1.015 14,976 4,012 25,983 180,734 255,872 83,813 30,233 18,383 11,850 1,505 1972 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 28,116 203,132 284,028 91,529 35,452 22,280 13,172 1,740 28...................... 28,934 383 1,611 15,378 4,162 28,166 203,082 283,145 91,211 35,903 22,622 13,281 1,442 July 5*.................... 30,696 420 1,518 14,147 28,359 205,311 285,123 93,252 35,685 22,499 13,186 824 12*.................... 29,362 58 1,647 14,796 28,350 206,386 286,339 92,881 36,358 22,976 13,382 1,375 19*.................... 29,495 47 1,638 14,401 28,281 204,750 284,040 90,923 37,047 23,518 13,529 974 26*.................... 28,653 593 1,543 14,623 4,159 28,354 204,569 284,185 91,647 37,704 23,936 13,768 1,336 New York City 1971 July 7...................... 6,092 204 6,936 1.173 6.733 43,622 57,055 14,655 10,029 6,720 3,309 1,500 14...................... 5,854 790 204 6,673 1.174 6.733 43,080 56,151 15,716 10,351 7,043 3,308 1,264 21...................... 5,240 340 206 6,523 1,188 6,713 42,389 55,050 14,829 10,499 7,040 3,459 1,186 28...................... 5,237 65 200 6,349 1,194 6,694 42,397 54,940 14,989 10,811 7,091 3,720 1,016 1972 June 7...................... 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 July 5*.................... 7,471 413 4,658 1,218 7,165 46.705 60,222 19,933 12,279 8,284 3,995 553 12®.................... 6,749 411 5,248 1,218 7,161 46,623 60,429 19,612 12,594 8,432 4,162 1,013 19*.................... 6,250 447 4,855 1,213 7,158 46,214 59,806 18,811 13,061 8,812 4,249 653 26*.................... 6,300 160 373 5,160 1.224 7,135 45,945 59,714 19,051 13,129 8,707 4,422 1,051 Outside New York City 1971 July 7. 15,564 376 1,101 9,143 2.817 19,322 139,601 202,980 67,947 18,462 10,703 7,759 583 14. 14,969 907 871 8,744 2,814 19,275 138,724 201,509 69,206 18,901 10,948 7,953 466 21 . 14,897 1,042 808 8,961 2.818 19,250 138,508 201,038 68,315 18,993 11,045 7,948 693 28. 14,836 577 815 8,627 2,818 19,289 138,337 200,932 68,824 19,422 11,292 8,130 489 1972 June 22,077 109 1,091 9,970 2,932 21,075 154,501 221,902 71,375 23,484 14,153 9,331 299 22.499 37 1,145 10,019 2.936 21,045 155,181 222,736 72,816 23,436 14,177 9,259 314 21,912 20 1,139 10,089 2.936 21,020 156,907 223,666 71,670 23,401 14,093 9,308 376 22.500 383 1,181 9,966 2,938 21,083 157,160 223,614 72,313 23,647 14,323 9,324 467 July 5*. 23,225 420 1,105 9,489 2,941 21,194 158,606 224,901 73,319 23,406 14,215 9,191 271 12*. 22,613 58 1,236 9,548 2,930 21,189 159,763 225,910 73,269 23,764 14,544 9,220 362 19*. 23,245 47 1,191 9,546 2,929 21,123 158,536 224,234 72,112 23,986 14,706 9,280 321 26*. 22,353 433 1,170 9,463 2,935 21,219 158,624 224,471 72,596 24,575 15,229 9,346 285 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 P n er o s n o b n a a n l k f i f n i a n n a c n e c , i a e l t c i . n stitutions: $ 60 6 7 I I n nc c l l u u d d e e s s s U e . c S u . r i G ti o es v t s , o a ld n d u f n o d r e e r ig a n g r b e a e n m k e d n e ts p o to si t r s e , p n u o rc t h s a h s o e w . n separately. 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 i o All demand deposits except U.S. Govt, and domestic commercial banks, less cash items in process of collection. i 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

AUGUST 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 July July July July June July June May II I IV 2nd 1st 26 19 12 5 28 half half Durable goods manufacturing: Primary metals................................. 2,046 2,056 2,049 2,068 2,093 -47 -33 52 30 54 -162 -282 84 Machinery......................................... 4,207 4,241 4,202 4,172 4,215 -8 -55 -103 -74 -91 -600 -831 -165 Transportation equipment.............. 2,189 2,226 2,257 2,353 2,359 -170 -60 -117 -317 14 -101 -77 -303 Other fabricated metal products... 1,702 1,715 1,708 1,697 1,711 -9 21 -24 -22 17 -259 -389 -5 Other durable goods........................ 2,785 2,797 2,846 2,812 2,826 -41 76 32 185 146 -328 -317 331 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,676 2,725 2,685 2,745 2,625 51 58 -22 -41 -227 205 498 -268 Textiles, apparel, and leather.......... 2,933 2,939 2,946 2,902 2,855 78 88 137 281 281 -273 -304 562 Petroleum refining........................... 975 962 975 1,008 989 -14 -29 -5 -88 -97 56 52 -185 Chemicals and rubber..................... 1,981 2,032 2,046 2,050 2,128 -147 -39 21 -23 -103 -437 -592 -126 Other nondurable goods................. 1,670 1,630 1,649 1,681 1,654 16 -23 -50 -93 -75 -96 -36 -168 Mining, including crude petroleum and natural gas........................... 3,645 3,611 3,603 3,619 3,604 41 -76 -1 -66 -137 -17 187 -203 Trade: Commodity dealers................. 1,209 1,178 1,181 1,151 1,178 31 -184 -89 -304 -194 460 532 -498 Other wholesale....................... 4,498 4,491 4,511 4,518 4,492 6 77 2 111 -52 132 524 59 Retail........................................ 4,716 4,612 4,517 4,516 4,519 197 9 66 138 259 -340 -259 397 Transportation..................................... 5,463 5,530 5,593 5,600 5,646 -183 77 -117 33 -33 -78 -324 Communication................................... 1,601 1,598 1,572 1,630 1,435 166 151 -62 195 -74 -249 -225 121 Other public utilities........................... 2,794 2,843 2,824 2,795 2,699 95 40 -30 247 -274 176 525 -27 Construction........................................ 4,336 4,312 4,329 4,304 4,298 38 171 68 325 156 77 183 481 Services................................................. 8,470 8,539 8,576 8,600 8,604 -134 325 -81 358 372 276 289 730 All other domestic loans..................... 5,937 5,850 5,851 5,861 5,696 241 -348 98 -134 176 305 610 42 Bankers’ acceptances........................... 1,342 1,408 1,424 1,449 1,441 -99 -183 16 -300 -553 696 1,158 -853 Foreign commercial and industrial loans.............................................. 3,456 3,457 3,428 3,421 3,397 59 19 63 83 89 254 578 172 Total classified loans........................... 70,631 70,752 70,772 70,952 70,464 167 82 -146 524 -346 -303 1,500 178 Total commercial and industrial loans. 85,188 85,314 85,267 85,442 184,953 235 233 -97 1,136 47 335 1,614 1,183 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 July June May Apr. Mar. Feb. Jan. Dec. Nov. II I IV III 1st 26 28 31 26 29 23 26 29 24 half Durable goods manufactur­ ing: Primary metals................... 1,354 1,369 1,381 1,367 1,342 1,330 1,315 1,362 1,406 27 -20 -162 -62 7 Machinery.......................... 1,935 1,958 1,986 2,005 2,072 2,001 2,179 2,285 2,396 -114 -213 -194 -57 -327 Transportation equipment. 1,244 1,360 1,370 1,389 1,493 1,553 1,605 1,620 1,592 -133 -127 -69 130 -260 Other fabricated metal products......................... 711 677 685 695 688 683 699 713 707 -11 -25 -62 -39 -36 Other durable goods.......... 1,130 1,183 1,144 1,163 1,145 1,118 1,117 1,135 1,162 38 10 -79 -19 48 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,034 931 947 909 912 937 987 1,021 1,010 19 -109 36 17 -90 Textiles, apparel, and leather............................. 701 666 646 667 651 580 567 576 577 15 75 -31 10 90 Petroleum refining............. 685 694 726 714 757 818 848 892 867 -63 -135 35 -34 -198 Chemicals and rubber....... 1,200 1,234 1,245 1,238 1,226 1,315 1,330 1,441 1,528 8 -215 -344 -32 -207 Other nondurable goods.. 860 875 930 960 980 973 1,010 1,024 1,018 -105 -44 6 -2 -149 Mining, including crude pe­ troleum and natural gas. 2,723 2,667 2,785 2,870 2,872 2,891 2,927 3,039 2,998 -205 -167 105 -56 -372 Trade: Commodity dealers.. 110 109 128 125 125 132 119 115 104 -16 10 6 12 -6 Other wholesale........ 905 902 912 889 927 883 915 893 860 -25 34 46 11 9 Retail......................... 1,345 1,297 1,332 1,328 1,340 1,352 1,349 1,383 1 ,429 -43 -43 -88 57 -86 Transportation....................... 4,243 4,314 4,285 4,400 4,383 4,314 4,397 4,440 4,448 -69 -57 -131 -26 -126 Communication..................... 517 502 427 460 440 417 432 427 427 62 13 7 -48 75 Other public utilities............. 1,471 1,423 1,218 1,161 1,160 1,191 1,305 1,316 1,292 263 -156 44 178 107 Construction.......................... 1,392 1,404 1,371 1,376 1,417 1,327 1,257 1,244 1,255 -13 173 52 5 160 Services................................... 3,747 3,706 3,555 3,593 3,657 3,545 3,542 3,488 3,438 49 169 141 89 218 All other domestic loans .... 1,549 1,465 1,787 1,805 1,703 1,602 1,545 1,431 1,413 -238 272 41 141 34 Foreign commercial and in­ dustrial loans.................. 2,028 2,033 1,995 1,981 1,939 1,898 1,995 2,076 1,956 94 -137 184 -43 Total loans............................. 30,884 130,769 30,855 31,095 31,229 30,860 31,440 31,921 31,883 -460 -692 -457 275 -1,152 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 □ AUGUST 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, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 1970—June................................................................................ 17.1 85.3 49.0 1.6 9.6 162.5 17.0 88.0 51.4 1.4 10.0 167.9 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 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................................................................................. '18.1 '93.9 '59.1 1.3 10.6 '183.1 17.9 97.1 59.9 1.4 10.3 187.2 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 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................................................................................. 13.9 '56.1 25.2 1.2 5.9 102.1 Apr.................................................................................. 14.3 56.9 27.0 1.2 5.9 105.4 May................................................................................ 13.7 56.2 25.4 1.2 5.7 102.1 June?............................................................................... 14.1 57.1 25.8 1.3 5.9 104.2 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 Country.............................. 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

AUGUST 1972 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 33 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1972—Apr. 5.......... 2,806 1,737 1,069 1,620 358 1,262 12.......... 2,750 1,695 1,055 1,624 363 1,261 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 1.674 362 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 July 5.......... 2,238 1,298 940 1,666 336 1 ,330 12.......... 2,217 1,347 870 1,662 331 1,331 19.......... 2,304 1,384 920 1,710 368 1 ,342 26.......... 2,327 1,426 901 1 ,687 340 1,347 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 Other i 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—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 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 ^ Dec. 31,103 495 10.923 1.478 18,207 1972—Jan.. 32,167 505 11,922 1,582 18,158 7,601 2,917 2,157 761 75 253 4,356 2,558 1,584 3,458 Feb. 32,579 525 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 18,276 7,985 3,083 2,246 837 143 263 4,496 2.597 1,774 3,613 Apr. 32,814 532 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 June 33,482 542 12,325 1,429 19,186 7,069 2,817 2,082 735 73 251 3,927 2,657 1,569 2,843 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 □ AUGUST 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate Effective date Rate Effective date Effective date Rate 192 9 5*4-6 1956—Apr. 13.... 3% 1969—Jan. 7......... 7 Dec. 6. 5*4-5%- Aug. 21---- 4 Mar. 17......... 7*4 5*i* 193 0 3 Vi-6 June 9.......... 8 Vi 27, 5 *4-5 Vi* 193 1 2%-5 1957—Aug. 6..., 4Vi 31 5*4* 193 2 3*4-4 1 1 9 9 3 3 1 4 9 — 4 3 7 (Nov.) 1 1 V Vi i-4 1 1 9 9 5 5 8 9 — — J A S M a e p n a p r . y t . . - --- 2 1 1 2 1 2 8 1 - . . - . . . - . . . - . 4 4 3 4 V * 4 i 1970— N D S M e e o a p c v r t . . . . 2 2 2 1 2 1 3 5 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 6 7 8 H V ^ 4 1972—Jan. 2 3 1 1 4 3 7 4 4 4 5 5 3 V - / 5 , 8 4 i i - - - / 4 5 5 8 * * - * 5 4 4 V * * 4* Sept. 1---- 5 Feb. 28 4%-4*4- Effective date 1960—Aug. 23... 4Vi 1971—Jan. 1 1 6 5 8 . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 1 * / 4 4 Mar. 2 1 3 3 4 43 * 4 4 i- * * 4 4 ^ * 4* 1 1 1 9 9 9 4 4 5 7 8 0 — — — D A Se e u p c g t . . . i 1 . 22, , 2 2 l * 3/4 4 1 1 9 9 6 6 5 6 — — J D A M u e u n a c g r e . . . 1 2 1 6 0 9 6 . . . . . . . . . . . . 5 5 5 6 * * 4 4 F M e a b r . . 1 1 1 1 6 9 .. . . . . . . . . . . . . . . 5 5 5 * % * 4 4-5*4 A M p a r y . 2 1 7 3 7 5 1 4 4 5 5 5 3 * * * * / 4 4 _ - 5 * * 5 - - i * 4 / 5 4 8 7 _ / 5 8 * -5 4 1951—J O D a c e n t c . . . 1 1 8 7 9 . . . . . . 2 2 3 * % 4 1967— N J M a o n a v . r . . 2 2 2 6 7 0 -2 . . 7 . . . . 5 5 6 * * 4 4-5% 1971— J A M u p l a y r y . 2 1 6 7 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 6 * V *4 i i - - 6 51/2 June 2 2 3 1 9 6 2 0 5 5 5 5 * - - 5 5 - * 5 V 4 i 4 / * 8 * - - 5 5 3 3 / / 8 8 1953—Apr. 27.. 3*4 1968—Apr. 19... 6*4 O N c o t v . . 20 1 . . . . . . . . . . . . . . . . . . . 5 5* ! 4 4*-5fc July 10 3 . , 5 5 * * 4 4 * *- - 5 5 3 3 / / 8 s - Sept. 25... 6 -6*4 4......... 5*4*-5% 5*4 1954—Mar. 17.. 3 N D o ec v . . 1 2 3 . . . . . . 6 6 1 * / 4 4 2 8 2 . . . . . . . . . . . . . . . . . . 5 5 * % 4* -5%* 1 31 7 5 5 % *4 * * - - 5 5 * % 4 - 1955—Aug. 4. . 3*4 18... 6% 29.......... 5i/4-5i/2* 5*4 Oct. 14. . 3*4 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

AUGUST 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance U.S. Government securities (taxable)4 Prime CO. Prime Period p co a m pe l r . p p l a a p ce e d r b a a c n c k e e p r t s ­ ’ F f e u d n e d r s al 3-month bills s 6-month bills5 9- to 12-month issues 4- to 6- directly, ances, rate3 3- to 5months1 m 3- o t n o t h 6 s - 2 90 days1 n R ew at e is o su n e M y a ie r l k d et n R ew at e is o su n e M y a ie r l k d et k b e i 1 t l l - y y ( i m e e a ld a r r ) ­ 5 Other6 is y s e u a e r s 7 1964............................ 3.97 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1965............................ 4.38 4.27 4.22 4.07 3.954 3.95 4.055 4.05 4.06 4.09 4.22 1966............................ 5.55 5.42 5.36 5.11 4.881 4.85 5.082 5.06 5.07 5.17 5.16 1967............................ 5.10 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 1968............................ 5.90 5.69 5.75 5.66 5.339 5.33 5.470 5.48 5.45 5.62 5.59 1969............................ 7.83 7.16 7.61 8.22 6.677 6.64 6.853 6.84 6.77 7.06 6.85 1970............................ 7.72 7.23 7.31 7.17 6.458 6.42 6.562 6.55 6.53 6.90 7.37 1971............................ 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.51 4.67 4.75 5.77 1971—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 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 July................. 4.85 4.72 4.73 4.55 4.059 3.97 4.583 4.49 4.91 4.89 5.86 Week ending— 1972—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 5.6£ 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 8.......... 4.88 4.70 4.75 4.61 4.138 4.05 4.688 4.54 5.00 5.01 5.86 15.......... 4.88 4.75 4.75 4.62 4.102 4.03 4.605 4.54 4.94 4.97 5.85 22.......... 4.88 4.75 4.75 4.47 3.948 3.92 4.455 4.46 4.86 4.84 5.84 29.......... 4.80 4.63 4.68 4.54 4.047 3.93 4.585 4.46 4.86 4.79 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 □ AUGUST 1972 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings / Period United and local rating group price ratio price ratio States Total i (long­ 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—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 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 July.................................... 5.57 5.50 5.23 5.78 7.66 7.21 8.23 7.39 8.00 7.80 6.99 2.90 Week ending— 1972—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 8............................. 5.61 5.51 5.20 5.80 7.64 7.20 8.19 7.37 7.98 7.77 6.98 2.87 15............................. 5.59 5.53 5.25 5.80 7.66 7.20 8.20 7.38 7.99 7.78 6.99 2.91 22............................. 5.56 5.50 5.25 5.75 7.67 7.20 8.25 7.40 8.00 7.81 7.00 2.92 29............................. 5.54 5.45 5.20 5.70 7.68 7.22 8.27 7.41 8.00 7.82 7.00 2.89 Number of issues2....................... 8 20 5 5 r 121 20 30 Ml r30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Govt.: Averages of daily figures for bonds maturing or callable in 10 years arately. Because of a limited number of suitable issues, the number or more. (2) State and local govt.: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are 23, 1967, Aaa-rated railroad bonds are no longer a component of the from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios 2 Number of issues varies over time; figures shown reflect most recent are based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios Note.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Bonds: Monthly and weekly yields are computed as follows: (1) U.S. adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com­ companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5% hours per day, or 21 Vi hours per week. homebuilders; and permanent loans that are coupled with construction In recent years shorter days and/or weeks have cut total weekly trading loans to owner-builders. Series beginning 1965, not strictly comparable to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- with earlier data. See also the table on Home-Mortgage Yields, p. A-55. Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- 22.5; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer­ (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex­ change ( G l U o o . n v S g t . . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l 1 NYSE AMEX term) 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—Jul y 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 27.63 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 July....... 69.23 83.1 65.6 107.21 119.98 42.00 53.47 59.21 65.13 48.45 36.02 75.41 26.97 14,450 3,546 Week ending— 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 8 68.85 83.1 65.9 108.33 121.24 42.67 54.01 59.96 65.98 49.81 36.22 76.43 27.37 13,819 4,047 15 69.07 82.8 65.6 107.08 119.80 41.94 53.67 59.23 65.13 48.15 36.03 75.73 27.06 13,873 3,510 22 69.30 83.1 65.5 106.06 118.67 41.46 53.18 58.56 64.33 47.81 35.97 74.59 26.75 15,395 3,271 29 69.52 83.5 65.3 107.54 120.40 42.08 53.27 59.27 65.25 48.44 35.94 75.17 26.83 15,251 3,357 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n e t r t ) ­ c F c h e ( e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c r p ( a o e p r t i n a e i c n o t r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & 1 s M (y a e t a u r r s i ) ty L c r p ( a o e p r t i n a e i c t o n 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 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 June ........... 7.38 .74 26.3 73.7 37.5 27.3 7.38 .74 24.3 73.9 32.9 23.9 July............. 7.51 .90 26.3 74.5 36.8 27.1 7.50 .75 24.2 74.5 31.6 23.2 Aug............. 7.60 .84 26.2 73.9 36.5 26.5 7.58 .76 24.5 74.2 31.9 23.5 Sept............. 7.67 .97 25.8 75.3 35.1 25.9 7.63 .79 24.2 74.5 30.7 22.5 Oct............ 7.68 .97 26.4 75.5 35.2 26.3 7.62 .79 24.1 74.2 31.2 22.9 Nov............. 7.65 .87 26.7 75.4 36.7 27.3 7.56 .79 24.3 74.6 31.6 23.2 Dec............. 7.62 .93 26.6 74.5 36.4 26.5 7.51 .80 24.6 74.6 32.5 23.9 1972—Jan.............. 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............. 7.38 .84 27.2 76.2 37.7 28.2 7.31 .77 25.1 75.6 32.7 24.4 Apr............. 7.38 .83 27.2 76.0 38.3 28.5 7.30 .78 25.2 75.3 33.6 24.9 May r.......... 7.40 .84 27.2 76.2 38.2 28.5 7.33 .77 25.2 75.4 33.3 24.6 June............ 7.40 .87 27.2 76.3 37.4 27.9 7.36 .76 25.4 75.9 33.8 25.1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ AUGUST 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—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 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 8,472 7,478 994 7,200 924 241 58 37 12 1,141 1,296 403 1,930 June............. 7,792 7,510 244 38 386 1,845 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 i o o d f l ( d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t 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 ( b f m a d i l o l a l l i n l o c a n e r s s ) lars)1 45.1 47.8 7.0 4,250 1971—June. 4,720 9.6 14.4 34.9 20.1 8.6 12.2 July....................... 45.2 46.7 8.1 4,190 July.. 4,790 8.3 12.2 29.1 25.2 11.0 14.1 44.6 48.0 7.4 4,230 Aug.. 4,850 9.3 14.4 35.4 19.6 8.9 12.6 44.2 47.0 8.8 4,160 Sept.. 4,930 8.7 13.1 34.3 20.7 9.9 13.3 45.5 45.2 9.3 4,060 Oct... 4,950 7.5 10.9 28.7 24.4 12.1 16.3 44.6 45.1 10.2 4,000 Nov.. 4,910 7.3 10.7 25.9 26.2 13.1 16.8 35.0 55.7 9.4 7,300 Dec.. 5,400 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 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 34.3 56.3 9.4 5,770 June. 7,510 6.0 9.1 15.9 33.9 22.0 13.2 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

AUGUST 1972 □ 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 .S vt . . S g l a o o t n c a v a d t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i T e e a a t s n b o i n e e e t i r d s a l r v i a l ­ e 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 s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1963............... 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 1964............... 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965 ___ 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966............... 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967............... 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968............... 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969............... 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970................ 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 U S n ta i t t e e s d Sta lo te c a a l nd 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 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-—May r........................... 213,611 10,900 4,454 3,339 3,107 94,385 76,252 18,133 74,541 6,500 16,444 10,841 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 May............................. 229,336 11,128 4,516 3,366 3,246 106,434 83,060 23,374 75,493 7,094 17,441 11,746 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “Other assets.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 SAVINGS INSTITUTIONS □ AUGUST 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— d of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r t i 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 d y 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 r d i 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 3,5.06 9,326 176,183 146,404 11,991 10,911 3,078 3,799 1,602 4,393 1971—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............ 185,431 22,070 2,456 11,691 221,648 188,826 13,257 6,802 5,608 7,155 4,545 11,793 June?.......... 188,864 21,622 2,416 11,869 224,771 192,571 13,588 7,261 5,892 5,459 4,298 11,693 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 t n e o c m e ­ s I m nv e e n s t t s ­ 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 o g n r e t s ­ n t a u o n r t e e d s s c a o t o i t v o p e e s r­ D t e u b re e s n­ co a d u n is n d ­ ts D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 1967, 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968. 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1971--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 June.. 6,075 3,850 118 6,527 1,746 1,721 18,628 18,560 2,145 1,786 6,378 6,118 8,430 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

UGUST 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE >ING ISSUES OF FEDERALLY SPONSORED AGENCIES, JUNE 30, 1972 Cou­ Amount Cou­ Amount pon (millions Agency, and date of issue pon (millions Agency, and date of issue illioi rate of dollars) and maturity rate of dollars) and maturity lollai Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 61A 394 Debentures: 1/3/72- 10/1/73........ 358 m 250 5/11/70 - 9/11/72___ 8.40 400 2/1/72 - 8/1/72.......... 458 5% 310 6/10/70 - 9/11/72.... 7.40 200 4/3/72 - 10/2/72........ 264 8.35 350 11/10/69 - 12/11/72.. 8.00 200 5/1/72- 11/1/72....... 317 5.70 400 10/13/70 - 12/11/72. . 7.20 400 6/1/72- 12/4/72........ 289 4.20 400 11/10/70 - 3/12/73. . . 7.30 450 10/1/70 - 10/1/73. . . 100 7.20 450 12/12/69 - 3/12/73. . . 8.30 250 8.40 300 6/12/61 - 6/12/73.... 4% 146 Federal intermediate 8.40 250 7/10/70 - 6/12/73.... 8.35 350 credit banks 7.10 300 7/12/71 -6/12/73........ 6.75 550 Debentures: 6.35 300 3/10/70 - 9/10/73___ 8.10 300 10/4/71 - 7/3/72. 435 7.65 181 6/10/71 -9/10/73........ 6.13 350 11/1/71 - 8/1/72........ 594 8.00 227 12/10/70 - 12/10/73. . 5.75 500 12/1/71 - 9/5/72___ 593 6.10 250 8/10/71 - 12/10/73.... 7.15 500 1/3/72- 10/2/72........ 439 8.05 265 12/1/71 - 3/11/74___ 5.45 400 2/1/72 - 11/1/72........ 634 7.95 300 4/10/70 - 3/11/74. . .. 7.75 350 3/1/72 - 12/4/72........ 558 6.50 350 8/5/70 - 6/10/74....... 7.90 400 4/3/72 - 1/2/73.......... 514 7« 300 11/10/71 -6/10/74.... 5.70 350 5/1/72-2/1/73.......... 482 6.95 200 9/10/69 - 9/10/74___ 7.85 250 3/2/70 - 3/1/73........ 203 7.75 350 2/10/71 - 9/10/74........ 5.65 300 6/1/72 - 3/1/73.......... 489 7.80 200 5/10/71 - 12/10/74.... 6.10 250 9/1/70-7/2/73.......... 200 6.60 200 9/10/71 - 12/10/74.... 6.45 450 7/1/71 - 1/2/74.......... 212 11/10/70 - 3/10/75. . . 7.55 300 1/4/71 - 7/1/74........ 224 10/12/71 - 3/10/75... 6.35 600 5/1/72 - 1/2/75.......... 240 4/12/71 -6/10/75........ 5.25 500 1/3/72 - 7/1/75.......... 302 10/13/70 - 9/10/75. . . 7.50 350 3/10/72 - 12/10/75. . . 5.70 500 Federal land banks 3/11/71 - 3/10/76........ 5.65 500 Bonds: 7.10 175 6/10/71 -6/10/76........ 6.70 250 6/22/70 - 7/20/72. . . 8.20 442 7.75 150 2/10/72 -6/10/76........ 5.85 450 9/14/56 - 9/15/72... 3K 109 5.30 200 11/10/71 -9/10/76.... 6.13 300 9/22/69 - 9/15/72. .. 8.35 337 6.15 350 6/12/72-9/10/76........ 5.85 500 10/23/72 - 10/23/72. 5J4 200 8.60 140 7/12/71 - 12/10/76___ 7.45 300 7/20/71 - 10/23/72... 6.50 446 7.75 150 2/13/62 - 2/10/77___ 4% 198 7/20/70 - 1 /22/73 . . . 7.95 407 7.15 150 12/10/70 - 6/10/77. . . 6.38 250 2/20/63 - 2/20/73-78 4H 148 5/10/71 -6/10/77........ 6.50 150 4/20/72 - 4/23/73.... 5.20 433 9/10/71 -9/12/77........ 6.88 300 1/20/70 - 7/20/73 .. . 8.45 198 10/12/71 - 12/11/78.. 6.75 300 8/20/73 - 7/20/73.... 7.95 350 6/12/72-9/10/79........ 6.40 300 4/20/70 - 10/22/73. . 7.80 300 12/10/71 - 12/10/79. . 6.55 350 2/20/72 - 2/20/74. . . 4Vi 155 2/10/72 - 3/10/80........ 6.88 250 10/20/70 - 4/22/74.. 7.30 354 6/29/72- 1/29/81........ 6.15 156 10/21/71 - 7/27/74. . 5.85 326 753 1/21/71 - 6/10/81.. .. 7.25 250 4/20/71 - 10/21/74... 5.30 .300 9/10/71 -9/10/81........ 7.25 250 2/20/70 - 1/20/75... 8^ 220 4 6 8 . . . 3 0 0 8 0 0 2 2 2 4 0 5 9 0 0 6 2 3 / / / 1 1 2 1 0 8 / / / 7 7 7 1 1 2 - - -5 6 6 / / / 1 1 1 / 0 0 8 / / 8 8 2 3 2 .. . . . . . . . . . . . . . . . . . . . . . . . . 5 6 6 . . . 7 6 8 5 5 4 2 2 5 0 5 8 0 0 4 2 7 / / /2 2 1 0 0 5 / / / 7 6 7 1 5 2 - - - 7 1 4 / 0 2 /2 / 1 2 1 / 0 7 /7 5 /7 5 5 . . . . . . 4 7 5 . . ^ 2 70 0 4 2 3 2 0 0 5 0 0 11/10/71 -9/12/83.... 6.75 250 4/20/72- 1/20/76... . 6% 300 4/12/71 -6/11/84........ 6.25 200 2/21/66 - 2/24/76... 5.00 123 12/10/71 - 12/10/84. . 6.90 250 7/20/66 - 7/20/76... 5H 150 3/10/72 - 3/10/92___ 7.00 200 10/27/71 - 10/20/77. 6.35 300 6/12/72-6/10/92........ 7.05 200 5/2/66 - 4/20/78.... 5^ 150 7.50 400 2/20/67 - 1/22/79... 5.00 285 8.38 250 2/23/71 -4/20/81.... 6.70 224 8.63 200 4/20/72 - 4/20/82. .. . 6.90 200 not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 FEDERAL FINANCE □ AUGUST 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 i p ss e u c e ia s l Other balance Fiscal year: 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 3,586 197 2 208,596 230,514 1,105 231,619 -23,023 29,131 -1,269 6,795 1,625 19,442 1,362 905 5,849 Half year: 1970—July-Dee. 87,583 104,117 99 104,216 -16,633 18,240 -21 1,807 157 16,257 54 -882 -453 1971—Jan.-June 100,809 106,201 1,008 107,209 6,400 8,971 -326 4,809 647 3,189 656 303 4,039 July-Dee. 93,100 110,608 948 111,557 -18,377 26,001 -1,119 2,803 523 21,556 973 80-2,122 1972—Jan.-June 115,496 119,906 157 120,062 -4,646 3,130 -150 3,992 1,102 -2,114 389 835 7,971 Month: 1971—Jun e 22,499 19,726 251 19,976 2,523 1,285 -551 1,059 -17 -309 1,835 338 -043 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 June........ 25,537 23,255 -310 22,945 2,591 -651 -370 2,975 -628 -3,368 417 1,877 3,070 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 i y es S is p G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t s c e s i s a : 3 l E p T h u q b o e b u y t l l a d a i l l c s: s c p p o G r o N r i n o p v o s v s a w o . t t — . r e - e 6 d Fiscal year: 1969........................ 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 1970....................... 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 1971......................... 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 1972........................ 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 Calendar year: 1970........................ 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 1971......................... 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 39,860 Month: 1971—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 40,632 May............. 2,144 7,420 136 9,700 427,912 11,263 86,561 24,652 825 327,137 40,426 June............. 2,344 7,934 139 10,117 427,260 10,894 89,539 24,023 825 323,770 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

AUGUST 1972 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a t t a i x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Employment 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 con ta t x ri e b s u a ti n o d n s i i e n U m s n u p - r l . . O n r t e h e ­ t er t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i p e s ­ t c s . 3 t P a ro a x y l e l ­ s e S m el p f l - . ceipts2 Fiscal year: 196 9 187,78470,18227,25810,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 197 0 193,74377,41626,23613,24090,41235,037 2,20837,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 197 1 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,59683,28225,683 14,141 94,82434,797 2,76044,087 2,032 4,377 3,43453,929 15,484 3,285 5,412 3,624 Half year: 1970—July-Dee. 87,58437,465 5,569 56542,46912,744 1,467 17,768 133 1,348 1,57620,826 8,153 1,317 1,537 2,006 1971—Jan.-June r100,808r39,02518,69313,957 M3,761 17,576 r2,06921,983 1,815 2,325 1,630 27,753 8,462 1,274 2,198 1,853 July-Dee. 93,18038,449 5,589 57443,465 13,262 1,44819,643 155 1,518 1,67322,989 8,961 1,838 2,395 1,718 1972—Jan.-June 115,41644,83320,09413,56751,35921,535 1,31224,444 1,877 4,736 1,761 30,940 6,523 1,447 3,017 1,906 Month: 1971—Jun e *•22,499 r6,679 3,681 505 r9,855 6,684 236 3,311 115 57 >•282*•3,767 1,510 250 352 318 July........ 13,198 6,221 490 191 6,519 1,163 284 2,987 205 272 3,464 1,532 227 319 258 Aug........ 15,652 6,706 306 91 6,920 688 236 5,049 660 287 5,996 1,482 244 311 245 Sept........ 19,710 5,513 3,755 76 9,192 4,505 198 3,299 152 60 273 3,784 1,490 363 263 312 Oct......... 12,462 5,941 396 55 6,282 1,111 375 2,592 116 274 2,983 1,412 334 391 324 Nov........ 14,945 7,245 264 55 7,455 730 218 3,408 424 288 4,120 1,656 343 566 293 Dec......... 17,213 6,823 379 106 7,096 5,064 138 2,308 " ‘3 52 278 2,642 1,389 329 545 286 1972—Ja.............n 17,596 6,627 4,318 110,944 1,228 158 3,044 124 153 295 3,615 743 259 621 344 Feb.......... 15,239 7,581 682 1,416 6,846 878 212 4,774 147 545 274 5,740 819 224 596 347 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 June......... 25,537 8,102 3,708 66811,142 8,324 185 3,681 64 111 281 4,137 1,370 250 364 135 Budget outlays4 Period Total f ti 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 c e h A t c u u g r r l e ­ i­ so N u u r r e a r a c ­ t l ­ es m t C r a a o e n n r m d c s e p ­ . d h e C o m a v u o n e u s m l d n i o n . - p g . E p m t o d a i n w u o a 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 t l ­ . t t I g i r n o a o a t c n n v r ­ a t s s . - ­ 5 Fiscal year: 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 2,884 3,381 5,312 2,713 11,283 3,382 8,650 70,164 9,787 19,608 3,970 -7,376 1972r.................................. 231,619 78,150 3,659 3,424 7,276 3,754 11,055 4,230 10,200 81,492 10,748 20,607 4,888 -7,864 1973e6................................ 7246,257 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—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 1,475 1,661 679 1,152 5,475 1,705 4,906 37,454 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 1972—Jan.-June................ 120,063 42,396 1,906 1,647 1,278 1,801 5,025 2,048 5,845 43,362 5,745 10,556 2,494 -4,042 Month: 1971—June........................ 19,975 8,139 -26 245 115 559 1,162 394 1,191 7,586 874 1,615 413 -2,286 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 June....................... 22,945 8,899 358 294 335 515 1,211 519 1,431 8,657 911 1,728 495 -2,408 1 Old-age, disability, and hospital insurance, and Railroad Retirement 6 Estimates presented in the Jan. 1973 Budget Document. Breakdowns do accounts. not add to totals because special allowances for contingencies, Federal pay 2 Supplementary medical insurance premiums and Federal employee increase (excluding Department of Defense), and revenue sharing, totaling retirement contributions. $6,275 million for fiscal 1973, are not included. 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ 7 On June 5, 1972, the administration revised the Budget estimates— ous receipts. increasing total outlays to $250.0 billion; revised figures for the functional 4 Outlays by functional categories are published in the Monthly breakdown are not available. Treasury Statement (beginning April 1969). Monthly back data (beginning July 1968) are published in the Treasury Bulletin of June 1969. Note.—Half years may not add to fiscal year totals due to revisions in 5 Consists of government contributions for employee retirement and series which are not yet available on a monthly basis. interest received by trust funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES □ AUGUST 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l s a i s c l Marketable Con­ Nonmarketable i S ss p u e e c s i a 4 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n l r e d t­ s Total 3 bo S in n a g v d s ­ s & notes 1941_Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 52.5 78.1 1971—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 July. 432.4 339.6 257.7 95.2 113.4 49.1 2.3 79.5 56.7 91.0 * 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 io 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 a v d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 i O m t n o v t i r h s e s c e s . ­ r 2 funds bonds securities 1939—Dec................ 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1965—Dec................ 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec................ 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec................ 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec................ 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 1969—Dec................ 368.2 89.0 57.2 222.0 56.8 2.9 7.1 13.3 25.4 51.8 29.1 11.4 24.1 1970—Dec................ 389.2 97.1 62.1 229.9 62.7 2.8 7.0 10.5 23.1 52.1 29.8 20.6 21.4 1971—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 r............ 427.9 109.1 71.6 247.2 60.8 2.8 6.3 12.0 21.4 55.8 21.4 49.4 17.4 June.............. 427.3 111.5 71.4 244.4 59.9 2.7 6.2 10.4 21.8 56.0 20.8 50.0 16.7 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

AUGUST 1972 a 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 May 31........................................................ 261,924 126,617 98,094 28,523 89,005 26,852 9,364 10,086 257,202 121,944 94,648 27,296 89,004 26,852 9,343 10,059 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 May 31................................................ 20,438 3,003 2,255 748 7,738 4,895 2,346 2,456 19,868 2,350 1,671 679 7,739 4,906 2,358 2,514 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 May 31................................................ 71,607 40,245 31,291 8,954 24,311 5,818 621 612 June 30................................................ 71,356 40,085 31,258 8,827 24,109 5,913 627 622 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 May 31................................................ 169,879 83,369 64,548 18,821 56,956 16,139 6,397 7,018 June 30................................................ 165,978 79,509 61,719 17,790 57,156 16,033 6,358 6,923 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—May 31......................................... 48,076 15,044 5,911 9,133 26,675 5,723 451 183 June 30........................................ 47,028 14,337 6,335 8,002 26,326 5,688 500 178 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 May 31........................................ 2,747 456 249 207 1,214 493 298 287 June 30......................................... 2,668 388 175 213 1,192 502 298 287 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 May 31......................................... 5,478 644 287 357 1,375 1,027 1,352 1,082 June 30........................................ 5,340 525 208 317 1,362 1,027 1,356 1,068 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 May 31........................................ 5,717 4,537 3,425 1,112 971 181 19 9 June 30........................................ 4,182 3,010 1,945 1,065 1,020 135 10 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—May 31........................................ 3,006 803 458 345 1,276 607 144 176 June 30........................................ 2,849 675 359 316 1,250 608 140 175 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—May 31........................................ 9,987 4,934 4,054 880 2,184 765 838 1,265 June 30......................................... 10,314 5,298 4,441 857 2,223 749 773 1,270 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—May 31........................................ 94,868 56,951 50,164 6,787 23,261 7,343 3,295 4,016 June 30......................................... 93,597 55,276 48,256 7,020 23,783 7,324 3,281 3,936 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 736 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 466 nonfinancial corporations and 487 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 504 State and local govts. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks “All others,” a residual, includes holdings of all those not reporting but for other groups are based on Treasury Survey data. Of total mar­ in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 U.S. GOVERNMENT SECURITIES □ AUGUST 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—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 2,115 1,598 271 219 26 759 99 725 532 482 2,646 1,905 438 268 36 988 117 906 634 659 Nov.............................. 2,691 1,668 523 418 81 906 157 940 687 547 Dec............................... 3,139 2,317 497 266 58 1,006 214 1,190 730 569 1972—Jan................................ 3,191 2,268 571 309 44 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 June............................. 2,452 2,001 257 161 34 545 355 759 793 411 Week ending— 1972—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....................... 2,819 2,408 232 148 32 671 402 819 927 417 July 5....................... 2,926 2,601 199 107 19 609 401 932 983 327 12....................... 2,121 1,866 146 88 21 416 309 707 689 419 19....................... 2,286 1,938 165 156 26 588 367 709 622 366 26....................... 2,080 1,880 116 65 19 581 265 636 599 587 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 Commercial 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 o ie u n v s r c t i y . ­ Period sou A r l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 2,735 2,477 116 130 12 776 1971—June........... 3,163 1,061 523 435 1,145 July................ 3,011 3,018 -23 26 -11 771 July............ 3,516 1,151 391 721 1,254 Aug................ 2,897 2,473 344 70 11 698 Aug............ 3,071 894 390 821 967 Sept................ 3,856 3,089 355 377 36 926 Sept........... 4,146 1,049 856 811 1,430 Oct................. 4,353 3,612 394 310 37 903 4,511 1,188 704 921 1,699 5,846 3,725 914 943 265 1,063 6,455 1,877 932 1,564 2,082 Dec................. 5,335 3,877 626 600 232 1,101 5,517 1,375 912 1,659 1,571 1972—Jan................. 5,561 4,665 437 365 94 847 1972—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 June............... 3,733 3,903 -55 -99 -16 532 June........... 3,804 1,056 838 804 1,108 Week ending— Week ending— 1972—May 3........ 4,084 3,912 180 16 -25 600 1972—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 June 7........ 3,963 4,054 -29 -39 -24 526 June 7. .. 4,237 1,091 1,005 891 1,250 14 3,845 3,932 -21 -46 -21 488 14. .. 3,980 1,047 944 860 1,129 21 3,891 4,011 -38 -70 -12 594 21... 3,905 1,174 831 759 1,142 28........ 3,511 3,813 -104 -187 -11 533 28. .. 3,271 969 630 709 962 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JULY 31, 1972 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury bonds Aug. 3, 1972 3.901 Jan. 18, 1973.... 1,800 Oct. 1, 1973..,...1*4 30 Sept. 15, 1967-72.• 2i/i 1,951 Aug. 10, 1972, 3.901 Jan. 25, 1973.... 1,800 Feb. 15, 1974......7% 2,960 Dec. 15, 1967-72..2 Vi 2,546 Aug. 17, 1972 4.101 Jan. 31, 1973.... 1.700 Apr. 1, 1974..,...1V4 34 Aug. 15, 1972, , .4 1,453 Aug. 24, 1972 4.102 Feb. 28, 1973----- 1.701 May 15, 1974..,...7% 4,334 Aug. 15, 1973 .4 3,894 Aug. 31, 1972 5.798 Mar. 31, 1973.... 1.702 Aug. 15, 1974, ,...55/g 10,284 Nov. 15, 1973....•41/s 4,339 Sept. 7, 1972 4.102 Apr. 30, 1973.... 1,700 Oct. 1, 1974 ,...1% 42 Feb. 15, 1974....•41/g 2,467 Sept. 14, 1972 4.101 May 31, 1973.... 1,200 Nov. 15, 1974......5% 7,212 May 15, 1974 ■ 4V4 2,853 Sept. 21, 1972 4.102 June 30, 1973.... 1,201 Feb. 15, 1975......5% 5,148 Nov. 15, 1974,,. • 3% 2,236 Sept. 28, 1972 4,105 July 31, 1973.... 1,201 Feb. 15, 1975..,...5% 2,045 May 15, 1975-85..41/4 1,207 Sept. 30, 1972 1,702 Apr. 1, 1975......1% 8 June 15, 1978-83..3% 1,513 Oct. 5, 1972 4,098 May 15, 1975, ...578 1,776 Feb. 15, 1980, ,, ,4 2,583 Oct. 12, 1972 4.102 May 15, 1975.., . .6 6,760 Nov. 15, 1980.,,,• 3i/i 1,900 Oct. 19, 1972 4.101 Aug. 15, 1975,.,...57/8 7,679 Aug. 15, 1981 .7 807 Oct. 26, 1972 4.102 Oct. 1, 1975..,...l1/! 30 Feb. 15, 1982, , .6% 2,702 Oct. 31, 1972 1.700 Nov. 15, 1975. ., . 7 3,115 May 15, 1985,,,, .314 1,011 Nov. 2, 1972 1,801 Treasury notes Feb. 15, 1976, ,...6% 3,739 Nov. 15, 1986....•61/8 1,216 Nov. 9, 1972 1,800 Aug. 15, 1972 ........5 2,574 Apr. 1, 1976......1% 27 Aug. 15, 1987-92..41/4 3,776 Nov. 16, 1972 1,801 Oct. 1, 1972..........UA 33 May 15, 1976.. ...5% 2,802 Feb. 15, 1988-93..4 242 Nov. 24, 1972 1,801 Nov. 15, 1972........6 2,285 May 15, 1976.. ...6% 2,697 May 15, 1989-94..41/g 1,526 Nov. 30, 1972 3,502 Feb. 15, 1973........6% 2,514 Aug. 15, 1976,. 4,194 Feb. 15, 1990,, .3i/i 4,370 Dec. 7, 1972 1,800 Feb. 15, 1973........4V& 4,268 Oct. 1, 1976 ...m 11 Feb. 15, 1995 .3 1,006 Dec. 14, 1972 1,802 Apr. 1, 1973..........VA 34 Nov. 15, 1976 ,...6Va 1,283 Nov. 15, 1998....• 3^ 3,465 Dec. 21, 1972 1,802 May 15, 1973........7y4 5,844 Feb. 15, 1977.. 8 5,163 Dec. 28, 1972 1.799 May 15, 1973.........4 y4 3,792 Apr. 1,1977 3 Dec. 31, 1972 1.701 Aug. 15, 1973........8H 1,839 Aug. 15, 1977..,...m 2,264 Convertible bonds Jan. 4, 1973 1.799 Feb. 15, 1978,. ...6% 8,389 Investment Series B Jan. 11, 1973 1,801 Nov. 15, 1978... ..6 8,207 Apr. 1, 1975-80.. 2Y4 2,309 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 s d e * r­ O p p o t u s h r e e ­ s r gations auth. 196 4 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 196 5 11,329 7,177 3.517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9,269 6.517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 197 1 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—June.. 2,013 1,320 684 779 337 896 2,004 385 394 699 14 512 July. . 1,989 1,306 506 171 477 606 905 1,942 301 120 231 219 1,071 Aug.. 1,903 1,141 754 459 735 707 1,894 352 158 377 159 846 Sept.. 2,098 1,313 523 348 706 1,044 2,053 463 65 458 271 796 Oct... 1,728 836 890 341 840 548 1,626 291 210 353 96 678 Nov.. 2,264 1,394 869 629 874 761 2,134 418 338 500 246 631 Dec.., 2,068 1,367 440 253 441 568 1,058 2,042 353 137 239 298 1,016 1972—Jan... 1,776 1,120 654 639 545 591 1,696 377 147 440 56 676 Feb... 2,002 1,049 948 354 977 670 1,930 531 78 433 29 858 Mar.. 2,237 1,289 718 434 954 849 2,111 463 134 348 329 837 Apr.. 2,114 1,382 725 471 674 969 2,075 490 229 434 10 912 May. 1,986 990 992 374 828 785 1,919 657 214 295 67 684 June. 2,224 975 1,035 209 246 1,199 778 1,959 334 144 523 393 563 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 5 Includes urban redevelopment loans. by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt, loans. and payment to issuer, which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues 4 Water, sewer, and other utilities. based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 SECURITY ISSUES □ AUGUST 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 .S v c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 al Other 5 Total Total P o u f b fe li r c e l d y P p ri l v a a c t e e d ly Preferred Common 1964.................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965.................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966.................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967.................... 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968.................... 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969.................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 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—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.r....... 8,507 2,281 1,055 1,963 24 3,184 2,322 1,622 700 263 598 May......... 9,517 2,360 1,500 1,924 161 3,571 2,428 1,696 732 128 1,016 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 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 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 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—May................................... 631 158 143 131 250 89 447 141 403 2 763 113 June................................... 1,031 175 497 290 182 115 616 439 204 14 513 300 July.................................... 383 200 159 188 157 62 520 212 232 1,390 500 144 AllC.................................. 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 Nov................................... 637 174 61 232 145 6 672 545 261 9 660 303 Dec.................................... 687 293 246 127 199 33 520 371 311 42 510 335 1972—Jan..................................... 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 May................................... 607 150 197 281 135 71 378 357 374 16 737 269 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ- 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 nd te s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 196 7 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 196 8 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 196 9 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 197 0 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 197 1 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—June.. 434 467 -33 53,560 2,830 50,730 July... 371 444 -73 51,424 2,856 48,568 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Aug... 432 394 38 53,798 3,016 50,782 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Sept... 304 471 -167 53,291 2,511 50,780 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Oct.... 596 419 177 51,160 2,885 48,275 Nov... 397 334 63 50,958 3,172 47,786 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Dec... 453 411 42 55,045 3,038 52,007 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 1972—Jan.... 521 475 46 56,694 3,163 53,531 Feb. .. 404 514 -110 58,536 3,478 55,058 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Mar... 472 667 -195 58,740 3,251 55,489 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Apr... 405 655 -250 58,870 2,827 56,043 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 May.. 378 585 -207 59,736 2,763 56,973 June.. 393 560 -167 57,707 3,015 54,692 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 □ AUGUST 1972 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U p ri r b n o u d fi t i t e s s d ­ co c a n a l t l s i p o o u i w n t m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d fi t i t e s s ­ d co c a t n a l i l s p o 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' .. 75.2 34.6 40.6 24.7 15.8 54.8 1967.............. 79.8 33.2 46.6 21.4 25.3 43.0 III'.. 76.6 35.4 41.2 24.9 16.3 55.2 IV'.. 69.6 32.2 37.4 24.7 12.7 56.1 1968.............. 87.6 39.9 47.8 23.6 24.2 46.8 1969r............ 84.9 40.1 44.8 24.3 20.5 51.9 1971—i*-. .. 81.3 38.0 43.2 25.5 17.7 57.5 1970r............ 74.3 34.1 40.2 24.8 15.4 55.2 IIr. . 84.5 38.6 45.8 25.4 20.4 59.4 1971'............ 83.3 37.3 45.9 25.4 20.5 60.3 IIP.. 84.1 37.5 46.6 25.5 21.0 61.2 IV r.. 83.2 35.3 48.0 25.2 22.7 63.0 1972—I'... 88.2 38.8 49.5 26.0 33.5 64.8 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties 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 IV2................... 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 Period Total Mining n C i o ca m ti m on u s ­ Other1 T (S o t A a . l 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 2.20 1.75 2.42 1.55 14.58 2.86 12.30 19.51 1970—IV................ 21.66 4.26 4.40 .50 .43 .76 .33 3.12 .63 2.81 4.42 78.63 1971—1.................. 17.68 3.11 3.58 .49 .34 .34 .28 2.70 .41 2.50 3.94 79.32 II................. 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 Ill............... 20.14 3.40 3.91 .55 .42 .39 .37 3.35 .71 2.62 4.42 80.75 IV................ 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—1.................. 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II 2 r............ 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

AUGUST 1972 □ REAL ESTATE CREDIT A 51 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti es5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n 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 ­ t F u i t n i c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ 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. 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 265.0 1.8 129.1 105.5 23.6 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 III. 443.4 349.7 31.7 61.9 30.8 10.0 20.8 412.5 276.0 228.5 47.5 136.5 111.4 25.1 106.8 305.7 IV. 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.4 48.8 140.3 114.6 25.7 109.2 311.3 1971—1... 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 11.. 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 in table below. 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 tables below. 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) Govemmenit- All residential Multifamily 1 uinderwritte: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 c i n n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in re A - d - an g V u te A a e r - - d 1 ti v o e n n a ­ l tutions tutions 1954............................... 18.6 4.3 4.1 .2 14.3 1941............... 24.2 14.9 9.4 5.9 3.6 2.2 182.2 65.9 35.0 30.9 116.3 1945............... 24.3 15.7 8.6 5.7 3.5 2.2 1964............................... 197.6 69.2 38.3 30.9 128.3 1963............... 211.2 176.7 34.5 29.0 20.7 8.3 1964............... 231.1 195.4 35.7 33.6 25.1 8.5 212.9 73.1 42.0 31.1 139.8 1966............................... 223.6 76.1 44.8 31.3 147.6 1965............... 250.1 213.2 36.9 37.2 29.0 8.2 236.1 79.9 47.4 32.5 156.1 1 1 1 9 9 9 6 6 6 7 8 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 6 8 9 0 4 8 . . . 0 0 6 2 2 2 5 2 3 0 3 6 . . . 7 8 6 4 4 4 7 3 0. . . 3 8 4 4 4 4 7 3 0 . . . 3 3 9 3 3 3 7 4 1 . . . 5 7 7 9 9 8 . . . 8 2 6 1969................................ 2 2 5 6 1 6 . . 2 8 9 8 0 4 . . 2 4 5 54 0 . . 5 6 3 3 3 5 . . 8 7 1 16 7 6 6 . . 8 6 1969............... 319.0 265.0 54.0 52.2 41.3 10.9 1970—1.......................... 268.5 91.6 55.6 36.0 176.9 271.7 92.2 56.1 36.0 179.6 1970— I 1 I .. . . . . . . . . . . . . . . . . 3 3 2 2 6 1 . . 3 7 2 2 6 6 8 5 . .9 9 5 5 5 7 . . 8 4 5 54 3 . . 5 2 4 42 3 . . 9 2 1 1 1 0 . . 3 3 Ill....................... 2 28 7 0 6 . . 2 0 9 9 5 7 . . 1 3 5 5 8 9 . . 1 9 3 37 7 . . 3 0 1 1 8 8 2 1 . . 9 0 Ill----- 332.2 272.8 59.4 56.1 44.3 11.8 IV....... 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—1.......... 343.3 281.6 61.7 59.7 47.2 12.5 I I I l . l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 9 9 0 9 . .7 9 1 1 0 0 2 0 . . 9 4 6 62 4 . . 8 4 3 3 8 7. . 6 5 1 1 9 9 6 0 . . 8 5 I II I . I .. . . . .. . . . . 3 35 6 3 4 . . 1 0 2 29 9 0 8 . . 1 4 6 6 5 3 . . 6 0 6 6 4 2 . .3 3 4 5 9 0 . . 4 4 1 1 2 3 . . 9 9 IV........................ 307.8 105.2 65.7 39.5 202.6 IV....... 374.7 306.1 68.6 66.8 52.0 14.8 i Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. i Structures of five or more units. Note.—Based 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. standing'’ table. 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 □ AUGUST 1972 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings * Mutual savings bank holdings 2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar­ ven­ Total in­ guar­ ven­ sured anteed tional sured anteed tional 1941........ 4,906 3,292 1,048 566 4,812 3,884 900 28 1945........ 4,772 3,395 856 521 4,208 3,387 797 24 196 4 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 196 5 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1.. 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II. 69,079 43,532 8,060 2,743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19,898 6,908 117 III. 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV. 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20.654 7,342 114 1970—1.. 70,854 44,568 7,5 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 8,246 2,806 39,228 25,500 4,156 60,625 51,989 16,216 12,033 23,740 c8,636 75 IV. 82,515 52,004 8,310 2,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 c8,951 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 7,531 6,943 663 220 6,108 537 72,027 66,254 12,271 5,701 48,282 5,773 1970.............................................. 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—May.................................. 491 442 24 8 410 49 74,552 68,425 11,186 5,254 51,985 5,554 June................................... 537 494 29 9 456 42 74,535 68,973 11,123 5,219 52,631 5,562 July................................... 590 551 20 8 523 39 74,583 69,017 11,048 5,180 52,789 5,566 Aug.................................... 735 684 23 8 601 51 74,707 69,121 10,975 5,142 52,438 5,586 Sept.................................... 672 636 73 10 515 36 74,799 69,209 10,950 5,104 52,590 5,590 Oct..................................... 607 568 28 11 487 39 74,864 69,270 10,884 5,071 52,749 5,594 Nov.................................... 607 565 20 9 492 42 74,903 69,302 10,843 5,047 52,854 5,596 Dec.................................... 1,346 1,285 18 10 1,252 61 75,596 69,995 10,760 5,001 c54,228 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 May................................... 602 540 15 13 512 60 75,493 69,379 10,467 4,873 54,039 5,552 i Includes mortgage loans secured by land on which oil drilling oir 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

AUGUST 1972 □ REAL ESTATE CREDIT A 53 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period N of u l m oa b n e s r ( c m o ( a i m d m l o l m i l o o la u i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t n r a e t c r t r e e e a s n c t t t ) (y M rs a . t / u m r o it s y .) (p t L o e r r - a o v t c a i a e n o l n - u t e ) C (p a t p e io r it n a c l e r i n z a t a t ) e ­ co D r v a e e t r i b o a t ge P co er n s c t e a n n t t 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 10.4 146 257.3 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 10.4 178 366.1 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) Members1 Period va A n d c ­ es R m e e p n a ts y­ d (e e n 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) con­ pur­ Total 2 in­ guar- ven­ struc­ chase sured anteed tional tion 278 213 195 176 19 46 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 1,036 196 4 24,913 6,638 10,538 101,333 4,894 6,683 89,756 196 5 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1967....................... 1,527 4,076 4,386 3,985 401 1,432 196 6 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 1,041 196 7 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1970....................... 3,256 1,929 10,615 3,081 7,534 2,331 196 8 21,983 4,916 11,215 130,802 6,658 7,012117,132 1971....................... 2,714 5,392 7,936 3,002 4,934 1,789 196 9 21,847 4,757 11,254 140,347 7,917 7,658 124,772 197 0 21,383 4,150 10,237 150,331 10,178 8,494131,659 1971—July............ 309 213 7,338 2,544 4,794 1,696 197 1 39,472 6,835 18,811 174.385 13.798 10.848 149.739 Aug............ 358 183 7,514 2,812 4,702 1,528 Sept............ 327 203 7,637 2,844 4,793 1,522 1971—June, 4,301 718 2,109 161,44012,273 9,580 139,587 306 303 7,640 2,874 4,766 1,450 July. 4,151 686 2,087 163,951 12,592 9,784 141,575 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 10,582147,944 Feb............. 148 871 6,515 2,342 4,173 2,014 Dec. 3,592 573 1,590 174.38513.798 10.848149.739 Mar............ 165 689 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 11,264152,183 June........... 420 198 6,074 1,944 4,130 1,746 Mar. 2.849 712 1,861 180,145 14,450 11,546154,149 Apr. 3,819 707 1,819 182,711 14,697 11,789 156,225 May 4,603 836 2,276 185,431 14,878 12,010158,543 1 Secured or unsecured loans maturing in 1 year or less. June 5,427 876 2,909 188,86415,017 12,293161,554 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 □ AUGUST 1972 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans Mortgage Mortgage Mortgage home loans holdings transactions commitments End of ( p d e u ri r o in d g ) iction M am or o tg u a n g ts e Av y e ie r l a d ge M am or o tg u a n g ts e Av y e ie r l a d ge 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 ce A p c te ­ d c ( m o s te h e m r n o m m t r s t i ) ­ t­ Offered ce A p c te ­ d c ( m o s te h m e r n o m m t r s t i ) ­ t­ 1 1 1 9 9 9 6 6 6 9 7 8 1 5 7 0 , , , 5 1 9 6 2 5 7 2 0 4 5 7 , , , 1 0 6 2 4 8 1 8 0 2 3 1 , , , 0 2 4 4 7 7 6 0 4 4 1 1 , , , 1 4 9 2 0 4 1 0 4 12 2 6 1 , , , 6 6 7 9 3 3 7 0 6 3 1 , , 5 2 5 3 8 0 9 1 7 In m do il l l l i a o r n s s of per I n ce nt In m do il l l l i a o r n s s of per I n c ent 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—Feb. 7.... 88.7 63.9 7.61 7.74 14 62.4 34.9 7.64 1971-June. 15,363 10,970 4,393 239 10 1,294 5,750 22.... 68.6 44.8 7.61 J A u u l g y . . . . c1 1 6 5, , 6 2 7 0 4 4 ^ 1 1 1 1 , , 1 5 8 6 4 2 4 4 , ,6 4 4 9 2 0 4 65 0 9 7 1,2 5 1 7 9 6 5 5, , 7 1 0 4 9 6 28 21.1 11.5 Sept.. 16,732 635 572 5,327 6.... 86.9 50.6 7.56 N Oc o t v . .. . 1 1 7 7, , 5 2 3 0 5 2 4 5 0 5 6 3 6 8 5 93 5 5 5 , , 4 20 6 8 6 2 13 0.... 202.9 86.2 7.54 10.1 5.5 7.61 Dec.. 17.791 350 1,014 5.694 Apr. 3.... 258.8 178.5 7.56 1972- F Ja e n b . . . . . 1 1 7 8 , , 9 2 7 2 7 0 2 3 8 2 1 4 5 57 7 8 4 6 5 1 58 4 1 1 0 7.... 347.4 176.3 7.60 27.1 14.9 7.66 Mar.. 18,342 316 79 469 635 Apr.. 18,403 1.... 364.9 336.4 7.63 May. 18,599 8 35.0 20.4 7.77 June. 18,628 15.... 266.3 188.2 7.63 30.... 133.4 76.4 7.62 Note.—Federal National Mortgage Assn. data. Total holdings include 1 28.2 22.7 7.80 conventional loans. Data prior to Sept. 1968 relate to secondary market 12.... 83.5 48.1 7.62 portfolio of former FNMA. Mortgage holdings include loans used to back 26.... 97.8 76.6 7.62 bond issues guaranteed by GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commit­ 10.... 134.6 92.1 7.62 ments in addition to 1- to 4-family loan commitments accepted in FNMA’s 17 32.4 22.7 7.80 free market auction system, and through the FNMA-GNMA Tandem 24.... 123.9 113.0 7.62 Plan (Program 18). Note.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commit­ ment fees and FNMA stock purchase and holding requirements. Begin­ ning 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 FHA- Made Out Total su in re ­ d 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 1 1 9 9 7 7 1 0 4 1 , , 3 1 7 2 3 6. . 2 6 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-June. 5,275 4,751 524 43 424 1,247 Oct.. 226.1 112.6 July.. 5,282 4,761 520 25 487 1,586 Nov. 533.7 244.2 Aug.. 5,279 29 Dec. 318.3 212.8 Sept.. 5.259 4,749 510 17 Oct. . 5,245 15 1972—Jan.. 384.1 247.7 Nov.. 5.260 24 Feb., 511.2 391.2 200.0 Dec.. 5,294 32 Mar. 528.3 322.5 Apr. 187.8 275.1 1972-Jan... 5,287 May 216.4 212.9 ’506.‘6‘ Feb.. 5,281 Mar.. 5,243 Apr.. 5,125 Note.—Government National Mortgage Assn. data. Under the Mort- May. 5,214 gage-Backed Security Program, GNMA guarantees the timely payment June. 5,230 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. Se N pt o . t 1 e 9 . 6 — 8 G re o la v t e e r n to m e S n p t e c N ia a l t A io s n s a is l t a M nc o e r t a g n a d g e M A an s a s g n. e m d e a n ta t . an D d a L ta i q p u r id io a r t in to g T FH o L d M at C e, . bond-type securities have been issued only by FNMA and 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

AUGUST 1972 □ REAL ESTATE CREDIT A 55 HOMEMORTGAGE 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 h lo n o e a m w ns e Total h N o e m w es h is o E t m i x n ­ g es jects 1 m pr i e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n ­ e g s homes homes 1945............ 665 257 217 20 171 192 196 8 6.97 7.03 7.12 7.21 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 8,689 1,705 5,760 591 634 2,652 876 1,774 197 1 7.60 7.54 7.75 7.70 7,320 1,729 4,366 583 641 2,600 980 1,618 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1971—June, 7.50 7.50 7.70 7.89 1968........... 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 July. 7.66 7.63 7.80 7.97 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 Aug. 7.74 7.71 7.85 7.92 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 Sept. 7.83 7.76 7.85 7.84 Oct.. 7.84 7.75 7.80 7.75 1971—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 June 7.54 7.49 7.60 7.54 1972—Jan.. 1,277 420 516 280 62 629 204 425 Feb.. 1,094 366 448 237 44 460 199 361 Mar.. 1,253 349 449 401 54 658 231 427 Note.—Annual data are averages of monthly figures. The Apr.. 954 272 381 249 51 509 170 339 FHA data are based on opinion reports submitted by field offices May. 628 259 369 217 56 603 185 418 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 loaps, 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 1965............... 3.29 2.40 .55 .34 .40 Total FH V A A - t C i v o o e n n n a ­ ­ l c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g s O t i a n u n g t d ­ ­ 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 June.... 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 mortgage bankers (chiefly), commercial banks, savings banks, and loan programs. savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ AUGUST 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 i loans 19V). 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--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 7,311 133,263 107,097 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 June............................. 142,215 114,567 41,104 32,841 4,571 36,051 27,648 10,851 8,870 7,927 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 1 dealers 2 outlets 1939. 4,503 3,065 1,079 1,836 132 18 1,438 123 1,315 1941. 6,085 4,480 1,726 2,541 198 15 1,605 188 1,417 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955. 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960. 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965. 71,324 61,533 28,962 24,282 7,324 965 9,791 315 9,476 1966. 77,539 66,724 31,319 26,091 8,255 1,059 10,815 277 10,538 1967. 80,926 69,490 32,700 26,734 8,972 1,084 11,436 285 11,151 1968. 89,890 77,457 36,952 29,098 10,178 1,229 12,433 320 12,113 1969, 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 12,851 1970 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1971. 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1971- 101,862 88,544 43,011 30,609 13,206 1,718 13,318 339 12,979 102,848 89,458 43,509 30,906 13,296 1,747 13,390 344 13,046 104,060 90,536 44,112 31,098 13,570 1,756 13,524 347 13,177 104,973 91,279 44,603 31,133 13,780 1,763 13,694 349 13,345 105,763 91,943 44,947 31,331 13,875 1,790 13,820 354 13,466 107,097 92,901 45,396 31,643 14,052 1,810 14,196 359 13,837 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1972- 108,826 93,668 45,878 31,948 14,062 1,780 15,158 359 14,799 108,634 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 June................................................. 114,567 99,734 49,167 33,470 15,175 1,922 14,833 391 14,442 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with “other retail outlets.” cellaneous lenders include savings and loan associations and mutual See also Note to table above, savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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) Automobile Repair E p n er d i o o d f Total Pur­ paper s g O c u o o t m o h n d e e ­ r s r m iz l o o a a d n a ti e n d o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s O g c u o o t m o h n d e e ­ s r r m R iz o a e a n d p ti d e a o r i n r n­ s l P o o a e n n r a ­ s l chased Direct paper paper loans 1939............... 1,079 237 178 166 135 363 1939............................... 1,836 932 134 151 619 1941............... 1,726 447 338 309 161 471 1941............................... 2,541 1,438 194 204 705 1945............... 745 66 143 114 110 312 1945............................... 910 202 40 62 606 1950............... 5,798 1,177 1,294 1,456 834 1,037 1950............................... 5,315 3,157 692 80 1,386 1955............... 10,601 3,243 2,062 2,042 1,338 1,916 1955............................... 11,838 7,108 1,448 42 3,240 1960............... 16,672 5,316 2,820 2,759 2,200 3,577 1960............................... 15,435 7,703 2,553 173 5,006 196 5 28.962 10,209 5,659 4,166 2,571 6,357 1965............................... 24,282 9,400 4,425 224 10,233 196 6 31,319 11,024 5,956 4,681 2,647 7,011 1966............................... 26,091 9,889 5,171 191 10,840 196 7 32,700 10,927 6,267 5,126 2,629 7,751 1967............................... 26,734 9,538 5,479 154 11,563 196 8 36,952 12,213 7,105 6,060 2,719 8,855 1968............................... 29,098 10,279 5,999 113 12,707 196 9 40,305 12,784 7,620 7,415 2,751 9,735 1969............................... 31,734 11,053 6,514 106 14,061 197 0 41,895 12,433 7,587 8,633 2,760 10,482 1970............................... 31,123 9,941 6,648 94 14,440 197 1 45.976 13.003 8.752 9.805 2.864 11.552 32,140 10,279 6,521 107 15,233 1971—June... 43,011 12,484 8,098 8,821 2,765 10,843 1971—June..................... 30,609 9,918 6,224 101 14,366 July... 43,509 12,614 8,220 8,931 2,803 10,941 July..................... 30,906 10,037 6,230 101 14,538 Aug. .. 44,112 12,753 8,318 9,074 2,838 11,129 31,098 10,077 6,249 103 14,669 Sept... 44,603 12,831 8,380 9,235 2,860 11,297 Sept..................... 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 Nov..................... 31,643 10,248 6,325 106 14,964 Dec.... 45.976 13.003 8.752 9.805 2.864 11.552 32,140 10,279 6,521 107 15,233 1972—Jan.... 45,878 12,957 8,734 9,783 2.835 11,569 1972—Jan....................... 31,948 10,197 6,501 108 15,142 Feb.... 45.963 13,007 8,763 9,769 2,824 11,600 31,979 10,207 6,508 107 15,157 Mar. .. 46,415 13,167 8,903 9,833 2.835 11,677 Mar..................... 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 May..................... 32,957 10,642 6,686 113 15,516 June... 49,167 14,028 9,487 10,486 2,985 12,181 June.................... 33,470 10,865 6,820 114 15,671 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 1 1 9 9 6 6 7 8 2 23 1 , , 3 2 0 0 1 6 7 7 , , 9 3 7 4 5 0 1 1 , , 1 0 6 8 3 8 5 6 , , 9 4 3 5 9 0 1 1, , 3 0 0 2 5 9 6 5 , , 4 8 0 1 8 0 1971—June..................... 14,924 5,510 952 1,320 7,142 196 9 24,300 7,900 1,196 6,650 1,584 6,970 July..................... 15,043 5,548 958 1,336 7,201 197 0 25,641 8,205 1,279 6,932 1,918 7,307 Aug..................... 15,326 5,659 977 1,354 7,336 197 1 27.692 8.916 1.384 7.597 2,221 7.574 Sept..................... 15,543 5,746 992 1,366 7,439 Oct....................... 15,665 5,787 999 1,378 7,501 1971—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 June.................... 17,097 6,333 1,093 1,472 8,199 F M e a b r. . .. . . . 2 2 6 6 , , 6 61 5 9 4 9 9 , ,0 00 8 8 3 1 1 , , 4 4 2 2 5 8 6 5 , , 0 9 0 6 8 9 2 2 , , 1 0 3 4 3 2 8 8 . , 0 1 4 3 5 2 Apr__ 27,057 9,176 1.444 6,239 2,067 8,131 lan N e o ou t s e .— len O de th rs e . r financial lenders consist of credit unions and miscel­ J M un ay e. . . . . . 2 2 7 7 , , 6 4 4 8 8 6 9 9 , , 4 2 0 9 6 4 1 1 . , 4 4 4 5 5 5 6 6 , , 7 63 6 8 4 2 2 , , 1 0 0 5 6 4 7 8 , . 9 0 2 4 7 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 □ AUGUST 1972 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965........................................ 78,586 27,227 22,750 2 266 26 343 1966........................................ 82,335 27,341 25,591 2*200 27*203 1967........................................ 84,693 26,667 26,952 2,113 28)961 1968........................................ 97,053 31,424 30,593 2,268 32)768 1969........................................ 102,888 32,354 33,079 2)278 35)l77 1970......................................... 104,130 29,831 36,781 2*145 35)373 1971......................................... 117,638 34,638 40,979 2*550 39,471 1971—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 June............................. 11,118 12,062 3,398 3,885 3,969 4,066 249 290 3,502 3,821 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—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 June............................. 9,791 9,972 2,851 2,900 3,526 3,534 207 216 3,207 3,322 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—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 55 291 454 999 913 415 229 290 363 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 June............................. 1,327 2,090 547 985 443 532 42 74 295 499 1 Includes adjustments for differences in trading days. purchases and sales of instalment paper, and certain other transac­ 2 Net changes in credit outstanding are equal to extensions less tions may increase the amount of extensions and repayments repayments. without affecting the amount outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often Credit,” Section 16 (New) of Supplement to Banking and Monetary include financing charges. Renewals and refinancing of loans, Statistics, 1965, and pp. 983-1003 of the Bulletin for Dec. 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.i N.S.A. Extensions 1965 ....................................... 78,586 29,528 25,192 9,436 14,430 1966......................................... 82,335 30,073 25,406 10,362 16,494 1967......................................... 84,693 30,850 25,496 10,911 17^436 1968 ....................................... 97.053 36,332 28,836 12,850 19^035 1969 ....................................... 102,888 38,533 30,854 14,245 19 256 1970 ... ....................... 104,130 39,136 29,662 14,619 20*713 1971......................................... 117,638 45,099 32,036 17,312 23*191 1971—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 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 June............................. 11,118 12,062 4,565 4,968 2,777 3,106 1,656 1,870 2,120 2,118 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—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 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 June............................. 9,791 9,972 3,755 3,833 2,528 2,593 1,480 1,532 2,028 2,014 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—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 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 June............................. 1,327 2,090 810 1,135 249 513 176 338 92 104 1 Includes adjustments for differences in trading days. changes in their outstanding credit. Such transfers do not affect total 2 Net changes in credit outstanding are equal to extensions less re­ instalment credit extended, repaid, or outstanding. payments, except in certain months when data for extensions and re­ payments have been adjusted to eliminate duplication resulting from Note.—“Other financial lenders” include credit unions and miscellaneous large transfers of paper. In those months the differences between ex­ lenders. See also Note to preceding table and Note 1 at bottom of p. A-56. tensions and repayments for some particular holders do not equal the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: S.A. □ AUGUST 1972 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ a 1 v 9 e 7 r 1 - 1971 1972 Grouping p ti o o r n ­ agep June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar.r Apr.r Mayr June** Total index. 100.00 106.8 107.4 106.8 105.6 107.1 106.8 107.4 108.1 108.7 110.0 111.2 112.8 113.2 113.3 Products, total................ 62.21 106.4 106.2 107.0 106.1 107.0 107.0 107.9 108.0 108.4 109.5 110.1 111.4 112.1 111.9 Final products.............. 48.95 104.7 104.6 105.0 104.8 105.5 105.4 106.1 106.2 106.4 107.6 108.2 109.8 110.1 110.1 Consumer goods.... 28.53 115.7 116.1 116.3 115.9 116.7 116.6 118.0 118.0 118.5 119.6 119.6 122.0 122.1 122.2 Equipment............... 20.42 89.4 88.5 89.3 89.5 89.8 89.8 89.6 89.6 89.5 90.9 92.4 92.7 93.4 93.0 Intermediate products. 13.26 112.6 112.2 114.6 110.9 112.3 113.2 114.3 114.9 115.9 117.0 117.3 117.3 119.3 118.8 Materials......................... 37.79 107.4 109.3 106.4 104.8 107.3 106.6 106.5 108.4 109.2 110.8 113.1 115.0 115.2 115.7 Consumer goods Durable consumer goods.............. 7.86 115.1 117.0 117.4 117.3 117.1 116.8 116.0 117.4 117.5 120.3 118.9 125.9 125.3 124.8 Automotive products............... 2.84 119.5 121.2 121.7 122.3 122.9 121.9 119.7 119.9 116.6 119.5 119.3 128.9 127.4 125.5 Autos.................................... 1.87 108.3 107.9 107.9 108.5 108.0 107.8 109 109.4 102.8 106.4 104.6 114.3 111.3 108.2 Auto parts and allied goods. .97 140.9 146.8 148.0 148.9 151.5 149.0 140.1 140.0 143.4 144.5 147.5 157.0 158.3 158.8 Home goods............................. 5.02 112.6 114.6 115.0 114.4 113.8 113.9 113.8 116.0 118.1 120.7 118.7 124.2 124.3 124.3 Appliances, TV, and radios. 1.41 111.5 117.3 115.5 112.4 110.4 109.7 110.5 116.9 123.8 123.1 115.1 132.2 129.4 124.3 Appliances and A/C... .92 127.6 129.7 126.7 128.5 129.0 129.5 131.3 135.8 143.4 146.9 131.9 149.3 148.4 139.0 TV and home audio.... .49 81.4 93.9 94.5 82.4 75.6 72.6 71. 81.3 87.1 78.3 84.0 100.1 93.7 97.2 Carpeting and furniture 1.08 117.2 119.2 121.2 121.7 121.9 120.7 122.2 120.4 121.7 126.1 127.1 131.3 132.0 132.0 Misc. home goods................ 2.53 111.2 111.3 112.1 112.7 112.3 113.4 112.0 113.7 113.5 117.2 117.2 116.9 118.2 121.1 Nondurable consumer goods.......... 20.67 116.0 115.6 115.9 115.4 116.5 116.6 118.8 118.4 119.0 119.3 119.9 120.5 121.0 121.2 Clothing...................................... 4.32 101.4 102.0 102.5 100.3 103.6 103.2 103.7 105.0 105.8 102.7 105.0 105.0 106.3 Consumer staples....................... 16.34 119.8 119.2 119.4 119 119.9 120.2 122.8 121.9 122.5 123.7 123.9 124.6 124.9 124.8 Consumer foods and tobacco.... 8.37 113.6 113.4 112.3 112.8 114.1 113.9 117.2 115.5 115.4 115.5 116.3 116.8 117.0 116.7 Nonfood staples..................... 7.98 126.3 125.3 126.9 126.4 126.1 126.7 128.6 128.7 129.8 132.4 132.0 132.8 133.4 133.3 Consumer chemical products.. 2.64 133.9 131.1 132.7 133.3 133.6 132.0 137.2 134.3 137.6 144.3 141.4 145.4 144.8 143.4 Consumer paper products.... 1.91 107.9 107 106.9 106.2 109.2 111.0 111.5 114.8 111.4 112.1 113.9 111.4 111.1 110.9 Consumer fuel and lighting... 3.43 130.8 130.5 133.8 132.3 129.6 131.6 131.6 132.1 134.2 134.5 134.9 134.8 137.0 138.1 Residential utilities......... 2.25 137.6 137 141.8 138.6 136.5 138.5 138.8 139.0 141.8 142.5 142.3 142.1 144.2 146.8 Equipment Business equipment..................... 12.74 96.8 95.6 97.1 97.5 98.2 98.2 97.9 98.0 98.4 99.9 101.3 101.3 102.5 102.0 Industrial equipment.............. 6.77 92.9 91 92.0 92.8 93.2 93.5 94.2 94.2 94.1 95.4 96.3 95.7 96.3 96.8 Building and mining equip.. 1.45 92.9 88.8 88.9 96.4 96.6 95.5 95.2 94.0 98.0 99.6 101.2 98.4 97.0 97.4 Manufacturing equipment.. 3.85 82.6 81.2 82.5 81.5 82.1 83.1 83.5 83.8 82.4 83.4 84.5 84.9 85.9 86.2 Power equipment............... 1.47 119.8 122.8 119.9 119.0 118.7 118.8 121.5 121.6 121.0 122.7 122.0 121.4 122.8 124.0 Commercial, transit, farm eq.. 5.97 101.2 99.7 102.9 102.8 104.0 103.6 102.1 102.4 103.3 105.1 107.0 107.6 109.5 107.8 Commercial equipment---- 3.30 110.0 108.6 111 111.1 113.1 112.2 110.2 109.4 109.1 111.9 114.7 114.1 116.4 114.7 Transit equipment.............. 2.00 89.4 88.2 89.3 90.7 90.8 91.1 89.4 93.1 95.1 94.7 95.4 97.0 98.3 95.6 Farm equipment................. .67 93.2 90.4 100.2 97.7 98.5 98.8 100.0 96.1 98.6 102.4 103.5 106.8 108.2 110.0 Defense and space equipment. 7.68 77.1 76.7 76.3 76.3 76.0 75.7 75.9 75.6 74.8 76.0 77.6 78.5 78.2 78.3 Military products............... 5.15 79.9 79.3 78.8 79.2 79.0 79.0 78.8 78.3 77.6 78.5 80.7 81.3 81.1 81.3 Intermediate products Construction products.......... 5.93 112.6 113 115 109.3 111.5 112.8 114.2 115.2 115.7 115.8 115.9 116.5 117.9 117.5 Misc. intermediate products. 7.34 112.6 111.4 114.4 112.1 112.9 113.5 114 114.5 116.1 118.0 118 118 120.4 119.8 Materials Durable goods materials---- 20.91 101 103 99. 96.5 100.6 102.2 100.5 101.6 103.5 105. 107.8 110.4 110.8 110.7 Consumer durable parts. 4.75 104.2 107.6 101.1 105.6 103.3 104.1 101.8 104.0 105.1 107.1 110.2 113.8 112.0 111.4 Equipment parts............. 5.41 87.1 87.3 88.0 83 87.1 88.1 87.3 87.9 88.8 90.7 91.0 95.4 95.3 94.6 Durable materials nec... 10.75 107.9 110.3 105.1 99.3 106 108.5 106.5 107.4 110.2 112.8 115.2 116.5 118.2 118.5 Nondurable goods materials........... 13.99 114.1 115 113. 114.7 114.7 115.0 115. 116.7 116.0 117.0 119.8 120.6 120.7 122.4 Textile, paper, and chem. mat.. 8.58 116.6 117.3 115.5 117.7 118.8 119.0 121.5 123.0 120.8 121 125.0 125.9 126.2 127.5 Nondurable materials n.e.c....... 5.41 110 112.1 110. 110.0 108.2 108.4 107.2 106.8 108.3 109.9 111 112 112.4 114.2 Fuel and power, industrial........... 2.89 116.3 120.7 119. 117.4 119.5 98.7 104 117.6 117.4 117.7 118 121 120.1 119.8 Supplementary groups Home goods and clothing. 9.34 107.4 108 109. 107.9 109.1 108.9 109. 110.9 112.4 112.4 112.3 115.3 116.0 116.7 Containers.......................... 1.82 116.8 115.6 118. 117.3 115.1 116.9 119. 121.0 120.6 123.7 120.3 127.5 123.4 124.4 Gross value oi products in market structure (In billions of 1963 dollars) Products, total................. 392.0 391.4 391.8 390.0 392.1 393.2 396.5 396.5 398.7 402.0 405.6 409.7 413.2 411.5 Final products............ 302.6 302.4 300.7 302.4 303.5 303.8 306.7 305.8 306.7 309.2 312.3 317.1 318.7 317.2 Consumer goods. . . 213.8 214.6 213.3 213.9 214.2 215.0 217.9 217.4 217.4 218.8 220.4 224.8 225.5 224.4 Equipment............... 88.8 88.1 87.7 88.6 89.4 89.2 89.0 88.9 89.2 90.4 91.9 92.4 93.2 93.0 Intermediate products. 89.5 89.4 91.4 87.8 88.9 89.4 90.2 90.6 92.5 92.9 93.2 92.8 94.5 94.3 1 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1 p 9 r 6 o 7 ­ a 1 v 9 e 7 r 1 ­ 1971 1972 Grouping p ti o o r n ­ age* June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr.r May r June* Manufacturing...................................... 88.55 105.2 106.0 105.8 104.2 105.7 106.1 106.0 106.2 107.1 108.5 109.7 111.8 112.2 112.1 Durable............................................ 52.33 99.4 100.7 100.3 91.A 99.3 100.1 99.1 99.5 100.4 102.1 103.4 105.8 106.3 106.0 Nondurable...................................... 36.22 113.6 113.7 113.8 114.0 115.1 114.7 115.9 116.0 116.8 117.8 118.8 120.3 120.6 121.0 Mining and utilities............................. 11.45 118.9 119.7 119.2 118.6 118.3 114.3 117.4 120.1 120.6 121.6 122.3 122.9 122.4 122.9 6.37 107.0 108.6 105.6 106.3 105.9 97.7 102.5 107.8 107.3 107.2 108.5 109.0 107.4 108.4 5.08 133.9 133.8 136.2 134.1 134.0 135.2 136.0 135.8 137.4 139.7 139.7 140.2 141.4 141.2 Durable manufactures Primary and fabricated metals............ 12.55 104.0 108.3 104.6 94.0 99.5 101.3 98.8 100.6 104.0 105.4 107.4 110.4 112.3 111.3 Primary metals................................. 6.61 100.9 108.1 98.9 81.2 93.8 96.1 91.4 94.3 102.4 102.6 105.1 110.2 112.8 110.0 Iron and steel, subtotal............... 4.23 96.6 105.3 99.0 66.5 85.9 89.4 81.9 85.5 95.2 95.9 98.8 105.5 107.3 104.3 Fabricated metal products.............. 5.94 107.5 108.6 110.9 108.2 105.9 107.1 107.1 107.6 106.0 108.6 110.1 110.8 111.9 112.7 Machinery and allied goods................. 32.44 94.9 95.1 95.8 95.4 96.2 96.6 95.9 95.6 95.7 97.3 98.4 101.1 101.1 100.9 Machinery........................................ 17.39 96.2 96.3 97.7 96.7 97.9 98.3 97.8 97.9 98.5 99.5 100.3 102.6 103.0 103.7 Nonelectrical machinery.............. 9.17 94.3 93.6 95.8 95.5 97.0 97.4 95.9 94.8 95.1 96.2 97.6 98.6 100.4 102.1 Electrical machinery.................... 8.22 98.3 99.4 99.9 97.9 99.0 99.3 99.9 101.3 102.2 103.2 103.3 107.1 105.9 105.4 Transportation equipment.............. 9.29 92.9 93.1 93.2 93.9 94.2 94.5 93.4 92.7 92.0 94.7 95.9 100.4 99.1 96.5 Motor vehicles and parts............ 4.56 114.1 113.9 115.5 116.3 115.8 116.0 115.7 116.1 114.0 117.7 118.8 125.6 122.9 117.4 Aerospace and misc. trans. eq... 4.73 72.5 73.0 71.7 72.3 73.4 73.7 72.0 70.1 70.8 72.7 73.9 76.1 76.1 76.5 Instruments...................................... 2.07 108.5 108.5 110.9 109.1 110.5 111.2 110.4 109.3 111.3 114.5 114.2 116.1 117.3 118.4 Ordnance, private and Govt........... 3.69 86.1 87.1 85.0 85.5 85.2 85.3 84.9 84.4 83.2 83.7 86.4 87.3 87.6 89.0 Lumber, clay, and glass....................... 4.44 111.5 112.6 111.4 111.0 112.1 113.2 113.7 114.8 115.5 118.0 118.1 118.1 118.2 119.0 Lumber and products..................... 1.65 113.9 114.0 114.1 113.9 114.8 118.2 119.4 121.7 122.0 119.7 119.6 119.9 119.1 121.1 Clay, glass, and stone products---- 2.79 110.0 111.8 109.8 109.3 110.6 110.1 110.4 110.7 111.6 117.0 117.2 117.1 117.5 117.7 Furniture and miscellaneous................. 2.90 111.7 113.3 115.9 114.0 114.2 114.0 113.3 114.3 115.0 117.3 118.4 119.9 120.6 120.8 Furniture and fixtures..................... 1.38 102.1 105.2 104.8 105.2 105.3 104.5 105.4 103.8 104.0 108.4 108.7 111.7 110.7 112.9 Miscellaneous manufactures........... 1.52 120.5 120.7 126.1 122.0 122.2 122.6 120.5 123.9 125.1 125.4 127.2 127.4 129.6 127.9 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 100.7 101.3 100.9 100.8 102.5 102.3 101.8 103.1 102.0 101.1 103.7 106.1 105.0 105.9 Textile mill products....................... 2.69 108.6 109.2 108.6 110.5 111.0 110.1 110.2 112.6 108.9 107.0 110.9 113.5 112.8 113.4 Apparel products............................. 3.33 97.8 98.1 98.3 97.4 99.5 100.0 99.8 99.7 99.8 100.1 102.7 103. 3 102.9 Leather and products...................... .88 87.4 89.4 87.0 84.2 87.7 87.4 83.3 87.1 89.6 86.9 85.4 94.4 89.2 91.0 Paper and printing............................... 7.92 107.8 105.9 108.4 108.1 108.2 109.4 110.5 110.7 111.3 112.6 112.6 112.3 113.3 112.5 Paper and products......................... 3.18 115.8 113.1 115.3 117.5 116.2 116.9 119.2 119.8 122.2 122.8 122.5 124.4 125.1 121.8 Printing and publishing................... 4.74 102.5 101.0 103.8 101.7 102.9 104.3 104.5 104.7 103.9 105.8 105.9 104.2 105.3 106’. 4 Chemicals, petroleum, and rubber.... 11.92 124.8 126.1 124.7 126.3 127.5 126.6 127.9 127.9 129.8 132.6 133.4 136.1 137.3 138.9 Chemicals and products.................. 7.86 126.4 127.9 126.0 127.7 129.9 128.4 130.8 130.4 131.2 135.1 135.7 137.9 138.7 140.8 Petroleum products......................... 1.80 115.7 115.0 114.8 115.8 113.7 115.7 116.0 118.3 119.3 118.7 117.9 117.0 119.5 118.6 Rubber and plastics products......... 2.26 126.0 129.1 128.1 129.9 129.6 129.1 127.7 126.6 133.3 135.0 138.1 144.7 146.5 148.2 Foods and tobacco............................... 9.48 113.7 113.6 114.1 113.1 114.2 113.3 115.8 115.0 115.7 115.9 116.3 117.6 117.1 116.7 Foods................................................ 8.81 114.9 115.2 115.5 114.1 115.2 114.4 117.1 116.6 116.5 116.9 117.5 118.6 118.5 118.0 Tobacco products............................ .67 97.7 92.1 96.6 98.2 100.3 98.5 98.2 93.8 103.8 102.5 101.9 103.9 99.1 Mining Metal, stone, and earth minerals......... 1.26 104.6 104.9 91.5 96.8 98.1 102.0 110.9 111.1 108.0 109.8 108.3 104.6 99.0 98.2 Metal mining................................... .51 121.4 117.3 93.3 104.8 109.7 117.1 136.7 137.7 128.9 133.7 131.0 122.2 110.2 105.6 Stone and earth minerals................ .75 93.2 96.4 90.2 91.4 90.1 91.7 93.4 92.7 93.8 93.5 92.7 92.6 91.4 93.1 Coal, oil, and gas................................. 5.11 107.6 109.5 109.1 108.7 107.9 96.6 100.4 107.1 107.1 106.5 108.6 110.0 109.5 110.9 Coal.................................................. .69 99.8 109.3 109.3 110.7 111.0' 29.5 55.7 112.4 106.3 99.6 104.1 112.9 104.8 104.2 Oil and gas extraction..................... 4.42 108.9 109.6 109.1 108.4 107.4 107.1 107.4 106.3 107.2 107.6 109.3 109.6 110.3 111.9 Utilities Electric................................................. 3.91 138.1 137.5 140.9 138.6 138.6 140.6 141.9 141.9 141.2 144.4 144.8 145.6 146.9 146.6 Gas....................................................... 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. □ AUGUST 1972 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ a 1 v 9 e 7 r 1 ­ 1971 1972 Grouping p ti o o r n ­ age* June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr.r Mayr June* Total index....................................... 100.00 106.8 110.0 102.8 105.8 110.3 110.3 107.7 104.5 106.6 110.3 111.6 113.6 113.4 115. < Products, total..................................... 62.21 106.4 109.1 104.5 107.4 112.2 111.5 107.7 103.0 105.5 109.0 110.0 111.7 110.9 114.' Final products................................... 48.95 104.7 107.4 102.0 105.5 110.6 109.7 105.9 101.2 104.4 107.7 108.3 110.2 108.6 112.i Consumer goods.......................... 28.53 115.7 119.3 112.6 118.4 124.2 123.0 117.2 109.9 115.7 119.4 119.2 122.4 119.7 125.' Equipment.................................... 20.42 89.4 90.8 87.3 87.5 91.7 91.1 90.1 89.0 88.6 91.4 93.1 93.2 93.1 95.: Intermediate products..................... 13.26 112.6 115.3 113.5 114.3 118.0 118.0 114.1 109.8 109.4 113.8 116.5 117.4 119.5 121.( Materials.............................................. 37.79 107.4 111.5 99.9 103.1 107.3 108.2 107.6 106.9 108.3 112.4 114.5 116.6 117.4 117.J Consumer goods Durable consumer goods....................... 7.86 115.1 121.3 102.7 109.7 122.5 126.6 119.9 107.7 117.1 122.9 121.8 128.8 126.0 128.. Automotive products....................... 2.84 119.5 130.5 94.9 102.0 128.7 135.9 123.9 102.5 120.7 126.5 126.3 138.2 132.6 133.: Autos............................................ 1.87 108.3 120.8 69.4 76.5 112.0 124.0 115.6 87.5 112.0 117.0 115.1 128.0 121.3 120.: Auto parts and allied goods........ .97 140.9 149.0 144.0 151.1 160.6 158.7 139.8 131.3 137.5 144.8 147.8 157.8 154.3 158.1 Home goods.................................... 5.02 112.6 116.1 107.1 114.1 119.0 121.4 117.6 110.7 115.1 120.8 119.3 123.5 122.3 125.. Appliances, TV, and radios........ 1.41 111.5 117.5 102.9 104.5 113.9 125.7 116.7 98.4 123.1 127.2 120.1 131.9 125.0 124.: Appliances and A/C................ .92 127.6 136.6 122.9 115.0 128.6 143.5 132.3 108.2 143.8 150.3 139.3 156.6 147.1 145.: TV and home audio................. .49 81.4 81.9 65.4 84.8 86.2 92.5 87.4 80.1 84.3 83.9 84.1 85.6 83.7 84.1 Carpeting and furniture.............. 1.08 117.2 118.1 103.4 121.9 125.4 122.0 125.5 123.0 123.5 131.4 130.8 131.8 128.3 130.1 Misc. home goods....................... 2.53 111.2 114.5 111.1 116.2 119.1 118.8 114.7 112.3 107.1 112.7 113.9 115.3 118.2 123.< Nondurable consumer goods................ 20.67 116.0 118.6 116.4 121.7 124.8 121.6 116.2 110.8 115.1 118.1 118.2 119.9 117.3 124. < Clothing............................................ 4.32 101.4 105.6 93.7 105.6 107.0 110.4 100.6 90.6 100.8 106.6 108.1 113.2 102.8 Consumer staples............................. 16.34 119.8 122.1 122.4 126.0 129.5 124.6 120.3 116.2 118.9 121.2 120.9 121.7 121.1 i 27.1 Consumer foods and tobacco.... 8.37 113.6 116.5 112.9 118.7 123.9 120.5 115.8 109.0 109.2 111.2 113.0 114.8 114.7 119.1 Nonfood staples........................... 7.98 126.3 127.9 132.4 133.7 135.3 128.9 125.0 123.7 129.0 131.7 129.2 128.9 127.8 136.1 Consumer chemical products.. 2.64 133.9 142.4 138.0 139.6 145.4 139.4 137.1 124.9 129.3 137.7 135.0 142.3 143.9 155.' Consumer paper products....... 1.91 107.9 110.2 109.6 113.9 116.0 114.7 110.7 108.9 106.3 109.1 110.8 110.3 107.9 113.- Consumer fuel and lighting... 3.43 130.8 126.5 140.8 140.2 138.3 128.8 123.7 131.0 141.4 139.6 135.0 129.0 126.5 133.' Residential utilities............... 2.25 137.6 130.7 151.6 149.6 148.6 134.8 126.9 135.5 152.3 150.1 144.2 136.3 130.3 139.: Equipment Business equipment............................... 12.74 96.8 98.9 94.4 94.7 101.1 100.3 98.3 96.4 96.6 100.7 102.2 102.3 102.1 105. Industrial equipment....................... 6.77 92.9 93.6 91.0 90.8 95.7 95.2 94.6 93.4 93.0 96.2 96.4 95.7 95.7 98.( Building and mining equip.......... 1.45 92.9 91.6 87.0 90.5 98.2 97.0 99.0 95.7 97.1 99.5 97.9 99.0 96.3 ioo.: Manufacturing equipment.......... 3.85 82.6 82.6 80.7 80.0 85.0 83.9 83.2 83.1 81.4 85.6 86.2 84.8 85.5 87.' Power equipment......................... 1.47 119.8 124.2 121.7 119.1 121.2 123.1 120.2 118.1 119.3 120.6 121.4 121.2 121.8 125. - Commercial, transit, farm eq.......... 5.97 101.2 104.9 98.2 99.1 107.3 106.1 102.4 99.9 100.7 105.8 108.7 109.8 109.4 112.- Commercial equipment............... 3.30 110.0 113.5 114.5 111.9 116.7 113.2 110.5 107.4 105.3 110.1 112.6 112.2 114.7 119.! Transit equipment....................... 2.00 89.4 94.1 75.5 83.1 92.9 96.0 91.8 90.8 93.5 97.3 99.5 104.8 100.3 99.: Farm equipment........................... .67 93.2 94.3 85.8 83.8 103.7 101.2 93.7 90.6 99.1 109.9 117.2 113.2 110.0 114.' 7.68 77.1 77.4 75.4 75.5 76.1 75.7 76.4 76.6 75.3 75.9 77.9 78.0 78.1 79.1 Military products............................. 5.15 79.9 80.6 78.2 78.6 78.9 78.7 79.0 78.8 77.8 78.4 81.0 81.1 81.3 82.i Intermediate products Construction products......................... 5.93 112.6 118.4 112.2 111.8 116.1 117.6 112.7 109.1 107.6 113.7 116.9 118.9 120.5 121.! Misc. intermediate products............... 7.34 112.6 112.8 114.5 116.4 119.6 118.4 115.2 110.4 110.9 113.9 116.1 116.2 118.7 121.- Materials 20.91 101.7 107.0 93.1 93.5 100.8 103.3 101.2 100.1 102.2 107.5 110.2 112.4 113.6 7/i.i Consumer durable parts................. 4.75 104.2 107.3 90.4 96.7 102.7 106.6 106.3 109.0 108.8 110.5 111.6 112.9 113.3 111. Equipment parts.............................. 5.41 87.1 89.6 82.6 81.1 88.0 87.8 86.5 87.1 89.1 92.1 93.7 96.5 95.9 97. Durable materials n.e.c................... 10.75 107.9 115.7 99.6 98.3 106.4 109.6 106.3 102.7 105.8 114.0 117.8 120.1 122.6 123.' Nondurable goods materials................. 13.99 114.1 116.4 107.7 114.4 114.8 117.6 117.5 114.4 115.1 118.3 119.8 121.8 122.5 123. Textile, paper, and chem. mat......... 8.58 116.6 118.9 107.3 116.8 118.7 121.5 122.8 119.2 120.0 124.3 126.0 128.5 128.7 129. Nondurable materials n.e.c............. 5.41 110.3 112.5 108.3 110.7 108.6 111.3 109.0 106.8 107.4 108.8 110.0 111.2 112.7 114. Fuel and power, industrial................. 2.89 116.3 119.9 111.6 118.0 118.5 97.9 105.3 119.2 119.4 119.6 119.6 121.8 120.0 119. Supplementary groups Home goods and clothing................... 9.34 107.4 111.2 100.9 110.2 113.4 116.3 109.7 101.4 108.5 114.2 114.1 118.7 113.3 119. Containers............................................ 1.82 116.8 119.2 113.1 121.3 120.2 123.6 118.3 111.9 114.0 123.3 120.3 127.9 125.3 128. For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967= 100) p 19 r 6 o 7 ­ a 1 v 9 e 7 r 1 ­ 1971 1972 Grouping p ti o o r n ­ age* June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. r May r June* Manufacturing, total............................ 88.55 105.2 108.7 100.3 103.5 108.8 109.7 106.8 102.7 104.7 109.0 110.5 112.7 112.5 115.0 Durable............................................ 52.33 99.4 103.3 93.7 94.3 101.0 102.4 99.8 91.1 99.2 103.8 105.5 107.5 107.5 108.6 Nondurable...................................... 36.22 113.6 116.5 109.9 116.8 120.0 120.2 116.8 110.9 112.6 116.4 117.8 120.2 119.8 124.2 Mining and utilities............................... 11.45 118.9 120.1 121.3 123.5 122.8 114.2 113.9 118.1 121.0 121.1 120.7 120.4 120.0 122.9 Mining.............................................. 6.37 107.0 110.8 103.0 107.9 106.5 97.9 101.8 107.5 104.7 105.4 106.4 108.8 109.5 110.3 Utilities............................................. 5.08 133.9 131.7 144.2 143.0 143.4 134.7 129.1 131.5 141.5 140.8 138.7 134.9 133.2 138.8 Durable manufactures Primary and fabricated metals............ 12.55 104.0 111.2 96.2 90.2 99.1 101.6 98.9 98.0 102.8 109.4 112.6 114.3 115.4 114.1 Primary metals................................. 6.61 100.9 112.6 88.5 76.4 91.1 94.5 90.2 89.4 101.0 108.6 113.5 117.2 118.2 114.5 Iron and steel, subtotal................ 4.23 96.6 109.0 90.4 62.1 81.9 86.2 80.7 81.3 93.7 101.3 107.4 113.2 113.2 107.9 Fabricated metal products.............. 5.94 107.5 109.6 104.8 105.5 107.9 109.5 108.6 107.6 104.8 110.2 111.5 111.1 112.2 113.7 32.44 94.9 97.3 89.2 91.0 98.0 99.2 96.7 93.7 95.8 99.1 100.2 102.3 101.7 103.2 17.39 96.2 97.7 93.1 93.5 100.4 100.6 98.1 95.6 97.8 101.7 102.2 103.4 102.9 105.2 Nonelectrical machinery.............. 9.17 94.3 95.3 93.6 92.0 98.6 97.1 95.0 93.7 93.9 99.4 100.2 99.8 100.9 103.9 Electrical machinery.................... 8.22 98.3 100.4 92.6 95.2 102.5 104.4 101.5 97.7 102.1 104.3 104.5 107.4 105.1 106.6 Transportation equipment.............. 9.29 92.9 97.5 79.0 84.4 94.8 99.0 95.4 90.3 94.0 97.5 99.0 103.8 101 .6 101.0 Motor vehicles and parts............ 4.56 114.1 122.8 88.0 98.0 116.6 124.8 119.8 110.8 119.1 123.3 123.8 131.8 127.8 126.3 Aerospace and misc. trans. eq. .. 4.73 72.5 73.2 70.4 71.2 73.8 74.1 71.9 70.6 69.8 72.6 75.0 76.8 76.3 76.7 Instruments...................................... 2.07 108.5 110.8 110.9 111.4 114.9 114.4 111.0 109.2 108.1 111.2 112.3 112.5 116.1 120.9 Ordnance, private and Govt........... 3.69 86.1 87.5 84.3 84.5 84.9 84.7 85.0 84.8 83.7 84.0 87.1 87.3 87.8 89.4 Lumber, clay, and glass....................... 4.44 111.5 117.4 111.5 116.7 117.6 118.6 113.5 107.1 105.9 112.3 115.9 118.5 120.4 124.1 Lumber and products..................... 1.65 113.9 118.4 113.2 118.5 120.4 122.6 116.2 109.3 111.1 119.5 121.5 122.1 121.8 125.8 Clay, glass, and stone products---- 2.79 110.0 116.8 110.5 115.6 115.9 116.3 111.9 105.8 102.8 108.1 112.5 116.3 119.6 123.0 Furniture and miscellaneous................. 2.90 111.7 114.3 106.2 114.6 118.1 117.3 117.5 115.2 111. 3 118.4 118.8 119.1 118.1 121.8 Furniture and fixtures..................... 1.38 102.1 103.5 91.1 103.5 106.4 104.8 108.6 106.9 106.2 113.7 112.7 111.6 108.7 111.1 Miscellaneous manufactures........... 1.52 120.5 124.1 120.0 124.8 128.8 128.7 125.6 122.7 116.0 122.8 124.4 125.9 126.6 131.5 Nondurable manufactures Textiles, apparel, and leather............. 6.90 100.7 104.6 90.8 104.4 105.0 107.5 101.3 92.6 100.4 105.4 106.7 109.9 104.0 109.9 Textile mill products....................... 2.69 108.6 114.1 97.0 114.5 113.6 113.8 111.0 101.9 106.6 110.3 114.0 115.9 115.8 118.5 Apparel products............................. 3.33 97.8 100.8 89.9 100.4 102.4 106.7 98.1 87.7 98.4 105.3 105.0 109 5 98.8 Leather and products...................... .88 87.4 89.9 75.4 88.8 88.1 91.5 83.9 83.0 88.9 90.6 90.4 93.3 87.3 91.5 Paper and printing............................... 7.92 107.8 108.4 105.1 111.4 113.3 115.2 112.0 104.9 105.2 109.9 111.2 112.9 113.2 115.3 Paper and products......................... 3.18 115.8 116.3 105.5 117.3 115.9 123.0 120.2 110.8 120.7 125.9 125.3 128.1 126.4 125.2 Printing and publishing................... 4.74 102.5 103.1 104.9 107.5 111.5 109.9 106.5 100.9 94.8 99.2 101.7 102.7 104.4 108.6 Chemicals, petroleum, and rubber....... 11.92 124.8 129.4 122.3 126.8 130.9 130.1 129.1 125.9 126.0 131.1 132.5 135.8 137.8 142.4 Chemicals and products.................. 7.86 126.4 132.2 125.2 128.7 133.3 131.0 131.3 127.7 126.6 132.0 134.1 138.9 140.5 145.6 Petroleum products......................... 1.80 115.7 119.1 118.9 120.9 118.9 117.8 115.2 116.5 114.4 115.0 113.5 112.1 118.4 122.9 Rubber and plastics products......... 2.26 126.0 127.7 114.9 124.7 131.9 136.7 132.3 126.9 133.0 140.8 142.2 144.1 144.0 146.6 Foods and tobacco............................... 9.48 113.7 115.9 112.3 117.8 122.9 121.2 116.8 110.4 110.8 111.4 112.9 114.2 114.1 119.1 Foods................................................ 8.81 114.9 117.2 114.3 118.7 124.1 122.4 118.2 112.8 111.3 111.8 113.7 115.3 115.3 120.1 Tobacco products............................ .67 97.7 98.5 86.2 105.7 106.5 106.1 99.0 78.7 103.6 105.5 102.1 99.4 98.1 Mining Metal, stone% and earth minerals......... 1.26 104.6 118.3 97.2 104.1 104.1 105.8 103.9 100.5 93.1 95.4 98.0 105.3 110.3 110.3 Metal mining................................... .51 121.4 147.7 106.6 116.9 118.7 117.9 114.8 111.3 105.8 113.8 114.4 123.5 130.9 132.9 Stone and earth minerals................ .75 93.2 98.3 90.9 95.4 94.2 97.6 96.6 93.1 84.4 82.8 86.8 92.8 96.3 95.0 5.11 107.6 109.0 104.5 108.8 107.1 95.9 101.3 109.2 107.6 107.9 108.5 109.7 109.3 110.3 Coal.................................................. .69 99.8 110.4 83.7 117.9 113.9 31.5 56.9 111.7 105.1 99.9 102.7 114.9 106.9 105.2 Oil and gas extraction..................... 4.42 108.9 108.8 107.8 107.4 106.1 106.0 108.2 108.8 108.0 109.2 109.4 108.9 109.7 111.1 Utilities Electric.................................................. 3.91 138.1 134.6 151.3 150.0 150.8 139.9 132.8 136.2 146.6 145.8 143.5 138.5 136.4 143.5 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 □ AUGUST 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 Market du I s n t ­ ry p u a t C i c l a i i z ­ t a y ­ 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 c o n t n s ­ T m p e o e l m o t n a y t ­ l — ­ i p m E lo m en 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 m d l o e i l t ­ e y ­ Total sumerEquip­ prod­ goods ment ucts 1952. 92.8 74.1 93.4 54.5 52 79.5 88.6 1953. 95.5 76.3 98.2 60.3 54 80.1 87.4 1954. 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960. 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 1967r. 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 '78. 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 r75.0 132.0 107.4 94.3 116.9 122 121.2 113.9 —June......... 107.4 106.2 104.6 116.1 88.5 112.2 109.3 106.0 s'75.6 147.0 107.3 94.3 117.7 129 121.5 114.3 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.......... 105.6 106.1 104.8 115.9 89.5 110.9 104.8 104.2 r74.7 153.0 107.1 93.5 116.5 133 122.1 114.9 Sept.......... 107.1 107.0 105.5 116.7 89.8 112.3 107.3 105.7 156.0 107.6 94.5 117.0 135 122.2 114.5 Oct........... 106.8 107.0 105.4 116.6 89.8 113.2 106.6 106.1 137.0 107.6 94.1 117.8 134 122.4 114.4 Nov.......... 107.4 107.9 106.1 118.0 89.6 114.3 106.5 106.0 '74.6 155.0 107.9 94.4 118.4 136 122.6 114.5 Dec........... 108.1 108.0 106.2 118.0 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.......... '1 11.2 '110.1 '108.2 '119.6 '92.4 '117.3 '113.1 '109.7 159.0 109.4 95.6 125.8 139 124.0 117.4 Apr........... '112.8 '111.4 '109.8 '122.0 '92.7 '117.3 '115.0 '111.8 167.0 109.7 96.2 128.7 139 124.3 117.5 May......... '113.2 '112.1 '110.1 '122.1 '93.4 '119.3 '115.2 '112.2 r77.3 165.0 '110.2 96.8 '129.4 '142 124.7 118.2 June......... 113.3 111.9 110.1 122.2 93.0 118.8 115.7 112.1 154.0 110.3 97.0 130.7 140 125.0 118.8 July**........ 113.6 112.0 110.2 122.2 93.4 119.1 116.2 112.6 110.2 96.5 129.4 119.7 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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total construction 1......................... 67,097 78,878 8,077 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607 7,284 8,100 9,907 8,478 By type of ownership: Public........................................ 23,362 24,183 2,795 2,683 2,299 2,010 1,837 1,960 1,696 2,137 1,634 1,686 1,741 2,574 2,517 Private 1.................................... 45,058 56,408 5,489 4,987 5,413 4,804 4,731 4,445 4,590 4,097 3,973 5,598 6,359 6,524 5,960 By type of construction: Residential building 1.............. 24,910 35,226 3,485 3,357 3,255 3,196 3,170 3,001 2,997 2,667 2,664 3,617 3,971 4,428 Nonresidential building........... 24,180 26,577 2,800 2,621 2,120 2,246 2,064 2,128 1.959 1,728 1,799 2,187 2,182 2,908 Nonbuilding............................. 18,489 20,509 1,792 1,691 2,337 1,371 1,332 1,274 1.959 1,840 1,144 1,480 1,947 1,762 Private housing units authorized... 1,324 1,885 1,849 2,052 2,006 1,900 2,173 1,961 2,292 2,105 2,078 1,928 1,928 '1,958 2,079 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a ­ l Total Buildings Other Total M ta i r l y i­ H w ig ay h­ d C v e o a v n t & e i s o l e o n r p ­ ­ Other 2 Indus­ Com­ Other ment trial mercial build- 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 * .... 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—June, 109,210 79,941 42,326 37,615 5,508 11,795 5,815 14,497 29,269 865 1,614 July. 109,801 80,328 42,533 37,795 5,428 12,690 5,499 14,178 29,473 1,142 2,150 Aug. 111,778 81,939 43,795 38,144 4,852 13,069 5,482 14,741 29,839 900 1,609 Sept. 110,319 81,730 45,027 36,703 4,597 11,702 5,591 14,813 28,573 786 1,570 Oct.. 114,748 82,905 46,135 36,770 4,993 11,510 5,372 14,895 31,843 881 1,540 Nov. 115,186 84,764 46,841 37,923 4,885 12,188 5,670 15,180 30,422 938 1,697 Dec., 117,017 85,989 47,741 38,248 4,914 12,391 5,770 15,173 31,028 918 1,454 1972—Jan.. 120,763 88,580 49,587 38,993 4,936 13,272 5,734 15,051 32,183 985 1,943 Feb.. 121,728 90,812 51,907 31,905 4,674 13,247 5,583 15,401 30,916 1,002 1,804 Mar. 122.968 92,586 53,109 39,477 4,796 13,243 5.993 15,445 30,382 1,186 1,919 Apr. 120,634 91,686 52,766 38,920 4,649 13,411 5.765 15,095 28,948 965 1,644 May 122,381 92,558 52,424 40,134 4,723 14,132 5.766 15,513 29,823 980 1,967 June 123,287 93,278 52,979 40,299 4,989 13,738 6,249 15,323 30,009 1,081 2,195 1 Includes religious, educational, hospital, institutional, and other build- 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R ■0 Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 am - o r o i e l r y - Total Private Public Total FHA VA 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—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............... 2,369 360 363 1,049 597 1,302 139 928 206 204 2 49 38 11 49 Apr.T............ 2,109 244 335 1,086 444 1,167 146 796 213 212 2 38 29 9 53 2,331 271 561 1,019 480 1,332 125 874 226 224 2 43 34 9 52 June.............. 2,298 332 449 976 541 1,288 138 872 223 220 3 43 33 10 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 Admiii. and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 EMPLOYMENT □ AUGUST 1972 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a 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 Employed1 Unem­ U ( n p e e m r r m a e t c p e n e 2 l t n o t y ; ­ Total In c n u o lt n u a r g al r i- In ployed S.A.) industries agriculture 1966... 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967 3. 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 1968. . 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969... 137,841 53,602 84.240 80,734 77,902 74,296 3,606 2,832 3.5 1970... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1971—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 July................I 145,854 54,850 88,855 86,467 81,682 78,237 3,445 4,785 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) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ t T l i i o r c a n n u s & ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 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—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.............................................. 72,558 18,973 602 3,256 4,539 15,671 3,921 12,303 13,293 June*............................................ 72,647 18,995 598 3,242 4,532 15,729 3,934 12,358 13,529 July*............................................ 72,565 18,898 597 3,153 4,520 15,730 3,923 12,449 13,295 NOT SEASONALLY ADJUSTED 1971—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.............................................. 72,533 18,824 602 3,246 4,521 15,592 3,913 12,401 13,434 June*............................................ 73,361 19,137 612 3,401 4,582 15,788 3,965 12,519 13,357 July*............................................ 72,413 18,766 613 3,399 4,579 15,703 3,986 12,573 12,794 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

AUGUST 1972 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonallyadjusted1 Not seasonally adjusted1 Industry group 1971 1972 1971 1972 July May June* July? July May June? July* 13,440 13,852 13,884 13,802 13,315 13,723 14,005 13,639 Durable goods................................................................. 7,594 7,886 7,897 7,872 7,512 7,852 7,987 7,750 Ordnance and accessories...................................... 93 92 95 96 92 91 94 95 Lumber and wood products.................................. 500 523 523 526 516 520 543 543 Furniture and fixtures............................................ 380 403 406 405 371 399 406 396 Stone, clay, and glass products............................. 496 523 524 522 508 521 537 535 Primary metal industries........................................ 965 977 969 962 976 983 991 973 Fabricated metal products..................................... 1,016 1,054 1,054 1,061 999 1,044 1,065 1,043 Machinery............................................................... 1,156 1,207 1,216 1,218 1,151 1,211 1,228 1,214 Electrical equipment and supplies......................... 1,169 1,237 1,246 1,222 1,153 1,220 1,242 1,205 Transportation equipment..................................... 1,244 1,272 1,258 1,256 1,181 1,271 1,271 1,153 Instruments and related products......................... 257 268 273 270 255 267 273 268 Miscellaneous manufacturing industries............... 318 330 333 334 310 326 335 326 5,846 5,966 5,987 5,930 5,803 5,871 6,018 5,889 Food and kindred products................................... 1,188 1,177 1,190 1,186 1,213 1,114 1,182 1,211 Tobacco manufactures........................................... 56 62 62 63 49 53 54 55 Textile-mill products.............................................. 841 874 875 870 831 870 887 859 Apparel and related products............................... 1,179 1,191 1,186 1,157 1,135 1,188 1,200 1,115 Paper and allied products...................................... 515 540 541 538 516 535 550 539 Printing, publishing, and allied industries........... 661 669 667 662 658 665 667 659 Chemicals and allied products.............................. 582 581 585 582 584 581 590 585 Petroleum refining and related industries............. 115 116 116 116 120 116 120 121 Rubber and misc. plastic products......................... 450 485 494 491 443 480 496 483 Leather and leather products................................. 259 271 271 265 255 269 275 261 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 July May June35 July* July May June* July* July May June* July* Total.................................................................. 40.0 40.5 40.7 40.7 142.09 153.50 155.01 153.50 3.57 3.79 3.79 3.79 40.4 41.2 41.4 41.3 151.98 166.04 168.06 164.82 3.79 4.03 4.04 4.02 Ordnance and accessories.......................... 41.9 42.0 42.2 42.7 160.66 170.94 173.42 173.03 3.89 4.07 4.09 4.11 Lumber and wood products...................... 40.5 40.9 41.2 41.1 128.88 135.88 138.03 135.71 3.19 3.29 3.31 3.31 Furniture and fixtures................................ 40.1 40.6 40.9 40.8 115.53 121.81 125.36 123.62 2.91 3.03 3.05 3.06 Stone, clay, and glass products................. 41.8 41.8 42.2 42.3 155.40 162.54 165.33 166.18 3.70 3.87 3.89 3.91 Primary metal industries............................ 40.6 41.4 41.5 41.4 170.53 191.73 193.95 192.98 4.19 4.62 4.64 4.65 Fabricated metal products......................... 40.7 41.1 41.2 41.5 150.72 162.76 165.17 163.17 3.74 3.96 3.98 3.97 Machinery................................................... 40.7 41.7 42.2 42.2 161.20 176.81 179.77 176.81 4.00 4.24 4.26 4.24 Electrical equipment and supplies............. 40.1 40.4 40.5 40.5 139.00 147.50 149.37 147.60 3.51 3.66 3.67 3.69 Transportation equipment......................... 39.5 42.0 42.0 40.9 172.97 199.55 199.13 190.94 4.39 4.74 4.73 4.68 Instruments and related products............. 39.8 40.7 40.7 40.4 140.23 150.66 151.37 149.17 3.55 3.72 3.71 3.72 Miscellaneous manufacturing industries... 39.2 39.3 39.5 39.2 113.48 121.13 121.97 118.89 2.94 3.09 3.08 3.08 Nondurable goods............................................... 39.3 39.7 39.8 39.8 129.63 135.88 137.66 138.85 3.29 3.44 3.45 3.48 Food and kindred products....................... 40.2 40.4 40.6 40.7 137.63 144.72 146.11 147.55 3.39 3.60 3.59 3.59 Tobacco manufactures............................... 39.6 33.9 34.3 34.0 130.87 116.25 122.50 116.27 3.33 3.47 3.52 3.45 Textile-mill products.................................. 40.3 41.3 41.5 41.3 102.66 111.38 113.42 111.79 2.56 2.71 2.72 2.72 Apparel and related products................... 35.8 35.6 35.9 36.2 88.43 91.49 93.24 93.76 2.47 2.57 2.59 2.59 Paper and allied products.......................... 42.4 42.6 42.9 42.8 157.30 164.90 168.17 169.49 3.71 3.88 3.92 3.96 Printing, publishing, and allied industries. 37.6 37.7 38.0 38.2 158.30 167.70 169.48 171.52 4.21 4.46 4.46 4.49 Chemicals and allied products................... 41.4 41.6 42.0 42.0 164.79 173.06 176.40 177.24 3.99 4.16 4.20 4.23 Petroleum refining and related industries . 42.6 41.6 42.2 42.1 197.80 209.81 209.95 211.23 4.60 4.96 4.94 4.97 Rubber and misc. plastic products............ 40.3 41.2 41.5 40.9 137.94 146.32 148.57 147.74 3.44 3.56 3.58 3.63 Leather and leather products..................... 37.7 38.7 38.5 37.6 98.56 104.88 105.57 102.87 2.58 2.71 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 □ AUGUST 1972 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow om ne e r - - F a o u n i e d l l e G a l n e a d c s ­ n i a n i n s g h d s ­ up a k n e d ep p t o io rt n a­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O o a t n o h d d e s r 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—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............... fl22.1 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 fl 19.3 123.1 130.0 117.5 119.7 121.8 Sept............... fl22.2 119.1 125.5 116.1 135.1 117.8 115.7 119.4 120.6 f118.6 123.6 130.4 117.6 120.5 122.4 Oct................ fl22.4 118.9 125.9 116.4 135.7 117.8 115.7 119.5 121.6 f 119.3 123.5 129.6 117.9 120.5 122.6 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 June.............. 125.0 123.0 129.0 118.8 139.6 117.8 120.3 121.0 122.1 120.0 126.1 132.4 120.0 122.9 125.6 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers, t Reflects effect of refund of Federal excise tax on new cars. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Pro­ 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 o a e s n o e s d d d e s d s Total T t e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c m M a q e h n e r u i a y n n d i ­ p ­ t ­ F t e u u t r r c n e . , i­ N t e m m a r o l a i e l n n l i ­ s c ­ ­ T e p m t q r o i a e o u r n n n i t p a s t ­ ­ 1 ­ n c M e e o l i l s u a ­ s ­ 1960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961............................. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962............................. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963............................. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964............................. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969............................. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8105.2 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—July.................. 114.6 113.4 116.0 114.5 109.2 114.2 114.4 104.4 109.7 130.6 110.5 119.4 115.7 110.0 123.3 110.3 112.8 Aug................... 114.9 113.2 115.4 115.1 109.7 114.4 114.8 104.3 109.8 134.6 110.6 121.1 116.1 110.2 124.2 110.5 113.0 Sept................... 114.5 110.5 114.6 115.0 109.7 114.7 115.3 104.3 109.7 134.3 110.6 121.1 116.0 110.2 124.2 109.6 113.0 Oct.................... 114.4 111.3 114.1 115.0 109.6 114.7 114.8 104.2 109.5 131.8 110.6 121.0 116.0 110.2 124.1 110.7113.0 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.................... 116.3 117.8 117.2 115.9 111.3 117.8 116.0 103.4 109.5 134.9 110.8 121.4 116.5 110.2 124.3 113.4 113.7 Feb................... 117.3 120.7 118.8 116.5 112.0 119.1 116.1 103.5 109.2 137.7 111.6 122.6 117.1 110.8 124.6 113.6114.0 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................... 117.5 119.1 117.7 117.3 112.6 127.2 116.9 104.1 108.7 141.1 112.8 123.5 117.6 111.0 125.6 113.7 114.1 May................. 118.2 122.2 118.6 117.6 113.3 129.5 117.5 104.4 108.8 142.7 113.2 123.6 117.9 111.1 125.9 113.8114.1 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 July................... 119.7 128.0 121.5 118.1 114.0 131.6 118.6 104.2 109.2 146.1 113.7 123.5 118.3 111.4 126.2 114.1 114.9 1 For transportation equipment, Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967=100) 1972 1971 1972 Group Group July May June July July May June July Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 109.3 120.6 121.7 129.9 Pulp, paper and products, excluding Grains.................................................... 102.5 97.5 94.5 96.3 building paper and board........... 110.8 113.4 113.8 114.0 Livestock.............................................. 121.3 139.8 146.4 152.4 Woodpulp........................................ 112.4 111.5 111.5 111.5 Live poultry.......................................... 121.1 96.3 102.9 118.4 Wastepaper...................................... 111.8 130.5 137.7 137.7 Plant and animal fibers....................... 92.6 130.1 127.3 125.4 Paper................................................ 114.6 115.9 116.2 116.7 Fluid milk............................................. 119.5 122.5 121.7 122.0 Paperboard...................................... 102.8 105.8 106.0 106.0 Eggs....................................................... 89.4 90.6 91.9 102.2 Converted paper and paperboard.. 110.1 113.3 113.5 113.7 Hay and seeds...................................... 114.4 116.9 116.9 116.8 Building paper and board.............. 103.6 106.5 106.6 106.8 Other farm products............................ 113.3 119.5 119.9 121.8 Processed foods and feeds: Metals and metal products: Cereal and bakery products................ 111.5 113.3 113.3 113.6 Meat, poultry, and fish....................... 119.6 126.8 131.4 135.8 Iron and steel................................. 121.9 128.3 128.1 128.3 Dairy products..................................... 116.2 117.4 115.3 117.7 Steelmill products......................... 123.4 130.7 130.4 130.3 Processed fruits and vegetables......... 115.9 119.0 119.5 119.6 Nonferrous metals......................... 116.9 117.8 117.6 116.8 Sugar and confectionery.................... 119.4 120.8 121.3 122.2 Metal containers.......................... 123.0 127.3 128.8 129.9 Beverages and beverage materials 115.9 117.2 117.8 117.9 Hardware....................................... 116.7 120.2 120.4 120.5 Animal fats and oils........................... 135.7 127.3 125.8 124.1 Plumbing equipment..................... 117.9 119.0 119.7 119.7 Crude vegetable oils........................... 136.7 112.8 112.0 106.9 Heating equipment....................... 115.9 118.1 118.6 119.0 Refined vegetable oils........................ 135.5 119.6 119.1 115.8 Fabricated structural metal products 118.2 122.0 122.2 122.2 Vegetable oil end products................ 122.8 120.7 121.5 121.4 Miscellaneous metal products.... 119.3 124.4 124.4 124.2 Miscellaneous processed foods.......... 113.8 115.0 114.4 114.4 Manufactured animal feeds............... 106.9 108.4 107.7 110.9 Textile products and apparel: Machinery and equipment: Cotton products................................. 111.9 121.5 122.6 123.0 Agricultural machinery and equip... 117.4 122.3 122.7 122.7 Wool products.................................... 92.6 98.3 99.2 100.0 Construction machinery and equip.. 121.6 125.6 125.9 125.9 Manmade fiber textile products 101.9 108.0 108.6 108.9 Metalworking machinery and equip 117.7 120.0 120.2 120.5 Apparel............................................... 113.3 114.3 114.4 115.1 General purpose machinery and Textile housefumishings.................... 104.8 109.3 109.5 109.5 equipment...................................... 119.8 122.2 122.7 122.9 Miscellaneous textile products.......... 119.9 129.8 125.8 122.6 Special industry machinery and equipment...................................... 121.6 123.5 123.7 123.9 Hides, skins, leather, and products: Electrical machinery and equip........ 109.5 110.5 110.6 110.7 Miscellaneous machinery................. 117.3 120.3 120.7 120.8 Hides and skins.................................. 114.0 200.3 204.1 212.5 Leather................................................ 114.4 137.8 138.6 138.1 Footwear............................................. 116.8 124.6 125.8 126.5 Other leather products....................... 108.2 115.3 116.7 116.5 Furniture and household durables: Fuels and related products, and power: Household furniture....................... 115.3 117.1 117.2 117.4 Commercial furniture..................... 118.1 119.4 119.5 119.8 Coal..................................................... 182.9 191.2 191.2 191.2 Floor coverings............................... 98.2 98.2 98.6 98.8 Coke.................................................... 150.5 155.3 155.3 155.3 Household appliances..................... 107.0 107.2 107.1 107.3 Gas fuels............................................. 107.7 113.0 112.9 113.2 Home electronic equipment............ 93.9 92.9 92.6 92.4 Electric power.................................... 113.5 121.2 121.5 122.1 Other household durable goods.. . 121.6 125.0 125.4 126.4 Crude petroleum................................. 113.2 113.2 113.2 113.2 Petroleum products, refined.............. 107.2 107.3 108.5 109.1 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals........................... 102.4 101.4 101.4 101.5 Flat glass.......................................... 122.5 121.5 121.1 121.8 Prepared paint.................................... 115.9 118.3 118.3 118.3 Concrete ingredients....................... 123.3 126.7 126.8 126.9 Paint materials................................... 99.8 103.5 103.9 104.2 Concrete products........................... 121.5 125.1 125.3 126.0 Drugs and pharmaceuticals............... 102.6 102.8 103.1 103.2 Structural clay products excluding Fats and oils, inedible....................... 130.8 116.0 115.9 113.2 refractories................................... 114.5 117.2 117.4 117.5 Agricultural chemicals and products. 93.4 92.1 92.3 91.9 Refractories..................................... 126.9 127.1 127.1 127.1 Plastic resins and materials................ 88.6 88.6 87.9 87.9 Asphalt roofing............................... 131.2 131.2 131.2 131.2 Other chemicals and products.......... 112.5 114.1 113.8 113.3 Gypsum products............................ 112.7 113.4 113.9 115.7 Glass containers.............................. 131.5 136.2 136.2 136.4 Rubber and plastic products: Other nonmetallic minerals............ 125.6 128.4 127.4 127.1 Rubber and rubber products............ 113.2 113.0 113.3 113.8 Crude rubber................................... 98.8 98.6 98.6 98.8 Tires and tubes............................... 111.2 108.4 108.7 109.5 Transportation equipment: Miscellaneous rubber products---- 118.7 120.4 120.8 121.3 Plastic construction products (Dec. Motor vehicles and equipment. 114.7 118.1 118.5 118.4 1969 = 100)...................................... 94.0 93.3 93.5 93.3 Railroad equipment................... 121.5 129.6 129.6 130.2 Unsupported plastic film and sheeting (Dec. 1970=100)............................ 100.6 98.5 98.1 98.2 Laminated sheets, high pressure (Dec. 1970=100)............................ 99.7 98.4 97.9 98.3 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................. 112.6 114.1 114.4 114.5 Lumber................................................ 142.5 157.0 159.0 161.6 Tobacco products........................... 116.6 117.5 117.5 117.5 Millwork............................................. 122.8 127.6 128.4 129.6 Notions............................................ 111.7 111.7 111.7 111.7 Plywood.............................................. 111.7 130.3 131.7 132.9 Photographic equipment and supplies 106.2 106.2 106.2 106.3 Other wood products......................... 119.0 122.7 123.4 125.6 Other miscellaneous products.... 112.4 114.9 115.2 117.4 Note.—Bureau of Labor Statistics indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 NATIONAL PRODUCT AND INCOME □ AUGUST 1972 GROSS NATIONAL PRODUCT (In billions of dollars) 1971 1972 Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 1 11 III IV I II* Gross national product........................................ 103.1 55.6 124.5 284.8 793.9 864.2 930.3 976.41050.41043.01056.91,078.11,109.11,139.0 101.4 57.2 120.1 278.0 785.7 857.1 922.5 971.51046.71036.41055.61,076.41,108.61,134.7 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 492.1 536.2 579.5 616.8 664.9 660.4 670.7 680.5 696.1 712.5 9.2 3.5 9.6 30.5 73.1 84.0 90.8 90.5 103.5 101.9 106.1 106.1 111.0 113.6 37.7 22.3 42.9 98.1 215.0 230.8 245.9 264.4 278.1 277.2 278.5 283.4 288.3 296.3 30.3 20.1 28.1 62.4 204.0 221.3 242.7 261.8 283.3 281.3 286.1 290.9 296.7 302.6 16.2 1.4 17.9 54.1 116.6 126.0 139.0 137.1 152.0 153.0 152.2 158.8 168.1 176.8 14.5 3.0 13.4 47.3 108.4 118.9 131.1 132.2 148.3 146.4 150.9 157.2 167.7 172.6 10.6 2.4 9.5 27.9 83.3 88.8 98.5 100.9 105.8 105.0 106.3 109.8 116.1 120.1 Structures.................................................. 5.0 .9 2.9 9.2 28.0 30.3 34.2 36.0 38.4 38.3 38.7 38.8 41.3 41.5 5.6 1.5 6.6 18.7 55.3 58.5 64.3 64.9 67.4 66.7 67.6 71.0 74.8 78.7 Residential structures.................................. 4.0 .6 3.9 19.4 25.1 30.1 32.6 31.2 42.6 41.4 44.5 47.3 51.6 52.4 3.8 .5 3.7 18.6 24.5 29.5 32.0 30.7 42.0 40.9 43.9 46.7 51.0 51.8 Change in business inventories..................... 1.7 — 1.6 4.5 6.8 8.2 7.1 7.8 4.9 3.6 6.6 1.3 1.7 .4 4.3 1.8 -1.4 4.0 6.0 7.5 6.9 7.7 4.8 2.4 5.1 -.2 .8 .1 3.6 1.1 .4 1.3 1.8 5.2 2.5 1.9 3.6 .7 .1 .4 -2.1 -4.6 -4.9 7.0 2.4 5.9 13.8 46.2 50.6 55.5 62.9 66.1 66.7 68.5 63.0 70.7 70.0 5.9 2.0 4.6 12.0 41.0 48.1 53.6 59.3 65.4 66.6 68.2 65.1 75.3 74.9 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 180.1 199.6 210.0 219.0 232.8 229.5 233.6 240.9 249.4 254.6 Federal.......................................................... 1.3 2.0 16.9 18.4 90.7 98.8 98.8 96.5 97.8 96.3 97.9 100.7 105.7 108.2 National defense.......................................... 13.8 14.1 72.4 78.3 78.4 75.1 71.4 71.2 70.1 71.9 76.7 78.6 Other............................................................... 3.1 4.3 18.4 20.5 20.4 21.5 26.3 25 0 27.8 28 7 28 9 29! 6 7.2 6.0 7.9 19.5 89.4 100.8 111.2 122.5 135.0 133.3 135.7 140.2 143‘.7 146.4 1 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 675.2 706.6 725.6| 722.1 741.7 737.9 742.5 754.5 766.5 783.1 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, July 1972, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1971 1972 1929 1933 1941 1950 1967 1968 1969 1970 1971 Item II III IV I IIP National income.................................................... 86.8 40.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 Compensation of employees................................ 51.1 29.5 64.8 154.6 467.2 514.6 566.0 603.8 644.1 639.6 648.0 660.4 682.7 697.5 Wages and salaries....................................... 50.4 29.0 62.1 146.8 423.1 464.9 509.7 541.9 573.5 569.6 576.5 587.3 606.6 619.7 Private............................................................. 45.5 23.9 51.9 124.4 337.3 369.2 405.6 426.8 449.7 447.0 451.6 460.9 475.8 486.9 Military.......................................................... .3 .3 1.9 5.0 16.2 17.9 19.0 19.6 19.4 19.4 18.8 19.4 20.8 20.5 Government civilian.................................... 4.6 4.9 8.3 17.4 69.5 77.8 85.1 95.5 104.4 103.3 106.0 107.0 110.0 112.4 .7 .5 2.7 7.8 44.2 49.7 56.3 61.9 70.7 70.0 71.5 73.0 76.1 77.8 Employer contributions for social in­ surance ....................................................... .1 .1 2.0 4.0 21.9 24.3 27.8 29.7 34.1 33.8 34.3 35.0 37.3 38.0 Other labor income...................................... .6 .4 .7 3.8 22.3 25.4 28.4 32.1 36.5 36.1 37.2 38.0 38.8 39.8 Proprietors’ income............................................... 15.1 5.9 17.5 37.5 62.1 64.2 67.2 66.8 70.0 69.3 70.7 71.8 73.3 73.5 Business and professional.............................. 9.0 3.3 11.1 24.0 47.3 49.5 50.5 49.9 52.6 52.4 53.1 53.8 54.3 54.7 Farm................................................................... 6.2 2.6 6.4 13.5 14.8 14.7 16.7 16.9 17.3 16.9 17.6 18.1 19.1 18.7 Rental income of persons.................................... 5.4 2.0 3.5 9.4 21.1 21.2 22.6 23.3 24.5 24.4 24.8 25.0 25.2 24.4 Corporate profits and inventory valuation adjustment.......................................................... 10.5 — 1.2 15.2 37.7 78.7 84.3 79.8 69.9 78.6 80.1 78.3 79.4 81.8 Profits before tax......................................... 10.0 1.0 17.7 42.6 79.8 87.6 84.9 74.3 83.3 84.5 84.1 83.2 88.2 Profits tax liability........................................ 1.4 .5 7.6 17.8 33.2 39.9 40.1 34.1 37.3 38.6 37.5 35.3 38.8 Profits after tax......................................... 8.6 .4 10.1 24.9 46.6 47.8 44.8 40.2 45.9 45.8 46.6 48.0 49.5 Dividends.................................................. 5.8 2.0 4.4 8.8 21.4 23.6 24.3 24.8 25.4 25.4 25.5 25.2 26.0 26.2 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 25.3 24.2 20.5 15.4 20.5 20.4 21.0 22.7 23.5 .5 -2.1 -2.5 -5.0 -1.1 -3.3 -5.1 -4.4 -4.7 -4.4 -5.8 -3.9 -6.5 -5.5 4.7 4.1 3.2 2.0 24.4 26.9 30.5 34.8 38.5 38.1 39.1 39.7 40.1 40.9 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

AUGUST 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 II III IV Gross national product. 103.1 55.6 124.5 284.8 793.9 864.2 930.3 976.4 1050.41043.01056.91,078.11,109.11,139.0 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 68.9 74.5 81.6 86.3 93.8 92.4 95.0 97.4 99.7 104.8 Indirect business tax and nontax lia­ bility .................................................. 7.0 7.1 11.3 23.3 70.4 78.6 85.9 93.4 101.9 100.3 102.6 105.6 106.7 108.3 Business transfer payments................. .6 .7 .5 .8 3.1 3.4 3.8 4.2 4.6 4.6 4.7 4.7 4.8 4.9 Statistical discrepancy.......................... .7 .6 1.5 -.7 —2.7 -6.1 -4.7 -4.8 -4.9 -5.9 -5.2 -4.1 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 1.4 .7 1.0 1.5 .9 .3 .7 1.2 1.5 Equals: National income.................................. 86.8 40.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 Less: Corporate profits and inventory valu­ ation adjustment............................... 10.5 -1.2 15.2 37.7 78.7 84.3 79.8 69.9 78.6 80.1 78.3 79.4 81.8 Contributions for social insurance---- .2 .3 2.8 6.9 42.4 47.1 54.2 57.7 65.3 64.8 65.7 66.9 71.9 73.1 Excess of wage accruals over disburse­ ments.................................................. .6 .2 .6 1.4 -1.4 -.5 Plus: Government transfer payments.......... .9 1.5 2.6 14.3 48.7 56.1 61.9 75.2 89.0 90.7 90.3 92.1 94.4 95.9 Net interest paid by government and consumers......................................... 2.5 1.6 2.2 7.2 23.6 26.1 28.7 31.0 31.1 31.0 31.1 30.9 30.9 31.8 Dividends.............................................. 5.8 2.0 4.4 8.8 21.4 23.6 24.3 24.8 25.4 25.4 25.5 25.2 26.0 26.2 Business transfer payments................. .6 .7 .5 .8 3.1 3.4 3.8 4.2 4.6 4.6 4.7 4.7 4.8 4.9 Equals: Personal income............................... 85.9 47.0 96.0 227.6 629.3 688.9 750.9! 806.3 861.4 858.1 867.9 881.5 907.0 922.5 Less: Personal tax and nontax payments... 2.6 1.5 3.3 20.7 83.0 97.9 116.5 116.7 117.0 115.2 117.5 123.0 136.5 139.6 Equals: Disposable personal income.............. 83.3 45.5 92.7 206.9 546.3 591.0 634.4 689.5 744.4 742.9 750.4 758.5 770.5 782.9 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 506.0 551.2 596.2 634.7 683.4 678.8 689.4 699.2 714.9 731.5 Personal consumption expenditures. 77.2 45 80.6 191.0 492.1 536.2 579.5 616.8 664.9 660.4 670.7 680.5 696.1 712.5 Consumer interest payments............ 1.5 .5 .9 2.4 13.2 14.3 15.8 16.9 17.6 17.5 17.6 17.7 17.8 18.0 Personal transfer payments to for­ eigners............................................ .3 .2 .2 .5 .7 .9 1.0 1.0 .9 1.1 1.1 1.0 1.0 Equals: Personal saving. 4.2 -.9 11.0 13.1 40.4 39.8 38.2 54.9 60.9 64.1 61.0 59.3 55.7 51.5 Disposable personal income in constant (1958) dollars........................................................... 150.6 112.2 190.3 249.6 477.5 499.0 513.6 533.2 554.7 554.6 556.5 560.9 565.7 570.9 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 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June® Total personal income......................... 806.3 861.4 873.4 862.4 869.1 872.2 874.8 879.4 890.4 898.9 908.5 913.6 919.4 924.0 924.0 Wage and salary disbursements.......... 541.9 572.9 571.8 572.5 577.2 577.9 579.9 583.4 594.3 602.6 609.0 612.4 617.6 619.9 623.2 Commodity-producing industries.. 201.0 206.1 206.4 205.5 205.5 206.9 207.9 208.8 213.1 214.8 217.7 220.1 221.7 222.5 223.0 Manufacturing only...................... 158.3 160.3 160.7 160.0 159.5 160.4 161.3 161.7 165.1 165.8 169.3 171.3 173.3 173.8 174.4 Distributive industries..................... 129.2 138.2 137.6 137.7 139.3 140.2 140.4 140.8 143.8 145.5 148.1 148.0 149.4 149.4 151.2 Service industries............................. 96.7 105.0 104.7 105.7 106.3 106.8 107.5 108.2 109.4 111.2 111.6 112.8 113.9 114.7 115.5 Government..................................... 115.1 123.5 123.1 123.6 126.1 124.0 124.0 125.5 128.0 131.2 131.7 131.5 132.5 133.2 133.6 Other labor income............................. 32.1 36.5 36.6 36.9 37.2 37.5 37.8 38.0 38.3 38.5 38.8 39.1 39.5 39.8 40.1 Proprietors’ income............................. 66.8 69.9 69.6 70.0 70.7 71.3 71.6 71.9 72.0 72.6 73.2 74.2 74.0 74.0 72.5 Business and professional................ 49.9 52.6 52.7 52.8 53.1 53.4 53.6 53.8 53.9 54.0 54.1 54.7 54.9 55.3 54.1 Farm................................................. 16.9 17.3 16.9 17.2 17.6 17.9 18.0 18.1 18.1 18.6 19.1 19.5 19.1 18.7 18.4 Rental income...................................... 23.3 24.5 24.6 24.7 24.9 24.9 24.9 25.0 25.1 25.1 25.2 25.3 25.5 25.6 22.1 Dividends............................................. 24.8 25.4 25.4 25.5 25.6 25.5 25.5 25.5 24.6 26.0 26.1 26.0 26.1 26.3 26.3 Personal interest income..................... 65.8 69.6 69.3 69.8 70.2 70.5 70.5 70.6 70.7 70.8 71.0 71.3 72.0 72.7 73.4 Transfer payments............................... 79.5 93.6 107.3 94.2 94.7 96.1 96.2 96.8 97.6 97.6 100.0 100.1 99.7 100.9 101.7 Less: Personal contributions for social insurance...................................... 28.0 31.2 31.1 31.2 31.4 31.5 31.6 31.8 32.3 34.3 34.7 34.8 35.0 35.1 35.3 Nonagricultural income........................ 782.8 837.2 849.8 838.4 844.7 847.6 850.0 854.5 865.0 873.4 882.4 887.1 893.4 898.3 898.5 Agricultural income.............................. 23.5 24.2 23.6 24.0 24.4 24.6 24.8 24.9 25.4 25.6 26.0 26.5 26.0 25.8 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 □ AUGUST 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 Qlr Funds raised,by type and sector Total funds raised by nonfinancial 1 sectors........................................ 70.4 68.7 83.4 97.8 91.7 101.6 156.3 92.1 91.0 93.8 109.7 142.9 168.9 138.6 1 2 U.S. Government.............................. 1.8 3.6 13.0 13.4 -3.6 12.8 25.5 -6.4 -.6 8.2 17.4 22.3 28.6 5.3 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 3.1 3 4 Budget agency issues.................... .5 1.3 4.1 3.1 -2.4 -.1 -.5 -.5 -1.3 -4.2 1.1 -1.6 .5 2.2 4 5 All other nonfinancial sectors.. 68.6 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 133.3 5 6 Corporate equity shares............... .3 .9 2.4 -.7 4.8 6.8 13.5 1.9 7.6 6.0 7.6 12.7 14.2 10.4 6 7 Debt instruments........................... 68.3 64.1 68.0 85.1 90.6 81.9 117.4 96.6 83.9 79.6 84.7 108.0 126.1 122.9 7 8 Debt capital instruments.......... 38.8 39.0 46.2 51.3 49.0 60.8 87.5 51.8 46.2 52.5 69.2 84.5 90.5 77.7 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 16.7 9 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 11.6 10 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 49.4 11 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 31.8 27.2 12 13 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 8.5 13 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 11.5 14 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 2.2 15 16 Other private credit................... 29.5 25.1 21.8 33.8 41.6 21.1 29.9 44.8 37.8 27.1 15.5 23.4 35.6 45.2 16 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 19.7 17 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 18 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 19 20 Other...................................... 5.7 6.4 5.2 7.3 12.2 8.0 6.9 10.8 13.6 8.8 7.3 9.4 4.5 8.6 20 21 By borrowing sector.................... 68.6 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 133.3 21 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 2.9 22 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 17.8 23 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 47.4 24 25 Nonfinancial business.............. 29.6 34.1 38.1 39.1 50.8 49.5 63.0 50.8 50.7 49.9 49.2 61.6 64.4 65.2 25 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 49.5 26 27 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 11.4 27 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 4.2 28 Private net investment and borrowing in credit markets Total, households and business 1 173.6 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 276.1 1 2 Capital consumption2..,............. 110.3 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 188.7 2 3 Net physical investment................ 63.3 72.7 60.3 68.3 72.7 60.6 74.3 73.2 72.2 61.8 59.4 72.5 76.1 87.4 3 4 58.5 57.3 57.9 71.0 83.3 71.8 104.6 84.9 81.1 71.9 72.1 93.1 115.4 112.6 4 5 Excess net investment3................. 4.9 15.4 2.4 -2.7 -10.6 -11.2 -30.3 -11.7 -8.9 -10.1 -12.7 -20.5 -39.2 -25.2 5 Total business 6 Total capital outlays............... 84.1 97.0 94.0 99.0 109.3 110.1 118.0 106.1 112.4 108.4 111.9 116.9 119.0 129.4 6 7 Capital consumption..................... 50.5 54.2 58.5 63.2 69.5 73.6 80.0 67.9 71.1 72.9 74.2 77.8 82.3 85.5 7 8 Net physical investment............... 33.6 42.8 35.6 35.8 39.7 36.6 37.9 38.1 41.3 35.5 37.6 39.2 36.7 43.9 8 9 Net debt funds raised................... 29.6 33.0 35.8 40.0 46.5 42.7 49.6 49.5 43.4 43.7 41.9 49.2 49.9 54.6 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 14.5 10.5 10 11 4.0 8.7 -2.5 -3.3 -11.1 -12.9 -25.1 -12.6 -9.5 -14.4 -11.6 -22.4 -27.7 -21.3 11 Corporate business 12 Total capital outlays................ 62.8 77.1 72.0 76.2 84.0 84.6 85.2 81.5 86.5 83.0 86.3 85.0 85.5 94.0 12 13 Capital consumption..................... 35.2 38.2 41.5 45.1 49.9 52.7 57.3 48.7 51.1 52.3 53.1 55.6 59.0 61.5 13 14 Net physical investment............... 27.5 38.9 30.5 31.1 34.2 31.9 27.9 32.9 35.4 30.7 33.1 29.4 26.4 32.5 14 15 Net debt funds raised................... 20.6 24.0 27.4 31.6 35.9 33.0 35.1 38.6 33.2 34.9 31.2 34.7 35.6 39.0 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 10.5 16 17 Excess net investment3................. 6.9 13.7 .8 .3 -6.0 -7.9 -20.7 -6.9 -5.1 -10.4 -5.3 -17.6 -23.7 -17.0 17 Households 18 89.6 94.2 94.6 109.7 117.8 115.3 134.9 118.1 117.5 115.9 114.8 130.1 139.8 146.7 18 19 59.9 64.3 69.9 77.2 84.8 91.3 98.5 83.1 86.6 89.6 93.0 96.7 100.3 103.2 19 20 Net physical investment................ 29.7 29.9 24.7 32.5 33.0 24.0 36.4 35.1 30.9 26.3 21.7 33.4 39.4 43.5 20 21 Net funds raised............................ 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 47.4 21 22 .9 6.7 5.0 .6 .5 1.7 -5.2 .9 .6 4.3 -1.2 1.9 -11.5 -3.9 22 Of which: 23 Houses less home mortgages........ -3.3 -.8 -1.3 -2.1 -2.9 -1.9 -8.1 -2.8 -3.1 -1.0 -2.8 -4.2 -11.9 -4.4 23 24 Durables less cons, credit............ 4.7 7.9 7.8 5.6 7.0 5.5 5.7 7.7 6.9 6.4 4.4 8.7 3.5 5.4 24 25 Nonprofit P&E less mortgages... 1.8 2.0 1.9 1.9 2.2 2.2 2.3 2.0 2.4 2.3 2.1 2.3 2.4 2.6 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 7.5 26 1 Capital outlays are totals for residential and nonresidential fixed net amounts raised by households, nonfinancial business, governments, capital, net change in inventories, and consumer durables, except outlays and foreigners. All funds raised by financial sectors are excluded. U.S. by financial business. Government budget issues (line 4) are loan participation certificates 2 Capital consumption includes amounts for consumer durables and issued by CCC, Export-Import Bank, FNMA, and GNMA, together with excludes financial business capital consumption. security issues by FHA, Export-Import Bank, and TVA. Issues by federally 3 Excess of net investment over net funds raised. sponsored credit agencies are excluded as borrowing by financial institu­ tions. Such issues are in U.S. Government securities on p. A-73, line 11. Note.—Capital outlays and capital consumption allowances reflect Corporate share issues are net cash issues by nonfinancial and foreign 1969-72 revisions published in the July 1972 issue of Survey of Current corporations. Mortgages exclude loans in process. Open market paper is Business. commercial paper issued by nonfinancial corporations plus bankers’ Funds raised by type and sector. Credit flows included here are the acceptances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 1968 1969 1970 1971 HI H2 HI H2 HI H2 Q1r 1 Total funds advanced in credit mar­ kets to nonfinancial sectors........ 70.1 67.7 81.0 98.5 86.9 94.7 142.9 90.2 83.3 87.8 102.1 130.2 154.7 128.2 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 27.2 2 3 U.S. Government securities.......... 3.7 3.4 6.8 3.4 .9 15.7 33.4 -2.7 4.5 10.5 21.0 32.4 34.4 20.4 3 4 Residential mortgages.................. .4 2.8 2.1 2.8 4.6 5.7 5.7 3.0 6.3 6.3 5.2 4.2 7.1 5.9 4 5 FHLB advances to S&L’s............ .7 .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -6.0 5 6 Other loans and securities........... 4.1 4.8 4.9 5.1 6.3 5.2 4.8 6.6 6.6 5.7 4.6 6.9 2.8 6.9 6 By agency— 7 U.S. Government.......................... 2.8 4.9 4.6 4.9 2.9 2.8 3.2 2.7 3.7 3.1 2.6 4.4 1.9 2.2 7 8 Sponsored credit agencies............. 2.2 5.1 -.1 3.2 9.0 9.9 2.8 6.2 11.8 11.1 8.7 -1.8 7.4 7.3 8 9 Federal Reserve............................. 3.8 3.5 4.8 3.7 4.2 5.0 8.8 3.7 4.8 2.8 7.2 8.4 9.3 3.8 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 13.9 10 11 Agency borrowing not in line 1. . .. 2.1 4.8 -.6 3.5 8.8 8.7 3.9 7.1 11.0 10.8 6.6 .3 7.4 6.0 11 Private domestic funds advanced 12 Total net advances............................. 63.3 60.6 69.1 89.8 79.9 75.5 105.5 87.3 72.0 73.3 78.0 92.8 117.3 106.9 12 13 U.S. Government securities.......... * 5.4 5.7 13.3 4.6 5.8 -4.0 3.5 6.1 8.6 3.1 -9.9 1.8 -8.7 13 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 16.7 14 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 23.8 23.0 17.1 11.3 15 16 Residential mortgages................... 18.6 11.6 13.1 15.8 15.8 12.9 29.2 18.3 13.3 10.0 15.7 24.7 33.6 29.6 16 17 Other mortgages and loans......... 32.1 28.5 23.5 37.8 43.0 23.8 37.4 46.8 38.5 28.6 19.4 27.2 46.8 52.0 17 18 Less: FHLB advances.................. .7 .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -6.0 18 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 86.1 105.9 105.3 120.9 19 20 Commercial banking.................... 29.1 17.0 35.9 39.0 18.9 31.6 49.8 23.1 14.7 21.6 41.5 49.4 50.0 55.2 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 49.8 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 8.1 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 7.9 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 86.1 105.9 105.3 120.9 24 25 Domestic private deposits............ 38.5 21.2 49.4 46.1 2.5 60.4 92.3 5.0 -.1 32.0 88.8 105.8 78.6 112.3 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 7.2 26 27 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 1.4 27 28 Foreign funds............................ .8 3.7 2.3 2.6 9.3 -8.4 -3.3 14.4 4.2 -3.4 -13.5 -7.6 1.0 1.3 28 29 Treasury balances..................... -1.0 -.5 .2 -.2 * 2.9 2.2 -2.1 2.1 3.4 2.4 -1.6 6.1 -7.9 29 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 3.1 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 4.9 31 Private domestic nonfinancial investors 32 Direct lending in credit mkts............ 7.6 18.9 5.8 21.7 42.7 7.0 4.2 36.4 48.7 29.5 -15.0 -13.3 21.2 -6.8 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 -18.2 33 34 Municipal securities...................... 2.6 2.7 -2.0 .3 6.7 1.4 5.7 6.2 7.2 3.8 -1.1 5.3 6.1 4.2 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 7.1 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 -3.8 36 37 Other.............................................. .8 3.0 2.4 4.2 3.7 4.1 5.0 3.5 3.8 4.3 4.3 3.5 6.2 4.0 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 92.8 110.3 80.9 117.4 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 92.7 39 40 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 24.7 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 19.6 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 5.0 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 96.9 102.1 110.6 43 Memoranda: 44 Public support rate (in per cent) 12.7 17.6 13.9 12.3 18.0 29.4 28.9 11.1 26.0 28.6 30.0 28.9 29.0 21.2 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 89.8 113.1 45 46 Total foreign funds....................... .8 2.1 4.3 2.9 9.0 1.8 23.1 11.8 6.2 4.9 -1.3 19.1 27.1 15.2 46 Corporate equities not included above 1 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 7.9 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 -2.7 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 10.6 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 14.7 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 -6.7 5 Notes 29. Demand deposits at commercial banks. Line 30. Excludes net investment of these reserves in corporate equities. 1. Total funds raised (line 1 of p. A-72) excluding corporate equities. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 11. Funds raised by Federally sponsored credit agencies. includes mortgages. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 42. Mainly an offset to line 9. Also sum of lines 27 through 41 excluding subtotals. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. 17. Includes farm and commercial mortgages. 44. Line 2/line 1. 25, Lines 39 + 41. 45. Line 19/line 12. 26. Excludes equity issues and investment company shares. Includes 46. Lines 10 plus 28. line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign Corporate equities branches, and liabilities of foreign banking agencies to foreign Line affiliates. 1 and 3 Includes issues by financial institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. BALANCE OF PAYMENTS □ AUGUST 1972 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1971 1972 Line Credits+, debits — 1969 1970 1971 I II III IV Ip Summary—Seasonally adjusted 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 Imports.............................................................................. -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 8 Other U.S. investments abroad........................................ 3,199 3,506 3,443 877 833 852 881 930 9 Foreign investments in the United States....................... -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 Balance on current account............................................................... -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 1 -374 181 -335 22 -1,494 -942 -909 -361 -372 -249 73 -388 23 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 Balance on current account and long-term capital 4........................ -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 Claims reported by U.S. nonbanking concerns.............. -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 Allocations of Special Drawing Rights (SDR’s).................. 867 717 180 179 179 179 178 32 -2,470 -1,174 -10,927 -944 -2,586 -5,380 -2,018 480 33 -6,122 -3,851 -22,002 -2,577 -5,721 -9,380 -4,329 -3,112 34 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 Official reserve transactions balance................................................ 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 by U.S. banks........................................................................ -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) <S) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ 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 1971 I II III IV Ip Balances excluding allocations of SDR’s—Seasonally adjusted -6,122 -4,718 -22,719 -2,757 -5,900 -9,559 -4,508 -3,290 2,702 -10,706 -30,482 -5,605 -6,645 -12,110 -6,127 -3,455 Balances not seasonally adjusted 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 -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 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 available. from foreign direct investments in the United States. Note.—Data are from U.S. Department of Commerce, Office of Busi­ ness Economics. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 1969 1970 1971 1972 1969 1970 1971 1972 1969 1970 1971 ^ 1972 3 2,161 3,406 3,733 4,221 32,002 3,223 3,685 4,540 159 183 48 -319 32,266 3,547 3,691 3,806 32,672 3,278 3,546 4,403 -406 269 145 -598 3 3,188 3,376 3,815 3,891 32,982 3,218 3,568 4,475 206 158 247 -584 3 3,318 3,409 3,528 3,760 3 3,183 3,263 3,748 4,460 135 146 -220 -699 33,268 3,661 3,776 3,914 33,257 3,338 3,988 4,466 11 323 -212 -552 33,179 3,730 3,662 3,905 3 3,152 3,266 4,019 4,495 27 465 -350 -590 3,182 3,699 3,493 3,074 3,255 3,793 108 444 -300 3,366 3,592 3,678 3,163 3,346 3,928 203 246 -251 3.341 3,553 4,505 3.078 3.428 4,237 263 125 268 3.342 3,689 2,710 3,192 3,501 3,523 150 188 -815 3,398 3,499 3,160 3,180 3.428 3,379 218 71 -218 3,280 3,570 3,858 3.078 3,404 4,128 202 166 -270 7,615 10,328 11,239 11,917 7,655 9,719 10,799 13,418 -40 609 440 -1,501 9,765 10,800 10,965 11,579 9,591 9,867 11,747 13,421 174 933 -782 -1,842 9,889 10,845 11,675 9,315 10,029 11,958 574 816 -283 10,020 10,758 9,726 9,450 10,333 11,030 570 425 -1,304 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 □ AUGUST 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................................ —M8 -405 -884 -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 Spain.................................. -130 -32 -180 51 Switzerland........................ -81 -50 -2 -30 -50 -25 -50 -75 -50 -50 , United Kingdom,............ *329 618 150 80 -879 -835 Bank for Intl. Settlements. 200 Other................................. -35 -49 16 -47 11 -13 15 -22 , Total. -399 -1,299 -659 -980 -669 969 -204 -796 -85 -448 -263 Canada .,.. 200 150 50 Latin American republics: Argentina ..................... -39 -25 -25 -28 Brazil............................. 25 -3 -23 Colombia....................... 29 7 -1 Venezuela....................... -25 Other.............................. -11 -13 -40 -29 -80 -5 -4 Total. 32 56 -41 -65 -54 -131 -4 Asia: Iraq................ -4 -21 -42 Japan....... -56 -119 Lebanon........ -11 "Hi -95 -35 -35 Malaysia........ -34 -10 -10 Philippines... 25 -1 9 40 -4 -2 "Hi -1 Saudi Arabia. -50 Singapore -81 -30 . Other.............. -13 -6 -14 -14 -22 -75 2-91 21 21 -1 . Total.................... 12 -24 -86 -44 -366 -213 -15 10 -32 All other.............................. -36 -16 -22 3-166 3-68 -81 -1 -4 Total foreign countries........ -392 -36 -1,322 -608 -1,031 -1,118 957 -631 -845 -102 -445 -296 Jntl. Monetary Fund5----- . * — 225 177 22 -3 10 -156 -22 -7 -11 -4 . — 5' Grand total.............. -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -867 -109 -457 -300 -5 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 2 Positive figures represent purchases from the IMF of currencies of a U.S. quota increase, which became effective on Feb. 23, 1966. In figures other members for equivalent amounts of dollars; negative figures repre­ published by the IMF from June 1965 through Jan. 1966, this gold sub­ sent repurchase of dollars, including dollars derived from charges on scription was included in the U.S. gold stock and excluded from the purchases and from other net dollar income of the IMF. The United reserve position. States has a commitment to repurchase within 3 to 5 years, but only to 6 Includes $30 million of Special Drawing Rights. the extent that the holdings of dollars of the IMF exceed 75 per cent of 7 Represents amount payable in dollars to the IMF to maintain the the U.S. quota. Purchases of dollars by other countries reduce the U.S. value of IMF holdings of U.S. dollars. commitment to repurchase by an equivalent amomit. 3 Includes dollars obtained by countries other than the United States Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. from sales of gold to the IMF. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 4 Represents the U.S. gold tranche position in the IMF (the U.S. 1966, to $6,700 million in Dec. 1970, and to $7,274 million in May 1972 as quota minus the holdings of dollars of the IMF), which is the amount a result of the change in par value of the U.S. dollar. Under the Articles of that the United States could purchase in foreign currencies automatically Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo e C u c r r r o i e t r e i i n e b s g n ­ l n e ­ p R I o e M s s i i e n t F r io v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l l 2 d st T o r c e k a 1 sury v c fo C e u c r r i r o e e t r i s i e n b g 5 n ­ l n e ­ p R I o e M s s i i e n t F r io 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 July.... 13,283 10,453 10,332 250 1,433 1,147 1960... 19*359 17^804 17,767 1,555 AJTVuU&s*. •. .• .• 12,128 10,209 10,132 248 *574 1*097 Sept__ 12,131 10,207 10,132 250 577 1 ,*097 1961... 18,753 16,947 16,889 116 1,690 Oct.. . . 12,146 10,207 10,132 259 580 1,100 1962... 17,220 16,057 15,978 99 1,064 Nov.... 12,131 10,206 10,132 243 582 1,100 1963... 16,843 15,596 15,513 212 1,035 Dec__ 812,167 10,206 10,132 8 276 585 1,100 1964... 16,672 15,471 15,388 432 769 1965... 15,450 613,806 613,733 781 6 863 1972 Jan.. . . 12,879 10,206 10,132 276 587 1,810 1966... 14,882 13,235 13,159 1,321 326 Feb.... 12,330 9,662 9,588 276 582 1,810 1967... 14,830 12,065 11,982 2,345 420 Mar__ 12,270 9,662 9,588 212 586 1,810 1968... 15,710 10,892 10,367 3,528 1,290 Apr... . 12,285 9,662 9,588 429 391 1,803 1969... 7 16,964 11,859 10,367 72,781 2,324 May... 913,345 910,490 910,410 469 9428 91,958 1970... 14,487 11,072 10,732 629 1,935 851 June... 13,339 10,490 10,410 457 434 1,958 1971'... 812,167 10,206 10,132 8 276 585 1,100 July. . . 13,090 10,490 10,410 203 439 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 is $828 million (Treasury gold stock $822 million), reserve $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 position in IMF $33 million, and SDR’s $155 million. million on 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 fend of Deriod) U.S. transactions with IMF Transactions by re U se .S rv . e other countries Period with IMF position in IMF P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F 1 T t c f i r o c u o a i r r n e n e r s s i s e g a n 2 i n c n ­ ­ I i M d n o c F i l o n la m n rs e e t P d u o r l c o l h a f a r s s e 3 s pu d r o R c i l h n l e a a ­ r s s es c T ha o n ta g l e Amount P q e U r u o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957............................. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963............................. 1,031 150 60 — 1,666 2,740 2,315 3,090 75 1,035 1964—1966............................. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967......................................... 20 -114 —94 4,740 92 420 1968........................................ -84 20 -806 -870 3,870 75 1,290 1969........................................ 22 19 -1,343 268 -1,034 2,836 55 2,324 1970......................................... 1,155 6712 150 25 -854 741 1,929 4,765 71 1,935 1971......................................... * 1,362 -28 -24 40 1,350 6,115 91 585 1971—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 July.............................. — 5 — 5 6,835 94 439 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 N onliquid 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 abroad6 ported Govt, organi­ by bonds Treas. Treas. by by bonds zations 8 banks and bonds bonds banks banks and in notes3,4 and and in in notes 3 ’7 U.S. notes notes 5 U.S. U.S. 195 7 9 15,825 200 7,917 (10) 3,472 2,252 ( ) 764 195 8 916,845 200 8,665 (10) 3,520 2,430 (10) 1,047 195 9 19,428 500 10,120 9,154 966 4,678 2,940 2,399 541 1,190 1960 ii.......... / \ 2 2 0 1 , , 9 0 9 2 4 7 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 4 4. . 8 81 18 8 2 2 , , 7 7 7 8 3 0 2 2 . . 2 2 3 3 0 0 5 5 4 5 3 0 1 1 , , 5 54 2 1 5 1961 n.......... 1 f2 2 2 2 , , 8 9 5 3 3 6 8 8 0 0 0 0 1 1 1 1 . . 8 8 3 3 0 0 1 1 0 0 . . 9 9 4 4 0 0 8 8 9 9 0 0 5 5 , , 4 4 8 0 4 4 2 2 , , 8 8 7 7 1 3 2 2 , , 3 35 5 5 7 5 5 1 1 6 6 1 1. .9 94 4 8 9 1962 u.......... 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 9 6 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 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1963 n.......... / 1 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 18 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3 . . 0 0 4 4 6 6 3 3 5 4 1 1 1 1, , 9 9 6 6 5 0 1964 ii.......... / \ 2 2 9 9 , , 3 3 1 6 3 4 8 80 00 0 1 1 5 5 , . 7 7 9 8 0 6 1 1 3 3, , 2 22 2 4 0 1 1 . .1 1 2 2 5 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 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 ii.......... / 1 3 3 1 1 , , 1 0 4 2 5 0 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 8 4 9 1 6 1 1 2 2, , 5 4 3 8 9 4 8 8 6 60 0 2 25 5 6 6 3 3 2 28 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 28 8 9 90 0 5 6 1967 ii.......... \ f 3 3 5 5 , , 6 8 6 1 7 9 1 1 . . 0 0 3 33 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 11 1 7 74 4 1 1 1 1 . . 8 8 0 0 7 7 1 1 1 1 , , 0 2 8 09 5 4 4 , , 6 6 8 7 5 8 4 4, , 1 12 2 7 0 5 5 5 5 8 8 6 6 9 7 1 7 1968 n .......... J 1 3 3 8 8 , , 6 4 8 73 7 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 2 2 9 7 7 0 0 1 1 2 2. . 5 5 1 1 8 8 2 2 . . 3 3 4 4 1 1 1 1 4 4 . .4 4 7 7 2 2 4 5 , , 9 05 0 3 9 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 72 2 5 2 [45,755 1.019 15,975 11,054 346 i2 555 i22,515 1.505 23,638 4,464 3,939 525 659 1969 ii......... 145,914 1.019 15,998 11,077 346 555 2,515 1.505 23,645 4,589 4,064 525 663 1970—Dec. ii / 1 4 4 7 6 , , 0 9 0 6 9 0 5 5 6 66 6 2 23 3 , . 7 7 7 8 5 6 1 1 9 9 . . 3 3 3 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 . .0 0 2 2 3 3 6 6 9 95 5 1 1 7 7 , , 1 1 3 6 7 9 4 4 , , 6 6 7 0 6 4 4 4 , , 0 0 2 3 9 9 6 5 4 65 7 8 8 4 4 4 6 1971—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. 13 167,819 544 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... 72,257 54,136 38,741 2,933 8.594 3.723 145 12,433 4,242 3,853 389 1,446 May*. 72,136 53,615 37,857 3,283 8.594 3.723 158 12,820 4,283 3,888 395 1,418 June*. 73,996 54,630 38,632 3,557 8.594 3.723 124 13,409 4,486 4,114 372 1,471 1 Includes (a) liability on gold deposited by the IMF to mitigate the 11 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. 12 Includes $101 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 as 3 Derived by applying reported transactions to benchmark data; follows: liquid, $17 million, and nonliquid, $84 million. breakdown of transactions by type of holder estimated 1960-63. Includes 13 Data on the second line differ from those on first line because cer­ securities issued by corporations and other agencies of the U.S. Govt, tain accounts previously classified as “official institutions” are included which are guaranteed by the United States. with “banks”; a number of reporting banks are included in the series for 4 Includes nonguaranteed securities of U.S. Federally-sponsored agen­ the first time; and U.S. Treasury securities payable in foreign currencies cies, beginning Feb. 1972. issued to official institutions of foreign countries have been increased in 5 Excludes notes issued to foreign official nonreserve agencies. value to reflect market exchange rates as of Dec. 31, 1971. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commer­ Note.—Based on Treasury Dept, data and on data reported to the cial banks abroad and to “other foreigners.” Treasury Dept, by banks and brokers in the United States. Data correspond 7 Includes marketable U.S. Govt, bonds and notes held by commercial generally to statistics following in this section, except for the exclusion banks abroad. of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign 8 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 9 Includes total foreign holdings of U.S. Govt, bonds and notes, for non-negotiable, non-interest-bearing special U.S. notes held by other in­ which breakdown by type of holder is not available. ternational and regional organizations. i o Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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—June............................................................................. 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 Aug.............................................................................. 43,863 26,059 3,474 1,398 11,788 312 832 Sept............................................................................. 45,331 26,634 3,462 1.275 12,872 296 792 Oct............................................................................... 46,574 27,154 3,530 1,344 13,477 276 793 Nov.............................................................................. 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 \50,661 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 Mar.............................................................................. 53,858 31,620 4,052 1,339 15,196 457 1,194 54,136 31,386 4,181 1,508 15,249 477 1,335 May v.......................................................................... 53,615 30,958 4,316 1,475 14,981 458 1,427 June**........................................................................... 54,630 31,910 4,486 1,485 14,589 533 1,627 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 11 to Table 6. Note.—Data represent short- and long-term liabilities to the official 4 Includes $101 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 To nonmonetary international and regional organizations 6 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 l e e a s r a t . t e S s i a f s u . i n r ­ 3 d y s O l t i h e a t o r h b m r e . t 4 r ­ P r f e o a c n y r u i e c a n r i i b g ­ e l n s e i m n g v o e e n l s d t t ­ 5 Total Demand Time2 b T i c l r c e U l e s a r a . t t S s i e a f u . s i n ­ r d y s l O t i h e a t r o 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 69 159 211 381 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 1971—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 (55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 Dec.8................ 155,427 55,035 6,460 4,215 33,025 11,335 392 400 1,367 73 192 210 891 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.................... 56,304 55,810 6,460 4,497 32,324 12,529 494 1,277 87 195 177 819 May v............... 55,822 55,323 6,570 4,647 31,498 12,608 499 1,257 84 173 198 802 JuneP................ 57,465 56,948 7,216 4,827 31,871 13,034 517 1,310 85 235 212 779 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 p osi T ts ime2 T b c i r c l e U e a ls r a t . t e s S i a f s u . 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 ­ f r o e c n r i u e n c i r i g ­ e n s Total Dema D n e d p osi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O t l 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........... J 1 4 4 C 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 8 3 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 5 2 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 1 4 4 8 8 1971—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 26 7 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 3 1 1 1 1 3 3 , , 0 1 8 7 6 7 1 16 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.. . 55,027 6,373 4,302 32,147 11,711 494 38,741 1,246 2,268 32,047 3,013 167 May p 54,565 6,485 4,475 31,300 11,806 499 37,857 1,224 2,387 31,209 2,870 167 JuneP. 56,155 7,131 4,592 31.659 12,256 517 38,632 1,540 2,469 31,573 2,883 167 To banksio To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Dema D n e d posi T ts ime2 T b c i r c l U e e l a s r a . t t s S e i a f u s . n i r ­ d y s O l t i h e a t o r h b m r . e t 4 r ­ Total Dema D n e d p osi T ts ime2 T b c i r l c U e e l a s r a . t t s S e i a f u s . n i r ­ d y s O l t i h e a t o r h b m r . e t 4 r ­ f r o e c r n u e c r i i g ­ e n s 1969.............. 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 .......... /21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 1971—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 1 4 3, , 9 6 5 4 3 4 1 1 0 0 , , 0 7 3 22 4 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 2 2 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.. . 16.286 12,106 3,372 352 8,379 3,853 1,756 1,682 96 318 327 May p 16,708 12,487 3,569 307 8,609 3,888 1,693 1,781 88 328 333 JuneP. 17.523 13,059 3,791 310 8,953 4,114 1,799 1,813 81 421 350 1 Data exclude “holdings of dollars” of the International Monetary 8 Data on second line differ from those on first line because (a) those Fund. liabilities of U.S. banks to their foreign branches and those liabilities of 2 Excludes negotiable time certificates of deposit, which are included U.S. agencies and branches of foreign banks to their head offices and in “Other.” foreign branches, which were previously reported as deposits, are included 3 Includes nonmarketable certificates of indebtedness issued to official in “Other short-term liabilities”; (b) certain accounts previously classified institutions of foreign countries. as “Official institutions” ar6 included in “Banks”; and (c) a number of 4 Principally bankers’ acceptances, commercial paper, and negotiable reporting banks are included in the series for the first time. time certificates of deposit. See also note 8(a). ^Foreign central banks and foreign central govts, and their agencies, 5 U.S. Treasury bills and certificates obtained from proceeds of sales of and Bank for International Settlements and European Fund. gold by the IMF to the United States to acquire income-earning assets. io 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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. Oct. Nov. Dec.1 Jan. Feb. Mar. Apr. May® June® Europe: 185 255 246 254 254 261 252 257 276 283 254 Belgium-Luxembourg.............................. 597 875 736 701 701 735 779 895 866 864 961 189 171 168 168 168 177 179 191 218 203 215 Finland...................................................... 117 136 134 160 160 156 150 140 151 131 148 France....................................................... 2,267 2,842 2,858 3,150 3,150 3,234 3,311 3,103 3,043 3,027 3,513 Germany................................................... 7,520 5,606 5,733 6,596 6,596 6,972 7,724 7,670 5,482 5,500 6,483 184 184 175 170 170 167 164 147 163 159 179 1,330 2,231 1,953 1,888 1,888 1,704 1,697 1,576 1,627 1,572 1,373 Netherlands.............................................. 762 315 291 271 270 306 424 823 878 861 847 Norway..................................................... 324 658 714 685 685 702 675 674 655 669 654 Portugal.................................................... 274 307 308 303 303 299 282 267 279 284 269 198 202 185 203 203 187 177 183 219 206 231 503 729 757 791 792 803 871 964 981 1,010 1,044 Switzerland............................................... 1,948 3,306 3,265 3,248 3,249 3,256 3,099 2,935 2,942 2,708 2,626 Turkey...................................................... 46 48 67 68 68 36 34 42 36 39 44 United Kingdom..................................... 5,504 7,223 7,711 7,374 7,379 7,892 7,600 8,089 7,954 7,954 7,913 Yugoslavia................................................ 37 34 40 34 34 35 40 54 94 88 90 Other Western Europe2.......................... 594 1,409 1,401 1,369 1,391 1,367 1,438 1,416 1,391 1,388 1,367 U.S.S.R..................................................... 15 12 8 14 14 28 11 9 9 13 10 Other Eastern Europe............................. 54 56 67 53 53 54 46 58 56 58 68 Total.................................................. 22,648 26,599 26,816 27,503 27,530 28,372 28,955 29,494 27,321 27,020 28,289 4,056 3,803 3,590 3,441 3,441 3,593 3,574 3,486 3,722 4,146 3,966 Latin America: Argentina.................................................. 539 415 437 441 441 435 420 541 507 465 459 346 360 383 342 342 376 423 466 559 576 628 Chile.......................................................... 266 211 189 191 191 180 146 137 132 134 136 Colombia.................................................. 247 181 179 188 188 185 176 163 184 190 190 7 6 6 6 6 6 6 6 7 6 7 821 678 706 709 715 757 747 658 667 760 733 Panama.................................................... 147 150 150 154 154 158 156 156 155 185 154 Peru........................................................... 225 163 163 164 164 164 160 174 174 167 179 118 116 108 108 108 108 111 124 118 122 117 735 915 874 963 963 870 843 740 851 873 919 Other Latin American republics............. 620 608 615 656 655 645 684 649 695 661 681 Bahamas and Bermuda........................... 745 346 376 657 656 313 278 307 444 440 484 Netherlands Antilles and Surinam......... 98 94 85 87 87 97 90 81 87 91 94 Other Latin America............................... 39 42 46 36 37 43 47 37 29 43 .40 4,952 4,284 4,317 4,702 4,708 4,336 4,288 4,239 4,609 4,713 4,820 Asia: China Mainland....................................... 33 34 34 39 39 39 38 39 39 38 39 Hong Kong.............................................. 258 316 336 312 312 304 335 306 299 328 311 India.......................................................... 302 154 142 89 89 114 118 116 102 104 105 Indonesia.................................................. 73 69 65 63 63 54 71 90 89 87 113 Israel......................................................... 135 130 133 150 150 133 143 143 145 148 139 Japan........................................................ 5,150 14,014 13,919 14,294 14,295 14,179 14,950 14,808 14,902 14,017 14,095 Korea........................................................ 199 189 216 201 196 224 220 204 178 196 198 Philippines................................................ 285 294 304 304 304 269 264 265 291 344 346 Taiwan...................................................... 275 294 248 258 258 280 291 320 338 365 383 Thailand.................................................... 508 131 107 126 126 121 116 120 170 174 177 Other........................................................ 717 631 579 595 595 774 708 717 714 729 706 Total.................................................. 7,936 16,255 16,082 16,432 16,427 16,493 17,254 17,129 17,265 16,532 16,612 Africa: Congo (Kinshasa).................................... 14 16 ! 12 12 12 12 13 22 14 16 18 11 8 i 9 9 9 10 9 9 11 8 11 South Africa............................................. 83 74 74 78 78 53 73 70 79 70 76 U.A.R. (Egypt)........................................ 17 16 13 24 24 14 13 13 15 18 19 395 331 314 474 474 510 538 526 542 522 608 Total.................................................. 521 445 422 597 597 599 646 640 661 635 731 Other countries: Australia................................................... 389 854 919 916 916 1,087 1,121 1,257 1,405 1,482 1,692 All other................................................... 39 39 51 42 42 42 41 47 43 39 45 Total.................................................. 428 893 970 957 957 1,129 1,162 1,304 1,448 1,520 1,737 Total foreign countries............................... 40,541 52,279 52,198 53,632 53,660 54,523 55,878 56,292 55,027 54,565 56,155 International and regional: International3........................................... 975 1,265 1,269 1,332 1,327 1,470 995 947 809 803 817 Latin American regional......................... 131 267 287 298 298 306 316 302 334 330 346 Other regional4........................................ 114 135 144 142 142 142 146 146 134 124 147 Total.................................................. 1,220 1,667 1,700 1,772 1,767 1,918 1,457 1,395 1,277 1,257 1,310 Grand total....................................... 41,761 53,946 53,898 55,404 55,427 56,441 57,335 57,687 56,304 55,822 57,465 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1972 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1970 1971 1972 1970 1971 1972 Area and country Area and 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 23 N S L o i i b g u y e th r a i e . a . r . . n . . . . . . . R . . . . . . h . . . . o . . . . . d . . . . e . . . . s . . . . i . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 11 2 0 19 1 5 7 1 2 91 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 j 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 A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ies 196 8 3,166 777 2,389 2,341 40 284 257 241 658 201 651 97 196 9 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 197 0 1,703 789 914 695 166 54 13 138 6 385 8 122 240 1971—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 12 92 223 Sept.. 885 480 405 161 189 55 15 62 12 90 217 Oct... 941 490 452 159 236 57 15 84 12 92 240 Nov.. 917 452 465 170 237 59 15 101 89 245 Dec.. 915 446 469 156 257 56 2 109 83 265 1972—Jan... 1,009 546 462 150 255 58 2 105 80 268 Feb.. 1,062 565 497 165 253 79 2 107 79 303 Mar.. 1,115 633 483 152 254 78 2 102 68 304 Apr.., 1,138 659 479 145 254 80 2 103 63 305 May* 1,188 695 494 158 253 83 2 116 61 309 June*, 1,168 695 473 124 267 82 2 133 53 279 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1971 1972 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayp JuneP Europe: Belgium-Luxembourg..................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Switzerland...................................... 29 29 29 29 29 60 60 53 53 53 52 52 52 United Kingdom............................. 490 496 460 432 427 362 323 279 283 268 280 288 264 Other Western Europe................... 25 25 25 49 71 82 85 95 95 95 95 95 96 Eastern Europe............................... 6 6 6 5 5 5 5 5 5 5 5 5 5 Total......................................... 557 562 525 521 538 516 480 438 441 426 438 445 424 Canada................................................ 174 175 175 175 175 179 181 179 179 178 179 166 313 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 Japan................................................ 142 395 633 755 1,009 1,488 1,717 2,007 2,146 2,391 2,415 2,777 2,901 Other Asia....................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total......................................... 172 425 663 784 1,038 1,518 1,727 2,017 2,156 2,401 2,425 2,787 2,912 Africa................................................... 43 43 43 43 25 8 8 8 8 8 8 8 8 All other.............................................. * * * * * * * « * * * * * Total foreign countries....................... 952 1,211 1,413 1,530 1,782 2,228 2,402 2,650 2,791 3,020 3,057 3,413 3,664 International and regional: International................................... 115 115 126 126 126 126 126 126 126 126 136 136 136 Latin American regional................ 27 28 28 29 29 30 30 31 31 32 33 25 26 Total......................................... 142 143 154 155 155 156 156 157 157 158 168 161 161 Grand total.............................. 1,095 1,354 1,567 1,685 1,937 2,383 2,558 2,807 2,948 3,177 3,226 3,574 3,825 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 g B iu el m ­ a C d a a n ­ 1 m G a e n r y ­ Italy 2 Korea T w a a i n ­ T la h n a d i­ m G an e y r­ * Italy 1969................................................. 43,181 1,431 32 1,129 135 15 20 100 4 1,750 4 1,084 125 1970................................................. 3,563 2,480 32 2,289 25 15 20 100 1,083 542 1971—July....................................... 8,592 7,480 32 2,289 5,000 25 15 20 100 1,111 542 Aug....................................... 8,924 7,479 32 2,289 5,000 23 15 20 100 1,444 542 Sept...................................... 9,193 7,479 32 2,289 5,000 23 15 20 100 1,714 542 9,195 7,479 32 2,289 5,000 23 15 20 100 1.716 542 Nov...................................... 9,271 7,554 32 2,365 5,000 22 15 20 100 1.716 542 Dec....................................... 5 9,657 7,829 32 2,640 5,000 22 15 20 100 5 1,827 612 1972—Jan........................................ 9,658 7,829 32 2,640 5,000 22 15 20 100 1,828 612 Feb....................................... 9,658 7,829 32 2,640 5,000 22 15 20 100 1,828 612 Mar...................................... 9,940 8,188 32 2,840 5,158 22 15 20 100 1.752 536 Apr....................................... 12,440 10,688 32 2,840 7,658 22 15 20 100 1.752 536 May..................................... 12,441 10,688 32 2,840 7,658 22 15 20 100 1.753 536 June..................................... 12,441 10,688 32 2,840 7,658 22 15 20 100 1.753 536 July...................................... 15,864 14,188 32 2,840 11,158 22 15 20 100 1,676 459 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. □ AUGUST 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. Oct. Nov. Dec.1 Jan. Feb. Mar. Apr. May* June* Europe: 6 4 10 11 11 8 11 11 12 13 15 Belgium-Luxembourg............................. 50 53 63 57 57 71 102 78 66 72 73 40 50 48 49 49 50 54 55 52 54 52 66 113 116 135 135 137 139 138 137 133 126 113 133 182 267 268 311 344 342 273 295 321 186 198 227 235 235 202 253 258 239 231 315 26 24 23 30 30 30 25 29 28 30 24 101 114 139 159 161 166 182 230 213 231 201 61 70 90 105 105 92 102 117 105 101 117 54 66 66 67 67 72 71 73 72 65 64 11 10 12 12 12 14 14 14 13 24 21 52 58 68 70 70 83 88 105 135 149 141 97 113 120 118 118 125 125 130 128 132 95 100 137 143 145 145 147 181 164 138 192 147 9 4 3 3 3 4 8 3 3 3 3 United Kingdom..................................... 379 410 536 564 564 527 563 559 537 539 564 Yugoslavia................................................ 35 27 22 19 19 20 15 25 24 27 25 Other Western Europe............................ 13 16 11 12 12 13 16 17 17 19 24 U.S.S.R..................................................... 3 4 10 28 28 33 37 47 70 65 57 Other Eastern Europe............................ 45 33 33 37 37 44 48 51 42 43 43 1,449 1,639 1,923 2,123 2,125 2,148 2,376 2,445 2,303 2,416 2,429 1,043 1,093 1,138 1,529 1,529 1,507 1,700 1,942 1,831 1,697 1,737 Latin America: Argentina.................................................. 326 327 316 305 305 310 306 316 304 316 325 C B h ra il z e i . l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 0 8 25 0 4 4 3 1 1 5 3 3 8 8 4 3 1 1 7 4 8 0 2 4 3 1 3 8 3 4 9 0 4 1 3 4 3 8 0 9 0 4 3 1 5 7 2 5 2 6 4 3 1 7 9 2 2 0 2 4 3 1 8 7 0 2 6 6 5 3 1 1 7 0 1 9 8 5 3 9 4 9 4 4 4 5 4 5 0 7 1 8 4 Cuba.......................................................... 13 13 13 13 13 13 13 13 13 13 13 909 808 839 936 936 1,004 977 1,006 1,095 1,037 1,152 Panama..................................................... 112 95 109 125 125 110 106 116 110 120 125 Peru........................................................... 147 198 201 176 176 163 159 155 163 177 160 Uruguay.................................................... 63 32 39 41 41 41 41 41 38 38 35 Venezuela.................................................. 283 251 249 268 268 271 271 278 311 299 314 Other Latin American republics............. 342 326 337 374 374 366 364 352 376 360 366 Bahamas and Bermuda........................... 196 242 264 262 262 253 288 300 278 265 314 Netherlands Antilles and Surinam......... 19 21 20 18 18 20 23 16 15 16 16 Other Latin America............................... 22 32 23 25 26 23 21 20 27 24 25 Total.................................................. 3,239 3,253 3,340 3,495 3,502 3,527 3,554 3,577 3,727 3,697 3,878 Asia: China Mainland....................................... 2 1 1 1 1 1 1 2 2 2 2 Hong Kong.............................................. 39 77 71 68 70 61 81 90 99 107 111 India.......................................................... 13 22 17 21 21 22 20 17 18 16 16 Indonesia.................................................. 56 39 40 41 41 37 35 37 39 49 45 120 103 132 129 129 124 106 98 84 81 78 Japan........................................................ 3,890 3,739 3,889 4,279 4,296 4,149 4,059 4,116 3,980 3,687 3,577 Korea........................................................ 178 286 329 348 348 330 394 403 399 377 346 Philippines................................................ 137 111 129 136 138 141 145 149 137 138 138 Taiwan...................................................... 95 105 94 109 109 123 154 156 172 180 182 Thailand................................................... 109 145 148 164 173 175 200 201 203 203 188 167 226 226 252 252 237 213 232 210 199 221 Total.................................................. 4,807 4,854 5,075 5,548 5,577 5,399 5,407 5,502 5,343 5,040 4,903 Africa: Congo (Kinshasa).................................... 4 22 21 21 21 21 14 13 15 19 14 Morocco................................................... 6 5 4 4 4 4 4 3 4 4 4 South Africa............................................ 77 146 152 156 158 163 166 147 152 149 160 U.A.R. (Egypt)........................................ 13 11 9 10 10 11 13 11 10 11 16 Other......................................................... 79 101 90 99 99 91 101 104 120 129 123 Total.................................................. 180 285 277 291 292 290 299 278 301 311 318 Other countries: Australia................................................... 64 140 140 159 159 162 158 165 169 175 176 All other................................................... 16 22 24 27 27 31 29 35 34 31 34 Total.................................................. 80 162 164 186 186 193 188 200 203 206 211 Total foreign countries............................... 10,798 11,286 11,917 13,172 13,211 13,063 13,524 13,944 13,709 13,368 13,475 International and regiona l.......................... 3 3 4 3 3 3 5 4 3 7 4 Grand total....................................... 10,802 11,289 j 11,920 13,175 13,214 j 13,066 13,528 13,948 13,712 13,375 13,479 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

AUGUST 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to— Foreign End of period Total Total Total O in t f i s f o t i i n c t i s u a ­ l Banks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o 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 a o n u c n v o a r d i n m t t , i c e f l s e i . s e ­ , ­ Other paper 1969.............................. 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 1970.............................. 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971—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 , , 2 1 1 7 4 5 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 47 75 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 June®................. 13,479 12,721 4,770 163 2,586 2,021 2,650 3,489 1,812 758 477 148 133 1 Excludes central banks, which are included with “Official institutions.” branches, which were previously reported as “Loans”, are included in 2 Data on second line differ from those on first line because (a) those “Other short-term claims”; and (b) a number of reporting banks are included claims of U.S. banks on their foreign branches and those claims of U.S. in the series for the first time. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo a u y r r i e r n a i e b g n l n e ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1969................. 3,250 2,806 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970................. 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971—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 June®... 4,193 3,869 712 369 2,788 293 30 139 631 284 1,642 311 739 446 1 Excludes central banks, which are included with “Official institutions.’1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1972 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net piirchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1970............................. 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971............................. 1,672 130 1,542 1,661 -119 14,573 13,156 1,416 1,687 2,571 -885 1,385 1,434 -49 1972—Jan.-June®. ... 1,267 5 1,261 1,337 -76 9,858 8,052 1,806 855 1,648 -792 1,381 1,225 156 1971—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 22 118 1 117 145 -28 1,045 796 249 131 138 -7 118 96 22 252 252 257 -5 965 972 -7 163 257 -95 157 104 52 Nov.................. 446 1 445 474 -29 940 845 94 137 136 * 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................... 48 11 38 25 13 1,703 1,420 283 161 157 4 215 181 34 MayP............... 348 -8 356 350 6 1,326 1,111 215 124 310 -186 245 138 107 JuneP............... 251 1 251 274 -23 1,614 1,405 209 103 282 -179 240 268 -28 ' 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 ti r n ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1970..................... 626 58 195 128 110 -33 24 482 -9 47 85 1 22 1971..................... 733 87 131 219 168 -49 71 627 -92 38 108 * -2 54 1972—Jan.-June^ 765 85 -35 166 264 196 6 682 -97 -26 166 -2 1 41 1971—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 1 • * Sept.......... 155 24 33 9 38 11 17 132 10 7 4 * * 2 Oct........... -47 8 -4 2 4 -30 • -21 -21 -17 5 * — 1 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 — l * 6 Mar.......... 177 19 -12 27 56 95 • 185 -26 3 8 * * 7 Apr........... 78 -9 -22 19 1 46 * 35 -23 13 49 — 1 * 6 MayP....... 55 19 -14 8 27 20 2 62 -17 -22 30 * * 2 JuneP........ 33 8 -20 15 27 -2 5 32 1 -42 32 * * 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 197 0 . 956 35 48 134 118 91 464 128 25 28 324 197 1 684 15 35 197 327 39 612 37 19 -2 39 19 72—Jan.-June® 1,041 145 5 13 244 61 492 52 14 293 190 1971—Jun e -4 -1 -1 -2 -4 -8 11 2 -3 -2 -3 July.......... 40 -2 -1 3 20 22 -10 3 24 Aug........... 85 -3 -1 26 49 67 * 1 17 Sept.......... 94 -1 21 69 86 16 5 -14 Oct............ 40 1 53 24 83 -8 -2 -1 -33 Nov.......... 94 4 42 70 122 7 -1 2 -5 -31 Dec........... -18 -1 -1 -12 18 -3 -13 1 -3 1972—Ja..............n 33 3 2 -14 20 49 10 -2 3 -27 Feb........... 146 -1 -1 -20 102 67 11 -13 51 29 Mar.......... 321 5 3 29 54 106 -3 3 192 23 Apr........... 205 38 3 20 -1 17 63 -1 * 27 115 May®........ 160 40 -3 -3 47 97 11 26 11 14 June®........ 176 61 1 21 4 110 23 8 36 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— Dec............................ 434 278 Jan.-June®.. -636 -226 -410 269 -451 -48 -188 -13 21 1970—Mar........................... 368 220 1971—June. .. -132 13 -145 -3 -93 5 -72 6 14 June........................... 334 182 July.... -68 7 -75 -16 -6 -2 -53 -1 2 Sept............................ 291 203 Aug.. .. -180 -152 -29 23 -23 -16 -14 1 1 Dec............................ 349 281 Sept---- 15 8 6 1 -7 3 8 * 1 Oct -43 32 -75 22 -111 -13 24 1 2 1971—Mar............................ 511 314 Nov.... 61 11 51 37 32 -28 6 * 3 June........................... 419 300 Dec.. . . 51 2 49 23 53 -10 -15 -4 2 Sept............................ 333 320 311 314 1972—Jan....... -262 -242 -20 11 -24 -16 5 * 3 Feb___ -81 -12 -68 32 -73 1 -26 -2 * 1972—Mar.®......................... 325 379 Mar.... -46 14 -60 58 -74 -2 -47 -5 10 Apr.. . . 38 6 32 65 8 -31 -17 3 5 J M un ay e® ®. .. . -2 -7 0 8 7 5 3 -2 -8 1 1 2 7 2 5 9 - - 1 1 4 4 5 3 -1 1 5 4 - - 8 2 1 1 -9 * 2 * mo N n o ey te d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in g m o on n e t y h e c b re o d o i k t s b o al f a r n e c p e o s r t a i n n d g brokers and dealers in the United States, in accounts of foreigners 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 For a given month, total assets may not equal total liabilities because $8,109 million and $8,227 million, respectively, on Apr. 30, 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 Note.—Components may not add to totals due to rounding. 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. □ AUGUST 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 parent banks insti­ for­ bank tutions eigners 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—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............ 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 Apr........... 64,171 4,886 2,426 2,461 57,465 10,544 26,693 1,181 19,048 1,820 1970—Dec........... 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—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........... 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 Apr........... 41,757 4,597 2,387 2,210 36,489 6,359 19,346 883 9,902 671 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—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 Apr........... 36,126 2,738 1,574 1,163 32,585 5,269 17,945 507 8,865 803 Payable in U.S. dollars........................ 1970—Dec........... 22,574 6,596 15,655 2,223 Q A70 4,012 323 1971 _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 Apr........... 24,967 2,620 21,943 3,708 13,754 4,481 404 IN THE BAHAMAS v---------------Y---------------' Total all currencies............................. 1970—Dec........... 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—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........... 8,380 994 107 888 7,276 3,819 3,457 110 Mar........... 8,836 1,178 126 1,052 7,551 4,038 3,513 108 Apr........... 19,038 1,284 204 1,080 7,643 4,121 3,521 111 For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 47, 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 ...........1970—Dec. ..........Total, all currencies 49, 2,529 547 1,982 45,066 8,078 24,118 5,554 7,316 1,849 ............1971—Apr. 50, 2,848 726 2,122 45,891 8,134 25,039 5,216 7,502 1,835 52, 2,565 528 2,038 48,342 8,553 26,729 5,339 7,721 1,824 52, 3,061 477 2,584 47,934 8,346 26,544 5,373 7,670 1,741 .......................July 54, 3,349 763 2,586 49,622 8,792 27,178 5,450 8,203 1,902 56, 3,015 501 2,514 51,940 9,516 28,497 5,476 8,451 2,014 .......................Sept. 57, 2,915 474 2,441 52,540 9,802 28,520 5,581 8,638 2,041 .......................Oct. 58, 2,892 475 2,417 53,673 10,038 29,354 5,749 8,531 2,119 61, 3,114 669 2,445 56,242 10,818 31,147 5,491 8,786 2,119 60, 2,938 658 2,280 55,048 10,324 29,763 5,869 9,091 2,034 ...........1972—Jan. 61, 3,170 779 2,391 56,634 10,645 30,707 6,180 9,102 2,058 .......................Feb. 65, 3,047 636 2,411 59,933 10,363 33,712 6,312 9,546 2,073 64, 2,980 621 2,358 59,111 10,119 32,651 6,617 9,723 2,081 36, 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 ...........1970—Dec. ..........Payable in U.S. dollars 36 j 2,284 491 1,794 33,717 5,644 18,717 4,743 4,612 997 ...........1971—Apr. 37 5 2,582 643 1,939 33,638 5,469 19,120 4,419 4,630 1,096 39 j 2,293 432 1,861 35,782 5,793 20,610 4,604 4,775 1,068 38 j 2,762 393 2,368 34,571 5,433 20,192 4,416 4,530 990.......................July 39, 2,939 643 2,296 35,406 5,735 20,340 4,375 4,956 1,149 40, 2,638 381 2,257 36,375 6,234 20,981 4,408 4,752 1,195 40, 2,549 352 2,198 36,331 6,154 20,797 4,503 4,878 1,161 40, 2,546 375 2,170 37,176 6,479 21,124 4,662 4,910 1,227 42, 2,674 511 2,163 38,139 6,692 22,069 4,426 4,953 1,276 41, 2,556 546 2,010 37,642 6,710 20,874 4,753 5,306 1,182 ...........1972—Jan. 42, 2,743 644 2,099 38,607 6,853 21,742 4,768 5,244 1,212 .......................Feb. 45, 2,643 509 2,135 41,744 6,945 24,425 4,947 5,428 1,225 44, 2,591 514 2,077 40,260 6,583 23,127 5,202 5,349 1,227 IN UNITED KINGDOM 28, 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 ...........1970—Dec. ..........Total, all currencies 29, 1,492 186 1,306 26,989 2,699 15,698 4,067 4,525 601 ...........1971—Apr. 29, 1,591 301 1,291 27,667 2,843 16,387 3,873 4,565 694 31, 1,565 147 1,419 29,021 2,931 17,578 3,967 4,545 690 30. 1,773 126 1,647 28,264 2,762 16,843 4,034 4,625 674.......................July 32i 2,000 300 1,700 29,429 3,069 17,310 4,268 4,782 691 33. 1,658 117 1,541 30,877 3,344 18,431 4,318 4,785 745 33; 1,628 104 1,523 31,009 3,250 18,535 4,447 4,777 772 33, 1,618 77 1,541 31,513 3,106 18,901 4,622 4,885 814 34, 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 33. 1,626 132 1,494 31,473 3,296 18,076 4,680 5,421 778 ...........1972—Jan. 34; 1,582 114 1,468 32,371 3,417 18,705 4,788 5,461 759 .......................Feb. 37, 1,525 78 1,447 34,787 3,209 20,989 4,996 5,594 792 36, 1,340 68 1,272 33,980 3,056 19,893 5,172 5,859 807 23, 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 ...........1970—Dec. ............Payable in U.S. dollars 22. 1,358 173 1,185 21,249 1,900 12,640 3,588 3,121 299 ...........1971—Apr. 23; 1,455 266 1,189 21,378 1,902 12,967 3,368 3,142 365 24. 1,432 96 1,336 22,682 2,053 14,071 3,493 3,065 361 23; 1,610 89 1,521 21,428 1,819 13,198 3,382 3,029 361 .......................July 24. 1,790 238 1,552 22,095 1,900 13,445 3,501 3,249 377 24, 1,460 59 1,401 22,882 2,126 14,160 3,555 3,041 400 24. 1,435 49 1,387 22,875 2,095 14,079 3,660 3,041 417 25. 1,452 36 1,416 23,166 2,028 14,185 3,813 3,140 426 24; 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 24, 1,437 76 1,360 *•22,608 2,157 13,249 3,851 3,351 400...........1972—Jan. 24, 1,377 50 1,327 22,985 2,081 13,670 3,824 3,411 403 .......................Feb. 26, 1,327 19 1,308 25,220 2,093 15,694 4,041 3,392 424 25, 1,154 26 1,129 24,027 1,852 14,465 4,233 3,477 419 ^------------S/*-------------' 'V--------^ IN THE BAHAMAS 4, 542 4,183 488 2,872 823 90 ...........1970—Dec. ..........Total, all currencies 5, 503 4,681 1,087 2,706 888 87............1971—Apr. 5; 646 4,633 991 2,744 898 101 5 446 5,221 1,013 3,095 1,113 93 6 753 5,197 1,126 3,138 933 95 .......................July 5 696 5,155 1,005 3,029 1,121 119 6 719 5,359 931 3,381 1,048 133 6 628 5,805 1,083 3,,551 1,170 155 7 622 6,537 1,446 3,947 1,144 161 8 750 7,557 1,649 4,784 1,124 188 7 625 7,197 1,563 4,427 1,207 151...........1972—Jan. 8 858 7,380 1,526 4,676 1,178 142 .......................Feb. 8 833 7,876 1,429 5,142 1,305 128 .......................Mar. 19 961 7,922 1,494 5,224 1,204 155 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. □ AUGUST 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) Wednesday L t i i a e b s i 1 li­ Wednesday L t i i a e b s i 1 li­ L s p e i l a c u b . s 2 . Wednesday L t i i a e b s i 1 li­ M l a ia tu b r i i l t i y ty of 1972 Mar. Apr. May 1967 1971 1972—Cont. 1.50 1.91 1.74 Mar. 29............. 3,412 Jan. 27. 6,536 7,536 Mar. 1... 954 Call................................... 1.75 2.10 1.91 June 28............. 3,166 Feb. 24. 5,666 6,666 8... 1,164 Other liabilities, maturing Sept. 27............. 4,059 Mar. 31. 2,858 4,358 15... 1,263 in following calendar Dec. 27............. 4,241 Apr. 28. 2,158 5,166 22... 1,346 months after report May 26. 1,579 4,587 29... 1,532 date: June 30. 1,492 4,500 11.27 9.00 9,48 J S D M u e e n a p c r e t . . . 2 2 2 31 6 7 5 . . . ( . . . . . . 1 . . . . . . / . . . 1 1 . . . 9 . . . / . . . 6 6 . . . . . . 9 8 . . . . . . ) 4 6 7 6 , , , , 9 2 0 1 0 3 2 0 2 9 0 4 S J A O N D u e u c e o l p t y c g v . t . . . . 2 2 2 2 2 5 8 9 7 8 4 1 . . . . . . . 2 2 2 1 1 3 1 , , , , , , , 4 9 4 4 4 3 8 7 1 9 0 0 6 4 5 7 5 5 7 8 2 4 4 3 , , , 6 0 5 4 7 7 5 5 8 M A a p y r. 2 1 1 3 5 6 2 9 . . . . . . . . . . 1 1 1 1 1 , , , , , 0 2 1 3 2 7 5 3 7 4 9 2 0 4 0 2 4 3 6 7 n r t t t h h h d d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 5 1 1 . . . . . . . 7 8 5 4 9 3 7 9 1 3 5 6 4 7 2 2 2 5 5 . . . . . . . 0 1 0 9 1 5 3 5 6 6 2 0 8 8 2 6 2 2 3 . . . . . . . 4 3 8 4 2 6 5 3 3 6 3 7 4 4 15. 1,384 10. . 1,323 .45 .51 .41 1969 22. 1,544 17. . 1,544 10th.............................. .43 .36 .42 29. 909 24. . 1,599 11th.............................. .36 .37 .38 Mar. 26............. 9,621 31r. 1,465 12th.............................. .36 .43 .45 J S u e n p e t. 2 25 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4, , 3 26 4 9 9 1972 June 7. . 1,192 Maturities of more than 1 1.07 1.11 1.05 Dec. 31............. 12,805 Jan. 5. 1,208 14. . 1,525 12. 1,721 21.. 1,740 34.81 34.05 34.32 19. 1,568 28 1,442 1970 26. 1,419 Mar. 25............... 11,885 Feb. 2. 1,301 July 5... 824 de N po 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 9. 1,062 12... 1,375 the Bahamas and of all other foreign branches Sept. 30............... 9,663 16. 1,006 19... 974 for which such deposits and direct borrowings Dec. 30.............. 7,676 23. 1,068 26... 1,342 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 in custody End of End of United period Deposits U se .S cu . r G it o ie v s t 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada 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—July... 162 28,574 13,559 1 Q£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 66 1 3 0 4 5 6 3 9 4 Aug... 122 35,914 13,821 1,141 697 150 173 121 372 436 Sept... 166 36,921 13,819 Oct.. . 135 38,207 13,819 1971—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.... 1,637 1,073 203 241 120 575 577 May.. 157 46,453 15,542 June.. 257 47,176 15,542 1972—Jan.'___ 1,736 1,087 235 251 163 614 672 July... 160 51,522 15,542 Feb.r.... 1,820 1,034 316 245 225 548 845 Mar.r__ 1,956 1,209 266 281 200 642 847 Apr.r___ 1,881 1,247 211 259 164 651 740 1 Marketable U.S. Treasury bills, certificates of in­ May........ 1,919 1,282 207 279 150 684 664 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

AUGUST 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 1971 1972 1971 1972 Mar. June Sept. Dec. Mar.p Mar. June Sept. Dec. Mar.p Europe: Austria.................................. 11 12 10 5 5 10 10 13 14 17 Belgium-Luxembourg.......... 47 58 60 66 105 49 61 59 62 47 Denmark............................... 9 3 3 2 3 16 17 14 15 18 2 2 2 2 2 8 15 16 18 19 France................................... 112 117 139 142 128 159 181 182 208 201 Germany, Fed, Rep. of....... 122 105 125 117 88 191 228 209 192 210 Greece................................... 4 5 6 4 5 34 27 40 35 36 Italy....................................... 71 69 74 108 112 175 172 176 191 187 Netherlands........................... 115 102 85 70 75 65 74 66 69 67 Norway................................. 4 5 5 5 6 15 14 17 13 16 Portugal................................. 14 18 18 16 9 13 20 13 16 23 Spain..................................... 27 35 37 66 66 93 91 89 125 103 Sweden.................................. 28 31 28 17 16 53 40 37 40 35 Switzerland........................... 122 85 100 91 60 38 62 95 63 59 Turkey................................... 3 5 3 2 2 17 9 9 9 9 United Kingdom.................. 735 659 686 768 870 1,020 961 846 957 976 Yugoslavia............................ 4 4 4 3 4 16 16 21 13 10 Other Western Europe........ 1 2 2 2 1 12 11 14 13 13 Eastern Europe..................... 4 3 4 5 16 16 16 28 25 3 Total.............................. 1,437 1,319 1,391 1,489 1,564 1,997 2,027 1,932 2,080 2,074 Canada...................................... 206 193 183 181 188 721 706 800 909 1,217 Latin America: 14 17 19 18 18 65 66 66 55 49 Brazil..................................... 15 17 13 21 20 105 117 127 150 142 Chile...................................... 13 8 14 14 21 40 44 48 47 40 6 6 6 7 7 36 31 40 46 41 * * * * * 1 1 1 1 1 20 20 23 22 17 143 151 146 151 134 6 6 6 5 8 21 17 20 21 19 Peru....................................... 4 4 5 7 8 35 36 34 34 31 4 4 4 2 3 7 6 6 5 6 17 17 14 16 18 69 69 73 81 77 Other L.A. republics............ 29 29 33 33 28 95 96 105 101 95 Bahamas and Bermuda........ 173 167 232 275 341 222 273 362 366 313 Neth. Antilles and Surinam. 5 7 4 3 5 8 9 9 9 8 Other Latin America............ 5 6 8 5 12 21 25 21 24 22 Total.............................. 311 307 381 429 506 866 940 1,057 1,090 977 Asia: 8 8 9 12 11 19 25 26 24 21 25 22 26 27 13 39 39 36 37 31 Indonesia............................... 5 6 11 10 6 20 21 24 29 29 Israel..................................... 28 19 21 10 9 24 25 21 23 23 Japan..................................... 165 158 178 177 194 349 372 397 411 469 11 10 10 13 12 50 54 52 68 56 Philippines............................. 7 7 6 7 9 31 56 43 49 64 10 11 17 18 23 32 38 43 41 45 4 3 4 3 4 12 13 16 15 18 Other Asia............................. 59 122 140 143 110 153 158 201 147 173 Total.............................. 322 366 421 420 391 729 800 859 844 930 Africa: 2 2 1 1 1 5 6 4 6 5 South Africa......................... 31 45 45 31 26 32 38 39 41 42 U.A.R. (Egypt)..................... 2 1 1 1 1 10 9 9 9 9 Other Africa......................... 19 33 32 35 31 53 67 70 100 76 Total.............................. 54 82 78 68 59 100 120 122 156 130 Other countries: Australia............................... 81 81 68 46 54 86 82 85 83 86 All other............................... 8 8 9 9 10 13 17 24 19 27 Total.............................. 89 89 77 ! 55 64 99 99 109 102 113 International and regional.... * * 1 I * 3 4 4 4 2 Grand total................... 2,418 2,357 2,532 i 2,643 2,774 4,515 4,696 4,882 5,185 5,443 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. □ AUGUST 1972 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n a la b r l s e cu P fo r 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 l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h in reporter’s Other name 1967—Dec...................... 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 I 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 1972—Mar.*................... 2,774 2,340 433 5,443 4,677 358 408 i 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 Country or area End of period Total liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n ic r a Japan O A t s h i e a r Africa o A th l e l r 1967—Dec........................ 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 Dcc l S 1.725 2,215 152 433 496 172 73 388 141 249 69 42 { 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 1972—Mar.*..................... 2,946 3,214 128 723 775 173 59 662 141 362 104 86 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

AUGUST 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 (r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) F (f r r a a n n c c e ) 1968............................................................. .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 1969............................................................. .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 i 19.302 1970............................................................. 226.589 111.36 3.8659 2.0139 3 95.802 16.774 13.334 23.742 18.087 1971............................................................. 22.502 113.61 44.0009 2.0598 99.021 16.800 13.508 23.758 18.148 1971—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................................................... 219.960 119.10 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 July................................................... 119.10 4.3674 2.2814 101.630 15.878 14.368 24.035 19.990 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 ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 5 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 6 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 6 28.650 1971—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 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 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 July..................................................................... 31.634 13.072 244.47 .17208 .33219 35.918 8.0000 31.424 Period Z (d e N o a e l l l w a a n r) d N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o a fr u n i d t c h a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r 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 ­ ) 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 724.325 244.42 1971—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 July..................................................................... 119.31 15.367 3.7178 125.26 1.5754 21.134 26.561 244.47 1 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to 7 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per 5.55 francs per U.S. dollar. U.S. dollar. 2 A new Argentine peso, equal to 100 old pesos, was introduced on 8 Effective Oct. 20, 1971, the Spanish peseta was revalued to 68.455 Jan. 1, 1970. Since Apr. 6, 1971, the official exchange rate is set daily by per U.S. dollar. the Government of Argentina. Average for Feb. 1-27, 1972. 9 Effective June 23, 1972, the U.K. pound was floated. 3 On June 1, 1970, the Canadian Government announced that, for the time being, Canada will not maintain the exchange rate of the Canadian Note.—Effective Aug. 16, 1971, the U.S. dollar convertibility to gold dollar within the margins required by IMF rules. was suspended; as from that day foreign central banks did not have to 4 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 support the dollar rate in order to keep it within IMF limits. 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 □ AUGUST 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 j 1972 cent effective Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July 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........... 8.0 July 1971 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............................. 8.0 July 1971 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... 5.94 July 1971 6.12 5.12 5.12 4.94 4.81 4.81 5.19 5.19 Italy 5.0 Apr. 1971 4.5 4.0 4.0 Jamaica. 5.5 Apr. 1971 5.0 6.0 6.0 Japan... 5.25 May 1971 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 5.5 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 commcrcial paper and/or Indonesia—Various rates depending on type of paper, collateral, com­ govt, securities for commercial banks or brokers. For countries with modity involved, etc.; more than one rate applicable to such discounts or advances, the rate Japan—Penalty rates (exceeding the basic rate shown) for borrowings shown is the one at which it is understood the central bank transacts from the central bank in excess of an individual bank’s quota: the largest proportion of its credit operations. Other rates for some Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of these countries follow: of paper, maturity, collateral, guarantee, etc. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ pending on type of transaction; tion, import substitution industries and manufacture of exports; 8 per Brazil—8 per cent for secured paper and 4 per cent for certain agricultural cent for other agricultural, industrial and mining paper; paper; Philippines—6 per cent for financing the production, importation, and dis­ Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent tribution of rice and corn and 7.75 per cent for credits to enterprises en­ for loans to make up reserve deficiencies. gaged in export activities. Preferential rates are also granted on credits to Colombia—5 per cent for warehouse receipts covering approved lists of rural banks; and products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent Venezuela—2 per cent for rediscounts of certain agriculture paper, 4l/i for rediscounts in excess of an individual bank’s quota; per cent for advances against government bonds, and 5 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

AUGUST 1972 □ MONEY RATES; ARBITRAGE A 95 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n s ls u t , h ry s1 D m a o d y n a - e y t y o * - 3 m P b b r o i a i l n m n ls k t , e hs3 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 - C d b r l e a e a p a t n o e r k s i s n s i 4 t ’ g D m a o d y n a - y e t y o 5 - T 6 d r b e 0 a i a - l y s l 9 s s u 0 , 6 ry D m a o d y n a - e y t y o - 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—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 May............ 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 2.75 2.65 1.90 1.53 4.75 July 3.48 3.45 6.82 5.60 4.99 4.18 1.09 0.86 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 t e io 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 ta at t i i o st n ic a s l , 1 F 9 in 62 a . nce,” ARBITRAGE ON TREASURY BILLS (Per centper annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date K q ( u U i a b n o U d n a g t j s i . a d . t S i t e s o i . t d ) o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) P d f ( ( r p o i + e - s o r c m ) w ) u o i n a u o o u r d n n r m d t i L n ( o c f N e n a o n v d e f t o o t iv r n e ) qu A i o n t s ed Cana q d A u a o U d t j . a . S ti t . o o n U S n ta i t t e e s d C S ( a f p a n o r v a e f o d ad r a) C P d f ( ( d r o a i + e s - o r n c m w ) l ) a o l d a i a o u o u r i r n n r a s m d t n i C n ( c a f N e a n o n v a e f t o d t iv r a e ) Canada basis 1972 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 July 7.............. 5.41 3.96 1.45 -2.50 -1.05 3.56 3.48 3.96 -.48 -.04 -.52 14.............. 5.34 3.94 1.40 -3.58 -2.18 3.49 3.41 3.94 -.53 .02 -.51 21.............. 5.67 3.85 1.82 -3.43 -1.61 3.43 3.33 3.85 -.52 .24 -.28 28.............. 5.69 3.80 1.89 -3.43 -1.54 3.46 3.38 3.80 -.42 .12 -.30 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 Yorl U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates arc 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 Canadiar 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 □ AUGUST 1972 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine 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 world i 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—June. 41,250 4,523 10,507 26,220 191 140 254 747 1,584 46 22 792 47 July.. 4,479 10,453 192 140 259 746 1,600 46 22 792 47 Aug.. 4,695 10,209 192 140 259 752 1,584 46 22 792 47 Sept.. 41,210 4,722 10.207 26,280 192 140 259 722 1,572 46 22 792 47 Oct... 4,724 10.207 192 140 259 722 1,564 46 22 792 47 Nov.. 4,726 10,206 192 140 259 722 1,564 46 22 792 47 Dec.. *4i;i85 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 76 282 791 1,682 18 836 June®. 5.761 10.490 208 283 792 1,682 16 834 Ger­ E pe n r d i o o d f lo C m o b ­ ia m De ar n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 196 5 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 196 9 26 89 45 3,547 4,079 130 243 158 193 39 46 2,956 413 197 0 17 64 29 3,532 3,980 117 243 131 144 16 43 2,887 532 1971—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 4.437 132 264 143 156 17 3.131 801 June® 16 69 53 3.826 4.437 132 143 156 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 i i n l e ip s ­ Po g r a t l u­ A S r a a u b d i i a 1965......................... 52 182 68 2 158 21 1,756 31 53 67 38 576 73 1966......................... 67 193 68 1 109 21 1,730 18 53 65 44 643 69 1967......................... 136 193 68 31 166 21 1,711 18 53 20 60 699 69 1968.......................... 122 288 85 66 165 21 1,697 24 54 20 62 856 119 1969.......................... 86 288 85 63 169 21 1,720 25 54 25 45 876 119 1970.......................... 86 288 85 48 176 21 1,787 23 54 40 56 902 119 1971—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 58 177 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 23 2,079 36 60 73 1,004 138 June®....... 98 93 2,079 36 72 138 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ GOLD RESERVES AND PRODUCTION A 97 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine 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—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 85 778 146 391 51 332 Feb.................... 405 498 200 2,909 80 82 130 85 751 146 391 51 333 Mar................... 405 498 200 2,909 80 82 129 85 751 156 391 51 354 Apr.................... 412 498 200 2,909 80 82 127 85 156 391 51 347 May.................. 469 217 3,158 87 89 138 92 169 425 56 365 June* ... 506 217 3,158 87 89 132 425 56 304 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; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa North and South America Asia Other World Period produc­ Congo tion 1 A So fr u i t c h a Ghana s ( h K a i s n a ­ ) U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h i i n l e ip s ­ t A ra u l s ia ­ ot A h l e l r1 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 27.0 22.2 23.5 1971—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 2.4 2.1 Dec................... 85.7 5.9 .5 .3 2.2 2.1 1972—Jan................... 95.3 6.5 .7 2.6 Feb................... 88.2 6.4 .6 2.5 Mar.................. 91.8 6.6 .5 2.6 Apr................... 93.2 7.5 .6 May................. 94.4 6.8 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 BANKING OFFICES □ AUGUST 1972 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Mutual savings banks All Member Nonmember Type of office and type of change banks Total Total Na­ State Total Insured Non­ Insured 1 Nontional insured insured Banks (head office): Dec. 31, 1934............................................................ 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941............................................................ 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 2.......................................................... 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951............................................................ 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1960............................................................ 13,986 13,472 6,174 4,530 1,644 7,300 6,948 352 325 189 Dec. 31, 1965........................................................... 14,309 13,804 6,221 4,815 1,406 7,583 7,320 263 328 111 Dec. 31, 1968............................................................ 14,179 13,679 5,978 4,716 1,262 7,701 7,504 197 333 167 Dec. 31, 1969............................................................ 14,158 13,662 5,871 4,669 1,202 7,791 7,595 196 330 166 Dec. 31, 1970............................................................ 14,181 13,688 5,768 4,621 1,147 7,920 7,735 185 328 165 Dec. 31, 1971.......................................................... 14,273 13,784 5,728 4,600 1,128 8,056 7,875 181 326 163 June 30, 1972.......................................................... 14,364 13,876 5,715 4,607 1,108 8,161 7,955 206 325 163 Branches, additional offices, and facilities: Dec. 31, 1934............................................................ 3,133 3,007 2,224 1,243 981 783 78:3 i:>6 Dec. 31, 1941............................................................ 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 2.......................................................... 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951............................................................ 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1956............................................................ 7,955 7,589 5,886 3,809 2,077 1,703 1,666 37 257 109 Dec. 31, 1960............................................................ 10,969 10,483 8,133 5,509 2,624 2,350 2,303 47 381 105 Dec. 31, 1961............................................................ 11,896 11,353 8,899 6,044 2,855 2,454 2,410 44 427 116 Dec. 31, 1962............................................................ 12,932 12,345 9,649 6,640 3,009 2,696 2,646 50 466 121 Dec. 31, 1963............................................................ 14,122 13,498 10,613 7,420 3,193 2,885 2,835 50 502 122 Dec. 31, 1964............................................................ 15,275 14,601 11,457 8,156 3,301 3,144 3,094 50 549 125 Dec. 31, 1965............................................................ 16,471 15,756 12,298 8,964 3,334 3,458 3,404 54 583 132 Dec. 31, 1966............................................................ 17,665 16,908 13,129 9,611 3,518 3,779 3,717 62 614 143 Dec. 31, 1967............................................................ 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Dec. 31, 1968............................................................ 19,911 19,013 14,553 10,985 3,568 4,460 4,414 46 729 169 Dec. 31, 1969............................................................ 21,196 20,208 15,204 11,727 3,477 5,004 4,957 47 810 178 Dec. 31, 1970............................................................ 22,727 21,643 16,191 12,536 3,655 5,452 5,404 48 891 193 Dec. 31, 1971............................................................ 24,299 23,104 17,085 13,272 3,813 6,019 5,979 40 983 212 June 30, 1972.......................................................... 25,034 23,763 17,459 13,545 3,914 6,304 6,260 44 1,044 227 Changes Jan.-June 30, 1972 Banks: New banks................................................................ 149 149 32 26 6 117 86 31 Suspensions.............................................................. -1 -1 -1 -1 Ceased banking operations ................................. -1 -1 -1 -1 Consolidations and absorptions: Banks converted into branches........................... -49 -49 -21 -16 -5 -28 -25 -3 Other...................................................................... -5 -4 -4 -3 -1 -1 Voluntary liquidations 3........................................... -2 -2 -2 -2 Interclass changes: Nonmember to national ................................... 7 7 -7 -7 Nonmember to State member . ............... 2 2 -2 -2 State member to national............ ............... 3 -3 State member to nonmember . . .. . . . — 20 -20 20 20 National to nonmember ... . . . . — 9 —9 9 9 National to State member.................................... -1 i Net change................................................................. 91 92 -13 7 -20 105 80 25 -1 Number of banks, June 30, 1972............................. 14,364 13,876 5,715 4,607 1,108 8,161 7,955 206 325 163 Branches and additional offices: De novo..................................................................... 742 665 404 301 103 261 255 6 61 16 Banks converted........................................................ 50 50 35 28 7 15 15 Discontinued............................................................. -60 -59 -46 -31 -15 -13 -12 -1 -1 Sale of branch........................................................... -1 -1 -3 -1 -2 2 2 Interclass changes: Nonmember to national....................................... 27 27 -27 -27 Nonmember to State member............................. 47 47 -47 -47 State member to national..................................... 2 -2 State member to nonmember............................... -68 -68 68 68 National to State member................................... -28 28 National to nonmember....................................... -22 -22 22 22 Noninsured to insured......................................... 1 -1 Facilities reclassified as branches......................... 5 5 3 3 2 2 Other......................................................................... 8 8 7 4 3 1 1 Net change................................................................. 744 668 384 283 101 284 280 4 61 15 Number of branches and additional offices, June 30, 1972................................................................. 24,827 23,556 17,286 13,385 3,901 6,270 6,226 44 1,044 221 Banking facilities:4 Discontinued............................................................. -1 -1 -1 -1 Other......................................................................... _3 -3 -6 -6 3 3 Facilities reclassified as branches............................. -5 -5 -3 -3 -2 -2 Net change................................................................. -9 -9 -10 -10 1 1 Number of facilities, June 30, 1972......................... 207 207 173 160 13 34 34 1 Insured mutual savings banks figures include one to three member 3 Exclusive of liquidations incident to succession, conversion, and mutual savings banks, 1941 to 1962 inclusive, not reflected in total com­ absorption of banks. mercial bank figures. 4 Provided at military and other Govt, establishments through arrange­ 2 Series revised as of June 30,1947. The revision resulted in an addition ments made by the Treasury Dept. of 115 banks and nine branches. Note.—Beginning with 1959, figures include all banks in Alaska and Hawaii, but nonmember banks in territories and possesssions are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ FEDERAL RESERVE PAR LIST A 99 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other area Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including Puerto Rico and Virgin Islands:1 Dec. 31, 1971...................... 13,702 23,296 13,440 23,126 5,728 17,121 7,712 6,005 262 170 June 30, 1972..................... 13,770 23,982 13,523 23,840 5,715 17,497 7,808 6,343 247 142 F.R. districts, June 30, 1972: Boston................................. 376 1,720 376 1,720 222 1,176 154 544 New York 1........................ 474 3,768 474 3,768 335 3,297 139 471 Philadelphia........................ 437 1,728 437 1,728 303 1,238 134 490 Cleveland............................. 784 2,126 784 2,126 466 1,747 318 379 Richmond............................ 735 3,352 704 3,313 359 2,070 345 1,243 31 39 Atlanta................................. 1,711 1,754 1,613 1,677 568 1,082 1,045 595 98 77 Chicago............................... 2,604 2,494 2,604 2,494 942 1,634 1,662 860 St. Louis............................. 1,400 972 1,338 960 433 508 905 452 62 12 Minneapolis........................ 1,376 312 1,376 312 494 154 882 158 Kansas City........................ 2,099 350 2,099 350 817 216 1,282 134 Dallas.................................. 1,374 279 1,318 265 632 140 686 125 56 14 San Francisco..................... 400 5,127 400 5,127 144 4,235 256 892 State or area, June 30, 1972: Alabama............................ 273 317 223 296 108 233 115 63 50 21 Alaska............................... 10 68 10 68 5 61 5 7 Arizona.............................. 14 355 14 355 4 252 10 103 Arkansas........................... 252 186 190 174 81 111 109 63 62 12 California.......................... 151 3,216 151 3,216 64 2,837 87 379 Colorado........................... 239 32 239 32 139 21 100 11 Connecticut....................... 62 481 62 481 27 324 35 157 Delaware........................... 18 105 18 105 7 49 11 56 District of Columbia........ 14 111 14 111 12 104 2 7 Florida............................... 553 52 553 52 246 13 307 39 Georgia... 434 452 434 452 71 298 363 154 Hawaii.... 7 145 7 145 1 9 6 136 Idaho........ 24 165 24 165 13 144 11 21 Illinois.... 1,141 131 1,141 131 493 85 648 46 Indiana... 407 692 407 692 183 430 224 262 Iowa.......... 667 329 667 329 150 93 517 236 Kansas___ 606 74 606 74 198 42 408 32 Kentucky., 343 376 343 376 93 220 250 156 Louisiana. 238 429 152 359 59 225 93 134 86 70 Maine. 42 242 42 242 26 178 16 64 Maryland........... 111 581 111 581 46 356 65 225 Massachusetts... 155 794 155 794 95 600 60 194 Michigan............ 331 1,287 331 1,287 205 1,056 126 231 Minnesota.......... 734 17 734 17 223 8 511 9 Mississippi.......... 182 387 182 387 45 166 137 221 Missouri............. 670 108 670 108 170 45 500 63 Montana............ 146 12 146 12 96 9 50 3 Nebraska............ 441 47 441 47 135 28 306 19 Nevada............... 8 91 8 91 5 79 3 12 New Hampshire. 74 69 74 69 49 57 25 12 New Jersey 211 1,133 211 1,133 151 982 60 151 New Mexico 70 144 70 144 40 92 30 52 New York......... 300 2,620 300 2,620 235 2,464 65 2 156 North Carolina. 90 1,266 70 1,230 24 638 46 592 20 36 North Dakota.. 168 72 168 72 47 15 121 57 Ohio.................. 510 1,406 510 1,406 337 1,182 173 224 Oklahoma........ 437 79 437 79 209 56 228 23 Oregon............. 47 364 47 364 8 263 39 101 Pennsylvania__ 445 1,857 445 1,857 305 1,370 140 487 Rhode Island.., 16 182 16 182 5 97 11 85 South Carolina. 96 471 85 468 24 262 61 206 South Dakota.. 159 102 159 102 57 68 102 34 Tennessee......... 310 558 310 558 90 350 220 208 Texas................ 1,228 90 1,210 90 579 29 631 61 18 Utah................. 51 152 51 152 15 108 36 44 Vermont........... 41 92 41 92 25 37 16 55 Virginia............ 251 919 251 919 146 708 105 211 Washington.... 91 594 91 594 30 503 61 91 West Virginia.. 200 6 200 6 119 2 81 4 Wisconsin........ 610 292 610 292 164 91 446 201 Wyoming.......... 71 2 71 2 55 1 16 1 Puerto Rico 1... 13 203 13 203 19 13 184 Virgin Islands 1. 27 8 27 27 7 1 Puerto Rico and the Virgin Islands assigned to the New York District Note.—Includes all commercial banking offices in the United States, for purposes of Regulation J, “Check Clearing and Collection.” Member Puerto Rico, and the Virgin Islands on which checks are drawn, including branches in Puerto Rico and all except eight in the Virgin Islands are 207 banking facilities. Number of banks and branches differs from that branches of banks located in California, New York, and Pennsylvania. in the table on p. A-98 of the Aug. 1972 Bulletin, because this table in­ Certain branches of Canadian banks (two in Puerto Rico and one in cludes banks in Puerto Rico and the Virgin Islands but excludes banks Virgin Islands) are included above in the table as nonmember banks; and trust companies on which no checks are drawn. and nonmember branches in Puerto Rico include eight branches of Canadian banks. 2 Includes fifteen New York City branches of three insured nonmember Puerto Rican banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1972 □ BANK HOLDING COMPANY GROUPS A 101 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1971 A. Details for 49 States and District of Columbia Number of offices Assets Deposits Banks and branches As a As a State Number of percentage percentage companies1 As a In of all In of all Banks Branches percentage millions commercial millions commercial Total of all of dollars bank of dollars bank commercial assets deposits banking offices Totals—49 States and District 1,567 2,420 10,832 13,252 362,315 297,011 Alabama..................................... 15 25 112 137 24.0 1,799 27.2 1,526 26.4 Alaska........................................ 2 1 4 5 7.0 69 9.5 62 9.5 5 6 209 215 60.2 2,697 51.5 2,351 54.4 Arkansas.................................... 18 19 35 54 12.6 816 19.8 699 19.2 California................................... 38 39 2,242 2,281 69.1 51,744 76.6 42,607 75.9 Colorado.................................... 69 102 12 114 38.1 4,202 71.2 3,613 71.3 Connecticut............................... 6 8 246 254 47.7 3,766 58.9 3,259 58.5 3 3 24 27 23.1 306 18.1 274 19.2 District of Columbia................. 5 3 32 35 28.9 859 25.5 761 25.8 59 235 6 241 42.7 11,433 62.2 10,038 61.8 27 37 238 275 32.9 5,692 56.1 4,385 53.0 3 3 76 79 42.0 723 41.7 636 41.3 145 138 20 158 12.6 24,694 52.9 19,973 50.9 Indiana....................................... 24 22 149 171 15.9 4,412 31.5 3,519 29.4 136 148 106 254 25.5 3,192 38.6 2,817 38.3 101 97 15 112 16.6 1,851 28.3 1,540 27.4 15 13 40 53 7.5 794 11.4 658 10.7 15 14 77 91 14.1 2,685 30.4 2,297 29.9 6 19 131 150 53.8 865 53.9 735 53.1 14 13 153 166 24.8 1,950 28.3 1,631 27.5 Massachusetts........................... 15 36 415 451 48.2 10,605 72.5 8,369 70.9 Michigan.................................... 27 22 109 131 8.3 1,738 6.5 1,555 6.7 110 222 16 238 31.8 8,713 71.2 7,353 69.7 4 4 53 57 10.4 1,068 26.1 918 25.3 Missouri..................................... 95 145 47 192 24.9 8,981 60.0 7,336 57.8 34 64 7 71 46.4 1,476 69.7 1,291 69.1 110 111 19 130 26.7 2,271 47.9 1,952 47.3 Nevada....................................... 3 3 65 68 70.1 1,064 69.3 956 69.7 New Hampshire........................ 3 8 11 19 13.4 374 27.2 320 27.2 15 33 320 353 27.1 7,085 36.5 6,166 36.1 New Mexico.............................. 12 25 80 105 50.7 1,415 67.8 1,238 67.3 47 83 2,008 2,091 72.0 108,434 89.2 85,831 89.4 North Carolina......................... 8 10 708 718 54.7 6,674 66.9 5,522 66.0 North Dakota........................... 19 46 23 69 28.9 890 44.8 791 44.8 44 103 502 605 32.2 10,479 37.9 8,928 37.8 48 47 11 58 11.5 3,160 42.8 2.593 41.1 4 4 269 273 67.6 4,323 83.0 3,760 82.8 Pennsylvania.............................. 21 23 642 665 29.2 15,642 41.4 12,674 40.3 Rhode Island............................. 9 9 166 175 91.6 2,052 95.0 1,740 95.1 South Carolina.......................... 6 6 112 118 21.3 805 24.8 699 25.1 26 37 71 108 41.7 1,160 58.5 1,027 58.2 Tennessee................................... 17 30 176 206 24.6 3,730 36.9 3,156 36.3 Texas.......................................... 108 142 10 152 11.9 16,826 47.4 13,464 44.8 Utah........................................... 10 12 116 128 66.0 1,816 74.6 1,549 73.8 Vermont..................................... 2 2 7 9 6.9 95 8.6 84 8.5 Virginia...................................... 26 82 573 655 58.7 6,660 62.9 5,795 62.9 5 9 274 283 41.9 3,198 43.0 2,731 44.0 West Virginia........................... 8 8 8 3.9 175 4.5 152 4.6 51 126 95 221 24.6 6,376 51.8 5,256 49.5 19 23 23 31.9 481 45.8 424 45.4 B. Summary totals and comparisons 49 States and District of Columbia Holding company groups as a per­ centage of all commercial banks in— United States— Item All commer­ Holding All cial banks 49 States company commercial and District United States groups banks of Columbia Number of banking offices—Total..................................... 13,252 36,582 36,741 36.2 36.1 Banks........................................................................... 2,420 13,776 13,786 Branches...................................................................... 10,832 22,806 22,955 Deposits (millions of dollars).............................................. 297,011 536,716 538,626 55.3 55.i Assets (millions of dollars)................................................. 362,315 638,745 640,935 56.7 56.5 1 Data for individual States represent bank holding companies having Holding Company Act of 1956. The data include companies that have subsidiary banks in the respective States rather than bank holding compa­ reported to the Board, and include some companies that have filed registra­ nies whose principal offices are located in such States. Total does not tion statements pursuant to the Act, but whose holding company status equal sum of State figures because it has been corrected for duplications; has not yet been determined by the Board. Companies that notified the that is, holding companies that have subsidiary banks in more than one Board of the divestment of their bank subsequent to December 31, 1971, State are included in the total only once. are excluded from the data. (A list showing the names, offices, total assets, and total deposits of the banks in the holding company groups Note.—Holding companies referred to are as defined in the Bank is available upon request.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. Mitchell J. Dewey Daane Andrew F. Brimmer John E. Sheehan J effrey 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 James L. Pierce, Adviser Management Systems Stanley J. Sigel, Adviser William W. Layton, Director of Equal Murray S. Wernick, Adviser Employment 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 103 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER Ronald G. Burke, Director John Kakalec, Controller John J. Hart, Assistant Director Harry J. Halley, Deputy Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director Charles L. Hampton, Associate Director DIVISION OF ADMINISTRATIVE SERVICES Glenn L. Cummins, Assistant Director Benjamin R. W. Knowles, Jr., Joseph E. Kelleher, Director Assistant Director Walter W. Kreimann, Deputy Director Henry W. Meetze, Assistant Director Donald E. Anderson, Assistant Director Richard S. Watt, Assistant Director John D. Smith, Assistant Director Edward K. O’Connor, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 FEDERAL OPEN MARKET COMMITTEE 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 Willis J. Winn George W. Mitchell Robert C. Holland, Secretary Robert Solomon, Economist (International Finance) Arthur L. Broida, Deputy Secretary Edward G. Boehne, Associate Economist Murray Altmann, Assistant Secretary Ralph C. Bryant, Associate Economist Normand R. V. Bernard, Assistant Secretary Lyle E. Gramley, Associate Economist Howard H. Hackley, General Counsel Ralph T. Green, Associate Economist Thomas J. O’Connell, Assistant General Counsel A. B. Hersey, Associate Economist J. Charles Partee, Senior Economist William J. Hocter, Associate Economist John H. Kareken, Associate Economist Stephen H. Axilrod, Economist (Domestic Finance) Robert G. Link, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL 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 105 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch Boston ...................... 02106 James S. Duesenberry Frank E. Morris Louis W. Cabot Earle O. Latham New York................ 10045 Roswell L. Gilpatric Alfred Hayes Ellison L. Hazard William F. Treiber Buffalo................. ....14240 Morton Adams A. A. Maclnnes, Jr. Philadelphia ......... 19101 Bayard L. England David P. Eastburn John R. Coleman Mark H. Willes Cleveland ................ 44101 Albert G. Clay Willis J. Winn J. Ward Keener Walter H. MacDonald Cincinnati ........... 45201 Graham E. Marx Fred O. Kiel Pittsburgh ............ 15230 Lawrence £. 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 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 C. Guynn 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 H. Breckenridge Arthur L. Price Seattle................... 98124 C. Henry Bacon, Jr. William R. Sandstrorn Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons 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 107 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.y 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. 214 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. Summaries only printed in the BULLETIN. CREDIT RATIONING: A REVIEW, by Benjamin M. 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 108 FEDERAL RESERVE BULLETIN □ AUGUST 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 109 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 POSITION. Apr. 1972. 15 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. OPEN MARKET OPERATIONS AND THE MONETARY AND CREDIT AGGREGATES—1971. Apr. 1972. 23 BANK RATES ON BUSINESS LOANS—REVISED pp. SERIES. June 1971. 10 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. INDUSTRIAL PRODUCTION—REVISED AND NEW 1972. 5 pp. MEASURES. July 1971. 26 pp. FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER OF 1972. May 1972. 9 pp. BANKING AND MONETARY STATISTICS, 1970. Se­ lected series of banking and monetary statistics CONSTRUCTION LOANS AT COMMERCIAL BANKS. for 1970 only. Feb., Mar., and July 1971. 19 June 1972. 12 pp. pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY REVISED MEASURES OF MANUFACTURING CAPAC­ REFORM. June 1972. 5 pp. ITY UTILIZATION. Oct. 1971. 3 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. June 1972. 10 pp. REVISION OF THE MONEY STOCK. Nov. 1971. 14 pp. CHANGES IN TIME AND SAVINGS DEPOSITS AT COMMERCIAL BANKS, JANUARY—APRIL 1972. July BALANCE OF PAYMENTS PROGRAM: REVISED 1972. 11 pp. GUIDELINES FOR BANKS AND NONBANK FINAN­ CIAL INSTITUTIONS. Nov. 1971. 11 pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ OVER-REVISED SERIES. July 1972. 5 pp. REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 RECENT REGULATORY CHANGES IN RESERVE pp. REQUIREMENTS AND CHECK COLLECTION. July 1972. 5 pp. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. Dec. 1971. FINANCIAL DEVELOPMENTS IN THE SECOND QUAR­ ii pp. TER OF 1972. August 1972. 9 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 101-A hguorht 4-A segap o t era secnerefeR( A 110 FEDERAL RESERVE BULLETIN □ AUGUST 1972 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 14, 33, 35 Demand deposits: Agricultural loans of commercial banks, 24, 26 Adjusted, banks and the monetary system, 19 Arbitrage, 95 Adjusted, commercial banks, 15, 18, 25 Assets and liabilities (See also Foreigners): Banks, by classes, 11, 20, 25, 29 Banks, by classes, 20, 24, 25, 26, 39 Ownership by individuals, partnerships, and Banks and the monetary system, 19 corporations, 32 Corporate, current, 50 Subject to reserve requirements, 18 Federal Reserve Banks, 12 Turnover, 15 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 56, 57, 58 Accumulated at commercial banks for payment of per­ Production index, 60, 61 sonal loans, 32 Adjusted, and currency, 19 Bank credit proxy, 18 Banks, by classes, 11, 20, 25, 29, 39 Euro-dollars, 90 Bank holding companies, banking offices and deposits of group Federal Reserve Banks, 12, 90 banks, Dec. 31, 1971, 101 Postal savings, 19, 25 Bankers’ balances, 25, 28 Subject to reserve requirements, 18 (See also Foreigners, claims on, and liabilities to) Discount rates (See Interest rates) Banking offices: Discounts and advances by Fed. Reserve Banks (See Loans) Changes in number, 98 Dividends, corporate, 50 Par and nonpar offices, number, 99 Dollar assets, foreign, 77, 83 Banks and the monetary system, 19 Banks for cooperatives, 40 Earnings and hours, manufacturing industries, 67 Bonds (See also U.S. Govt, securities): Employment, 64, 66, 67 New issues, 47, 48, 49 Euro-dollar deposits in foreign branches of U.S. banks, 90 Yields and prices, 36, 37 Branch banks, foreign, 30, 88, 89, 90 Farm mortgage loans, 51, 52 Brokerage balances, 87 Federal agency obligations, 12, 13, 14, 15 Business expenditures on new plant and equipment, 50 Federal finance: Business indexes, 64 Cash transactions, 42 Business loans (See Commercial and industrial loans) Receipts and expenditures, 43 Treasury operating balance, 42 Capacity utilization, 64 Federal funds, 8, 24, 26, 30, 35 Capital accounts: Federal home loan banks, 40, 41, 53 Banks, by classes, 20, 25, 30 Federal Home Loan Mortgage Corporation, 55 Federal Reserve Banks, 12 Federal Housing Administration, 51, 52, 53, 54, 55 Central banks, 94, 96 Federal intermediate credit banks, 40, 41 Certificates of deposit, 30 Federal land banks, 40, 41 Coins, circulation, 16 Federal National Mortgage Assn., 40, 41, 54 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 18, 24, 33 Condition statement, 12 Weekly reporting banks, 26, 31 U.S. Govt, securities held, 4, 12, 15, 44, 45 Commercial banks: Federal Reserve credit, 4, 6, 12, 15 Assets and liabilities, 18, 20, 24, 25, 26 Federal Reserve notes, 12, 16 Banking offices, changes in number, 98 Federally sponsored credit agencies, 40, 41 Consumer loans held, by type, 57 Finance companies: Deposits at, for payment of personal loans, 32 Loans, 26, 56, 57, 59 Loans sold outright, 33 Paper, 33, 35 Number, by classes, 20 Financial institutions, loans to, 24, 26 Real estate mortgages held, by type, 52 Float, 4 Commercial paper, 33, 35 Flow of funds, 72 Condition statements (See Assets and liabilities) Foreign: Construction, 64, 65 Currency operations, 12, 14, 77, 83 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 25, 29, 90 Instalment credit, 56, 57, 58, 59 Exchange rates, 93 Noninstalment credit, by holder, 57 Trade, 75 Consumer price indexes, 64, 68 Foreigners: Consumption expenditures, 70, 71 Claims on, 84, 85, 90, 91, 92 Corporations: Liabilities to, 30, 78, 79, 81, 82, 83, 90, 91, 92 Profits, taxes, and dividends, 50 Security issues, 48, 49 Gold: Security yields and prices, 36, 37 Certificates, 12, 13, 16 Cost of living (See Consumer price indexes) Earmarked, 90 Currency and coin, 5, 10, 25 Net purchases by United States, 76 Currency in circulation, 5, 16, 17 Production, 97 Customer credit:, stock market, 38 Reserves of central banks and govts., 96 Stock, 4, 19, 77 Debits to deposit accounts, 15 Government National Mortgage Assn., 54 Debt (See specific types of debt or securities) Gross national product, 70, 71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 111 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, 98 Reserve position, basic, member banks, 8 Interbank deposits, 11, 20, 25 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 Savings deposits (See Time deposits) Commercial banks, 18 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 Banks, by classes, 20, 24, 26, 27, 39 State and local govts.: Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34 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 Manufacturers: State member banks, 22, 32, 98 Capacity utilization, 64 Stock market credit, 38 Production index, 61, 64 Stocks: Margin requirements, 10 New issues, 48, 49 Member banks: Yields and prices, 36, 37 Assets and liabilities, by classes, 20, 24 Tax receipts, Federal, 43 Banking offices, changes in number, 98 Time deposits, 11, 18, 19, 20, 25, 29 Borrowings at Federal Reserve Banks, 6, 12 Treasury cash, Treasury currency, 4, 5, 16, 19 Deposits, by classes, 11 Treasury deposits, 5, 12, 42 Number, by classes, 20 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 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 Mutual savings banks, 19, 29, 39, 44, 45, 52, 98 Dealer transactions, positions, and financing, 46 National banks, 22, 32, 98 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 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 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Ownership, 44, 45 Par and nonpar banking offices, number, 99 Yields and prices, 36, 37 Payrolls, manufacturing index, 64 United States notes, 16 Personal income, 71 Utilities, production index, 61, 63 Postal savings, 19, 25 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 101-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^1] Chicago j OmaJta* Oklahoma. City * 7 ^ “ Attanta Dallas Jioustcn Antonio* Miami January 1972 'Drawn btfH.W §cdvin,CaTt (c THE FEDERAL RESERVE SYSTEM g) a ■Cs ALASKA HAWAII Legend Boundaries of Federal Reserve Districts --------Boundaries of Federal Reserve Branch Territories o B oard of G overnors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve B ranch Cities Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis