Federal Reserve Bulletin, 1972-09
Federal Reserve Bulletin SEPTEMBER 1972 * * * * * * * *f^AL 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 9 □ VOLUME 58 □ SEPTEMBER 1972 747 The Labor Market in an Expanding Economy 757 Treasury and Federal Reserve Foreign Exchange Operations 783 Yields on Newly Issued Corporate Bonds 785 Statement to Congress 790 Record of Policy Actions of the Federal Open Market Committee 797 Law Department 851 Announcements 852 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 98 Board of Governors and Staff A 100 Open Market Committee and Staff; Federal Advisory Council A 101 Federal Reserve Banks and Branches A 102 Federal Reserve Board Publications A 106 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
The Labor Market in an Expanding Economy EMPLOYMENT and production began to rise sharply about a year ago in response to a significant upturn in demand. Unemployment showed little improvement until the spring of 1972, however, as gains in employment were about matched by increases in the labor force. At the same time, a strong cyclical rebound of growth in productivity, together with some dampening of wage increases, has brought about a moderation of the rise of unit labor costs and of upward pressure on prices. Strengthening of labor demand began unusually late in the recovery—more than half a year after the trough of late 1970. Once the recovery got under way, the composition of employment gains was similar to previous experience. The initial impetus to employment occurred in the service-producing sectors, where hiring j After summer of 1971, INCREASED DEMANDS stimulated growth of employment; but with faster labor force growth, the decline in unemployment was small ♦Affected by major strike. Seasonally adjusted data. Changes in GNP are at annual rates. Labor force, employment, and unemployment rates are quarterly averages except for 1972 Q3 which is a July—August average. Real GNP is in 1958 dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
748 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 accelerated after a recession lull. The subsequent recovery of industrial production brought increases in both manufacturing em ployment and working hours, but these came late and were mild compared with those in other cyclical upturns. Moreover, between May and August 1972, manufacturing employment was about unchanged. Mainly as a result of sluggishness in manufacturing, total nonfarm payroll employment has risen by only 3 per cent since the cyclical peak in the fall of 1969. From the cycle trough until mid-1972, growth of the labor force about matched increases in employment. As a result, unemploy ment remained near 6 per cent until June 1972, when it dropped to around 5V2 per cent and held there through August. Labor force growth was particularly rapid from mid-1971 until the spring of 1972 as the rate of labor force participation moved back toward the level of early 1970. This cyclical increase in labor force growth was augmented by the continuing flow of veterans into the civilian labor market. In contrast to most previous postwar cyclical experience, in creases in wages and prices had shown little tendency to slow during the recession. Since the economic stabilization program was insti tuted in August 1971, however, increases in average hourly com pensation have been reduced somewhat. In the private nonfarm economy, average hourly compensation rose 6.2 per cent over the year ending in the second quarter of 1972—1 percentage point less than in the comparable 1970-71 period. In conjunction with the strong cyclical recovery of growth in productivity, this improvement contributed to a substantial slowing of the rise in unit labor costs. LABOR DEMAND Increased spending by consumers and businesses provided the basis for sharp advances in production, employment, and productivity after the summer of 1971. Real GNP increased by 6.2 per cent over the year ending in the second quarter of 1972, while total employment advanced by 2.4 million persons, or about 3 per cent. Employment gains amounted to roughly 900,000 each for men and women and about 600,000 for teenagers. Most of the increase in total employment occurred among full-time workers—threefifths of the advance was among blue-collar workers, many of whom had been laid off in 1969 and 1970. Reflecting this pattern of recovery, the reduction of unemployment since the summer of 1971 has been most pronounced for blue-collar workers seeking full-time jobs in the manufacturing industries. Most such workers are heads of households and the jobless rate of this group declined significantly over the past year to 3.3 per cent in August 1972. Job gains in the services, trade, and State and local government sectors totaled 1.8 million in the past year after having slowed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LABOR-MARKET DEVELOPMENTS 749 to an annual rate of about 1 million during and just after the recession. Employment increases in these service-producing indus tries had averaged 1.6 million annually over the 2 years before the recession. The average workweek in the service-oriented in dustries has continued its long-run downward trend during the recovery. This secular decline is primarily a result of increases in the number of part-time workers—a trend that may change or at least moderate with slowly developing changes in the age structure of the population. 2 I EMPLOYMENT GROWTH strengthens in service-type industries SERVICES BLS payroll employment data, seasonally adjusted. 1972 Q3 is a July-August average. As usual, the average weekly hours of factory workers turned up before manufacturing employment began to rise, showing about a 6-month lead. By August 1972, factory hours reached 40.7 hours, nearly an hour longer than a year earlier and close to the average level in the 1967-69 period. Increased overtime hours accounted for more than half the rise in working hours—a typical recovery pattern. Manufacturing employment was on a downward path from July 1969 until August 1971. Over that period, it registered a net decline of 1.8 million jobs—with about one-fourth of this decline in de fense-oriented industries. With a net gain of only 540,000 factory jobs since August 1971—the lowest point for factory employ ment—the greater part of the over-all drop has yet to be made FACTORY WORKWEEK up; factory jobs remain 1.3 million below the level of mid-1969. During the recent recession, employment cuts among nonpro duction workers in manufacturing were far larger than in the past. During previous postwar recessions, employment of nonproduction workers edged down only 1 or 2 per cent and then resumed growth during the recovery phase. In this cycle, job losses by nonproduc tion workers were larger—about 6 per cent—and continued well after the trough. Layoffs of engineers and other professionals at FR data on industrial production and bls data on employment and hours, defense firms accounted for most of the extra reduction at the early Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
750 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 stages. During the recovery of 1972, however, the number of nonproduction jobs has remained about unchanged; apparently employers in most firms have continued to curb cost increases by limiting hiring and by promoting productivity growth in the office as well as on the production line. Although total employment of professional and technical workers rose in nonmanufacturing firms, the growth was not rapid enough to absorb new entrants and those PRODUCTION WORKERS losing defense-type jobs. As a result, unemployment among pro fessional and technical workers rose more sharply than usual in this recession (from 1.0 per cent at its low to 3.3 per cent at its high) and continues relatively high. Declines in employment during the recession were unevenly bls data, seasonally adjusted. distributed across the Nation. The largest losses of jobs occurred in States that have concentrations of durable goods manufacturing industries—particularly defense products firms. States that showed the largest relative declines included California, Washington, Michigan, New York, and Illinois. Employment continued to expand in the South during the reces sion—in part because durable goods manufacturing plays a less important role in that region. And since mid-1971 employment in the West and in industrial States in the North has recovered some of the earlier losses. In several important industrial States, how ever, the current number of jobs remains below 1969 levels. LABOR SUPPLY Growth in the supply of labor has about equaled changes in total employment over most of the past 22 months. From November 1970—the trough of the cycle—to August 1972, the civilian labor force increased by 3.7 per cent and total civilian employment rose by 4.0 per cent. Month-to-month movements over the period were similar in size until June 1972 when employment growth moved slightly ahead of the labor force and the unemployment rate moved down to about 5xh per cent, where it remained through August. Cyclical responsiveness of the labor force to changes in labor market conditions is reflected in participation rates (the percentage of the population either working or seeking work). During the recent recession the labor force participation rate dropped substan tially as persons unable to find work ceased looking and others who might have come into the labor force were discouraged from doing so. Among the major groups the decline in participation took the form of faster and larger reductions in the participation rates of men and a slowing of the increase in participation of women. During the recovery, participation rate changes for most broad groups appear to have resumed their longer-run trends. As a result, the average participation rate has returned to about its pre-recession level: hence, continued strong demands for labor are much more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LABOR-MARKET DEVELOPMENTS 751 likely to reduce the ranks of the unemployed than to stimulate rapid growth of the labor force. The cyclical rebound of labor force growth was largest for adult women; their number in the civilian labor force has increased by 1.1 million since mid-1971. Adult women filled more than one CIVILIAN LABOR FORCE: growth increases sharply; gains especially large for women CHANGE, MILLIONS OF PERSONS WOMEN MEN TEENAGERS MEN AGED 20 AND OVER AGED 25 AND OVER AGED 20 TO 24 1.0 a n a D r I 0 ’70 '71 72 ’69 ’70 ’71 12 ’69 ’70 ’71 ’72 ’69 ’70 ’71 ’72 BLS household survey data. Changes from a year earlier are based on annual averages for 1969-71 and July-August 1972. quarter of the additional professional and technical jobs, about two-thirds of the added clerical jobs, and three-fourths of the service jobs (excluding private household workers). About 500,000 teen agers were added to the labor force this past year; approximately half of this rise was due to growth in their population and half due to an advance in their participation rate. The number of men aged 20 and over in the civilian labor force MALES- UNEMPLOYMENT RATE increased by 1.0 million over the past year. About half the rise occurred among 20- to 24-year olds in part because continuing reductions in the Armed Forces increased the number of young men seeking civilian jobs. About half a million men aged 25 years and over were added to the civilian labor force, owing entirely to ■■■■■■■■■■■■I LABOR FORCE PARTICIPATION RATE an increase in their civilian population, and the labor force partici pation rate of this group continued its secular decline. The reduc tion in male participation has been particularly pronounced among Negro men, whose rates of participation have declined for all age groups. The reasons for these continuing declines are not entirely BLS household survey data. Annual clear, but in light of the particularly large drop in 1970 and 1971 averages except for 1972, which is discouragement with the job market must be counted as a major a seasonally adjusted half-year average. factor. UNEMPLOYMENT Unemployment did not climb so high in this recession as in previous post-World-War-II downturns, but it remained near its cyclical high point for 19 months—an unusually long period. Not until June Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
752 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 1972 did the jobless rate go below the 5.8 to 6.1 per cent range in which it had fluctuated since November 1970. The unemployment rate had initially reached the 6 per cent range in late 1970, primarily as a result of layoffs in durable goods manufacturing where a weak demand situation was aggravated by secondary effects of an auto strike. At that time, and throughout 1971, the number of persons among the unemployed who had been laid off averaged about 2.3 million, about 1.3 million more than in late 1969 when demand for labor was still strong. Most such workers were eligible for unemployment insurance benefits, and the number of workers drawing jobless benefits spurted from about 1.2 million late in 1969 to about 2.2 million late in 1970. Insured unemployment continued high until late 1971, when the character of unemployment began to change. Unemployment among adult men, which had risen rapidly during 1970, began to move lower as layoffs declined and factory hiring increased. Rates of unemployment in August 1972 were lower than a year earlier for most groups. The sharpest relative reduction occurred among men aged 20 years and over where the unemployment rate dropped from 4.5 per cent to 3.9 per cent; in the pre-recession period the rate for this group had been fluctuating around 2 per cent. The improvement in the rate for adult men was reflected in declines in the unemployment rates of heads of households, full-time workers, married men, blue-collar workers, and those in the manufacturing sector. In contrast, the unemployment rate for white-collar workers was unchanged from a year earlier and only slightly lower than at its cyclical high. Employment of white-collar UNEMPLOYMENT declines somewhat in 1972, but JOBLESS RATES continue relatively high for most groups PER CENT NEGRO AND OTHER BLS household data, seasonally adjusted quarterly averages except for 1972 Q3, which is a July-August average. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LABOR-MARKET DEVELOPMENTS 753 workers has continued to increase but demand has merely kept pace with increases in the number of workers seeking such jobs. Unemployment among white workers has moved down over the past year but Negro joblessness has remained virtually unchanged since the spring of 1971 at a rate near 10 per cent. In previous recoveries, the rate for whites began to decline some months be fore the rate for Negroes. LABOR COSTS Progress has been made in reducing upward cost and price pres- AND WAGES sures. The bulk of the improvement reflects accelerated productivity growth, which—spurred by substantial gains in output—has shown a strong, if belated, post-recession pattern of recovery. In the private nonfarm sector, productivity advanced by 4.2 per cent from the first half of 1971 to the first half of 1972 with faster growth occurring in 1972. This advance compares with increases of less than 1 per cent each in 1969 and in 1970 and a trend increase of just over 2xh per cent per year for the post-World-War-II period. Growth of hourly compensation in the private nonfarm sector from a year earlier slowed from 7.2 per cent for early 1971 to Increases in UNIT LABOR COSTS slow - mainly because of greater growth in productivity PERCENTAGE CHANGE OVER THE YE/ 8 HOURLY COMPENSATION 4 0 PRODUCTIVITY 0 2 8 UNIT LABOR COSTS 4 0 1969 1970 1971 BLS data. Changes from a year earlier based on half-year averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
754 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 6.5 per cent for the first half of 1972. As with productivity, improvement was most pronounced in the spring of 1972. The acceleration of gains in productivity during the past year, in combination with the moderation of increases in compensation, resulted in a dramatic reduction in the rate of increase in unit labor costs. For the first half of 1972 the increase in unit labor costs from a year earlier averaged 2.2 per cent. These increases in unit labor costs were less than one-third as large as those in 1969 and 1970. Maintenance of the improved performance of unit labor costs will depend to a large extent on further slowing of increases in average hourly compensation because cyclical increases in produc tivity as large as those in the past three quarters are not likely to be sustained. The growth of workers’ hourly compensation has moderated somewhat since the economic stabilization program began in Au gust 1971. The pattern of changes in pay rates has been uneven, however, reflecting changes in the nature and coverage of the wage control aspect of the program. Growth of wage rates was virtually halted during the freeze, but early in Phase II wage rates spurted up sharply as pay increases scheduled for the freeze period were allowed to be put into effect. In 1972, the trend of wage changes began to reflect more clearly the restraining influence of the con trols. The Pay Board, which is the administrative and policy arm of the program to dampen wage growth, initially set a standard for pay increases of 5xh per cent annually. A number of exceptions to the generally permissible increase allow larger wage adjustments in particular circumstances. The Pay Board reviews all pay adjust ments for employee units of 1,000 or more workers and any other proposed increases that are in excess of the generally permissible standard. The average of pay adjustments approved by the Board was in fact around 5V2 per cent through August 1972. The recent trend of hourly earnings of production workers in private nonfarm industry suggests that progress has been made in the effort to moderate the growth of wages generally. Hourly earnings of production workers—adjusted for interindustry shifts— have increased by 5.6 per cent in the year since August 1971, compared with a 6.9 per cent increase in the preceding year. Since December 1971 hourly earnings have risen at an annual rate of just over 5 per cent. The most dramatic reduction of wage rate inflation has occurred in the construction industry. Throughout the late 1960’s, increases in hourly earnings of construction workers grew progressively larger, reaching a peak average increase of 9.6 per cent in 1970. (In that year, first-year wage increases under construction industry collective bargaining agreements averaged 17.6 per cent.) In order Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LABOR-MARKET DEVELOPMENTS 755 6 [Increases in HOURLY EARNINGS smaller over past year PERCENTAGE CHANGE FROM YEAR EARLIER 72 & BLS data on production workers’ hourly earnings adjusted for interindustry shifts and overtime in manufacturing. Changes based on averages for the months of June, July, and August. to halt the wage spiral in construction, the Construction Industry Stabilization Committee was established early in 1971. This com mittee has the authority to review and approve or disapprove all collective bargaining agreements in the construction industry. As of August 1972 the year-to-year growth of average hourly earnings in the industry had declined to 5.5 per cent. Collective bargaining agreements negotiated since November 1971—when the committee came under the jurisdiction of the Pay Board—and approved by the committee provide average increases of only 5.7 per cent in wages and fringe benefits. The reduced pace of earnings increases in construction during recent months is attributable in part to the activities of the committee, but other factors including high unem ployment among construction workers and slack nonresidential building activity in some parts of the country also may have been important factors. Aside from construction, the slowing of wage increases has been most pronounced in service, finance, and trade—industries that tend to be less unionized and to be composed of smaller establishments. In services, where increases in wages reached a peak annual rate of more than 8 per cent in early 1971, average hourly earnings were up by only 3.5 per cent over the year ending August 1972. In trade and finance, the picture since mid-1971 has been similar, although the slowing has been less dramatic. Employers in these industries may be relying heavily on Pay Board regulations to help hold down their wage costs. Also, because wage determination in these industries tends to be more individualized, more flexible, and less rigidly periodic, wages may respond more quickly to changes in economic and institutional conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
756 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 In contrast, growth of wages in the highly unionized manufac turing sector has slowed less dramatically. In the transportation and public utilities industry group, growth of wages has actually increased. In both situations, the wage adjustments provided for in contracts that were settled before the controls program was inaugurated have tended to maintain the earlier rapid growth of wages. The few new collective bargaining agreements that have been negotiated in manufacturing in the past 6 months have pro vided smaller increases than those negotiated before the economic stabilization program began, and increases in hourly earnings in 1972 have been down to the 5lA per cent zone. COLLECTIVE Major negotiations completed in the first half of 1972, which BARGAINING affected only 870,000 workers, showed a significant slowdown in wage rate adjustments for the first year of the contract: increases averaged 7.5 per cent compared with 11.7 per cent in 1971. Smaller first-year wage increases—a movement away from the practice of front-end loading of contracts—probably resulted from Pay Board regulations that emphasize consideration of adjustments at the time of implementation. A consequence has been a pattern of more even distribution of wage adjustments over the life of the contract. Wage increases over the full term of new contracts, however, slowed considerably less than first-year increases—from 8.1 per cent annually in 1971 contracts to 7.1 per cent in contracts signed in the first 6 months of 1972. Contracts signed in 1972 have also been of somewhat shorter duration than earlier settlements. Both reduced front-end loading and shorter contracts reflect the existence of a controls program of uncertain duration, and these tendencies are likely to continue during the stabilization period. Bargaining activity will continue to be light for the remainder of 1972; slightly more than 1 million workers are covered under major contracts coming up for renewal. However, bargaining will accelerate in 1973 as contracts expire in major industries such as trucking, construction, electrical equipment, and autos. During 1973 new contracts affecting more than 4.1 million workers will be negotiated; this is more than twice as many as in 1972. If price increases continue to moderate, a less inflationary pattern of wage increases may be established in these important industries. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations This 21st joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Senior Vice President in charge of the available additional information on foreign ex Foreign Department of the Federal Reserve change operations from time to time. The Fed Bank of New York, and Special Manager, eral Reserve Bank of New York acts as agent System Open Market Account. It covers the for both the Treasury and the Federal Open period March to September 1972. Previous Market Committee of the Federal Reserve Sys reports have been published in the March and tem in the conduct of foreign exchange opera September B ulletins of each year beginning tions. with September 1962. The Smithsonian Agreement of December 18, the interest rate gap between Europe and the 1971, was greeted with satisfaction and relief United States began to be squeezed out from by the exchange markets. Rates for a number both sides. As recessionary tendencies contin of European currencies settled at or close to their ued in Europe, discount rate cuts were an new floor levels, and sizable reflows of funds nounced in Germany, Belgium, and the Nether to the United States developed through the lands, while the U.S. Treasury bill rate rose year-end. Following the turn of the year, how significantly. ever, market optimism shifted to an anxious and The dollar showed growing strength and re even skeptical mood as traders began to ponder siliency throughout most of the spring months, the long negotiating path to a restructured in as a return flow of short-term funds largely ternational financial system. Market concern fo offset continuing deficits in other components cused particularly on the risk that certain foreign of the U.S. balance of payments. This encour central banks might suddenly withdraw from aging trend was abruptly reversed midway in their Smithsonian commitments to defend their June, however, as sterling was suddenly swept currencies at the new upper limits, and succes off its Smithsonian parity by a speculative wave sive waves of speculation in January and Feb that had been gathering force for many months ruary drove the mark, the guilder, the Belgian past. In allowing sterling to float on June 23, franc, and the yen close to or hard against their the British authorities indicated that the defense official ceilings. of sterling during the previous 6 days had cost The central banks concerned intervened de the equivalent of $2.6 billion. cisively and without hesitation, however, and Such official intervention to defend sterling this demonstration had a reassuring effect. In was almost entirely conducted in Common early March, expeditious congressional action Market currencies, in accordance with a British on a “clean” gold price bill removed another undertaking on May 1 to join with its prospec source of uncertainty that had been breeding tive Common Market partners in maintaining a unsettling market rumors. Simultaneously, the spread of no more than 2 lA per cent between German Government took action to discourage sterling and any other Common Market cur borrowing abroad by German business firms, rency. This European Community (EC) agree which had been a major source of buying pres ment had thus created a dual system of exchange sure on the mark over the the previous 3 years, rate limits in which the 2 lA per cent Common while the Japanese Government reinstated con Market band became colloquially described as trols on speculative buying of the yen. Finally, the “snake in the tunnel” represented by the 757 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
758 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 4V2 per cent Smithsonian band. A critical feature their decision to float the pound, in effect tem of the Common Market 2lA per cent band was porarily suspending their participation in the that intervention in dollars was to be confined Smithsonian and EC agreements. Following that to circumstances in which a weakening Com announcement, other European currencies imme mon Market currency should decline the full diately rebounded to their Smithsonian ceilings, distance to its Smithsonian floor or a strong reflecting market fears of a severe tightening of currency should rise to its Smithsonian ceiling. capital import controls, a joint float of the Otherwise, maintenance of the 2lA per cent Common Market currencies, or some combina Common Market band was to be carried out by tion of both. The European currency markets intervening in each other’s currencies. were then closed down, and an emergency As sterling came under selling pressure in meeting of the Community finance ministers June, the bank of England accordingly was was set for the following Monday in Luxem called upon to offer marks and whatever other bourg. At that meeting Denmark formally with Common Market currencies were being quoted drew from the EC monetary agreement, while at rates 2lA per cent above sterling, while its Italy secured a temporary authorization to keep European partners bought sterling with their the lira within the 2 lA per cent band by inter currencies. The general effect of such interven vening in dollars rather than in European cur tion to maintain the 2 lA per cent Common rencies. The finance ministers then reaffirmed Market band was to brake the decline of sterling their determination to defend both the Smith toward its Smithsonian floor of $2.5471, while sonian parities and the Common Market band. simultaneously pulling down the stronger EC Despite this reaffirmation and subsequent currencies well below their Smithsonian ceil drastic controls imposed by Switzerland and ings. In this strained pattern of rates, the mar Germany to ward off unwanted capital inflows, kets may have sensed a two-way speculative rumors of a European joint float continued to opportunity to go short of sterling and long of incite heavy speculative selling of dollars continental currencies in the hope of profiting against the stronger European currencies and the on both. Most of the outflow from London yen. By Friday, July 14, the sterling crisis had seems to have ended up in the Common Market. generated not only the previously noted flight On June 23 the British authorities announced of $2.6 billion of funds from sterling into other Common Market currencies but also additional TABLE 1 flows totaling over $6 billion from dollars into FEDERAL RESERVE RECIPROCAL CURRENCY various European currencies and the yen. ARRANGEMENTS Meanwhile, the U.S. authorities had been In millions of dollars considering the advisability of renewed opera Amount of facility tions in the exchange markets, involving, if Institution Sept. 8, 1972 necessary, Federal Reserve swap drawings that Austrian National Bank................................. 200 had been suspended on August 15, 1971. On National Bank of Belgium............................ 600 Bank of Canada................................................ 1,000 U.S. initiative and with the approval of the National Bank of E>enmark......................... 200 German Federal Bank, the first of such exchange Bank of England............................................. 2,000 operations was launched on July 19 in the form Bank of France ................................................ 1,000 German Federal Bank ................................... 1,000 of repeated offerings by the Federal Reserve Bank of Italy..................................................... 1,250 Bank of Japan.................................................... 1,000 Bank of New York of sizable amounts of Ger Bank of Mexico................................................ 130 man marks on the New York market. This Netherlands Bank........................................... 300 intervention, which was continued briefly on the Bank of Norway............................................... 200 Bank of Sweden............................................... 250 following day, was described by Chairman Swiss National Bank...................................... 1,000 Burns as a move by the U.S. authorities to play Bank for International Settlements: their part to restore order in foreign exchange Swiss francs/dollars................................... 600 Other authorized European currencies/ markets and to do their part in upholding the dollars ....................................................... 1,000 Smithsonian Agreement, just as other countries Total............................................................... 11,730 were doing. The Chairman also indicated that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 759 TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent System Drawings, or repayments ( —) System Transactions with— swap swap drawings, 1972 drawings, Jan. 1, Sept. 8, 1972 I II S J e u p ly t. 1 8 - 1972 ^ -20.0 10.21> 435.0 -10.2; -52.0 -663.0 -50.0 \ 1 fO 8 0 National Bank of Belgium............. 455.0 Bank of England................................ 715.0 German Federal Bank...................... 50.0 Swiss National Bank....................... 1,000.0 700.0 Bank for International Settlements / (Swiss francs)................................. 600.0 600.0 Bank for International Settlements (Belgian francs)............................ 35.0 35.0 Total................................................... -372.0 1 JK-21I 1,770.0 the operation would continue on whatever scale 1971, had been reduced to $2,855 million by and whenever transactions seemed advisable. the end of last year.1 Since then, further net The U.S. Treasury also confirmed the interven repayments of $1,085 million have brought tion, stating in part that: “The action reflects down the total outstanding debt to $1,770 mil the willingness of the United States to intervene lion (Table 2), a reduction of nearly 40 per cent in the exchange markets on occasion when it from the August 1971 peak. The bulk of such feels it is desirable to help deal with speculative debt repayments during the period under review forces. The action indicates absolutely no was accounted for by liquidation of the remain change in our basic policy approach toward ing $715 million of an original $750 million monetary reform and the necessary efforts on drawing on the Bank of England. The sterling all fronts to achieve a sustainable equilibrium needed for such repayments was acquired in in our balance of payments.” regular purchases during June, July, and early On August 10, the Federal Reserve Bank of August, both through the market and in direct New York intervened in a second European transactions with the Bank of England, plus a currency, the Belgian franc, which had re sizable direct purchase from the U.S. Treasury mained pinned to its ceiling. In a series of daily of sterling previously acquired in a U.S. Gov operations in some volume, the Belgian franc ernment drawing on the International Monetary rate was brought down appreciably below its Fund (IMF). ceiling and, in the process, some unwinding of In June, $300 million of swap debt to the speculation on the Belgian franc may have been Swiss National Bank was repaid through a direct set in motion. purchase of $250 million of Swiss francs from Since July 19, the New York Reserve Bank the National Bank, supplemented by Federal has intervened in the market on nine occasions Reserve purchases of Swiss francs in the mar and sold in the process $31.5 million of foreign ket. In July, the remaining $50 million of swap currencies; total offerings were, of course, much debt due to the German Federal Bank was larger. All market sales of foreign currencies, liquidated through a direct transaction with that either from balances or from small swap draw institution. In May, swap debt in Belgian francs ings, were fully covered by market purchases was reduced by a $20 million repayment to $470 as the dollar strengthened on the exchanges. million equivalent. Finally, in August, new As noted in the preceding report in this drawings of $10.2 million equivalent were made series, Federal Reserve swap debt, which had reached a peak of $3,045 million on August 13, ^ee Bulletin, March 1972, pp. 228-56. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
760 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 on the Belgian swap line, but these were fully discourage inflows of nonresident funds. Spot liquidated by early September. sterling fell close to the new floor of $2.5471 In March and July of this year, the U.S. in late December, as some speculative positions Treasury redeemed in two equal instalments a began to be unwound and year-end adjustments $153 million equivalent German mark-de were made. Taking advantage of this develop nominated note that had been issued to the ment, the Federal Reserve acquired sterling in German Federal Bank under the 1967 military the New York market and repaid, just prior to offset agreement with Germany (Table 4). Other the year-end, $35 million of the $750 million foreign-currency-denominated securities were equivalent swap drawing on the Bank of renewed at maturity. As of September 8, out England that had been entered into in August standing U.S. Treasury foreign-currency-de- 1971. nominated securities amounted to $2.0 billion After the year-end adjustments were com equivalent. pleted, however, the initial post-Smithsonian euphoria in the markets faded. The outflow of STERLING funds from the United Kingdom dried up rap In 1971 the United Kingdom had recorded a idly, and spot sterling moved away from the large payments surplus, with a substantial gain floor. Doubts about the durability of the new in official reserves. Meanwhile, however, the exchange rates quickly surfaced, and by mid- British economy had become afflicted by a wage January most other major European currencies and price spiral that threatened to weaken its were bid up toward, or even above, their central competitive position in world markets. More rates. At the same time it became clear that the over, a significant proportion of the 1971 reserve EC countries were approaching agreement on gain reflected hot money inflows that could be narrowing the margin of fluctation between their reversed in short order. Consequently, at the currencies and that the United Kingdom proba Smithsonian meeting the United Kingdom bly would participate in the arrangements. maintained sterling’s gold parity, thereby lim Consequently, sterling was bid up into line with iting the appreciation of sterling against the the continental currencies, rising by 4 cents to dollar to the 8.57 per cent increase in the dollar more than $2.59 before leveling off. In early price for gold. A middle rate for the pound of February, following a further decline in Euro $2.60571—commensurate with the dollar’s dollar rates relative to money market rates in devaluation—was established, and the Bank of London, the pound advanced to its middle rate. England announced official buying and selling Over the course of that month, sterling weak rates in conformity with the Smithsonian ened from time to time, reflecting the market’s Agreement’s provision for a band of 4.5 per pessimism over the long-term implications of cent around the new middle or central rates. a protracted coal miners’ strike, but once the At the same time the British authorities re strike was settled the continuing general ad laxed the exchange control regulations they had vance of other major European currencies had announced in late August and early October to a buoyant effect on sterling. TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings Drawings, or repayments ( —) Drawings on on Banks drawing on System System, 1972 System, Jan. 1, July 1- Aug. 31, 1972 I II Aug. 31 1972 Bank for International Settlements (against German marks) .................. r 8.o 6.0 1.0 \ \ -8.0 -6.0 -1.0 J Total ....................................................... / 8.0 6.0 1.0 1L.................. \ -8.0 -6.0 -1.0 Jr Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 761 On March 7, against a background of wide spread market uncertainty and growing specula 1A CHANGES IN EXCHANGE RATES AND OFFICIAL TRANSACTIONS tion about the readiness of individual central banks to absorb sizable new inflows of dollars, the EC countries announced agreement to nar row the margin of fluctuation between their own currencies to 2 lA per cent by July 1. The market saw this agreement as greatly increasing the likelihood of a concerted European attempt to stem further inflows of dollars—either through new controls or a joint float against the dollar— and there was a rush to stockpile currencies that might become more expensive or even una vailable later on. Although the buying wave was directed with particular force toward continental currencies, demand for sterling was also strong, and the spot rate shot up by almost 5 cents in 3 days to well over $2.65. The flurry soon abated, however, as the U.S. Congress acted on the gold bill, short-term interest rates in this country began to firm, and, following the March central bank meeting in Basle, it was made clear that there was continuing firm support for the Smithsonian Agreement. Sterling, in particular, fell back sharply, especially after the release of British trade fig JULY SEPT. NOV. JAN. MAR. MAY JULY SEPT. ures showing a swing into deficit in February. ___________1971_____________________________1972___________________ Thus, by the time the British budget was pre Movements in exchange rates are measured as percentage de sented on March 21, sterling was down to the viations of weekly averages of New York noon offered rates from the middle or central rates established under the Smith $2.61 level once again. The budget, which was sonian Agreement. Changes in reserves are computed from expansionary, stressed the need for combating the figures published in the International Monetary Fund’s International Financial Statistics and, as such, reflect for the sluggish trend in the domestic economy and December 1971 not only actual movements in reserve assets the persistent high level of unemployment. In but also the revaluation, on the basis of the Smithsonian Agree ment, of assets other than dollars. Changes for January 1972 addition, there was a modest relaxation of ex include this year’s allocations of SDR’s. change controls, primarily for capital outflows ♦Upper and lower intervention limits established in Decem ber 1971. to the EC and candidate countries, and British firms controlled by residents of those nations of a number of countries. Under the arrange were allowed to raise unlimited sterling finance ment that was worked out, the U.S. Treasury for their operations in the United Kingdom. drew SDR 200 million equivalent of sterling Following the budget announcement, forward from the IMF, thereby reducing the United sterling softened somewhat but, reflecting the Kingdom’s repurchase obligation by a corre general pressure against the dollar, spot sterling sponding amount to SDR 950 million. The rose close to $2.62 by the end of March. United Kingdom, in turn, discharged this resid In April the sterling market was reasonably ual commitment with SDR 500 million equiva well balanced, with the spot rate fluctuating lent of currencies acquired from third countries around $2.61. On April 28 the United Kingdom against dollars, with SDR 50 million of gold discharged the remainder of its debt to the IMF, and SDR’s purchased from Canada, and with thereby reconstituting its full drawing rights SDR 400 million out of British reserves. Then, with the Fund for the first time since December on May 1, the United Kingdom formally began 1964. The repayment required the cooperation its participation in the EC narrower band ar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
762 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rangement that had been put into effect 1 week unrealistic exchange rates, whether they are too earlier. There was little reaction in the market, high or too low.” In parliamentary debate on however, as sterling had been holding well June 19, an opposition spokesman stated that within the 2% per cent band for some 2 months. he did not see how a devaluation could be Spot sterling remained fairly steady through delayed beyond July or August of this year. most of May. Nevertheless, an increasingly Over the next 3 days, enoromous amounts pessimistic atomosphere was developing in the of sterling were dumped on the exchanges. market, as price and wage inflation and the Forward sterling was driven to deep discounts continuing series of labor disputes threatened to (as much as 15 per cent per annum on 1-month cut further into Britain’s competitiveness in deliveries), and spot sterling was pushed down world markets. The trade deficits, which had to as low as $2.5614 against the dollar, even appeared in February and had continued in as EC central banks continued their massive March and April, were taken as a sign that the support effort to maintain the 2 lA per cent band huge current-account surplus of the past 3 years among their own currencies. In sum, over the was already being eroded and might soon be six trading days June 15 to 22, such support erased. Market pessimism first showed through amounted to $2.6 billion equivalent, financed in a widening of discounts on forward sterling by exchange transactions with the Bank of late in May, and in early June spot sterling England that were to be liquidated by the end began to soften as well. The pound was still of July. trading above the middle rate for the dollar but Early on the morning of Friday, June 23, with had fallen close to the bottom of the EC band. no end to the reserve losses in sight, the British On June 8, the release of first-quarter balance authorities announced: of payments statistics for the United Kingdom, H.M. Government has decided that, as a tempo showing a sharp drop in Britain’s current-ac rary measure, sterling will be allowed to float. This count surplus, seemed to confirm market fears means that for the time being the market rate for sterling will not necessarily be confined within an about the pound’s prospects, and sterling came nounced limits either in respect of the U.S. dollar on offer, with traders beginning to switch into or in respect of EEC currencies. German marks, Swiss francs, and Dutch It is the Government’s intention to return as soon guilders. Then, on June 15, out of a growing as conditions permit to the maintenance of normal morass of legal and jurisdictional controversies IMF margins round parity and participation in the special EEC currency arrangements. on the labor front, a wildcat dock strike trig gered a new selling wave of both forward and At the same time, the London market was closed spot sterling. With spot sterling now at the through the following Monday and most of the bottom of the EC band, the Bank of England exchange controls applying to nonsterling-area and several Common Market central banks were countries were extended to the overseas-sterobliged to intervene heavily in support of the ling-area countries other than the Republic of pound against EC currencies. As the pound Ireland. dipped to $2.58!/2 against the dollar on June 16, The floating of the pound, and the subsequent it tended to pull the whole band down vis-a-vis withdrawal on the same day of the continental the dollar, thereby making the continental cur central banks from their respective markets, rencies appear relatively cheap. gravely weakened confidence in the durability Meanwhile, sterling’s prospects had become of the Smithsonian Agreement and the EC in a subject of general debate in the United King tervention arrangements. On Monday, June 26, dom, especially against the background of however, the EC finance ministers agreed in Chancellor of the Exchequer Barber’s statement Luxembourg to continue to defend the Smith in the March budget address that “the lesson sonian rates and to retain the narrower EC band of the international balance of payments upsets arrangements, while the pound continued to of the last few years is that it is neither necessary float. nor desirable to distort domestic economies to On June 27, when London was the only major an unacceptable extent in order to maintain European foreign exchange market to resume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 763 TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Redemptions (—) Outstand Outstand ing, 1972 ing, Issued to— Jan. 1, Sept. 8, 1972 I II J S u e l p y t . 1 8 - 1972 German Federal Bank............................ 612.0 -76.5 -76.5 459.0 German banks........................................... 153.0 153.0 Swiss National Bank 1,215.4 1,218.3 Bank for International Settlements1... 164.8 170.9 Total ....................................................... 2,145.2 -76.5 -76.5 2,001.2 denominated in Swiss francs. Note.—Discrepancies in totals result from valuation adjustments and from rounding. normal operations, the sterling rate dropped the Federal Reserve’s remaining swap commit almost to $2.47, but a sharp squeeze for bal ment. By the end of June the System had been ances developed later in the day as deliveries able to reduce its swap commitment by another on earlier sales contracts had to be met, and $52 million to $663 million equivalent. After the spot rate temporarily rebounded to $2.513A. sterling was floated, the U.S. Treasury periodi Once the squeeze for balances had passed, ster cally bought sterling on days when the rate was ling dropped off steadily, by a penny or two declining in New York and by mid-July had a day over the course of the next week, to as purchased a total of $41.5 million equivalent. low as $2.41 lA on July 4 in London. At that At that point the Federal Reserve, in order point, commercial demand reappeared and the to repay the remainder of its swap commitment rate recovered to around $2.45. in sterling, initiated a program of daily pur The revival of commercial demand was un chases of sterling, mainly on a direct basis from derscored by the release of trade figures for the Bank of England but also in the market. June, which had swung back into surplus and These purchases, together with sterling acquired confirmed that in fact the United Kingdom was from the U.S. Treasury, including the pounds still in current-account surplus. Moreover, the drawn by the Treasury at the time of the British continuing money market squeeze in London IMF repayment in April, enabled the System tended to support sterling in the exchanges. to reduce its swap commitment by $405 million Even so, new troubles on the labor front, cul equivalent to $258 million as of July 31. The minating in a dock strike beginning on July 21, program of daily purchases continued through had a disturbing influence on the sterling mar early August, and by August 14 the Federal ket, occasionally pulling the rate down sharply. Reserve had acquired sufficient sterling to liqui Over the remainder of July, sterling traded in date the remainder of its original swap commit the $2.44 to $2.45 range. On July 31, the United ment of $750 million. Kingdom settled its debts in connection with the Buoyed by a tight domestic money market defense of sterling in June, utilizing $1,150 and continuing commercial demand, sterling million of funds previously swapped out under rose early in August to trade above $2.45. special arrangements, $634 million equivalent Announcement of an end to the dock strike and drawn under the U.K.’s IMF gold tranche posi release of a second consecutive trade surplus tion, and $823 million from reserves that at the gave additional support to the spot rate toward end of July still amounted to $6,082 million midmonth. Subsequently, the squeeze for bal (inclusive of Britain’s remaining $126 million ances eased, with British short-term interest IMF gold tranche position). rates declining abruptly, and spot sterling edged Meanwhile, as sterling began to decline to below the $2.45 level in early September. sharply against the dollar in mid-June, the New GERMAN MARK York Federal Reserve Bank, acting in close consultation with the Bank of England, began Following the Smithsonian Agreement, the to buy sterling in the New York market to repay German authorities established a new central Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
764 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rate for the mark of $0.3103Vs, an effective limit by late February. Over the month as a appreciation of 13.58 per cent against the dollar, whole, however, German official reserves had and set margins at $0.30347s and $0.3174% on increased by $744 million. either side of the central rate. None of the The demand for marks soon built up again restraints against inflows of foreign funds intro in early March, and the mark was driven up duced earlier in 1971 were removed, but the almost to its Smithsonian ceiling in reaction to Government announced that it would not avail the growing press discussion of a possible con itself for the time being of its new power to certed European response to the continued in impose deposit requirements of up to 50 per cent flux of dollars—through either the introduction against German firms’ borrowings abroad. of controls or a joint float against the dollar. When exchange trading was resumed, the mark Following encouraging reports of the Basle settled well below its new central rate. Except meeting of central bankers on the weekend of for some modest outflows toward the year-end, March 11-12 and indications that U.S. short there was no significant reversal of the huge term interest rates were beginning to firm, the speculative positions in marks that had been mark backed off somewhat and traded around built up over the course of 1971. the $0.3150 level. The mark held at this level Early in 1972 doubts began to spread in the well into April, with little reaction to the an exchange markets that a durable settlement of nouncement early that month that on April 24 the international monetary crisis really had been the EC would implement its narrower trading achieved. Moreover, many Europeans were ex band arrangement (the “snake in the tunnel”). pressing concern over the further decline taking By that time, and indeed throughout the sec place in the U.S. interest rates. With the press ond quarter, Germany’s international payments and the markets focusing more and more on position was undergoing a substantial read these issues, the atmosphere deteriorated pro justment. The domestic economy had leveled gressively over the early weeks of the new year, off, but wage and price pressures remained and almost any news item or rumor was seized strong in Germany and the rise of the mark rate upon as a reason for additional selling of dollars. over the course of the previous year was begin Funds were shifted into Germany particularly, ning to exert an influence on the German trade and in heavy demand the spot mark rose through balance. Thus the trade surplus, which had the new central rate by mid-January. Further swelled to substantial proportions toward the waves of nervousness swept through the foreign end of 1971 and through the early months of exchange markets in February. Each time the 1972, showed a decline in March and subse mark rate was bid up sharply, and the pressures quent months. Coupled with a further deterio eased only after forceful intervention by the ration in service items and transfer payments, German Federal Bank. this moved the full current account from surplus Then, late in February, the German authori to rough balance. ties announced new measures designed to lessen The continuing strength of the mark during the inflow of funds and to defend the Washing the spring reflected, therefore, an increasingly ton agreement. These included cuts in the dis heavy influx of capital. These inflows were count and Lombard rates of the German Federal mainly generated by the market’s ^expectation Bank and a hike in the marginal reserve re that there might be a further rise in the value quirement against nonresident liabilities. More of mark-denominated instruments. At the same importantly, the Ministry of Economics and time, moreover, German corporations continued Finance imposed a 40 per cent deposit require to seek funds abroad through a variety of means. ment (Bardepot) on most foreign borrowings of To avoid the Bardepot, the corporations ran nonbanking enterprises, retroactive to January down their foreign market borrowings by $1.3 1, moving for the first time to curb German billion in March and April but at the same time corporate borrowings abroad. Following the an were able to sell to foreigners a substantial nouncement of these measures, the spot rate volume of mark-denominated bonds. declined to almost 1 Vi per cent below its upper The exchange markets were in better balance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 765 in May, but the general uneasiness over the the German authorities announced they would international monetary situation showed through reopen their foreign exchange markets on on a number of occasions. Such events as the Wednesday, June 28. intensification of the Vietnam war early in the When normal trading resumed that day, the month and Treasury Secretary Connally’s resig spot mark traded just below its ceiling, but nation toward midmonth brought forth a spate marks for future delivery were quoted at large of market and press commentary on their ulti premiums. The next day the German Govern mate significance for the monetary system. ment moved to back up the decision to support Comments to the press by officials from either the existing international exchange agreements side of the Atlantic, or even rumors of what by announcing a series of measures to tighten they might have said, were closely scrutinized controls. The Bar depot requirement was raised for any hint of further moves to be made on from 40 per cent to 50 per cent and was applied the international monetary front. Thus, several to a wider range of borrowings. Sales of do times in May the German mark was bid up mestic fixed-income securities to nonresidents sharply in the exchanges, pulling several other were made subject to the prior approval of the European currencies along with it. These bursts authorities, to be administered restrictively. The of demand were short lived, however, and each German Federal Bank again raised its reserve time the spot rate quickly retreated. requirements against the banks’ foreign liabili The mark was trading quietly around $0.3150 ties, so that in effect reserves totaling between in early June, when swiftly moving events in 90 per cent and 100 per cent would be required the sterling market sent shock waves into other against any additional foreign liabilities of the markets as well. The rush out of sterling was banks. Finally, domestic reserve requirements directed mainly toward the mark, which rose were hiked to absorb the liquidity generated by sharply against the dollar. By June 16, sterling inflows of the nonbanking sector. This increase had fallen to its intervention point against the in domestic liquidity reflected the fact that Ger mark under the EC arrangements and both the many’s official reserves, which had risen by German Federal Bank and the Bank of England $121 million in April and May, had been had to intervene massively (selling marks swelled by a further $2,763 million in June, against sterling) to keep the spread between their largely as a result of the intervention to support two currencies from widening beyond 23A per both sterling and the dollar. cent. This heavy injection of marks into the The tightening of controls by the German exchanges tended to pull the mark down against authorities did not immediately allay market the dollar, and the rate dropped to $0.3131 by anxieties and, in the generalized pessimism over June 22. the future of the Smithsonian Agreement, When the British authorities announced the traders hastened to shift even more funds into floating of the pound on Friday, June 23, Germany ahead of the possible imposition of thereby dropping out of the Smithsonian and EC additional controls. Consequently, the mark was agreements, traders immediately began shifting in heavy demand early in July and the German funds out of dollars and into other European Federal Bank was obliged to absorb dollars on currencies as they feared a general abandonment a large scale. The buying of marks, and of most of the Smithsonian rates. As a result, the Ger major European currencies, continued until the man Federal Bank was flooded with nearly $900 Swiss authorities relieved some of the uncer million within the first hour of trading, after tainties by taking forceful defensive measures which it suspended operations and closed the of their own on July 4 and 5. The Federal Bank exchange market. In trading later that day and then intensified its efforts to tighten up the on Monday, June 26, in New York, the spot Bardepot and also asked banks to enter into a mark jumped 15 points above its Smithsonian gentlemen’s agreement neither to sell assets out ceiling. Following the EC finance ministers’ of their own portfolios to nonresidents nor to decision on June 26 to continue to defend the arrange or guarantee any sizable foreign credits Smithsonian limits and to maintain the EC band, to residents. In addition, the Federal Bank once Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
766 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 again boosted its minimum reserve requirements marks, adding that such intervention would against domestic liabilities to mop up the continue on whatever scale and whenever it was liquidity flowing directly into German corpora deemed desirable. The following morning in tions. Germany, with the market fully alerted to the These various measures helped settle the news of the U.S. initiative, the spot mark fell markets briefly, but a new rush into marks and further, reaching $0.3152 (some 3A of 1 per cent other currencies soon developed in the week below the upper limit) by the time the New York prior to the scheduled July 17-18 London market opened. The Federal Reserve followed meeting of EC finance ministers. With the at up with a further offering of marks out of mosphere still tense following the floating of the previously accumulated System balances. Over pound, there were reports in the European press succeeding days, with additional favorable press suggesting that the EC finance ministers would and market commentary on the Federal Reserve plan a joint float of their currencies against the initiative, the mark rate continued to decline. dollar, rather than stick to their announced This tendency persisted into early August, with agenda. The market seized upon these reports some unwinding of speculative positions, and to mount a new drive out of the dollar and into the rate settled temporarily around $0.3140. the mark and other European currencies. With By midmonth a more favorable atmosphere the mark pushed once again to its upper limit, developed for the dollar, following the release the German Federal Bank had to absorb some of improved U.S. balance of payments figures $1.1 billion over the 2 days of July 13-14. On for the second quarter and indications of new Monday, July 17, the EC ministers in London efforts by the United States to negotiate a set made clear their determination to maintain the tlement of the Vietnam conflict. In addition, the Smithsonian exchange-rate structure and various measures taken by the German authori emerged with a general agreement on longer- ties in July were beginning to bite. Conse term monetary questions, including the need for quently, the mark rate dropped further, reaching par values. The reports out of London gave $0.3134 on August 16, and the Federal Reserve pause to the markets, and the demand for marks again sold marks to consolidate the dollar’s let up over the 2 days of the meeting. The huge improvement. These sales brought to $21.4 technical positions built up over previous days million equivalent the total of marks sold in and weeks, short of dollars and long of marks market operations. and other currencies, nevertheless remained in The shift in sentiment in favor of the dollar tact. continued, pushing the mark rate to $0.31261>4 By Wednesday, July 19, the mark had edged on August 21. On the next day, however, Ger slightly away from its ceiling and eased further man commercial banks reportedly found them after the New York market opened that morn selves short of liquidity to meet their reserve ing, to around $0.3160 by 11 o’clock. Shortly requirements through the end of August. A thereafter, on the basis of a U.S. Government squeeze developed in the Frankfurt money mar policy decision, the Federal Reserve Bank of ket, and the banks scrambled to buy marks in New York placed large offerings of marks in the exchanges, setting off a sharp rise in the the New York market. These offers were for mark rate before the banks’ liquidity needs were System account, with marks made available by met. When the July trade figures for the United the U.S. Treasury on a swap basis. Such unex States showing a narrowing of the trade deficit pected intervention generated an immediate were announced on August 24, however, the market reaction, and traders quickly moved their mark eased once again. mark quotations down. As the market backed In other operations during the period under away, the Federal Reserve’s offering rate was review, the U.S. authorities, under agreements subsequently lowered several times. The opera with the German Federal Bank, were able to tion generated considerable market comment liquidate certain German mark obligations en and, in response to press inquiries, Chairman tered into prior to the floating of the mark in Burns confirmed the System’s intervention in May 1971. In March and July the U.S. Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 767 purchased sufficient marks from the Federal rate. At that time, in view of the continuing Bank to redeem in two payments a $153 million inflows from abroad, the Swiss National Bank mark-denominated note. Moreover, on July 24, instituted a requirement that 25 per cent of the the Federal Reserve liquidated its remaining $50 proceeds of foreign bond issues in Switzerland million equivalent mark swap commitment, also (which were running at more than twice their purchasing marks directly from the Federal volume of a year earlier) had to be converted Bank. This repayment placed the $1 billion into dollars by the central bank at the franc’s swap arrangement with the German Federal lower intervention limit. Another wave of de Bank on a fully standby basis and no new mand for francs developed in early March when, drawings have been made. in the general strengthening of European cur rencies, the Swiss franc was rapidly bid up to SWISS FRANC some 1 per cent above the central rate. The Under the Smithsonian Agreement the Swiss tensions in the foreign exchanges eased abruptly authorities fixed a central rate for the franc of at that point, however, and the franc rate fell $0.2604Vs—in effect, an increase of 6.36 per back sharply. Since domestic liquidity remained cent against the dollar from the franc’s previous extremely abundant in Switzerland, the decline parity and of 13.88 per cent from the parity in was steeper in the Swiss franc market than force prior to Switzerland’s revaluation on May elsewhere on the Continent, and after mid- 10, 1971—and announced their new interven March the spot rate was again below the central tion points, 2Va per cent on either side of the rate. central rate. Actual trading conditions were little On April 5 the Swiss National Bank and the changed, however, since the banks had been Swiss Bankers Association agreed on two allowed to deal throughout and because the measures to mop up some of the excess domes restrictions imposed the preceding August re tic liquidity. First, marginal reserve require mained in effect. Increases in the banks’ net ments ranging up to 20 per cent were introduced foreign liabilities over the July 31, 1971, levels against the growth in the banks’ domestic lia continued to be subject to a 100 per cent reserve bilities since July 31, 1971. Second, the already requirement, and interest payments on nonresi existing 100 per cent reserve requirement dents’ deposits made after July 31 were still against increases in the banks’ net foreign lia prohibited. In the wake of the Smithsonian bilities was considerably tightened through a Agreement there were modest outflows from more restrictive interpretation, even though the Switzerland, and the franc gradually began to required ratio was halved. At first, there was ease toward the new floor of $0.2546%. There little reaction to these measures in the Swiss was no substantial unwinding of speculative franc market and the spot rate held fairly steady. positions, however, and the Swiss banks re But as the market came to appreciate the possi mained highly liquid as the year-end ap ble consequences of the restriction on the banks’ proached. net foreign currency positions, the franc Early in January, with the current account of weakened. Switzerland’s balance of payments continuing Late in April the Swiss banks began to in small surplus and the markets hesitant in the transfer funds to the National Bank under the face of the many monetary issues still to be terms of the tightened reserve requirement resolved, the franc rate remained slightly above against increases in net liabilities to foreigners. the floor, even as domestic monetary conditions An alternative for the banks was to reduce their eased further. By midmonth the market was net external liability positions by purchasing already beginning to question the durability of dollars from the National Bank, and on May the exchange rate realignment, and the spot 2 the National Bank sold $150 million at the franc rose along with other European currencies. rate of $0.2577^ (3.88 Swiss francs) for this Over succeeding weeks, as traders grew in purpose. The following day the National Bank creasingly jittery, several rounds of heavy buy announced that it would henceforth be prepared ing pushed the franc up to as high as the central to sell dollars at this higher rate, rather than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
768 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 at the official lower intervention point of CHANGES IN EXCHANGE RATES AND $0.2546%, thereby reducing the effective range OFFICIAL TRANSACTIONS of fluctuation of the Swiss franc. In a parallel move, it lifted to the same level the exchange BILLIONS OF DOLLARS PER CENT rate for conversions of foreign bond proceeds raised in Switzerland, while increasing to 40 per cent from 25 per cent the share of such proceeds that had to be converted at the central bank. These measures had no direct impact on the market but, over succeeding weeks, resulted in a further decline in the National Bank’s dollar holdings. The nervousness that broke out in the ex changes at the beginning of the second week of May pushed the franc somewhat higher, but there was never any severe pressure and the spot rate soon receded, declining until the middle of that month. Trading in francs then turned quiet, with the rate about 3A per cent under the central rate and well below the EC currencies. Taking advantage of the relatively weak exchange rate, the Federal Reserve, with the agreement of the Swiss National Bank, initiated a program of For notes see p. 761. moderate purchases of Swiss francs in the mar ket to make a start on covering the System’s to questions and that the Under Secretary had swap commitments in that currency—$1 billion in fact strongly supported the Smithsonian equivalent to the Swiss National Bank and $600 alignment, the market did not immediately re million to the BIS. By early June, such Federal cover from the initial adverse reaction, and the Reserve purchases were sufficient, together with franc swung widely around the central rate over $250 million of francs bought directly from the the subsequent days. Swiss National Bank to replenish its dollar bal This misunderstanding was the first of a series ances, to enable the Federal Reserve to make of disquieting developments to hit the exchange swap repayments totaling $300 million equiva markets in rapid succession in the late spring, lent to that bank. The System’s Swiss franc and the Swiss franc became increasingly subject swap indebtedness to the National Bank was to speculative pressures. Early in June freethereby reduced to $700 million, while the market gold prices—which had already ad additional $600 million equivalent Swiss franc vanced sharply the preceding month—surged in drawing on the BIS remained outstanding. a strong speculative outburst on rumors of an Late in May the Swiss National Bank’s sus increase in the official price of gold. In response, tained efforts to absorb domestic liquidity began the Swiss franc rose rapidly, moving through to take hold and the Swiss franc strengthened. its $0.2604Vs central rate. On May 30, an erroneous press report from Later in the month, the fever in the gold Switzerland to the effect that Under Secretary markets abated and the Swiss banks’ concerns Volcker had not absolutely ruled out the possi over their midyear liquidity positions were eased bility of another dollar devaluation set off a by the willingness of the National Bank to particularly sharp reaction in the Swiss franc extend assistance through short-term swaps. (In market. In heavy trading, the rate surged by XA fact, it granted a total of $923 million in swaps per cent within half an hour. Although the wire over the midyear period.) Nevertheless, demand service later admitted that it had transmitted its for Swiss francs began to pick up, as funds were own interpretation of Mr. Volcker’s response switched out of sterling on a progressively Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 769 heavier scale. Since Switzerland is not a party abroad by Swiss citizens and corporations to the to the EC currency arrangements, the franc rate prior approval of the Swiss National Bank, and was not pulled downward, as were many other placed on a legal basis the previous gentlemen’s continental currencies, by the rapid drop of agreement establishing the marginal reserve re sterling vis-a-vis the dollar. Instead, the spot quirements against banks’ net foreign liabilities. franc was propelled upward by speculative This barrage of measures halted the inflows, and positioning to $0.2653 by June 22. the Swiss franc fell away from its upper limit, Following the floating of the pound on June reaching as low as $0.2647 on July 5. 23, the Swiss National Bank announced that it As the July 17-18 meeting of the EC finance would not intervene in the foreign exchange ministers approached, the Swiss franc again market until further notice. The Swiss banks came into extremely heavy demand, and the were still free to trade, however, and the franc National Bank had to absorb just over $1 billion. immediately rose above its ceiling. On June 26 Once the meeting got under way, however, the the Swiss authorities took new and more drastic market concluded that the anticipated joint EC measures to limit the inflow of foreign capital, float against the dollar probably would not ma this time banning the sale to foreign investors terialize, and buying pressure on the franc of domestic securities, foreign securities de tapered off. When the meeting ended in a reaf nominated in Swiss francs, and mortgages on firmation of official intent to defend the Smith land and also prohibiting all sales of Swiss real sonian parities, some offerings of Swiss francs estate to nonresidents. Following these steps, against dollars developed and the franc rate fell the franc rate moved back down toward its rapidly away from its $0.2664Vs ceiling. The official ceiling. When other continental central downward movement was accelerated by the banks reopened for business on June 28, how news of the U.S. authorities’ reentry into the ever, the National Bank stayed out of the market exchanges on July 19 and by the favorable to assess the situation further, and the franc response that action received. The franc reached continued to trade erratically above the upper as low as $0.2641 before leveling off. On July limit in a thin market through the month-end. 21, in order to absorb part of the franc liquidity During this period, the Federal Reserve sold out resulting from the heavy mid-July inflows, the of balances small amounts of francs in the New National Bank raised its marginal reserve re York market, with most of the proceeds used quirements against increases in the banks’ do to purchase German marks. mestic and foreign liabilities. When the National Bank resumed operations The Swiss franc market, no longer fueled by on Monday, July 3, it warned that a negative a rapid succession of speculative rumors, then interest rate penalty on increases in nonresident turned very quiet. In mid-August, when senti deposits in Switzerland would be imposed if the ment toward the dollar improved in response inflow of funds became too large. Nevertheless, to the Federal Reserve’s continuing market in there was a heavy demand for francs, and the tervention and release of improved secondbank was forced to intervene at the upper inter quarter U.S. balance of payments figures, the vention limit. The Swiss authorities moved Swiss franc followed the German mark down promptly, therefore, to impose a quarterly 2 per ward. By early September, the spot rate was cent tax on any portion of foreign deposits with fluctuating around the $0.2645 level. Swiss banks in excess of the balances held on June 30, 1972. In addition, they extended the BELGIAN FRANC prohibition of interest payments on nonresident Following the Smithsonian meeting, the Belgian deposits made after July 31, 1971, to all banks authorities announced that the franc’s central (this ban had previously applied only to deposits rate would be set at $0.022313, an effective with the larger banks), prohibited all banks from revaluation of 2.76 per cent against gold and having net foreign exchange liability positions a total appreciation of 11.57 per cent against the (including forward positions) at the close of dollar. New intervention points were established business on any day, subjected borrowings at 2lA per cent above and below the central rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
770 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 At the same time, Belgium and the Nether 9, in an effort to discourage short-term capital lands—which appreciated the guilder by the inflows, the authorities instructed the banks to same percentage against the dollar—decided to avoid any further build-up in their spot liabilities maintain the close link between their currencies to foreigners without a corresponding increase by continuing to intervene when necessary to in their spot foreign assets. This tended to stem keep the rate between the franc and the guilder the tide for the time being, and the franc rate within a 1.5 per cent spread. Moreover, the backed away. Belgian authorities maintained the two-tier With the Brussels money market now highly market structure, with only current transactions liquid, and with incentives having opened up going through the official market. When the in favor of moving into Euro-dollars, the Bel Brussels exchange market was reopened on De gian franc continued to decline through midcember 21, the Belgian franc was quoted well April. The generally improved exchange market above the new floor and rose gradually thereaf atmosphere also encouraged some unwinding of ter. By the year-end, when Euro-dollar quota the earlier leads and lags in favor of the franc. tions fell below comparable Belgian domestic Nevertheless, the Belgian current account was interest yields, the franc reached the new central still in surplus, and when the domestic money rate. market turned tighter once again late in April Early in 1972, the Belgian franc joined other while Euro-dollar rates declined, the Belgian currencies in rising sharply against the dollar, franc began to advance. This tendency contin and by February the National Bank had begun ued through May, when renewed nervousness to take in dollars, both on a swap and an outright in the exchanges led to a number of brief spurts basis. Moreover, in the separate market for in the Belgian franc rate. Late in May, when financial francs, quotations had risen to a sig the Belgian Government needed dollars for cur nificant premium over the commercial rate. To rent payments, the Federal Reserve purchased a large extent, the run-up of the franc reflected francs in a direct transaction with the National relatively high interest rates in Belgium, as well Bank and, using these francs as well as some as market fears over the prospects for the balances on hand, repaid a total of $20 million Smithsonian Agreement. For its part, the Na equivalent of its swap debt to the National Bank. tional Bank cut its lending rates three times The System’s Belgian franc swap commitments between the first of the year and early March, were thereby reduced to $470 million, including with the discount rate reduced from 5V2 per cent $35 million equivalent owed to the BIS. to 4 per cent in Vi per cent steps, but these When sterling came under speculative attack actions served merely to bring Belgian rates in mid-June, the Belgian franc was initially down into line with comparable rates in other pushed up to its upper limit against the dollar. centers. At the same time, economic activity Sterling soon dropped to its middle rate, and was only gradually recovering from a slowdown the spread within the EC band thus reached the and Belgium’s current-account surplus remained full 2Va per cent. Consequently, as pounds con large. Once the spot rate began to rise, fears tinued to be dumped on the markets, the Na of a possible further advance led to a build-up tional Bank of Belgium joined other EC central of leads and lags in trade payments, which in banks in the support effort, buying sterling with turn generated additional demand in both spot francs in the market and making francs available and forward markets for commercial francs. to the Bank of England for corresponding inter Early in March, when there was widespread vention in London. As the whole EC band was discussion of a possible common EC response pulled down against the dollar by the pressure to growing dollar inflows, either through a joint on sterling, the franc dropped to as low as float of their currencies or through administra $0.022537 on June 22, or 1.3 per cent below tive controls to bar these inflows, there was a the ceiling. jump in demand for several currencies, and the The floating of the pound on June 23 released National Bank of Belgium again had to take in the downward pressure on the EC band, and dollars at the Smithsonian ceiling. On March the franc snapped back to its ceiling. After Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 771 absorbing some dollars, the National Bank of whether some shift of expectations could be Belgium quickly withdrew from the market generated that would pry the Belgian franc loose along with the other continental central banks from its ceiling. As in the case of the operation that had opened that morning. In the limited in German marks in July, the Reserve Bank trading that followed, the franc rate immediately placed a large offer of Belgian francs in the rose above its Smithsonian ceiling. After the EC market at the current rate. As the market backed finance ministers met in Luxembourg on June away, the offer was subsequently moved down 26 and made clear their intention of upholding and a moderate amount of francs was sold over both the Smithsonian and EC currency arrange the course of the day. On the following morning ments, the Belgian exchange market was in Europe there was not only some decline of reopened on June 28. At first, the rate held just the franc rate but also some sympathetic easing below its upper limit and there was no need of other currency rates. To consolidate the gain, for the Belgian authorities to intervene. the Federal Reserve followed up with further The grave uncertainties left in the wake of offers on subsequent days, but, with the market the floating of the pound soon led to new de continuing to back away, only a small amount mands for continental currencies, however, and of Belgian francs was sold. By August 14 the along with other European central banks the Belgian franc was clearly following the general National Bank had to intervene heavily in early downtrend of other European currencies, so that July, particularly on July 13-14, just prior to no further offers were made. As had been agreed the EC finance ministers’ meeting in London. at the inception of the operation, the Federal Reports from that meeting tended to reassure Reserve covered its franc sales by drawing on the markets and, as with other currencies, the its swap line with the National Bank. These franc edged away from its upper limit. Never drawings totaling $10.2 million equivalent were theless, although the German mark, the Dutch repaid by early September, as improved condi guilder, and the Swiss franc all declined fairly tions permitted the Federal Reserve to acquire sharply over subsequent days, the Belgian franc the needed francs through market operations. hovered close to its upper limit. By late July With the generally improved sentiment for the it had moved back to its ceiling and held there dollar, the franc continued to decline on its own into early August, with the National Bank again through the end of August, reaching as low as absorbing dollars almost every day. $0.022743 before steadying in early September. In part, the relative strength of the Belgian As of September 8, the Federal Reserve swap franc reflected the continuing current-account drawings in Belgian francs remained at $470 surplus. In addition, the Belgian authorities had million equivalent. worked out a gentlemen’s agreement with the Belgian commercial banks to absorb some of DUTCH GUILDER the domestic liquidity created by the earlier At the conclusion of the Smithsonian meeting, official purchases of sterling and dollars, and the Dutch Government announced that the the banks made sizable deposits with the central guilder would be revalued by 2.76 per cent bank at the end of July and during most of against gold, thus producing an effective appre August. Finally, it was clear that the speculative ciation of the guilder of 11.57 per cent relative build-up of the previous month had not been to the dollar. New intervention limits were set unwound, and the longer the rate held at the at 2lA per cent on either side of the new central ceiling the more entrenched became market ex rate of $0.3082. There was little outflow of pectations that the Belgian authorities might not funds from the Netherlands when the Amster be able to resolve the situation within the con dam market was reopened on December 21 and, text of the Smithsonian Agreement. with the Dutch current account strengthening In these circumstances, on August 10, fol against the background of sluggish domestic lowing consultations with the National Bank of economic activity, the guilder rate began to rise Belgium, the Federal Reserve initiated a probing during late December and early January. action in the New York exchange market to see With interest rates falling in foreign centers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
772 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 early in January, the Netherlands Bank reduced action against dollar inflows—perhaps through all its lending rates by % percentage point, the a joint float. The demand for guilders thus discount rate being cut to Ax/i per cent. Domestic swelled even further, pushing the spot rate to money market rates declined in response, but its Smithsonian upper limit, and over the course the exchange rate did not follow suit, as there of 3 days the Netherlands Bank had to absorb were sizable new direct investment inflows and $417 million. On March 9 the Netherlands Bank the underlying Dutch payments position re moved to curb inflows from abroad by prohibit mained strong. Even more important, the de ing nonresidents from making new guilder time mand for guilders reflected the exchange mar deposits or renewing such deposits when they ket’s growing concern over the viability of the mature and by banning the payment of interest exchange rate realignment negotiated in Wash on nonresidents’ demand deposits. At the same ington, and the rise of the guilder followed time, the central bank restated its determination closely the advance of other continental curren to maintain its Smithsonian buying and selling cies, particularly the German mark. Conse rates for dollars. Following these moves, the quently, the guilder rate was ratcheted upward market turned much quieter and, as new inflows in several stages in January and early February, tapered off, the spot rate soon retreated from reaching almost to the upper intervention level. the ceiling. In February the Dutch authorities moved to The Dutch money market was now extremely provide additional liquidity to the Amsterdam liquid as a result of the earlier heavy influx of money market, first by open market purchases funds, and the guilder tended to drift downward of Dutch Treasury bills and subsequently through the second half of March and well into through exchange market swaps, and these April, steadying only after dropping below operations relieved some of the upward pressure $0.3100 in mid-April. Thereafter, the guilder on the spot rate. Nevertheless, just after mid followed the gradual updrift of the German mark month a new wave of exchange market uncer and other continental currencies, and by early tainty briefly pushed the spot guilder to the June was trading quietly around $0.3125. ceiling, and the Netherlands Bank had to absorb The guilder was then caught up in the rush a modest amount of dollars. The market turned out of sterling. Although the guilder rate was quieter through the end of February, and in view bid up at first, the operation of the EC currency of the further decline in interest rates abroad, arrangements eventually resulted in a decline of effective March 2, the Netherlands Bank cut its the whole EC band vis-a-vis the dollar. As discount rate by V2 percentage point to 4 per sterling weakened, it reached its support point cent. against successive community currencies. By By early March, however, the debate in June 22, the guilder too was at the ceiling of Europe over alternative means of dealing with the community band—now well below the dollar inflows was in full swing, with a further Smithsonian upper limit against the dollar—and extension of capital controls appearing to be the the Netherlands Bank was obliged to buy ster most likely route. Consequently, there was an ling with guilders. This additional supply of influx of funds into guilders by traders and guilders tended to push the guilder rate still investors who feared that new controls could lower against the dollar, to 1.4 per cent below render the guilder more expensive or even una the ceiling at one point. vailable for certain kinds of transactions later On June 23, following announcement of the on. The heavy demand pushed up the guilder floating of sterling, the Netherlands Bank along rate, although the Netherlands Bank slowed the with other European central banks withdrew advance by entering into new swaps with its from the market. After the EC finance ministers’ banks. Then, on March 7, the EC countries meeting on June 26, the Dutch joined others reached the decision to narrow the band of in reaffirming their commitment to the Smith fluctuation between their currencies, and the sonian and EC arrangements. The Amsterdam market took the view that the community would market was officially reopened on Wednesday, now be in a better position to take common June 28, with the guilder trading below its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 773 1p CHANGES IN EXCHANGE RATES AND reform. Also, on July 17, the Netherlands Bank IU OFFICIAL TRANSACTIONS announced additional measures to curtail capital imports, through both leads and lags in pay BILLIONS OF DOLLARS PER CENT ments for merchandise trade and through intra ■ NETHERLANDS corporate transfers by multinational firms. These RESERVES steps helped calm the guilder market further, and the rate began to ease away from the upper limit. The Federal Reserve’s reentry into the exchange market through offers of marks in New York on July 19 brought about an easing of the German mark against the dollar over the next few days, and the guilder rate too began FRANCE to decline. Moreover, as the rate continued to 1.00 soften through the end of July and into August, previous leads and lags on trade transactions K RAL ■ rate began to be unwound. As a result of this de RESERVES cline, the spread between the guilder and the Belgian franc reached 1 Vi per cent. Under the EXCHANGE RATE terms of the Benelux agreement the Netherlands Bank was obliged to sell modest amounts of SEPT. SEPT. Belgian francs against guilders in order to pre vent the spread from widening still further. By For notes see p. 761. early September the guilder was trading below official ceiling. Over subsequent days, however, $0.3100 in a quiet market. the dollar came under pressure in other conti nental markets and, with exchange controls in FRENCH FRANC other countries deflecting funds away from those The French balance of payments had been in currencies, the guilder came into strong de substantial surplus in 1971, and the franc had mand, obliging the Netherlands Bank to absorb remained strong throughout the year. As part substantial amounts of dollars. By July 7, stiff of the Smithsonian Agreement, the French measures by the Swiss authorities had helped Government agreed to keep the gold parity of calm the European exchanges and the guilder the franc unchanged, thereby permitting the edged away from its ceiling. The respite proved franc to appreciate relative to the dollar by 8.57 only temporary, as the prospective EC finance per cent. The new central rate for the franc was ministers’ meeting on July 17-18 in London set at $0.1954%, with intervention limits set at sparked new rumors of a possible joint float 2lA per cent on either side. Although many against the dollar that led to massive shifting of the exchange controls imposed in the second out of dollars into most continental currencies. half of 1971 were eased or abolished following Along with other central banks, the Netherlands the Smithsonian Agreement, the French au Bank had to absorb progressively larger thorities maintained the basic structure of their amounts of dollars. In sum, from the time of two-tier exchange market. Under this system, the floating of sterling through July 17, the which subsequently has been liberalized, the Netherlands Bank took in $543 million at the Bank of France defends the franc at the pre Smithsonian ceiling. scribed intervention points only in the official Demand pressures for continental currencies market (through which trade and most service abated considerably when, during the course of transactions as well as governmental transac the London meeting, the EC finance ministers tions are effected), while all capital transactions reaffirmed their determination to defend the and some service transactions are strictly segre Smithsonian Agreement, while focusing their gated in a financial market where the franc rate discussion on longer-term issues of monetary is allowed to find its own level. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
774 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Despite the strength of the franc during 1971, cut to 2 lA per cent the maximum permissible most market participants had not expected so spread among their currencies. In the general large an appreciation of the franc against the rush into all European currencies that followed, dollar, and profit-taking brought the rate under the commercial franc was pushed almost to its heavy selling pressure as soon as the Paris ceiling by March 9, and the financial franc, bid exchange market was reopened on December up not only by speculative pressures but also 21. With leads and lags beginning to be un by heavy foreign purchases of French securities, wound, the French authorities sold a consid surged almost 3 per cent above that level. erable amount of dollars in the market as the The flurry was short lived, however, and the spot franc edged downward almost to its new commercial franc quickly settled down to a rate floor. Selling pressure on the franc let up in the well below its ceiling. The financial franc, al last days of December and, as doubts began to though staying above the official ceiling, also develop in the markets over the durability of eased. At first, the softening reflected a normal the Smithsonian Agreement, the franc rate early technical reaction to the preceding excessive in 1972 started a long steady advance. The sales of dollars. In mid-March, however, there financial franc, in the meanwhile, had fallen was a perceptible improvement in market atmo below the official franc’s floor on December 21 sphere following the regular central bank meet as speculative positions were unwound, but it ing in Basle, Switzerland, Secretary Connally’s subsequently converged with the official franc. indication of willingness to discuss the forum During the first quarter, the French current- for negotiations on international monetary re account balance deteriorated. Furthermore, in form, and President Pompidou’s expression of January the French authorities took a number optimism about the international monetary situ of steps to stimulate the domestic economy, ation. Moreover, the French authorities acted including reductions by the Bank of France in at this time to ease domestic monetary condi its rates on discounts and secured advances of tions, cutting requirements against the banks’ V2 percentage point to 6 per cent and IVi per domestic demand and time deposits (the re cent, respectively. While the franc rate might quirements against liabilities to nonresidents have been expected to soften in consequence, were, however, kept unchanged), reducing there was simultaneously a general strengthen those longer-term interest rates directly con ing of European currencies against the dollar, trolled by the Ministry of Finance, and lowering and the spot franc quickly rose to a level only the Bank of France’s domestic money market slightly below the central rate. In early Febru intervention rates. ary, an additional burst of demand, set off in Further relaxations of monetary policy re part by open debate over measures to control lieved buying pressure on the franc until late short-term capital flows and rumors of growing April. Then, heavy month-end conversions of official support in Europe for a joint EC float, export proceeds and, later, a temporary liquidity lifted the franc somewhat above the central rate. squeeze during the tax-payment period exerted These speculative pressures continued through upward pressure on the franc, and the spot rate much of the month and, with the Bank of France climbed close to its ceiling. Underlying liquidity on the sidelines, the rate rose steadily. At the conditions continued to ease, however, and, same time, the financial franc was pushed up once month-end factors were out of the way, to a modest premium above the official rate. the franc traded quietly just below the upper The market atmosphere deteriorated further intervention point until the end of May. when, on March 3, French Finance Minister At that point the franc rose to its ceiling in Giscard d’Estaing warned that the European response to an erroneous news report of Trea response to continuing dollar inflows would be sury Under Secretary Volcker’s press confer a further extension of exchange controls— ence on May 30. The pressure was especially perhaps at first on a piecemeal basis but later heavy on June 2, when the Bank of France in concert. It was shortly thereafter that the EC moved to restrain the growth of the French finance ministers announced they would soon money supply by raising the reserve requirement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 775 against increases in bank credit from 2 per cent outcome of the EC finance ministers’ meeting to 4 per cent. With interest rates in France in London on July 17-18 had a calming effect already higher than in other major European on the market, however, and in line with the countries, however, the authorities were con general firming of the dollar in mid-July the fronted with a dilemma since they did not wish demand for francs eased to the point where to draw in additional funds from abroad. official support tapered off. Nevertheless, the Consequently, the Bank of France reduced its spot rate continued to bump up against the money market intervention rates on successive ceiling until news of the Federal Reserve’s in days to keep domestic interest rates below tervention in defense of the dollar on July 19 Euro-dollar yields. With each drop in the do helped reduce pressure on the franc. Even then mestic intervention rates, the pressure in the the franc continued firm by comparison with exchange market subsided and the franc tempo other continental currencies, as the French rarily edged below its ceiling. Meanwhile, the authorities maintained a relatively tight rein on financial franc had advanced to a premium of domestic liquidity by raising the banks’ mini over 3 per cent above the commercial rate, mum reserve requirements against both resident reflecting flows of funds into the French stock and nonresident liabilities by 2 percentage market and some switching of funds out of points, effective July 21. The franc remained sterling. close to the ceiling in early August, but a The franc rate was again pushed hard against somewhat softer tone developed toward mid its ceiling in mid-June, when speculation against month following market and press reports that sterling began. As the flight from sterling gath the Federal Reserve had been selling Belgian ered momentum, large-scale official intervention francs. Moreover the dollar was helped by was required to keep sterling within 2Va per cent subsequent news of improved second-quarter of the franc. Both the Bank of France and the U.S. balance of payments figures and reports Bank of England had to intervene on a pro of further U.S. efforts to find a settlement of gressively heavier scale, supplying francs the war in Vietnam. The financial franc had been against sterling to an often hectic market. In dropping more sharply, falling to a premium of the circumstances, the franc was pulled lower less than 2 xh per cent over the official franc’s and lower vis-a-vis the dollar until it reached ceiling, as new issues of franc-dominated Euro $0.1972V£ by the morning of June 22, some 1.4 bond issues slackened during the vacation per cent below the ceiling. period and as conversions of franc bank notes With the announcement of the floating of the sold abroad by French tourists swelled. Later pound at the opening on June 23, the franc in August, both the commercial and financial immediately rebounded to the ceiling. After franc rates firmed but trading remained orderly. absorbing a sizable amount of dollars, the Bank of France, in a joint move with the other EC ITALIAN LIRA central banks that were still dealing in the Following the Smithsonian meeting, the Italian foreign exchanges that morning, ceased inter authorities established a central rate of vening and the Paris exchange market was $0.001719% for the lira, representing a 7.48 closed. When the Bank of France reopened the per cent appreciation against the dollar that was exchange market on June 28, the franc hovered slightly less than the dollar’s devaluation against close to the ceiling, but the market was rela gold. At the same time, they revoked the ex tively quiet and there was little further official change control regulations introduced as of De intervention. As a result of the inflows during cember 6, whereby the Italian banks had been June, French reserves rose by $921 million. instructed to refuse conversion of foreign cur During the first half of July, strong specula rencies into lire unless the proceeds were re tive pressure began to build up against the quired for normal trade or service transactions dollar; with the franc rate hard against its upper or for nonspeculative capital transactions backed limit, the Bank of France had to intervene by the appropriate documentation. almost every day, often in large amounts. The After the Italian exchange market was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
776 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 reopened on December 21, the spot rate soon with the central bank, and shortly thereafter they settled near its new floor. A prolonged period cut both their lending and deposit rates. of political uncertainty and the resultant delay The spot lira rate declined until just before in dealing with important social and economic the EC currency arrangements limiting the problems generated some capital outflows. At maximum permissible spread between any two the same time there were continuing prepay EC currencies were put into effect on April 24. ments of foreign loans. Consequently, even At that point the spot rate firmed somewhat, though the already large surplus in Italy’s bal fluctuating about 2 per cent below the strongest ance of payments on current account was ex EC currency through the month-end. In early panding as the pace of domestic economic activ May, when the Belgian and French francs ity slowed, the spot rate held close to its lower moved smartly higher, the lira held at the lower limit through the second week in January. Then, end of the band. But no official intervention was with successive waves of speculation pushing required to keep the lira within the band, as many of the other EC currencies to their ceilings, market arbitrage proved sufficient to do so in the lira was pulled upward, eventually reaching the absence of strong pressures. As other EC some 1 per cent below its central rate where it currencies rose during May, the lira rate was traded through early March. pulled higher and it hovered around the central On March 7 the EC finance ministers an rate until late May. Then, when formal con nounced their agreement in principle to narrow sultations to form a new government in Italy the margin of fluctuation between the Common were undertaken, the lira moved up to about Market countries’ currencies to 2XA per cent. 0.4 per cent above the central rate. With other EC currencies at or close to their The accelerating attack on sterling that de ceilings, the market responded to this an veloped in mid-June brought with it heavy sell nouncement by pushing the lira up into the ing of lire and an abrupt shift in leads and lags proposed band. For some days the spot rate was, against Italy. By June 22 the spot rate had been therefore, above the central rate. But the Euro pushed to more than 1 per cent below the central pean markets soon turned quieter and, when the rate. When the Italian exchange market re other EC currencies edged away from their mained closed on Friday, June 23, in the wake upper limits, the lira—near the bottom of the of the floating of the pound, reports circulated 2lA per cent band—dropped back to the central widely both in the market and in the Italian press rate or just below, where it held through the that the lira would be devalued or that the Italian end of the month. authorities were strongly considering withdraw A still softer tone developed in early April, ing from the EC arrangements. In this atmo especially when the Bank of Italy acted to help sphere, the formation of a new Italian coalition stimulate an upturn in economic activity by government failed to allay the market’s intense relaxing domestic credit conditions. Taking ad nervousness. vantage of the tendency toward lower interest On June 26 the EC finance ministers, meeting rates abroad, the bank cut its rates on discounts in Luxembourg in the aftermath of sterling’s and secured advances by Vi percentage point to float, confirmed their intention to maintain the 4 per cent and V/i per cent, respectively, effec EC arrangements and, to facilitate Italy’s con tive April 10. (The additional IV2 percentage tinued adherence to the scheme, permitted Italy point penalty for banks making excessive use to intervene for a 3-month period in dollars of central bank credit was, however, main rather than in EC currencies to keep the lira tained.) Simultaneously, interest payments on within the EC band. (The EC arrangements balances held by commercial banks with the normally permit intervention in dollars only Bank of Italy were discontinued for deposits of when a currency is at its Smithsonian limits.) more than 8 days, and were reduced from IV2 In addition, the Italian authorities took several per cent to 1 per cent per annum for deposits other measures in an attempt to tighten control of 8 days or less. The banks were thus induced over foreign currency movements. They pro to place excess funds in the market rather than hibited the crediting of lira notes to foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 111 CHANGES IN EXCHANGE RATES AND tion was required to bring the lira back into the ID OFFICIAL TRANSACTIONS band at around its central rate. Despite this support, pressure on the lira continued as leads and lags remained adverse and Italian residents continued to repay their foreign borrowings. Consequently, the Italian authorities had to in tervene in support of the lira well into July. To help offset the cost of official reserves of this .4 foreign exchange market intervention, the Ital ian Exchange Office required any bank that .8 developed a net foreign asset position to use 5.0 the surplus foreign exchange to repay out standing dollar swaps with it, while public en 4.0 terprises were encouraged to tap the Euro-dollar market for large amounts. By mid-July Italian 3.0 banks were repatriating funds on a large scale, state-owned entities were converting consid 2.0 erable amounts taken up in the international market, and tourist receipts were starting to 1.0 build up. Consequently, pressure on the spot rate subsided, and the lira held just around its + 0 central rate through the rest of the month. Some of the foreign exchange inflows were added to 1.0 official reserves, keeping the total reserve cost of the Italian support operations in June and July 2.0 to around $100 million. This improved atmo sphere continued through August, although the lira eased somewhat along with other European 3.0 currencies as the dollar strengthened. 1.2 JAPANESE YEN .8 For several years prior to 1971, Japan had recorded progressively larger balance of pay .4 ments surpluses, marked both by a burgeoning trade surplus and by increasingly heavy private + 0 capital inflows. As foreign exchange reserves mounted, the Government had moved to impede JULY SEPT. NOV. JULY SEPT. _______________1971 or offset the inflows of funds by tightening exchange controls, by promoting a shift in the For notes see p. 761. financing of Japanese imports from foreign to accounts, thereby shutting down the export of domestic sources, by liberalizing some of the capital through bank note conversion. They au controls on imports arid on capital outflows, and thorized the banks to assume net foreign liability by depositing some officially held dollars with positions rather than, as before, requiring bal commercial banks. anced positions. And, finally, they reopened the While these measures had helped to relieve door to nonbank borrowings abroad. some of the immediate pressure, the markets Fortified with these measures, the Italian became increasingly convinced that the yen was authorities reopened the exchange market on seriously undervalued. Therefore, when the June 28. The lira opened the day well outside U.S. Government suspended convertibility of the 2lA per cent EC band, and sizable interven the dollar in August 1971, there was a massive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
778 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 rush into yen that ultimately forced the Japanese those banks to reduce their borrowings for U.S. Government to float its currency later that banks. Deposits with the banks to facilitate the month. Over the following months, the yen rose provision of export cover had been initiated in sharply in the exchange market. But the au June 1971, and these new deposits raised the thorities, concerned that a rapid run-up in the total amount transferred out of official reserves yen rate might impede the hoped-for recovery to $1.5 billion. in the domestic economy, intervened heavily to Then late in March, the Bank of Japan an moderate the advance. nounced that, as an additional step to curb Under the terms of the Smithsonian Agree official reserve growth, it would increase its ment, the central rate for the yen was established share of the financing of the country’s imports at $0.003246%, an effective appreciation of from 30 per cent to 50 per cent over the 4-month 16.88 per cent against the dollar. The Japanese period beginning in April; credits already ex authorities, in line with actions taken by other tended by the central bank under this program countries, immediately abolished some of the totaled some $1.3 billion at that time. Despite severe measures imposed earlier to block the these programs, however, Japan’s official re inflow of funds. Then on January 5, with the serves rose by $1.2 billion during the first yen settling near its floor and some reflows quarter, exclusive of the 1972 allocation of developing, the Japanese Government an SDR’s. nounced a further relaxation of exchange con Early in April the authorities decided to stim trols, eliminating among other things the re ulate some demand for dollars by requiring quirement of prior official approval for any repayment at maturity of a series of special prepayment of Japanese exports. Not all of the dollar deposits made the previous fall in con control apparatus was dismantled, however, and nection with provision of forward cover for certain measures limiting the foreign positions small and medium-sized Japanese enterprises. of Japanese banks were retained. Over the next Since the banks did not have the dollars avail 2 days a bunching-up of export prepayments able, they were forced to come into the market gave rise to a burst of demand for yen, and as buyers of dollars to repay the maturing de the Bank of Japan absorbed a sizable amount posits. Shortly thereafter, Japanese seamen of dollars, but the market then turned quieter. began a prolonged strike, and subsequent work By late January the exchange markets had disruptions at the docks and in other industrial become increasingly jittery. Most major foreign sectors curtailed Japanese exports for some currencies began to rise sharply against the time. As a consequence of these developments, dollar, reflecting uncertainty over the viability the yen declined over much of April and re of the Smithsonian Agreement and concern over mained easy in early May. By mid-May the yen declining interest rates in the United States. The dropped to as low as $0.003282, and the Bank yen, in particular, was in strong demand as the of Japan sold dollars to steady the market. December 18 appreciation was seen by some On May 23 the Bank of Japan announced as insufficient, given the size of the adjustment that, as of June 1, the 1.5 per cent minimum needed to bring the Japanese payments accounts reserve requirement against the foreign ex into balance. Even with the Bank of Japan change banks’ free-yen liabilities to foreigners intervening to slow the advance, the yen almost would be replaced by a 25 per cent marginal reached its upper limit by February 24. requirement on increases in such liabilities. Also In view of this renewed show of strength for that day, the Japanese cabinet gave approval to the yen, the authorities resumed their efforts to a multifaceted plan to stimulate domestic busi encourage the financing of Japanese trade out ness activity and, at the same time, bring of Japanese reserves rather than with foreign Japan’s external accounts into better balance. credits, and the yen eased. The Ministry of The exchange market did not believe these Finance began to make deposits, totaling $200 measures would bring any early change in the million in February and $100 million in March, basic situation, however, and the spot rate held with the Japanese exchange banks to induce steady through early June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 779 With the attack on sterling, the entire Smith dollar. Heavy buying of Canadian dollars did sonian alignment appeared threatened and the not develop, however, until the conclusion in yen was bid sharply upward. Following the early December of the Group of Ten meeting floating of the pound, the Bank of Japan closed in Rome. Thereafter, the Canadian dollar was its exchange market while also announcing a pushed as high as $1.00%, and it remained reduction in its discount rate by Vi percentage strong until the Smithsonian meeting of the point, to 4Va per cent. Then, in an attempt to Group of Ten on December 17-18. isolate the Tokyo market from a new round of The communique at the conclusion of the short-term inflows, the central bank doubled the Washington meeting noted that “Canada in reserve requirement for free-yen accounts to 50 tends temporarily to maintain a floating ex per cent and strengthened the regulations against change rate without intervention except as re advance payments of Japanese exports. When quired to maintain orderly conditions.” The the Japanese market reopened on June 29, the Canadian dollar immediately rose to nearly Bank of Japan had to absorb substantial amounts $1.00%, but expectations of a further appreci of dollars through the end of June to hold the ation dissipated rapidly, and the spot rate spot rate at the ceiling. dropped back to below the $1.00 level in late These inflows and the continuing basic pay December. After easing further early in January, ments surplus were more than fully offset by the Canadian dollar settled at around $0.99% the various measures taken to push dollars out by the middle of that month. of reserves. By the end of June the special With the domestic economy expanding rap deposits with the banks, which had been in idly, the Canadian current account had slipped creased in several stages, amounted to $1.9 into deficit in late 1971 and the deficit increased billion, and the Bank of Japan’s share in import in early 1972. Nevertheless, a step-up in loan financing amounted to some $2.3 billion. Dur demand in Canada put pressure on bank liquid ing the entire second quarter the Japanese au ity and in February interest rates began to rise, thorities succeeded in pushing some $1.4 billion attracting funds from abroad. This influx of out of reserves through special operations, short-term capital, combined with continuing bringing about a reduction in reserves of $820 longer-term Canadian borrowings tended to off million for the quarter. set the current-account deficit, and the Canadian In early July the exchange markets remained dollar held relatively steady in the exchanges in the grip of uncertainties over the future of through late February. the Smithsonian Agreement, and with the yen At that point, substantial new Canadian wheat at its ceiling, the Bank of Japan was obliged sales to the Soviet Union were announced, to intervene heavily. Although most European leading to a bullish reaction in the market. The currencies eventually edged away from their spot rate for the Canadian dollar began to ad dollar ceilings, particularly after the July 17-18 vance, and with rising interest rates in Canada London meeting of EC finance ministers and the still drawing funds from abroad, the rate soon July 19 exchange market initiative by the Fed rose above $1.00 once again. As it has done eral Reserve, the Japanese yen remained at its throughout the period of the floating rate, upper limit in Tokyo. Demand remained heavy the Bank of Canada intervened intermittently as a result of the continuing large export surplus on both sides of the market to moderate fluctua and renewed inflows to the Japanese stock mar tions in the rate, and with the Canadian dollar ket. The Bank of Japan, therefore, had to take rising on balance, official reserves rose by $189 in dollars almost daily, and sometimes in fairly million over the first 3 months of the year. substantial amounts, during July and August. During the second quarter the Canadian dollar came into strong, persistent demand. On occa CANADIAN DOLLAR sion, this demand reflected the general uncer As other major currencies rose strongly against tainties that were having such profound effect the U.S. dollar late last year, there was also on other currency markets. Nevertheless, the occasional upward pressure on the Canadian growing strength of the Canadian dollar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
780 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 throughout the spring was more clearly traceable On the demand side the market has come to developments in Canada’s own payments increasingly under the influence of a wide vari position. Canada’s current account improved ety of administrative restraints imposed by Eu sharply during the second quarter, with a swing ropean governments and central banks over the of some $400 million away from the exceptional past year. In several countries, access by cor deficit of the first quarter. Moreover, the Cana porations to the market has been severely cur dian provincial governments and public utilities tailed in order to restrain further accretions to borrowed heavily abroad through bond issues, official dollar reserves. In Germany, in particu particularly in May. In addition, domestic credit lar, corporate borrowings in the Euro-dollar conditions in Canada continued to tighten, and market were limited by fears of the impending the chartered banks moved aggressively to at imposition of compulsory cash-deposit require tract funds. The consequent heavy demand for ments for nonfinancial enterprises, even before Canadian dollars drove the spot rate up by more the actual implementation of the Bardepot on than 2 cents from late April through early June, March 1. In addition, in many countries various to about $1.021A. barriers have been erected that prevent banks At that point, the squeeze for balances in from converting Euro-dollar borrowings into Canada became acute, and the chartered banks, local currencies, and these and other impedi facing heavy loan demand but under pressure ments to Euro-dollar borrowings were rein not to raise their prime rates above 6 per cent, forced during periods of pressure on the dollar had begun to offer certificates of deposit (CD’s) early this year and again following the currency at yields of as much as 6V2 per cent. This crisis in June. naturally drew in still more funds, pushing the As a result of these constraints and of the Canadian dollar to almost $1.02%. The Cana decline in interest rates in European domestic dian authorities then moved to forestall a further loan markets, the demand for Euro-dollars in rise in the exchange rate by prevailing upon the major European countries tended to be weak chartered banks to cut back their rates on CD’s, during most of the spring and summer. How effective June 12. Subsequently, other Canadian ever, the contraction of demand from traditional money market yields also dropped back, as loan sources was largely offset by a sharp rise of demand eased somewhat. The Canadian dollar borrowings, mostly for distant maturities, by began to ease in the exchanges, reaching YIELD COMPARISONS $1.011/2 by the end of June. Over the second 3-MONTH MATURITIES EXCEPT WHERE NOTED quarter as a whole, official intervention in a CENT market that was rising on balance resulted in 10 a substantial net reserve gain of $328 million. Trading turned much quieter in July, and the Canadian dollar held fairly steady between $1.01% and $1.01% throughout the month. With the onset of seasonal strength, a somewhat firmer tone emerged in August and the spot rate edged slightly higher. EURO-DOLLAR On the whole, Euro-dollar rates have been rela tively stable since early 1972, although for brief periods speculative flurries and exchange market uncertainties have exerted upward pressure on 0 the rate level. In contrast to the wide rate fluc JULY SEPT. NOV. JAN. MAR. MAY JULY SEPT. 1971 1972 tuations during the preceding year, the weekly average of daily rates for the 3-month maturity Euro-dollars are weekly averages of daily rates; CD’s Wed remained within a relatively narrow range. nesday data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 781 public and semipublic institutions in developing YIELD COMPARISONS countries. Much of this expansion of loans to 3-MONTH MATURITIES non-European borrowers reflected the aggres PER CENT 10 sive efforts of major European banks that were flush with funds to find new takers for Euro U.K. LOCAL AUTHORITY dollar loans. Eastern European countries also took advantage of the ample supply of Euro dollar loans. These various borrowings tended to cushion rate pressures arising from the disappearance from the market of some major Euro-dollar borrowers. Nevertheless, for protracted periods, notably during the April-June period, overnight Euro-dollar rates remained substantially below the Federal funds rate, providing some of the New York agencies and branches of foreign banks with opportunities for arbitraging between SEPT. the two markets. Some U.S. banks also took advantage of the relatively attractive rates to Weekly averages of daily rates. borrow overnight Euro-dollars. On the supply side, both U.S. residents and In April, with U.S. interest rates moving up non-U.S. holders of dollars found the market and with Euro-dollar rates remaining under increasingly attractive during the early months pressure, the differential between the 3-month of the year, when short-term interest rates in Euro-dollar rate and that for U.S. CD’s nar the United States dropped much more sharply rowed appreciably. The spread between the two than 3-month Euro-dollar rates. Supplies from rates had been in excess of 2 per cent in the European official sources were held back as a middle of January; it fell to less than 1 per cent result of the June 1971 agreement of the central in April. During the remainder of the spring, banks of the Group of Ten countries not to place conditions in the Euro-dollar market were gen additional dollar balances in the market; how erally more comfortable. Thus, by early June ever, supplies from non-European official the Euro-dollar/CD spread had narrowed further sources expanded further, as monetary reserves to only 40 basis points. of many countries continued to rise. The relative The run on sterling, which had developed in attraction of the market to European commercial mid-June, at first had little direct impact on the banks also increased, as the relaxation of Euro-dollar market. As sterling weakened, the monetary policy by several eastern European central banks of the EC intervened in the market countries during the January-April period rein by selling their own currencies. Several Euro forced a general trend toward lower interest pean currencies dropped to levels that the mar rates. ket considered unsustainably low in dollar Against this background, Euro-dollar interest terms. As a result, these currencies were bought rates tended to move downward in sympathy heavily with dollars. The financing of these with U.S. domestic interest rates early in the purchases brought about a new demand for year. Then, rates began to rise sharply in a Euro-dollars that, coupled with some midyear belated response to the turnaround in U.S. in demand, pushed rates up once again. terest rates in late February. This rise proved On June 23, the day the British authorities short lived, however; when the usual quarter- yielded to the intense market pressure and al end pressures failed to materialize and domestic lowed the pound to float, the 3-month rate rose European money market rates declined further, as high as 6 per cent and 7-day Euro-dollars rates on all Euro-dollar maturities began to drift reached a peak of 7 per cent. Then, with the lower again. passing of the immediate effects of the specula Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
782 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 tive buying of continental European curriencies Euro-dollar rates began to edge downward. and of the midyear pressures, the rates on most After a brief squeeze at the month-end, the Euro-dollar maturities eased somewhat. How market stabilized in early August, with the 3ever, the Euro-dollar market remained suscepti month rate fluctuating narrowly around 5 Vi per ble to the anxieties of the foreign exchange cent per annum. The tone of the market was market, and during the period of heavy pressure nevertheless fairly firm, as U.S. short-term rates on the dollar in the exchanges in early July there tended to rise and some new demands came into were periodic scrambles for funds to cover short the market. In particular, Italian public cor positions. porations resumed their borrowings of Euro When the exchange markets turned calmer dollars in response to official encouragement, after mid-July following the resumption of Fed and the squeeze for sterling balances in London eral Reserve operations in defense of the dollar, also tended to draw funds out of Euro-dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Yields On Newly Issued Corporate Bonds With this issue of the B ulletin, the Board of The nature of the public market for corporate Governors is beginning to publish a series of bonds presents several obstacles to the develop yields on new issues of corporate bonds. ment of a new-issue yield series. There are Monthly and quarterly data for 1960 to 1972 relatively few new public offerings of bonds in and weekly data for 1972 are shown in Table any given week. And on occasion there may l.1 Yields are based on prices asked by un be none. More importantly, the relatively small derwriting syndicates and do not necessarily number of observations are for bonds with sub coincide with market clearing prices. A com stantial heterogeneity. Newly issued bonds in panion series for yields on recently offered cor any week may come from one of a number of porate bonds—which reflects free market industry groups, and they may have different yields—is being prepared for publication later. default risks, call options, call schedules, ma Yield series on seasoned corporate bonds turities, and so on. The market valuation of some carry the undesirable feature of generally tend of these characteristics varies over time, particu ing to understate both the level and the move larly for the call option and for default risk. ment of yields in thfe new-issue market. Several In order to track accurately the level and the factors account for this behavior. One, the lower changes in a “pure” yield on a newly issued yields usually found on seasoned bonds may corporate bond over time, it is necessary to stem from market imperfections that cause an measure the yield on a bond with invariant appreciable lag in yield adjustments between characteristics—in effect, a hypothetical new newly issued and seasoned bonds. Two, bonds bond. This standard bond is defined as a new in a seasoned bond series often carry noncurrent straight-debt, long-term (20 years or longer) coupons—this has been true especially for the utility issue, rated Aaa by Moody’s Investors period since the mid-1960’s—that translate into Service, Inc., carrying 5-year call protection, bond prices considerably above or below par. and underwritten by a process of competitive When corporate bonds trade at such prices, pre bidding. Since the hypothetical bond is a new vailing yield differentials may reflect the effect of issue, it is also assumed to carry a current capital gains taxes, call-price restraints, or other coupon. Although these characteristics were considerations, which are infrequently if ever chosen somewhat arbitrarily, they represent encountered in the new-issue market. And three, features that have been common to a large both the reliability and the availability of bid- number of the bonds offered to investors in and-asked quotes on seasoned bonds leave recent years. something to be desired. For these reasons, the Since there are many weeks in which no new-issue yield series provides a more sensi standard bond is offered, weekly yield informa tive measure of interest rates on corporate tion on newly issued bonds is obtained from bonds—one that should be useful in analyzing bonds with characteristics other than those of current market developments and in conducting the standard bond. Using such information re certain longer-term research projects. quires a model that explains the market valua tion of heterogeneous bond characteristics. The model employed relies upon existing theory whenever possible; it is basically a nonlinear lrThis series was developed by James L. Kichline, P. Michael Laub, and Guy V. G. Stevens. regression model that can be used, when one Weekly data beginning Jan. 1, 1960, are available has good estimates of its parameters, to calcu upon request from Capital Markets Section, Division late the values of the heterogeneous charac of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. teristics on observed newly issued bonds and to 783 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
784 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 arrive ultimately at the estimated yield on the ible bonds, serial issues, offerings of natural gas standard bond. pipeline companies and foreign companies, and The parameters of the model were estimated bonds guaranteed by the U.S. Government. with a sample of 1,422 new issues covering the Details of the model, the estimation procedures, period January 1960 through February 1972. All and a discussion of the results will be presented long-term, straight-debt issues rated Aaa, Aa, in a forthcoming Federal Reserve Staff Eco or A by Moody’s Investors Service, Inc., were nomic Study, which will be summarized in the included in the sample. Excluded were convert B ulletin. □ TABLE I NEW-ISSUE AAA UTILITY BONDS In per cent Period 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 Monthly and quarterly, 1960-72 Jan.............. 4.93 4.11 4.36 4.08 4.33 4.30 4.78 5.18 6.29 6.98 8.59 7.43 7.21 Feb............. 4.86 4.05 4.40 4.12 4.25 4.36 5.01 5.21 6.25 6.98 8.53 7.33 7.34 Mar. 4.75 4.05 4.28 4.12 4.36 4.38 5.21 5.36 6.50 7.38 8.64 7.59 7.24 Apr............. 4.74 4.36 4.14 4.20 C1) 4.39 5.07 5.42 6.51 7.18 8.69 7.48 7.45 May ........ 4.76 4.38 4.12 4.20 4.37 4.42 5.27 5.70 6.74 7.32 9.09 8.01 7.38 June ........ 4.62 4.62 4.13 4.19 4.39 4.47 5.37 5.87 6.69 7.69 9.25 7.98 7.32 July 4.49 4.42 4.28 4.23 4.34 4.49 5.52 5.87 6.48 7.66 8.79 8.04 7.38 Aug............ 4.19 4.54 4.25 4.20 4.31 4.56 5.81 5.99 6.18 7.72 8.72 7.71 7.37 Sept............ 4.40 4.43 4.06 4.25 4.32 4.58 5.85 5.96 6.25 8.15 8.63 7.68 Oct............. 4.54 4.30 4.13 4.23 4.32 4.59 5.73 6.19 6.50 8.16 8.81 7.50 Nov. 4.60 4.38 4.04 4.29 0) 4.67 5.81 6.47 6.66 8.48 8.51 7.38 Dec............ 4.70 4.51 4.09 4.35 4.39 4.84 5.73 6.59 6.93 8.82 7.93 7.28 Q 1 ........ 4.85 4.08 4.34 4.11 4.31 4.35 4.99 5.25 6.34 7.11 8.59 7.46 7.26 Q 2 ........ 4.72 4.54 4.13 4.20 4.37 4.43 5.22 5.67 6.64 7.39 9.01 7.78 7.38 Q 3 ........ 4.38 4.46 4.21 4.23 4.32 4.55 5.74 5.93 6.29 7.83 8.72 7.83 Q4 ........ 4.62 4.39 4.08 4.29 4.34 4.70 5.75 6.37 6.66 8.44 8.51 7.42 Weekly, 1972 Jan. 7 ........ 7.18 Mar. 3 7.32 May 5........ 7.40 July 7 7.35 14 7.10 10 7.08 12 7.40 14 7.32 21 7.18 17 7.24 19 7.29 21 7.37 28 7.39 24 7.32 26 7.49 28 7.48 31 7.29 Feb. 4 7.22 June 2 ........ 7.22 Aug. 4 .... 7.40 11 7.44 Apr. 7 7.34 9 7.27 11 7.37 18 7.31 14 7.46 16 7.35 18 7.32 25 7.35 21 7.60 23 7.30 25 ....... 0) 28 7.41 30 7.42 Sept. 1 7.41 8 7.38 1 In these time periods, there were no new issues that met the criteria for inclusion in the series. Note.—Board of Governors of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statement to Congress Statement by Arthur F. Burns, Chairman, interest rates began rising somewhat in the Board of Governors of the Federal Reserve United States while they declined abroad. This System, before the Subcommittee on Interna convergence of international interest rates tional Exchange and Payments of the loint Eco helped to improve the atmosphere of foreign nomic Committee, September 15, 1972. exchange markets. So too did prompt passage by the Congress of the Par Value Modification Nine months have elapsed since last December Act, known popularly as the gold bill. Confi when the finance ministers and central bank dence in the new system of exchange rates governors of the Group of Ten countries met therefore improved and markets became more at the Smithsonian Institution and reached an orderly. agreement on realigning the rates at which major Indeed, between mid-March and mid-June a currencies are to ‘exchange for one another. sizable reflow of capital to the United States During this period, exchange markets have al actually materialized. This reflow more than ternated between calm and uneasiness. offset our continuing deficit on current account. The immediate reaction of the financial world Since the United States ran a surplus in its to the Smithsonian Agreement was one of over official settlements balance during this period, whelming approval. After the turn of the year, the dollar naturally strengthened in exchange however, the earlier enthusiasm gave way to markets. more cautious appraisal. This encouraging development ended Many market participants expected a large abruptly in June as sterling came under increas return flow of capital to the United States to ing pressure. Today’s hearing is hardly the materialize right after the December meeting. occasion to discuss Great Britain’s problems, This did not happen. A decline of interest rates except to note that sharp and persistent wage in the United States relative to those abroad was and price advances weakened the market’s partly responsible for inhibiting the reflow of confidence in the ability of Britain to continue funds. Another factor was the initial low level to defend its new exchange rate. On June 23, of foreign exchange rates within the wider ex after suffering a huge decline of monetary re change margins agreed to at the Smithsonian serves, the British Government announced its meeting. With the major European currencies decision to float the pound. below their central values, temporary holders In the weeks following the British decision, of those currencies sensed a possibility of mak exchange markets were again in turmoil and the ing a larger profit by delaying a shift back into dollar again weakened. Most of the major Eu dollars until the dollar prices of foreign curren ropean currencies and the Japanese yen moved cies approached closer to their upper limits. And to their Smithsonian ceilings as market partici once major European currencies strengthened pants sought protection against the possibility within the margins, fears developed that some of tighter foreign restrictions on capital imports, governments would fail to defend the Smith a float of Common Market currencies, or some sonian exchange rates. combination of both. Speculative waves buf But as successive speculative episodes oc feted the markets daily, and several countries curred in January, February, and early March, responded by adopting new restrictive measures the foreign central banks intervened decisively. on capital inflows. By Friday, July 14, the Their clear determination to uphold the new sterling crisis, besides causing a shift of $2.6 system of exchange rates had a reassuring effect billion from sterling into Common Market cur on the market. Moreover, short-term market rencies, led to an additional flow of over $6 785 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
786 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 billion from dollars into European currencies and in the light of two major facts: first, the amount the yen. offered by the Bank for sale was much larger; A period of relative calm was finally restored second, in view of the extensive swap facilities after mid-July and has been maintained since outstanding, their reactivation meant that the that time. On July 17-18, the Common Market amount that could at any time be offered for finance ministers and central bank governors sale was vastly larger. The second of these facts met in London and reaffirmed their determi has been a matter of general knowledge, and nation to maintain the Smithsonian pattern of it was sufficient to make even reckless specula exchange rates while discussions were proceed tors stop and think. As the dollar strengthened ing on longer-term reform of the international on the exchanges, all sales of foreign currencies monetary system. On July 19, the Federal Re by the Federal Reserve that have taken place serve System, acting in collaboration with the since July 19, whether from balances on hand Treasury, resumed operations in the foreign or from swap drawings, were later fully covered exchange market. These two actions were en by market purchases. tirely independent. Both played a major role in The Federal Reserve’s foreign exchange arresting disorderly speculation and renewing operations started in 1962 and have been market confidence. reported semiannually since then. The latest Officials of the Federal Reserve and the Trea report, which describes operations through Sep sury had been considering for some time the tember 8, was released just a few days ago. advisability of renewed operations in the ex With your permission, I would like to submit change markets that would involve—among it for the record. other things—a resumption of Federal Reserve Let me call your attention now to a few salient swap drawings that were suspended on August facts concerning the swap facility—that is, the 15, 1971. Once a governmental decision to network of reciprocal currency arrangements reactivate the swap network was reached, the that the Federal Reserve maintains with foreign Federal Reserve was ready to move. The first central banks. This facility encompasses 14 of these exchange operations occurred on July central banks and also the Bank for International 19 when the Federal Reserve Bank of New York Settlements. The total amount that the Federal made repeated offerings of sizable amounts of Reserve can draw on these institutions under German marks on the New York market. I outstanding arrangements is $11,730 million. explained at the time that this operation was By August 15, 1971, the amount actually undertaken to help restore order in the foreign drawn—that is, the Federal Reserve’s debt to exchange markets, that the United States was foreign institutions—had reached a peak of $3,simply doing its part in upholding the Smith 045 million. Since then, substantial repayments sonian Agreement just as other countries were have taken place, and the outstanding debt stood doing, and that the operation would continue at $1,770 million on September 8 of this year. on whatever scale and in whichever currencies Although profit considerations have never seemed advisable. As this Committee doubtless been the primary factor in the swap transactions, knows, the American intervention in the ex the Federal Reserve may either earn a profit or change market was very favorably received by incur a loss in the course of using the swaps. financial observers and participants both in the A swap drawing by the Federal Reserve entails United States and abroad. an obligation to deliver a specified amount of The New York Reserve Bank has recently foreign currency at a future date. If the Federal intervened in the market for Belgian francs as Reserve acquires the currency needed for well as for German marks. In all, the Bank has repayment of the swap at a dollar price that is intervened in the exchange markets on nine lower than the price at which it was initially occasions and in the process sold about $32 sold, a profit is made on the two transactions million of foreign currencies. This amount, taken together. A loss results in the reverse case while relatively small, needs to be interpreted when the foreign currency appreciates between Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENT TO CONGRESS 787 the time of the drawing and the time it is paid drawing on swap lines as an alternative to con off and the required amount of foreign currency version by foreign central banks of dollars into is therefore purchased at a higher price. gold or other reserve assets. In the new opera As already noted, the Federal Reserve’s out tions, market intervention will be on the Federal standing swap commitments on August 15, Reserve’s initiative. It will be undertaken only 1971, amounted to $3,045 million. Inasmuch to prevent or counteract disorderly market as the dollar prices of the affected currencies— conditions and will be in such amounts and at namely, Swiss francs, Belgian francs, pounds such times as are judged likely to have a favor sterling, and German marks—have risen since able market impact. Swap drawings will not be then, the Federal Reserve has already incurred made for the purpose of providing medium- or or will probably need to incur losses in liqui longer-term financing of the U.S. payments dating these drawings. The total loss is presently deficit. Nor will they be used as a substitute estimated at about $160 million. for needed adjustments in basic economic poli Two related facts have a vital bearing on this cies. loss figure. First, from the inception of the swap Let me turn next to a brief discussion of network in 1962 until August 15, 1971, the recent balance of payments developments. The Federal Reserve had a cumulative profit on its world payments situation continues to be foreign exchange transactions of $25.6 million. plagued by large imbalances, despite the fact The second and more basic fact is that the that the Smithsonian exchange rates are more expected Federal Reserve loss on foreign cur appropriate than those that prevailed before Au rency transactions undertaken prior to August gust 1971. The U.S. deficit on current account 1971 is offset by the Treasury’s incremental and long-term capital transactions—sometimes profit on gold account. Prior to the suspension called the “basic” deficit—has continued to be of convertibility on August 15, 1971, foreign disconcertingly large, reaching an annual rate central banks taking in dollars could, under the of nearly $11 billion in the first half of this year. Bretton Woods Agreement, convert such dollars Meanwhile, other countries have been ex into gold or other reserve assets. The swap periencing large payments surpluses—not only transactions that were carried out in 1971 and Japan and some industrial countries in Europe, earlier years served to defer or to reduce de but also many of the nonindustrial countries. clines in reserve assets that would otherwise We knew, of course, at the time of the have occurred. Since gold was revalued in May Smithsonian Agreement that it would probably of this year, the Treasury has profited substan take 2 or 3 years for exchange rate adjustments tially from the revaluation of the additional to work out their full remedial effects. We also amount of gold that it now holds precisely knew that business recovery in Europe and because foreign central banks were willing to Japan was lagging behind the recovery in the accept Federal Reserve swap drawings instead United States, and that this divergence of busiof demanding reserve assets from the Treasury. ness-cycle phasing would of itself delay resto All along, the primary purpose of the swap ration of equilibrium in our balance of pay facilities that I have been discussing has been ments. Under the circumstances, it would be to serve as a first line of defense against disrup entirely premature to reach a pessimistic tive speculation in exchange markets. Future conclusion about the longer-run outlook for our foreign exchange operations by the Federal Re international transactions. It should, however, serve will continue to be guided by this objec be noted that the needed adjustments of pay tive. As in the past, operations in the currency ments imbalances, particularly in our merchan of a particular country will be conducted only dise trade, are taking place more slowly than after full consultation with the central bank of had been hoped or anticipated. that country. One need not be a great optimist to argue In the new phase of operations, however, we that several forces are at last working in the shall not be confronted with the necessity of direction of bringing about significant improve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
788 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ment in the over-all balance of our international Many important issues will have to be re payments. These include, first and foremost, the solved in the forthcoming negotiations. They better performance of costs and prices in this include questions about the future monetary role country during the past year than in other in of gold—a subject in which this subcommittee dustrial countries; second, the impact of the has indicated a special interest and on which exchange rate changes of last December, which Under Secretary Volcker testified earlier in the in time should appreciably moderate the growth week. In general, I agree with the views that of our imports while stimulating the expansion he has expressed. More specifically, I believe of exports; third, the cyclical recovery now that the monetary role of gold will continue to under way in Japan and Europe, which should diminish in the years ahead, while there will increase the demand for our exports; and fourth, be a continuing increase in the importance of the strong expansion of our domestic economy, SDR’s. which should—besides helping to attract foreign In discussing international monetary reform, capital to this country—make American inves we should guard against the tendency to be tors more willing to put their dollars to work preoccupied with gold. Other issues deserve the at home rather than abroad. greater part of our attention. Let me note some Still another encouraging fact is the growing of them. awareness—emphasized in the recent IMF Ways need to be found, first of all, to assure report on international monetary reform—that a more prompt adjustment of payments imbal the status of international payments imbalances ances than characterized the practical workings requires continuing review by both deficit and of the Bretton Woods system. Discussion of this surplus countries. objective and the means to attain it will in turn Finally, I want to comment briefly on the necessitate a thoroughgoing reexamination of prospects for international monetary reform. the provisions of the IMF Articles of Agreement The governments represented at the Smithsonian dealing with par values and exchange-rate flex conference recognized that the agreement they ibility. had reached represented only the first step in Under the monetary system that prevailed rebuilding monetary order. Although the before August 1971, there was a tendency to Smithsonian meeting—and conversations since equate deficits with sin and surpluses with vir that time—have set the stage for realistic in tue. Moral as well as financial pressures were ternational negotiations, they have done no certainly much greater on deficit countries to more than that. The uneasiness and turmoil that reduce their deficits than on surplus countries have characterized exchange markets in recent to reduce surpluses. In fact, however, respon months, the violent movements of short-term sibility for payments imbalances can seldom be capital from one currency into another, the new assigned unambiguously to individual countries. capital controls that various governments estab Moreover, the adjustment process is unlikely to lished in reacting to these movements, the work efficiently if surplus countries fail to par floating of the British pound—all these indicate ticipate actively in it. New means will therefore the urgent need for early rebuilding of the in need to be devised for achieving a better divi ternational monetary system. sion of responsibilities among surplus and defi Fortunately, it now appears that substantive cit countries for initiating the correction of pay negotiations will get under way promptly. The ments imbalances. Committee of 20 in the International Monetary A number of vital issues will arise in connec Fund will begin to function at the Fund-Bank tion with the convertibility of the dollar and meetings the week after next. The Deputies of future procedures for the settlement of payments the Committee of 20 should be able to meet imbalances. Decisions will need to be reached frequently thereafter, canvass different ap on the role of various reserve assets—not only proaches, and seek diligently to narrow the gold, but also SDR’s and reserve currencies. differences of view that presently prevail among Major changes may be called for in the proce national governments. dures governing the creation, allocation, and use Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENT TO CONGRESS 789 of SDR’s. Understandings will have to be tioned, and practical difficulties will intrude as reached about the desirability and feasibility of efforts are made to resolve the differences. imposing limitations on the use of reserve cur Nevertheless, we can be moderately optimistic rencies. Various proposals for the “consoli about the outlook. All countries have a strong dation” of reserve assets—among them, the interest in devising new rules to govern interna substitution of SDR’s for reserve currencies or tional monetary arrangements. Disagreements gold—may need to be examined. among nations exist, but they can be resolved Moreover, since restrictive trading practices once their representatives get down to the are a major factor influencing the balance of serious business of discussing them in a con payments position of individual countries, it structive and cooperative spirit. would be neither possible nor desirable to ex The task confronting the conferees will be clude the subject of trading arrangements from rendered more manageable if the major indus the forthcoming negotiations. As a specific ex trial countries, particularly the United States, ample, some consideration will have to be given meanwhile practice strict financial discipline. to ways of amending trade restrictions that im Indeed, I doubt if a viable international mone pede payments adjustment when exchange rates tary system can be rebuilt without better control are altered. over inflation than we have as yet achieved. Still other issues will come up, particularly Fortunately, this need is increasingly understood those bearing on volatile capital movements, the in our country. transition from our present interim arrangements I look ahead to an extended period of chal to the new reformed system, and the organi lenging and rewarding negotiations on monetary zational structure of the IMF. and related trade issues. At the end of this There are bound to be significant differences process, we should have the foundations of a in national views on the issues I have men new and stronger international economic order. 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 May 23 were published in the Bulletins for April, pages 390-97; May, pages 455-63; June, pages 562-70; July, pages 640-48; and August, pages 707-12. The record for the meeting held on June 19-20, 1972, follows: 790 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
791 MEETING HELD ON JUNE 19-20, 19721 Current economic policy directive. The information reviewed at this meeting suggested that real output of goods and services was rising in the second quarter at a faster pace than the 5.6 per cent annual rate recorded in the first quarter. A moderately higher rate of growth appeared to be in prospect for the rest of 1972. In May retail sales increased sharply, according to the advance report, and were well above the first-quarter average. Industrial production continued to expand, with gains reported among con sumer goods, business equipment, and materials. Payroll employ ment rose substantially further in manufacturing and other nonfarm establishments, but because of another large addition to the civilian labor force, the unemployment rate remained at 5.9 per cent. Wholesale prices of farm and food products rose considerably in May, following little change in April, and prices of industrial commodities continued upward at about the average rate of earlier months this year. Average hourly earnings of production workers on private nonfarm payrolls advanced at a slower pace than they had in the preceding 3 months. The latest staff projections of real GNP for the second half of 1972, which suggested some further increase in the over-all rate of expansion, were similar to those of 4 weeks earlier. It was anticipated that disposable income and consumption expenditures would rise at a somewhat faster pace; that business capital outlays would continue to expand, although not so rapidly as had been suggested in the previous projections; and that inventory investment would increase appreciably. It was expected that Federal purchases of goods and services would expand moderately further and that residential construction would level off. In foreign exchange markets, speculation involving a number of European currencies had developed since the last meeting of the Committee. The exhange rate for sterling against the dollar had declined significantly while rates for most continental currenlrThis meeting was held over a 2-day period beginning on the afternoon of June 19, 1972, in order to provide more time for the staff presentation concerning the economic situation and outlook and the Committee’s discussion thereof. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
792 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 cies had risen; the spread between sterling and several other currencies had widened to the maximum specified under the Euro pean Community monetary agreement. Through early June the U.S. balance of payments was in surplus on both the official settlements basis and the net liquidity basis, as recorded and unrecorded inflows of short-term capital to the United States continued to exceed the deficit on current and long-term capital account. The excess of merchandise imports over exports in April, however, had been even larger than in February and March. Since the Committee’s meeting on May 23, market interest rates on both short- and long-term securities had fluctuated in a narrow range—declining somewhat early in the period and rising again later. Rates had edged down in late May in part because of a Treasury decision not to refund $1.2 billion of bonds maturing on June 15 and expectations in the market that the Treasury would not borrow new funds until late July. Moreover, the combined volume of new publicly issued corporate and State and local government bonds had declined somewhat further in May and appeared likely to remain at a reduced level in June. Later in the period rates moved up again, in part because of the effects on investor expectations of reports that suggested further strengthening in economic activity and indications of some firming in money market conditions. Markets for Treasury notes and bonds also were influenced by discussion of the possibility that the Treasury might undertake an advance refunding. The market rate for 3-month Treasury bills was 3.92 per cent on the day before this meeting compared with 3.79 per cent 4 weeks earlier. Contract interest rates on conventional new-home mortgages were unchanged from April to May while yields in the secondary market for Federally insured mortgages rose slightly. Inflows of savings funds to nonbank thrift institutions continued to moderate. At commercial banks, business loans outstanding expanded in May at about the stepped-up rate of April, and real estate and consumer loans continued to grow rapidly. Banks also added a substantial amount to their holdings of securities, especially securi ties of State and local governments. Growth in the narrowly defined money stock (private demand deposits plus currency in circulation, or Mx) slowed further in May. However, inflows of savings funds to commercial banks increased, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 793 after having fallen off in the preceding 3 months, and growth stepped up somewhat in the more broadly defined money stock (Mx plus commercial bank time and savings deposits other than large-denomination CD’s, or M2). Over the April-May period, Mx and M2 grew at annual rates of about 6 and 8 per cent, respectively, compared with rates of about 9 and 13 per cent in the first quarter of 1972.2 Expansion in the bank credit proxy—daily-average member bank deposits, adjusted to include funds from nondeposit sources—remained rapid as banks, especially those experiencing strong demands for business loans, acted aggressively to increase the volume of large-denomination CD’s outstanding. System open market operations since the May 23 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 May-June period between 7.5 and 11.5 per cent and growth in the monetary aggregates at rates somewhat slower than those recorded earlier this year, while avoiding sharp day-to-day fluctuations and large cumulative changes in money market condi tions. It appeared at present that RPD’s would grow over the May-June period at a rate of about 7 per cent. The average Federal funds rate had been slightly below AVi per cent since the beginning of June, compared with about 4xk per cent in May. In the 4 weeks ending June 14 member bank borrowings had averaged about $115 million, approximately the same as in the preceding 5 weeks. As at its May meeting, the Committee agreed that the economic situation called for moderate growth in the monetary aggregates over the months ahead. After taking account of recent changes in deposits and the 2-week lag in reserve requirements, the Com mittee decided to seek growth in RPD’s at an annual rate in a range of 4.5 to 8.5 per cent during the June-July period while continuing to avoid sharp fluctuations and large cumulative changes in money market conditions. As before, it was recognized that pursuit of the objective for RPD’s 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 2Based on the change in the daily-average levels from March to May and from December to March. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
794 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 significantly from the rates expected, and that account should be taken of capital market developments and possible Treasury fi nancing. As at other recent meetings, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions 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: The information reviewed at this meeting, including recent data for such measures of business activity as industrial production, employment, and retail sales, suggests that real output of goods and services is growing at a faster rate in the current quarter than in the two preceding quarters, but the unemployment rate remains high. In May wholesale prices of farm and food products advanced appreciably—after having changed little in April—and the rise in prices of industrial commodities remained substantial. The most recent data suggest some moderation in the pace of advance in wage rates. The U.S. balance of payments has been in surplus in recent weeks on both the official settlements basis and the net liquidity basis. In April, however, the excess of merchandise imports over exports was even larger than in February and March. Some strains have developed in international financial markets recently, involving European currencies. Growth in the narrowly defined money stock slowed further in May, while growth in the broadly defined money stock stepped up somewhat as inflows of consumer-type time and savings deposits to banks expanded considerably; over the April-May period, growth in both measures of the money stock was well below the high rates in the first quarter of the year. The outstanding volume of large-denomination CD’s increased substantially further in May, and expan sion in the bank credit proxy remained rapid. In recent weeks, market interest rates have continued to fluctuate 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 possible Treasury financing and developments in capital markets, the Com mittee seeks to achieve bank reserve and money market conditions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 795 that will support moderate growth in the monetary aggregates over the months ahead. Votes for this action: Messrs. Burns, Brimmer, Bucher, Coldwell, Daane, Eastburn, MacLaury, Mitchell, Robertson, Sheehan, Winn, and Treiber. Votes against this action: None. Absent and not voting: Mr. Hayes. (Mr. Treiber voted as his alternate.) Subsequent to this meeting, on July 6, 1972, Committee members voted to amend this current economic policy directive by adding a reference to international developments in the final paragraph. As amended, that paragraph read as follows: To implement this policy, while taking account of possible Treasury financing, developments in capital markets, and interna tional developments, the Committee seeks to achieve bank reserve and money market conditions that will support moderate growth in monetary aggregates over the months ahead. Votes for this action: Messrs. Brimmer, Bucher, Coldwell, Daane, Eastburn, MacLaury, Robertson, Sheehan, Winn, and Treiber. Votes against this action: None. Absent and not voting: Messrs. Burns, Hayes, and Mitchell. (Mr. Treiber voted as Mr. Hayes’ alternate.) In the 3 days preceding this action, foreign central banks had acquired large amounts of dollars in the process of maintaining exchange rates for their currencies within the internationally agreed margins. The System Account Manager advised that, insofar as the investment of these and any additional funds that might be acquired by the foreign central banks took the form of purchases of U.S. Treasury bills in the market, they would tend to exert downward pressures on bill rates. In the interests of the U.S. balance of payments and international confidence in the dollar, the members decided that open market operations should be conducted with a view to avoiding significant declines in bill rates, insofar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
796 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 as that was consistent with the objectives agreed upon by the Committee on June 20, 1972. Specifically, it was decided that (1) to the extent feasible, reserve additions required to meet the Committee’s objectives should be made by means other than purchases of Treasury bills, and (2) foreign official demands for bills, if heavy, should be met to the extent feasible by sales of bills from the System’s portfolio, with any undesired reserve effects offset by other means. The members agreed that the directive should be amended to affirm the Committee’s intention to authorize such operations. In casting their affirmative votes, a number of members indicated that while they believed the authorization desirable they thought it should be used with restraint. Mr. Brimmer noted that he favored the action not only on the international grounds cited but also because he thought a significant decline in bill rates would have adverse domestic implications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department Statutes, regulations, interpretations, and decisions SECURITIES CREDIT TRANSACTIONS the same conditions to which it would be subject if it were a general account except that if the The Board of Governors, effective October 16, specialist’s exchange is a national securities ex 1972, has amended Regulation T, “Credit by change which requires and submits to the Board Brokers and Dealers,” and Regulation U, “Credit of Governors of the Federal Reserve System by Banks for the Purpose of Purchasing or Carry reports suitable for supplying current information ing Margin Stocks,” to exempt from margin re regarding specialist’s use of credit pursuant to this quirements certain credit extended to so-called paragraph (g), the requirements of § 220.6(b) “block positioners” and “third-market makers.” regarding joint ventures shall not apply to such Block positioners are securities firms that stand accounts and the maximum loan value of a regis ready to hold amounts of stock for their own tered security in such account (except a security account sufficient to facilitate the sale or purchase that has been identified as a security held for by their customers—primarily institutions—of investment pursuant to a rule of the Commissioner quantities too large to be absorbed by normal of Internal Revenue (Regs, section 1-1236-1(d))) exchange transactions. Third-market makers are shall be as determined by the creditor in good firms that make a market off the exchanges in faith. stocks that are listed for exchange trading. * * * * The amendments, which also apply new report ing requirements to exchange specialists, have AMENDMENTS TO REGULATION U been adopted simultaneously with registration and reporting requirements imposed by the Securities Effective October 16, 1972, §§ 221.3(a), (o), and Exchange Commission pertaining to the same (w)(l), and (y) are amended and § 221.3(z) is subject. added as set forth below; and footnote 9 in § 221.4 The text of the Board’s amendments reads as (the Supplement to Regulation U) is redesignated follows: as footnote 12: AMENDMENT TO REGULATION T SECTION 221.3—MISCELLANEOUS PROVISIONS Effective October 16, 1972, § 220.4(g) is amended to read as follows: (a) Required statement as to stock-secured credit. In connection with an extension of credit SECTION 220.4—SPECIAL ACCOUNTS secured directly or indirectly by any stock, the * * * * bank shall obtain and retain in its records for at (g) Specialist’s account. (1) In a special ac least 3 years after such credit is extinguished a count designated as a specialist’s account, a credi statement in conformity with the requirements of tor may effect and finance, for any member of a Federal Reserve Form U-l executed by the recipi national securities exchange who is registered and ent of such extension of credit (sometimes referred acts as a specialist in securities on the exchange, to as the “customer”) and executed and accepted such member’s transactions as a specialist in such in good faith by a duly authorized officer of the securities, or effect and finance, for any joint bank prior to such extension: Provided, That this venture in which the creditor participates, any requirement shall not apply to any credit described transactions in any securities of an issue with in paragraphs (o), (w), (x), (y), or (z) of this respect to which all participants, or all participants section or § 221.2 of this part except for credit other than the creditor, are registered and act on described in paragraphs 221.2(f), (g), and (h) a national securities exchange as specialists. extended to persons who are not brokers or dealers (2) Such specialist’s account shall be subject to subject to Part 220 of this Chapter (Regulation T). 797 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
798 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 In determining whether or not an extension of That the bank shall obtain and retain in its records credit is for the purpose specified in § 221.1 or for at least 3 years after such credit is extinguished for any of the purposes specified in § 221.2 or a statement in conformity with the requirements this section the bank may rely on the statement of Federal Reserve Form U-2, executed by the executed by the customer if accepted in good faith. OTC market maker who is the recipient of such To accept the customer’s statement in good faith, credit and executed and accepted in good faith9 the officer must (1) be alert to the circumstances by a duly authorized officer of the bank prior to surrounding the credit and (2) if he has any in such extension. In determining whether or not an formation which would cause a prudent man not extension of credit is for the purpose of conducting to accept the statement without inquiry, have in such market-making activity, a bank may rely on vestigated and be satisfied that the customer’s such a statement if executed and accepted in ac statement is truthful. cordance with the requirements of this paragraph * * * * (w) and paragraph (a) of this section. * * * * (o) Specialist. In the case of credit extended (y) Third-market maker exemption. (1) In the to a member of a national securities exchange who case of credit extended to a third-market maker, is registered and acts as a specialist in securities as defined in subparagraph (2) of this paragraph on the exchange for the purpose of financing such (y), for the purpose of purchasing or carrying a member’s transactions as a specialist in such se stock that is registered on a national securities curities, the maximum loan value of any stock exchange (other than a convertible debt security (except stock that has been identified as a security described in paragraph (t) (1) of this section) in held for investment pursuant to a rule of the order to conduct the market-making activity of Commissioner of Internal Revenue (Regs, section such a market maker, the maximum loan value 1-1236-1(d))) shall be as determined by the bank of any stock (except (i) a convertible debt security in good faith: Provided, That the specialist’s ex described in paragraph (t) (1) of this section, and change is a national securities exchange which (ii) stock that has been identified as a security held requires and submits to the Board of Governors for investment pursuant to a rule of the Commis of the Federal Reserve System reports suitable for sioner of Internal Revenue (Regs, section 1-1236supplying current information regarding special 1(d))) shall be determined by the bank in good ists’ use of credit pursuant to this section. faith: Provided, That in respect of each such stock * * * * he shall, at least five full business days prior to such extension of credit, have filed with the Se (w) OTC market maker exemption. (1) In the curities and Exchange Commission a notice of his case of credit extended to an OTC market maker, intent to begin or continue such market-making as defined in subparagraph (2) of this paragraph activity, and thereafter all other reports required (w), for the purpose of purchasing or carrying an to be filed by third-market makers pursuant to a OTC margin stock in order to conduct the marketrule of the Securities and Exchange Commission making activity of such a market maker, the and, except when such activity is unlawful, shall maximum loan value of any OTC margin stock not have ceased to engage in such market-making (except stock that has been identified as a security activity: And provided further, That the bank shall held for investment pursuant to a rule of the obtain and retain in its records for at least 3 years Commissioner of Internal Revenue (Regs, section after such credit is extinguished a statement in 1-1236-1(d))) shall be determined by the bank in conformity with the requirements of Federal Re good faith: Provided, That in respect of each such serve Form U-3, executed by the third-market stock the OTC market maker shall have filed with maker who is the recipient of such credit and the Securities and Exchange Commission a notice executed and accepted in good faith10 by a duly of his intent to begin or continue such marketauthorized officer of the bank prior to such exten making activity (Securities and Exchange Com sion. In determining whether or not an extension mission Form X-17A-12 (1)) and all other reports of credit is for the purpose of conducting such required to be filed by market makers in OTC market-making activity, a bank may rely on such margin stock pursuant to a rule of the Commission a statement, if executed and accepted in accor- (Rule 17a-12(17 CFR 240.17a-12)), shall not have ceased to engage in such market-making activity, and shall have a reasonable average rate of inven 9As described in paragraph (a) of this section. tory turnover in such stock: And provided further, 10As described in paragraph (a) of this section. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 799 dance with the requirements of this paragraph (y) tioners: And provided further, That the bank shall and paragraph (a) of this section. obtain and retain in its records for at least 3 years (2) A third-market maker with respect to a stock after such credit is extinguished a statement in that is registered on a national securities exchange conformity with the requirements of Federal Re is a dealer who has and maintains net capital, as serve Form U-5 and paragraph (a) of this section, defined in a rule of the Securities and Exchange executed by the block positioner who is the recip Commission (Rule 15c3-l (17 CFR 240.15c3-l)), ient of such credit and executed and accepted in or in the capital rules of an exchange of which good faith11 by a duly authorized officer of the he is a member if the members thereof are exempt bank prior to such extension. In determining therefrom by Rule 15c3-1(b)(2) of the Commission whether or not an extension of credit is for the (17 CFR 240.15c3-l(b)(2)), of $100,000 plus purpose of conducting such block positioning ac $20,000 for each stock in excess of five in respect tivity, a bank may rely on such a statement if of which he has filed and not withdrawn a notice executed and accepted in accordance with the with the Securities and Exchange Commission (but requirements of this paragraph (z) and paragraph in no case does this subparagraph (2) require net (a) of this section. In determining whether or not capital of more than $500,000) who is in compli an extension of time has been granted pursuant ance with such rule of the Commission and who, to subparagraph (4) of this paragraph (z) and except when such activity is unlawful, meets all whether or not such extension of time is commen the following conditions with respect to such surate with the circumstances the bank may rely stock: (i) He furnishes bona fide, competitive bid on a statement executed by an officer of the ex and offer quotations to other brokers and dealers, change or association on behalf of the committee in the stocks for which he makes a market, at all in conformity with the requirements of Federal times on request, (ii) he is ready, willing, and able Reserve Form U-6 and paragraph (a) of this sec to effect transactions for his own account in reas tion. onable amounts, and at his quoted prices, with (2) A block positioner is a dealer who (i) is other brokers and dealers, and (iii) he has a reas registered with the Securities and Exchange Com onable average rate of inventory turnover in the mission under section 15 of the Securities Ex stock. change Act of 1934 (15 U.S.C. 78o) and has a (3) If all or a portion of the credit extended minimum net capital, as defined in a rule of the pursuant to this paragraph (y) ceases to be for the Securities and Exchange Commission (Rule 15c3purpose specified in subparagraph (1) of this para 1 (17 CFR 240.15c3-l)) or in the capital rules graph or the dealer to whom the credit is extended of an exchange of which he is a member if the ceases to be a third-market maker as defined in members thereof are exempt therefrom by Rule subparagraph (2) of this paragraph, the credit or 15c3-l(b)(2) of the Commission (17 CFR such portion thereof shall thereupon be treated as 240.15c3- 1(b)(2)), of $1 million, (ii) engages in “a credit subject to § 221.1.” the activity of purchasing long or selling short as principal, from time to time, from or to a customer (z) Block positioner exemption. (1) In the case (other than a partner or a joint venture or other of credit extended to a block positioner, as defined entity in which a partner of the dealer, or the dealer in subparagraph (2) of this paragraph (z), for the itself, participates or a person “associated with” purpose of financing the activity of block posi such dealer as defined in section 3(a)(18) of the tioning, the maximum loan value of any margin Securities Exchange Act of 1934) a block of stock stock obtained in the ordinary course of the activity (other than a convertible debt security as described of block positioning as described in subparagraph in paragraph (t)(l) of this section) with a current (2) of this paragraph (z) (except (i) a convertible market value of $200,000 or more in a single debt security described in paragraph (t) (1) of this transaction or in several transactions at approxi section and (ii) stock that has been identified as mately the same time from a single source to a security held for investment pursuant to a rule facilitate a sale or purchase by such customer, (iii) of the Commissioner of Internal Revenue (Regs, certifies to the lending bank that he has determined section 1-1236-1 (d))) shall be determined by the in the exercise of reasonable diligence that the bank in good faith: Provided, That in respect of block could not be sold to or purchased from others such activity he shall have filed with the Securities on equivalent or better terms, and (iv) sells the and Exchange Commission a notice of undertaking such activity as prescribed by the Commission, and all reports required to be filed by block-posi- 11 As described in paragraph (a) of this section. 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800 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 shares comprising such block as rapidly as possible company and its subsidiaries The Board regards commensurate with the circumstances. In the case the sale of group insurance for the protection of where a block positioner acquires a block from employees of the holding company as insurance a broker who acts as agent for several sellers, such for the holding company and its subsidiaries. acquisition shall be deemed for purposes of this § 225.4(a)(9)(ii)(d): Insurance “directly re section to be an acquisition from a single source. lated to an extension of credit by a bank or a (3) No credit shall be extended or maintained bank-related firm”. (1) This provision is designed pursuant to this paragraph (z) in respect of any to permit the sale, by a bank holding company such block of stock or portion thereof which the system, of insurance that supports the lending block positioner has held continuously for more transactions of a bank or bank-related firm in the than 20 business days, and any credit extended holding company system. The Board regards the pursuant to this paragraph (z) shall be extinguished sale of insurance as directly related to an extension or brought into conformity with the initial margin of credit by a bank or bank-related firm where (i) requirements of §§ 221.1 and 221.4 before the the insurance assures repayment of an extension expiration of such 20-day period. For the purposes of credit by the holding company system in the of this subparagraph, a block or portion thereof event of death or disability of the borrower (for shall be treated as not having been held continu example, credit life and credit accident and health ously only to the extent that there has been a net insurance); or (ii) the insurance protects collateral sale (or in the case of short positions, net purchase) in which the bank or bank-related firm has a of such securities (whether or not represented by security interest as a result of its extension of the same certificate) during such 20-day period. credit; or (iii) the insurance is other insurance (4) In exceptional cases the 20-day period which is sold to individual borrowers in conjunc specified in subparagraph (3) of this paragraph (z) tion with or as part of an insurance package (as may on the application of the block positioner, be a matter of general practice) with insurance pro extended for one or more periods limited to 5 tecting the collateral in which a bank or bankbusiness days each commensurate with the cir related firm has a security interest as a result of cumstances by any regularly constituted committee its extension of credit. Examples that fall within of a national securities exchange having juris (iii) above are: (a) liability insurance sold in diction over the business conduct of its members, conjunction with insurance relating to physical of which the block positioner is a member or damage of an automobile when the purchase of through which his block transaction was effected, such automobile is financed by a bank or bankor by a committee of a national securities associa related firm; and (b) a homeowner’s insurance tion, if effected in the over-the-counter market: policy with respect to a residence mortgaged to Provided, That such committee is satisfied that the a bank or bank-related firm. block positioner is acting in good faith in making (2) Other types of insurance may be directly the application and that the circumstances in fact related to an extension of credit. A bank holding warrant such treatment. company applying to engage in the sale of such other types should furnish information showing that such insurance is so directly related. BANK HOLDING COMPANIES (3) A renewal of insurance, after the credit INSURANCE AGENCY ACTIVITIES extension has been repaid, is regarded as closely related to banking only to the extent that such Effective September 1, 1971, the Board of renewal is permissible under § 225.4(a)(9)(ii)(c) Governors amended § 225.4(a) of Regulation Y of Regulation Y. to add specified insurance agency activities to the (4) The Board generally regards insurance pro list of activities the Board has determined to be tecting collateral where the security interest of a so closely related to banking or managing or bank or bank-related firm was obtained by pur controlling banks as to be a proper incident chase rather than by a direct extension of credit thereto. In the course of administering this regula by the holding company system as not being tion, a number of questions have arisen concerning directly related to an extension of credit by a bank the scope and terms of the Board’s regulation. The or bank-related firm. However, if such security Board’s views on some of these questions are set interests are purchased on a continuing basis from forth below. a firm or an individual and the interval between § 225.4(a)(9)(i): Insurance “for the holding the creation of the security interest and its subse Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 801 quent purchase is minimal, the Board may regard of the credit extension, provided that the mortga such purchase as an extension of credit. Full gee is a beneficiary under such types of insurance details of the transactions should be provided to policies; and (v) insurance directly related to the support a holding company’s contention that such provision of trust services if the sale of such insurance sales are directly related to an extension insurance is permitted by the trust instruments and of credit. under State law. § 225.4(a)(9)(ii)(b): Insurance “directly re § 225.4(a)(9)(ii)(c): Insurance that “is other lated to the provision of other financial services wise sold as a matter of convenience to the pur by a bank or . . . bank-related firm”. This provi chaser, so long as the premium income from sales sion is designed to permit the sale by a bank within . . . subdivision (ii)(c) does not constitute a holding company system of insurance in connec significant portion of the aggregate insurance pre tion with bank-related services (rendered by a mium income of the holding company from insur member of the holding company system) other ance sold pursuant to .. . subdivision (ii)”. than an extension of credit. Among the types of (1) This provision is designed to permit the sale insurance the Board regards as directly related to of insurance as a matter of convenience to the such services are: (i) insurance against loss of purchaser. It is not designed to permit entry into securities held for safekeeping; (ii) insurance for the general insurance agency business. valuables in a safe deposit box; (iii) life insurance (2) The term “premium income” means gross equal to the difference between the maturity value commission income. of a deposit plan for periodic desposits over a (3) The Board generally will regard premium specified term and the balance in the account at income attributable to “convenience” sales as not the time of the depositor’s death; (iv) in connection constituting a “significant portion” if the income with mortgage loan servicing that is provided by attributable to “convenience” sales is less than a bank or bank-related firm, insurance on the 5 per cent of the aggregate insurance premium mortgaged property and/or insurance on the income of the holding company system from in mortgagor to the extent of the outstanding balance surance sold pursuant to § 225.4(a)(9)(ii). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
802 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ORDERS UNDER SECTION 3(a) of Competitive considerations are consistent with ap BANK HOLDING COMPANY ACT proval of the application. The financial and managerial resources and fu FIRST CITY BANCORPORATION ture prospects of Applicant and its subsidiary OF TEXAS, INC., banks are regarded as generally satisfactory. HOUSTON, TEXAS Applicant proposes to provide additional capital to Bank and to strengthen management. Banking considerations lend weight for approval of the Order Approving Acquisition of Bank application. Applicant proposes to enable Bank to First City Bancorporation of Texas, Inc., Hous provide expertise in petroleum financing. Consid ton, Texas, a bank holding company within the erations relating to the convenience and needs of meaning of the Bank Holding Company Act, has the community to be served are consistent with applied for the Board’s approval under section approval. It is the Board’s judgment that the 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac proposed transaction is in the public interest and quire an additional 29.7 per cent of the voting that the application should be approved. shares of United Bank Shares, Inc., El Paso, Texas On the basis of the record the application is (“United”), a holding company owning 100 per approved for the reasons summarized above. The cent (less directors’ qualifying shares) of the shares transaction shall not be consummated (a) before of Southwest National Bank of El Paso, El Paso, the thirtieth calendar day following the effective Texas (“Bank”). Applicant presently owns 24.5 date of this Order or (b) later than three months per cent of United.. after the effective date of this Order, unless such Notice of receipt of the application has been period is extended for good cause by the Board given in accordance with section 3(b) of the Act. or by the Federal Reserve Bank of Dallas pursuant Time for filing comments and views has expired. to delegated authority. The Board has considered the application and all By order of the Board of Governors, effective comments received in the light of the factors set July 28, 1972. forth in section 3(c) of the Act (12 U.S.C. Voting for this action: Chairman Burns and Governors 1842(c)). Robertson, Mitchell, Brimmer, and Sheehan. Absent and not Applicant, the third largest banking organization voting: Governors Daane and Bucher. in Texas, controls eight banks with aggregate (Signed) Tynan Sm ith, deposits of approximately $1.5 billion, represent [seal] Secretary of the Board. ing about 4.9 per cent of deposits in commercial banks in the State.1 Consummation of the proposal RIBSO, INC., would increase Applicant’s share of deposits by ROCK ISLAND, ILLINOIS only .2 percentage points and would not result in a significant increase in the concentration of bank Order Approving Acquisition of Bank ing resources in Texas. Ribso, Inc., Rock Island, Illinois, a bank hold Bank (about $75 million in deposits) is the third ing company within the meaning of the Bank largest of 12 banking organizations in the El Paso Holding Company Act, has applied for the Board’s area and controls approximately 11 per cent of approval under § 3(a)(3) of the Act (12 U.S.C. deposits there. However, two larger organizations 1842(a)(3)) to retain ownership of 2.276 per cent dominate El Paso with each controlling about 36 of the voting shares of Rock Island Bank and Trust per cent of deposits in the area. As the Board Company, Rock Island, Illinois (“Bank”).1 recognized in its earlier Order approving Appli Notice of the application, affording opportunity cant’s acquisition of 24.5 per cent of the voting for interested persons to submit comments and shares of United Bank (1972 Federal Reserve views, has been given in accordance with § 3(b) B u lletin 295), the acquisition of Bank by of the Act. The time for filing comments and views Applicant eventually may lead to some decon has expired, and the Board has considered the centration in the El Paso area through the intro duction of a strong effective organization that *On June 22, 1971, the Board ordered that any company which acquired an interest in a bank between December 31, competes with the two dominant organizations. 1970, and June 22, 1971, without first securing prior Board approval because of lack of knowledge of that requirement *A11 banking data are as of December 31, 1971 and reflect might file for such approval by August 31, 1971, unless such bank holding company formations and acquisitions approved time was extended for good cause. The application herein was by the Board through June 30, 1972. filed pursuant to the Board’s June 22, 1971, Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 803 application and all comments received in light of The Farmers State Bank of McClure, Ohio, Mc the factors set forth in § 3(c) of the Act (12 U.S.C. Clure, Ohio (“Bank”). 1842(c)). Notice of the application, affording opportunity As a result of the enactment of the 1970 for interested persons to submit comments and Amendments to the Bank Holding Company Act, views, has been given in accordance with § 3(b) Applicant became a bank holding company by of the Act. The time for filing comments and views operation of law on December 31, 1970, because has expired, and none has been timely received. it then owned 23.1 per cent of the voting shares The Board has considered the application in light of Bank and controlled the election of a majority of the factors set forth in § 3(c) of the Act (12 of Bank’s directors. Subsequently, during the first U.S.C. 1842(c)). six months of 1971, Applicant acquired an addi Applicant controls four banks with deposits of tional 2.276 per cent of the voting shares of Bank $18.7 million, representing .08 per cent of aggre without the prior approval of the Board as required gate deposits of commercial banks in Ohio. (All by § 3(a)(3) of the Act. The proposal herein is banking data are as of December 31, 1971, and for the Board’s approval to retain the shares so reflect holding company formations and acquisi acquired. tions approved through May 31, 1972.) The ac Applicant, organized in 1955, is principally quisition of Bank with deposits of $6.3 million engaged in the ownership of shares of Bank and would not appreciably increase the concentration Bank’s premises, and has no other banking subsi of banking resources in any relevant area, and diaries. Bank ($59.1 million deposits) is the sec Applicant would retain its rank as the smallest ond largest of three banks in Rock Island, a bank holding company in the State. community 160 miles west of Chicago. (Banking Bank serves Henry County in the northwestern data are as of December 31, 1971.) Approval of part of Ohio. There are six banks headquartered Applicant’s proposal would not result in the elim in the county with deposits ranging from $4.5 ination of either existing or potential competition, million to $22.4 million. Bank controls 11.6 per nor does it appear that there would be any adverse cent of county deposits and is the third largest of effects on any bank in the area. these banks. Consummation of the proposal should The financial and managerial resources and fu have no adverse effects on any of the competing ture prospects of Applicant and Bank are regarded banks. as satisfactory and consistent with approval of the The closest offices of Applicant and Bank are application. Approval of the proposal would have 78 miles apart, and no significant present com no effect on convenience and needs of the com petition exists between any of these offices. In munity. It is the Board’s judgment that the ap addition, there does not appear to be any potential plication should be approved. for the development of future competition between On the basis of the record, the application is the two institutions, due to the distances separating approved for the reasons summarized above. their offices, the location of numerous intervening By order of the Board of Governors, effective banks, and the restrictions placed on branching by August 1, 1972. State laws. Voting for this action: Chairman Burns and Governors The financial and managerial resources of Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent Applicant, its subsidiary banks, and Bank are and not voting: Governor Bucher. considered to be generally satisfactory, and pros (Signed) Tynan Sm ith, pects for the group appear favorable. Therefore, [seal] Secretary of the Board. considerations relating to the banking factors are consistent with approval of the application. Appli AMERICAN BANCORPORATION, cant proposes to expand and improve the present COLUMBUS, OHIO services offered by Bank to include specialized consumer and business loan programs. Although Order Approving Acquisition of Bank the major banking needs of the area are being American Bancorporation, Columbus, Ohio, a served at the present time, Applicant’s assistance bank holding company within the meaning of the to Bank in loan participation with other affiliates, Bank Holding Company Act, has applied for the and in training and management planning would Board’s approval under § 3(a)(3) of the Act (12 better serve the convenience and needs of the U.S.C. 1842(a)(3)) to acquire 100 per cent of the communities. Considerations under this factor are voting shares (less directors’ qualifying shares) of consistent with approval of the application. It is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
804 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 the Board’s judgment that consummation of the has expired, and the Board has considered the proposed acquisition would be in the public inter application and all comments received in light of est and that the application should be approved. the factors set forth in § 3(c) of the Act (12 U.S.C. On the basis of the record, the application is 1842(c)). approved for the reasons summarized above. The On the basis of the record, the application is transaction shall not be consummated (a) before approved for the reasons set forth in the Board’s the thirtieth calendar day following the effective Statement of this date. The transaction shall not date of this order or (b) later than three months be consummated (a) before the thirtieth calendar after the effective date of this Order, unless such day following the effective date of this Order or period is extended for good cause by the Board, (b) later than three months after the effective date or by the Federal Reserve Bank of Cleveland of this Order, unless such period is extended for pursuant to delegated authority. good cause by the Board or by the Federal Reserve By order of the Board of Governors, effective Bank of Chicago pursuant to delegated authority. August 3, 1972. By order of the Board of Governors, effective August 3, 1972. Voting for this action: Chairman Burns and Governors Robertson, Brimmer, Sheehan, and Bucher. Absent and not Voting for this action: Chairman Burns and Governors voting: Governors Mitchell and Daane. Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: (Signed) Tynan Smith, Governor Bucher. [seal] Secretary of the Board. (Signed) Tynan Smith, [seal] Secretary of the Board. MICHIGAN NATIONAL CORPORATION, LANSING, MICHIGAN Statement Order Approving Formation of Bank Michigan National Corporation, Lansing, Holding Company Michigan (“Applicant”), has filed with the Board, Michigan National Corporation, Lansing, pursuant to section 3(a)(1) of the Bank Holding Michigan, has applied for the Board’s approval, Company Act of 1956, an application for approval under § 3(a)(1) of the Bank Holding Company Act of action to become a bank holding company (12 U.S.C. 3(a)(l));, of formation of a bank hold through the acquisition of 80 per cent or more of ing company through the acquisition of 80 per cent the voting shares of each of the following five or more of the voting shares of each of the fol Michigan banks: Michigan National Bank, Lans lowing five Michigan banks: Michigan National ing (“Michigan National”); Michigan Bank, Bank, Lansing; Michigan Bank, N.A., Detroit; N.A., Detroit (“Michigan Bank”); Livonia Na Livonia National Bank, Livonia; Troy National tional Bank, Livonia (“Livonia Bank”); Troy Bank, Troy; and Oakland National Bank, South National Bank, Troy (“Troy Bank”); and Oakland field. As a result of its acquisition of Michigan National Bank, Southfield (“Oakland Bank”). By National Bank, Applicant would also acquire in virtue of acquisition of Michigan National, Appli direct control of less than 25 per cent but more cant would acquire also indirect control of voting than 5 per cent of the outstanding voting shares shares of each of seven other Michigan banks as of each of seven Michigan banks as follows: follows: 24.1 per cent of the shares of Central Central Bank, Grand Rapids (24.1 per cent); Val Bank, Grand Rapids (“Central Bank”); 24.9 per ley National Bank of Saginaw, Saginaw (24.9 per cent of the shares of Valley National Bank of cent); Security National Bank of Manistee, Man Saginaw, Saginaw (“Valley National”); 23.4 per istee (23.4 per cent); First National Bank of East cent of the shares of Security National Bank of Lansing, East Lansing (13.8 per cent); First Na Manistee, Manistee (“Security Bank”); 13.8 per tional Bank of Wyoming, Wyoming (23.3 per cent of the shares of First National Bank of East cent); Central National Bank of Alma, Alma (18.8 Lansing, East Lansing (“East Lansing Bank”); per cent); and St. Clair Shores National Bank, St. 23.3 per cent of the shares of First National Bank Clair Shores (10 per cent). of Wyoming, Wyoming (“Wyoming Bank”); Notice of the application, affording opportunity 18.8 per cent of the shares of Central National for interested persons to submit comments and Bank of Alma, Alma (“Alma Bank”); and 10 per views, has been given in accordance with § 3(b) cent of the shares of St. Clair Shores National of the Act. The time for filing comments and views Bank, St. Clair Shores (“St. Clair Shores Bank”). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 805 The described shares of the latter seven banks are those six markets is as follows: first of the nine held in trust by the Michigan National Bank Profit banks in the Lansing market; third of the fifteen Sharing Trust for the benefit of employees of banks in the Grand Rapids market; second of the Michigan National and, pursuant to § 2(g)(2) of six banks in the Saginaw market; third of the seven the Act, Michigan National is deemed to control banks in the Flint market; first of the six banks such shares; by virtue of § 2(g)(1) of the Act, in the Port Huron market; and first of the seven Applicant will be deemed to control such shares banks in the Battle Creek market. It appears that upon its acquisition of control of Michigan Na consummation of the proposal would not eliminate tional. any significant existing competition between Statutory considerations. Applicant is a re Michigan National and any of the other four cently-organized corportion formed for the pur proposed direct subsidiaries, all of which are lo pose of becoming a multi-bank holding company cated in the Detroit metropolitan area. Further, on through the direct acquisition of voting shares of the facts of record, particularly in view of the each of five banks. As an incident to the acquisi intervening distances between Michigan National tion of one of those banks, control of less than and any of the other banks (the closest offices are 25 per cent but more than 5 per cent of the voting 57 miles apart), the number of available banking shares of seven other Michigan banks would be alternatives, the common ownership of the five attributed to Applicant. The proposal is essentially banks, the sizes of the banks involved, and the a corporate reorganization inasmuch as the restrictions of Michigan branching law, it appears proposed five direct subsidiary banks are, and have that no significant potential competition between been, closely affiliated for several years through Michigan National and any of the other four common ownership by ten families and by profit proposed direct subsidiaries would be precluded sharing trusts established at each of the five banks. by consummation of the proposal. Each of the five banks has established a profit Michigan Bank ($730 million deposits), head sharing trust for the benefit of its employees, quartered in downtown Detroit with an additional which, in each case, has invested in the stock of twenty-six branches in the Detroit area, is the sixth its own bank and the stock of certain of the other largest bank in the State and the fifth largest of proposed subsidiaries. The five banks have been forty-nine banks located in the Detroit banking operated as a unified banking group for several market, approximated by the three county Detroit years with common directors and interchanging SMSA, and holds 5.8 per cent of deposits in that management. Upon acquisition of the shares of market. Livonia Bank ($70.7 million deposits), the five banks, Applicant would control approxi located in a suburb two miles west of Detroit, mately 9.3 per cent ($2.03 billion) of the total operates six branches in Livonia, and is the six deposits held by commercial banks in Michigan teenth largest bank in the Detroit market with .6 and would become the second largest banking per cent of deposits in the market. Troy Bank organization and the largest bank holding company ($57.2 million deposits), located in a suburb six in Michigan on the basis of deposits. (Unless miles north of Detroit, operates seven branches otherwise indicated, all banking data are as of June in Troy, and is the nineteenth largest bank in the 30, 1971, adjusted to reflect holding company Detroit market with .5 per cent of deposits in the formations and acquisitions approved by the Board market. Oakland Bank ($56.3 million deposits), to date.) The largest banking organization in located in a suburb just northwest of Detroit, Michigan would still be almost twice the size of operates four branches in Southfield, and is the Applicant and there are two other banking organi twenty-first largest bank in the Detroit market with zations comparable in size to Applicant. approximately .5 per cent of deposits in the mar Michigan National ($1.1 billion deposits), ket. which holds 5.1 per cent of the total commercial It appears that consummation of the proposal bank deposits in the State, is located in Lansing would not have any significant adverse effects on 85 miles northwest of Detroit and is the fourth competition in the Detroit banking market. As largest bank in Michigan and the largest bank indicated above the four banks have been closely outside of the Detroit area. Michigan National is affiliated and have been operated as part of the represented in six banking markets, and has a total Michigan National banking group for several of twenty-five offices located throughout southern years. Individuals associated with Michigan Na Michigan. On the basis of deposits, Michigan tional purchased a substantial interest in Michigan National’s ranking among the banks operating in Bank in 1955. Subsequently, Troy Bank and Oak Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
806 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 land Bank were organized de novo with the assis that Applicant will be permitted to acquire direct tance of Michigan National and Michigan Bank or indirect control of any additional shares of any in 1962 and 1965, respectively, and the common of said banks. Any proposal for the acquisition ownership in Livonia Bank dates back to 1963 of additional shares of any of said banks will be when the bank had only $12 million in deposits. judged on the basis of the competitive circum Since the inception of the ownership interest in stances and all other relevant facts involved in the the three suburban banks, the management of all particular proposal. three has been supplied by Michigan National and On the basis of the record before it, the Board Michigan Bank and all three have been operated concludes that consummation of the proposal in as part of the banking group. On the basis of the volving the direct acquisition of the five banks and facts herein, notably the origin and closeness of the indirect acquisition of less than 25 per cent the existing relationships and the unlikelihood that of seven banks would not substantially lessen the banks would become disaffiliated in the fore competition in any relevant area nor have a signif seeable future, the Board concludes that con icantly adverse effect on existing competition, nor summation of the proposal would not have any foreclose the development of significant potential significant adverse effects on existing or potential competition in any relevant area. competition among the four Detroit area banks. The managerial resources of Applicant and each Because of its acquisition of Michigan National, of its proposed subsidiaries are regarded as satis Applicant will acquire also indirect control of factory and consistent with approval of the ap certain shares (in each instance, less than 25 per plication. During consideration of the subject ap cent) of each of seven other Michigan banks pres plication, Applicant was notified by the Board of ently held by the Michigan National Profit Sharing its serious concern over what it considered to be Trust (“indirect banks”). Neither Manistee Bank the inadequate capital positions of the proposed nor Alma Bank nor St. Clair Shores Bank operates subsidiary banks, especially Michigan National in any meaningful way in a market served by and Michigan Bank, and of the Board’s view that Michigan National or any of the other proposed the capital position of each of the banks should subsidiaries. Through its profit sharing trust, be improved without delay. Michigan National was instrumental in organizing In response to the Board’s concern in this area, East Lansing Bank (1955), Valley National Bank Applicant has proposed a capital improvement (1959), and Wyoming Bank (1960); and Michigan program that would immediately increase the cap National acquired its interest in Central Bank over ital funds of the five subsidiary banks by $45.8 ten years ago. Notwithstanding the origin of the million and by December 31, 1973, would in interests of the profit sharing trust in the indirect crease the capital by over $80 million. The capital banks that are located in the areas of Grand improvement program includes the sale of $32 Rapids, Saginaw, and East Lansing, the relation million in convertible debentures by Applicant ship of Michigan National to said indirect banks ($30 million of which will be used to exercise is a matter of concern to the Board inasmuch as preemptive rights to purchase additional common offices of Michigan National serve these areas. The stock of the proposed subsidiaries), the sale of Board notes that in each of the areas of Grand $15.8 million in capital notes by Michigan Na Rapids and Saginaw a larger banking organization tional and Michigan Bank, and a dividend reten holds more than twice the deposits held by Michi tion program that will increase significantly the gan National and, in the Lansing market, East capital position of each of the proposed subsi Lansing Bank is one of the smallest banks and diaries. In addition, Applicant’s capital improve holds less than 2 per cent of the deposits there. ment program includes the sale of $10 million of It appears that there is no adverse competitive equity securities by December 31, 1973.2 Execu consideration serious enough to warrant denial of tion of this capital improvement program would the application. Moreover, the order herein does strengthen the financial condition of Applicant and not constitute a determination that any of said its proposed subsidiaries and enhance the prospects indirect banks is or may become a subsidiary of Applicant;1 nor is the order herein any indication 2The Board recognizes that the condition of the market for equity securities may present a serious impediment to a xOf course, the determination herein does not preclude the proposed sale of equity securities and that a reasonable delay Board from determining that the Applicant exercises a control beyond the projected period may be warranted. However, such ling influence over the management or policies of any of the delay will be warranted only if the Board is satisfied that a seven so-called indirect banks within the meaning of § substantially significant deterioration below present market 2(a)(2)(C) of the Act. levels has taken place in the market for equity securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 807 of the group substantially. The significant in priateness of such investments by such a trust, we creases that will be made in the capital account are adamantly opposed to sanctioning the employ of each of the subsidiary banks as a result of the ment of such a device to further the interests of program to which Applicant is committed and the a parent bank (the creator of the trust), especially fact that Applicant is likely to have better access when the result is both to enlarge that bank’s share to capital markets than any of the individual banks of the market and stifle competition. lend weight for approval of the application. The record shows beyond any doubt that there Consummation of the proposal would not have is potential if not actual competition between each any immediate effects on the convenience and of the four above-mentioned banks and Michigan needs of the communities served by the proposed National Bank, the largest of Applicant’s proposed subsidiaries. However, reorganization of the own subsidiaries. In the Lansing market, where Michi ership of the banks into the corporate structure of gan National Bank is by far the largest bank with a holding company should provide the operational over 43 per cent of the deposits, First National flexibility that would enable the holding company Bank of East Lansing ranks seventh and holds to assist the subsidiary banks in improving and about 2 per cent of the deposits. In the Saginaw expanding their services. Considerations relating market, where Michigan National Bank is the to the convenience and needs of the communities second largest bank with about 23 per cent of the are consistent with approval of the application. deposits, Valley National Bank ranks fourth and Summary and conclusion. On the basis of all holds about 7 per cent of the deposits. In the Grand relevant facts contained in the record, and in light Rapids market, where Michigan National Bank is of the factors set forth in section 3(c) of the Act, the third largest bank with about 18 per cent of it is the Board’s judgment that the proposed trans the deposits, Central Bank and First National Bank action would be in the public interest, and that of Wyoming rank fourth and sixth, respectively, the application should be approved. and hold, in the aggregate, about 4 per cent of the deposits. In each instance, the service area of Dissenting Statement of Governors Michigan National Bank overlaps that of one of Robertson and Brimmer We would approve the formation of a holding the four banks. In our view, the evidence reflects company to control the five direct subsidiary meaningful potential—if not actual—competition banks, now that steps have been taken or will be which would be foreclosed to the detriment of the taken to augment their capital structures. How public interest. Consummation of Applicant’s ever, the proposal before the Board involves not proposal would tend to eliminate competition and only the direct acquisition of five banks but also, to preclude the development of potential competi as a result of investments of the Michigan National tion by rendering less likely the prospect of disas- Bank’s profit sharing trust, the indirect acquisition sociation of the four banks from the Michigan of interests in each of seven other Michigan banks. National group. With respect to four of the seven banks, namely, In view of Michigan National Bank’s already First National Bank of East Lansing, Valley Na significant position in the Lansing, Saginaw, and tional Bank, Central Bank, and First National Grand Rapids markets, we consider that the public Bank of Wyoming, we consider the effects of this interest will not be served by approving Appli acquisition on competition to be adverse. cant’s indirect interest in four banks that are in The profit sharing trust just mentioned, a crea competition with Applicant’s principal subsidiary. ture of Michigan National Bank established for the Instead, competition would be enhanced, and the benefit of its employees, purchased and holds stock public interest served, by withholding approval of (ranging from 10 per cent to 24.9 per cent of the the application until Applicant persuades the profit voting shares) of seven banks other than the five sharing trust to divest itself of its interests in the direct subsidiaries.1 While we doubt the appro four banks. In the alternative, approval of the application should be so conditioned as to give 1 Additional shares in some of the seven banks were acquired Applicant a reasonable period of time after forma by individual members of the ten families that control the Michigan National Bank, thus strengthening the control or tion of the holding company within which to influence over such banks by the Michigan National Bank. accomplish the divestiture of the four banks. As a matter of fact, Michigan National Bank is represented While we realize that (as intimated in the ma on the Board of Directors of five of those seven banks. And to fill in part of the rest of the picture, each of the five direct jority’s opinion) divestiture of the stock of these subsidiary banks has its own profit sharing trust for the benefit four banks (or possibly the stock of all seven of of employees, each of which holds stock of some or all of those five banks. the banks) held by the profit sharing trust could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
808 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 be required as a condition to the approval of future tive branching laws and the relatively static eco applications to expand, we believe that in fairness nomic conditions in Bank’s market. to all parties and in the interests of sound bank The financial and managerial resources and fu supervision the issue should be faced and settled ture prospects of Applicant, its subsidiaries and now, at the outset of the formation of the holding Bank are generally satisfactory and consistent with company rather than at some uncertain date in the approval of the application. In addition, it is ex future. pected that Applicant’s acquisition of Bank will add depth to the management of Bank. Although WORCESTER BANCORP, INC., there is no evidence that the banking needs of the WORCESTER, MASSACHUSETTS communities involved are not being adequately met at present, Applicant expects to offer, through Order Approving Acquisition of Bank Bank, a broader range of financial services to Worcester Bancorp, Inc., Worcester, Mas Bank’s customers. Considerations relating to the sachusetts, a bank holding company within the convenience and needs of the communities to be meaning of the Bank Holding Company Act, has served are, therefore, consistent with approval of applied for the Board’s approval under § 3(a)(3) the application. It is the Board’s judgment that of the Act (12 U.S.C. 1842(a)(3)) to acquire all consummation of the proposed acquisition would of the voting shares of First National Bank of be in the public interest, and that the application Amherst, Amherst, Massachusetts (“Bank”). should be approved. Notice of the application, affording opportunity On the basis of the record, the application is for interested persons to submit comments and approved for the reasons summarized above. The views, has been given in accordance with § 3(b) approval herein neither provides authority to of the Act. The time for filing comments and views Applicant to continue in the nonbank activities nor has expired, and the Board has considered the to retain nonbank shares nor requires the Applicant application and all comments received in light of to modify or terminate said activities or holdings. the factors set forth in § 3(c) of the Act (12 U.S.C. However, consummation of the proposal herein is 1842(c)). subject to the continuing authority of the Board Applicant, the sixth largest banking organi to require modification or termination of such zation in Massachusetts, controls one bank with activities or holdings (within a period no shorter aggregate deposits of $336.3 million, representing than 2 years), if the Board determines that the 2.9 per cent of total deposits of commercial banks continued combination of banking and nonbanking in the State. (All banking data are as of December interests is likely to have an adverse effect on the 31, 1971, and reflect bank holding company public interest.1 The transaction shall not be con formations and acquisitions approved through May summated (a) before the thirtieth calendar day 31, 1972.) Approval of this application would not following the effective date of this Order or (b) significantly increase Applicant’s share of State later than three months after the effective date of wide deposits and its present ranking would not this Order, unless such period is extended for good change. cause by the Board, or by the Federal Reserve Bank, with deposits of $25.2 million, is the Bank of Boston pursuant to delegated authority. largest of six banks in its banking market, which By order of the Board of Governors, effective is approximated by central Hampshire County and August 4, 1972. portions of Franklin County, and controls 32 per Voting for this action: Chairman Burns and Governors cent of deposits in commercial banks in that mar Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent ket. and not voting: Governor Bucher. Applicant’s acquisition of Bank would consti (Signed) Tynan Smith, tute its initial entry into Bank’s market and [seal] Secretary of the Board. Hampshire County. Applicant’s closest existing subsidiary banking office is located approximately 30 miles from Bank. No meaningful competition exists between Bank and any of Applicant’s exist xIn permitting Applicant to retain its grandfathered land development company, Wornat Development Corporation, the ing subsidiary banking offices, nor does it appear Board has not altered its position that land development is likely that such competition would develop in the not a permissible activity under § 4(c)(8) of the Bank Holding future, in view of the distances separating Bank Company Act. (Application of UB Financial Corporation, Phoenix, Arizona, to retain H. S. Pickrell Company, 1972 from Applicant’s subsidiaries, the State’s restric F.R. Bulletin 428.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 809 NEW JERSEY NATIONAL CORPORATION, Applicant and Bank are considered to be generally TRENTON, NEW JERSEY satisfactory and their prospects appear favorable. New Bank would also appear to have favorable Order Approving Acquisition of Bank prospects for future development and growth. New Jersey National Corporation, Trenton, Banking factors are consistent with approval of New Jersey, a bank holding company within the the application. Although the major banking needs meaning of the Bank Holding Company Act, has of the Trenton market are presently fulfilled by applied for the Board’s approval under § 3(a)(3) its 25 banking organizations, New Bank would of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 provide alternative banking facilities to an area of per cent of the voting shares (less directors’ qual 27,500 inhabitants which area appears to have ifying shares) of New Jersey National Bank of good potential for growth and economic expan Princeton, Princeton Borough, New Jersey (“New sion. Considerations relating to the convenience Bank”), a proposed new bank. and needs of the communities to be served are Notice of the application, affording opportunity consistent with and lend some support toward for interested persons to submit comments and approval of the application. It is the Board’s judg views, has been given in accordance with § 3(b) ment that the proposed transaction would be in of the Act. The time for filing comments and views the public interest and that the application should has expired, and none has been timely received. be approved. The Board has considered the application in the On the basis of the record, the application is light of the factors set forth in § 3(c) of the Act approved for the reasons summarized above. The (12 U.S.C. 1842(c)). transaction shall not be consummated (a) before Applicant controls one bank, New Jersey Na the thirtieth calendar day following the effective tional Bank, Princeton (“Bank”), with deposits date of this Order or (b) later than three months of $578.7 million, representing 3.4 per cent of after that date, and (c) New Jersey National Bank the aggregate commercial bank deposits for the of Princeton, Princeton Borough, New Jersey, State of New Jersey. (All banking data are as of shall be opened for business not later than six December 31, 1971, and reflect holding company months after the effective date of this Order. Each formations and acquisitions approved by the Board of the periods described in (b) and (c) may be through May 31, 1972.) Bank holds the largest extended for good cause by the Board, or by the percentage of deposits in the Second New Jersey Federal Reserve Bank of Philadelphia pursuant to Banking District and also in the Trenton Banking delegated authority. Market, but is the second largest New Jersey By order of the Board of Governors, effective banking organization represented in this market August 8, 1972. area. The acquisition by Applicant of the proposed Voting for this action: Chairman Burns and Governors new bank would have no immediate impact on Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Daane. the concentration of banking resources in any areas. (Signed) Tynan Smith, The proposed location of New Bank would be [seal] Secretary of the Board. in Princeton Borough, a distance of 8.8 miles from the nearest office of Bank. Bank is prohibited by NORTH SHORE CAPITAL CORPORATION, State law from branching into this area where CHICAGO, ILLINOIS subsidiaries of two banking organizations, with Order Denying Formation of Bank Holding $1.1 billion and $447 million in deposits, respec Company tively, presently operate six offices. Branch offices of three Trenton market banks are also located in North Shore Capital Corporation, Chicago, Illi the outlying area. The establishment of New Bank nois, has applied for the Board’s approval under in Princeton Borough would not adversely affect § 3(a)(1) of the Bank Holding Company Act (12 competition in any relevant areas, but, conversely, U.S.C. 1842(a)(1)) of formation of a bank holding would have a procompetitive effect by providing company through acquisition of 50.1 per cent or another source of full banking services to the more of the voting shares of The North Shore Princeton Borough area. Competitive consid National Bank of Chicago, Chicago, Illinois erations are consistent with approval of the ap (“Bank”). plication. Notice of the application, affording opportunity The financial and managerial resources of for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
810 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 views, has been given in accordance with § 3(b) would incur upon consummation of the proposed of the Act. The time for filing comments and views transaction, has been unreceptive to suggestions has expired, and the Board has considered the that it increase Bank’s capital. The fact that Bank’s application and all comments received in light of earnings have been below the average earnings of the factors set forth in § 3(c) of the Act (12 U.S.C. similarly-sized banks suggests that consummation 1842(c)). would foreclose capital improvement in Bank, and Applicant is a newly-formed organization and that Applicant may even be unable to service its has no operating history. Upon acquisition of Bank debt without unduly straining Bank’s earnings, ($102.2 million of deposits), Applicant would retention of which are necessary to strengthen control 0.3 per cent of the ccommercial bank Bank’s capital position. deposits in Illinois. (All banking data are as of Applicant’s projected income includes an annual June 30, 1971.) Bank is the fourth largest of 18 “consulting” fee of $24,000 to be extracted from banks competing in its service area and holds Bank in order to enable Applicant to service its approximately 9 per cent of area deposits. The acquisition debt. In return, directors and officers Board notes that the principals of Applicant are of Applicant would, as directors and officers of also principals of four other one-bank holding Bank, provide services to Bank normally provided companies in Illinois, which hold deposits of $51, by such bank management; Applicant will not $38, $22, and $7 million, respectively. However, have a servicing staff. This consulting fee therefore consummation of the proposed transaction is not appears to be unjustified and a means by which likely to adversely affect existing competition in a portion of Bank’s income would be distributed that the service areas of the other banks controlled to Applicant without a similar pro rata distribution by these principals do not appear to overlap with to Bank’s minority stockholders. that of Bank. The nearest of these, Citizen’s Na The instant proposal contemplates the use of tional Bank of Chicago, is approximately 12 miles excessive leverage and, if consummated, could distant from Bank. impede Bank’s future capital growth and unduly Applicant will incur substantial debt in order operate to the detriment of Bank’s minority share to acquire shares of Bank and has projected retire holders. These factors weigh heavily against ap ment of this debt in 8V2 years from dividends to proval of this application. be declared by Bank. Although, on occasion, the The convenience and needs of the communities Board has approved acquisitions involving similar to be served are already adequately being served or even greater relative amounts of debt, payable and there is no evidence that consummation of the over a lengthier period, those cases involved the proposed acquisition would give rise to any sig transfer of ownership of small rural banks gener nificant public benefits, other than those derived ally through the formation of small one-bank from the added flexibility inherent in a holding holding companies. In each such case, the adverse company structure. Considerations relating to the effects deriving from leverage were outweighed by convenience and needs of the communities to be public benefits deriving from the facilitation of the served therefore lend slight weight for approval. otherwise-difficult task of transferring ownership Under all the circumstances of this case, the of those banks and the promotion of local owner Board concludes that the leverage contemplated, ship and management. Those benefits are absent the potentially unfulfilled capital need of Bank and where, as here, the bank, whose shares are sought unfair treatment of minority shareholders involved to be acquired, is a large bank located in an urban in this proposal present adverse circumstances center. The amount of debt Applicant will assume bearing on the financial condition, managerial re and the length of time contemplated to retire that sources, and future prospects of Applicant and debt are considered excessive for the financing of Bank. These circumstances are not outweighed by a bank of this size. any procompetitive factors or by considerations Although Bank’s asset condition is satisfactory, relating to the convenience and needs of the com an infusion of capital is necessary to raise Bank’s munities to be served. Accordingly, approval of capital to what the Board deems to be an accept this application is not in the public interest and able level. The Board generally expects a bank it should be denied. holding company to assist its subsidiary banks On the basis of the record, the application is especially where those banks are in need of in denied for the reasons summarized above. creased capitalization. However, Applicant, ap By order of the Board of Governors, effective parently due to the debt-servicing obligations it August 8, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 811 Voting for this action: Chairman Burns and Governors petition developing between Applicant and Bank Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent are the distance separating Applicant’s banking and not voting: Governor Daane. subsidiaries and Bank, and Ohio law regarding (Signed) Tynan Smith, branching. The Board concludes that competitive [seal] Secretary of the Board. considerations are consistent with approval of the application. FIRST BANC GROUP OF OHIO, INC., The financial and managerial resources and fu COLUMBUS, OHIO ture prospects of Applicant, its subsidiary banks and Bank are regarded as generally satisfactory. Order Approving Acquisition of Bank Applicant proposes to provide additional manage First Banc Group of Ohio, Inc., Columbus, ment depth to Bank so that banking considerations Ohio, a bank holding company within the meaning lend weight for approval of the application. of the Bank Holding Company Act, has applied Applicant also proposes to provide certain new for the Board’s approval under section 3(a)(3) of services such as a 24-hour automated teller and the Act (12 U.S.C. 1842(a)(3)) to acquire the educational loans, which Bank is not presently successor by merger to The Liberty National Bank, providing. Consequently, considerations relating Fremont, Fremont, Ohio (“Bank”). The bank into to the convenience and needs of the community which Bank is to be merged has no significance lend weight for approval. It is the Board’s judg except as a means to facilitate the acquisition of ment that the proposed transaction is in the public voting shares of Bank. Accordingly, the proposed interest and that the application should be ap acquisition is treated herein as a proposed acquisi proved. tion of the shares of Bank. On the basis of the record, the application is Notice of the application affording opportunity approved for the reasons summarized above. The for interested persons to submit comments and transaction shall not be consummated (a) before views has been given in accordance with section the thirtieth calendar day following the effective 3(b) of the Act. The time for filing comments and date of this Order or (b) later than three months views has expired, and the Board has considered after the effective date of this Order, unless such the application and all comments received in light period is extended for good cause by the Board of the factors set forth in section 3(c) of the Act or by the Federal Reserve Bank of Cleveland (12 U.S.C. 1842(c)). pursuant to delegated authority. Applicant, the seventh largest banking organi By order of the Board of Governors, effective zation in Ohio, controls 11 banks with aggregate August 8, 1972. deposits of approximately $823 billion, represent Voting for this action: Chairman Burns and Governors ing about 3.5 per cent of deposits of commercial Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent banks in the State.1 Consummation of the proposal and not voting: Governor Daane. herein would increase Applicant’s share of depos (Signed) Tynan Smith, its by only .1 percentage point and would not [seal] Secretary of the Board. change its Statewide ranking nor result in a signif icant increase in the concentration of banking resources in Ohio. Order Approving Acquisition of Bank Bank (about $24 million in deposits) is the third First Banc Group of Ohio, Inc., Columbus, largest of five banking organizations in the San Ohio, a bank holding company within the meaning dusky County area and controls approximately 19 of the Bank Holding Company Act, has applied per cent of area deposits. There is no significant for the Board’s approval under section 3(a)(3) of existing competition between Applicant and Bank the Act (12 U.S.C. 1842(a)(3)) to acquire the nor is there a reasonable probability of competition successor by merger to The First National Bank developing in the future since the Sandusky and Trust Company of Ravenna, Ravenna, Ohio County area is not attractive for de novo entry with (“Bank”). The bank into which Bank is to be a population per banking office somewhat lower merged has no significance except as a means to than the Statewide average. Additional reasons facilitate the acquisition of voting shares of Bank. that mitigate against the possibility of future com- Accordingly, the proposed acquisition is treated herein as the proposed acquisition of the shares *A11 banking data are as of December 31, 1971, and reflect of Bank. bank holding company formations and acquisitions approved by the Board through June 30, 1972. Notice of the application, affording opportunity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
812 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 for interested persons to submit comments and approved for the reasons summarized above. The views, has been given in accordance with section transaction shall not be consummated (a) before 3(b) of the Act. The time for filing comments and the thirtieth calendar day following the effective views has expired and the Board has considered date of this Order or (b) later than three months the application, and all comments received in light after the effective date of this Order, unless such of the factors set forth in section 3(c) of the Act period is extended for good cause by the Board (12 U.S.C. 1842(c)). or by the Federal Reserve Bank of Cleveland Applicant controls 12 banks with deposits of pursuant to delegated authority. about $847 million representing approximately 3.6 By order of the Board of Governors, effective per cent of total deposits of commercial banks in August 8, 1972. Ohio, and is the seventh largest banking organi Voting for this action: Chairman Burns and Governors zation in the State.1 Acquisition of Bank (deposits Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent of about $57 million) would increase Applicant’s and not voting: Governor Daane. share of deposits in the State by only 0.2 percent (Signed) Tynan Smith, age points and would not alter its State ranking [seal] Secretary of the Board. nor result in a significant increase in the con centration of banking resources in Ohio. FIRST UNION, INCORPORATED, Bank is the seventh largest organization operat ST. LOUIS, MISSOURI ing in the Akron banking market and has only 3.9 per cent of market deposits. There is no substantial Order Approving Acquisition of Banks existing competition between Applicant and Bank, First Union, Incorporated, St. Louis, Missouri, and there is little probability of competition devel has applied for the Board’s approval under § oping in the future because of the distances 3(a)(3) of the Bank Holding Company Act (12 separating Bank and Applicant’s banking sub U.S.C. 1842(a)(3)) to acquire 90 per cent or more sidiaries and Ohio branching laws. On the other of the voting shares of The Peoples Bank and Trust hand, the entry by Applicant into the Akron market Company of Branson, Branson, Missouri (“Bran through a “foothold” acquisition such as that of son Bank”), and The Bank of Crane, Crane, Bank may enable Bank to provide increased com Missouri (“Crane Bank”). petition for the larger organizations in the market. Notice of the applications, affording opportunity The Board concludes that competitive consid for interested persons to submit comments and erations are consistent with approval of the ap views, has been given in accordance with § 3(b) plication. of the Act. The time for filing comments and views Considerations relating to the financial condi has expired, and the Board has considered the tion, managerial resources and prospects of applications and all comments received in light of Applicant, its subsidiary banks, and Bank are the factors set forth in § 3(c) of the Act (12 U.S.C. generally satisfactory. Applicant proposes to pro 1842(c)). vide Bank with additional management depth so On the basis of the record, the applications are that banking considerations give weight for ap approved for the reasons set forth in the Board’s proval of the application. Considerations relating Statement of this date.1 The transactions shall not to the convenience and needs of the community be consummated (a) before the thirtieth calendar to be served lend weight for approval of the day following the effective date of this Order or application since Applicant plans to provide edu (b) later than three months after the effective date cational loans and automatic 24 hour teller service of this Order, unless such period is extended for which Bank does not presently provide for its good cause by the Board, or by the Federal Re customers. It is the Board’s judgment that con serve Bank of St. Louis pursuant to delegated summation of the proposed acquisition would be authority. in the public interest and the application should be approved. By order of the Board of Governors, effective On the basis of the record the application is August 8, 1972. Voting for this action: Chairman Burns and Governors ‘Banking data are as of December 31, 1971, and reflect holding company formations and acquisitions approved by the ‘The Statement also reflects Board action of this date denying Board through June 30, 1972. Data also reflect the Board’s an application by First Union, Incorporated, to acquire 90 per approval of this date of Applicant’s acquisition of The Liberty cent or more of the voting shares of The Bank of Taney County, National Bank of Freemont, Freemont, Ohio. Forsyth, Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 813 Robertson, Daane, and Sheehan. Absent and not voting: Gov aggregate deposits of $1,048.7 million, represent ernors Mitchell, Brimmer, and Bucher. ing approximately 8.3 per cent of the commercial (Signed) Tynan Smith, bank deposits in the State. (All banking data are [seal] Secretary of the Board. as of December 31, 1971, adjusted to reflect bank holding company acquisitions and formations ap Order Denying Acquisition of Bank proved by the Board through June 30, 1972.) As a result of consummation of the three proposed First Union, Incorporated, St. Louis, Missouri, acquisitions herein, Applicant’s share of Statewide has applied for the Board’s approval under § deposits would increase by 0.3 percentage points, 3(a)(3) of the Bank Holding Company Act (12 and its position in relation to the State’s other bank U.S.C. 1842(a)(3)) to acquire 90 per cent or more holding companies and banking organizations of the voting shares of The Bank of Taney County, would remain unchanged. Forsyth, Missouri (“Forsyth Bank”). Branson Bank ($16.5 million in deposits) and Notice of the application, affording opportunity Forsyth Bank ($8.9 million in deposits) are the for interested persons to submit comments and largest and third largest, respectively, of three views has been given in accordance with § 3(b) banks competing in the Taney County banking of the Act. The time for filing comments and views market, and control a combined share of 62.7 per has expired, and the Board has considered the cent of total deposits in that market. The present application and all comments received in light of degree of common ownership between the two the factors set forth in § 3(c) of the Act (12 U.S.C. banks, while significant, is not as conclusive as 1842(c)). would be the case upon affiliation with Applicant. On the basis of the record, the application is The proposed affiliation would place the two banks denied for the reasons set forth in the Board’s under common control, which would tend to have Statement of this date. a significant impact on concentration in Taney By order of the Board of Governors, effective County. Furthermore, acquisition of both Branson August 8, 1972. Bank and Forsyth Bank would eliminate a banking Voting for this action: Chairman Burns and Governors alternative since the banks in Branson are the Robertson, Daane, and Sheehan. Absent and not voting: Gov closest alternatives for residents of Forsyth. Ap ernors Mitchell, Brimmer, and Bucher. proval would also foreclose potential competition (Signed) Tynan Smith, as the operations of Branson Bank and Forsyth [seal] Secretary of the Board. Bank are expected to be drawn much closer to gether by the planned establishment of remote Statement facilities for each Bank at Hollister and Rockaway Beach, respectively. Completion of such facilities, Nature of transaction. First Union, Incorpo rated, St. Louis, Missouri, a registered bank hold under Missouri’s new bank facility law, would substantially increase the likelihood of meaningful ing company, has applied to the Board of Gover competition developing between them in the fu nors, pursuant to § 3(a)(3) of the Bank Holding ture. Company Act (12 U.S.C. 1842(a)(3)), for prior approval of the acquisition of 90 per cent or more Crane Bank ($8.5 million in deposits) is the of the voting shares of The Peoples Bank and Trust largest of two banks in Stone County, the adjacent Company of Branson, Branson, Missouri (“Bran county to Taney County. Acquisition of Crane son Bank”), The Bank of Crane, Crane, Missouri Bank and Branson Bank would have no anticom (“Crane Bank”), and The Bank of Taney County, petitive consequences as the two banks are 35 Forsyth, Missouri (“Forsyth Bank”). miles apart, serve separate counties which consti While each of the applications has been sepa tute separate banking markets, and have an inter rately considered and the proposed acquisition of vening bank between them. Potential competition Forsyth Bank is subject to a separate Board Order, would not be adversely affected. because of certain common facts and circum No existing competition with Applicant’s sub stances this Statement contains the Board’s find sidiary banks would be eliminated, as Applicant’s ings and conclusions with respect to all of the closest subsidiary bank is located in Springfield, applications. Missouri, about 30 miles from Crane Bank and Statutory considerations. Applicant, the third 40 miles from Branson Bank. largest bank holding company and banking orga On the basis of the record before it, the Board nization in Missouri, controls ten banks with concludes that the competitive effects of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
814 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 proposed acquisitions, with the exception of For of the Act. The time for filing comments and views syth Bank, are consistent with approval of the has expired, and the Board has considered the applications. application and all comments received in light of The financial and managerial resources and fu the factors set forth in § 3(c) of the Act (12 U.S.C. ture prospects of Applicant, its subsidiary banks, 1842(c)). and Banks, are regarded as satisfactory, in view Applicant, the tenth largest banking organi of Applicant’s commitment to provide $350,000 zation and sixth largest multi-bank holding com in additional capital to Branson Bank and its pany in Ohio, controls five banks with deposits agreement to permit Branson Bank to retain all of $605.7 million. (All banking data are as of earnings for a period of three years. December 31, 1971, and reflect holding company Affiliation with Applicant will permit higher formations and acquisitions approved through May loan limits through loan participation arrange 31, 1971.) The acquisition of Bank ($157 million ments, and allow each of the communities in deposits) would increase Applicant’s share of total volved to be afforded trust and investment man State deposits by .67 percentage points, and al agement services. Considerations relating to the though it would become the ninth largest banking convenience and needs of the communities to be organization, it would remain the sixth largest served lend weight for approval. With the excep multi-bank holding company in Ohio. Con tion of the Forsyth Bank proposal, any anticom summation of the acquisition would not result in petitive consequences inherent in the proposed any undue concentration of banking resources acquisitions are clearly outweighed by the proba within the relevant areas of the State. ble effect of the transactions in meeting the con Bank is headquartered in Canton, and operates venience and needs of the communities to be ten offices in Stark County and one office in Carroll served. The likely adverse competitive conse County. Bank is the second largest of 15 banks quences that would attend the Forsyth Bank ac in the Canton banking market, and holds 21 per quisition are not outweighed by benefits to the cent of the total deposits for the market. Applicant community to be served. does not compete in the market at the present time, Conclusion. On the basis of all relevant facts and the closest banking offices of Bank and Appli before it, the Board concludes that the proposed cant are 80 miles apart. Applicant’s other affiliates acquisitions of Branson Bank and Crane Bank are located between 100 and 250 miles from Can would be in the public interest and these applica ton and none of its subsidiaries obtains any sub tions should be approved. The proposed acquisi stantial amount of banking business from the Can tion of Forsyth Bank would not be in the public ton market. It appears that there is little likelihood interest and that application should be denied. for the development of any substantial amount of future competition between offices of Applicant THE CENTRAL BANCORPORATION, INC., and Bank due to the distances separating the CINCINNATI, OHIO banking offices and the cross-county branching limitations imposed by State laws. Should Bank Order Approving Acquisition of Bank become the nucleus for the formation of a small The Central Bancorporation, Inc., Cincinnati, bank holding company, Applicant and Bank might Ohio, has applied for the Board’s approval under compete in local markets in the future. This factor § 3(a)(3) of the Bank Holding Company Act (12 could have a slightly adverse effect on possible U.S.C. 1842(a)(3)) to acquire 100 per cent of the future competition. However, in considering the voting shares (less directors’ qualifying shares) of future development of the overall banking struc the successor by merger to First National Bank ture in Ohio, there are a number of large banks of Canton, Canton, Ohio (“Bank”). in the State that could develop into holding com The bank into which Bank is to be merged has panies over time. Thus, the loss of Bank as a no significance except as a means to facilitate the potential member of a holding company would not acquisition of the voting shares of Bank. Accord have a serious anticompetitive effect. ingly, the proposed acquisition of the successor The financial and managerial resources of organization is treated herein as the proposed ac Applicant, its subsidiary banks and Bank are gen quisition of the shares of Bank. erally satisfactory, and prospects for each appear Notice of the application, affording opportunity favorable. Banking factors are consistent with ap for interested persons to submit comments and proval of the application. views, has been given in accordance with § 3(b) The major banking needs of the Canton area Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 815 are presently being served. However, the popula it ranks as the second largest of 15 banks in the tion of Stark County, primarily centered in Can market. Applicant, with deposits of $605.7 mil ton, is rapidly increasing along with its industrial lion, centers its operations in Cincinnati where its expansion. Credit is needed to finance the purchase lead bank holds deposits of $519.5 million. of homes and automobiles, as well as to support The acquisition of Bank would give Applicant the expansion in industrial activity. Bank has been control of aggregate deposits of $762.7 million, limited heretofore in its lending activities. Appli representing an immediate increase of 26 per cent. cant proposes to increase Bank’s lending capabil The 15 Canton Market banks operate 52 offices ities, expand its trust services and make interna and control deposits ranging from $4 million to tional services available at Bank. The expanded $186 million. The three largest of these banks and enlarged services Bank would be able to offer (including Bank) control 64 per cent of total de its customers would serve the convenience and posits. The acquisition by Applicant of the second needs of the communities. Therefore, consid largest bank in the market would further strengthen erations under this factor are consistent with and Bank’s position and would solidify the high degree lend support to approval of this application. It is of concentration of banking resources already the Board’s judgment that the convenience and present there. As a result of consummation of the needs aspects of the instant proposal outweigh the acquisition, the 12 smaller Canton Market banks, slightly adverse competitive consequences and that with deposits ranging from $4 to $54 million, consummation of the proposed acquisition would would be placed in an even more difficult compet be in the public interest, and that the application itive position. should be approved. Applicant is capable of entering the market de On the basis of the record, the application is novo or through acquisition of a smaller area bank. approved for the reasons summarized above. The Either of these alternatives could have procomtransaction shall not be consummated (a) before petitive effects on area banking. We are also the thirtieth calendar day following the effective mindful that this acquisition forecloses future date of this Order, or (b) later than three months competition between Applicant’s subsidiaries and after the effective date of this Order, unless such Bank. That institution, the twenty-fourth largest period is extended for good cause by the Board, banking organization in Ohio—absent this pro or by the Federal Reserve Bank of Cleveland posal—is a potential lead bank in a local or possi pursuant to delegated authority. ble Statewide bank holding company formation. By order of the Board of Governors, effective Our review of the record indicates that conveni August 9, 1972. ent and full banking services are made available to residents of the area by existing financial insti Voting for this action: Chairman Burns and Governors tutions and that no unserved public need or benefit Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson and Brimmer. Absent and not voting: would be added by consummation of this proposal. Governor Bucher. We have concluded, therefore, that banking com (Signed) Tynan Smith, petition in Ohio on a local and Statewide basis [seal] Secretary of the Board. would best be served by a denial of this application and by requiring Applicant to resort to less anti Dissenting Statement of Governors competitive means of entry. Robertson and Brimmer THE CHASE MANHATTAN CORPORATION, We would deny this application because there NEW YORK, NEW YORK are no overriding public benefits which result from the affiliation to outweigh the adverse effects on Order Approving Acquisition of Bank competition or to bring the proposal within the The Chase Manhattan Corporation, New York, exception prescribed in the Bank Holding Com New York, a bank holding company within the pany Act (12 U.S.C. 1842). meaning of the Bank Holding Company Act, has Bank is located in Canton, the county seat of applied for the Board’s approval under section Stark County—approximately 57 miles from 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac Cleveland, 37 miles from Youngstown, and 23 quire 100 per cent of the voting shares (less miles from Akron. It serves the Canton Market, directors’ qualifying shares) of Chase Manhattan a highly industrialized area with a population of Bank of Central New York (National Association), 400,000. It holds deposits of $157.1 million Syracuse, New York (“Bank”), a proposed new (representing 21.0 per cent of total deposits), and bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
816 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Notice of receipt of the application has been December 19, 1969, respectively. Berkeley Ser given in accordance with section 3(b) of the Act, vice Corporation is a service agency for the and the time for filing comments and views has Shapiro Factors Division of The Chase Manhattan expired. The Board has considered the application Bank, and Dovenmuehle, Inc., is a mortgage and all comments received in the light of the servicing company. The approval herein neither factors set forth in section 3(c) of the Act (12 provides authority to Applicant to continue in the U.S.C. 1842(c)) and finds that: nonbank activities nor to retain nonbank shares nor Applicant, the second largest banking organi requires the Applicant to modify or terminate said zation in New York in terms of domestic deposits, activities or holdings. However, consummation of controls two subsidiary banks with aggregate de the proposal herein is subject to the continuing posits of approximately $13.6 billion, representing authority of the Board to require modification or 14.1 per cent of the total deposits in commercial termination of such activities or holdings (within banks in the State. (Unless otherwise noted, de a period no shorter than two years), if the Board posit data are as of December 31, 1971, and determines that the continued combination of market data are as of June 30, 1970, adjusted to banking and nonbanking interests is likely to have reflect bank holding company formations and ac an adverse effect on the public interest. quisitions approved by the Board through June 16, The provision of any credit, property or services 1972.) Since Bank is a proposed new bank, no by the holding company or any affiliate thereof existing competition would be eliminated nor shall not be subject to any condition which, if would concentration be increased in any relevant imposed by a bank, would constitute an unlawful area. tie-in arrangement under § 106 of the Bank Hold Bank will be located in downtown Syracuse, ing Company Amendments of 1970. The non and will represent the initial entry by Applicant banking activities of Applicant shall not be altered into the upstate New York markets. Applicant’s in any significant respect from those engaged in two existing subsidiaries are presently barred from at the time of the filing of the application herein branching into the Syracuse market until Statewide nor shall they be provided at any location other branching becomes effective on January 1, 1976. than as described in said application, except upon Applicant’s closest banking office is located about compliance with the procedures of § 225.4(b)(1) 250 miles southeast of Bank. Applicant’s acquisi of Regulation Y; and no merger, or consolidation, tion of Bank would have a procompetitive effect or acquisition of assets other than in the regular by introducing a new competitor into the highly course of business, to which Applicant or any concentrated Syracuse banking market, where four affiliate thereof is a party, shall be consummated of the 11 banks competing in that market control without prior Board approval. over 90 per cent of total market deposits. Appli On the basis of the record, the application is cant’s entry into this market should stimulate approved for the reasons summarized above. The competition without having adverse effects on any transaction shall not be consummated (a) before competing bank. the thirtieth calendar day following the effective The financial condition, management, and pros date of this Order or (b) later than three months pects of Applicant and its subsidiary banks are after that date, and (c) Chase Manhattan Bank of regarded as satisfactory. Since Bank will be able Central New York (National Association), Syra to draw on Applicant’s financial and managerial cuse, New York, shall be opened for business not resources, its prospects are favorable and the later than six months after the effective date of banking factors are consistent with approval. this Order. Each of the periods described in (b) Considerations relating to the convenience and and (c) may be extended for good cause by the needs of the community to be served lend weight Board, or by the Federal Reserve Bank of New toward approval as Bank will provide an additional York pursuant to delegated authority. source of full banking services. It is the Board’s By order of the Board of Governors, effective judgment that consummation of the proposed ac August 10, 1972. quisition would be in the public interest and that the application should be approved. Voting for this action: Vice Chairman Robertson and Gov Applicant owns two nonbanking subsidiaries, ernors Mitchell, Brimmer, Sheehan, and Bucher. Absent and Berkeley Service Corporation, Boston, Massachu not voting: Chairman Burns and Governor Daane. setts, and Dovenmuehle, Inc., Chicago, Illinois, (Signed) Tynan Smith, which were acquired on June 4, 1969, and on [seal] Secretary of the Board. 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LAW DEPARTMENT 817 Concurring Statement of Governor cent of total deposits of commercial banks in the Brimmer State. (All banking data are as of December 31, 1971, and reflect bank holding company forma As I stated in my Dissenting Statement to the tions and acquisitions as of May 31, 1971.) Upon Board’s approval of the application by First Na consummation of the proposals herein, Applicant tional City Corporation to acquire the successor would control .85 per cent of total deposits of by merger to The National Exchange Bank of commercial banks in Florida and would rank 19th Castleton-on-Hudson (37 Federal Register 14259), among the bank holding companies in the State. a review of the nonbanking activities of a one-bank Consummation of Applicant’s proposals herein holding company which became regulated as a would constitute its initial entry into the relevant result of the 1970 Amendments should precede market of each bank proposed to be acquired. Board approval of an application by that company to acquire an additional bank. However, I concur Clearwater Bank ($19.5 million of deposits) in the Board’s approval of this application. ranks eleventh among 18 banks operating in North A preliminary investigation suggests that the Pinellas County (which approximates its market) activities engaged in by Applicant’s two nonbank and holds 3.7 per cent of total deposits of com ing subsidiaries are permissible activities for a mercial banks in that area. Applicant’s subsidiary bank holding company under current Board regu bank closest to Clearwater Bank is located in St. lations. The question of whether Applicant’s con Petersburg, Florida, 19 miles south of Clearwater tinued ownership of the indicated nonbanking ac Bank’s only office, and is regarded as operating tivities poses anticompetitive problems remains in a separate banking market. open, but in passing it should be observed that Davie Bank ($25.8 million of deposits) is the these activities are quite modest in both volume eighth largest of 14 banks in the Hollywood and scope. A comprehensive review of Applicant’s (Florida) area, which approximates its market and nonbanking activities will be undertaken shortly. holds approximately 6 per cent of total deposits of commercial banks in that area. Applicant’s AMERICAN BANCSHARES, subsidiary bank closest to Davie Bank is located INCORPORATED, in North Miami, 14 miles southeast of Davie NORTH MIAMI, FLORIDA Bank’s only banking office and operates in a sepa rate banking market. Order Approving Acquisition of Banks Keys Bank ($17.2 million of deposits) operates American Bancshares, Incorporated, North one banking office in the northern portion of the Miami, Florida, a bank holding company within Florida Keys in Monroe County, Florida, and is the meaning of the Bank Holding Company Act, the only bank located in its market. Applicant’s has applied in separate applications for the Board’s subsidiary bank closest to Keys Bank is located approval under § 3(a)(3) of the Act (12 U.S.C. in North Miami, 82 miles north of Keys Bank. 1842(a)(3)) to acquire 80 per cent or more of the It appears that no meaningful competition exists voting shares of each of the following banks in between any of the banks Applicant proposes to Florida: (1) Second National Bank of Clearwater, acquire, nor between any of Applicant’s present Clearwater (“Clearwater Bank”); (2) Sterling subsidiary banks and any of Applicant’s proposed National Bank of Davie, Davie (“Davie Bank”); subsidiary banks. In addition, the prospect of such and (3) First National Bank of the Upper Keys, competition developing in the future between any Tavernier (“Keys Bank”). of these banks appears unlikely, particularly in Notice of these applications, affording opportu view of (1) the distances separating these banks, nity for interested persons to submit comments and (2) the number of banks in intervening areas, (3) views, has been given in accordance with § 3(b) the inconvenience of travel between these banks, of the Act. The time for filing comments and views and (4) the provisions of Florida banking law has expired, and none has been timely received. which prohibit branch banking. On the record The Board has considered the applications in light before it, the Board concludes that consummation of the factors set forth in § 3(c) of the Act (12 of Applicant’s proposals would not have an ad U.S.C. 1842(c)). verse effect on competition in any relevant area Applicant, the second smallest among twenty- and, in fact, may have a procompetitive effect in three multi-bank holding companies in Florida, the markets of Clearwater and Davie banks where controls three banks with aggregate deposits of affiliation with Applicant will enable those banks $78.1 million, representing approximately .5 per to compete more effectively with banks that are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
818 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 now members of bank holding company organi the Board’s approval under § 3(a)(3) of the Act zations larger than Applicant. (12 U.S.C. 1842(a)(3)) to acquire at least 90 per The financial condition and managerial re cent of the voting shares of The Seminole Bank sources of Applicant and its subsidiary banks ap of Tampa, Tampa, Florida (“Seminole Bank”). pear generally satisfactory. The future prospects Notice of the application, affording opportunity of Applicant and its present subsidiary banks ap for interested persons to submit comments and pear favorable, particularly in light of Applicant’s views, has been given in accordance with § 3(b) commitment to strengthen the capital position of of the Act. The time for filing comments and views its subsidiary banks. The financial condition and has expired and the Board has considered the prospects of Clearwater, Davie, and Keys banks application and all comments received in light of appear generally satisfactory. Applicant’s stated the factors set forth in § 3(c) of the Act (12 U.S.C. plans to strengthen the capital position of Davie 1842(c)). and Keys banks soon after acquisition of those Applicant controls 26 banks with aggregate de banks and to provide additional managerial re posits of $904.6 million, representing 5.57 per source strength to the proposed subsidiary banks cent of the deposits for commercial banks in should increase their ability to provide expanded Florida, and is the fourth largest banking organi and more efficient services to their respective zation in the State. (All banking data are as of communities. Considerations relating to the bank December 31, 1971, and reflect holding company ing factors are consistent with and lend some formations and acquisitions approved through June weight toward approval of these applications. Al 30, 1972.) The acquisition of Seminole Bank ($34 though the banking needs of the relevant commu million in deposits) would increase Applicant’s nities generally appear adequately served by the control of State deposits to 5.75 percentage points, existing banking organizations, Applicant and Applicant’s rank among State banking organi proposes to provide trust services to customers of zations would remain unchanged. the subject banks through its lead bank and ability Applicant presently controls Tampa Bay Bank to enable these banks to accommodate larger credit (deposits of $24.1 million), the ninth largest bank requests through participations. These consid in the Tampa Market. Seminole Bank, which erations are consistent with approval. It is the Applicant seeks to acquire through this proposal, Board’s judgment that consummation of the is also in the Tampa Market. The two banks hold proposed transactions would be in the public in 2.2 and 3.1 per cent, respectively, of total market terest and that the applications should be approved. deposits. If this application were approved, On the basis of the record, the applications are Applicant would become the market’s fourth larg approved for the reasons summarized above. None est banking organization and would control 5.3 of the acquisitions shall be consummated (a) be per cent of total deposits. The two banks are 10.5 fore the thirtieth calendar day following the effec miles apart, their service areas overlap slightly, tive date of this Order or (b) later than three and each bank obtains approximately 7 per cent months after the effective date of this Order, unless of its deposits and loans from the service area of such period is extended for good cause by the the other. Consummation of the proposal, there Board, or by the Federal Reserve Bank of Atlanta fore, would eliminate this existing competition. pursuant to delegated authority. Tampa, Florida’s fifth largest city, is located in By order of the Board of Governors, effective Hillsborough County, one of Florida’s most im August 14, 1972. portant agricultural areas; it is also an important Voting for this action: Chairman Burns and Governors manufacturing center. The Tampa Harbor handles Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent the bulk of Florida’s shipping tonnage. In this and not voting: Governor Daane. prosperous area, the Tampa Banking Market is (Signed) Tynan Sm ith, highly concentrated; 71 per cent of total deposits [seal] Secretary of the Board. are held by three banking organizations. Seminole Bank is one of five remaining unaffiliated banks FIRST AT ORLANDO CORPORATION, located in close proximity to the downtown Tampa ORLANDO, FLORIDA area. It is especially attractive as a potential affili O rder Denying Acquisition of B ank ate of a bank holding company making its initial First at Orlando Corporation, Orlando, Florida, entry into the area. a bank holding company within the meaning of The acquisition of Seminole Bank by a banking the Bank Holding Company Act, has applied for organization not presently represented in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 819 Tampa Market would have a salutary effect on the ALABAMA BANCORPORATION, existing high degree of concentration present in BIRMINGHAM, ALABAMA this area and could have a beneficial effect on competition in the relevant areas. The Board con Order Approving Acquisitions of Banks cludes, therefore, that the competitive factors re Alabama Bancorporation, Birmingham, Ala lating to this application are adverse; that con bama, a bank holding company within the meaning summation of the proposed transaction would (1) of the Bank Holding Company Act, has applied eliminate some existing competition between for the Board’s approval under § 3(a)(3) of the Applicant’s Tampa subsidiary and Seminole Bank; Act (12 U.S.C. 1842(a)(3)) to acquire the succes (2) eliminate a banking alternative in this concen sors by merger to (1) The American National Bank trated market; and, most importantly, (3) remove & Trust Co. of Mobile, Mobile, Alabama (“Mo Seminole Bank as a potential means of entry by bile Bank”), and (2) First National Bank of Deca other organizations not presently represented in tur, Decatur, Alabama (“Decatur Bank”). The this market. Accordingly, competitive consid banks into which Mobile Bank and Decatur Bank erations require denial of this application unless are to be merged have no significance except as the anticompetitive effects of the proposal are a means to facilitate the acquisitions of voting outweighed by benefits to the public in meeting shares of Mobile Bank and Decatur Bank. Ac the convenience and needs of the communities to cordingly, the proposed acquisitions are treated be served. herein as the proposed acquisitions of the shares The financial conditions of Applicant and its of Mobile Bank and Decatur Bank. subsidiaries are considered to be generally satis Notice of the applications, affording opportunity factory, and their managements are deemed capa for interested persons to submit comments and ble. Prospects for the group appear favorable. The views, has been given in accordance with § 3(b) financial condition and managerial resources of of the Act. The time for filing comments and views Seminole Bank are considered to be generally has expired, and the Board has considered the satisfactory, and prospects for its future growth applications and all comments received in light of and development are also favorable; its deposits the factors set forth in § 3(c) of the Act (12 U.S.C. increased 54 per cent from 1967 to 1971. Thus, 1842(c)). banking factors are consistent with approval but Applicant controls one bank with deposits of provide no significant support for such action. approximately $648 million, representing about There are 19 banking organizations operating 12.4 per cent of deposits of commercial banks in in the Tampa Market. No prime banking needs Alabama.1 Consummation of the two proposals or conveniences are going unserved at this time. would increase Applicant’s share by 1.8 per cent, Applicant’s proposed initiation of trust services resulting in Applicant controlling approximately and the hiring of a business development officer 14.2 per cent of deposits in commercial banks in at Seminole Bank would not be important conse Alabama. However, this would not result in a quences of the proposed affiliation. Accordingly, significant increase in the concentration of banking considerations relating to the convenience and resources in the State. needs of the communities to be served, while Mobile Bank (deposits of about $64 million) is consistent with approval of the application, do not the third largest bank in the Mobile market with outweigh the adverse competitive effects of the approximately 11 per cent of market deposits,2 proposed acquisition. It is the Board’s judgment while Decatur Bank (deposits of about $35 mil that consummation of the proposed acquisition lion) is the second largest in the Decatur market would not be in the public interest and the ap with approximately 26 per cent of market depos plication should be denied. its.3 Acquisition of Mobile Bank and Decatur Bank On the basis of the record, the application is would not have a substantial effect on existing denied for the reasons summarized above. competition since Decatur Bank is over 70 miles By order of the Board of Governors, effective and Mobile Bank about 225 miles from Bir- August 17, 1972. *A11 banking data are as of June 30, 1971, with the exception Voting for this action: Chairman Burns and Governors of data for the Decatur market where the data is as of June Robertson, Brimmer, Sheehan, and Bucher. Absent and not 30, 1970. voting: Governors Mitchell and Daane. 2The Mobile banking market is approximated by Baldwin (Signed) Tynan Smith, and 3T M he o b D il e e c a C tu o r u n b t a ie n s k . ing market is approximated by Morgan [seal] Secretary of the Board. County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
820 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 mingham, the headquarters of Applicant’s banking new bank holding companies. The Department subsidiary. stated that banks comparable in size to Mobile There is some existing competition between Bank should be preserved in order to facilitate the Engel Mortgage Compay (“Engel”), a subsid possibility of the formation of additional holding iary of Applicant’s lead bank, and Mobile Bank companies in Alabama. and Decatur Bank, since Engel participates to a The Department considered the Decatur market, certain degree in the mortgage banking business in which Decatur Bank is the second largest bank, in both Decatur and Mobile. In 1971, Engel orig to be highly concentrated. Since Applicant was inated a total of $7.1 million in loans in the the largest of the three Statewide holding compa Mobile area, most of which were FHA-VA loans nies in Alabama that were not presently repre on 1-4 family homes. During the same period of sented in Decatur, the Department viewed the time, Mobile Bank originated approximately $1 proposed acquisition of Decatur Bank as having million in conventional loans on 1-4 family homes. a significantly adverse effect on potential competi The total mortgage originations on 1-4 family tion. residences in the Mobile area in 1971 was between Applicant was given an opportunity to reply and $70 to $87 million; thus, it appears that neither did so. In Applicant’s view, the Mobile market Mobile Bank nor Engel has a major share of this is not conducive for de novo entry since both market. Therefore, consummation of the transac population growth and rate of per capita income tion would have only a slightly adverse effect on growth in the Mobile market were below the State competition for mortgage originations on 1 -4 fam averages between 1960 and 1970. In addition, ily residences in the Mobile area. Applicant pointed out that the Mobile economy Also, in 1971 Engel had total mortgage origi had suffered a severe loss with the closing of a nations of $1.5 million in the Decatur area. During nearby air force base. Since the two largest Mobile the same period, Decatur Bank originated a total banks control over 70 per cent of deposits in the of $0.7 million in mortgage loans on 1-4 family Mobile market, Applicant viewed its proposed homes. Total mortgage originations in 1971 in the affiliation to be procompetitive, one likely to aid Decatur area on 1-4 family homes was between in the eventual deconcentration of the market. $22-$24 million. Thus, both Decatur Bank and Applicant also viewed the Decatur market as Engel accounted for only a modest proportion of being unattractive for de novo entry by reason of the loan origination business in the Decatur mar its low population per banking office. No other ket, so that, as in the Mobile market, the competi bank in the Decatur area that would provide more tive consequences are only slightly adverse. meaningful competition to the largest organi The Department of Justice filed comments with zation, which is already affiliated with a bank regard to both proposals. The Department con holding company, was available. The other tended that approval of the applications would independent bank headquartered in Decatur has an have a significantly adverse effect on potential existing business relationship with a bank holding competition between Applicant and Mobile Bank company, and the two banks located in Morgan and Decatur Bank. In the Department’s view, County are prevented by law from branching into Applicant, as the largest banking organization in Decatur. Alabama, is one of the most likely entrants into The record indicates that population growth in markets throughout the State. The Department the Mobile market between 1960 and 1970 was stated that the Mobile market was a highly con 3.7 per cent. However, the rate of growth between centrated one in terms of banking resources, and 1965 and 1970 was a negative 4.2 per cent. This that Mobile Bank was the third largest bank in decline, plus the curtailment of military expendi the market. For these reasons, the Department tures in the area, make prospects for the area asserted that approval of the application would unfavorable. The Board concludes that the Mobile have a substantially adverse effect on competition market is not attractive for de novo entry. More in the Mobile market. over, the proposed acquisition could assist in that In addition, the Department contended that the area’s economic expansion. Mobile Bank ranks a acquisition of Mobile Bank would have signifi distant third in the market; the two largest banks cantly adverse effects on a Statewide level since are both over three times the size of Bank. Affil Mobile Bank was believed to be one of only a iation with Applicant could make Mobile Bank small number of banks in Alabama which were a stronger competitor to these two large banking capable of becoming significant components of organizations which now tend to dominate the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 821 market. The resulting increase in competition after the effective date of this Order, unless such would, in the Board’s view, serve to stimulate period is extended for good cause by the Board economic expansion in the Mobile area. or by the Federal Reserve Bank of Atlanta pursuant The Decatur market does not appear attractive to delegated authority. for de novo entry since the population per banking By order of the Board of Governors, effective office is considerably less than the Statewide August 17, 1972. average. A4ditionally, there are no other suitable Voting for this action: Chairman Burns and Governors banks that would be available to Applicant. The Mitchell and Sheehan. Voting against this action: Governors largest banking organization in Decatur is already Robertson and Brimmer. Absent and not voting: Governors Daane and Bucher. associated with a bank holding company, and the (Signed) Tynan Smith, other bank located in Decatur has an existing [seal] Secretary of the Board. affiliation with another organization. The only two remaining banks in the Decatur market are both Dissenting Statement of Governors located in Hartselle, about 13 miles from Decatur. Robertson and Brimmer Neither of these banks can branch into Decatur under present law so that they are unsuitable for We would deny both these applications by Ala entry by Applicant. Moreover, the proposed affil bama’s largest banking organization. iation with Decatur Bank could be procompetitive The majority does not deny that there is existing since the largest bank in the market is a subsidiary competition between Applicant’s subsidiary, of Central and State National Corporation of Ala Engel Mortgage Company, and each of the two bama and has deposits of $253 million. Moreover, banks sought to be acquired. There has been no this bank is the third largest in Alabama and showing that competition between Applicant and operates under grandfather privileges in 12 coun the two banks in this market is insubstantial; in ties. Affiliation with Applicant should enable fact, the indications are that it is probably sub Decatur Bank to give stronger competition to this stantial. The proposed acquisitions are, therefore, large organization. The Board concludes that likely to cause a substantial lessening of existing competitive considerations of the proposed ac competition in the market for mortgage origina quisitions of both Mobile Bank and Decatur Bank tions in both the Mobile and Decatur areas. are consistent with approval. As regards the application to acquire Mobile The financial and managerial resources and fu Bank, the fact that the Mobile area has experienced ture prospects of Applicant, its subsidiary banks, little growth in recent years does not, in and of and Mobile Bank and Decatur Bank are regarded itself, signify that the market is unattractive for as generally satisfactory. Applicant does propose de novo entry. The Mobile area is underbanked to provide additional capital for Mobile Bank so as measured by population per banking office as that banking considerations lend support for ap compared to the Statewide average. Even if popu proval of the acquisition of Mobile Bank and are lation remains static in the Mobile area, there consistent with approval of the acquisition of would be an incentive for Applicant to enter de Decatur Bank. Considerations relating to the con novo. However, the lack of growth and population venience and needs of the communities to be decline in Mobile can be traced to the closing of served are consistent with approval of the Decatur a large military base in 1964. There is no indica application and lend some weight for support of tion that the Mobile area will not in the future approval of the Mobile Bank acquisition since overcome this setback and expand, both in terms Applicant will be able to make use of Mobile of population growth and economic activity. In Bank’s active International Department in the Bir our view, the long-term prospects for the Mobile mingham area which presently does not have a area are favorable and, with the passage of a few bank with an international department. It is the years, likely to attract entry of other bank holding Board’s judgment that the proposed transactions companies. are in the public interest and that the applications The three largest banking organizations in the should be approved. Mobile market presently hold over 80 per cent of On the basis of the record, the applications are market deposits. Entry by a likely potential com approved for the reasons summarized above. The petitor through de novo means is particularly im transactions shall not be consummated (a) before portant in such a setting. With the financial re the thirtieth calendar day following the effective sources and strength of Applicant behind a de novo date of this Order or (b) later than three months bank, deconcentration of the market and better Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
822 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 economic performance could result. Additionally, treated herein as the proposed acquisitions of the we see no benefits to the public to offset the shares of Dothan Bank and Huntsville Bank. adverse competitive effects that are present in this Notice of the applications affording opportunity application. The majority noted that Applicant has for interested persons to submit comments and agreed to increase capital of Mobile Bank and also views has been given in accordance with § 3(b) that acquisition of Mobile Bank will enable of the Act. The time for filing comments and views Applicant to provide international banking services has expired and the Board has considered the in the Birmingham area. The short answer to these applications and all comments received in light of “benefits” is that the Mobile Bank can surely the factors set forth in § 3(c) of the Act (12 U.S.C. increase capital without being acquired by the 1842(c)). largest banking organization in Alabama, and the Applicant controls one bank with aggregate de latter organization can certainly provide interna posits of approximately $357 million, representing tional services for Birmingham—given its size— about 6.8 per cent of deposits in commercial banks without having to resort to acquisition of a large in Alabama.1 Consummation of both proposals Mobile bank. would increase Applicant’s share of deposits by We cannot join the majority in approving the 1.5 per cent so that Applicant would control 8.3 acquisition of Decatur Bank. Decatur Bank is the per cent of deposits of commercial banks in the second largest bank in the Decatur market, with State. Such an increase would not be significant over 26 per cent of market deposits. Moreover, in terms of the concentration of banking resources the two largest organizations within the Decatur in Alabama. market have close to 75 per cent of area deposits. Dothan Bank (deposits of about $55 million) Given this concentrated setting, and the fact that is the largest bank in the Dothan market, with Applicant as the largest banking organization in approximately 54 per cent of market deposits.2 Alabama is one of the most likely potential en Huntsville Bank (deposits of about $21 million) trants into the Decatur area, we feel that the is the fourth largest of six banks in the Huntsville competitive considerations alone prohibit con market, with about 9.3 per cent of market depos summation of the proposal. its.3 Due to Alabama’s branching laws and the We find no public benefits which might out distances between Applicant’s Birmingham loca weigh the adverse competitive effects inherent in tion and Huntsville and Dothan, which are, re each application. We believe that Applicant’s ac spectively, over 100 and about 200 miles distant, quisition of each Bank will tend to solidify the there is no substantial existing competition be already high level of concentration present in both tween Applicant, Dothan Bank and Huntsville markets. The absence of public benefits and the Bank. presence of anticompetitive effects mandate denial The Department of Justice filed comments with of both applications. regard to both proposals. In the Department’s view, there are only a relatively few banking THE ALABAMA FINANCIAL GROUP, INC., organizations in Alabama, including this Appli BIRMINGHAM, ALABAMA cant, that are significant potential entrants into all markets in the State. The Department found the Order Approving Acquisition of Banks Dothan market to be highly concentrated and con The Alabama Financial Group, Inc., Bir sidered it important that Applicant enter the market mingham, Alabama, a bank holding company through some means other than by acquisition of within the meaning of the Bank Holding Company the “dominant” bank. Affiliation of Dothan Bank, Act, has applied for the Board’s approval under the twelfth largest banking organization in Ala § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to bama, with Applicant would also eliminate the acquire the successors by merger to (1) The First former as a member of another possible Statewide National Bank of Dothan, Dothan, Alabama or regional banking group. For these reasons, the (“Dothan Bank”) and (2) Peoples National Bank Department concluded that the acquisition of of Huntsville, Huntsville, Alabama (“Huntsville Bank”). The banks into which Dothan Bank and *A11 banking data are as of June 30, 1971, with the exception of data for the Huntsville Market where the data are as of Huntsville Bank are to be merged have no signifi June 30, 1970. cance except as a means to facilitate the acquisition 2The Dothan banking market is approximated by the city of voting shares of Dothan Bank and Huntsville of Dothan. 3The Huntsville banking market is approximated by Madison Bank. Accordingly, the proposed acquisitions are County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 823 Dothan Bank would have a substantially adverse of the Huntsville Bank, fourth largest of six banks effect on competition. in the market, could strengthen Bank’s competitive The Department viewed Applicant as one of the position. The three larger banks in the market are two most likely entrants into the Huntsville mar substantially larger than Huntsville Bank and two ket, where the three largest banks control approxi of them are already affiliated with the second and mately 79 per cent of total commercial deposits third largest holding companies in Alabama. The and, two of the four largest holding companies proposal offers Applicant the opportunity to in in Alabama are already present. The Department crease Huntsville Bank’s ability to compete with concluded that Huntsville Bank’s affiliation with these larger organizations and would, therefore, Applicant would have an adverse effect on com be procompetitive. For these reasons, the Board petition. concludes that the acquisition of both Dothan Bank and Huntsville Bank are consistent with competi Applicant replied to the Department’s comments tive considerations. by stating that the Dothan market was not attrac The financial and managerial resources and fu tive for de novo entry. Applicant pointed to such ture prospects of Applicant, its subsidiary bank indicia as population and deposits per banking and Huntsville Bank are regarded as generally office, per capita income, and the moderate popu satisfactory, and these considerations are consis lation growth in Dothan as reasons supporting this tent with approval of the application. On the other view. Since each of the two other banks head hand, Applicant proposes to provide needed man quartered in Dothan had existing relationships with agement depth for Dothan Bank so that banking other holding companies, there was no other considerations as regards the acquisition of Dothan means available for Applicant to enter this market. Bank lend weight for approval of the application. Moreover, Applicant asserted that Dothan Bank Considerations relating to the convenience and was not capable of serving as a lead bank for a needs of the communities of Dothan and Hunts new holding company due to its remoteness and ville are consistent with approval of the two ap relatively small size. plications. It is the Board’s judgment that the Since Huntsville Bank ranks as the fourth largest proposed transactions are in the public interest and of six banks in the Huntsville market and must that the applications should be approved. compete with much larger organizations, Appli On the basis of the record, the applications are cant viewed the proposed acquisition of Huntsville approved for the reasons summarized above. The Bank as procompetitive in that more vigorous transactions shall not be consummated (a) before competition would result. the thirtieth calendar day following the effective The record indicates that the Dothan market is date of this Order or (b) later than three months not attractive for de novo entry. Population per after the effective date of this Order, unless such banking office is considerably under the compara period is extended for good cause by the Board, ble State ratio, while deposits per banking office or by the Federal Reserve Bank of Atlanta pursuant are also less than the State average. Moreover, to delegated authority. the Dothan market had only moderate population By order of the Board of Governors, effective growth during the last decade. The Board, there August 17, 1972. fore, concludes that Applicant is not a likely de novo entrant into this market. It further appears Approval of acquisition of First National Bank of Dothan. Voting for this action: Chairman Burns and Governors Mitchell that there is no likelihood that Applicant could and Sheehan. Voting against this action: Governors Robertson enter the City of Dothan other than through ac and Brimmer. Absent and not voting: Governors Daane and quisition of Dothan Bank. The two other banks Bucher. Approval of acquisition of Peoples National Bank of Hunts in Dothan have existing relationships with other ville. Voting for this action: Chairman Burns and Governors bank holding companies; a pending application Robertson, Mitchell, Brimmer, and Sheehan. Absent and not from a holding company seeks approval to acquire voting: Governors Daane and Bucher. one of these banks. (Signed) Tynan Sm ith, In the Huntsville market, deposits per banking [seal] Secretary of the Board. office are well below the State average. Although the market’s population growth during the last Dissenting Statement of Governors decade was high, this growth has leveled off Robertson and Brimmer substantially from 1965 to 1970. Thus, the Board views the Huntsville market as an unattractive We concur in the majority’s approval of the market for de novo entry at this time. Acquisition acquisition by Applicant of Peoples National Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
824 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 of Huntsville. However, we would not approve CENTRAL AND STATE NATIONAL the acquisition of The First National Bank of CORPORATION OF ALABAMA, Dothan (“Dothan Bank”). BIRMINGHAM, ALABAMA At present, there are only four existing Statewide bank holding companies in Alabama. Order Approving Acquisition of Bank Applicant is one of them. As the Department of Central and State National Corporation of Ala Justice suggested, these holding companies must bama, Birmingham, Alabama, a bank holding be considered the most likely to enter the Dothan company within the meaning of the Bank Holding market, both in light of objective circumstances Company Act, has applied for the Board’s ap and by the expressed intent of the companies proval under section 3(a)(3) of the Act (12 U.S.C. themselves. 1842(a)(3)) to acquire at least 80 per cent of the We are confronted here with a dominant bank voting shares of Peoples Bank and Trust Com in a concentrated market being acquired by one pany, Montgomery, Alabama (“Bank”). of a small number of potential entrants into that Notice of the application, affording opportunity market. The Courts have ruled in comparable cases for interested persons to submit comments and that such an acquisition violates Section 7 of the views, has been given in accordance with section Clayton Act. (F.T.C. v. Proctor & Gamble Co 3(b) of the Act. The time for filing comments and et al., 386 U.S. 568 (1967), and General Foods views has expired, and the Board has considered Corp. v. F.T.C., 386 F. (2nd) 936 (3rd Cir. 1968), the application and all comments received in light cert, denied 391 U.S. 919 (1968)). The Board took of the factors set forth in section 3(c) of the Act a similar position in First Financial Corporation, (12 U.S.C. 1842(c)). 1972 Federal Reserve B u lletin 480. In our view, Applicant controls two banks with aggregate the acquisition of Dothan Bank by Applicant falls deposits of approximately $388 million represent squarely within the framework of these previous ing about 7.4 per cent of deposits in commercial positions and should be denied. banks in Alabama.1 Consummation of the proposal Another factor in our consideration is the fact would increase Applicant’s share of deposits by that Dothan Bank will no longer be a likely only .7 percentage points, and would not result member of an additional Statewide holding com in a significant increase in the concentration of the pany if this application is approved. There are banking resources in Alabama. presently only four Statewide holding companies There is no substantial existing competition be in the entire State of Alabama. We need to keep tween Applicant and Bank (about $36 million in open avenues for the formation of additional bank deposits). Moreover, approval of this application holding companies in order to provide the degree may provide procompetitive effects for the of competition in the banking field that is compat Montgomery area. Bank is the fourth largest of ible with the public interest. Approval of the five banks, with about 8.8 per cent of area depos acquisition of a bank the size of Dothan Bank—the its, while the two largest organizations in twelfth largest in the State—inhibits the formation Montgomery control over 75 per cent of area of alternative holding companies. Unless we are deposits. The introduction of Applicant into the content to let Alabama be divided among a handful area, through acquisition of Bank, should provide of organizations—perhaps no more than four— a more vigorous competitor for these two large which we think would not be consonant with the organizations and aid in the eventual deconcentra responsibilities imposed on the Board by the Bank tion of the Montgomery area. For these reasons Holding Company Act, we should be alert to deny competitive considerations are consistent with the applications for the acquisition of banks of the size approval of the application. and importance of Dothan Bank in the absence The financial and managerial resources and fu of overriding benefits to the public that offset the ture prospects of Applicant, its subsidiary banks, anticompetitive consequences arising from a pro and Bank, are regarded as generally satisfactory, posal. In this case, we think there must be much particularly since Applicant has made a commit more concrete evidence of public benefits flowing ment to provide additional capital to one of its from the proposed acquisition before the anticom subsidiary banks and also to Bank. These consid petitive consequences arising from approval of this erations lend weight for approval of the applica acquisition could be considered to be outweighed. tion. Considerations relating to the convenience Therefore, we would deny the application by this Applicant to acquire Dothan Bank. ‘All banking data are as of June 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 825 and needs of the community also lend weight for result in a significant increase in the concentration approval, since Applicant proposes to expand of banking resources in Alabama. Bank’s business development, data processing, Bank ($9 million in deposits) is the third largest and correspondent banking services. It is the in Barbour County with about 17 per cent of the Board’s judgment that the proposed transaction is market, but is the smallest bank located in the City in the public interest and that the application of Eufaula. Due to Alabama’s branching laws and should be approved. the fact that the closest banking subsidiary of On the basis of the record, the application is Applicant to Bank is some 80 miles away, there approved for the reasons summarized above. The is no significant existing competition between transaction shall not be consummated (a) before Applicant, its subsidiary banks, and Bank. There the thirtieth calendar day following the effective is little probability that Applicant would enter date of this Order or (b) later than three months Barbour County on a de novo basis because of after the effective date of this Order, unless such the small population growth and the low income period is extended for good cause by the Board, per capita figures of the area, and consummation or by the Federal Reserve Bank of Atlanta pursuant of the proposal would foreclose no substantial to delegated authority. potential competition. The Board concludes that By order of the Board of Governors, effective competitive considerations are consistent with ap August 17, 1972. proval of the application. Considerations related to the financial and man Voting for this action: Chairman Bums and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not agerial resources and future prospects of Appli voting: Governors Daane and Bucher. cant, its subsidiary banks, and Bank are regarded as generally satisfactory and consistent with ap (Signed) Tynan Sm ith, proval, particularly since, as noted in the Order [seal] Secretary of the Board. approving the acquisition of Peoples Bank and Trust Company by Applicant dated August 17, 1972, Applicant has made a commitment to pro vide additional capital for its subsidiary banks. The Order Approving Acquisition of Bank banking considerations are consistent with ap Central and State National Corporation of Ala proval of the application. Considerations relating bama, Birmingham, Alabama, a bank holding to the convenience and needs of the community company within the meaning of the Bank Holding lend some weight for approval, since Applicant Company Act, has applied for the Board’s ap proposes to provide trust services, data processing proval under § 3(a)(3) of the Act (12 U.S.C. and certain marketing functions which are not now 1842(a)(3)) to acquire 80 per cent or more of the readily available in the area. It is the Board’s voting shares of The Citizens’ Bank of Eufaula, judgment that the proposed transaction is in the Eufaula, Alabama (“Bank”). public interest and the application should be ap Notice of the application, affording opportunity proved. 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 three banks1 with aggregate or by the Federal Reserve Bank of Atlanta pursuant deposits of approximately $478 million, repre to delegated authority. senting about 8.1 per cent of deposits in commer By order of the Board of Governors, effective cial banks in Alabama.2 Consummation of the August 17, 1972. proposal would increase Applicant’s share of de posits by only .2 percentage points and would not Voting for this action: Vice Chairman Robertson and Gov ernors Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governors Mitchell and Daane. ^his includes Peoples Bank and Trust Company, Montgo mery, Alabama, whose acquisition by Applicant was approved (Signed) Tynan Smith, by the Board on August 17, 1972. 2A11 banking data are as of December 31, 1971. [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
826 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 THE ALABAMA FINANCIAL GROUP, INC., The financial and managerial resources and fu BIRMINGHAM, ALABAMA ture prospects of Applicant, its subsidiary banks, and Bank are regarded as generally satisfactory Order Approving Acquisition of Bank and these considerations are consistent with ap The Alabama Financial Group, Inc., Birming proval of the application. Considerations related ham, Alabama, a bank holding company within the to the convenience and needs of the community meaning of the Bank Holding Company Act, has to be served also are consistent with approval of applied for the Board’s approval under § 3(a)(3) the application. It is the Board’s judgment that of the Act (12 U.S.C. 1842 (a)(3)) to acquire the the proposed transaction is in the public interest successor by merger to Commercial Guaranty and that the application should be approved. Bank of Mobile, Mobile, Alabama (“Bank”). The On the basis of the record, the application is bank into which Bank is to be merged has no approved for the reasons summarized above. The significance except as a means to facilitate the transaction shall not be consummated (a) before acquisition of voting shares of Bank. Accordingly, the thirtieth calendar day following the effective the proposed acquisition is treated herein as the date of this Order or (b) later than three months proposed acquisition of the shares of Bank. after the effective date of this Order, unless such Notice of the application, affording opportunity period is extended for good cause by the Board, for interested persons to submit comments and or by the Federal Reserve Bank of Atlanta pursuant views, has been given in accordance with § 3(b) to delegated authority. of the Act. The time for filing comments and views By order of the Board of Governors, effective has expired, and none have been timely received. August 18, 1972. The Board has considered the application in light Voting for this action: Vice Chairman Robertson and Gov of the factors set forth in § 3(c) of the Act (12 ernors Mitchell, Brimmer, and Bucher. Absent and not voting: Chairman Burns and Governors Daane and Sheehan. U.S.C. 1842(c)). Applicant controls three banks with aggregate (Signed) Tynan Sm ith, deposits of approximately $470 million, repre [seal] Secretary of the Board. senting about 8.1 per cent of deposits of commer cial banks in Alabama.1 Consummation of this CENTRAL BANCOMPANY, proposal would increase Applicant’s share of de JEFFERSON CITY, MISSOURI posits by only .5 percentage points and would not result in a significant increase in the concentration Order Approving Acquisition of Bank of banking resources in the State. Central Bancompany, Jefferson City, Missouri, Bank (deposits of about $27 million) is the a bank holding company within the meaning of fourth largest bank in the Mobile market with the Bank Holding Company Act, has applied for control of approximately 4.2 per cent of area the Board’s approval under § 3(a)(3) of the Act deposits. There is no significant existing competi (12 U.S.C. 1842(a)(3)) to acquire 55 per cent or tion between any of Applicant’s subsidiary banks more of the voting shares of The First National and Bank, nor is there a reasonable probability Bank of Clayton, Clayton, Missouri (“Bank”). of competition developing in the future due to the Notice of the application, affording opportunity distances between Bank and Applicant’s banking for interested persons to submit comments and subsidiaries (the closest banking subsidiary is lo views, has been given in accordance with § 3(b) cated about 175 miles from Mobile) and Ala of the Act. The time for filing comments and views bama’s restrictive branching laws. Affiliation by has expired, and the Board has considered the Bank with Applicant could, however, enable it to application and all comments received in light of become a stronger alternative competitive force in the factors set forth in § 3(c) of the Act (12 U.S.C. the concentrated Mobile market, where the top two 1842(c)). banking organizations control over 70 per cent of Applicant, the tenth largest multi-bank holding deposits. The Board concludes that competitive company in Missouri on the basis of deposits, has considerations are consistent with approval of the two subsidiary banks with aggregate deposits of application. $134.1 million, representing 1.1 per cent of the *A11 banking data are as of December 31, 1971, adjusted total commercial bank deposits in the State. (All to reflect Applicant’s acquisition of The First National Bank banking data are as of December 31, 1971, ad of Dothan, Dothan, Alabama, and Peoples National Bank of justed to reflect holding company acquisitions and Huntsville, Huntsville, Alabama, approved by the Board in an Order dated August 17, 1972. formations approved by the Board through June Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 827 30, 1972.) Consummation of the proposal herein period is extended for good cause by the Board, would increase Applicant’s share of commercial or by the Federal Reserve Bank of St. Louis bank deposits in the State by less than 1 per cent, pursuant to delegated authority. and Applicant would become the State’s ninth By order of the Board of Governors, effective largest multi-bank holding company. August 18, 1972. Bank ($103.1 million deposits), located in Voting for this action: Vice Chairman Robertson and Gov Clayton nine miles west of downtown St. Louis, ernors Mitchell, Brimmer, and Bucher. Absent and not voting: is the ninth largest of 108 banks in the St. Louis Chairman Burns and Governors Daane and Sheehan. market area, and holds about 1.7 per cent of the (Signed) Tynan Smith, deposits in that market. There is no significant [seal] Secretary of the Board. existing competition between Bank and Appli cant’s present subsidiaries, the closest of which is over 100 miles west of Clayton. Furthermore, NORTHERN STATES FINANCIAL in light of the distances separating Applicant’s subsidiary banks and Bank, Missouri’s restrictive CORPORATION, DETROIT, MICHIGAN branching laws, and the unlikelihood that Appli TWIN GATES CORPORATION, cant would enter the St. Louis area de novo, there WILMINGTON, DELAWARE seems to be little prospect for the development of significant competition between Bank and Order Approving Transactions under Bank Applicant’s subsidiaries. It appears, therefore, that Holding Company Act consummation of the proposal herein would not likely have any adverse effects on competition and Northern States Financial Corporation, Detroit, should enable Bank to compete more effectively Michigan (“Northern States”), has applied for the with the larger banks in its market. Board’s approval, under § 3(a)(1) of the Bank The financial and managerial resources and Holding company Act (12 U.S.C. 1842(a)(1)), for the formation of a bank holding company through prospects of Applicant and its subsidiaries are acquisition of 100 per cent of the voting shares regarded as satisfactory and consistent with ap proval of the application. The same conclusions (less directors’ qualifying shares) of the successor apply with respect to Bank’s management. With by merger to City National Bank of Detroit, De troit, Michigan (“City National”). The bank into regard to the financial resources of Bank, capital which City National is to be merged has no sig is lower than the Board considers desirable for subsidiary banks of a holding company. In view nificance except as a means to facilitate the ac quisition of all the voting shares of City National. of the Board’s concern in this area, Applicant Accordingly, the proposed acquisition of the suc proposes to augment Bank’s capital through the cessor organization is treated herein as the purchase of $1 million of Bank’s common stock and the initiation of a dividend retention program proposed acquisition of City National. As an inci at Bank. Implementation of these measures should dent to the acquisition of City National, Northern strengthen Bank’s financial condition and enhance States would acquire indirectly 13.2 per cent of the voting shares of National Bank of Rochester, its prospects. These considerations lend weight Rochester, Michigan (“Rochester Bank”), which toward approval of the application. As a result of its improved financial condition and affiliation with shares are held by City National’s profit sharing trust for the benefit of City National’s employees; Applicant, Bank should be able to improve and by virtue of § 2(g)(2) of the Act, Northern States expand its range of services. Accordingly, consid erations relating to convenience and needs are would be deemed to control such shares upon its acquisition of City National. consistent with approval of the application. It is In a related application, Twin Gates Corpora the Board’s judgment that consummation of the tion, Wilmington, Delaware (“Twin Gates”), a proposed acquisition would be in the public inter registered bank holding company owning directly est, and that the application should be approved. 22.5 per cent of the voting shares of City National1 On the basis of the record, the application is and 20 per cent of the voting shares of Rochester approved for the reasons summarized above. The transaction shall not be consummated (a) before *In addition, ten separate trusts established for the benefit the thirtieth calendar day following the effective of the shareholders of Twin Gates hold an additional 15.8 per date of this Order or (b) later than three months cent of the outstanding shares of City National. Control of said shares is attributed to Twin Gates by virtue of § 2(g)(2) after the effective date of this Order, unless such of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
828 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Bank,1 has applied to the Board for approval to common ownership. On the basis of the facts of exchange the interest it holds in City National for record, notably the close working association of 22.5 per cent of the voting shares of Northern the two banks, the common ownership, and the States. unlikelihood that the banks would become disaf Notice of the applications, affording opportunity filiated in the reasonably near future, the Board for interested persons to submit comments and concludes that consummation of the proposal views, has been given in accordance with § 3(b) would not have any adverse effects on existing of the Act. The time for filing comments and views or potential competition. has expired, and the Board has considered the Northern States, having been recently organ applications and all comments received in light of ized, has no operating history; its financial condi the factors set forth in § 3(c) of the Act (12 U.S.C. tion, managerial resources, and prospects depend 1842(c)). on those of its proposed subsidiary, City National, Northern States was organized recently in order at least for the near future. The financial and to acquire shares of City National. As a result of managerial resources of Twin Gates appear satis consummation of the proposed transaction, Twin factory, and its prospects are considered favorable. Gates would acquire 22.5 per cent of the out The financial condition and managerial resources standing shares of Northern States through the and prospects of City National and Rochester Bank exchange of shares that it holds in City National are regarded as generally satisfactory and consis for shares of Northern States; and Northern States tent with approval of the applications. would become a subsidiary of Twin Gates; City The capital position of City National is low for National would become a direct subsidiary of a subsidiary of a bank holding company and should Northern States and an indirect subsidiary of Twin be strengthened. The Board has previously ex Gates; Rochester Bank would remain a subsidiary pressed the view that a holding company should of Twin Gates; Twin Gates would continue to agree to strengthen the capital position of each of control, in the aggregate, approximately $539.9 its subsidiaries to a desirable level as a condition million in deposits, which represents about 2.3 per to Board approval of the bank holding company cent of the total commercial bank deposits in the formation or expansion. Northern States has com State. (All banking data are as of December 31, mitted itself to a capital improvement program that 1971.) will, upon its implementation, increase the capital City National ($529 million of deposits), head account of City National by $25 million. As a quartered in downtown Detroit, operates 30 offices result of this injection of capital, the financial throughout the Detroit SMSA, and holds about 4 condition of City National would be strengthened per cent of the commercial bank deposits therein. and its prospects enhanced. The improvement ex Rochester Bank ($10.9 million of deposits), lo pected in City National’s capital account as a result cated in a suburb about 24 miles from City Na of Northern States’ capital improvement program tional’s main office in downtown Detroit, operates and the greater access that Northern States is likely its only office in Avon township, and holds about to have to capital markets than either of the two .04 per cent of the commercial bank deposits in banks alone lend weight for approval of the ap the Detroit market. In the Detroit market, City plications. National and Rochester Bank rank, respectively, Inasmuch as the proposed transactions involve as the 6th and 37th largest banking organizations essentially a corporate reorganization, there would among 43 banking organizations. An office of City be no immediate effects on the convenience and National is located 3.3 miles south of Rochester needs of the communities involved. However, Bank. However the banks are already subsidiaries considerations relating to the convenience and of Twin Gates and do not appear to be in com needs of the communities are consistent with ap petition with each other. Rochester Bank was proval of the applications. It is the Board’s judg organized de novo in 1964 by individuals asso ment that consummation of the proposal would be ciated with City National and has been operated in the public interest and that the applications more or less as a branch of City National under should be approved. On the basis of the record, the applications are Rochester Bank is also a subsidiary of Twin Gates by virtue of the fact that 20 per cent of Rochester Bank’s voting shares approved for the reasons summarized above. The are owned directly by Twin Gates, and control of an additional transactions shall not be consummated (a) before 13.2 per cent of Rochester Bank’s voting shares is attributed the thirtieth calendar day following the effective to Twin Gates because of control of such shares by a subsidiary (City National) of Twin Gates. date of this Order, (b) later than three mon^is after Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 829 the effective date of this Order unless such period Company of Elizabeth, N.J. (“Central”), operate is extended for good cause by the Board, or by in the market. Together they hold less than 1.3 the Federal Reserve Bank of Chicago pursuant per cent of total market deposits and Applicant to delegated authority. ranks as the fifteenth largest banking organization By order of the Board of Governors, effective in the market based on market deposits. After August 22, 1972. consummation of the proposed acquisition, Appli cant would rank tenth, holding approximately 2.2 Voting for this action: Governors Mitchell, Brimmer, Shee per cent of market deposits. Bank derives 2.7 per han, and Bucher. Absent and not voting: Chairman Burns and Governors Robertson and Daane. cent of its loans, 1.3 per cent of its demand deposits, and 0.5 per cent of its time and savings (Signed) Tynan Sm ith, deposits from areas served by Peoples and Central. [seal] Secretary of the Board. Conversely, Peoples and Central derive an insig nificant portion of their loan and deposit business UNITED JERSEY BANKS, from Bank’s service area. Consummation of the HACKENSACK, NEW JERSEY proposed transaction would, therefore, eliminate no significant existing competition. Due to Bank’s Order Approving Acquisition of Bank conservative operation, its limited branching op United Jersey Banks, Hackensack, New Jersey, portunities, and the distances separating its a bank holding company within the meaning of branches from those of Applicant’s subsidiary the Bank Holding Company Act, has applied for banks, it is unlikely that consummation of the the Board’s approval under § 3(a)(3) of the Act proposal would foreclose significant potential (12 U.S.C. 1842 (a)(3)) to acquire all of the voting competition between Bank and any of Applicant’s shares (less directors’ qualifying shares) of The present subsidiary banks. Second National Bank of Orange, Orange, New Taking into account Applicant’s commitment to Jersey (“Bank”). add $15 million to the equity capital accounts of Notice of the application, affording opportunity Peoples discussed in the Board’s Order of this date for interested persons to submit comments and with respect to The Dover Trust Company, con views, has been given in accordance with § 3(b) siderations relationg to the financial and manage of the Act. The time for filing comments and views rial resources and prospects of Bank and Applicant has expired, and the Board has considered the and its subsidiaries are considered satisfactory and application and all comments received in light of consistent with approval of the application. Al the factors set forth in § 3(c) of the Act (12 U.S.C. though the proposed new services that Applicant 1842(c)). intends to make available through Bank are gener Applicant has twelve subsidiary banks with total ally available from other banks in the communities deposits of approximately $1.1 billion and ranks to be served, consummation of Applicant’s pro as the second largest multi-bank holding company posal would create an alternative source of such in New Jersey with 6.3 per cent of total deposits services as expanded installment, commercial, and in commercial banks in the State.1 (All banking mortgage lending, international banking, data data are as of December 31, 1971 unless otherwise processing, and accounting. The provision of an shown.) As a result of consummation of the pro additional source of these services should better posal herein, Applicant’s rank, in relation to the enable Bank to compete in a market in which more State’s other bank holding companies, would re than 53 per cent of total deposits are held by the main unchanged. three largest banking organizations. Consid Bank ($38 million in deposits), with three of erations bearing on the convenience and needs of fices in the city of Orange (in Essex County) the communities to be served are consistent with operates in the Greater Newark banking market. approval of the application. It is the Board’s judg Of the 45 banking organizations operating in that ment that the proposed transaction is in the public market, Bank ranks nineteenth, based on total interest and should be approved. market deposits. Two of Applicant’s subsidiary On the basis of the record, including the Board’s banks, Peoples Trust of New Jersey (“Peoples”), understanding that Applicant will add $15 million Applicant’s lead bank, and Central Home Trust to the equity capital accounts of Peoples, and for ^his does not include The Dover Trust Company, Dover, the reasons summarized above, the application is New Jersey. By order of this date, the Board has approved approved. The transaction shall not be consum Applicant’s acquisition of 100 per cent of the voting shares of that bank. mated (a) before the thirtieth calendar day follow Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
830 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ing the effective date of this Order or (b) later transaction will not adversely affect existing com than three months after the effective date of this petition in the Dover-Roxbury market, as Appli Order, unless such period is extended for good cant does not serve that market. Consummation cause by the Board, or by the Federal Reserve may eliminate some competition in the Hack Bank of New York pursuant to delegated author ettstown market, since Applicant’s lead bank, ity. Peoples Trust of New Jersey (“Peoples”), By order of the Board of Governors, effective operates branch offices in that market and held August 22, 1972. 19.5 per cent of total market deposits. The six offices of Peoples in that market are all within Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent fifteen miles of Dover. Bank’s branch in the mar and not voting: Governor Bucher. ket is approximately 10.3 miles east of the nearest (Signed) Tynan Smith, office of Peoples. As of December 31, 1971, Bank [seal] Secretary of the Board. derived 1.1 per cent of its deposits and 1.7 per cent of its loans from the service area of Peoples. Conversely, Peoples derived less than 0.1 per cent Order Approving Acquisition of Bank of its deposits from Bank’s service area. Con United Jersey Banks, Hackensack, New Jersey, summation of the proposal would eliminate no a bank holding company within the meaning of significant existing competition in the Hack the Bank Holding Company Act, has applied for ettstown Market. the Board’s approval under § 3(a)(3) of the Act Consummation of the proposal would have only (12 U.S.C. 1842(a)(3)) to acquire all of the voting slightly adverse effects on potential competition shares of The Dover Trust Company, Dover, New in both the Dover-Roxbury and Hackettstown Jersey (“Bank”). markets. Applicant’s four subsidiary banks located Notice of the application, affording opportunity in the First Banking District are permitted to for interested persons to submit comments and branch into the Dover-Roxbury market. However, views, has been given in accordance with § 3(b) nine of the thirteen communities comprising that of the Act. The time for filing comments and views market are afforded home office or branch office has expired, and none have been timely received. protection and two others lack sufficient population The Board has considered the application in light to support additional banking offices. Applicant of the factors set forth in § 3(c) of the Act (12 could enter the Dover-Roxbury market by the U.S.C. 1842(c)). establishment of a de novo bank or by acquisition Applicant controls 12 banks1 holding deposits of one of the three smaller independent banks in of $1.1 billion, representing 6.3 per cent of total that market. However, its acquisition of Bank deposits in commercial banks in New Jersey.2 should be a pro-competitive factor in that Bank, Acquisition of Bank would not significantly in which has been rather conservatively managed in crease Applicant’s control of commercial bank the past, should, under Applicant’s guidance, be deposits in the State. come a stronger competitive force vis a vis the Bank, with deposits of $41.3 million, as of June six larger banks (four of which are subsidiaries 30, 1970, controlled approximately 19.4 per cent of multi-bank holding companies) with which it of deposits in the Dover-Roxbury banking market, competes in the Dover-Roxbury market. Bank’s held by commercial banks. Based on share of branch in the Hackettstown market controls de deposits in the market, Bank ranks second among posits of less than one million dollars. Due to the ten banking organizations in that market, al Bank’s size and conservative management and the though Bank ranks seventh among the banking presence of five of the State’s multi-bank holding organizations operating in the market, based on companies in the market it is unlikely that, absent total deposits held. Bank also operates a branch this proposal, Bank would become a significant office in the Hackettstown banking market. competitive force in the market. Consummation It appears that consummation of the proposed of the proposal therefore would not eliminate a significant possibility of the development of sub ‘This does not include the Second National Bank of Orange, stantial competition between Bank and Applicant. Orange, New Jersey. By order of this date, the Board has approved Applicant’s acquisition of 100 per cent of the voting Applicant has indicated its willingness to in shares (less directors’ qualifying shares) of that bank. crease the equity capital of Bank by $1 million 2A11 banking data are as of December 31, 1971, unless and the equity capital of Peoples by $15 million otherwise indicated, and include formations and acquisitions through June 30, 1972. should the Board deem it necessary. The Board has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 831 concluded that both Bank and Peoples are in need establishment of a new bank would be less anti of such amounts of equity capital. Based on the competitive than, and therefore preferable to, the Board’s understanding that Applicant will make instant proposal, as would be acquisition of one such infusions of equity capital, considerations of the three smaller independent banks in the relating to the financial resources and future pros Dover-Roxbury market. pects of Applicant, its subsidiaries, and Bank lend Consummation of the proposed acquisition will weight toward approval. Trust, data processing, also foreclose the development of competition and expanded loan services Applicant proposes to between Bank and Peoples in the Hackettstown provide through Bank are generally available in market that could derive from further branching the communities to be served. However, con by either within that market. The Hackettstown summation of the proposed transaction would market is one of the fastest growing areas in the create another alternative source of such services. First Banking District and, indeed, in the State. Thus, considerations relating to the convenience Six municipalities in the market are open to and needs of those communities are consistent with branching. Consummation of the acquisition will approval of the application. It is the Board’s judg therefore adversely affect competition in two mar ment that the proposed transaction is in the public kets. interest and should be approved. Major holding companies should be discouraged On the basis of the record, including the Board’s from seeking to acquire important local competi understanding that Applicant will make infusions tors in markets in which they are already repre of equity capital as referred to above, and for the sented or are likely to enter through less anticom reasons summarized above, the application is ap petitive means, as in the case here, especially proved. The transaction shall not be consummated when, as in this case, there are no derivative public (a) before the thirtieth calendar day following the benefits sufficient to outweigh the adverse effects effective date of this Order or (b) later than three upon potential competition. months after the effective date of this Order, unless I therefore would deny the application. such period is extended for good cause by the Board, or by the Federal Reserve Bank of New ZIONS UTAH BANCORPORATION, York pursuant to delegated authority. SALT LAKE CITY, UTAH By order of the Board of Governors, effective August 22, 1972. Order Approving Acquisition of Bank Zions Utah Bancorporation, Salt Lake City, Voting for this action: Chairman Burns and Governors Mitchell, Daane, Brimmer, and Sheehan. Voting against this Utah, a bank holding company within the meaning action: Governor Robertson. Absent and not voting: Governor of the Bank Holding Company Act, has applied Bucher. for the Board’s approval under § 3(a)(3) of the (Signed) Tynan Sm ith, Act (12 U.S.C. 1842(a)(3)) to acquire all of the [seal] Secretary of the Board. voting shares (less director’s qualifying shares) of Zions National Bank of Ogden, Ogden, Utah, a Dissenting Statement of Governor proposed new bank (“Bank”). Robertson Notice of the application, affording opportunity for interested persons to submit comments and Consummation of the acquisition proposed in views, has been given in accordance with § 3(b) this case would have adverse effects on potential of the Act. The time for filing comments and views competition in both the Dover-Roxbury and has expired, and the Board has considered the Hackettstown markets. Under New Jersey law, the application, the recommendation of the Comp four subsidiary banks of Applicant located in New troller of the Currency that the application should Jersey’s First Banking District are permitted to be approved, and all other comments received in branch into the Dover-Roxbury market. Applicant light of the factors set forth in § 3(c) of the Act could enter the Dover-Roxbury market by estab (12 U.S.C. 1842(c)). lishment of a de novo bank. It has the financial Applicant, the second largest banking organi and managerial resources to pursue this method zation in Utah, controls one bank which has total of entry and has demonstrated its ability to enter deposits of approximately $339.2 million,1 repre markets de novo by the establishment of a new bank in Cherry Hill Township and its application ^eposit data are as of December 31, 1971 and market data for permission to establish a new bank in Lake are as of June 30, 1970, adjusted to reflect holding company wood. De novo entry through branching or the formations and acquisitions through June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
832 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 senting 16.1 per cent of the total deposits in The provision of any credit, property or services commercial banks in the State. Since Bank is a by the holding company or any affiliate thereof proposed new bank, no existing competition would shall not be subject to any condition which, if be eliminated nor would concentration be in imposed by a bank, would constitute an unlawful creased in any relevant area. tie-in arrangement under § 106 of the Bank Hold Applicant’s acquisition of Bank represents its ing Company Amendments of 1970. The non initial commercial banking entry into the Ogden banking activities of Applicant shall not be altered banking market. Applicant’s subsidiary bank, in any significant respect from those engaged in whose nearest office is located 20 miles from at the time of the filing of the application herein Bank, is prohibited by State law from branching nor shall they be provided at any location other into the Ogden banking market. Applicant’s ac than as described in said application, except upon quisition of Bank would likely have a procompeti compliance with the procedures of § 225.4(b)(1) tive effect by introducing a new competitor into of Regulation Y; and no merger, or consolidation, the Ogden market, where three of the six banks or acquisition of assets other than in the regular control over 90 per cent of total market deposits. course of business, to which Applicant or any Applicant’s entry into this market should stimulate affiliate thereof is a party shall be consummated competition without having adverse effects on any without prior Board approval. competing bank. On the basis of the record, the application is The financial and managerial resources of approved for the reasons summarized above. The Applicant and its subsidiaries are regarded as sat transaction shall not be consummated (a) before isfactory and consistent with approval. Applicant the thirtieth calendar day following the effective has recently augmented the capital position of its date of this Order or (b) later than three months lead bank by contributing a portion of the proceeds after that date, and (c) Zions National Bank of from a sale of Applicant’s stock. Applicant has Ogden, Ogden, Utah, shall be opened for business indicated that this contribution is a permanent not later than six months after the effective date investment. Since Bank will be able to draw upon of this Order. Each of the periods described in Applicant’s financial and managerial resources, its (b) and (c) may be extended for good cause by prospects seem favorable and the banking factors the Board, or by the Federal Reserve Bank of San are consistent with approval. Applicant proposes Francisco pursuant to delegated authority. to offer extended banking hours and to offer addi By order of the Board of Governors, effective tional services, such as guaranteed student loans August 29, 1972. at Bank. Considerations relating to the conve Voting for this action: Vice Chairman Robertson and Gov nience and needs of the communities to be served ernors Mitchell, Daane, Sheehan, and Bucher. Voting against lend weight toward approval since Bank will be this action: Governor Brimmer, on the basis of principles previously discussed in his Dissenting Statement in connection come an additional source of full banking services with the Board’s Order approving the application of First in a community that has a high ratio of population National City Corporation to acquire the successor by merger to banking offices. It is the Board’s judgment that to The National Exchange Bank of Castleton-on-Hudson (37 Federal Register 14259). Absent and not voting: Chairman consummation of the proposed acquisition would Burns. be in the public interest and that the application (Signed) Tynan Sm ith, should be approved. [seal] Secretary of the Board. Applicant is engaged, either directly or through subsidiaries, in several nonbanking businesses. The approval herein neither provides authority to FINANCIAL SECURITIES CORPORATION, Applicant to continue in the nonbank activities nor LAKE CITY, TENNESSEE to retain nonbank shares nor requires the Applicant to modify or terminate said activities or holdings. Order Denying Applications to Remain However, consummation of the proposal herein is a Bank Holding Company and to subject to the continuing authority of the Board Retain Shares of Banks to require modification or termination of such Financial Securities Corporation, Lake City, activities or holdings (within a period no shorter Tennessee, has applied for the Board’s approval than two years), if the Board determines that the under § 3(a)(1) of the Bank Holding Company Act continued combination of banking and nonbanking (12 U.S.C. 1842(a)(1)) to remain a bank holding interests is likely to have an adverse effect on the company through the retention of 65.12 per cent public interest. of the voting shares of First Farmers Bank, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 833 Athens, Tennessee, and of 50.56 per cent of the it acquired the aforementioned shares in August voting shares of First National Bank of Anderson 1971, from the Athens Financial Co., a partner County, Lake City, Tennessee. Financial Securi ship, in the mistaken belief that such a reorgan ties Corporation has also applied for the Board’s ization into corporate form did not require Board approval under § 3(a)(3) of the Act to retain 31.6 approval. The partnership, the Athens Financial per cent (included in the above-mentioned 65.12 Co., acquired the aforementioned 50.56 per cent per cent) of the voting shares of First Farmers interest in Anderson Bank and a 33.52 per cent Bank, Athens, Tennessee. interest (included in the aforementioned 65.12 per Notice of receipt of the applications, affording cent) in Farmers Bank prior to December 31, opportunity for interested persons to submit com 1970; such acquisitions did not require Board ments and views, has been given in accordance approval since a partnership did not fall within with § 3(b) of the Act. The time for filing com the definition of “company” in the Bank Holding ments and views has expired, and the Board has Company Act until that date. considered the applications and all comments re In a related application, Applicant has applied ceived in light of the factors set forth in § 3(c) for the Board’s approval under section 3(a)(3) of of the Act (12 U.S.C. 1842(c)). the Bank Holding Company Act (12 U.S.C. On the basis of the record, the applications are 1842(a)(3)) to retain 31.6 per cent of the voting denied for the reasons set forth in the Board’s shares of Farmers Bank, which Applicant states Statement of this date. Applicant is directed to take were acquired by the Athens Financial Co. in appropriate measures to effect a divestiture of January 1971 in the mistaken belief that such control of First Farmers Bank, Athens, Tennessee, action did not require Board approval. No equal and of First National Bank of Anderson County, offer was made to the minority shareholders of Lake City, Tennessee, and is granted until year- the banks involved. end 1972 to effect said divestiture, unless such Statutory considerations. Applicant was organ period is extended for good cause by the Board ized in August 1971 for the purpose of acquiring or by the Federal Reserve Bank of Atlanta. No the interests in two banks held by a partnership later than two months from the effective date of made up of three individuals who are now the sole the Order herein, Applicant is required to report stock holders of Applicant. By virtue of its own to the Federal Reserve Bank of Atlanta on the ership interests in Farmers Bank and Anderson progress of said divestiture. A reduction of share Bank, Applicant controls deposits of $27 million, holdings to 5 per cent or less of the outstanding which represents .3 per cent of the total commer voting shares of each of the banks involved would cial bank deposits in the State, and is the smallest be regarded by the Board as appropriate in con of the State’s seven bank holding companies. (All nection with such divestiture. banking data are as of December 31, 1971.) By order of the Board of Governors, effective Anderson Bank ($14.8 million of deposits) is August 29, 1972. the fourth largest of five banks located in Anderson banking market, approximated by all of Anderson Voting for this action: Chairman Burns and Governors Robertson, Daane, and Sheehan. Absent and not voting: Gov County and portions of Knox and Campbell coun ernors Mitchell, Brimmer, and Bucher. ties, and controls approximately 15 per cent of (Signed) Tynan Smith, the total deposits therein. Farmers Bank ($12.2 [seal] Secretary of the Board. million of deposits) is the third largest of ten banks competing in the Athens banking market, approx Statement imated by all of McMinn County and portions of Meigs, Monroe, and Polk counties, and controls Financial Securities Corporation, Lake City, about 13 per cent of the deposits in that banking Tennessee, has applied for the Board’s approval market. It appears that Anderson Bank and Farm under section 3(a)(1) of the Bank Holding Com ers Bank do not now compete with each other. pany Act (12 U.S.C. 1842(a)(1)) to remain a bank Nor does it appear likely that they would compete holding company through the retention of 65.12 in the future primarily due to the distances per cent of the voting shares of First Farmers separating their offices (at least 60 miles) and the Bank, Athens, Tennessee (“Farmers Bank”), and presence of banks in the intervening areas. Ap 50.56 per cent of the voting shares of First Na proval of Applicant’s proposal would not have an tional Bank of Anderson County, Lake City, Ten adverse effect on competition in any relevant area. nessee (“Anderson Bank”). Applicant states that The Board concludes that considerations relating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
834 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 to competition are consistent with, but lend no needs of the communities to be served. Accord weight toward, approval of the applications. ingly, approval of the applications is not in the In reviewing the financial resources of Appli public interest and the applications should be de cant, as is required by the Bank Holding Company nied. Act, the Board finds that the financial resources of Applicant are not up to Board standards for COMMUNITY BANKS OF FLORIDA, INC., a bank holding company. Upon acquisition of the SEMINOLE, FLORIDA shares in the two banks from the partnership in August 1971, Applicant assumed a debt of $1.6 Order Approving Formation of Bank Hold million which had been incurred by the partnership ing Company when it made its original stock purchases in the Community Banks of Florida, Inc., Seminole, two banks. As of September 1971, Applicant’s Florida, has applied for the Board’s approval under balance sheet disclosed shareholders’ equity of § 3(a)(1) of the Bank Holding Company Act (12 only $5,000, compared to liabilities of $1.6 mil U.S.C. 1842(a)(1)) of formation of a bank holding lion. company through acquisition of 80 per cent or On previous occasions, the Board has expressed more of the voting shares of Bank of Seminole, its concern about the use of debt by a holding Seminole (P. O. Largo) (“Seminole Bank”); First company to finance the purchase of bank stock. Commercial Bank, St. Petersburg (“Commercial The presence of significant debt limits a holding Bank”); First Community Bank, Largo (“Largo company’s ability to assist its subsidiary banks Bank”); First Bank of West Pasco, Pasco County with capital if such a need arises. Furthermore, (“Pasco Bank”), and Northside Community a heavy debt servicing obligation may result in Bank, St. Petersburg (“Northside Bank”), all Applicant being unable to service its debt without located in Florida. unduly straining the bank’s earnings or undertak Notice of the application, affording opportunity ing a program of substantial management fees, for interested persons to submit comments and practices which would impair the capital growth views, has been given in accordance with § 3(b) of the banks involved and operate to the detriment of the Act. The time for filing comments and views of the minority shareholders of the banks. In the has expired, and the Board has considered the present instance, the Board considers that the level application and all comments received in light of of debt in the holding company is so disapportion- the factors set forth in § 3(c) of the Act (12 U.S.C. ate to the equity interests of the shareholders that 1842(c)). the public interest requires denial of Applicant’s Applicant was formed for the purpose of ac proposal. quiring the five proposed subsidiary banks, all of It appears that the major banking needs of each which were organized by the same individuals and of the areas served by Applicant’s subsidiaries are have functioned as a group since their establish being met by existing institutions and no signifi ment. Upon the acquisition of Seminole Bank cant public benefits would result from approval of (deposits of $42.6 million); Commercial Bank the applications. Rather, the ability of each of (deposits of $11.7 million); Largo Bank (deposits Applicant’s subsidiaries to continue to improve or of $5.9 million); and the Pasco and Northside expand the services offered could be hampered Banks which were recently opened, Applicant because of a need by Applicant to draw on the would control aggregate deposits of $60.2 million financial resources of its subsidiaries in order to among commercial banks in Florida and would retire Applicant’s debt. Considerations relating to rank as the State’s twenty-sixth largest banking convenience and needs of the communities to be organization, with .37 per cent of total State de served lend no weight toward approval of the posits. The proposal would represent no significant applications. increase in the concentration of banking resources On the basis of facts of record, the Board in the local markets or on a Statewide basis. concludes that the high level of debt carried and Seminole, Commercial, Largo, and Northside the state of the financial recources of Applicant Banks are located in Pinellas County in the South are adverse factors bearing on the financial condi Pinellas Banking Market where the four banks tion and prospects of Applicant and the banks control 6.14 per cent of total deposits as the sixth involved. These adverse findings are not out largest of the 15 banking organizations represented weighed by any procompetitive factors nor by in the market. Six multi-bank holding companies considerations relating to the convenience and hold 49.62 per cent of deposits in this market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 835 The fifth proposed acquisition, Pasco Bank, is period is extended for good cause by the Board located in Pasco County, some 20 miles to the or by the Federal Reserve Bank of Atlanta pursuant north. It was opened for business in late January to delegated authority. of this year and ranks as the smallest bank in the By order of the Board of Governors, effective county. It appears that the change in corporate August 29, 1972. structure for the group represented by this ap Voting for this action: Vice Chairman Robertson and Gov plication would have no adverse effects on any ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab of the competing banks in the relevant market sent and not voting: Chairman Burns. areas. (Signed) Tynan Smith, The Seminole and Largo Banks are located [seal] Secretary of the Board. approximately three miles apart, but their service areas do not overlap, and there is no significant BEZANSON INVESTMENTS, INC., present competition between them. The remaining MORAMERICA FINANCIAL CORPORATION three banks are located from 6 to 26 miles apart. CEDAR RAPIDS, IOWA There is no meaningful intergroup competition that Order Denying Acquisition of Bank would be eliminated between any of the subject banks by the proposed formation. All five banks Bezanson Investments, Inc., Cedar Rapids, have been closely affiliated since their inception. Iowa, and its subsidiary, MorAmerica Financial Senior management of each bank is vested in the Corporation, Cedar Rapids, Iowa, each of which same individuals and banking services are inter is a registered bank holding company, have ap changed. It appears that this dependence within plied for the Board’s approval under § 3(a)(3) of the group is permanently established, and there the Bank Holding Company Act (12 U.S.C. exists little likelihood for disaffiliation. Competi 1842(a)(3)), to acquire 76 per cent or more of the tive considerations are consistent with approval of voting shares of First Trust and Savings Bank, the application. Wheatland, Iowa. Notice of receipt of the applications, affording Although Applicant was recently organized and opportunity for interested persons to submit com has no operating history, its financial structure and ments and views, has been given in accordance proposed management are deemed to be generally with § 3(b) of the Act. The time for filing com satisfactory. The subject banks have capable man ments and views has expired, and all those re agements and their financial conditions are deemed ceived have been considered. The Board has con satisfactory except for needed improvement in the sidered the applications in light of the factors set capital account of Seminole Bank which Applicant forth in § 3(c) of the Act (12 U.S.C. 1842(c)). has agreed to provide. Banking factors are consis On the basis of the record, each of the applica tent with approval of the application, and prospects tions is denied for the reasons set forth in the for Applicant and the group of banks appear fa Board’s Statement of this date. vorable. The primary banking needs of both mar By order of the Board of Governors, effective ket areas are served by existing financial institu August 29, 1972. tions; however, it appears that efficiencies of operation would result from the corporate struc Voting for this action: Vice Chairman Robertson and Gov ture, and the public would derive benefits from ernors Mitchell, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Daane. trust services proposed to be offered at each bank. (Signed) Tynan Smith, Considerations relating to the convenience and [seal] Secretary of the Board. needs of the communities to be served are consis tent with and lend some support toward approval of the application. It is the Board’s judgment that Statement the proposed transaction would be in the public Nature of transaction. Bezanson Investments, interest and that the application would be ap Inc., Cedar Rapids, Iowa, (“Bezanson”) and its proved. subsidiary, Mor America Financial Corporation, On the basis of the record, the application is Cedar Rapids, Iowa (“MorAmerica”), both of approved for the reasons summarized above. The which are registered bank holding companies, transaction shall not be consummated (a) before have applied for the Board’s approval, under § the thirtieth calendar day following the effective 3(a)(3) of the Bank Holding Company Act (12 date of this Order or (b) later than three months U.S.C. § 1842(a)(3)), of the acquisition of 76 per after the effective date of this Order, unless such cent or more of the voting shares of First Trust Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
836 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 and Savings Bank, Wheatland, Iowa (“Bank”). nursing and convalescent care centers, a new and The shares of Bank are proposed to be acquired used car dealership, real estate development, and directly by MorAmerica, and Bezanson thus would various servicing companies, among other activi indirectly acquire such shares. ties. Statutory considerations. Applicants presently As of September 30, 1971, MorAmerica had control Jackson State Bank and Trust Company, a consolidated debt to equity ratio of 376.8 per Maquoketa, Iowa, (“Jackson Bank”) with depos cent. By March 31, 1972, MorAmerica’s consoli its of $27.8 million, which accounts for 0.4 per dated debt to equity ratio had increased to 388.9 cent of total commercial bank deposits in Iowa. per cent. Bank (with deposits of $8.6 million) is the Data with respect to MorAmerica’s consolidated second largest of seven banks in the Wheatland net income for the past 5 years indicates that banking market, which is approximated by south earnings do not average amounts sufficient to am western Clinton County and northeastern Cedar ortize its consolidated debt in a reasonable period County. Bank has an office in the Maquoketa of time. Consolidated statements of changes in banking market (approximated by southwestern financial position of MorAmerica for 1970 and Jackson County and northwestern Clinton County) 1971 show that MorAmerica has been retiring its and is the third largest of five banks competing debt securities as they become due from the pro there. Jackson Bank is the dominant bank in the ceeds of new debt issues, and debt repayment Maquoketa market, controlling 53.2 per cent of schedules suggest that MorAmerica will likely commercial bank deposits in that area. Con refinance a significant portion of its debt in the summation of the proposed transaction would in future. Apparently, MorAmerica has no immediate crease Applicants’ share of the Maquoketa market plans to sell additional capital stock to strengthen to 56.1 per cent. (Banking data are as of December its equity position, nor does it plan to reduce debt 31, 1971, except that market shares were com significantly from earnings or cash reserves. puted as of June 30, 1970.) Although some exist On the facts presented, the Board is unable to ing competition between Bank and Applicants’ conclude that MorAmerica would be a source of subsidiary bank may have been eliminated in early strength for banks within its system. The policies 1971 by the acquisition of Bank by Mr. Peter F. of Applicants’ management are regarded by the Bezanson, president and principal shareholder of Board as incompatible with sound banking princi Applicants, consummation of the proposal would ples and with an expansion of banking activities. formalize existing arrangements and make it less Bank’s capital seems adequate, and its prospects likely that competition between Bank and Jackson appear favorable. However, considerations related Bank would be resumed. Accordingly, it appears to the financial and managerial resources and fu that consummation of the proposal would have an ture prospects of Applicants are not consistent with adverse effect on competition in the Maquoketa approval. banking market. Conclusion. On the basis of the record and particularly in the light of the considerations dis Considerations related to the convenience and cussed above, it is the Board’s judgment that the needs of the communities to be served are consis proposed transactions would not be in the public tent with, but do not provide significant support interest and should not be approved. for, approval of the application. Although com petitive considerations and convenience and needs considerations are not such as to bar approval, the Board’s inquiry does not end here. As the Board BARNETT BANKS OF FLORIDA, INC., has stated before, “[t]he Board believes that a JACKSONVILLE, FLORIDA holding company should be a source of financial and managerial strength for the banks in its sys Order Approving Acquisition of Banks tem, rather than vice versa, and that every Barnett Banks of Florida, Inc., Jacksonville, proposed acquisition should be closely examined Florida, a bank holding company within the . . .” in this regard. (Application of First South meaning of the Bank Holding Company Act, has west Bancorporation, Inc., Waco, Texas, 1972 filed separate applications for the Board’s approval Federal Reserve B u lletin 302.) under § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) The record shows that Bezanson operates a to acquire 80 per cent or more of the voting shares general insurance agency; and MorAmerica has of Westchester National Bank of Dade County, substantial interests in ownership and operation of Miami, Florida (“Westchester Bank”), and Mid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 837 way National Bank, Miami, Florida (“Midway nated by consummation of this proposal. There Bank”). fore, competitive considerations are consistent Notice of the applications, affording opportunity with approval of the applications. for interested persons to submit comments and The financial condition of Applicant and its views, has been given in accordance with § 3(b) subsidiaries are considered to be generally satis of the Act. The time for filing comments and views factory in view of Applicant’s plans to improve has expired, and the Board has considered the the capital positions of its subsidiaries where a applications and all comments received in light of need exists; management for the system is also the factors set forth in § 3(c) of the Act (12 U.S.C. considered to be generally satisfactory, and pros 1842(c)). pects for the group appear favorable. The financial Applicant is Florida’s third largest banking or condition and management of Westchester and ganization and controls 34 banks with total depos Midway Banks are deemed satisfactory, and pros its of $1.0 billion, representing 6.4 per cent of pects for each appear favorable. Banking factors total deposits in commercial banks in the State. are, therefore, consistent with approval of the (All banking data are as of December 31, 1971, applications. Although the proposed affiliation adjusted to reflect holding company formations and with Applicant would not introduce new services acquisitions approved by the Board through July to the market, it would better enable each bank 31, 1972.) The acquisition of Westchester Bank to respond to the increasing financial needs in the ($17.3 million deposits) and Midway Bank ($2.7 expanding western section of the county which million deposits) would increase Applicant’s share they serve. Specialized banking services of Appli of State deposits by 0.1 percentage points, and cant would be made available to both Westchester Applicant’s rank among banking organizations in and Midway Banks, and the quality and quantity Florida would not change. of the banking services offered by each would be Westchester and Midway Banks are located in improved. Accordingly, considerations relating to Dade County where they control .48 and .07 per the convenience and needs of the communities to cent, respectively, of deposits in this banking be served are consistent with and lend some sup market. Although subject banks are located only port toward approval of the applications. It is the three miles apart, they do not actively compete Board’s judgment that the proposed transactions with each other. Midway Bank was established would be in the public interest and that the ap in April 1971 by directors of Westchester Bank plications should be approved. and is the only bank in its primary service area. On the basis of the record, the applications are Westchester Bank ranks as the smallest bank in approved for the reasons summarized above. The its immediate service area. Both banks are under transactions shall not be consummated (a) before common ownership, control, and management. It the thirtieth calendar day following the effective appears that no significant present or potential date of this Order or (b) later than three months competition would be eliminated by consumma after the effective date of this Order, unless such tion of this proposal. period is extended for good cause by the Board, or by the Federal Reserve Bank of Atlanta pursuant Applicant presently controls 2.8 per cent of the to delegated authority. Dade County banking market deposits through By order of the Board of Governors, effective three subsidiary banks (representing aggregate August 31, 1972. market deposits for each of $63.6, $26, and $9.7 million, respectively) and ranks as the market’s Voting for this action: Vice Chairman Robertson and Gov ninth largest banking organization. Consummation ernors Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governors Daane and Mitchell. of this proposal would represent an increase in (Signed) Tynan Smith, Applicant’s control of market deposits by only .5 [seal] Secretary of the Board. percentage points. Applicant’s present subsidiaries in Dade County are located 23, 16, and 10 miles, respectively, from the Westchester and Midway WYOMING BANCORPORATION, Banks’ offices. There is no significant present CHEYENNE, WYOMING competition between any of Applicant’s subsid Order Approving Acquisition of Bank iaries and subject banks. Due to Florida’s re strictive branching laws and the highly banked Wyoming Bancorporation, Cheyenne, Wyom areas which intervene, it appears that no substan ing, a bank holding company within the meaning tial amount of future competition would be elimi of the Bank Holding Company Act, has applied Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
838 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 for the Board’s approval under § 3(a)(3) of the erations relating to the banking factors lend weight Act (12 U.S.C. 1842(a)(3)) to acquire 100 per cent toward approval of the application. Applicant of the voting shares (less directors’ qualifying proposes to assist Bank in improving its services shares) of The Stockgrowers Bank of Evanston, by establishing trust services and increasing Evanston, Wyoming (“Bank”). Bank’s lending capabilities. These considerations Notice of receipt of the application has been relating to the convenience and needs lend some given in accordance with § 3(b) of the Act, and weight toward approval. It is the Board’s judgment the time for filing comments and views has ex that the proposed transaction would be in the pired. The Board has considered the application public interest and that the application should be and all comments received in the light of the approved. factors set forth in § 3(c) of the Act (12 U.S.C. On the basis of the record, the application is 1842(c)). approved for the reasons summarized above. The Applicant, the second largest banking organi transaction shall not be consummated (a) before zation in the State, controls nine banks with total the thirtieth calendar day following the effective deposits of $103.2 million, representing 11.1 per date of this Order or (b) later than three months cent of the total commercial bank deposits in after the effective date of this Order, unless such Wyoming. (All banking data are as of December period is extended for good cause by the Board, 31, 1971, adjusted to reflect holding company or by the Federal Reserve Bank of Kansas City acquisitions approved by the Board through July pursuant to delegated authority. 31, 1972.) Consummation of the proposal would By order of the Board of Governors, effective not significantly increase Applicant’s share of total August 31, 1972. deposits in the State. Voting for this action: Vice Chairman Robertson and Gov Bank, located in the southwestern corner of ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab sent and not voting: Chairman Bums. Wyoming about 75 miles northeast of Salt Lake City, Utah, is the smaller of two banks located (Signed) Tynan Smith, in Evanston and holds total deposits of $8.6 mil [seal] Secretary of the Board. lion. Applicant’s subsidiary located closest to Bank is about 175 miles to the north and neither TEXAS COMMERCE BANCSHARES, INC., it nor any of Applicant’s other subsidiaries com HOUSTON, TEXAS pete with Bank to any significant extent. More over, the development of competition between Order Approving Acquisition of Banks Bank and any of Applicant’s subsidiaries is con Texas Commerce Bancshares, Inc., Houston, sidered unlikely in view of the intervening dis Texas, a bank holding company within the mean tances between the banks, Wyoming’s restrictive ing of the Bank Holding Company Act, has ap branching laws, and the unlikelihood that Appli plied for the Board’s approval, under § 3(a)(3) cant would enter the Evanston’s area de novo. It of the Bank Holding Company Act (12 U.S.C. appears, therefore, that consummation of the pro 1842(a)(3)), to acquire 100 per cent of the voting posal would not eliminate any existing competition shares (less directors’ qualifying shares) of the nor foreclose the development of any potential successor by merger to American National Bank competition. of Beaumont, Beaumont, Texas. As an incident The financial and managerial resources and fu to acquisition of said bank, Applicant necessarily ture prospects of Applicant and its subsidiary would acquire, and seeks approval for, acquisition banks are regarded as generally satisfactory and of, 37 per cent of the voting shares of Beaumont consistent with approval of the application. While State Bank, Beaumont, Texas, shares of which are Applicant will incur acquisition debt as a result indirectly controlled by American National Bank of consummation of the proposal, Applicant under a trust relationship. proposes to retire the entire debt at an early date Notice of receipt of the application has been from the proceeds of a stock offering. In addition, given in accordance with § 3(b) of the Act, and Applicant states that a portion of the proceeds from the time for filing comments and views has ex the stock offering will be used to augment the pired. The Board has considered the application capital at its lead bank and at Bank, thus strength and all comments received in light of the factors ening the financial condition of each. Affiliation set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). with Applicant would provide Bank with a source On the basis of the record, and for the reasons of experienced banking personnel. Thus, consid summarized in the Board’s Statement of this date, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 839 the application is approved on condition that through its trustees, holds 37 per cent of the Applicant divest itself of its interest in Beaumont outstanding voting shares of Beaumont Bank for State Bank at the earliest practicable time and, in the benefit of shareholders of American Bank. any event, within two years from the effective date Therefore, acquisition of American Bank would of consummation of the acquisition of shares of result in Applicant acquiring 37 per cent of the American National Bank, unless such period is voting shares of Beaumont Bank. extended for good cause by the Board. The ap In its Order and Statement dated April 11, 1972, plication to acquire shares of Beaumont State Bank the Board denied Applicant’s application to ac is approved only to the extent necessary, and for quire American Bank. At the same time, by sepa the period granted to Applicant, to effect the rate Order, the Board approved Applicant’s ap required divestiture of its interest in Beaumont plication to acquire shares of Beaumont Bank. State Bank. The acquisition of American National Subsequently, Applicant filed a Request for Re Bank of Beaumont shall not be consummated (a) consideration of its application to acquire Ameri before the thirtieth calendar day following the can Bank stating in part, that the proposed ac effective date of this Order or (b) later than three quisition of shares of Beaumont Bank was incident months after the effective date of this Order, unless to, and sought only in connection with, an ac such period is extended for good cause by the quisition of American Bank; that Applicant did Board, or by the Federal Reserve Bank of Dallas not seek to acquire shares of Beaumont Bank pursuant to delegated authority. independently of an acquisition of American Bank By order of the Board of Governors, effective and could not acquire the shares of Beaumont August 31, 1972. Bank apart from an acquisition of American Bank. In addition, Applicant supplemented its original Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, Sheehan, and Bucher. Absent application with respect to American Bank with and not voting: Governor Daane. additional information concerning the present condition of that bank and the emerging structure (Signed) Tynan Sm ith, of the Beaumont banking market. In an Order [seal] Secretary of the Board. dated June 13, 1972, the Board granted Appli cant’s Request for Reconsideration of the Board’s Statement Order of April 11, 1972; and vacated its Order Nature of transaction. Texas Commerce Banc of April 11, 1972, which had granted approval shares, Inc., Houston, Texas, a registered bank to Applicant to acquire shares of Beaumont Bank. holding company, has applied to the Board of Notice of the Board’s Order granting Appli Governors, pursuant to § 3(a)(3) of the Bank cant’s Request for Reconsideration of its ap Holding Company Act (12 U.S.C. 1842(a)(3)), for plication to acquire American Bank has been given prior approval of the acquisition of 100 per cent and the time for filing comments and views has of the voting shares (less directors’ qualifying expired. The Board has reconsidered this applica shares) of the successor by merger to American tion and all comments received in the light of the National Bank of Beaumont, Beaumont, Texas factors set forth in § 3(c) of the Act and the original (“American Bank”). The bank into which Amer and supplemental material received in connection ican Bank is to be merged has no significance with these applications. except as a means to facilitate the acquisition of Statutory considerations. Applicant controls the voting shares of American Bank. Accordingly, two banks located in the Houston area with aggre the proposed acquisition of the shares of the suc gate deposits of $1.2 billion, representing 3.9 per cessor organization is treated herein as the cent of total commercial bank deposits in the State. proposed acquisition of the shares of American Applicant, the fourth largest banking organization Bank. Applicant has applied also for approval to in Texas and the second largest in the Houston acquire 37 per cent of the voting shares of Beau banking market, controls approximately 16 per mont State Bank, Beaumont, Texas (“Beaumont Bank”).1 A trusteed affiliate of American Bank shares of Beaumont State and American Bank were filed by American General. However, during the period of the Board’s consideration of these applications, American General effected *At the time this application was filed, American General a divestiture of its ownership and control of the voting shares Insurance Company, Houston, Texas, owned more than 32 of Texas Commerce and has ceased to be a bank holding per cent of the voting shares of Texas Commerce Bancshares company under the Bank Holding Company Act. Accordingly, so that an acquisition of shares by Texas Commerce would American General’s applications indirectly to acquire shares constitute indirect acquisition by American General. Therefore, of each of said banks have been dismissed as moot by Order separate applications with respect to the acquisition of the of the Board (1972 Federal Reserve Bulletin 7650). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
840 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 cent of total commercial deposits in the Houston prohibiting branch banking and the distances be area. In addition, Applicant controls between 20 tween the banks involved, consummation of the and 24.9 per cent of the voting shares of each applications is unlikely to foreclose significant of five other banks located in the Houston market potential competition between either of the and holding aggregate deposits of $168.7 million, proposed subsidiaries and any of Applicant’s representing approximately 2.8 per cent of com subsidiary or satellite banks. mercial bank deposits in the Houston area.1 Upon In its Order of April 11, 1972, denying acquisi acquisition of both American Bank and Beaumont tion of American Bank, the Board found that the Bank (respectively $112.5 million and $25.2 mil facts of record indicated that acquisition by Appli lion of deposits), Applicant’s position in relation cant of control of both American Bank and Beau to other Texas banking organizations and holding mont Bank or of American Bank alone, would companies would remain unchanged and Appli have serious adverse effects on potential competi cant’s share of deposits in the State would increase tion in the Beaumont banking market. The Board by approximately .5 percentage points. (All bank found the market attractive for de novo entry and ing data are as of December 31, 1971, and reflect Applicant a likely entrant into the Beaumont holding company formations and acquisitions ap banking market. Acquisition of Beaumont Bank proved through June 30, 1972.) alone, and the resulting disaffiliation of that bank American Bank (located in downtown Beau from American Bank was seen as reducing con mont) and Beaumont Bank (located 2 miles west centration in the Beaumont banking market by the of downtown Beaumont) both operate in the introduction of an additional organization to com Beaumont banking market and are, respectively, pete with the larger banking organizations in that the second and seventh largest of 18 banking market. American Bank was regarded as strong organizations in that market; and they control enough to compete as a viable independent bank respectively 17.7 and 4.0 per cent of commercial and capable of becoming a lead bank or substantial bank deposits in that market. American Bank, participant in a new or smaller bank holding com however, has a relatively large share of deposits pany system. of other banks and large certificates of deposit. In connection with its Request for Recon Its market share of total IPC deposits in accounts sideration, Applicant provided information not under $100,000 is only 13.7 per cent; and the previously available to the Board at the time of share of these smaller accounts is a better measure its earlier consideration of the subject proposals. of the competitive situation in a local market. This information indicates the following: Upon consummation of the proposals herein, 1. Applicant’s original applications failed to Applicant would control deposits of $137.6 mil inform the Board that the proposed acquisition lion, representing 21.7 per cent of total commer of shares of Beaumont Bank was sought only cial bank deposits in the Beaumont market, and in connection with and as an incident to its would control 18.8 per cent of total IPC deposits acquisition of American Bank. Applicant has in accounts under $100,000.2 been advised by directors of both Beaumont and The banking office of Applicant closest to either American banks and by trustees holding shares proposed subsidiary is located approximately 90 of Beaumont Bank that they will neither con miles west of Beaumont in Houston, Texas, and sider nor cooperate with any efforts of Applicant operates in a separate but adjacent banking market. to acquire Beaumont Bank separate from ac It appears that no meaningful competition exists quisition of American Bank. between any of Applicant’s present subsidiary 2. American Bank does not provide signifi banks and American or Beaumont Bank; and, on cant competition to the largest banking organi the facts of record, in particular, the Texas law zation in the Beaumont market and does not Applicant has filed applications with the Board to acquire have the management or financial resources to all of the remaining voting shares of each of two of these become a substantial member of a small bank banks. holding company system. 2Beaumont Bank was organized in 1955 and has been affiliated with American Bank since 1959 as the result of the 3. Subsequent to the Board’s denial of purchase of 37 per cent of Beaumont Bank’s outstanding voting Applicant’s proposal to acquire American Bank, shares by a corporation, all of the shares of which are held in trust for the benefit of the shareholders of American Bank. three bank holding company organizations have In addition, it appears that individuals owning 18 per cent either reached agreement or have applied to the of the outstanding voting shares of American Bank directly Board to acquire the third, fourth, and fifth control an additional 39 per cent of the outstanding voting shares of Beaumont Bank. largest banks in the Beaumont market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 841 4. Applicant has committed itself to divest enter the Beaumont market. The competitive posi its interest in Beaumont Bank (acquired as a tion of American Bank would be further weakened consequence of an acquisition of American by the introduction of additional bank holding Bank), should the Board disapprove of Appli company organizations through affiliation with the cant’s having control of both banks. significant banks in the market. The Board has reviewed the information sub The Board continues to view the acquisition by mitted by Applicant in connection with its Request Applicant of both American and Beaumont banks for Reconsideration, together with a review of the as having serious adverse effects on potential entire record in this matter; and finds that signifi competition in the Beaumont market. Accord cant changes have occurred in the Beaumont ingly, acquisition by Applicant of American Bank banking market and with respect to American is subject to the condition that Applicant divest Bank and that such changes lend weight toward its interest in Beaumont Bank (acquired inciden approval of Applicant’s acquisition of American tally to acquisition of American Bank) at the Bank provided Applicant is required to divest the earliest practicable time and, in any event, within interest in Beaumont Bank that will be acquired two years from its acquisition of 100 per cent of as an incident to acquisition of American Bank. the voting shares (less directors’ qualifying shares) Applicant’s inability to acquire shares of Beau of the successor by merger to American Bank. mont Bank (independently from an acquisition of On the basis of the record before it, the Board American Bank) eliminates the prospect of Beau concludes that consummation of Applicant’s pro mont Bank, through affiliation with Applicant, posal, as herein conditioned, would not result in becoming an additional competitor to the larger a monopoloy or be in furtherance of any combina banking organizations in the Beaumont market. At tion, conspiracy, or attempt to monopolize the the time of the Board’s prior consideration of this business of banking in any area. Moreover, the proposal, the management of American Bank was competitive effects of the proposal are consistent considered generally satisfactory despite some in with approval of the application and to the extent dications of a lack of managerial resources; and competition among Beaumont banking organi the prospects for American Bank for operation zations is likely to become more aggressive, lend independently were viewed as favorable. How some weight toward approval. ever, the most recent examination of American The financial and managerial resources and fu Bank (the results of which were not available to ture prospects of Applicant and its subsidiaries the Board at its earlier consideration of that bank’s appear satisfactory and prospects of all are favor condition) indicates considerable executive turn able. Although the financial condition of American over and a further weakening of management Bank is generally satisfactory, the bank has not depth. Furthermore, additional analysis of Ameri operated as successfully as competing banks in the can Bank’s earnings and growth relative to other market due, in part, to its lack of managerial banks in its market indicates that American Bank strength. Affiliation with Applicant will enable is presently not in a position to provide vigorous American Bank to draw upon Applicant’s finan competition in that market; and that it is unlikely cial, managerial, and technical resource strength that the bank could serve as a lead bank or signifi and should result in that bank becoming a vigorous cant participant in a new or smaller bank holding competitor in the Beaumont area. In addition, company system. Applicant proposes to introduce through American Events occurring subsequent to the Board’s de Bank specialized banking services such as in nial of the proposed acquisition of American Bank ternational petroleum and chemical banking by Applicant have changed dramatically the out operations to accommodate the large corporations look with respect to present and potential banking engaged in various aspects of oil and gas opera competition in the Beaumont market. Three addi tions in the Beaumont area. tional banking organizations (two of which are the Considerations relating to the convenience and third and fifth largest banking organizations in the needs of the relevant area are consistent with and State) seek acquisition of the third, fourth and fifth lend weight to approval of the applications. It is largest banks in the market and to compete with the Board’s judgment that consummation of the the dominant banking organization in that market. proposed acquisition of American Bank, upon the We express no opinion on those pending applica condition that Applicant divest shares acquired in tions but view as likely the prospect that some Beaumont Bank, is in the public interest and that of the State’s largest banking organizations will the applications should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
842 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ORDERS UNDER SECTIONS 3 & 4 OF to the condition that Applicant fulfill such agree BANK HOLDING COMPANY ACT ments prior to consummation of the proposed transaction. CAPITAL MANAGEMENT, INC., The financial and managerial resources and fu AURORA, NEBRASKA ture prospects of Applicant, Bank and Agency are consistent with approval. Although Applicant will Order Approving Formation of Bank Hold incur considerable debt in acquiring Bank, its ing Company and Retention of Brady Insur income from Bank and Agency will provide suffi ance Agency cient revenue to adequately service the debt. (Applicant’s projections concerning the earnings Capital Management, Inc,. Aurora, Nebraska, of both Bank and Agency are reasonable and has submitted an application for the Board’s ap possibly conservative.) In addition, Applicant’s proval under § 3(a)(1) of the Bank Holding Com acquisition of Bank will assure continued opera pany Act (12 U.S.C. 1842(a)(1)) to become a bank tion of the only bank in Brady. Accordingly, holding company through the acquisition of 80 per considerations relating to the convenience and cent of the voting shares of Bank of Brady, Brady, needs of the community to be served, with respect Nebraska (“Bank”). to the acquisition of Bank, lend weight toward At the same time, Applicant has submitted its approval. It is the Board’s judgment that con application for the Board’s approval under § summation of the transaction would be in the 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s public interest and that the application to acquire Regulation Y to engage in certain permissible Bank should be approved. insurance agency activities through the retention of assets of Brady Insurance Agency, Brady, Ne Agency is the only general insurance agency in braska (“Agency”). Brady, a town of approximately 300, and is lo Notice of receipt of these applications has been cated on the premises of Bank. The operation by given in accordance with sections 3 and 4 of the a bank holding company of a general insurance Act, and the time for filing comments and views agency in a community with a population of less has expired. The Board has considered the ap than 5,000 is an activity that the Board has pre plications and all comments received in light of viously determined to be closely related to banking the factors set forth in § 3(c) of the Act, and the (12 CFR 225.4(a)(9)(iii)). considerations specified in § 4(c)(8) of the Act. There is no evidence in the record indicating Applicant’s sole business activity is operating consummation of the proposal would result in any Agency. Bank (deposits of $2.1 million) is the undue concentration of resources, unfair competi only bank in a community of approximately 300 tion, conflicts of interest, unsound banking prac people. Bank is the smallest of seven banks in tices or other adverse effects on the public interest. the towns of North Platte, Gothenburg, Arnold, The acquisition would assure continuation of the and Brady, which approximates Bank’s service only source of general insurance in the town of area. (All banking data are as of June 30, 1971.) Brady. On the basis of the foregoing and other Since the transaction involves only a change from facts reflected in the record, the Board has deter individual to corporate ownership, consummation mined that the considerations affecting the com of the proposal will have no adverse effects on petitive factors under section 3(c) of the Act and existing or potential competition. the balance of the public interest factors the Board The Board notes that Applicant’s president ac must consider under section 4(c)(8) in permitting quired 34 shares of Bank for a lower sum than a holding company to engage in an activity on that paid for his majority shares. The Board has the basis that it is closely related to banking both previously expressed the view that failure to make favor approval of the Applicant’s proposal. an equivalent offer to minority shareholders is Accordingly, the applications are approved for considered as an adverse circumstance (57 F.R. the reasons summarized above. The acquisition of Bulletin 415, 688). However, Applicant has Bank shall not be consummated (a) before the agreed to compensate the former owners of these thirtieth calendar day following the effective date minority shares so that they will receive a sum of this Order, or (b) later than three months after equal to that paid the majority shareholders. the effective date of this Order, unless such period Applicant further agreed to make an equal offer is extended for good cause by the Board or by to all remaining minority shareholders. The the Federal Reserve Bank of Kansas City pursuant Board’s approval of these applications is subject to delegated authority. The determination as to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 843 Agency’s activities is subject to the Board’s au proposed insurance agency subsidiary are consis thority to require reports by, and make examina tent with approval, as are considerations relating tions of, holding companies and their subsidiaries to the convenience and needs of the communities and to require such modification or termination of to be served. the activities of a holding company or any of its The business of Agency is currently being con subsidiaries as the Board finds necessary to assure ducted on Bank’s premises by the North Invest compliance with the provisions and purposes of ment Company. Applicant proposes to succeed to the Act and the Board’s regulations and orders the business of selling credit life, health and acci issued thereunder, or to prevent evasion thereof. dent insurance to Bank’s customers. Selling credit By order of the Board of Governors, effective life, health and accident insurance in connection August 4, 1972. with extensions of credit by a bank or a bankrelated firm is an activity that the Board has Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Brimmer, and Sheehan. Absent and not previously determined to be closely related to voting: Governors Daane and Bucher. banking (12 CFR 225.4(a)(9)). On the basis of the record, the applications to (Signed) Tynan Smith, acquire Bank and Agency are approved. The ac [seal] Secretary of the Board. quisition of Bank shall not be consummated (a) before the thirtieth calendar day following the CITIZENS INVESTMENT COMPANY, effective date of this Order, or (b) later than three THORNTON, COLORADO months after the effective date of this Order, unless Order Approving Formation of Bank Hold such period is extended for good cause by the ing Company and Performance of Insurance Board or by the Federal Reserve Bank of Kansas Agency Activities City pursuant to delegated authority. By order of the Board of Governors, effective Citizens Investment Company, Thornton, Colo August 18, 1972. rado, has applied for the Board’s approval under § 3(a)(1) of the Bank Holding Company Act (12 Voting for this action: Chairman Burns and Governors U.S.C. 1842(a)(1)) of formation of a bank holding Brimmer, Sheehan, and Bucher. Voting against this action: Governor Robertson. Absent and not voting: Governors company through acquisition of 49 per cent or Mitchell and Daane. more of the voting shares of North Valley State Bank, Thornton, Colorado (“Bank”). (Signed) Tynan Smith, At the same time Applicant has applied for the [seal] Secretary of the Board. Board’s approval under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y to conduct the insurance agency business presently WESTERN BANCSHARES, INC., conducted by the North Investment Company, STOCKTON, KANSAS Thornton, Colorado (“Agency”). Order Denying Retention of Bank and Con Notice of receipt of the applications has been tinuation of the Activities of a General given in accordance with sections 3 and 4 of the Insurance Agency Act, and the time for filing comments and views has expired. The Board has considered the ap Western Bancshares, Inc., Stockton, Kansas, a plications and all comments received in the light bank holding company within the meaning of the of the factors set forth in section 3(c) of the Act Bank Holding Company Act, has applied for the (12 U.S.C. 1842(c)), and the considerations Board’s approval under § 3(a)(1) of the Act (12 specified in section 4(c)(8) of the Act (12 U.S.C. U.S.C. 1842(a)(1)) to retain 89.5 per cent of the 1843(c)(8)) and finds that: voting shares of Rooks County State Bank, Applicant is a non-operating corporation formed Woodston, Kansas (“Bank”). for the purpose of acquiring Bank ($8.8 million At the same time, Applicant has applied for the deposits) and Agency. Applicant’s acquisition of Board’s approval under § 4(c)(8) of the Act (12 Bank arises, in substantial measure, from the ex U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the ercise of buy-sell agreements by major share Board’s Regulation Y to continue to engage in holders of Bank and would not have any adverse certain permissible insurance agency activities effects on eighter existing or potential competition. through the retention of Woodston Agency, The financial and managerial resources and fu Woodston, Kansas (“Agency”). ture prospects of Applicant, Bank, and the Notice of receipt of these applications was pub Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
844 FEDERAL RESERVE BULLETIN. □ SEPTEMBER 1972 lished in the Federal Register on February 16, the application. (E.g. 1971 Federal Reserve 1972 (37 Federal Register 3474), and the time for Bulletin 415 and 688) filing comments and views has expired. The Board An examination of considerations relating to the has considered the applications and all comments financial and managerial resources and future received in light of the factors set forth in § 3(c) prospects of Bank and the convenience and needs of the Act, and the considerations specified in § of the communities to be served indicates that 4(c)(8) of the Act. these considerations do not provide sufficient Bank ($1.2 million in deposits, as of December weight toward approval to outweigh the adverse 31, 1971) is the only bank in Woodston, a com circumstance of the disparate offers to share munity of 332 persons in central Kansas. Agency holders. conducts a general insurance business from the The Board is aware that since the shares have premises of Bank. Approval of the proposal would already been purchased, denial of the application have no effect upon either existing or potential will not necessarily remedy the treatment of the competition. minority shareholders. However, this results not On January 8, 1971, Applicant acquired Agency from the Board’s action but from Applicant’s and a majority of the shares of Bank without the failure to obtain prior Board approval for its ac prior approval of the Board. On June 22, 1971, quisition. Approval of Applicant’s proposal would the Board, in order to avoid the imposition of represent Board sanction of the inequitable treat unnecessary hardships, issued an Order which ment accorded to the minority and the public provided that any company which acquired a bank interest would not be served by such action. between December 31, 1970, and that date, with On the basis of the record, the Board finds that out securing prior Board approval because the approval of the § 3 application would not be in company lacked knowledge of the Bank Holding the public interest and it is accordingly denied.1 Company Act Amendments of 1970, might file As provided in the Board’s Order of June 22, an application to retain the Bank and, thus, cure 1971, Applicant shall take appropriate action to its violation of the Act. In this connection, how forthwith divest the interest unlawfully held. ever, the Board provided that the standards which By order of the Board of Governors, effective were to be applied to such applications to retain August 31, 1972. would be the same as those normally applied to Voting for this action: Vice Chairman Robertson and Gov applications for prior approval. Applicant ap ernors Brimmer, Sheehan, and Bucher. Voting against this parently acted without knowledge of the Act and action: Governors Mitchell and Daane. Absent and not voting: Chairman Burns. the application has been considered on that basis. A principal of Applicant purchased certain of (Signed) Tynan Smith, Bank’s shares in late December 1970 and trans [seal] Secretary of the Board. ferred them to Applicant on January 8, 1971. Between then and early March 1971, Applicant ORDERS UNDER SECTION 4(c)(8) OF purchased the remainder of its present interest in BANK HOLDING COMPANY ACT Bank. A majority interst in Bank was purchased NCNB CORPORATION, for about $522 a share, shares of certain employees CHARLOTTE, NORTH CAROLINA of the Bank were purchased for $400 a share, and the shares of unrelated minority shareholders were Order Approving Acquisition of C. Douglas purchased for $160 a share. Wilson & Co., Inc. Applicant has stated that the premium paid to NCNB Corporation, Charlotte, North Carolina, the principal shareholder reflects a payment for the a bank holding company within the meaning of related insurance agency. Such a premium would the Bank Holding Company Act, has applied for represent a payment for Agency of over 37 times the Board’s approval, under § 4(c)(8) of the Act the net income of Agency for 1971 and the Board and § 225.4(b)(2) of the Board’s Regulation Y, concludes that Applicant has not justified the sub to acquire all of the voting shares of C. Douglas stantial disparity in prices paid for the shares. In Wilson & Co., Inc., Greenville, South Carolina, its consideration of the public interest aspects of a company that engages in the activity of mortgage this application the Board finds, as it previously banking. Such activity has been determined by the has in similar cases, that the failure to make an equivalent offer to all shareholders of Bank is an denial of Applicant’s 3(a)(1) application requires denial of adverse circumstance weighing against approval of the attendant 4(c)(8) proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 845 Board to be closely related to the business of in the State, compared to a national increase of banking (12 CFR 225.4(a)(1)). 18.4 per cent.3 Notice of the application, affording opportunity The proposed acquisition would not result in any for interested persons to submit comments and elimination of existing competition between views on the public interest factors has been duly NCNB Mortgage Corporation and Wilson in the published (37 Federal Register 1427). The time residential mortgage market on one-four family for filing comments and views has expired, and homes or in the servicing of mortgages for the none has been timely received. public. While the two institutions might on occa Applicant controls the North Carolina National sion be approached to make construction loans or Bank (“Bank”), the second largest bank in North loans on new income producing properties in the Carolina, and nonbanking subsidiaries engaged other’s markets, there is no significant existing principally in installment loan financing, factoring, competition between them in either of these prod mortgage banking, and furnishing investment ad uct markets. vice. Bank’s deposits of $1.5 billion1 represent Applicant’s capability for de novo entry into 18.5 per cent of the total commercial bank deposits local mortgage markets in South Carolina is lim in the State. Through its mortgage banking sub ited partially by its lack of personnel who are sidiary, NCNB Mortgage Corporation, Applicant experienced in those markets. Consummation of offers a complete line of mortgage banking ser the proposed acquisition eliminates the possibility vices in North Carolina. However, NCNB Mort of future competition between the two firms. gage Corporation has no offices in South Carolina However, because of numerous other mortgage and substantially all of its servicing portfolio of companies and other financial institutions which $186.1 million2 represents mortgages originated in both originate and service mortgages in South the State of North Carolina. Carolina, the market is sufficiently unconcentrated C. Douglas Wilson & Co., Inc. (“Wilson”), to allow approval of the instant proposal without engages in the origination and servicing of all a substantial lessening of future competition. types of mortgage loans throughout South Caro South Carolina’s need for an increasing supply lina. However, it obtains the majority of its busi of mortgage funds, including financing of largeness in 18 counties in close proximity to its six scale developments, seems clear. The State’s offices in that State. Of Wilson’s total mortgage urban population increased by approximately 25 originations of $29.6 million in 1970, over 75 per per cent between the period 1960-1970, and is cent were secured by residential property. Wilson expected to maintain this rate during the next competes for these mortgage originations with a decade. Consummation of the proposed acquisi number of savings and loan associations, other tion would provide Wilson with access to financial mortgage banking companies, and commercial and other resources of Applicant that would enable banks in each of the local markets in which it Wilson to provide more effectively for these needs, maintains offices, including both South Carolina and at the same time enable it to compete more based firms and firms headquartered in other effectively for large commercial and construction States. The record indicates that Wilson is a strong loans in the State. The resulting benefits in terms but not a dominant competitor in South Carolina of public needs and convenience, and increased mortgage markets, and that the demand for mort competition would, in the Board’s judgment, out gage funds in the State may be expected to rise weigh any possible adverse effect on competition. significantly. Between 1967 and 1970, new hous In its consideration of the application, the Board ing unit authorizations increased by 40.4 per cent noted that Applicant has substantial short-term debt, utilized to carry receivables of nonbank *Data as of December 31, 1971. subsidiaries. In addition, long-term debt has been 2Data as of June 30, 1971. 3New Housing Units Authorized in South Carolina and the United States, 1967-1970* per cent change 1967 1968 1969 1970 1967-1970 S. C. U.S. S.C. U.S. S.C. U.S. S.C. U.S. S.C. U.S. Number of units (000’s) 15.6 1,168.6 16.2 1,387.8 16.8 1,352.4 21.9 1,384.0 40.4 18.4 Value of units ($ millions) 18.4 15,367 19.6 18,799 21.9 19,045 26.7 19,664 45.1 28.0 ♦Based on local building permits issued in 13,000 places. The data exclude hotels, motels, and other group residential structures. Source: Bureau of the Census, Construction Reports, Series C-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
846 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 used for purchasing capital notes of Bank and for Dissenting Statement of Governors other long-term investments; as a consequence, the Robertson and Brimmer resulting debt level is relatively high in relation We would deny this application. to other bank holding companies. Debt of Appli NCNB Corporation, headquartered in Charlotte, cant’s nonbank subsidiaries appears to be reasona North Carolina, controls financial subsidiaries en bly comparable to that of other similar businesses, gaged principally in installment loan financing, and reasonably supportable without dependence factoring, mortgage banking, and furnishing in upon the prestige or resources of Bank. The Board vestment advice, in addition to its $1.5 billion believes it essential that bank holding companies (deposit size) North Carolina National Bank. Its and their nonbank subsidiaries be soundly financed mortgage banking subsidiary, NCNB Mortgage so that they will, if anything, be in a position to Corporation, ranks as the 116th largest mortgage add to the strength of their affiliated banks and company in the nation. Serving the entire State in no way dilute or “trade on” that banking of North Carolina, this subsidiary originates a strength. complete line of mortgage loans up to—and occa In this, as in every application, the Board looks sionally across—the political boundary dividing to the quality of management of the holding com North Carolina from South Carolina. Other non pany itself, as well as to its banking and nonbank banking subsidiaries of Applicant have previously ing subsidiaries. Applicant and its subsidiaries are extended their services into South Carolina. considered capably managed and appear able to Moreover, Applicant has applied through the Fed operate satisfactorily with the level of the holding eral Reserve Bank of Richmond to establish a trust company’s debt. company in South Carolina. It is a foregone conclusion that Applicant will, in time, establish The Board notes further that the instant proposal de novo mortgage banking offices in South Caro involves an exchange of stock rather than a stock purchase; that Applicant’s existing debt level will lina, witness the present mortgage offices in South Carolina established by Applicant’s principal not be increased materially; that the earnings holding company competitors in North Carolina— record of Wilson has reasonably provided for debt First Union National Bancorporation and the servicing; and that prospects are good for contin Wachovia Corporation. Expansion into South ued favorable earnings under Applicant’s control. Carolina would appear essential if Applicant is to The Board concludes that the acquisition of Wilson compete effectively with these companies on a will not place additional demands on Applicant’s regional basis. Hence, there are strong grounds earnings or adversely affect Applicant’s financial condition in any manner. Under these circum for presuming that NCNB Corporation will attempt stances, the Board concludes that financial factors to enter South Carolina mortgage markets by al are consistent with approval. ternative means if this application is denied. The foregoing illustrates not only that Applicant Based on the foregoing and other considerations has both the proximity and interest in the South reflected in the record, the Board hereby approves Carolina mortgage market to rank it as a leading the application. This determination is subject to potential entrant, but that it has the resources the conditions set forth in section 225.4(c) of through which it is capable of making a successful Regulation Y and to the Board’s authority to de novo entry. Indeed, it is Applicant’s capabil require such modification or termination of the ity—in terms of both financial resources and man activities of a holding company or any of its agement—that would permit it to overcome what subsidiaries as the Board finds necessary to assure ever short-term risks were entailed in such entry. compliance with the provisions and purposes of The record in this case does not disclose any other the Act and the Board’s regulations and orders potential entrant with the strong interest, incen issued thereunder, or to prevent evasions thereof. tives, and proximity to the South Carolina mort By order of the Board of Governors, effective gage market which Applicant has, nor is there one August 1, 1972. with its capability. We can only conclude that Voting for this action: Chairman Burns and Governors significant potential competition exists between Sheehan and Bucher. Voting against this action: Governors Wilson and NCNB Corporation and this competi Robertson and Brimmer. Absent and not voting: Governors tion would be eliminated by approval of this ap Mitchell and Daane. plication. (Signed) Tynan Smith, The vehicle through which Applicant has chosen [seal] Secretary of the Board to enter the South Carolina mortgage market—C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 847 Douglas Wilson & Co., Inc.—is the largest mort of the institutional investor, not the treasury of gage banking firm headquartered in South Carolina the mortgage banker. We are therefore obliged to and the 72nd largest mortgage banking firm in the paraphrase an earlier view set forth in our dissent nation.1 Wilson’s servicing portfolio in 1971 to the Board’s approval of the application of First represented 36.6 per cent (by value) of all mort Union National Bancorp., Inc., to acquire Reidgages serviced by South Carolina-based mortgage McGee & Company,2 where we stated: “[Appli companies. The combined mortgage servicing cant’s] stated intent to make mortgage funds portfolio of Wilson and Applicant would total available in the [South Carolina] region is depend $452.4 million and would rank 44th nationally. ent on the ability or desire of its institutional Such a combination would have, in our opinion, investors, not the ability or desire of [Applicant]. a significantly adverse effect on competition Under these circumstances, we would require a among mortgage banking firms in South Carolina, clear showing that the institutional investors and it would accelerate the trend toward acquisi themselves intend to inject additional capital into tion of the remaining independents in that State. the [South Carolina] mortgage market.” Such a Elimination of the potential competition be showing has not been made in the record before tween Wilson and Applicant would cause no con the Board on this application. Had Applicant been cern were a number of other potential entrants required to carry the burden of proof of establish standing in the wing, ready to enter the South ing public benefits that outweigh the adverse ef Carolina mortgage markets. Such remaining po fects of the proposal, we believe that Applicant tential entrants would have a competitive influence would have failed to meet that burden. However, on the practices of policies of mortgage bankers the majority has concluded that public benefits not in South Carolina. However, while there are a only exist, but are sufficient to outweigh the ad number of bank holding companies in the country verse effects. The additional funds the majority having Applicant’s capability, none have the same expects to see channeled into the South Carolina proximity or interest in entering local mortgage mortgage market are actually non-existent, since markets in South Carolina on a de novo basis. one mortgage banker in that market has simply Undoubtedly, this is due to the fact that the greater been replaced by another. On the other hand, were the distance separating a de novo entrant from the Applicant to enter this market de novo, the public market, the greater its start-up costs and costs of would be doubly enriched: additional funds would operation. In short, inability to make a successful flow into the market from the new entrant, and de nova entry, i.e., one that is profitable early in a competitive force would be added in the market its operation, deters many from entering at all. to generate greater competition. We conclude that such is the case here and that few but this Applicant can be shown to have the Order Approving Acquisition of Trust capability of making a successful de novo entry. Company of Florida The elimination of the prospective competition NCNB Corporation, Charlotte, North Carolina, now offered by Applicant thus constitutes the a bank holding company within the meaning of elimination of significant potential competition the Bank Holding Company Act, has applied for from the most likely source—an adverse effect the Board’s approval under § 4(c)(8) of the Act which we believe to be seriously detrimental to and § 225.4(b)(2) of the Board’s Regulation Y, the public interest. to acquire all of the voting shares of Trust Com The majority concludes that approval of the pany of Florida “(Trust”), Orlando, Florida, a proposed acquisition would be in the public inter company that engages in the activities performed est and that the benefits to the public would out or carried on by a trust company in the manner weigh the adverse effects caused by the elimination authorized by State law, but not the acceptance of potential competition by reason of additional of demand deposits. Such activity has been deter funds Wilson could bring to the mortgage markets mined by the Board to be closely related to the in South Carolina. We disagree. A mortgage business of banking or managing or controlling banker acts only as a conduit through which funds banks (12 CFR 225.4(a)(4)). flow from an institutional investor to the ultimate Notice of the application, affording opportunity borrower. The funds in most cases—and certainly for interested persons to submit comments and in the case of Wilson—come from the treasury views on the public interest factors, has been duly xBased on a mortgage servicing portfolio of $266.3 million as of June 30, 1971. *58 Federal Reserve Bulletin 72, 74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
848 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 published (37 Federal Register 7272). The time Consequently, Trust would be better able to serve for filing comments and views has expired, and the public and to compete more effectively with none have been timely received. the three larger trust departments of commercial Trust, which administered total trust assets of bank subsidiaries of Florida holding companies approximately $33 million as of December 31, which together hold approximately 80 per cent of 1971, operates its sole office in Orlando, and the total trust assets in the area. primarily serves Orange and all but the northern The Board also concludes for reasons evident portion of Seminole Counties. With 7.3 per cent from its order of this date approving Applicant’s of the total trust assets held by institutions in the acquisition of shares of C. Douglas Wilson & Co., area, Trust is the fourth largest of seven corporate Inc., Greenville, South Carolina, that financial fiduciaries in that area and does not appear to be factors are consistent with approval. dominant. Based upon the foregoing and other consid erations reflected in the record, the Board has North Carolina National Bank (“Bank”), a determined that the balance of the public interest subsidiary of Applicant, engages, among other things, in a fiduciary business. Bank is located in factors the Board is required to consider under Charlotte, North Carolina, and does not solicit section 4(c)(8) is favorable. Accordingly, the ap trust business in the State of Florida. Bank’s only plication is hereby approved. This determination trust business originating in Trust’s service area is subject to the conditions set forth in section is as trustee under a bond indenture for which it 225.4(c) of Regulation Y and to the Board’s au receives an annual fee of $250. Bank also does thority to require such modification or termination a nominal amount of trust business with former of the activities of a holding company or any of residents of North Carolina who, subsequent to its subsidiaries as the Board finds necessary to the establishment of fiduciary relationships with assure compliance with the provisions and pur Bank, moved into Trust’s service area. Bullock- poses of the Act and the Board’s regulations and NCNB Company, the only other subsidiary of orders issued thereunder, or to prevent evasion Applicant which performs services that are per thereof. formed by trust companies, provides investment By order of the Board of Governors, effective advisory and management services principally for August 1, 1972. pension and profit-sharing plans and tax-exempt Voting for this action: Chairman Burns and Governors institutional and endowment funds; it derives no Brimmer, Sheehan, and Bucher. Voting against this action: Governor Robertson, who dissents from this order for reasons business from Trust’s service area. Nor does Trust enumerated in his Statement dissenting from the Board’s Order derive any business from the service area of any of December 7, 1971, approving the acquisition of Security subsidiary of Applicant. It therefore does not ap Trust Company, Miami, Florida, by Nortrust Corporation, Chicago, Illinois (58 Federal Reserve Bulletin 67 (1972)). pear that any significant existing competition will Absent and not voting: Governors Mitchell and Daane. be eliminated by consummation of the proposed acquisition. Nor does it appear that consummation (Signed) Tynan Sm ith, would have any adverse effect on potential com [seal] Secretary of the Board. petition in that a recently-enacted Florida statute, inapplicable to the transaction proposed in this case, appears to prohibit the acquisition or owner ship of Florida trust companies by out-of-State MIDWESTERN FINANCIAL CORPORATION, corporations. DENVER, COLORADO There is no evidence on the record indicating that consummation of the proposed transaction Order Approving Acquisition of Crawshaw M ortgage and Investment Co. would result in any undue concentration of re sources, unfair competition, conflicts of interests, Midwestern Financial Corporation, Denver, unsound banking paractices, or other adverse ef Colorado, a bank holding company within the fects on the public interest. On the other hand, meaning of the Bank Holding Company Act, has consummation of the proposal would enhance applied for the Board’s approval, under § 4(c)(8) Trust’s ability to offer a broadened range of fidu of the Act and § 225.4(b)(2) of the Board’s Regu ciary and trust-related services to the residents of lation Y, to acquire all of the voting shares of the Orlando area by providing Trust with invest Crawshaw Mortgage and Investment Co., Encino, ment research and portfolio management services, California, a company that engages in the activity computer services, and marketing materials. of mortgage banking. Such activity has been de Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 849 termined by the Board to be closely related to the would enable Kassler of California to compete business of banking (12 CFR 225.4(a)(1)). more effectively with the numerous mortgage Notice of the application, affording opportunity departments of large banks and savings and loan for interested persons to submit comments and associations in the Los Angeles area. Present and views on the public interest factors has been duly potential mortgage customers could be served published (37 Federal Register 9805). The time more conveniently out of Kassler of California’s for filing comments and views has expired, and established offices in the area. On balance, the none has been timely received. Board concludes that these public benefits out Applicant is a one-bank holding company weigh any possible adverse effect on competition. through its ownership of The First National Bank Based upon the foregoing and other consid in Golden (deposits of $39.8 million), Golden, erations reflected in the record, the Board has Colorado.1 Applicant’s major activity of mortgage determined that the balance of the public interest banking is conducted through three subsidiaries: factors the Board is required to consider under § Kassler & Co., Kassler-West Mortgage Corpora 4(c)(8) is favorable. Accordingly, the application tion and Kassler of California. As of June 30, is hereby approved. This determination is subject 1971, Kassler & Co. serviced $701 million of to the conditions set forth in § 225.4(a) of Regu permanent mortgages and ranked as the 18th larg lation Y and to the Board’s authority to require est mortgage banking firm in the nation. Until such modification or termination of the activities March, 1970, when it acquired Kassler of Califor of a holding company or any of its subsidiaries nia, Applicant was not active in the California as the Board finds necessary to assure compliance mortgage banking markets. with the provisions and purposes of the Act, and Crawshaw Mortgage and Investment Co. the Board’s regulations and orders issued (“Crawshaw”) is a small mortgage company2 thereunder, or to prevent evasions thereof. operating out of one office in Encino, California. By order of the Board of Governors, effective It engages in originating, brokering and servicing August 31, 1972. FHA and VA loans on single-family residences Voting for this action: Vice Chairman Robertson and Gov and construction loans on commercial properties. ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab In its most recent fiscal year, Crawshaw originated sent and not voting: Chairman Burns. a total of $11.3 million in single family mortgages (Signed) Tynan Sm ith, (primarily in Ventura County and the San Fer [seal] Secretary of the Board. nando Valley—including the northern part of Los Angeles County) and $8.8 million in commercial mortgages (throughout the Los Angeles area). During 1971, Crawshaw had 0.17 per cent of the ORDER UNDER SECTION 4(d) OF total mortgage recordings in Los Angeles County, BANK HOLDING COMPANY ACT while Kassler of California had about 0.51 per cent. In view of the relatively large number of BENEFICIAL CORPORATION, other mortgage lenders in the Los Angeles area, WILMINGTON, DELAWARE elimination of this small amount of local competi tion would have no significantly adverse effect on Order Approving Exemption of Nonbanking mortgage lending in the area. Activities of Bank Holding Company Kassler of California does not presently compete Beneficial Corporation, Wilmington, Delaware, in the Los Angeles area for commercial mortgage a bank holding company within the meaning of loans. Therefore, consummation of the proposal the Bank Holding Company Act of 1956 (12 would not eliminate any existing competition in U.S.C. 1841), by virtue of ownership of 73.3 per this product market. Since Applicant could com cent of the voting shares of Peoples Bank and Trust mence commercial mortgage lending on its own, Company, Wilmington, Delaware (“Bank”), has however, its removal as a potential competitor to applied to the Board of Governors, pursuant to Crawshaw for such loans could have a slightly § 4(d) of the Act, for an exemption from the adverse effect. prohibitions of § 4 (relating to nonbanking activi It is anticipated that the proposed acquisition ties and acquisitions). Notice of receipt of the application was pub banking data as of December 31, 1971. lished in the Federal Register on June 14, 1972 2As of September 30, 1971, Crawshaw’s servicing portfolio was approximately $28 million. (37 Federal Register 11804). Time for filing com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
850 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 ments and views has expired. No request for a Bank. During 1971, Beneficial had short-term hearing has been received. borrowings of $275.7 million and long-term bor Section 4(d) of the Act provides that to the rowings of $955 million. In contrast, Bank’s total extent such action would not be substantially at of loans outstanding as of February 29, 1972, variance with the purposes of the Act and subject amounted to $5.3 million, with a statutorily im to such conditions as the Board considers neces posed lending limit of $200,000 to any one affili sary to protect the public interest, the Board may ate of Bank and $400,000 in aggregate to all such grant an exemption from the provisions of § 4 of affiliates. The record contains nothing to suggest the Act to certain one-bank holding companies in that Beneficial has misused Bank’s services for the order (1) to avoid disrupting business relationships benefit of Applicant’s other interests and, in view that have existed over a long period of years of the size disparity between Bank and Applicant, without adversely affecting the banks or commu and the small size of Bank in relation to the nities involved, or (2) to avoid forced sales of surrounding banking market and to the credit needs small locally owned banks to purchasers not simi of Beneficial, future misuse of Bank by Beneficial larly representative of * community interests or (3) seems unlikely. to allow retention of banks that are so small in Bank ($16.3 million in deposits) operates in the relation to the holding company’s total interests Wilmington banking market where it is the fifth and so small in relation to the banking market to largest of eight banks in the market and controls be served as to minimize the likelihood that the about 1.2 per cent of total deposits in the market. bank’s powers to grant or deny credit may be (All banking data are as of December 31, 1971, influenced by a desire to further the holding com and reflect bank holding company formations and pany’s other interests. acquisitions approved by the Board through July The Board has considered the application and 7, 1972.) Each of the four larger banks in the all comments received in the light of the factors market has deposits in excess of $245 million. set forth in § 4(d) of the Act and finds that: There are at least four other subsidiaries of large Beneficial Corporation is a diversified holding consumer finance companies and seven other company that operates the sixth largest consumer commercial banks in the same market. It does not finance company in the country, and owns Speigel, appear that there would be any adverse competitive Inc., Western Auto Supply Company, and over effects from permitting Beneficial to continue its 60 other firms. The record shows that, in the early ownership of Bank. 1920’s, Beneficial organized Bank (under another Based on the foregoing and other considerations name), but Bank did not open for business until reflected in the record, the Board concludes that December 1952. As of December 20, 1971, Ben the facts of record do not warrant disrupting a eficial owned 73.3 per cent of Bank’s outstanding business relationship that has existed over a long voting shares; and the remaining shares are owned period of years without adversely affecting the by present or former directors, officers, or em banks of the community involved; and that Bank ployees of Beneficial or of its subsidiaries (25.2 is so small in relation to the total interests of per cent), and by individuals residing in the Wil Beneficial and so small in relation to the banking mington area. Furthermore, it appears that, as of market served by Bank as to minimize the likeli February 29, 1972, approximately one-third of hood that Bank’s powers to grant or deny credit Bank’s demand deposits represent deposits on be may be influenced by a desire to further Benefi half of Beneficial or its subsidiaries, or their cial’s other interests. Accordingly, an exemption directors, officers, or employees; and 17.6 per cent pursuant to § 4(d) of the Act is hereby granted; of Bank’s total loans represent loans to directors, provided, however, that this determination is sub officers, or employees of Beneficial or its sub ject to revocation if the facts upon which it is based sidiaries. The record contains nothing to suggest change in any material respect. that permitting Bank’s affiliation with Applicant By order of the Board of Governors, effective to continue indefinitely will adversely affect either August 29, 1972. the Bank or the community of Wilmington. Bank’s total assets ($20.4 million) at year-end Voting for this action: Vice Chairman Robertson and Gov ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab 1971 were about 0.7 per cent of the total assets sent and not voting: Chairman Burns. of Applicant and all of its subsidiaries ($2.8 bil lion). Applicant indicates that neither Beneficial (Signed) Tynan Smith, nor any of its subsidiaries has borrowed from [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements FEDERAL RESERVE BANK Memphis Branch of the Federal Reserve Bank of BRANCH DIRECTORS St. Louis died on July 26, 1972. Mr. Barton was President of First Citizens National Bank, E. Stanley Robbins, who had served since Tupelo, Mississippi. January 1, 1970, as a Board-appointed Director John G. Beam, who had served since January of the Birmingham Branch of the Federal Re 1, 1969, as a Board-appointed Director of the serve Bank of Atlanta, resigned effective June Louisville Branch of the Federal Reserve Bank of 30, 1972. St. Louis, died on August 29, 1972. Mr. Beam Wade C. Barton, who had served since January was President of Thomas Industries Incorporated, 1, 1972, as a Board-appointed Director of the of Louisville. 851 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
National Summary of Business Conditions Released for publication September 18 Industrial production, nonfarm employment, and EMPLOYMENT retail sales advanced in August. The unemploy Nonfarm payroll employment rose in August, with ment rate was about unchanged. The wholesale advances in trade, services, State and local gov price index rose further. Commercial bank credit, ernments, and manufacturing. The average factory the money stock, and time and savings deposits workweek edged up 0.1 hour to 40.7 hours. The increased. Between mid-August and mid-Sep unemployment rate was essentially unchanged at tember, yields on Treasury and municipal securi 5.6 per cent as the labor force increased consid ties rose and yields on seasoned corporate securi erably. ties remained relatively steady. RETAIL SALES INDUSTRIAL PRODUCTION Industrial production rose 0.5 per cent further in The value of retail sales rose 1.5 per cent in August August to 114.3 per cent (1967=100), with gains and was 9.5 per cent above a year earlier, accord in output general among final products and mate ing to the advance report. Sales at durable goods rials. The higher August level of the index re stores rose sharply from July, reflecting mainly flected in part a pickup of production following strong gains in the automotive and the lumberthe effects of the hurricane in late June. The July hardware-farm equipment groupings. Sales at index was revised slightly upwards to 113.7. The nondurable goods stores were also higher. total index in August was 8.2 per cent above a year earlier. WHOLESALE AND CONSUMER PRICES Auto assemblies, after allowance for the model The wholesale price index, seasonally adjusted, changeovers, were at an 8.5 million unit annual rose 0.6 per cent between July and August, as rate in August, the same as in July. Among other prices of farm and food products increased 1.4 consumer goods, production of some home goods per cent. The index of industrial commodities and consumer nondurable goods also rose. Output increased 0.4 per cent with important advances in most business equipment industries increased being posted for fuels, hides and skins, lumber and production of defense equipment advanced and plywood, and motor vehicles and equipment. further. Gains continued in output of construction The consumer price index rose 0.4 per cent in products and steel, and in the textile, paper, and July, seasonally adjusted. Food prices were up 0.6 chemical materials grouping. per cent, boosted by substantial advances for INDUSTRIAL PRODUCTION meats. Prices of other commodities and of services both increased 0.3 per cent. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit, adjusted for transfers of loans between banks and their affiliates, increased rapidly in August—at an annual rate of about 18 per cent. Loan growth was very strong reflecting continued heavy borrowing in most major cate gories—business, real estate, consumer, and non bank financial institutions. Holdings of municipal and Federal agency issues rose somewhat follow ing little net change over the previous 2 months, F.R. indexes, seasonally adjusted. Latest figures: August. but holdings of U.S. Treasury securities declined 852 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
853 further, probably associated with a smaller-than- SECURITY MARKETS usual volume of Treasury financing. Treasury bill rates rose by about 60 to 80 basis The narrowly defined money stock increased at points between mid-August and mid-September. an annual rate of 6 per cent, much less rapidly The 3-month bill was bid at around 4.70 per cent than in July. U.S. Government deposits declined. in the middle of September, up from 3.90 per cent Growth in time and savings deposits other than a month earlier. Yields on U.S. Government notes large negotiable CD’s was at a faster pace than and bonds advanced by some 10 to 35 basis points in July, but less rapid than earlier in the year. over the same period. Sales of large negotiable CD’s accelerated some Yields on new corporate securities fluctuated what further. narrowly from mid-August to mid-September, ris Net borrowed reserves of member banks ing slightly on balance. Seasoned corporate secu averaged about $180 million over the 5 weeks rity yields remained relatively steady. Municipal ending August 30 compared with $25 million in security rates rose steadily but leveled off in mid- July. Member bank borrowings increased substan September. tially further to an average level of about $370 Common stock prices increased moderately on million while excess reserves remained close to average to light volume. $190 million. INTEREST RATES PRICES 1967=100 Wholesale Consumer 1967=100 130 130 LONG-TERM GOVERNMENT SECURITIES Bureau of Labor Statistics. “Farm products and foods” is BLS Discount rate, range or level for all F.R. Banks. Weekly “Farm products, and processed foods and feeds.” Latest average market yields for U.S. Govt, bonds maturing in 10 figures: Consumer, July; Wholesale, Aug. years or more and for 90-day Treasury bills. Latest figures: week ending Sept. 2. 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
FEDERAL RESERVE BULLETIN □ SEPTEMBER 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 A 106 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities S Sources of funds I, II, III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a also include not fully guaranteed issues) as well as direct negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” also A heavy vertical rule is used in the following in includes municipalities, special districts, and other politi stances: (1) to the right (to the left) of a total when the cal subdivisions. components shown to the right (left) of it add to that In some of the tables details do not add to totals because total (totals separated by ordinary rules include more of rounding. components than those shown), (2) to the right (to the The footnotes labeled Note (which always appear left) of items that are not part of a balance sheet, (3) to the last) provide (1) the source or sources of data that do left of memorandum items. not originate in the System; (2) notice when figures are “U.S. Govt, securities” may include guaranteed estimates; and (3) information on other characteristics issues of U.S. Govt, agencies (the flow of funds figures of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds . June 1972 A-72—A-73.9 Banks and branches, number, by class and State.................. Apr. 1972 A-98—A-99 Semiannually Flow of funds: Banking offices: Assets and liabilities: Analysis of changes in number ... 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 □ SEPTEMBER 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 u H n e d l e d r Loans O F t . h R e . r s G to o c ld k c D e R r r t a i i g w fi h c i t n a s t g e re o c n u u c r t y Bought repur assets 3 account stand Total out chase ing right agree ment Averages of daily figures 1939—Dec............................. 2,510 2,510 83 2,612 17,518 2,956 1941—Dec............................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec............................. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec............................. 20,345 20,336 142 1,117 21,606 22,879 4,629 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—Dec . 52,529 52,454 75 765 3,251 56,610 10.367 6,810 1969—De c 57,500 57,295 205 ,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—Au g 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 July............................. 72,089 71,972 117 202 3,548 1,111 77,035 10.410 400 8,080 Aug.*1......................... 71,858 71,732 126 439 3,347 957 76,679 10.410 400 8,137 Week ending— 1972—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 71,988 365 173 3,896 1,115 77,663 10.410 400 8,082 26..................... 71,909 71,909 172 3,689 1,156 76,991 10.410 400 8,089 Aug. 2..................... 71,990 71,890 100 363 3,195 1,212 76,832 10.410 400 8,096 9..................... 72,102 71,967 135 287 3.300 1,265 77,037 10.410 400 8,116 16..................... 72,045 71,922 123 382 3.301 1,112 76,922 10.410 400 8,135 23 ^................... 71,731 71,731 350 3,737 670 76,557 10.410 400 8,151 30*............. 71,448 71,356 92 477 3,227 729 75,957 10.410 400 8,153 End of month 1972—June............................ 72,462 6 72,462 130 3,299 990 76,954 10.410 400 8,066 July............................. 71,901 6 71,901 83 2,224 1,268 75,539 10.410 400 8,095 Aug.?......................... 71,890 71,104 786 1,091 3,368 774 77,219 10.410 400 8,157 Wednesday 1972—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 72,582 387 513 3,072 1,062 77,731 10.410 400 8,056 12..................... 69,515 6,769,515 86 3,909 1,107 74,683 10.410 400 8,081 19..................... 72,443 6 72,039 404 82 4,049 1,155 77,839 10.410 400 8,087 26..................... 71,959 6 71,959 637 3,569 1,168 77,397 10.410 400 8,093 Aug. 2 p................... 72,544 6 71,864 680 1,271 3,406 1,233 78,572 10.410 400 8,101 9 v.................. 72,565 6 71,953 612 842 3,135 1,320 78,024 10.410 400 8,132 16p................... 72,709 6 72,031 678 535 3,628 676 77,693 10.410 400 8,146 23 p................... 70,964 6,7 70,964 878 3,395 727 76,031 10.410 400 8,152 30?............ 72,033 6 71,389 644 1,330 3,053 766 77,307 10.410 400 8,157 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 r c t c e u i i i n o n l r a c n y T h c i u r n o a e r l g s a d y h s s T u re r a y s with F F e . i R o g r n . Banks Other2 c O o F u a t . h c R n e t . r s3 c b a F i a p l l i n . i i a R t t d i a e . l s 3 B F W a . n R it k h . s c r C a e o n n u in d r c * y Total Averages of daily figures 7,609 2,402 616 72\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 2,192 23,071 4,960 28,031 .1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 .1970—Dec. 58,906 477 1,121 181 712 2,298 25,098 5,357 30,455 .1971—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 27,361 5,660 33,021 ............July 62,726 319 2,025 171 604 2,324 27,457 5,698 33,155 ..........Aug.* Week ending— 61,632 361 2,559 134 611 2,415 27,083 5.594 32,677 .1972—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 27,926 5,369 33,295 ..........19 62,530 335 2,533 271 584 2,303 27,334 5,706 33,040 ..........26 62,448 336 2,464 150 611 2,377 27,352 5,787 33,139 . Aug. 2 62,681 330 2,531 159 633 2,379 27,251 5,882 33,133 .......... 9 62,921 313 2,132 167 611 2,235 27,489 5,837 33,326 ..........16 62,785 315 1,780 177 581 2,289 27,590 5,325 32,915 .......23* 62,544 316 1,609 183 584 2,351 27,333 5,709 33,042 ..........30* End of month 62,201 351 2,344 257 836 2,359 27,482 5,594 33,076 • June 62,435 337 2,298 160 620 2,406 26,185 5,789 31,974 ..July 62,752 305 1,727 192 592 2,420 28,198 5,798 33,996 .Aug.* Wednesday 61,936 360 2,356 145 615 2,442 27,155 5.593 32,748 .1972—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 28,331 5.594 33,925 .July 5 63,125 339 2,816 172 561 2,216 24,345 859 30,204 ........12 62,795 337 2,426 236 615 2,294 28,033 368 33,401 ..........19 62,582 349 2,490 156 601 2,328 27,794 708 33,502 ..........26 62,642 345 2,137 168 690 2,420 29,080 787 34,867 . Aug. 2* 63,020 325 2,473 156 562 2,205 28,224 882 34,106 ..........9 p 63,018 319 1,792 171 658 2,266 28,426 837 34,263 .......16* 62,766 325 1,919 187 573 2,315 26,908 325 32,233 ..........23* 62,769 316 1,406 168 602 2,402 28.611 5,709 34,320 ..........30* 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- 8 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 □ SEPTEMBER 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor Reserves Bor Reserves Bor T h o e t ld al qu R ir e e d1 Excess B r F i o a n a . w n 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 1 Excess B r F i a o n . a n R w g t k s . s s F e r r r e v e e e s 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 I 1 9 9 6 6 0 5 — — D D e e c c . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2 9 , , 7 2 1 83 9 2 1 2 8 , , 2 5 6 27 7 7 4 5 5 6 2 45 87 4 6 - 6 2 9 4 3 , , 3 6 0 8 1 7 4 3 , , 2 6 6 58 0 4 2 1 9 11 1 1 9 -7 1 0 0 1,1 9 4 5 3 8 1,1 9 2 5 8 3 15 4 23 8 - - 8 4 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 —5 1968—De c 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 1,184 15 85 -70 1969—De c 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 27 -9 1970—De c 29,265 28,993 272 321 -49 5,623 5,589 34 25 9 1,329 1,322 7 4 3 1971—Au g 30,455 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 7 7 Sept............ 30,802 30,596 206 501 -295 5,683 5,674 9 38 -29 1,417 1,423 -6 4 -10 Oct.............. 30,860 30,653 207 360 -153 5,678 5,667 11 67 -56 1.425 1,408 17 15 2 Nov............ 30,953 30,690 263 407 -144 5,644 5,608 36 107 -71 1,408 1,400 8 22 -14 Dec............. 31,329 31,164 165 107 58 5,774 5,749 25 35 c-10 1.426 1,425 1 8 -7 1972—Ja................n 32,865 32,692 173 20 153 6,066 6,058 8 8 1,503 1,512 -9 -9 Feb............. 31,922 31,798 124 33 91 5,775 5,807 -32 5 -37 1,446 1,442 4 4 Mar............ 31,921 31,688 233 99 134 5,815 5,758 57 71 -14 1,434 1,443 -9 4 -13 Apr............. 32,565 32,429 136 109 27 5,938 5,940 -2 48 -50 1,482 1,476 6 5 1 May........... 32,812 32,708 104 119 -15 6,045 6,031 14 50 -36 1,514 1,505 9 12 -3 June........... 32,539 32,335 204 94 110 5,956 5,922 34 6 28 1,488 1,489 -1 — 1 July............ 33,021 32,874 147 202 -55 6,129 6,097 32 15 17 1.510 1,502 8 6 2 Aug.®......... 33,155 32,894 261 439 -178 5,988 5,994 -6 117 -123 1.511 1,500 11 10 1 Week ending— 1971—Aug. 4... 30,894 30,460 434 764 ' 5,781 5,677 104 43 61 1,447 1,434 13 13 11... 30,330 30,303 27 593 5,625 5,699 -74 -74 1,419 1,431 -12 -12 18... 30,605 30,381 224 1,179 5,816 5,748 68 342 -274 1,416 1,412 4 31 -27 25... 30,111 30,020 91 771 i 5,456 5,522 -66 267 -333 1,387 1,383 4 4 1972—Feb. 2... 32,435 32,190 245 16 5,936 5,880 56 56 1,460 1,451 9 9 9... 31,892 31,842 50 42 5,733 5,825 -92 22 -114 1,439 1,445 -6 -6 16... 32,257 31,946 311 18 6,078 5,895 183 183 1,450 1,466 -16 -16 23... 31,823 31,693 130 14 5,686 5,789 -103 -103 1,453 1,427 26 26 Mar. 8 1 . . . .. . 3 3 1 1, , 4 6 6 1 5 4 3 31 1 , , 2 5 8 3 9 2 1 8 7 2 6 1 6 0 7 3 15 5 5 , , 6 6 4 4 3 9 5 5 , , 6 6 5 7 8 9 -3 -9 6 99 -1 -3 0 6 8 1 1 , , 4 4 1 3 1 5 1 1 , , 4 4 2 1 5 9 -1 1 4 6 -1 1 4 6 15... 32,108 31,715 393 13 • 5,982 5,796 186 186 1,473 1,479 -6 -6 22... 31,558 31,691 -133 115 5,605 5,725 -120 95 -215 1,421 1,433 -12 4 -16 29... 32,219 31,934 285 153 5,911 5,820 91 94 -3 1,442 1,436 6 14 -8 Apr. 5... 32,604 32,230 374 141 5,991 5,933 58 86 -28 1,521 1,472 49 49 12... 32,345 32,179 166 14 : 5,963 5,953 10 10 1,446 1,482 -36 -36 19... 32,565 32,624 -59 43 : 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 > 5,862 5,927 -65 60 -125 1,513 1,480 33 33 10... 32,757 32,566 191 87 t 6,019 5,978 41 49 -8 1,486 1,506 -20 -20 17... 33,157 32,963 194 39 ; 6,223 6,218 5 21 -16 1,566 1,535 31 31 24... 32,646 32,560 86 63 t 6,007 5,994 13 39 -26 1,443 1,491 -48 -48 31... 32,814 32,726 254 I 5,975 6,001 -26 51 -77 1,520 1,496 24 54 -30 June 7... 32,677 32,346 331 58 I 6,020 5,931 89 89 1,490 1,491 -1 -1 2 1 1 4 . . . . . . 3 3 2 2 , , 5 4 9 1 6 7 3 3 2 2 , , 3 3 0 8 8 4 2 1 1 0 2 9 9 5 4 9 t i 6 5 , , 0 8 4 8 7 9 5 5 , , 9 9 7 2 5 0 -3 7 1 2 18 -3 5 1 4 1 1 , , 4 5 9 06 2 1 1 , , 4 4 9 91 7 - 1 5 5 - 1 5 5 28... 32,301 32,177 124 129 i 5,793 5,809 -16 6 -22 1,480 1,476 4 4 July 5... 33,143 32,815 328 312 ; 6,ni 6,097 74 42 32 1,532 1,507 25 25 12... 32,747 32,524 223 227 I 6,014 5,991 23 23 1,484 1,485 -1 -1 19... 33,295 33,148 147 173 5 6,184 6,209 -25 -25 1,519 1,530 -11 -11 26... 33,040 32,961 79 172 1 6,123 6,124 -1 26 -27 1,501 1,489 12 26 -14 Aug. 2... 33,139 32,897 242 363 I 6,052 6,051 1 144 -143 1,485 1,498 -13 11 -24 9... 33,133 33,003 130 287 1 6,037 6,038 -1 39 -40 1,533 1,518 15 35 -20 16... 33,326 33,072 254 382 I 6,138 6,102 36 76 -40 1,503 1,516 -13 -13 23*\. 32,915 32,784 131 350 > 5,889 5,935 -46 79 -125 1,496 1,486 10 10 30*>.. 33,042 32,762 280 477 1 5,981 5,900 81 85 -4 1,482 1,482 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow Reserves Borrow Period ings at Free ings at Free F.R. eserves F.R. reserves T h o e t l a d l Required Excess Banks T h o e t ld al Required1 Excess Banks 3,140 1,951 1,188 1,188 1,568 897 671 3 668 ..............................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ..............................1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ..............................1950—Dec. 7,950 7,851 100 20 80 6,689 6,066 623 40 583 ..............................1960—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 10,990 10,900 90 270 -180 9,875 9,625 250 180 70 ..............................1968—Dec. 10,970 10,964 6 479 -473 10,335 10,158 177 321 -144 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 ..............................1970—Dec. 11,871 11,883 -12 425 -437 11,474 11,324 150 208 -58 12,115 12,077 38 318 -280 11,587 11,422 165 141 24 12,069 12,050 19 163 -144 11,688 11,528 160 115 45 12,106 12,041 65 177 -112 11,795 11,641 154 101 53 12,198 12,233 -35 22 -57 11,931 11,757 174 42 132 12,954 12,941 13 13 12,342 12,181 161 20 141 ...............................1972__Jan. 12,578 12,573 5 12 -7 12,123 11,976 147 16 131 12,559 12,533 26 9 17 12,113 11,954 159 15 144 12,820 12,804 16 22 -6 12,325 12,209 116 34 82 12,874 12,898 -24 31 -55 12,379 12,274 105 26 79 12,746 12,739 7 40 -33 12,349 12,185 164 48 116 12,849 12,890 -41 64 -105 12,533 12,385 148 117 31 ............................................July 13,007 12,908 99 134 -35 12,649 12,492 157 178 -21 Week ending 12,094 11,973 121 429 -308 11,572 11,376 196 292 -96 11,856 11,898 -42 375 -417 11,430 11,275 155 218 -63 ...............................................11 11,883 11,901 -18 545 -563 11,490 11,320 170 261 -91 ...............................................18 11,798 11,788 10 372 -362 11,470 11,327 143 132 11 ...............................................25 12,686 12,688 -2 -2 12,353 12,171 182 16 166 .......................1972—Feb. 2 12,577 12,567 10 10 12,143 12,005 138 20 118 ...............................................9 12,602 12,636 -34 1 -35 12,127 11,949 178 17 161 ...............................................16 12,583 12,537 46 46 12,101 11,940 161 14 147 ...............................................23 12,464 12,492 -28 57 -85 12,096 11,936 160 10 150 12,396 12,384 12 12 11,985 11,828 157 4 153 ............................................... 8 12,605 12,554 51 2 49 12,048 11,886 162 11 151 12,465 12,539 -74 8 -82 12,067 11,994 73 8 65 ...............................................22 12,651 12,609 42 21 21 12,215 12,069 146 24 122 12,804 12,718 86 86 12,288 12,107 181 55 126 Apr. 5 12,740 12,705 35 35 12,196 12,039 157 14 143 ...............................................12 12,816 12,903 -87 8 -95 12,304 12,177 127 12 115 ...............................................19 12,865 12,827 38 86 -48 12,447 12,341 106 46 60 ...............................................26 12,894 12,866 28 2 26 12,571 12,431 140 55 85 12,815 12,804 11 19 -8 12,437 12,278 159 19 140 12,966 12,983 -17 4 -21 12,402 12,227 175 14 161 12,884 12,850 34 8 26 12,312 12,225 87 16 71 12,920 12,966 -46 106 -152 12,399 12,263 136 43 93 12,867 12,791 76 20 56 12,300 12,133 167 38 129 12,772 12,792 -20 44 -64 12,250 12,105 145 50 95 ...............................................14 12,712 12,706 6 12 -6 12,345 12,206 139 29 110 ...............................................21 12,642 12,639 3 67 -64 12,386 12,253 133 56 77 ...............................................28 12,924 12,846 78 126 -48 12,516 12,365 151 144 7 12,827 12,814 13 78 -65 12,422 12,234 188 149 39 ...............................................12 13,046 13,057 -11 64 -75 12,546 12,352 194 109 85 ...............................................19 12,783 12,849 -66 33 -99 12,633 12,499 134 87 47 ...............................................26 12,942 12,870 72 96 -24 12,660 12,478 182 112 70 12,982 13,005 -23 95 -118 12,581 12,442 139 118 21 ............................................... 9 13,039 12,990 49 170 -121 12,646 12,464 182 136 46 ...............................................16 12,894 12,844 50 95 -45 12,636 12,519 117 176 -59 ...............................................23^ 12,875 12,829 46 120 -74 12,704 12,551 153 272 -119 ...............................................30* i Beginning Sept. 12, 1968, amount is based on close-of-business fig- Total reserves held: Based on figures at close of business through Nov. ures for reserve period 2 weeks previous to report date. 1959; thereafter on closing figures for balances with F.R. Banks and open ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures, weeks ending on Wed. that fall within the month. Beginning with Jan. 1964 reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 8 MAJOR RESERVE CITY BANKS □ SEPTEMBER 1972 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less- Net- Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e e s s s 1 r a o B t B w a F o n in . r k R - g s . s F t f i b e r u n N a d a n t n n e e e d r s r t k s a . l S d u e r o f p i r c lu it s r P r e e e q a s r e u v o c r i g f v r e . e n e 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 u P h a f y a u n n s i r k n e e s g s t s o b S e a f l a l n l n i e k n e s g s t d L ea o t l a o e n rs s 3 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—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 August 2----- 35 213 5,211 -5,389 39.1 11.724 6,513 4,320 7,404 2,193 1,650 548 1,102 9.... 67 77 7,016 -7,027 50.8 13,343 6,327 4,173 9,170 2,153 1,943 659 1,284 16.... 73 96 6,959 -6,982 50.3 13.724 6,765 4,468 9,256 2,297 2,148 644 1,504 23.... 8 79 7,067 -7,139 52.5 13,524 6,457 4,680 8,844 1,777 1,873 415 1,458 30.... 62 166 5,766 -5,870 43.3 12,357 6,590 4,426 7,931 2,164 1,624 328 1,296 8 in New York City 1972—July 5.... 83 42 2,713 -2,673 49.2 3,442 728 710 2,732 1,182 58 1,124 12.... 39 3,215 -3,176 60.2 3,824 609 609 3,215 1,268 53 1,215 19.... 30 2,876 -2,846 51.4 3,693 817 743 2,950 854 49 805 26.... 17 23 3,224 -3,230 59.2 3,886 663 663 3,224 1,138 43 1,096 August 2----- 18 132 2,621 -2,736 50.7 3,590 969 969 2,621 1,158 47 1,111 9.... 20 39 4,334 -4,353 80.9 4,985 651 650 4,334 1,411 51 1,360 16.... 52 69 4,359 -4,375 80.2 4,978 619 619 4,359 1,610 72 1,538 23.... -37 79 3,742 -3,859 72.9 4,489 747 747 3,742 1,220 68 1,152 30.... 61 85 3,297 -3,321 63.2 4,075 778 758 3,317 21 1,247 64 1,183 38 outside New York City 1972—July 5.... 70 2,022 -2,005 24.1 7,874 5,852 3,242 4,631 2,609 525 379 146 12.... 3,190 -3,163 37.8 8,616 5,426 3,409 5,208 2,018 453 291 162 19.... 30 2,707 -2,702 31.7 8,424 5,717 3,222 5,202 2,496 439 477 -38 26.... 41 2,035 -2,075 24.8 7,970 5,935 3,259 4,711 2,675 454 470 -17 August 2.... 17 81 2,590 -2,654 31.7 8,134 5,544 3,352 4,782 2,193 492 501 -9 9.... 46 38 2,682 -2,674 31.6 8,358 5,676 3,523 4,835 2,153 533 608 -76 16.... 20 27 2,600 -2,607 30.9 8,746 6,145 3,849 2,297 538 572 -34 23.... 45 3,324 -3,280 39.5 9,035 5,710 3,934 ’5’ioi 1,777 653 347 306 30.... 2 82 2,470 -2,550 30.8 8,282 5,812 3,668 4,614 2,144 377 264 113 5 in City of Chicago 1972—July 5.... 30 1,614 -1,584 115.1 2,166 552 528 1,638 24 259 259 12... . 7 1,926 -1,919 141.3 2,524 598 585 1,939 13 291 291 19.... -3 1,555 -1,558 111 .4 2,298 743 649 1,649 94 203 203 26.... 3 26 1,458 -1,481 108.7 2,154 696 590 1,564 106 214 214 August 2.... -2 1,551 -1,564 114.2 2,264 713 620 1,644 93 235 235 9.... 58 1,658 -1,687 121.6 2,403 745 702 1,701 43 291 291 16.... 6 1,708 -1,703 122.8 2,424 716 678 1,746 38 295 295 23.... 7 1,522 -1,515 111.6 2,372 850 802 1,570 48 210 210 30.... -1 1,130 -1,131 83.6 2,102 973 869 1,233 103 161 161 33 others 1972—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 August 2----- -19 1,039 -1,090 15.6 5,870 4,831 2,732 3,138 2,099 257 501 -244 9.... 41 1,024 -986 14.0 5,955 4,931 2,821 3,135 2,110 241 608 -367 16.... 15 892 -904 12.8 6,322 5,430 3,171 3,151 2,259 243 572 -329 23.... 38 1,803 -1,765 25.4 6,663 4,860 3,131 3,532 1,729 443 347 96 30.... 3 1,340 -1,419 20.5 6,180 4,840 2,799 3,381 2,040 216 264 -48 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
SEPTEMBER 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)* last par. Sec. 133 Federal Reserve Bank A R u a 1 g t 9 e . 7 2 3 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 7 2 3 o 1 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 7 2 3 o 1 n , Ef d fe a c t t e ive Pre r v at io e us Boston.................................................. 4Vi Dec. 13, 1971 4 V4 5 Dec. 13, 1971 5V4 6Vi Dec. 13, 1971 634 New York........................................... 4Vi Dec. 17, 1971 4% 5 Dec. 17, 1971 51,4 6Vi Dec. 17, 1971 634 Philadelphia........................................ 4Vi Dec. 17, 1971 434 5 Dec. 17, 1971 5V4 6 Vi Dec. 17, 1971 634 Cleveland............................................. 4% Dec. 17, 1971 434 5 Dec. 17, 1971 514 6% Dec. 17, 1971 6*4 Richmond............................................ 4Vi Dec. 24, 1971 434 5 Dec. 24, 1971 5Vi 6Vi Dec. 24, 1971 634 Atlanta................................................. 4Vi Dec. 23, 1971 434 5 Dec. 23, 1971 5V4 6^ Dec. 23, 1971 634 Chicago................................................ 41/2 Dec. 17, 1971 4!4 5 Dec. 17, 1971 514 6i/i Dec. 17, 1971 634 St. Louis.............................................. 4Vi Dec. 13, 1971 434 5 Dec. 13, 1971 514 6Vi Dec. 13, 1971 634 Minneapolis........................................ 4Vi Dec. 23, 1971 434 5 Dec. 23, 1971 514 6 Vi Dec. 23, 1971 634 Kansas City........................................ 4Vi Dec. 13, 1971 434 5 Dec. 13, 1971 514 6Vi Dec. 13, 1971 634 Dallas................................................... 4Vi Dec. 24, 1971 434 5 Dec. 24, 1971 514 6Vi Dec. 24, 1971 634 San Francisco.................................... 41/2 Dec. 13, 1971 434 5 Dec. 13, 1971 514 6Vi Dec. 13, 1971 634 1 Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and of agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully over 6 months and 9 months, respectively. guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)- Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 Wi 1 Vi 1959—Mar. 6 2i/i-3 3 1969—Apr. 4..................... 5 Vi-6 6 16 3 3 8..................... 6 6 1955—Apr. 14............. W2-IV4 11/2 May 29 3 -3 Vi 3 Vi 15............. m-W 4 1% June 12 31/2 3% May 2............. iy4 1% Sept. 11 3 Vi-4 4 1970—Nov. 11..................... 534-6 6 Aug. 4............. l%-2% 134 18 4 4 13..................... 534-6 534 W4-2V4 2 16..................... 534 534 S N e o p v t . . m 1 1 9 3 8 . . Y . . . . . . . . . . . Y . . . . . . . . . . . . . ' . . . . . . . Y . . . . . . . . . . 2 2 21 / 2 4 V - - - 2 2 2 4 1 V % / 4 2 2 2 2 2 1 V V / 4 4 2 1960— A Ju u n g e . 1 1 1 2 0 4 3 , , , 3 3 3 V V 3 i i - - V - 3 4 4 i Vi 4 3 3 V * i Dec. 1 4 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 V V 5 i i 1 - - 5 5 /i 3 3 4 4 5 5 5 1 3 V / 4 2 i 23............. 2Vi 21/2 Sept. 9, 3 3 1956— A A u p g r. . 2 2 3 1 0 4 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 V V V 4 3 4 i - - - 3 3 3 2 2 3 3 V V 4 4 1 1 9 9 6 6 4 3 — — N Ju o ly v . 2 2 3 1 6 4 7 0 , , , 3 3 4 3 V 1 - / i 3 2 -4 Vi 4 4 3 3 1 V /2 i 1971—Jan. 2 2 1 1 8 2 9 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 i4 5 5 - - - 1 5 5 5 4 V 1 1 4 4 i 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 3i/i 31/2 1965—Dec. 6, 4 -4 Vi 41/2 19..................... 434 434 N De o c v . . 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 -3i/i 3 3 1967—Apr. 1 7 3. , 4 4 - % 41/2 4 41/2 July 2 1 3 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 34-5 5 5 1958—Jan. 22............. 234-3 3 14, 4 4 Nov. 11..................... 434-5 5 2 4 2^-3 2% Nov. 20, 4 -4 Vi 4Vi 19..................... 434 434 A M p a r r . . 2 1 1 7 1 8 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 3 l/4 2 ^ 4 V - - - 2 2 3 4 Y 1 4 4 2 2 2 i V y % % 4 4 1968—Mar. 2 2 1 7 2 5 , , 4V 4 5 i V -5 i 4 4 5 1 V /2 i Dec. 2 1 1 4 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 V i/ 4 i i 1 - - / 4 4 2 3 3 4 4 4 4 4 1 3 V / 4 4 i M Au a g y . 1 9 5. . . . . . . . . . . . . . . . . . . . . . . . . . 13 i 4 y -2 4 1 1 % % Apr. 2 1 6 9 5 51 -5 /2 1/2 5 5 1 V /2 i In effect Aug. 31, 1972........ 4Vi 41/2 Sept. 12............. 13/4-2 2 Aug. 16 5 V4-5 Vi 5 Vi 23............. 2 2 30 5% 5Va Oct. 24............. 2 -2Vi 2 Dec. 18 514-51/2 51/2 Nov. 7............. 21/2 21/i 20 5 Vi 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 □ SEPTEMBER 1972 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4.5 deposits 2,7 deposits 2,4,7 (all classes of banks) Time depos its Reserve Country Other Effective date 1 C re b e c s a n i e n t r t y k r v a s e l b s c R a e i n r t e v y k e s C ba o tr n u y k n s b cl a a ( o n a s k l 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 il r d ep $ O 5 o s v m it e s i r l lion lion lion lion lion lion In effect Dec. 31, 1949......... 22 18 12 5 1966—July 14,21........ 6 16i/i « 12 64 64 5 Sept. 8, 15........ 6 1951—Jan. 11,16................. 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2............... 3 Vi 3^ 1953—juiy 9} i................... 22 19 13 Mar. 16............... 3 3 1954—June 24, 16................. 21 5 July 29, Aug. 1.... 20 18 12 1968—Jan. 11,18........ 16i/i 17 12 12i/i 1958—Feb. 27, Mar. 1.... 191/2 171/i Hi/i Mar. 20, Apr. 1.... 19 17 11 1969—Apr. 17............... 17 171/2 12i/i 13 Apr. 17........................ I8I/2 Apr 24 ... . 18 16Vi 1970—Oct. 1................... 5 1960—Sept. 1....................... 171/2 Nov. 24....................... 12 In effect Aug. 31, 1972. 17 171/i 12i/i 13 3 3 5 Dec 1 I6I/2 1962—July 28....................... (3) Present legal 4 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 per cent. 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 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
SEPTEMBER 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% 3V4 Multiple maturity:3 30-89 days............ 4 4% 90 days-1 year... 5 1 year to 2 years.. 5 5^ 2 years and over.. 5V4 Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more..., 4 1 year to 2 years.. 5 Vi 5 % 9 6 0 m d o a n y t s h t s o t o 6 m 12 o m nt o h n s t . h . s . 2 3 % % 4% 5 % $1 2 0 0 y , e 0 a 0 r 0 s a a n n d d o o v v e e r r: . . 5Y4 Less than 90 days.......... 1 4 30-59 days........... 5 % (4) (30-89 days) 60-89 days............ 5V4 (4) 90-179 days......... 5V2 6 6V4 180 days to 1 year. 7 1 year or more... W/4 m 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 6l/4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6 Vi per cent on maturities of those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks All All Item m b e a m nk 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 m nk 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 June 14, 1972 Four weeks ending July 12, 1972 Gross demand—Total. 196,077 41,147 8,108 70,345 76,477 Gross demand—Total.. 202,732 43,143 8,156 72,656 78,778 Interbank................... 25,252 11,481 1,360 9,314 3,097 Interbank.................... 26,670 12,169 1,414 9,778 3,309 U.S. Govt.................. 6,142 948 252 2,481 2,461 U.S. Govt................... 6,434 996 238 2,730 2,471 Other........................... 164,682 28,718 6,496 58,550 70,919 Other........................... 169,629 29,979 6,505 60,148 72,997 Net demand i............... 149,937 26,506 6,429 53,178 63,825 Net demand i................ 153,361 27,666 6,420 54,160 65,116 Time................................ 224,607 27,779 8,170 81,710 106,947 Time................................. 225,532 27,702 8,493 81,709 107,628 Demand balances due Demand balances due from domestic banks 13,424 3,616 147 2,725 6,936 from domestic banks. 13,955 3,619 132 2,869 7,335 Currency and coin.... 5,468 442 103 1,716 3,206 Currency and coin........ 5,583 458 109 1,743 3,271 Balances with F.R. Balances with F.R. Banks.......................... 27,171 5,531 1,387 11,145 9,109 Banks........................... 27,114 5,548 1,388 11,033 9,147 Total reserves held.... 32,639 5,973 1,490 12,861 12,315 Total reserves held........ 32,697 6,006 1,497 12,776 12,418 Required..................... 32,485 5,962 1,492 12,850 12,182 Required...................... 32,475 5,968 1,491 12,751 12,265 Excess......................... 154 11 -2 11 133 Excess.......................... 222 38 6 25 153 i 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 □ SEPTEMBER 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 Aug. 30 Aug. 23 Aug. 16 Aug. 9 Aug. 2 Aug. 31 July 31 Aug. 31 Assets Gold certificate account.................................... 10,303 10,303 10,303 10,303 10,303 10,303 10,303 9,875 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash........................................................... 324 328 325 323 322 327 324 280 Loans: Member bank borrowings............... 1,330 878 535 842 1,271 1,091 83 858 Other..................................................... Acceptances: Bought outright.................................. 67 67 68 65 63 66 63 52 Held under repurchase agreements. 58 77 97 55 30 55 Federal agency obligations: Bought outright................................... 1,076 1,169 1,169 1,169 1,041 1,076 1,079 Held under repurchase agreements. 118 29 3 48 74 69 U.S. Govt, securities: Bought outright: Bills.............................. 30,099 29,581 30,764 30,686 30,725 29,814 30,724 28,937 Certificates—Special. Other.. Notes........................... 36,703 36,703 36,607 36,596 36,596 36,703 36,596 34,513 Bonds......................... 3,511 3,511 3,491 3,502 3,502 3,511 3,502 3,185 Total bought outright....................... i 70.313 1-269,795 i 70,862 i 70,784 i 70,823 i 70,028 i 70,822 66,635 Held under repurchase agreements. '526 649 609 632 712 233 Total U.S. Govt, securities. 70,839 69,795 71,511 71,393 71,455 70,740 70,822 66,868 Total loans and securities..................... 73,488 71,909 73,389 73,569 73,933 73,077 72,047 67,902 Cash items in process of collection... *10,526 *1 1,182 *13,382 *11,204 *11,930 *9,948 9,968 9,232 Bank premises......................................... 164 165 164 164 164 164 164 142 Other assets: Denominated in foreign currencies. 34 25 14 14 7 34 7 23 IMF gold deposited 3....................... 144 All other............................................... 568 ‘537' 498 "1,142 i' 062 ’576 ^097 477 Total assets. *95,807 *94,849 *98,475 *97,119 *98,121 *94,829 94,310 88,475 Liabilities F.R. notes.............................................. 55,145 55,160 55,408 55,430 55,102 55,120 54,897 51,887 Deposits: Member bank reserves.................... *28,611 *26,908 *28,426 *28,224 *29,080 *28,198 26,185 25,467 U.S. Treasurer—General account. 1,406 1,919 1,792 2,473 2,137 1,727 2,298 987 Foreign............................................... 168 187 171 156 168 192 160 122 Other: IMF gold deposited 3................. 144 All other........................................ 562 690 592 525 Total deposits. *30,787 *29,587 *31,047 *31,415 *32,075 *30,709 29,263 27,245 Deferred availability cash items............ 7,473 7,787 9,754 8,069 8,524 6,580 7,744 6,982 Other liabilities and accrued dividends. 577 554 570 573 575 587 577 617 Total liabilities.......................................... *93,982 *93,088 *96,779 *95,487 *96,276 *92,996 92,481 86,731 Capital accounts Capital paid in................................................................... 778 777 775 775 773 778 775 731 Surplus................................................................................. 742 742 742 742 742 742 742 702 Other capital accounts..................................................... 305 242 179 115 330 313 312 311 Total liabilities and capital accounts............................ *95,807 *94,849 *98,475 *97,119 *98,121 *94,829 94,310 88,475 Contingent liability on acceptances purchased for foreign correspondents................................................ 287 286 267 265 263 287 263 245 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 30,551 30,671 30,580 30,260 29,923 30,337 29,804 20,351 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)....................... 59,047 59,105 59,021 58,917 58,854 59,088 58,917 55,161 Collateral held against notes outstanding: Gold certificate account................................................ 1,945 1,945 1,945 1,945 1,945 1,945 1,945 3,190 U.S. Govt, securities....................................................... 58,365 58,365 58,165 58,065 58,055 58,365 58,055 53,440 Total collateral..................................................................... 60,310 60,310 60,110 60,010 60,000 60,310 60,000 56,630 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
SEPTEMBER 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 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 a it n s y Dallas F c S i r s a a c n n o Assets 10,303 593 2,182 734 876 796 413 2,129 392 156 475 513 1,044 Special Drawing Rights certif. acct.... 400 23 93 23 33 36 22 70 15 7 15 14 49 1,227 188 219 53 55 119 243 55 38 36 70 50 101 327 18 25 12 36 40 36 45 19 7 38 14 37 Loans: Secured by U.S. Govt, and agency 1,091 135 744 1 6 58 46 72 5 3 2 5 14 Acceptances: 66 66 Held under repurchase agreements.. 30 30 Federal agency obligations: Bought outright................................... 1,076 48 277 57 83 80 58 173 40 22 44 49 145 Held under repurchase agreements.. 74 74 U.S. Govt, securities: 170,028 3,135 17,996 3,719 5,378 5,204 3,803 11,259 2,613 1,408 2,883 3,180 9,450 Held under repurchase agreements.. 712 712 73,077 3,318 19,899 3,777 5,467 5,342 3,907 11,504 2,658 1,433 2,929 3,234 9,609 Cash items in process of collection... 13,404 781 2,228 794 933 1,107 1,481 2,059 694 524 905 874 1,024 164 2 8 4 28 13 16 17 15 25 17 12 7 Other assets: Denominated in foreign currencies.. 34 2 29 2 3 2 2 5 1 1 1 2 4 All other............................................... 576 49 168 28 37 40 28 75 19 12 21 23 76 Total assets............................................... 99,512 4,974 24,831 5,427 7,468 7,495 6,148 15,959 3,851 2,201 4,471 4,736 11,951 Liabilities F.R. notes................................................. 56,347 2,955 14,000 3,327 4,480 4,931 2,841 9,603 2,191 975 2,195 2,172 6,677 Deposits: Member bank reserves....................... 28,198 1,144 7,543 1,323 1,853 1,455 1,862 4,146 965 655 1,294 1,722 4,236 U.S. Treasurer—General account.. 1,727 80 468 79 129 122 127 121 80 91 156 76 198 Foreign.................................................. 192 7 3 74 8 14 8 11 24 5 4 7 9 21 Other: All other........................................... 592 3 531 4 1 15 5 3 1 2 3 24 Total deposits.......................................... 30,709 1,234 8,616 1,414 1,997 1,600 2,005 4,294 1,051 750 1,459 1,810 4,479 Deferred availability cash items.......... 10,036 678 1,572 562 783 821 1,149 1,687 526 424 717 633 484 Other liabilities and accrued dividends 587 27 167 31 44 41 33 90 21 12 22 25 74 Total liabilities........................................ 97,679 4,894 24,355 5,334 7,304 7,393 6,028 15,674 3,789 2,161 4,393 4,640 11,714 Capital accounts Capital paid in........................................ 778 34 201 39 71 41 54 120 26 18 33 42 99 Surplus....................................................... 742 34 193 38 68 38 50 111 25 17 32 41 95 Other capital accounts........................... 313 12 82 16 25 23 16 54 11 5 13 13 43 Total liabilities and capital accounts.. 99,512 4,974 24,831 5,427 7,468 7,495 6,148 15,959 3,851 2,201 4,471 4,736 11,951 Contingent liability on acceptances purchased for foreign correspond ents......................................................... 287 13 4 75 15 26 15 19 43 10 6 12 16 37 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)................................................. 59,088 3,167 14,730 3,406 4,655 5,129 3,072 9,871 2,308 1,017 2,289 2,310 7,134 Collateral held against notes out standing : Gold certificate account.................... 1,945 150 300 350 285 700 155 5 U.S. Govt, securities......................... 58,365 3,050 14,850 3,250 4,400 4,915 3,150 9,300 2,230 1,040 2,400 2,380 7,400 Total collateral........................................ 60,310 3,200 14,850 3,550 4,750 5,200 3,150 10,000 2,385 1,040 2,400 2,385 7,400 1 See note 6 on page A-5. 4 After deducting $212 million participations of other Federal Reserve 2 After deducting $25 million participations of other Federal Reserve Banks. Banks. 3 After deducting $118 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 □ SEPTEMBER 1972 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r a u o s r s e s s G sa r l o e s s s Re ti d o e n m s p c G h p r a u o s r s e s s G sa r l o e s s s Re ti d o e n m s p c G p h r a u o s r s e s s G sa r l o e s s s m re s a d h t o e i u f r m 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 i u c f r h t i s . ty tions 1971—July. 2,067 1,617 127 2,067 1,617 127 Aug. 1,818 1,024 1,709 1,024 991 84 -444 Sept. 2,102 1,088 83 1,818 1,088 83 46 104 189 -104 Oct.. 772 1,133 772 1,133 Nov. 1,883 1,070 ’266’ 1,129 1,070 ’266* 24 -3,548 406 1,478 Dec. 3,160 1,981 3,055 1,981 11 130 21 -130 1972—Jan.. 915 248 110 499 248 110 16 187 Feb. 2,036 3,481 410 1,894 3,481 410 10 1,301 73 959 Mar. 2,009 298 155 1,829 298 155 11 92 Apr. 2,666 1,478 135 2,254 1,478 133 7 -2 255 May 475 291 475 291 2,626 -2*626 June 1,294 335 96 1,094 335 -90 69 July. 2,753 3,286 2,753 3,286 I Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers* agreements Federal agency acceptances (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net c G 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 u r 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 u r 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 s G e it c o ie u v s r t , j r O ig u h t- t R a m c g e h e r p a e n s u e t e r s r O i n g u e h t t t , m r a c e g h n e p r a e n e u s t t e r e s , change1 1971—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 8 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 July. 1,736 1,736 -533 -26 -10 -570 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 e u rl n in d g s s A ch u i 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 il n t d h d e e s r r s f S r w an is c s s 1968—Dec., 2,061 1,444 433 165 1 1969—Dec.. 1,967 1,575 199 60 125 1970—Dec., 257 154 98 1971—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 8 Feb. 17 2 8 Mar. 17 2 8 Apr. 17 2 8 May 57 2 50 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 Aug. 30 Aug. 23 Aug. 16 Aug. 9 Aug. 2 Aug. 31 July 31 Aug. 31 1,330 878 535 843 1,273 1,091 83 858 Within 15 days.................................................................. 1,330 878 534 842 1,272 1,090 81 857 16 days to 90 days........................................................... 1 1 1 1 2 1 91 days to 1 year............................................................. Acceptances—T otal............................................................. 125 67 145 162 118 96 63 107 Within 15 days.................................................................. 77 24 102 114 74 48 17 67 48 43 43 48 44 48 46 40 91 days to 1 year.............................................................. U.S. Government securities—Total................................. 70,839 69,795 71,511 71,393 71,455 70,740 70,822 66,868 Within 15 days1................................................................ 4,999 3,707 5,275 6,051 6,175 3,212 4,209 2,542 16 days to 90 days........................................................... 14,420 14,477 14,492 15,100 15,089 14,497 15,726 18,904 91 days to 1 year............................................................. 18,945 19,136 19,385 18,972 18,921 20,556 19,617 15,904 Over 1 year to 5 years.................................................... 24,859 24,859 24,781 24,108 24,108 24,859 24,108 23,240 Over 5 years to 10 years................................................. 6,102 6,102 6,079 5,913 5,913 6,102 5,913 5,377 Over 10 years.................................................................... 1,514 1,514 1,499 1,249 1,249 1,514 1,249 901 Federal agency obligations—Total.................................. 1,194 1,169 1,198 1,172 1,089 1,150 1,079 69 Within 15 days1............................................................... 152 44 30 3 48 109 38 69 16 days to 90 days........................................................... 31 67 110 111 99 30 99 91 days to 1 year............................................................. 117 149 149 149 146 117 146 Over 1 year to 5 years.................................................... 519 534 534 534 475 519 475 Over 5 years to 10 years................................................ 227 227 227 227 197 227 197 Over 10 years................................................................... 148 148 148 148 124 148 124 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 SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 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—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 L972—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.................................. ’■13,169.3 5,801.4 3,053.1 ’•7,367.9 '4,314.8 85.6 202.1 87.3 58.9 r47.8 May................................ M3,400.3 5,939.2 3,148.8 r7,461.1 '4,312.2 85.6 200.8 89.8 58.7 46.9 June................................ ’•13,281.6 5,780.8 3,096.4 H, 500.7 r4,404.4 84.7 199.9 88.1 ’’58.6 47.5 July................................. 13,000.1 5,633.0 2,996.3 7,367.1 4,370.8 82.3 194.4 84.2 57.1 46.8 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 □ SEPTEMBER 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 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--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 M[ay........... 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 July............ 62,435 42,449 7,052 2,326 135 3,155 9.231 20,550 19,986 5,502 14,052 196 229 2 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin, overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 Total, out Held by standing, As security For F.R. 1972 1971 Kind of currency July 31, against Treasury F.R. Banks 1972 gold and cash Banks and silver and Agents July June July certificates Agents 31 30 31 Gold........................................................................................ 10,410 (10,303) 107 Gold certificates.................................................................... (10,303) 210,302 1 Federal Reserve notes......................................................... 58,917 125 4,021 54,771 54,572 51,448 Treasury currency—Total.................................................. 8,095 105 326 7,664 7,629 7,111 Dollars................................................................................ 719 31 49 638 633 482 Fractional Coin................................................................ 6,761 72 276 6,414 6,383 6,011 United States notes......................................................... 323 2 320 320 322 In process of retirement 3.............................................. 292 292 292 296 Total—July 31, 1972........................................................... 477,422 (10.303) 337 10.302 4,348 62,435 June 30, 1972.......................................................... 476,761 (10.303) 351 10.302 3,907 62,201 July 31, 1971........................................................... 472,880 (10,075) 487 10,074 3,760 58,558 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
SEPTEMBER 1972 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted r Not seasonally adjusted r Month or week M2 Ms Mi M% Mx (Mi plus time (M2 plus deposits Mi (Mi plus time (M2 plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other than institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 1968—De c 197.4 378.0 572.6 203.4 383.0 577.5 1969—De c 203.7 386.8 588.3 209.8 392.0 593.4 1970—De c 214.8 418.2 633.9 221.2 423.5 639.1 1971—Au g 228.0 454.5 697.6 224.9 451.7 694.5 Sept......... 227.6 455.6 701.2 226.2 454.3 699.5 Oct.......... 227.7 458.3 706.5 227.5 458.0 705.9 Nov......... 227.7 460.8 711.6 229.6 461.4 711.4 Dec.......... 228.2 464.7 718.1 235.1 470.2 723.4 1972—Ja n 228.8 469.9 727.3 235.3 475.3 732.8 Feb.......... 231.2 475.5 737.4 229.0 472.7 734.1 Mar......... 233.5 480.1 745.9 231.3 478.7 744.9 Apr.......... 235.0 483.0 752.7 236.1 485.4 755.6 May........ 235.5 486.1 758.8 231.3 483.2 755.9 June........ 236.6 490.4 766.1 234.7 488.9 765.5 Julyr----- 239.4 495.0 774.8 237.9 493.6 774.0 Aug.**. . . 240.4 498.1 781.5 237.1 495.3 778.1 Week ending— 1972—Aug. 2. 239.7 496.2 237.4 494.1 9. 240.1 497.2 237.4 494.9 16. 240.9 498.6 238.2 496.4 23p 240.4 498.3 235.8 494.2 30p 241.2 499.7 236.3 495.3 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Month Non Non Govt. or bank bank depos week Cur De Time and savings thrift Cur De Time and savings thrift its 5 rency mand deposits institu rency mand deposits institu depos tions 4 depos tions 4 its its CD’s 3 Other Total CD’s 3 Other Total 1968—Dec...................... 43.4 154.0 23.6 180.6 204.2 194.6 44.3 159.1 23.6 179.6 203.2 194.6 5.0 1969—Dec...................... 46.0 157.7 11.0 183.2 194.1 201.5 46.9 162.9 11.1 182.1 193.2 201.4 5.6 1970—Dec...................... 49.0 165.8 25.5 203.4 228.9 215.7 50.0 171.3 25.8 202.3 228.1 215.6 7.3 1971—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—Jan....................... 52.8 176.0 33.2 241.2 274.4 257.4 52.6 182.7 33.7 240.0 273.7 257.5 7.2 Feb...................... 53.2 178.0 33.8 244.3 278.1 261.8 52.6 176.4 33.6 243.7 277.3 261.4 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.................... 54.4 181.1 36.3 250.7 287.0 272.6 54.0 177.3 35.1 251.9 286.9 272.7 10.4 June.................... 54.7 181.9 37.1 253.8 290.9 r275.7 54.6 180.1 35.8 254.2 290.0 276.6 6.8 July..................... 54.9 r184.5 38.1 255.6 293.7 r279.7 ’55.3 r182.6 37.0 255.7 292.7 r280.4 7.2 Aug.p................. 55.1 185.3 39.3 257.7 297.0 283.2 55.3 181.8 39.9 258.2 298.1 282.8 5.3 Week ending— 1972__Aug. 2............. 54.9 184.8 38.6 256.5 295.1 54.9 182.6 38.2 256.7 294.9 7.8 9............. 55.2 185.0 38.6 257.0 295.6 55.8 181.7 38.9 257.5 296.4 6.4 16............. 55.0 185.9 38.8 257.7 296.5 55.5 182.7 39.4 258.2 297.6 5.3 23^........... 55.2 185.2 39.7 257.8 297.5 55.2 180.6 40.3 258.3 298.6 4.6 30^........... 55.2 186.0 40.4 258.5 298.9 54.8 181.5 41.2 259.0 300.2 4.4 1 Includes, in addition to currency and demand deposits, savings de Note.—For description of revised series and for back data, see pp. 880posits, time deposits open account, and time certificates of deposits other 93 of the November Bulletin. than negotiable time certificates of deposit issued in denominations of Average of daily figures. Money stock consists of (1) demand deposits $100,000 or more by large weekly reporting commercial banks. at all commercial banks other than those due to domestic commercial 2 Includes M2, plus the average of the beginning and end of month banks and the U.S. Govt., less cash items in process of collection and F.R. deposits of mutual savings banks and savings and loan shares. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside 3 Negotiable time certificates of deposit issued in denominations of the Treasury, F.R. Banks, and vaults of all commercial banks. Time de $100,000 or more by large weekly reporting commercial banks. posits adjusted are time deposits at all commercial banks other than those 4 Average of the beginning and end-of-month deposits of mutual savings due to domestic commercial banks and the U.S. Govt. banks and savings and loan shares. s At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 18 BANK RESERVES; BANK CREDIT □ SEPTEMBER 1972 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, Period >z< > Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 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 24.96 297.6 164.5 128.3 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 26.75 319.0 178.6 133.8 6.5 322.8 178.2 138.7 6.0 330.6 334.4 1971—Aug.... 30.74 r29.99 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 '30.49 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 '30.15 378.7 226.1 147.3 5.3 376.4 225.2 145.6 5.7 382.4 380.2 July. ... 33.14 r32.92 32.96 30.37 '382.4 228.2 '148.9 5.3 '380.9 227.1 '147.7 6.1 '386.3 '384.8 Aug.®... 33.42 33.05 33.21 30.59 384.9 230.5 149.8 4.6 382.2 231.3 146.6 4.3 389.1 386.4 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 Date loans Commercial loans Commercial m in e a v n n e t d s st 1 ,2 Total1,2 l 1 P o s o l a 2 u l n d s 3 s T an o d ta l indu l s P o tr l a u i n a s s l T U r u e . r S a y s . Other2 m in e a v n n e t d s s 1 t ,2 Total1,2 l 1 P o s 2 o l a u n ld s 3 s T an o d ta l indu l s P o tr l a u i n a s s l T U r u e . r S a y s . Other2 sold3 sold3 1968—Dec. 31.. 390.6 258.2 95.9 61.0 71.4 400.4 264.4 98.4 64.5 71.5 1969—Dec. 314. 402.1 279.4 283.3 105.7 108.3 51.5 71.2 412.1 286.1 290.0 108.4 111.0 54.7 71.3 1970—Dec. 31.. 435.9 292.0 294.9 109.6 111.7 58.0 85.9 446.8 299.0 301.9 112.5 114.6 61.7 86.1 1971—Aug. 25.. 468.4 309.7 312.4 115.2 117.0 60.9 97.8 466.1 309.3 312.0 114.2 116.0 58.7 98.1 Sept. 29.. 472.4 313.0 316.0 116.2 118.1 59.9 99.5 472.0 313.4 316.4 115.9 117.8 58.7 99.9 Oct. 27.. 477.2 317.0 319.9 116.6 118.4 59.1 101.1 476.5 315.1 318.0 115.6 117.4 60.0 101.5 Nov. 24.. 479.8 318.7 321.6 116.0 117.8 58.8 102.2 479.9 317.3 320.1 115.6 117.4 61.0 101.6 Dec. 31.. 485.7 320.6 323.4 115.5 117.1 60.7 104.5 497.9 328.3 331.1 118.5 120.1 64.9 104.7 1972—Jan. 26.. 491.4 325.7 328.7 116.4 118.1 59.7 106.0 490.1 322.7 325.6 115.2 116.9 62.7 104.8 Feb. 23.. 496.6 328.5 331.5 117.3 119.0 61.0 107.1 492.4 324.3 327.3 116.1 117.8 61.9 106.2 Mar. 29® . 504.3 333.3 336.1 118.1 119.9 62.2 108.7 500.7 330.0 332.8 118.1 119.9 62.4 108.4 Apr. 26® . 505.8 334.8 337.5 119.4 121.1 62.4 108.6 505.1 334.1 336.7 119.6 121.3 61.6 109.4 May 31® . 513.8 340.3 342.8 120.7 122.2 62.8 110.7 511.4 340.0 342.4 120.3 121.8 61.0 110.5 June 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 59.9 110.9 July 26®.. 518.4 345.9 348.3 120.8 122.2 61.8 110.7 518.5 348.4 350.8 121.6 123.0 59.2 110.9 Aug. 30®.. 526.3 353.6 355.9 123.1 124.7 61.0 111.7 522.9 351.9 354.3 121.4 123.0 58.9 112.1 1 Adjusted to exclude domestic commercial interbank loans. 5 Beginning June 30, 1972, commercial and industrial loans were re 2 Beginning June 30, 1971, Farmers Home Administration insured notes duced by about $400 million as a result of loan reclassifications at one totaling approximately $700 million are included in “Other securities” large bank. rather than in “Loans.” Note.—For monthly data on total loans and investments 1959-70, see 3 Loans sold outright by commercial banks to own subsidiaries, Dec. 1971 Bulletin, pp. 974-75. For monthly data, 1948-58, see Aug. foreign branches, holding companies, and other affiliates. 1968 Bulletin, pp. A-94-A-97. For a description of the seasonally ad 4 Beginning June 30, 1969, data revised to include all bank-premises justed series see the following Bulletins: July 1962, pp. 797-802; July 1966, subsidiaries and other significant majority-owned domestic subsidiaries; pp. 950-55; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. For earlier data include commercial banks only. Also, loans and investments monthly data on commercial and industrial loans, 1959-71, see July 1972 are now reported gross, without valuation reserves deducted, rather than Bulletin, p. A-109. For description of series, see July 1972 Bulletin, net of valuation reserves as was done previously. For a description of the p. 683. Data are for last Wednesday of month except for June 30 and revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in this table Dec. 31; data are partly or wholly estimated except when June 30 and Dec. beginning January 1959 have been revised to include valuation reserves. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and canital Total Bank credit assets, Date c c G s S e a a to r D t n o e t c d l i s R d f k i i T r s o c e u r i t n u n a u e r g a c n r y t y s d Total Lo n a e 2 n t s Total U.S. s C a T a v o r n i m e n d a g l s . s ury R F se e e c s d e u e r r r v i a t e i l es Other 3 O s ri e t t c i h 4 e u e s r c T l n a i i a n p e a t o n i b t e i e t — t d a t i s a l l l , c d u T e r a p o r n o e t d a s n i l c ts y c C o m a a n a u p n i c e s n d i t c t t a s . , l banks Banks 1947—Dec. 31.. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30.. 22,706 4,636 171,667 60,366 96,560 72,894 20,778 2,888 14,741 199,008 184,384 14,624 1967—Dec. 30.. 11,982 6,784 468,943 282,040 117,064 66,752 49,112 1,200 69,839 487,709 444,043 43,670 1968—Dec. 31.. 10.367 6,795 514,427 311,334 121,273 68,285 52,937 51 81,820 531,589 484,212 47,379 1969—Dec. 315. 10.367 6,849 532,663 335,127 115,129 57,952 57,154 23 82,407 549,879 485,545 64,337 1970—Dec. 31.. 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971—Aug. 25.. 10.500 7.500 611,300 365,700 130,000 62,200 66,400 1,400 115,600 629.300 563.500 65.800 Sept. 29.. 10.500 7.500 617,000 368,100 131,300 62,200 67,600 1,600 117,500 635,000 567.500 67,600 Oct. 27.. 10.500 7.600 622,200 369,500 133,600 63,300 67,800 2.500 119,100 640.300 571,600 68.800 Nov. 24.. 10.500 7.600 626,700 370,900 136,400 64,400 69,500 2.500 119,400 644,800 575,800 69,000 Dec. 31.. 10,532 7,627 650,677 386,010 141,547 68,198 70,804 2,545 123,120 668,837 604,415 64,423 1972—Jan. 26.. 10,500 7,700 642,600 380,600 138,400 66,000 69.900 2.500 123,600 660,800 593,000 67.900 Feb. 23.. 10,000 7,800 643.300 381.000 136.600 65,200 68.900 2.500 125.700 661,100 592.900 68,200 Mar. 29*. 10,000 7.900 653,700 386,900 138.200 65,800 69.900 2,600 128,500 671,600 606,700 64.900 Apr. 26*. 10,000 7.900 660,000 391.000 138,900 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 8,100 669.300 400,700 136.600 63.000 71,000 2,600 132.100 688,200 622.900 65,300 July 26*. 10,800 8,100 674,100 405,200 136.200 62,700 70.900 2,600 132.700 693.100 628,100 65,000 Aug. 30*. 10,800 8,200 678.300 408,800 135,700 62,300 70,800 2,600 133,800 697,300 630,200 67,100 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n n u s c i k r d y s e d ju e m D p s a a t o d e e n s d d i t 7 s Total o b r u C e a t n n u s c i k r d y s e d ju e m D p a s a t o 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 9 l S P t a S e o v y m s i s t n a g 3 l s n e F e i o g t n r 1 , 0 T h c i u r n o a e r g l s a y d s h s s b c a a a o A v n n m i t d k n l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315... 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970—Dec. 31.... 209,400 47,800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971—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 53,300 177,000 377,000 289,900 87,100 2,900 400 9,500 2,900 July 26*... 233,100 53,600 179,500 232,800 53,700 179,100 380,400 292,800 87,600 3,000 300 9,000 2,500 Aug. 30*... 235,900 53,500 182,400 233,800 53,800 180,000 387,300 299,000 88,300 2,900 300 4,500 1,400 1 Includes Special Drawing Rights certificates beginning Jan. 1970. 8 See first paragraph of note 2. 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits 9 Includes relatively small amounts of demand deposits. Beginning with accumulated for payment of personal loans” were excluded from “Time June 1961, also includes certain accounts previously classified as other lia deposits” and deducted from “Loans” at all commercial banks. These bilities. changes resulted from a change in Federal Reserve regulations. See table 10 Reclassification of deposits of foreign central banks in May 1961 re (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-32. duced this item by $1,900 million ($1,500 million to time deposits and $400 See footnote 1 on p. A-23. million to demand deposits). 3 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 4 See second paragraph of note 2. Note.—For back figures and descriptions of the consolidated condition 5 Figures for this and later dates take into account the following changes statement and the seasonally adjusted series on currency outside banks and (beginning June 30, 1969) for commercial banks: (1) inclusion of con demand deposits adjusted, see “Banks and the Monetary System,” Section solidated reports (including figures for all bank-premises subsidiaries and 1 of Supplement to Banking and Monetary Statistics, 1962, and Bulletins other significant majority-owned domestic subsidiaries) and (2) reporting for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti of figures for total loans and for individual categories of securities on a mated and are rounded to the nearest $100 million. gross basis—that is, before deduction of valuation reserves. See also note 1. For description of substantive changes in official call reports of 6 Series began in 1946; data are available only for last Wed. of month. condition beginning June 1969, see Bulletin for Aug. 1969, pp. 642-46. 7 Other than interbank and U.S. Govt., less cash items in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 20 COMMERCIAL BANKS □ SEPTEMBER 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, S >82 44,349 15,952 23 7,173 14,278 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,( )65 105,921 30,241 219 8,950 14,011 1947—Dec. 31 6. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31... 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30... 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 31 7. 421,597 295,547 54,709 71,341 89,984 530,665 435,577 27,174 735 5,054 208,870 193,744 18,360 39,978 13,661 1970—Dec. 31... 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—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 59,960101,490 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 61,030101,620 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 62,690 104,780 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 61,860 106,200 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 62,380 108,360 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 61,620 109,370 95,300 643.770 531,990 26,140 2,870 10,470 207,990 284,520 31,520 47,780 13,823 May 3125.. 529,510 358,080 60,960 110,470101,360 656.770 542,940 28,240 3,020 8,430 214,640 288,610 33,110 48,310 13,838 June 28^.. 535,580 365,380 59,600 110,600 92,730 653,980 538,620 26,520 3,000 8,920 209,710 290,470 34,240 48,340 13,875 July 26v.. 539,130 369,060 59,190 110,880 92,270 656,960 542,830 27,250 3,230 8,480 210,500 293,370 34,050 48,710 13.877 Aug. 30p.. 543,820 372,850 58,920112,050 92,070 661,850 544,230 27,030 3,310 3,900 210,370 299,620 35,700 49,140 13.877 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—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 2,64,847 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 26... 422,102 2,95,275 42,932 83,895 79,164 522,562 426,242 25,923 2,867 6,953 165,393 225,106 32,725 38,649 5.705 Aug. 30p.. 425,392 297,851 42,727 84,814 79,057 525,983 426,716 25,742 2,954 2,966 164,851 230,203 34,315 38,979 5.705 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 i95 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—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 7,372 12 May 31... 65,719 50,799 5,257 9,663 22.516 93,765 70,852 12,303 1,198 1,038 29,918 26,395 8,103 7,618 13 June 28... 66,761 51,973 4,962 9,826 19,971 92,258 70,213 11,790 1,156 989 29,649 26,629 7,528 7,559 13 July 26... 66,331 51,408 4,954 9,969 19.517 91,247 69,508 11,580 1,312 1,170 28,396 27,050 7,431 7,612 13 Aug. 30... 67,353 52,031 5,158 10,164 19,152 92,066 69,330 11,679 1,345 288 27,497 28,521 8,188 7,736 13 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 Other Total Num Class of bank lia Bor capital ber and date Cash bilities row ac of Total Loans assets3 and Demand ings counts banks U.S. capital Total3 Treas Other ac De Time Times ury 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—Aug. 25., 16,346 12,113 1,528 2,705 3,089 20,364 15,234 1,365 142 380 5,997 7,350 2,447 1,638 9 Sept. 29. 16,704 12,273 1,671 2,760 2,756 20,438 15,571 1,339 191 374 6,028 7,639 1,952 1.649 9 Oct. 27. 16,526 11,938 1,732 2,856 3,576 21,049 15,933 1,553 228 240 6,386 7,526 2,462 1,669 9 Nov. 24. 16,651 11,945 1,780 2,926 3,856 21,333 15,364 1,431 219 102 6,097 7,515 2,712 1.649 9 Dec. 31. 17,133 12,285 1,782 3,067 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1.935 1,682 9 1972—Jan. 26., 16,614 11,901 1,657 3,056 3,488 21,059 15,730 1,460 213 378 6,243 7,436 2,673 1,781 9 Feb. 23. 17,234 12,505 1,576 3,153 3,311 21.489 15,791 1,509 207 267 6,305 7,503 2.935 1,796 9 Mar. 29. 17,668 12,898 1,582 3,188 3,204 21,806 15,912 1,398 191 341 6.462 7,520 3,180 1,820 9 Apr. 26. 17,761 12,998 1,510 3,253 3,207 21,858 16,017 1,344 191 465 6,381 7,636 2,972 1,829 9 May 31. 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 Aug. 30. 19,200 14,701 1,455 3,044 2,880 23,128 17,147 1,487 196 68 6,226 9,170 2,985 1.850 9 Other reserve city: * 1941—Dec. 31.... 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12.557 4,806 1,967 351 1945—Dec. 31.... 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947_Dec. 31___ 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31... 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967—Dec. 30... 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31... 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 7. 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Dec. 31... 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971--Aug. 25. 137,513 98,538 13,132 25,843 27,341 172,142 138,865 9,111 667 3,366 54,235 71,486 12,375 12,854 156 Sept. 29. 140,060 100,339 13,121 26,600 27.832 175,407 140,334 9,237 846 2,982 54.557 72,712 13.927 12,922 156 Oct. 27. 139,515 98,621 13,810 27,084 30,995 177,945 143,113 10,006 847 1,963 56,832 73,465 13,732 13.012 156 Nov. 24. 141,421 100,284 14,203 26,934 32,048 180,956 142,820 9,537 733 1,264 57,068 74,218 16,692 13.012 156 Dec. 31. 149,401 106.361 15,912 27,129 33,732 190,880 155,226 11,241 933 3,557 62,474 77,020 14,799 13,197 156 1972—Jan. 26. 145,436 103,311 14,796 27,329 29,154 182,373 147,352 9,306 901 3,057 56,144 77,944 13,528 13,427 156 Feb. 23. 146,609 104,067 14,768 27,774 30,945 185,420 148,824 9,901 938 2,492 57,121 78,372 14.927 13,463 156 Mar. 29. 149,384 106,665 14,583 28,136 29,082 186,613 147,937 9,004 944 2,889 57,001 78,099 16,508 13,657 156 Apr. 26. 149,586 107.362 14,434 27,790 32,579 190,334 151,394 9,079 894 3,839 58,129 79,453 16,766 13,725 156 May 31. 151,153 108,846 14,362 27,945 34,413 193,947 155,174 9,985 1,020 2,763 60,716 80,690 16,435 13,890 156 June 28. 152,851 111,037 13,999 27,815 32,122 193,131 152,512 9,138 1,034 3,310 58,398 80,632 18,156 13,903 156 July 26. 154,528 113,172 13,873 27,483 30.832 193,689 153,772 9,<— 1,098 2,867 58,980 81,139 17,595 14,011 156 Aug. 30. 153,956 112,637 13,501 27,818 31,452 193,592 152,570 9,458 1,150 1,015 58,564 82,383 18,421 14,062 156 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—Aug. 25.. 164,524 103,683 22,884 37,957 22,946 193,200 168,067 2,775 135 2,597 66,526 96,034 2,726 14,153 5,553 Sept. 29.. 166,630 105,263 22.864 38,503 23,519 196,237 170,060 2,782 224 2,730 67,186 97,138 3,146 14,195 5.547 Oct. 27.. 168,253 106,317 22,956 38,980 24,987 199,382 173,198 3,052 224 1,927 69,821 98,174 3,261 14,291 5.548 Nov. 24.. 169,620 107,432 23,065 39,123 24,858 200,544 173,702 2,985 224 1,559 69,955 98,979 3,418 14,385 5,552 Dec. 31.. 175,211 110,357 24,343 40,511 26,783 207,798 181,780 3,853 263 2,993 74,072100,600 3,118 15,114 5,550 1972—Jan. 26.. 173,362 108,903 23.865 40,594 24,254 203,438 177,363 3,021 224 2,813 69,260102,045 3,374 14,567 5,541 Feb. 23.. 174,639 109,715 23,568 41,356 25,387 205,717 179,050 3,176 224 2,294 69,521103,835 3,459 14,775 5,543 Mar. 29.. 177,522 111,556 23,754 42,212 25.024 208,641 181,254 3,078 224 2,626 69,720105,606 3,676 14,864 5.536 Apr. 26.. 179,111 112,399 23,874 42,838 25,545 210,567 182,521 3,019 263 2,622 70,719105,898 4,018 15,002 5.536 May 31.. 179,450 113,382 23,119 42,949 27,057 213,129 184,891 3,213 263 2,742 72,231 106,442 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.. 182,661 116,565 22,707 43,389 25,745 214,899 186,267 3.208 263 2,606 71,860108,330 4,512 15,176 5.527 Aug. 30*V 184,883 118,482 22,613 43,788 25,573 217,197 187,669 3,118 263 1,595 72,564110,129 4,721 15,331 5.527 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 22 COMMERCIAL BANKS □ SEPTEMBER 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia Bor Total Num and FDIC assets 3 bilities row capital ber insurance Total Loans and Total 3 Demand ings ac of l U.S. Other capital De Time counts banks Treas 2 ac mand Time 5 ury counts4 G U o .S v . t. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,( 554 1,762 41,298 15,699 10 6,844 13,426 1945_Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,! 383 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13,464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450! 13,464 1970—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 64,691 104,020 98,281 635,805 535,703 31,824! 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1 National member: 1 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,:129 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182! 82,023 8,375 35 795 53,541 19,278 45 5,409, 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233| 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048; 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459i 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,3481 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572! 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 437 3,534 113,134 120,060 9,895 22,628 4,700 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 1970—Dec. 31.. 271,760 187,554j 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 1,933i 9,731 48,084 44,730 4,<4 11 8,166 24,168 7,986 130 2,945; 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777| 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 307. 88,346 64,007 9,902 14,437 26,344 119,358 93,858 9,773 285 1,341 45,152 37,307 4,104 8,689 1,236 Dec. 31.. 90,088 65,560 10,257 14,271 24,313 119,219 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 1970—Dec. 31.. 94,760 66,963 11,196 16,600 25,472 125,460 101,512 11,091 750 1,720 45,734 42,218 5,478 9,232 1,147 1971—June 30.. 96,939 67,726 10,279 18,934 27,499 129,955 107,484 13,389 539 1,865 44,731 46,959 6,071 9,823 1,138 Dec. 31.. 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,945 49,597 6,878 10,214 1,128 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992, 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550i 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 i 6,233 7,174 54,747 49,389 658 701 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310i 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,6361 13,873 9,349 ' 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675i 15,146 1 11,629 ' 8,403 74,328 67,107 786 89 588 31,004■ 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155; 14,020I 9,305i 84,605 76,368 908 94 691 34,615i 40,060 217 6,482 7,504 1969—June 307. 78,032 48,358! 14,341 15,333 8,696 i 88,802 : 78,610 791 78 749> 34,070 I 42,921 451 7,004■ 7,528 Dec. 31.. 82,133 51,6431 14,565i 15,925i 10,056> 94,453. 83,380 1,017r 85i 924|. 37,561 43,792: 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 1,4381 40,005i 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) 1861 1,40S ) 39,9081 57,2831 591 r 8,993 t 7,811 Dec. 31.. 108,527 67,1881 17,058! 24,282t 12,092» 123,97CI 109,841 1,212> 241I 1,722\ 44,71'f 61,946i 582> 9,451I 7,875 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia Bor Total Num a i n n d su F ra D nc IC e Total Loa l ns T U re .S as . Oth 2 er assets 3 c b a i a l a p i n c t i i d t e a s l Total3 m D a e n d Time Demand Tim 5 e r i o n w gs c c a o a p u c i n ta ts l ba b o n e f k r s ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31........... 1,457 455 761 241 763 2,283 1,872 329 1,:91 253 13 329 852 1945—Dec. 31........... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 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 1,2 66 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 11,398 117,414 102,254 1,348 227 1,429 41,091 58,160 847 9,489 7,993 Dec. 31......... 111,674 69,411 17,297 24,966 13,643 129,100 112,764 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 $300 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 □ SEPTEMBER 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b C a l n a k s s a o nd f lo T a a o n n t d s a l i f F e u e r n a d d l s C m o e m r Agri- o p s r u e r c c c F u a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot t h o er, U s .S ec . u T ri r t e i a e s s u 6 ry S a t n a d te call date invest sold, Total cial cul- es in- Other local Other ments etc.2 3.4 a i n n d a tu l r- 5 b T ro o tate v d i i d - - Bills g se o c v u t . r s it e i c e u s 5 d tr u ia s l k a e n r d s ot T h o ers Banks Others uals3 Total ce a r n t d ifi Notes Bonds rities deal cates ers Total;2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io 422,728 9,928286,750108,44310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1971—June 30. 481,270 15,663307,969 114,36212,2265,6343,493 2,844 16,95875,77769,1497,527 60,254 77,994 19,389 Dec. 31.517,244 19,954327,656 118,52612,4977,2923,659 4,591 16,92681,601 74,5148,04964,930 82,42022,284 All insured: 1941— Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 88,912 21,526 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 5,918 52,347 5,1293,621 1969—Dec. 31 io 419,746 9,693284,945 107,68510.314 5,6443,991 2,425 14,89069,66963,008 7,319 54,399 58,840 11,869 1971—June 30. 478,302 15,381306,194113,411 12,211 5,555 3,480 2,718 16,82575,615 68,9427,437 59,991 i i’72938j54012j50977,687 19,048 Dec. 31.514,097 19,623325,764117,60312,4827,201 3,644 4,405 16,79281,43474,263 7,939 64,691 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 7,356235,63996,0956,187 5,408 3,286 2,258 14,035 53,20748,3886.77639,833 47,227 7,558 1971—June 30. 378,769 12,026248,04098,573 7,0945,333 3,024 2,496 15,77056,93452,0376.777 44,038 *5^44425*365 '9*791 61,963 12,702 Dec. 31.405,570 15,373262,826101,4797,311 6,895 3,167 4,123 15,71361/091 55,8397,20747,633 65,244 14,494 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 93 111 564 238 11,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,503 28,189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 1971—June 30. 61,059 996 46,24726,948 3,822 637 1,106 4,210 4,202 3,916 1,385 5,116 811 2,274 1,561 7,298 1,401 Dec. 31. 63,342 774 47,941 26,526 4,701 677 1,722 3,997 4,496 4,151 1,641 5,597 7,729 1,302 City of Chicago: 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1969—Dec. 31io 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 1,736 473 717 276 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 3,661 205 427 1,503 17 1,459 855 387 29.552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io 121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,706 17,5692,757 11,944 16,625 1,859 1971—June 30. 137,451 5,010 92,17638,189 1,601 7861,419 893 7,51720,722 17,929 3,12014.552 1,850 7,752 3,44522,409 3,304 Dec. 31. 149,484 7,771 98,67340,397 1,630 1,193 1,407 1,671 7,49722,300 19,405 3,173 15,912 23,459 3,670 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 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 4 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 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31 io 141,286 3,31 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 1971—June 30. 163,782 5,407 98,45226,9225,433 352 723 279 2,577 31,14829,113 1,905 22,634 2,310 14,622 4,51029,6757,614 Dec. 31. 175,582 6,208104,52028,201 5,599 474 821 348 2,651 33,347 31,117 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 18,843 17,112 749 16,216 16,031 6,687 Dec. 31. 111,674 4,581 64,830 17,0465,187 398 492 468 1,21320,509 18,675 842 17,297 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
SEPTEMBER 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 F w e R a r . i n v R e t k h e . s s r C c e a o n n u i c d r n y b m a a w d n e n o i c s k t e t h i s s c 7 ju p m o s 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 o k n r 9 G U o .S vt . . S g l a o o t n c a v d a t t e l . c C c h o a f e e i e f n e r f r c s d d i t * k i s, IPC I b n a t n e k r G P U S a o o a n . s S v v d t t . a . l S l g a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s c C o a t a u a c p l n i t s etc. ings Total:3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1969—Dec. 31 io.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 1971—June 30... 24,066 7,634 21,546 168,263 28,699 2,614 8,412 17,276 11,949 177,692 2,207 51726,221 228,17622,54745,311 Dec. 31... 27,478 7,541 25,548 185,907 29,349 2,855 10,169 17,665 10,130 192,581 2,908 52930,384242,055 25,91247,211 All insured: 1941_Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31 io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,860 18,02439,450 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. 31 io.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 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. 31 io.. 4,358 463 455 21,316 8,708 1,641 694 1,168 6,605 28,354 268 45 207 14,6924,405 6,301 1971—June 30... 4,716 466 1,193 15,264 13,504 1,717 1,199 789 6,032 25,994 937 68 1,896 21,5724,531 6,860 Dec. 31. .. 5,362 459 1,806 18,315 12,047 1,779 1,513 909 3,841 26,193 1,186 51 2,060 22,1455,195 7,285 City of Chicago: 1941—Dec. 31.... 1 021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31.... *942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1969—Dec. 3110.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1971—June 30... 991 126 247 5,044 1,439 51 318 352 211 6,084 85 3 741 6,3532,359 1,636 Dec. 31... 956 133 202 5,335 1,592 101 363 333 240 6,323 168 1 809 6,749 1,935 1,682 Other reserve city: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1969—Dec. 31 io.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1971—June 30... 10,394 1,822 4,069 43,872 9,631 535 2,954 3,716 2,455 51,451 735 249 8,863 62,312 12,15312,826 Dec. 31... 12,264 1,819 4,222 48,063 10,637 604 3,557 3,600 2,533 56,341 933 225 10,516 66,36214,79913,197 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 31 *o.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 1971—June 30... 7,964 3,455 7,461 63,490 3,031 56 2,513 8,095 1,956 58,691 223 143 9,033 85,521 2,656 14,499 Dec. 31... 8,896 3,367 8,663 68,733 3,779 73 2,993 8,113 1,973 63,986 263 16710,505 90,298 3,118 15,114 Nonmember:3 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1969—Dec. 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 □ SEPTEMBER 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans 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 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 Aug. 4............... 265,418 8,829 8,263 409 144 181,714 81.528 2,210 482 4,074 148 2,403 7,057 7,081 11............... 264,797 8,594 8,119 386 72 181,671 81,356 2,207 613 3,791 149 2,394 7,180 7,121 18................ 266,380 8,825 8,083 504 172 183,615 82.248 2,191 724 3,907 118 2,405 6,764 7,226 2 5 266,399 8,600 7,699 679 158 183,873 82,310 2,185 780 3,951 119 2,428 6,601 7,105 1972 July 5............... 298,209 12,901 11,683 638 359 221 205,496 85,442 2,552 589 7,425 158 2,708 7,064 9,558 12................ 297,337 12,250 9,566 2,228 269 187 205,134 85,267 2.554 1,319 160 2,693 6,495 9,553 19................ 296,385 11,951 10,916 536 287 212 205,144 85,314 2.555 653 155 2,684 6,637 9,576 2 6 296,091 11,571 10,567 597 250 157 204,904 85,188 2.549 717 167 2,690 6,433 9,613 Aug. 2*............. 298,463 11,804 10,692 682 252 178 206,701 85,321 2.550 892 7,658 176 6,362 9,807 9*.............. 297,328 11,523 10,326 718 300 179 205,983 84,981 2.543 750 7,277 165 6,339 9,839 16*.............. 298,503 12,069 11,073 583 259 154 206,793 85,239 2.543 862 7,204 165 6,275 9,972 23 *.............. 298,951 12,171 10,278 1,496 216 181 206,917 85,157 2,537 970 7,104 185 6,144 10,097 30*............... 297,630 10,677 9,792 499 216 170 206,978 85,026 2,535 848 7,133 184 6,247 10,188 New York City 1971 Aug. 4.............. 57,062 1,367 1,218 115 43,300 25,608 380 2,841 579 2,238 1,590 11................. 56,624 1,162 1,128 31 43,221 25,617 508 2,485 575 2,317 1,624 18................. 57,335 1,194 1,153 35 44,050 25,965 581 2,526 578 2,113 1,646 2 5 57,203 884 853 12 44,068 26,087 625 2,645 583 2,030 1,561 1971 July 5................ 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................. 61,474 1,264 1,223 10 46,618 24,270 546 4,534 663 1,809 2,516 2 6 61 ,C— 1,039 1,028 46,280 24,126 584 4,582 657 1,752 2,521 Aug. 2*.............. 62,620 1,196 1,177 47,315 24,232 733 4,935 652 1.791 2,590 9 v............. 62,070 1,142 1,059 68 46,862 24,105 651 4,609 652 1.792 2,592 16*........... 62,084 975 970 47,036 24,095 750 4,511 648 1,783 2,694 23*........... 62,635 1,356 1,220 132 47,054 24,170 836 4,417 650 1,684 2,748 30*.............. 62,067 985 954 46,937 24,168 727 4,448 652 1,781 2,742 Outside New York City 1971 Aug. 4............... 208,356 7,462 7,045 294 110 138,414 55,920 2,195 102 1,233 127 1,824 4,819 5,491 11............... 208,173 7,432 6,991 355 69 138,450 55,739 2,191 105 1.306 129 1,819 4,863 5,497 18............... 209,045 7,631 6,930 469 166 139,565 56,283 2,174 143 1,381 98 1,827 4,651 5,580 25............... 209,196 7,716 6,846 667 139 139,805 56,223 2,168 155 1.306 97 1,845 4,571 5,544 1972 July 5.............. 235,800 11,085 9,915 638 359 173 158,420 60,990 2.519 111 2,568 115 2,034 5,025 7,070 12.............. 235,294 11,031 8,370 2,228 269 164 158,116 61.043 2.521 140 2,506 116 2,030 4,760 7,083 19.............. 234,911 10,687 9,693 536 277 181 158,526 61.044 2.522 107 2,623 112 2,021 4,828 7,060 26.............. 235,003 10,532 9,539 597 250 146 158,624 61,062 2.519 133 2,534 125 2,033 4,681 7,092 Aug. 2 p........... 235,843 10,608 9,515 682 252 159 159,386 61,089 2.520 159 2,723 135 2,078 4,571 7,217 9j3, ........... 235,258 10,381 9,267 718 232 164 159,121 60,876 2.513 99 2,668 124 2.085 4,547 7,247 16*............ 236,419 11,094 10,103 583 259 149 159,757 61,144 2.513 112 2,693 124 2,075 4,492 7,278 23*.......... 236,316 10,815 9,058 1,364 216 177 159.863 60,987 2,498 134 2,687 144 2.085 4,460 7,349 30*............ 235,563 9,692 8,838 499 216 139 160,041 60,858 2,495 121 2,685 144 2,123 4,466 7,446 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 36,216 561 1,860 22,849 802 14,443 25,182 3,431 3,556 14,923 3,272 ...........................Aug. 4 36,371 579 1,974 22,884 809 14,243 25,030 3,300 3,593 14,876 3,261 ......................................11 36,518 777 2,682 22,935 820 14,300 25,006 2,901 3,350 15,831 2,924 ......................................18 36,653 794 2,819 23,015 823 14,290 24,952 2,858 3,367 15,853 2,874 ......................................25 1972 42,025 1,403 2,838 25,733 1,023 16,978 26,225 3,901 4,823 14,728 2,773 ...........................July 5 42,213 1,432 2,869 25,747 1,018 16,668 25,696 3,523 4,780 14,694 2,699 ......................................12 42,395 1,429 2,966 25,792 1,020 16,811 25,581 3,422 4,841 14,714 2,604 ......................................19 42,561 1,339 2,932 25,900 1,011 16,688 25,804 3,498 5,014 14,667 2,625 ......................................26 42,742 1,376 2,997 26,008 1,029 17,053 25,770 3,268 5,328 14,489 2,685 ...........................Aug. 2p 42,922 1,377 2,977 26,089 1,050 16,937 25,466 3,072 5,308 14,415 2,671 ....................................9 v 43,219 1,368 2,955 26,167 1,043 17,058 25,246 2,997 4,281 14,860 3,108 .......................\6V 43,366 1,475 2,927 26,276 1,034 16,910 25,417 3,131 4,582 14,448 3,256 ......................................23^ 43,432 1,450 2,869 26,379 1,078 16,834 25,639 3,549 4,641 14,292 3,157 ......................................302* New York City 1971 3,813 195 911 1,874 554 2,681 4,378 741 522 2,774 341 ...........................Aug. 4 3,824 211 977 1,877 558 2,612 4,310 663 502 2,800 345 ......................................11 3,853 278 1,383 1,894 561 2,635 4,424 525 446 3,203 250 ......................................18 3,857 303 1,328 1,891 558 2,561 4,597 645 404 3,294 254 ......................................25 1972 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 4,648 400 1,284 1,972 626 3,381 4,851 881 1,349 2,464 157 ...........................Aug. 2p 4,665 481 1,272 1,985 634 3,353 4,760 733 1,369 2,477 181 .................................... 9 p 4,718 462 1,275 1,996 627 3,406 4,546 703 878 2,551 414 ......................................16p 4,740 472 1,267 2,008 632 3,350 4,697 839 912 2,470 476 ......................................23 p 4,693 452 1,243 2,006 661 3,284 4,877 1,209 917 2,328 423 ......................................2>Qp Outside New York City 1971 32,403 366 949 20,975 248 11,762 20,804 2,690 3,034 12,149 2,931 ...........................Aug. 4 32,547 368 997 21,007 251 11,631 20,720 2,637 3,091 12,076 2,916 ......................................11 32,665 499 1,299 21,041 259 11,665 20,582 2,376 2,904 12,628 2,674 ......................................18 32,796 491 1,491 21,124 265 11,729 20,355 2,213 2,963 12,559 2,620 ......................................25 1972 37,501 984 1,674 23,777 396 13,656 21,488 2,751 3,859 12,371 2,507 ...........................July 5 37,665 1,014 1,686 23,782 387 13,383 21,178 2,510 3,814 12,328 2,526 ......................................12 37,825 984 1,685 23,822 397 13,496 21,087 2,408 3,833 12,326 2,520 .......................................19 37,970 993 1,673 23,933 395 13,481 21,144 2,399 3,929 12,295 2,521 ......................................26 38,094 976 1,713 24,036 403 13,672 20,919 2,387 3,979 12,025 2,528 ...........................Aug. 2 p 38,257 896 1,705 24,104 416 13,584 20,706 2,339 3,939 11,938 2,490 ..................................gp 38,501 906 1,680 24,171 416 13,652 20,700 2,294 3,403 12,309 2,694 .......................16 p 38,626 1,003 1,660 24,268 402 13,560 20,720 2,292 3,670 11,978 2,780 ......................................23 p 38,739 998 1,626 24,373 417 13,550 20,762 2,340 3,724 11,964 2,734 ......................................30p For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
EPORTING BANKS o SEPTEMBER 1972 S AND LIABILITIES OF URGE COMMERCIAL BANKS—Continue (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re of State corp. stock, in serves Cur and and process with rency political securities of F.R. and liab subdivisions collec Banks coin itie tion Tax Certif. war All of All rants3 other partici others pation4 7,801 34,967 1,364 5,561 31,875 20,057 3,220 343, 7,675 35,089 1,342 5,396 31,516 17,972 3,486 339, 7,466 34,851 1,282 5.335 30,303 18,588 3,494 340, 7,424 34,954 1,260 5.336 29,811 19,311 3,615 341, 8,449 37,301 1,556 6,281 35,551 21.326 3,456 386, 8,856 37,585 1,553 6,263 30,060 17,799 3,894 375, 8,534 37,401 1,527 6,247 29,878 21,005 3,775 377, 8,881 37,104 1,532 6,295 27,826 20,503 3,900 374, 8,946 37,276 1.568 6,398 30,040 21,966 3,651 380, 9,081 37,285 1.569 6,421 27,030 21.326 3,686 275, 9,278 37,172 1,541 6,404 29,385 21,532 3,703 379, 9,186 37,340 1,547 6,373 26,076 19,877 3,851 374, 9,053 37,275 1,549 6,459 27,012 21,295 3,924 376, 1,433 5,217 226 1,141 14,018 5,534 431 83, 1,373 5,284 211 1,063 14,937 4,506 436 83, 1,346 5,122 217 982 12,981 4,458 430 82, 1,351 5,115 207 981 14,135 5,241 426 83, 2,318 5,351 275 836 13,289 5,651 438 91, 2,650 5,540 275 823 9,414 4.239 448 84, 2,574 5,443 272 809 9,996 4,662 434 85, 2,844 5,135 277 853 9,821 5,130 442 85, 2,869 5,212 286 891 10,276 4,442 435 86. 2,868 5,271 285 882 9,485 5.239 435 85; 3,072 5,270 278 907 8,915 5,191 434 85! 3,031 5,326 264 907 8,558 4,684 438 84; 2,910 5,159 271 928 9,554 5,287 459 85; 6,368 29,750 1,138 4,420 17,857 14,523 2,789 259, 6,302 29,805 1,131 4,333 16,579 13,466 3,050 256; 6,120 29,729 1,065 4,353 17,322 14,130 3,064 258; 6,073 29,839 1,053 4,355 15,676 14,070 3,189 257; 6,131 31,950 1,281 5,445 22,262 15,675 3,018 295 6,206 32,045 1.278 5,440 20,646 13,560 3,446 290; 5,960 31,958 1.255 5,438 19,882 16,343 3,341 292; 6,037 31,969 1.255 5,442 18,005 15,373 3,458 289; 6,077 32,064 1,282 5,507 19,764 17,524 3,216 294 6,213 32.014 1,284 5,539 17,545 16,087 3,251 289; 6,206 31,902 1,263 5,497 20,470 16,341 3,269 293; 6,155 32.014 1,283 5,466 17,518 15,193 3,413 289; 6,143 32,116 1.278 5,531 17,458 16,008 3,465 290; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi and Do polit fied polit mes For Total IPC ical U.S. and Total6 ical tic eign sub Govt. Com Mutual Com offi sub inter govts.2 divi mer sav Govts., mer cers* Sav Other divi bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1971 139,404 97,190 6,620 2,890 21,489 703 760 2,358 7,394 132,924 53,133 57,472 15.067 1,566 5,144 ...............Aug. 4 138,109 96,119 6,611 2,333 21,126 617 1,283 2,298 7,722 133,179 53,113 57,708 15,111 1,536 5,208 ..........................11 139,164 96,218 6,212 6,001 20,164 620 949 2,461 6,539 133,494 53,070 58,082 15.068 1,597 5,173 ..........................18 139,672 95,700 6,062 6,272 20,562 608 803 2,416 7,249 133,827 52,986 58,184 15,258 1,691 5,195 ..........................25 1972 157,679 108,396 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 5 146,907 105,800 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 66,483 18,202 2,442 5,273 ..........................19 145,194102,644 5,895 5,326 20,395 694 893 2,988 6,359 151,358 57,939 66,907 18,176 2,482 5,363 ..........................26 147,379 104,096 6,749 4,467 20,957 747 953 2,959 6,451 152,123 57,892 67,564 18,332 2,474 5,362 ...............Aug. 2 p 140,911 101,382 5,999 3,396 20,140 700 800 2,926 5,568 152,996 57,925 68,466 18,320 2,433 5,358 ..........................9 p 143,100 104,684 6,266 1,976 20,195 688 774 2,984 5,533 153,485 57,901 68,942 18,286 2,480 5,381 ..........................16p 138,859 102,010 5,811 2,043 19,350 632 715 2,719 5,579 154,475 57,868 69,812 18,436 2,501 5,355 ..........................23p 140,296102,300 6,055 1,715 20,359 681 837 2,996 5,353 155,538 57,836 70,794 18,487 2,550 5,329 ..........................30* New York City 1971 39,282 21,711 509 545 9,610 378 586 1,648 4,295 23,013 5,191 12,439 1,515 751 2,928 ...............Aug. 4 39,928 20,764 795 428 9,973 319 1,116 1,598 4,935 22,980 5,176 12,339 1,548 746 3,014 ..........................11 38,495 20,896 769 1,545 8,747 308 777 1,695 3,758 23,379 5,169 12,659 1,542 820 3,026 ..........................18 40,456 21,626 468 1,506 9,888 311 635 1,611 4,411 23,346 5,151 12,568 1,566 886 3,013 ..........................25 1972 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 38,806 22,651 352 832 8,641 398 810 2,116 3,006 26,023 5.695 13,987 2,183 1,243 2,831 ...............Aug. 2 p 36,860 21,716 357 633 8,617 369 653 2,032 2,483 26,182 5.696 14,343 2,060 1,186 2,813 ..........................9 p 36,504 22,336 460 253 8,040 348 633 2,112 2,322 26,395 5,699 14,527 2,043 1,234 2,809 ..........................16* 35,912 22,043 381 315 7,965 319 558 1,873 2,458 26,819 5,702 14,901 2,097 1,246 2,787 ..........................23* 37,256 22,169 363 274 8,983 349 674 2,153 2,291 27,268 5,673 15,384 2,070 1,280 2,775 ..........................30* Outside New York City 1971 100,122 75,479 6,111 2,345 11,879 325 174 710 3,099 109,911 47,942 45,033 13,552 815 2,216 ...............Aug. 4 98,181 75,355 5,816 1,905 11,153 298 167 700 2,787 110,199 47,937 45,369 13,563 790 2,194 ..........................11 100,669 75,322 5,443 4,456 11,417 312 172 766 2,781 110,115 47,901 45,423 13,526 777 2,147 ..........................18 99,216 74,074 5,594 4,766 10,674 297 168 805 2,838 110,481 47,835 45,616 13,692 805 2,182 ..........................25 1972 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 52,559 16,090 1,217 2,495 ..........................19 106,341 80,269 5,601 4,208 11,532 332 145 881 3,373 125,543 52,225 53,149 16,032 1,233 2.498 ..........................26 108,573 81,445 6,397 3,635 12,316 349 143 843 3,445 126,100 52,197 53,577 16,149 1,231 2,531 ...............Aug. 2 p 104,051 79,666 5,642 2,763 11,523 331 147 894 3,085 126,814 52,229 54,123 16,260 1,247 2,545 ....................... 9j> 106,596 82,348 5,806 1,723 12,155 340 141 872 3,211 127,090 52,202 54,415 16,243 1,246 2,572 !.......................16* 102,947 79,967 5,430 1,728 11,385 313 157 846 3,121 127,656 52,166 54,911 16,339 1,255 2,568 ..........................23* 103,040 80,131 5,692 1,441 11,376 332 163 843 3,062 128,270 52,163 55,410 16,417 1,270 2,554 ..........................30 p For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 30 WEEKLY REPORTING BANKS □ SEPTEMBER 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 n ties of pur F.R. ties, Secur ac loans invest mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc. 7 ad (gross) ad Issued Issued their justed 9 ad justed 1 o Total to to foreign justed 9 IPC’s others bran ches Large banks— Total 1971 Aug. 4........................ 23,195 552 1,146 15,750 4,013 76 26,161 181,719 256,594 83,150 30,428 18,569 11,859 1,912 11........................ 21,657 454 1,140 14,997 4,012 113 26,156 181,567 256,099 83,134 30,750 18,783 11,967 1,104 18........................ 20,827 1,017 1,058 15,043 4,011 77 26,129 183,580 257,520 82,696 31,302 19,239 12,063 1,374 2 5 19,499 1,692 1,203 15,269 4,008 77 26,147 183,980 257,906 83,027 31,512 19,273 12,239 1,409 1972 July 5........................ 30,696 420 1,518 14,147 4.159 28,359 205,311 285,123 93,252 35,685 22,499 13,186 824 12........................ 29,362 58 1,647 14,796 4,148 28,350 206,386 286,339 92,881 36,358 22,976 13,382 1,375 19........................ 29,495 47 1,638 14,401 4,142 28,281 204,750 284,040 90,922 37,047 23,518 13,529 974 2 6 28,653 593 1,543 14,623 4.159 28,354 204,569 284,185 91,647 37,706 23,938 13,768 1,342 Aug. 2*...................... 30,164 1,200 1,488 15,459 4,171 28,514 206,437 286,395 91,915 38,231 24,243 13,988 1,829 9 p....................... 31,162 777 1,528 14,952 4.166 28,547 205,803 285,625 90,345 38,937 25,031 13,906 i;250 1 6*...................... 31,997 439 1,486 15,810 4,168 28,489 206,421 286,062 91,544 39,389 25,418 13,971 1,778 23 p...................... 30,285 809 1,555 15,661 4.167 28,537 207,335 287,198 91,390 40,288 26,213 14,075 1,839 30p...................... 29,539 1,178 1,475 15,258 4,181 28,584 206,413 286,388 91,210 41,247 27,038 14,209 1,262 New York City 1971 Aug. 4........................ 6,532 20 202 6,684 1.191 6,774 43,254 55,649 15,109 10,873 7,185 3,688 1,209 11........................ 5,913 207 6,165 1.191 6,786 43,044 55,285 14,590 10,880 7,112 3,768 759 18........................ 5,520 100 209 6,373 1,193 6,778 43,813 55,904 15,222 11,437 7,562 3,875 977 2 5 4,584 1,025 311 6,118 1,196 6,765 43,796 56,047 14,927 11,456 7,532 3,924 720 1972 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 2 6 6,300 160 373 5,160 1.224 7,135 45,945 59,714 19,051 13,129 8,707 4,422 1,051 Aug. 2 p...................... 6,324 511 371 5,805 1.224 7.202 46,934 61,043 19,057 13.304 8,827 4,477 1,446 9 p...................... 8,032 275 335 5,320 1,221 7.202 46,464 60,530 18,125 13,542 9,243 4,299 972 16*...................... 7,755 37 339 5,686 1,222 7,188 46,579 60,652 19,296 13,830 9,498 4,332 1,448 23*...................... 6,962 570 354 5,837 1,227 7,183 46,718 60,943 19,074 14.304 9,947 4,357 1,543 30*...................... 6,794 482 316 5,277 1,235 7,258 46,516 60,661 18,445 14,678 10,354 4,324 931 Outside New York City 1971 Aug. 4........................ 16,663 532 944 9,066 2,822 76 19,387 138,465 200,945 68,041 19,555 11,384 8,171 703 11........................ 15,744 454 933 8,832 2,821 113 19,370 138,523 200,814 68,544 19,870 11,671 8,199 345 18........................ 15,307 917 849 8,670 2,818 77 19,351 139,767 201,616 67,474 19,865 11,677 8,188 397 2 5 14,915 667 892 9,151 2,812 77 19,382 140,184 201,859 68,100 20,056 11,741 8,315 689 1972 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 72,111 23,986 14,706 9,280 321 2 6 22,353 433 1,170 9,463 2,935 21,219 158,624 224,471 72,596 24,577 15,231 9,346 291 Aug. 2 p...................... 23,840 689 1,117 9,654 2,947 21,312 159,503 225,352 72,858 24,927 15,416 9,511 383 9p...................... 23,130 502 1,193 9,632 2.945 21,345 159,339 225,095 72,220 25,395 15,788 9,607 278 16p...................... 24,242 402 1,147 10,124 2.946 21,301 159,842 225,410 72,248 25,559 15,920 9,639 330 23*...................... 23,323 239 1,201 9,824 2,940 21,354 160,617 226,255 72,316 25,984 16,266 9,718 296 30*...................... 22,745 696 1,159 9,981 2.946 21,326 159,897 225,727 72,765 26,569 16,684 9,885 331 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 1972 1971 Aug. Aug. Aug. Aug. Aug. 1st 2nd 30 23 16 9 2 Aug. July June II I IV half half Durable goods manufacturing: Primary metals.................................... 1,978 1,974 1,973 1,976 2,008 -68 -47 -33 30 54 -162 84 -282 Machinery............................................ 4,211 4,200 4,209 4,138 4,138 4 -8 -55 -74 -91 -600 -165 -831 Transportation equipment................ 2,228 2,245 2,217 2,203 2,236 39 -170 -60 -317 14 -101 -303 -77 Other fabricated metal products... 1,724 1,716 1,742 1,684 1,686 22 -9 21 -22 17 -259 -5 -389 Other durable goods.......................... 2,850 2,832 2,828 2,772 2,800 65 -41 76 185 146 -328 331 -317 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,730 2,761 2,740 2,725 2,721 54 51 58 -41 -227 205 -268 498 Textiles, apparel, and leather........... 2,981 3,000 3,016 2,984 2,960 48 78 88 281 281 -273 562 -304 Petroleum refining.............................. 915 942 904 957 965 -60 -14 -29 -88 -97 56 -185 52 Chemicals and rubber....................... 1,935 1,910 1,916 1,899 1,913 -46 -147 -39 -23 -103 -437 -126 -592 Other nondurable goods................... 1,666 1,654 1,650 1,652 1,671 -4 16 -23 -93 -75 -96 -168 -36 Mining, including crude petroleum and natural gas............................. 3,687 3,692 3,669 3,671 3,648 42 41 -76 -66 -137 -17 -203 187 Trade: Commodity dealers................... 1,251 1,253 1,233 1,248 1,190 42 31 -184 -304 -194 460 -498 532 Other wholesale......................... 4,468 4,459 4,491 4,492 4,474 -30 6 77 111 -52 132 59 524 Retail............................................ 4,666 4,606 4,624 4,571 4,672 -50 197 9 138 259 -340 397 -259 Transportation........................................ 5,430 5,395 5,404 5,413 5,476 -33 -183 77 33 -33 -78 — 324 Communication....................................... 1,577 1,570 1,592 1,594 1,594 -24 166 151 195 -74 -249 121 -225 Other public utilities.............................. 3,060 3,048 2,978 2,934 2,934 266 95 40 247 -274 176 -27 525 Construction............................................ 4,420 4,441 4,438 4,331 4,343 84 38 171 325 156 77 481 183 Services..................................................... 8,462 8,531 8,525 8,496 8,488 -8 -134 325 358 372 276 730 289 All other domestic loans....................... 5,644 5,705 5,817 5,921 6,003 -293 241 -348 -134 176 305 42 610 Bankers’ acceptances.............................. 1,230 1,241 1,278 1,323 1,346 -112 -99 -183 -300 -553 696 -853 1,158 Foreign commercial and industrial loans.................................................. 3,436 3,452 3,444 3,471 3,460 -20 59 19 83 89 254 172 578 Total classified loans.............................. 70,549 70,627 70,688 70,455 70,726 -82 167 82 524 -346 -303 178 1,500 Total commercial and industrial loans. *>85,026 85,157 85,239 84,981 85,321 -162 235 233 1,136 47 335 1,183 1,614 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 Aug. July June May Apr. Mar. Feb. Jan. Dec. II I IV III 1st 30 26 28 31 26 29 23 26 29 half Durable goods manufactur ing : Primary metals..................... 1,313 1,354 1,369 1,381 1,367 1,342 1,330 1,315 1,362 27 -20 -162 -62 7 Machinery............................ 1,968 1,935 1,958 1,986 2,005 2,072 2,001 2,179 2,285 -114 -213 -194 -57 -327 Transportation equipment. 1,266 1,244 1,360 1,370 1,389 1,493 1,553 1,605 1,620 -133 -127 -69 130 -260 Other fabricated metal products............................ 713 711 677 685 695 688 683 699 713 -11 -25 -62 -39 -36 Other durable goods........... 1,147 1,130 1,183 1,144 1,163 1,145 1,118 1,117 1,135 38 10 -79 -19 48 Nondurable goods manufac turing: Food, liquor, and tobacco. 1,084 1,034 931 947 909 912 937 987 1,021 19 -109 36 17 -90 Textiles, apparel, and leather................................ 689 701 666 646 667 651 580 567 576 15 75 -31 10 90 Petroleum refining............... 652 685 694 726 714 757 818 848 892 -63 -135 35 -34 -198 Chemicals and rubber........ 1,188 1,200 1,234 1,245 1,238 1,226 1,315 1,330 1,441 8 -215 -344 -32 -207 Other nondurable goods.. 882 860 875 930 960 980 973 1,010 1,024 -105 -44 6 -2 -149 Mining, including crude pe troleum and natural gas. 2,724 2,723 2,667 2,785 2,870 2,872 2,891 2,927 3,039 -205 -167 105 -56 -372 Trade: Commodity dealers.. 107 110 109 128 125 125 132 119 115 -16 10 6 12 -6 Other wholesale......... 866 905 902 912 889 927 883 915 893 -25 34 46 11 9 Retail............................ 1,375 1,345 1,297 1,332 1,328 1,340 1,352 1,349 1,383 -43 -43 -88 57 -86 Transportation......................... 4,197 4,243 4,314 4,285 4,400 4,383 4,314 4,397 4,440 -69 -57 -131 -26 -126 Communication....................... 516 517 502 427 460 440 417 432 427 62 13 7 -48 75 Other public utilities............... 1,643 1,471 1,423 1,218 1,161 1,160 1,191 1,305 1,316 263 -156 44 178 107 Construction............................ 1,453 1,392 1,404 1,371 1,376 1,417 1,327 1,257 1,244 -13 173 52 5 160 Services...................................... 3,811 3,747 3,706 3,555 3,593 3,657 3,545 3,542 3,488 49 169 141 89 218 All other domestic loans .... 1,491 1,549 1,465 1,787 1,805 1,703 1,602 1,545 1,431 -238 272 41 141 34 Foreign commercial and in dustrial loans................... 2,064 2,028 2,033 1,995 1,981 1,939 1,898 1,995 2,076 94 -137 184 -43 Total loans................................ 31,149 30,884 30,769 30,855 31,095 31,229 30,860 31,440 31,921 -460 -692 -457 275 -1,152 Note.—About 160 weekly reporting banks are included in this series; Commercial and industrial “term” loans are all outstanding loans with these banks classify, by industry, commercial and industrial loans amount an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 32 DEMAND DEPOSIT OWNERSHIP □ SEPTEMBER 1972 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holdei 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: 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 June........................................................................................ 17.9 89.9 56.0 1.3 10.7 175.8 Sept........................................................................................ 17.9 91.5 57.5 1.2 9.7 177.9 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 10.9 187.2 Weekly reporting banks: 1971—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 Sept........................................................................................ 13.8 54.6 24.5 1.2 5.5 99.6 Oct..................................................................................... 13.9 55.5 24.5 1.1 5.4 100.4 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 13.7 56.2 25.4 1.2 5.7 102.1 14.1 57.1 25.8 1.3 5.9 104.2 July*....................................................................................... 14.4 58.4 26.0 1.3 5.9 106.1 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1969 1970 1971 1971 bank 1969 1970 1971 1971 All commercial............................ 1,131 804 746 680 All member—Cont. Insured...................................... 1,129 803 745 677 Other reserve city................ 304 143 125 112 National member................... 688 433 407 387 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
SEPTEMBER 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—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 r362 *•1,308 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 Aug. 2........... 2,381 1,433 948 1,688 334 1,354 9........... 2,481 1,516 965 1,688 320 1,368 16........... 2,432 1,524 908 1,698 316 1,382 23.......... 2,520 1,519 1,001 1,699 317 1,382 30........... 2,380 1,550 830 1,701 321 1,380 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 BANKERS9 ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im Ex Others ports ports All Bank Bank For into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 197 0 31,765 409 12,262 1,940 17,154 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971—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 July. 33,891 604 12,319 1,652 19,316 6,643 2,430 1,873 557 63 263 3,887 2,492 1,606 2,545 Data for commercial and finance company paper on new basis 1 As reported by dealers; includes finance company paper as well as beginning Dec. 1971. The new series reflects inclusion of paper issued other commercial paper sold in the open market. directly by real estate investment trusts and several additional finance 2 As reported by finance companies that place their paper directly with companies. investors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 34 INTEREST RATES □ SEPTEMBER 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate Effective date Rate Effective date Rate Effective date Rate 192 9 51/2-6 1956—Apr. 13... m 1969—Jan. 7.......... 7 1972—Jan. 3........... 5-5i/8-5i4* Aug. 21... 4 Mar. 17.......... m 17........... 434-514* 193 0 3 Vi-6 June 9........... 81/2 24........... 45/8-5* 193 1 2%-5 1957—Aug. 6... 41/2 31........... 41/2-434* 1 1 1 9 9 9 3 3 1 3 4 9 — 4 3 2 7 (Nov.) 3 1 V % 4- - - 4 4 1958— S J A a e p n p r . t . . 2 2 1 2 1 1 .. . . . . . . . 4 4 3% 1970— D N S M e e o a p c v r t . . . . 2 2 2 2 1 5 2 1 3 2 , . . . . . . . . , . . . . . . . . . . . . . , . . . m 7 6 8 7 3 M 4 F M e a b r . . 2 2 2 1 3 8 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4 1 3 3 % / / 4 2 4 8 - 3 * * - 4 4 4 - 1 4 3 * / 4 % 2 * - -5 1959—May 18... 41/2 1971-Jan. 6 6i/i Apr. 3........... 434 *-5 Effective date Sept. 1... 5 1 15 8.......... 6 6 % 1 5 7 . . . . . . . . . . . . . . . . . . . . . . 5 5 * *-5V4 1960—Aug. 23... 4% Feb. 16.......... May 1........... 5*-5i/8-5i4 Mar. 11 514-51/i 30........... 5 1947—Dec. i. m 1965—Dec. 6... 5 19.......... 51/4 June 2 1 6 2 . . . . . .. . . . . .. . . . . . . . . . 5 5 - * 5 -5 1 1 4 / 8 *-5 3/s 1948—Aug. 1 2 1966—Mar. 10... 5V4 1971—Apr. 23........... 514-51/2 29........... 5-514 *-5 3/s June 29... 5y4 May 11........... 51/2 July 3........... 514 *-5 3/s 1950—Sept. 22........... 2% Aug. 16... 6 July 6........... 5 Vi-6 10........... 514 *-53/8- 7........... 6 51/2 1951—Jan. 8........... 21/z 1967—Jan. 26-27 5%-5M Oct. 20.......... 534 17.......... 514 *-51/2 Oct. 17........... 234 Mar. 27... 5% Nov. 1........... 534*-55/l 31........... 514 *-5 3/8- Dec. 19........... 3 Nov. 20... 6 4.......... 5i/2*-55/8 51/2 8.......... 51/2* 1953—Apr. 27........... 3% 1968—Apr. 19... 61/2 22.., . 5%-5%* Aug. 3........... 5 *4-51/2* Sept. 25... 6 -6% 29, , 514-51/2* 7........... 514 *-5i/2 1954—Mar. 17........... 3 Nov. 13... 61/4 Dec. 6.......... 5i4-53/8- 14........... 514 Dec. 2... 6% 51/2* 21........... 514 *-53/8 1955—Aug. 4.......... 3% 18... 6% 27.......... 514-51/2* Oct. 14.......... 3y2 31........... 514* 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) Allsizes 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
SEPTEMBER 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance U.S. Government securities (taxable)4 Prime CO. Prime Period p c a o p m e 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 bills5 6-month bills5 9- to 12-month issues 4- to 6- directly, ances, rate3 3- to 5months1 m 3- o t n o t h 6 s - 2 90 days1 n R ew at e is o su n e M y a ie r l k d et n R ew at e is o su n e M y a ie r l k d et k b e i 1 t l l - y y ( i e m e a l a r d 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—Aug................... 5.73 5.57 5.57 5.57 5.078 4.93 5.363 5.22 5.52 5.67 6.39 Sept................... 5.75 5.44 5.49 5.55 4.668 4.69 4.934 4.97 5.20 5.31 5.96 Oct..................... 5.54 5.30 5.05 5.20 4.489 4.46 4.626 4.60 4.75 4.74 5.68 Nov................... 4.92 4.81 4.78 4.91 4.191 4.22 4.338 4.38 4.49 4.50 5.50 Dec.................... 4.74 4.60 4.45 4.14 4.023 4.01 4.199 4.23 4.40 4.38 5.42 1972—Jan..................... 4.08 3.95 3.92 3.50 3.403 3.38 3.656 3.66 3.78 3.99 5.33 Feb.................... 3.93 3.78 3.52 3.29 3.180 3.18 3.594 3.63 4.05 4.07 5.51 Mar................... 4.17 4.03 3.95 3.83 3.723 3.72 4.086 4.12 4.42 4.54 5.74 Apr.................... 4.58 4.38 4.43 4.17 3.723 3.70 4.218 4.22 4.65 4.84 6.01 May................... 4.51 4.38 4.25 4.27 3.648 3.68 4.064 4.12 4.44 4.58 5.69 June.................. 4.64 4.45 4.47 4.46 3.874 3.91 4.270 4.35 4.70 4.87 5.77 July................... 4.85 4.72 4.73 4.55 4.059 3.97 4.583 4.49 4.91 4.89 5.86 Aug................... 4.82 4.58 4.67 4.80 4.014 4.01 4.527 4.53 4.90 4.91 5.92 Week ending— 1972—May 6........... 4.55 4.38 4.25 4.25 3.604 3.56 3.998 4.03 4.37 4.52 5.72 13........... 4.50 4.38 4.25 4.20 3.462 3.58 3.907 4.03 4.42 4.55 5.73 20........... 4.50 4.38 4.25 4.32 3.699 3.74 4.118 4.23 4.53 4.67 5.71 27........... 4.50 4.38 4.25 4.24 3.825 3.78 4.233 4.19 4.47 4.57 5.62 June 3........... 4.50 4.38 4.25 4.38 3.762 3.82 4.106 4.20 4.51 4.66 5.64 10........... 4.50 4.38 4.35 4.48 3.861 3.86 4.243 4.25 4.62 4.80 5.71 17........... 4.63 4.38 4.38 4.46 3.798 3.87 4.187 4.29 4.62 4.80 5.73 24........... 4.65 4.50 4.53 4.39 3.924 3.97 4.328 4.40 4.69 4.89 5.81 July 1........... 4.83 4.58 4.70 4.49 4.023 3.96 4.484 4.50 4.92 5.02 5.87 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 4.46r 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 Aug. 5........... 4.73 4.58 4.63 4.56 3.794 3.79 4.298 4.30 4.78 4.72 5.85 12........... 4.70 4.50 4.63 4.69 3.928 3.85 4.431 4.37 4.75 4.71 5.85 19........... 4.85 4.58 4.63 4.87 3.956 3.89 4.464 4.46 4.75 4.78 5.87 26........... 4.88 4.63 4.75 4.75 4.058 4.11 4.623 4.68 5.00 5.05 5.94 Sept. 2........... 4.95 4.63 4.75 4.90 4.332 4.46 4.818 4.90 5.28 5.38 6.11 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 □ SEPTEMBER 1972 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Seasoned issues Dividend/ Earnings/ price ratio price ratio Period U ( S l t n o a i n t t e g e s d N i A s e s a u w a e - By r s a e ti l n ec g ted gr B o y up term) Total i Aaa Baa utility Total i Pre Com Com Aaa Baa Indus Rail Public ferred mon mon trial road utility 1962................................... 3.95 3.30 3.03 3.67 4.19 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 4.21 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 4.34 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 4.50 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 5.43 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 5.82 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 6.50 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 7.71 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 8.68 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 7.62 7.94 7.39 8.56 7.57 8.38 8.13 6.69 3.14 5.44 1971 _Aug........................ 5.78 5.84 5.56 6.21 7.71 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 7.68 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 7.50 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 7.38 7.77 7.26 8.38 7.46 8.13 7.96 6.78 3.31 Dec........................ 5.62 5.24 4.99 5.55 7.28 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 7.21 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 7.34 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 7.24 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 7.45 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 7.38 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 7.32 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 7.38 7.66 7.21 8.23 7.39 8.00 7.80 6.99 2.90 Aug........................ 5.54 5.36 5.10 5.66 7.37 7.61 7.19 8.19 7.35 7.99 7.69 6.90 2.80 Week ending— July 1................ 5.61 5.45 5.20 5.80 7.42 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 7.35 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 7.32 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 7.37 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 7.48 7.68 7.22 8.27 7.41 8.00 7.82 7.00 2.89 Aug. 5................ 5.51 5.40 5.10 5.70 7.40 7.66 7.22 8.25 7.39 8.00 7.80 6.97 2.84 12................ 5.48 5.35 5.10 5.65 7.37 7.63 7.20 8.23 7.36 7.99 7.73 6.96 2.80 19............... 5.53 5.31 5.05 5.60 7.32 7.60 7.19 8.19 7.35 7.98 7.67 6.90 2.78 26............... 5.56 5.36 5.10 5.65 7.59 7.17 8.16 7.34 8.00 7.64 6.79 2.77 Sept. 2............... 5.62 5.41 5.15 5.70 7.41 7.59 7.16 8.15 7.32 8.02 7.63 6.87 2.81 Number of issues2.......... 9 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep Thurs. figures. (3) Corporate: New-issue Aaa utility rates are weekly aver arately. Because of a limited number of suitable issues, the number ages compiled by the Board of Governors of the Federal Reserve System. of corporate bonds in some groups has varied somewhat. As of Dec. Rates for seasoned issues are averages of daily figures from Moody’s In 23, 1967, there is no longer an Aaa-rated railroad bond series. vestors Service. 2 Number of issues varies over time; figures shown reflect most recent Stocks: Standard and Poor’s corporate series. Dividend/price ratios count. are based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample of non- Note.—Annual yields are averages of monthly or quarterly data. callable issues—12 industrial and two public utility; common stock ratios Bonds: Monthly and weekly yields are computed as follows: (1) U.S. on the 500 stocks in the price index. Quarterly earnings are seasonally Govt.: Averages of daily figures for bonds maturing or callable in 10 years adjusted at annual rates. or more. (2) State and local govt.: General obligations only, based on Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30,1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5 Vi hours per day, or 27 l/i 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
SEPTEMBER 1972 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex change ( G t l U e o o r . n m v S g t . ) . S l a o t n c a d a te l p A C o A r o a r A t e Total In tr d ia u l s R ro a a i d l P u u ti b li l t i y c Total In tr d i u al s T p t o r i a o r n t n a s Utility na F n i c e in to d t e al x 1 NYSE AMEX 196 2 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1,225 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 197 1 68.80 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4.234 1971—Au g 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 Aug........ 69.55 65.8 84.2 111.01 124.35 43.28 54.66 61.07 67.25 48.97 36.87 78.27 26.85 15,522 3,807 Week ending— Aug. 5, 69.82 65.9 83.8 109.13 122.32 42.41 53.28 60.04 66.19 48.82 35.99 76.22 26.83 16,055 3,872 12, 70.09 65.6 84.5 109.23 124.50 41.94 53.89 61.05 67.40 49.76 36.21 77.58 26.92 15,070 3,878 19, 69.60 65.6 84.9 111.87 125.43 41.46 54.48 61.52 67.90 48.96 36.72 78.47 26.97 16,201 3,998 26, 69.32 66.7 84.2 111.62 124.89 42.08 55.87 61.44 67.47 48.74 37.78 79.52 26.83 16,729 3,598 Sept. 2, 68.79 65.9 83.5 110.76 123.89 43.64 55.68 60.94 66.87 48.28 37.57 79.17 26.63 11,889 3,283 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 t g ) r e & 1 s M (y a e tu ar r s i ) ty L c p r ( a o e p r t i n a e c i t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t c n e t r t ) c F c h e ( e a p e n r e s t g ) r e & 1 s M (y a e tu ar r s i ) ty L c p r ( a o e p r t i n a e c i t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s . r e e s o ) f (t d a h L m o o l o u l o a s a u . r n s n 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............. 7.40 .84 27.2 76.2 38.2 28.5 7.33 .77 25.2 75.4 33.3 24.6 Juner........... 7.41 .85 27.2 76.5 37.2 27.8 7.36 .78 25.5 76.1 33.8 25.2 July.............. 7.45 .83 27.3 77.2 37.1 28.2 7.37 .78 25.5 76.0 33.6 25.0 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 38 STOCK MARKET CREDIT o SEPTEMBER 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—July... 5,860 5,050 810 4,790 737 215 56 45 1,091 1,183 410 1.841 Aug... 5,917 5,121 796 4,850 723 227 58 44 1,208 1,206 405 1,838 Sept... 5,990 5,208 782 4,930 713 230 54 48 1,182 1,237 364 1,734 Oct.... 6,016 5,238 778 4,950 711 239 53 49 1,194 1,204 393 1,765 Nov... 5,995 5,198 797 4,910 731 242 51 46 1,193 1,209 412 1,758 Dec... 6,835 5,700 835 5,400 764 258 57 42 1,197 1,298 387 1,837 1972—Jan. . 6,850 5,989 861 5,700 789 252 56 37 1,182 1,313 448 2,040 Feb... 7,427 6.477 950 6,180 877 256 56 41 1,170 1,327 434 2,108 Mar.. 7,847 6,896 951 6,620 883 240 53 36 1,158 1,294 442 2,070 Apr.. 8,250 7,283 967 7,010 898 240 57 33 1,150 1,278 433 2,030 May. 8,472 7.478 994 7,200 924 241 58 37 1,141 1,296 403 1,930 June., 7,792 7,510 244 38 386 1,845 July. • 7,945 7,660 248 37 403 1.842 1 Margin credit includes all credit extended to purchase or carry stocks 3 Nonmargin stocks are those not listed on a national securities exchange or related equity instruments and secured at least in part by stock (see and not included on the Board of Governors of the Federal Reserve Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data System’s list of OTC margin stocks. At banks, loans to purchase or carry for member firms of the NYSE. June data for banks are universe totals; nonmargin stocks are unregulated; at brokers, such stocks have no loan all other data for banks represent estimates for all commercial banks value. based on reports by a reporting sample, which accounted for 60 per cent 4 Includes loans to purchase or carry margin stock if these are unsecured of security credit outstanding at banks on June 30, 1971. or secured entirely by unrestricted collateral (see Dec. 1970 Bulletin). 2 In addition to assigning a current loan value to margin stock generally, 5 Free credit balances are in accounts with no unfulfilled commitments Regulations T and U permit special loan values for convertible bonds and to the brokers and are subject to withdrawal by customers on demand. stock acquired through exercise of subscription rights. EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts E pe n r d i o o d f l ( d d i m o o e o n b i f l l s t 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period s c t N r a e t e d u t i s t 60 o r p e m in r o c d r e e e n b t i t 6 s L 0 t e a p s tu s e s r t h c a e n n t o ( f b m T a d i l o o l a l t l i n a l o a c l n e r s s ) lars) 1 45.2 46.7 8.1 4,190 1971—July.. 4,790 8.3 12.2 29.1 25.2 11.0 14.1 44.6 48.0 7.4 4,230 Aug.. 4,850 9.3 14.4 35.4 19.6 8.9 12.6 44.2 47.0 8.8 4,160 Sept.. 4,930 8.7 13.1 34.3 20.7 9.9 13.3 45.5 45.2 9.3 4,060 Oct... 4,950 7.5 10.9 28.7 24.4 12.1 16.3 44.6 45.1 10.2 4,000 Nov.. 4,910 7.3 10.7 25.9 26.2 13.1 16.8 35.0 55.7 9.4 7,300 Dec.. 5,400 8.6 12.7 27.1 29.9 10.2 11.5 1972—Jan.......................... 36.8 55.9 7.3 5,780 1972—Jan... 5,700 8.7 13.5 27.1 32.6 8.5 9.6 Feb......................... 35.1 57.0 7.9 5,910 Feb.. 6,180 8.4 12.4 25.9 35.1 8.5 9.7 35.8 56.0 8.1 5,990 Mar.. 6,620 7.6 11.2 22.3 38.5 10.6 9.7 35.5 56.5 8.0 5,920 Apr.. 7,010 7.1 10.2 19.5 40.0 12.8 10.5 May....................... 34.7 57.1 8.0 5,860 May. 7,200 6.9 9.9 19.3 38.6 15.0 10.4 June....................... 34.3 56.3 9.4 5,770 June. 7,510 6.0 9.1 15.9 33.9 22.0 13.2 34.4 55.2 11.4 5,930 July.. 7,660 5.5 8.3 14.6 30.8 24.9 15.7 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
SEPTEMBER 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 . . g S l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 Cash O as t s h e e ts r g l r i e T e a a t s n o b i n e e e t i r d s l a r v i a l e l D i e t p s o 2 s l O ia ti t b e h i s e li r G r c e o e s a u n e c n e 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—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 May... 63,753 3,499 3,450 598 20,615 1,238 1,881 95,035 85,976 2,493 6,565 1,654 778 737 1,591 4,760 June?.. 64,333 3,439 3,397 642 20,857 1,332 1,948 95,947 87,027 2,254 6,667 1,612 925 540 1,603 4,679 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 INSURAf 2E COMPANIES (In millionsof 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 Foreign1 Total Bonds Stocks M gag o e rt s e R st e a a te l P lo o a li n c s y a O s t s h e e ts r 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 IO!,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-—Juner.............................. 214,532 10,717 4,261 3,339 3,117 95,262 76,854 18,408 74,509 6,552 16,531 10,961 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 June................................ 230,182 11,105 4,394 3,355 3,356 107,074 83,382 23,692 75,547 7,149 17,528 11,779 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included in total, in companies in the United States. “Other assets.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 40 SAVINGS INSTITUTIONS □ SEPTEMBER 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o ge rt s I s i n m e t v i c e e e u s n s r 1 t t Cash Other* lia T b o il t i a ti l e s S c a a v p i i n ta g l s R a d p n e i r v s d o e i f d r u i v e t n s e d s m ro B o w n o e e r y d 3 p L ro o i c n a 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 196 1 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1.136 1,872 196 2 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,193 196 3 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1.499 2,572 196 4 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,549 196 5 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2,707 196 6 114,427 7,762 3.366 8,378 133,933 113,969 9,096 7,462 1,270 2.136 1,482 196 7 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3.004 196 8 130,802 i 11,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3,584 1969 5......... 140.232 10,873 2,438 8,606 162,149 135,538 11,228 9,728 2,455 3,200 807 2,812 1970 5.......... 150,331 13,020 3,506 9,326 176,183 146,404 11,991 10,911 3,078 3,799 1,602 4,393 1971 _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 1971—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. 188,884 21,644 2,414 11,865 224,807 192,564 13,583 7,273 5,887 5.500 4,198 11,663 July*, 191,703 22,145 2.366 11,953 228,167 194,853 13,581 7,220 5,992 6,521 4,011 11,875 1 U.S. Govt, securities only through 1967. Beginning 1968 the total ments are comparable with those shown for mutual savings banks (on fleets liquid assets and other investment securities. Included are U.S. preceding page) except that figures for loans in process are not included Govt, obligations, Federal agency securities, State and local govt, securi above but are included in the figures for mutual savings banks. ties, time deposits at banks, and miscellaneous securities, except FHLBB 5 Balance sheet data for all operating savings and loan associations stock. Compensating changes have been made in “Other assets.” were revised by the Federal Home Loan Bank Board for 1969 and 1970. 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings Note.—Federal Home Loan Bank Board data; figures are estimates for and fixtures. See also note 1. all savings and loan assns. in the United States. Data are based on 3 Consists of advances from FHLBB and other borrowing. monthly reports of insured assns. and annual reports of noninsured assns. 4 Insured savings and loan assns. only. Data on outstanding commit Data for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a b A n t e e o d c m rs e s I m nv e e n s ts t p C a o d a n s e s d i h ts B n a o o n n te d d s s M po b d e s e e m i r ts C s a to p c it k al M l g o ( a A a o g n r ) e s t D n t a e u ( o L n b r t e e d e ) s s n c L a o ( t o o i t A v o a p ) e n e s s r D t e u (L b re e ) s n c L o a d ( o A u n i a s n d ) n t s s D t e u (L b re e ) s n M l g o ( a A a o g n r ) e t s B ( o L n ) ds 1967. 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968.............. 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1971--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 July.. 6,138 3,579 118 6,526 1,497 1,722 18,740 18,194 2,137 1,731 6,330 6,174 8,517 7,659 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
EMBER 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE )ING ISSUES OF FEDERALLY SPONSORED AGENCIES, JULY 31, 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: 6V4 394 Debentures: 2/1/72-8/1/72........... 458 1% 250 5/11/70 - 9/11/72........... 8.40 400 4/3/72 - 10/2/72......... 269 2* 310 6/10/70 - 9/11/72........... 7.40 200 5/1/72- 11/1/72........ 317 8.35 350 11/10/69 - 12/11/72___ 8.00 200 6/1/72- 12/4/72......... 299 5.70 400 10/13/70 - 12/11/72.... 7.20 400 7/3/72- 1/3/73........... 288 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 11/1/71 - 8/1/72......... 594 7.65 181 6/10/71 -9/10/73............. 6.13 350 12/1/71 - 9/5/72.... 593 8.00 227 12/10/70 - 12/10/73___ 5.75 500 1/3/72- 10/2/72......... 454 6.10 250 8/10/71 - 12/10/73........... 7.15 500 2/1/72- 11/1/72......... 634 8.05 265 12/1/71 - 3/11/74........... 5.45 400 3/1/72- 12/4/72......... 558 7.95 300 4/10/70 - 3/11/74........... 7.75 350 4/3/72- 1/2/73........... 514 6.50 350 8/5/70 - 6/10/74............ 7.90 400 5/1/72-2/1/73........... 482 7H 300 11/10/71 -6/10/74........... 5.70 350 3/2/70 - 3/1/73......... 203 6.95 200 9/10/69 9/10/74........... 7.85 250 6/1/72- 3/1/73........... 489 7.75 350 2/10/71 - 9/10/74............. 5.65 300 7/3/72 - 4/2/73......... 475 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 9/14/56 - 9/15/72... 109 7.75 150 2/10/72 - 6/10/76............. 5.85 450 9/22/69 - 9/15/72... 337 5.30 200 11/10/71 -9/10/76........... 6.13 300 10/23/72 - 10/23/72. 200 6.15 350 6/12/72-9/10/76............ 5.85 500 7/20/71 - 10/23/72... 446 8.60 140 7/12/71 - 12/10/76........... 7.45 300 7/20/70 - 1/22/73. . . 407 7.75 150 2/13/62 2/10/77........... 4% 198 2/20/63 - 2/20/73-78 148 7.15 150 12/10/70 - 6/10/77......... 6.38 250 4/20/72 - 4/23/73.... 433 5/10/71 -6/10/77............. 6.50 150 1/20/70 - 7/20/73... 198 9/10/71-9/12/77............. 6.88 300 8/20/73 - 7/20/73.... 350 10/12/71 - 12/11/78.... 6.75 300 4/20/70 - 10/22/73.. 300 6/12/72-9/10/79............. 6.40 300 7/20/72 - 1/21/74. . . 450 12/10/71 - 12/10/79___ 6.55 350 2/20/72 - 2/20/74... 155 2/10/72 - 3/10/80............. 6.88 250 10/20/70 - 4/22/74.. 354 6/29/72- 1/29/81............. 6.15 156 10/21/71 - 7/27/74.. 326 387 1/21/71 - 6/10/81 ........... 7.25 250 4/20/71 - 10/21/74... 300 9/10/71 -9/10/81............. 7.25 250 2/20/70 - 1/20/75... 220 6.00 250 6/28/72-5/1/82............... 5.84 58 4/20/65 - 4/21/75... 200 8.00 200 2/10/71 - 6/10/82............. 6.65 250 2/15/72 - 7/21/75 425 4.38 249 3/11/71 6/10/83............. 6.75 200 7/20/71.- 10/20/75... 300 11/10/71 -9/12/83.......... 6.75 250 4/20/72 - 1/20/76.... 300 4/12/71 -6/11/84............. 6.25 200 2/21/66 - 2/24/76... 123 12/10/71 - 12/10/84___ 6.90 250 7/20/66 - 7/20/76... 150 3/10/72 - 3/10/92........... 7.00 200 10/27/71 - 10/20/77. 300 6/12/72-6/10/92............ 7.05 200 5/2/66 - 4/20/78.... 150 7.50 400 7/20/72 - 7/20/78. . . 269 8.38 250 2/20/67 - 1/22/79... 285 8.63 200 2/23/71 -4/20/81___ 224 4/20/72 - 4/20/82.... 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 □ SEPTEMBER 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 lays i deficit debt Agency accounts Less: Total sury ing, receipts pendi (-) securi securi Special borrow operat Other net4 tures ties ties notes 3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 196 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—Jul y *•13,221 18,507 49 *•18,568 ‘-5,348 7.169 *•-959 1,861 122 4,227 -1,559 *•-630 -1,069 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 July......... 15,207 18,591 -3,384 5,123 9 1,409 -6 3,730 -1,129 -1,810 -3,284 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period Investments of Equals: Govt.- B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S i p s G s e u c o e i v a s t l , acco O un th ts er S n L p o e e t s c e s i s a : 3 l p T h u b o e b y t l l d a i l c s c p p o r o N i r n v p o s a s w o t .— e r e 6 d Fiscal year: 196 9 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 197 0 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 197 1 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 197 2 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 Calendar year: 197 0 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 197 1 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 39,860 Month: 1971—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—Ja n 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 41,044 July.... 2,298 6,547 144 8,988 432,383 10,903 90,944 24,018 825 327,499 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
SEPTEMBER 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 ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Employment Total W he it l h d N w he i o t l h n d fu R n e d s t N ot e a t l c G e r r i e o p s ts s fu R n e d s co P r t o n a a y l t x l r i e b s u a t S i n e o d l n f - s1 i e n U m s n u p - r l. . c O e n r i t p e h e t t e s r 2 t N ot e a t l E ta x x c e is s e t C o u m s s E a g s n i t f a d t te c M e r i i e p s t c s . 3 taxes empl. Fiscal year: 1969........................................ 187,78470,18227,258 10,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,908 1970........................................ 193,74377,41626,236 13,24090,41235,037 2,20837,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 1971....................................... 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 1972....................................... 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 56542,469 12,744 1,467 17,768 133 1,348 1,57620,826 8,153 1,317 1,537 2,006 1971—Jan.-June................. r100,808 '39,02518,693 13,957 ^43,76117,576 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 1,448 19,643 155 1,518 1,67322,989 8,961 1,838 2,395 1,718 1972—Jan.-June................. 115,41644,83320,094 13,56751,35921,535 1,31224,444 1,877 4,736 1,761 30,940 6,523 1,447 3,017 1,906 Month: 1971—July............................ r13,221 r6,245 490 191 r6,543 1,163 284 2,987 205 272 3,464 1,532 227 319 r257 Aug............................ 15,652 6,706 306 91 6,920 688 236 5,049 660 287 5,996 1,482 244 311 245 19,710 5,513 3,755 76 9,192 4,505 Se1p9t8.....3...,.2..9..9...........1..5..2 60 273 3,784 1,490 363 263 312 Oct............................. 12,462 5,941 396 55 6,282 1,111 375 2,592 116 274 2,983 1,412 334 391 324 Nov........................... 14,945 7,245 264 55 7,455 730 218 3,408 424 288 4,120 1,656 343 566 293 Dec............................ 17,213 6,823 379 106 7,096 5,064 138 2,308 3 52 278 2,642 1,389 329 545 286 1972—Jan............................. 17,596 6,627 4,318 110,944 1,228 158 3,044 124 153 295 3,615 743 259 621 344 Feb............................. 15,239 7,581 682 1,416 6,846 878 212 4,774 147 545 274 5,740 819 224 596 347 Mar........................... 15,237 7,782 1,323 5,200 3,905 4,995 273 3,787 167 71 325 4,350 1,130 264 602 263 Apr............................ 24,534 6,599 8,650 3,284 11,985 5,145 250 3,877 1,153 343 283 5,655 1,091 215 372 342 May.......................... 17,275 8,141 1,413 2,997 6,557 967 234 5,281 223 1,636 303 7,443 1,371 235 461 475 June........................... 25,537 8,102 3,708 66811,142 8,324 185 3,681 64 111 281 4,137 1,370 250 364 135 July............................ 15,207 7,052 548 245 7,355 1,258 187 3,727 260 289 4,277 1,442 237 334 492 Budget outlays4 Period Total f ti e N o d n e n a s a e l a I f n fa t i l r . s s S e p r a e a r c c e h A t c u g u r r l e i so N u u r r e a r a c t l es m t C r a a o e n n r m d c s e p . d h e C o m a v u o n e u s m l d n i o n . - p g . E p m t d o a i n w u a o n d c n e a r w H e a e l n a fa d 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 a o t c n n v r a s s t, - * 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 1973®6................................... 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—July............................ '18,568 '5,203 340 377 '1,783 '292 '573 545 684 '6,190 '799 '1,655 '370 '-244 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 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 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 July............................ 18,591 5,139 313 289 2,397 -821 827 529 764 6,214 884 1,695 612 -252 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 □ SEPTEMBER 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l t s a i s c l 1 Total Total Bills M C a c r e k a r t e t e i t f s a i b le Notes Bonds 2 b C v i o b e o n r l n e d t s T N o o ta n l m 3 ark b e S o t in a a n b g v d s l s e i S ss p u e e c s i a 4 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 52.5 78.1 1971—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 Aug. 435.4 339.9 258.1 96.2 115.7 46.2 2.3 79.5 57.0 93.6 1 Includes non-interest-bearing debt (of which $622 million on Aug. 31, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1972, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s c l ag G t U e a r o n n u .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia s l M s b a a v u n i t n u k g a s s l p I c a n a o n 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 v c a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a n l 1 i O m t n o v t i r h s e s c e s . r 2 funds bonds securities 1939—Dec................. 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................. 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1965—Dec................. 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec................. 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec................. 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec................. 358.0 76.6 52.9 228.5 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 2.9 7.1 13.3 25.4 51.8 29.1 11.4 24.1 1970—Dec................. 389.2 97.1 62.1 229.9 62.7 2.8 7.0 10.5 23.1 52.1 29.8 20.6 21.4 1971—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 18.2 427.3 105.5 69.9 251.9 63.3 2.7 6.5 12.3 21.6 55.2 22.3 49.9 18.1 Apr................. 425.3 105.5 70.3 249.5 61.9 2.7 6.4 11.2 21.5 55.5 21.9 49.8 18.5 May............... 427.9 109.1 71.6 247.2 60.8 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 July................. 432.4 112.8 70.8 248.8 57.6 2.7 6.1 10.0 22.4 56.3 20.7 54.6 18.3 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
SEPTEMBER 1972 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r r s 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 June 30............................................................. 257,202 121,944 94,648 27,296 89,004 26,852 9,343 10,059 July 31............................................................. 257,717 122,528 95,234 27,294 89,004 26,851 9,317 10,015 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—June 30..................................................... 19,868 2,350 1,671 679 7,739 4,906 2,358 2,514 July 31..................................................... 19,785 2,213 1,598 615 7,760 4,950 2,350 2,512 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 June 30..................................................... 71,356 40,085 31,258 8,827 24,109 5,913 627 622 July 31..................................................... 70,822 39,552 30,724 8,828 24,107 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 June 30..................................................... 165,978 79,509 61,719 17,790 57,156 16,033 6,358 6,923 July 31..................................................... 167,110 80,763 62,912 17,851 57,137 15,988 6,340 6,881 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 June 30............................................ 47,028 14,337 6,335 8,002 26,326 5,688 500 178 July 31............................................ 44,778 13,371 5,131 8,240 25,505 5,337 411 154 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 June 30............................................ 2,668 388 175 213 1,192 502 298 287 July 31............................................ 2,649 368 162 206 1,188 502 297 294 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 June 30............................................ 5,340 525 208 317 1,362 1,027 1,356 1,068 July 31............................................ 5,276 528 220 308 1,335 1,021 1,357 1,034 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 June 30............................................ 4,182 3,010 1,945 1,065 1,020 135 10 9 July 31............................................ 4,830 3,491 2,160 1,331 1,194 127 9 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-June 30............................................ 2,849 675 359 316 1,250 608 140 175 July 31............................................ 2,787 652 329 323 1,236 594 132 173 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 June 30............................................ 10,314 5,298 4,441 857 2,223 749 773 1,270 July 31............................................ 10,408 5,379 4,512 867 2,227 793 766 1,244 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 June 30............................................ 93,597 55,276 48,256 7,020 23,783 7,324 3,281 3,936 July 31............................................ 96,382 56,974 50,398 6,576 24,452 7,614 3,368 3,973 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 5,635 commercial banks, 485 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 738 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 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. 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A 46 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 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—July................................. 2,484 2,103 280 74 28 814 131 837 702 471 Aug................................. 2,482 1,848 512 97 25 859 129 855 640 462 Sept................................. 2,115 1,598 271 219 26 759 99 725 532 482 2,646 1,905 438 268 36 988 117 906 634 659 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 July................................. 2,571 2,124 283 131 33 633 382 851 704 438 Week ending— 1972—July 5......................... 2,926 2,601 199 107 19 609 401 932 983 328 12......................... 2,130 1,874 146 89 21 420 310 710 691 419 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 Aug. 2......................... 4,990 3,313 1,121 399 157 1,228 725 1,864 1,174 531 9......................... 2,337 1,687 329 175 145 487 359 852 639 341 16......................... 2,038 1,600 250 119 69 398 233 726 681 349 23......................... 2,245 1,781 251 108 104 513 300 815 616 405 30......................... 2,751 2,005 361 226 159 606 605 886 654 606 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 ie t 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 r r s a s G g e t c e i o e u n v s r c t i y . Period so A ur l c l es Y N C o e it w r y k w E h ls e e r e C t o io rp n o s r 1 a o A th l e l r 1971—July................. 3,011 3,018 -23 26 -11 771 1971—July............. 3,516 1,151 391 721 1,254 Aug.................. 2,897 2,473 344 70 11 698 3,071 894 390 821 967 Sept.................. 3,856 3,089 355 377 36 926 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 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 July................. 3,252 3,626 -146 -216 -11 356 July............. 3,055 753 496 820 986 Week ending— Week ending— 1972—June 7......... 3,963 4,054 -29 -39 -24 526 1972—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 July 5......... 3,129 3,547 -149 -256 -13 470 July 5. .. 3,093 798 602 746 947 12 2,920 3,374 -183 -259 -12 276 12... 2,796 635. 463 684 1,014 19......... 3,109 3,431 -134 -188 279 19... 2,865 594 483 793 996 26......... 3,560 3,870 -125 -180 -4 456 26. .. 3,240 922 442 989 887 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
SEPTEMBER 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 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 notes—Cont. Sept. 7, 1972 4,102 Feb. 15, 1973.... 1,800 Apr. 1, 1974.........UA 34 Sept. 15, 1967-72.• 2i/i 454 Sept. 14, 1972 4.101 Feb. 22, 1973.... 1,801 May 15, 1974.........7% 4,334 Dec. 15, 1967-72.• 2Vi 1,350 Sept. 21, 1972 4.102 Feb. 28, 1973.. .. 1.701 Aug. 15, 1974.........5Ys 10,284 Aug. 15, 1973 .4 3,894 Sept. 28, 1972 4,105 Mar. 1, 1973 ... 1,801 Oct. 1, 1974.........1% 42 Nov. 15, 1973 • 41/g 4,339 Sept. 30, 1972 1,702 Mar. 31, 1973.... 1.702 Nov. 15, 1974.........5V4 5,440 Feb. 15, •41/g 2,467 Oct. 5, 1972 4.098 Apr. 30, 1973___ 1.700 Feb. 15, 1975.........5% 4,016 May 15, .414 2,852 Oct. 12, 1972 4.102 May 31, 1973.... 1.701 Feb. 15, 1975.........5% 1,222 Nov. 15, 1974 •37/s 1,212 Oct. 19, 1972 4.101 June 30, 1973.... 1,201 Apr. 1, 1975.........li/i 8 May 15, 1975-85..414 1,207 Oct. 26, 1972, 4.102 July 31, 1973.... 1,201 May 15, 1975.........5% 1,776 June 15, 1978-83..314 1,511 Oct. 31, 1972 1.700 Aug. 28, 1973.... 1,804 May 15, 1975.........6 6,760 Feb. 15, 1980.....4 2,582 Nov. 2, 1972, 4.102 Aug. 15, 1975.........5% 7,679 Nov. 15, 1980 • 3i/i 1,899 Nov. 9, 1972, 4.099 Oct. 1, 1975........IVi 30 Aug. 15, 1981 .7 807 Nov. 16, 1972, 4.102 Nov. 15, 1975.........7 3,115 Feb. 15, 1982 , •63/g 2,702 Nov. 24, 1972, 4.103 Feb. 15, 1976.........6 Va 3,739 Aug. 15, 1984....•63/8 2,354 Nov. 30, 1972, 5,803 Feb. 15, 1976.........5% 4,945 May 15, 1985.... .314 1,008 Dec. 7, 1972. 1,800 Apr. 1, 1976.........li/i 27 Nov. 15, 1986 .61/8 1,216 Dec. 14, 1972, 1,802 Treasury notes May 15, 1976.........5% 2,802 Aug. 15, 1987-92..414 3,775 Dec. 21, 1972. 1,802 Oct. 1, 1972.........li/i 33 May 15, 1976 ......... 6V£ 2,697 Feb. 15, 1988-93..4 242 Dec. 28, 1972. 1.799 Nov. 15, 1972..........6 1,327 Aug. 15, 1976.........7i/i 4,194 May 15, 1989-94..41/s 1,524 Dec. 31, 1972. 1.701 Feb. 15, 1973..........6'A 2,514 Oct. 1, 1976.........li/i 11 Feb. 15, 1990.,..•3i/i 4,347 Jan. 4, 1973. 1.799 Feb. 15, 1973..........4% 4,268 Nov. 15, 1976.........614 1,283 Feb. 15, 1995,,,. .3 998 Jan. 11, 1973. 1,801 Apr. 1, 1973.........1 Vi 34 Feb. 15, 1977.........8 5,163 Nov. 15, 1998 ,,, •31/i 3,445 Jan. 18, 1973. 1.800 May 15, 1973..........7y4 5,844 Apr. 1, 1977.........li/i 5 Jan. 25, 1973. 1,800 May 15, 1973..........4y4 3,792 Aug. 15, 1977.........734 2,264 Jan. 31, 1973. 1,700 Aug. 15, 1973..........8Vg 1,839 Feb. 15, 1978........614 8,389 Convertiblebonds Feb. 1, 1973. 1,800 Oct. 1, 1973.........m 30 Nov. 15, 1978.........6 8,207 Investment Series B Feb. 8, 1973. 1,801 Feb. 15, 1974..........iy4 2,960 Aug. 15, 1979.........614 4,563 Apr. 1, 1975-80.. 234 2,308 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv Special ered 3 Total G o e b a n l l e i r R n e u v e e HAA1 G l U o o a .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 ^ s V a a e n i t d e s r ’ O p p o t u h s r e e s r gations auth. 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—July. . 1,989 1,306 506 171 5 477 606 905 1,942 301 120 231 219 1,071 Aug.. 1,903 1,141 754 9 459 735 707 1,894 352 158 377 159 846 Sept.. 2,098 1,313 523 “ *258 3 348 706 1,044 2,053 463 65 458 271 796 Oct... 1,728 836 890 3 341 840 548 1,626 291 210 353 96 678 Nov.. 2,264 1,394 869 1 629 874 761 2,134 418 338 500 246 631 Dec... 2,068 1,367 440 253 441 568 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 1,289 718 225 434 954 849 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 July.. 1,771 1,315 454 647 444 680 1,762 325 120 208 152 957 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 □ SEPTEMBER 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 * al Other5 Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 1964...................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965...................... 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966...................... 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967...................... 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968...................... 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1969...................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1970....................... 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4,931 1,390 7,240 1971....................... 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1971—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........ 8,635 2,281 1,090 1,963 26 3,275 2,411 1,622 789 263 601 Mayr........ 9,547 1,090 1,500 1,924 165 3,597 2,450 1,676 774 130 1,017 June.......... 7,588 1,500 300 2,222 190 4,341 2,556 1,336 1,218 612 1,174 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1964. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965. 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 1966. 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967. 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 1968. 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969. 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 1970. 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 1971. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1971—June. 1,031 175 497 290 182 115 616 439 204 14 513 300 July.. 383 200 159 188 157 62 520 212 232 1,390 500 144 Aug.. 262 212 76 175 76 12 687 162 359 385 126 Sept.. 991 154 123 295 120 29 578 492 235 46 525 179 Oct.. , 571 91 150 172 185 5 703 230 432 624 224 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.r 383 197 235 178 129 3 924 295 177 1 562 190 Mayr 607 154 193 281 142 71 381 357 376 16 751 270 June. 468 299 181 341 171 15 1,018 520 368 431 349 179 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
SEPTEMBER 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 1967. 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 1968. 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 1969. 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 1970. 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1971. 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 -I................... 2,076 520 201 416 271 33 1,897 948 1,194 66 1,349 255 II.................. 2,296 885 446 757 461 374 1,347 1,261 919 38 825 624 Ill................ 852 676 -10 678 195 230 1,493 814 832 1,442 1,148 404 IV................. 1,361 453 190 445 -27 163 1,749 1,183 980 54 1,683 734 -I................... 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—July... 371 444 -73 51,424 2,856 48,568 Aug... 432 394 38 53,798 3,016 50,782 1961............... 2,951 1,160 1,791 22,789 980 21,809 Sept... 304 471 -167 53,291 2,511 50,780 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 Oct.... 596 419 177 51,160 2,885 48,275 1963............... 2,460 1,504 952 25,214 1,341 23,873 Nov... 397 334 63 50,958 3,172 47,786 Dec... 453 411 42 55,045 3,038 52,007 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 1972—Jan.... 521 475 46 56,694 3,163 53,531 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Feb... 404 514 -110 58,536 3,478 55,058 Mar... 472 667 -195 58,740 3,251 55,489 1967................ 4,670 2,745 1,927 44,701 2,566 42,135 Apr.. . 405 655 -250 58,870 2,827 56,043 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 May.. 378 585 -207 59,736 2,763 56,973 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Juner. 393 544 -151 57,708 3,015 54,693 July. . 398 424 -26 56,932 3,219 53,713 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 □ SEPTEMBER 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 s r 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 n a l t l s i p o o u i w n t m a l p Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h s t U r p i r b n o u d f t i i t e s s d co c a t n a i ll o s p o u n i w t m a l p ances1 ances 1 19 66 84.2 34.3 49.9 20.8 29.1 39.5 1970—11... 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 1969 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 1970, 74.3 34.1 40.2 24.8 15.4 55.2 II.. . 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 III... 84.1 37.5 46.6 25.5 21.0 61.2 IV... 83.2 35.3 48.0 25.2 22.7 63.0 1972—1.... 88.2 38.8 49.5 26.0 r23.5 64.8 II.... 93.1 40.7 52.4 26.2 2.2 68.4 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . I t n o v ri e e n s Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 1967................................. 198.9 470.4 54.1 12.7 5.1 216.0 153.4 29.0 271.4 5.8 190.6 14.1 60.8 1968................................. 212.0 513.8 58.0 14.2 5.1 237.1 165.8 33.6 301.8 6.4 209.8 16.4 69.1 1969................................ 213.2 555.9 54.9 12.7 4.8 261.0 184.8 37.8 342.7 7.3 238.1 16.6 80.6 1970—1........................... 213.3 561.0 52.9 12.5 4.7 264.5 188.0 38.5 347.7 7.2 238.4 18.0 84.2 II......................... 213.6 566.3 52.5 10.7 4.4 268.7 190.2 39.9 352.7 7.0 244.1 14.6 87.1 Ill....................... 214.0 567.6 53.7 9.3 4.2 270.0 191.8 38.5 353.6 6.8 243.0 15.4 88.3 IV....................... 217.0 572.1 56.9 9.7 4.2 268.1 194.4 38.8 355.2 6.6 244.5 15.9 88.1 1971—1........................... 220.4 576.9 55.8 10.1 4.2 269.8 196.8 40.1 356.5 6.1 240.3 18.6 91.4 II......................... 226.3 582.6 58.6 10.3 3.9 273.2 197.4 39.3 356.3 5.3 241.2 16.8 93.0 Ill....................... 231.3 591.9 59.8 10.6 3.9 276.9 199.5 41.2 360.6 5.2 242.2 18.7 94.7 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 Total Commu Period Total Durable d N ur o a n bl e Mining R ro a a i d l Air Other Electric and G a o s t her nications Other i A (S . . R A . . ) 196 7 65.47 14.06 14.45 1.65 1.86 2.29 1.48 6.75 2.00 6.34 14.59 196 8 67.76 14.12 14.25 1.63 1.45 2.56 1.59 7.66 2.54 6.83 15.14 196 9 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 197 0 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 197 1 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 11... 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 111.. 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. 22.90 4.09 4.09 .61 .47 .76 .38 3.56 .71 8.24 90.69 III 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
SEPTEMBER 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 i r ly o p a e n r d ti es 5 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 i n c i n i o s a a t n l i n s 1 a U c g i . e e S n s . v o I i a t d n h n u d e d a i r l s s h A e o r l l s d l tu F i t n 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 i n 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 t e e - r n - - t C i v o e o n n n a l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1964 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 1969. 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, PHA, Farmers Home Admin., and in earlier years, RFC, HOLC, and FFMC. They also include Note.—Based on data from Federal Deposit Insurance Corp., Federal U.S. sponsored agencies—new FNMA, Federal land banks, GNMA Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul (Pools), and the FHLHC. Other U.S. agencies (amounts small or sep ture and Commerce, Federal National Mortgage Assn., Federal Housing arate data not readily available) included with “individuals and others.” Admin., Public Housing Admin., Veterans Admin., Government National 3 Derived figures; includes debt held by Federal land banks and farm Mortgage Assoc., Federal Home Loan Mortgage Corp., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 For multifamily and total residential properties, see 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) Governmenit- All residential Multifamily i UJnderwritte:n Con E pe n r d io o d f Total F i i n c n i s a a t l i n h O ol t d h e e r r s Total F i i c n n i s a a t l i n h O ol t d h e e r r s End of period Total Total F su H in r A e - d - an g V t u e A a e r - d - i ti v o e n n a l tutions tutions 1954.................................. 18.6 4.3 4.1 .2 14.3 1941................. 24.2 14.9 9.4 5.9 3.6 2.2 1963.................................. 182.2 65.9 35.0 30.9 116.3 1 19 9 4 6 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 4 1 . . 3 2 1 1 7 5 6. . 7 7 3 8 4 . .5 6 2 5 9 . . 7 0 2 3 0 . .7 5 2 8. . 3 2 1964.................................. 197.6 69.2 38.3 30.9 128.3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 1965.................................. 212.9 73.1 42.0 31.1 139.8 1965................ 250.1 213.2 36.9 37.2 29.0 8.2 2 23 2 6 3 . . 1 6 7 7 6 9 . . 1 9 4 4 7 4. . 8 4 3 3 1 2 . . 3 5 1 1 5 4 6 7 . . 1 6 1 1 1 9 9 9 6 6 6 7 6 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 6 8 9 4 0 8 . . . 0 0 6 2 2 2 2 5 3 3 0 6 . . . 7 8 6 4 4 4 0 3 7 . . . 3 8 4 4 4 4 0 7 3 . . . 3 3 9 3 3 3 1 4 7 . . . 5 7 7 9 9 8 . . . 8 2 6 1 1 9 9 6 6 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 5 6 1 6 . .8 2 9 8 0 4 . . 2 4 5 5 4 0 . . 5 6 3 3 3 5 . . 8 7 1 1 7 66 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 32 2 6 1 . . 3 7 2 2 6 6 8 5 . . 9 9 5 5 5 7 . . 8 4 5 5 4 3 . . 5 2 4 4 3 2. . 9 2 1 11 0. . 3 3 Ill......................... 2 2 8 76 0 . .2 0 9 95 7 . . 1 3 5 5 9 8. . 1 9 3 3 7 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 ll .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 9 9 9 0 . .9 7 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 II, . , 353.1 290.1 63.0 62.3 49.4 12.9 307.8 105.2 65.7 39.5 202.6 III___ 364.0 298.4 65.6 64.3 50.4 13.9 IV........ 374.7 306.1 68.6 66.8 52.0 14.8 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. i Structures of five or more units. sta N nd o i t n e g .— ” t B ab as le e . d on data from same source as for “Mortgage Debt Out est N im o a t t e e . s — . F F o o r r c t o o n ta v l e n d ti e o b n t a l o , u fi t g s u ta r n es d i a n r g e , de fi r g iv u e re d s . are FHLBB and F.R. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 52 REAL ESTATE CREDIT □ SEPTEMBER 1972 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Other Other Total non- Total non- Farm FHA- VA- Con farm VA- Con farm Total in guar ven Total 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,( 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,* 2,496 34,184 22,248 4,038 56,394 48,874 15,865 12,105 20,904 7,413 107 II. . 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,880 49,260 15,931 12,092 21,237 7,519 101 III. 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21.654 7,671 103 IV.. 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—I... 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 III. 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 1969................................................... 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—June...................................... 537 494 29 9 456 42 74,535 68,973 11,123 5,219 52,631 5,562 July....................................... 590 551 20 8 523 39 74,583 69,017 11,048 5,180 52,789 5,566 Aug....................................... 735 684 23 8 601 51 74,707 69,121 10,975 5,142 52,438 5,586 Sept....................................... 672 636 73 10 515 36 74,799 69,209 10,950 5,104 52,590 5,590 Oct........................................ 607 568 28 11 487 39 74,864 69,270 10,884 5,071 52,749 5,594 607 565 20 9 492 42 74,903 69,302 10,843 5,047 52,854 5,596 Dec........................................ 1,346 1,285 18 10 1,252 61 75,596 69,995 10,760 5,001 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 Mayr.................................... 600 540 15 13 512 60 74,931 69,379 10,467 4,873 54,039 5,552 June..................................... 708 643 31 21 591 65 74,987 69,409 10,391 4,838 54,180 5,578 1 1 Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value of ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end Note.—Institute of Life Insurance data. For loans acquired, the adjustments are more complete. Beginning 1970 monthly and year-earlier monthly figures may not add to annual totals; and for loans outstanding data are on a statement balance basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 d m 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 t r 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 ti r b o a t ge P co e n r 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 1,6 33 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 Sept.................. 178 366.1 2,057 9.15 22/6 74.8 9.8 1.28 10.4 Oct................... 112 198.4 1,771 9.20 22/7 75.8 10.0 1.28 10.4 Nov.................. 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 10.2 Dec.................. 133 290.0 2,181 8.96 23 74.4 9.9 1.30 10.2 1972—Jan................... 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 10.2 Feb.................. 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 10.0 Mar................. 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 9.7 Note.—Life Insurance Association of America data for new commit limited to cases where information was available or estimates could be ments of $100,000 and over each on mortgages for multifamily and non made: capitalization rate (net stabilized property earnings divided by residential nonfarm properties located largely in the United States. The 15 property value); debt coverage ratio (net stabilized earnings divided by companies account for a little more than one-half of both the total assets debt service); and per cent constant (annual level payment, including and the nonfarm mortgages held by all U.S. life insurance companies. principal and interest, per $100 of debt). All statistics exclude construction Averages, which are based on number of loans, vary in part with loan loans, increases in existing loans in a company’s portfolio, reapprovals, composition by type and location of property, type and purpose of loan, and loans secured by land only. and loan amortization and prepayment terms. Data for the following are MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Members’ Ad Repay deposits Period vances ments (end of Period h N o e m w e Home FHA- VA- Con Total t S e h rm or t 1 t L er o m ng 2 period) Total i con pur Total 2 in guar ven struc chase sured anteed tional tion 278 213 195 176 19 46 1964......................... 5,565 5,025 5,325 2,846 2,479 1,199 1945............... 1,913 181 1,358 5,376 1965......................... 5,007 4,335 5,997 3,074 2,923 1,043 1966......................... 3,804 2,866 6,935 5,006 1,929 1,036 1964............... 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1965............... 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1,527 4,076 4,386 3,985 401 1,432 1966............... 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1968......................... 2,734 1,861 5,259 4,867 392 1,382 1969......................... 5,531 1,500 9,289 8,434 855 1,041 1967............... 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1970......................... 3,256 1,929 10,615 3,081 7,534 2,331 1968............... 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1971......................... 2,714 5,392 7,936 3,002 4,934 1,789 1969............... 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1970............... 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1971—Aug.............. 358 183 7,514 2,812 4,702 1,528 1971............... 39,472 6,835 18,811 174,385 13,798 10,848 149,739 Sept............. 327 203 7,637 2,844 4,793 1,522 306 303 7,640 2,874 4,766 1,450 1971—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 2,225 166,342 12,852 10,034 143,456 Dec.............. 490 262 7,936 3,002 4,934 1,789 Sept... 3,672 628 1,951 168,464 13,130 10,232 145,102 Oct.. . 3,405 609 1,717 170,106 13,278 10,374146,454 186 885 7,238 2,569 4,669 1,948 Nov... 3,298 589 1,661 172,047 13,521 10,582 147,944 Feb.............. 148 871 6,515 2,342 4,173 2,014 Dec... 3,592 573 1,590 174,385 13,798 10,848 149,739 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 1,400 177,614 14,167 11,264 152,183 June............ 420 198 6,074 1,944 4,130 1,746 Mar... 2,849 712 1,861 180,145 14,450 11,546 154,149 July............. 285 222 6,138 1,990 4,148 1,497 Apr... 3,819 707 1,819 182,711 14,697 11,789 156,225 May. . 4,603 836 2,276 185,431 14,878 12,010 158,543 Juner. 5,449 872 2,920 188,884 15,019 12,293 161,572 1 Secured or unsecured loans maturing in 1 year or less. July... 4,565 745 2,514 191,703 15,159 12,615 163,929 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 □ SEPTEMBER 1972 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans home loans Mortgage Mortgage Mortgage holdings transactions commitments (during Date of auction Mortgage Average Mortgage Average End of period) amounts yield amounts yield period (short (short Total F su H in re A - d - a g V n u t A e a e r - - d c P ha u s r e s Sales d p M u 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 te m e r n m m ts i ) t Offered ce A p c te d c m o te e m r n m m ts i ) t 196 7 5,522 4,048 1,474 1,400 12 1,736 501 In millions of In In millions of In 196 8 7,167 5,121 2,046 1,944 2,697 1,287 dollars per cent dollars per cent 196 9 10,950 7,680 3,270 4,121 6,630 3,539 197 0 15,502 11,071 4,431 5,078 8,047 5,203 197 1 17.791 3,574 4,986 5.694 1972—Feb. 28. 21.1 11.5 1971-July.. 15,674 11,184 4,490 407 576 5,709 Mar. 6... 86.9 50.6 7.56 Aug.. 16,204 11,562 4,642 659 1,219 5,146 13... 10.1 5.5 7.61 Sept.. 16,732 635 572 5,327 20... 202.9 86.2 7.54 Oct. . 17,202 553 655 5,208 Nov.. 17,535 406 893 5,466 Apr. 3... 258.8 178.5 7.56 Dec.. 17.791 350 1,014 5.694 10... 27.1 14.9 7.66 17... 347.4 176.3 7.60 1972-Jan... 17,977 281 574 5,558 Feb.. 18,220 16,926 1,178 324 598 5,696 May 1... 364.9 336.4 7.63 Mar.. 18,342 13,654 4,687 316 469 5,635 35.0 20.4 7.77 Apr.. 18,403 13,744 4,659 246 5,853 15... 266.3 188.2 7.63 May. 18,599 13,923 4,674 321 6,186 30... 133.4 76.4 7.62 June. 18,628 13,952 4,670 223 5,957 July.. 18,740 14,013 4,714 258 June 1... 28.2 22.7 7.80 12... 83.5 48.1 7.62 26... 97.8 76.6 7.62 Note.—Federal National Mortgage Assn. data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market July 10... 134.6 92.1 7.62 portfolio of former FNMA. Mortgage holdings include loans used to back 17... 32.4 22.7 7.80 bond issues guaranteed by GNMA. Mortgage commitments made during 24... 123.9 113.0 7.62 the period include some multifamily and nonprofit hospital loan commit ments in addition to 1- to 4-family loan commitments accepted in FNMA’s Aug. 7... 106.2 81.7 7.63 free market auction system, and through the FNMA-GNMA Tandem 14... 24.7 24.2 7.80 Plan (Program 18). 21... ii4.'6 87.2 7.62 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 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 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—July. 104.2 116.4 1967............. 3,348 2,756 592 860 1,045 1,171 Aug. 121.1 118.0 300.0 1968............. 4,220 3,569 651 1,089 1 867 1,266 Sept. 254.2 71.5 1969............. 4,820 4,220 600 827 615 1,130 Oct.. 226.1 112.6 1970............. 5,184 4,634 550 621 897 738 Nov. 533.7 244.2 Dec., 318.3 212.8 1971-July... 5,282 4,761 520 25 487 1,586 Aug... 5,279 29 1972—Jan.. 384.1 247.7 Sept... 5.259 4,749 510 17 Feb.. 511.2 391.2 200.0 Oct. .. 5,245 15 Mar. 528.3 322.5 Nov... 5.260 24 Apr., 187.8 275.1 Dec... 5,294 32 May. 216.4 212.9 *566.0* June, 245.8 193.2 1972-Jan.... 5.287 July. 135.5 145.8 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.. 5,235 of principal and interest on both pass-through and bond-type securities, July... 5.287 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. To date, bond-type securities have been issued only by FNMA and Note.—Government National Mortgage Assn. data. Data prior to FHLMC. Sept. 1968 relate to Special Assistance and Management and Liquidating 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
SEPTEMBER 1972 □ REAL ESTATE CREDIT A 55 HOME-MORTGAGE YIELDS GOVERNMENT-UNDERWRITTEN RESIDENTIAL (In per cent) LOANS MADE (In millions of dollars) Primary market Secondary (conventional loans) market FHA-insured VA-guaranteed FHA series FHLBB series Yield Mortgages Mortgages Period (effective rate) on FHA- Period Prop insured Pro erty New Existing h N om ew es l h o n o e a m w ns e Total h N om ew es h is E o t m i x n e g s jects1 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 1968......................... 6.97 7.03 7.12 7.21 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1969......................... 7.81 7.82 7.99 8.26 1970......................... 8.44 8.35 8.52 9.05 8,689 1,705 5,760 591 634 2,652 876 1,774 1971......................... 7.60 7.54 7.75 7.70 7,320 1,729 4,366 583 641 2,600 980 1,618 1967............. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1971---JUly............. 7.66 7.63 7.80 7.97 1968............. 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 Aug.............. 7.74 7.71 7.85 7.92 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 Sept.............. 7.83 7.76 7.85 7.84 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 Oct............... 7.84 7.75 7.80 7.75 Nov.............. 7.79 7.69 7.75 7.62 1971—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............. r7.55 7.49 7.60 7.54 1972—Jan. . 1,277 420 516 280 62 629 204 425 July............. 7.58 7.50 7.65 7.54 Feb.. 1,094 366 448 237 44 460 199 361 Mar.. 1,253 349 449 401 54 658 231 427 Apr.. 954 272 381 249 51 509 170 339 Note.—Annual data are averages of monthly figures. The May. 628 259 369 217 56 603 185 418 FHA data are based on opinion reports submitted by field offices June. 643 27 372 197 71 848 239 609 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 1 Monthly figures do not reflect mortgage amendments included in annual 203, 30-year mortgages with minimum downpayment and an totals. assumed prepayment at the end of 15 years. Gaps in data are 2 Not ordinarily secured by mortgages. due to periods of adjustment to changes in maximum permis 3 Includes a small amount of alteration and repair loans, not shown separ sible contract interest rates. The FHA series on average contract ately; only such loans in amounts of more than $1,000 need be secured. interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured The FHLBB effective rate series reflects fees and charges as well loans represent gross amount of insurance written; VA-guaranteed loans, as contract rates (as shown in the table on conventional first- gross amounts of loans closed. Figures do not take into account principal mortgage terms, p. A-37) and an assumed prepayment at end repayments on previously insured or guaranteed loans. For VA-guaranteed of 10 years. loans, amounts by type are derived from data on number and average amount of loans closed. DELINQUENCY RATES ON HOME MORTGAGES FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— Loans in Mortgage Mortgage Mortgage fore holdings transactions commitments End of period closure (during period) Total 30 days 60 days o 9 r 0 m da o y r s e End of period 1965................. 3.29 2.40 .55 .34 .40 Total FH VA 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—Apr 328 322 6 8 May.... 346 339 7 20 1969—1........... 2.77 2.04 .49 .24 .26 June.... 485 454 31 141 II......... 2.68 2.06 .41 .21 .25 July 637 587 50 154 49 283 Ill.... 2.91 2.18 .47 .26 .25 Aug......... 689 625 65 54 76 305 IV___ 3.22 2.43 .52 .27 .27 Sept........ 798 695 103 111 117 376 Oct.......... 902 761 141 108 49 300 1970—1........... 2.96 2.14 .52 .30 .31 Nov........ 976 800 176 91 15 23 227 II......... 2.83 2.10 .45 .28 .31 Dec......... 968 821 147 45 49 7 182 Ill___ 3.10 2.26 .53 .31 .25 IV........ 3.64 2.67 .61 .36 .33 1972—Jan.......... 979 828 151 17 2 17 182 Feb......... 893 844 49 23 104 126 290 1971—1........... 3.21 2.26 .56 .39 .40 Mar........ 988 928 60 98 258 373 II.......... 3.27 2.36 .53 .38 .38 Apr......... 1,110 1,040 70 126 232 455 Ill........ 3.59 2.54 .62 .43 .41 May.... 1,324 1,239 86 220 156 398 IV........ 3.93 2.82 .65 .46 .46 June........ 1,415 1,344 72 194 97 117 313 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 □ SEPTEMBER 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 1939. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941. 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950. 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955. 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960. 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 1965. 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966. 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 1967. 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 1968. 113,191 89,890 34,130 24,899 3,925 26,936 23,301 9,138 7,755 6,408 1969. 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 1970. 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1971. 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1971--July................................. 128,354 102,848 36,763 29,165 4,240 32,680 25,506 9,854 8,271 7,381 Aug................................. 129,704 104,060 37,154 29,477 4,295 33,134 25,644 9,997 8,305 7,342 Sept................................. 130,644 104,973 37,383 29,840 4,330 33,420 25,671 10,061 8,305 7,305 131,606 105,763 37,759 30,072 4,357 33,575 25,843 10,097 8,435 7,311 Nov................................. 133,263 107,097 38,164 30,586 4,370 33,977 26,166 10,182 8,634 7,350 Dec.................................. 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1972- 135,830 108,826 38,111 32,096 4,319 34,300 27,004 10,324 8,929 7,751 Feb.................................. 135,253 108,634 38,239 31,615 4,332 34,448 26,619 10,433 8,141 8,045 Mar................................. 136,135 109,481 38,762 31,682 4,354 34,683 26,654 10,511 8,011 8,132 Apr.................................. 137,791 110,734 39,337 31,882 4,417 35,098 27,057 10,620 8,306 8,131 May................................ 139,963 112,477 40,119 32,309 4,497 35,552 27,486 10,749 8,692 8.045 June................................ 142,215 114,567 41,104 32,841 4,571 36,051 27,648 10,851 8,870 7,927 July................................. 143,456 115,832 41,678 33,203 4,617 36,334 27,624 10,917 8,846 7,861 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 i dealers 2 outlets 1939. 4,503 3,065 1,079 1,836 132 18 1,438 123 1,315 1941. 6,085 4,480 1,726 2,541 198 15 1,605 188 1,417 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955. 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960. 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 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--July...................................................... 102,848 89,458 43,509 30,906 13,296 1,747 13,390 344 13,046 104,060 90,536 44,112 31,098 13,570 1,756 13,524 347 13,177 104,973 91,279 44,603 31,133 13,780 1,763 13,694 349 13,345 105,763 91,943 44,947 31,331 13,875 1,790 13,820 354 13,466 107,097 92,901 45,396 31,643 14,052 1,810 14,196 359 13,837 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1972—Jan......................................................... 108,826 93,668 45,878 31,948 14,062 1,780 15,158 359 14,799 108,634 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 May...................................................... 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 July....................................................... 115,832 100,913 49,879 33,823 15,293 1,918 14,919 397 14,522 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
SEPTEMBER 1972 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Autoinobile Repair pa]per Other and Other Repair E p n e d ri o o d f Total Pur s g c u o o m o n d e s r m iz l o o a d a ti e n o r s n n s l P o o a e n n r a s l End of period Total m A pa o u p b t e o il r e s g c u o o m o n d e s r m iz o a a n d ti d e o r n n s l P o o a e n n r a s l chased Direct paper paper loans 1939. 1,079 237 178 166 135 363 1939.................................. 1,836 932 134 151 619 1941. 1,726 447 338 309 161 471 1941.................................. 2,541 1,438 194 204 705 1945. 745 66 143 114 110 312 910 202 40 62 606 1950. 5,798 1,177 1,294 1,456 834 1,037 1950.................................. 5,315 3,157 692 80 1,386 1955. 10,601 3,243 2,062 2,042 1,338 1,916 1955.................................. 11,838 7,108 1,448 42 3,240 1960. 16,672 5,316 2,820 2,759 2,200 3,577 1960.................................. 15,435 7,703 2,553 173 5,006 1965. 28,962 10,209 5,659 4,166 2,571 6,357 1965.................................. 24,282 9,400 4,425 224 10,233 1966. 31,319 11,024 5,956 4,681 2,647 7,011 1966.................................. 26,091 9,889 5,171 191 10,840 1967. 32,700 10,927 6,267 5,126 2,629 7,751 1967.................................. 26,734 9,538 5,479 154 11,563 1968. 36,952 12,213 7,105 6,060 2,719 8,855 1968.................................. 29,098 10,279 5,999 113 12,707 1969. 40,305 12,784 7,620 7,415 2,751 9,735 1969.................................. 31,734 11,053 6,514 106 14,061 1970. 41,895 12,433 7,587 8,633 2,760 10,482 1970.................................. 31,123 9,941 6,648 94 14,440 1971, 45,976 13,003 8,752 9,805 2,864 11,552 32,140 10,279 6,521 107 15,233 1971--July... 43,509 12,614 8,220 8,931 2,803 10,941 1971—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 Feb........................ 31,979 10,207 6,508 107 15,157 Mar. .. 46,415 13,167 8,903 9,833 2,835 11,677 32,221 10,340 6,554 109 15,218 Apr.... 47,148 13,369 9,065 10,004 2,873 11,837 32,530 10,474 6,574 112 15,370 May... 48,032 13,647 9,264 10,208 2,925 11,988 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 July. .. 49,879 14,315 9,612 10,644 3,019 12,289 July....................... 33,823 10,974 6,936 117 15,796 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 cardsi 1939................................... 150 27 5 12 106 banks insti 1941................................... 213 47 9 11 146 tutions 1945................................... 121 16 4 10 91 1950................................... 692 159 40 102 391 1939................. 2,719 625 162 1,414 518 1955................................... 1,959 560 130 313 956 1941................. 3,087 693 152 1,645 597 1960................................... 4,566 1,460 297 775 2,034 1945................. 3,203 674 72 1,612 845 1965................................... 8,289 3,036 498 933 3,822 1950................ 6,768 1,576 245 3,291 76 1,580 1966................................... 9,314 3,410 588 980 4,336 1955................. 9,924 2,635 367 4,579 216 2,127 1967................................... 10,056 3,707 639 1,006 4,704 1960................. 13,173 3,884 623 4,893 436 3,337 1968................................... 11,407 4,213 727 1,093 5,374 1969................................... 12,943 4,809 829 1,183 6,122 196 5 18,990 6,690 981 5,724 706 4,889 1970................................... 14,046 5,202 898 1,256 6,690 196 6 20.004 6,946 1,026 5,812 874 5,346 1971................................... 15,970 5,916 1,022 1,385 7,647 196 7 21,206 7,340 1,088 5,939 1,029 5,810 196 8 23,301 7,975 1,163 6,450 1,305 6,408 1971—July....................... 15,043 5,548 958 1,336 7,201 196 9 24,300 7,900 1,196 6,650 1,584 6,970 Aug....................... 15,326 5,659 977 1,354 7,336 197 0 25,641 8,205 1,279 6,932 1,918 7,307 Sept....................... 15,543 5,746 992 1,366 7,439 197 1 27.692 8.916 1.384 7.597 2,221 7.574 Oct......................... 15,665 5,787 999 1,378 7,501 Nov....................... 15,862 5,862 1,012 1,389 7,599 1971—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 Feb.... 26,619 9,008 1,425 6,008 2,133 8.045 July....................... 17,211 6,380 1,101 1,481 8,249 Mar.. . 26,654 9,083 1,428 5,969 2,042 8,132 Apr.... 27,057 9,176 1.444 6,239 2,067 8,131 May... 27,486 9,294 1,455 6,638 2,054 8.045 June... 27,648 9,406 1.445 6,764 2,106 7,927 Note.—Other financial lenders consist of credit unions and miscel July... 27,624 9,473 1,444 6,680 2,166 7,861 laneous lenders. 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 □ SEPTEMBER 1972 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.i N.S.A. S.A.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]177 1970............................................. 104,130 29,831 36,781 2,145 35*373 1971............................................ 117,638 34,638 40,979 2,550 39*471 1971—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 July................................. 10,811 11.032 3,182 3,415 4,061 3,962 236 264 3,332 3,391 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—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 3,233 199 202 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 July................................. 9; 784 9,767 2,835 2,841 3,681 3,600 215 218 3,053 3,108 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—July................................. 761 986 208 414 196 189 30 54 327 329 Aug................................. 827 1,212 307 391 203 312 26 55 291 454 Sept................................. 999 913 415 229 290 363 28 35 266 286 Oct.................................. 924 790 358 376 248 232 32 27 286 155 Nov................................. 1,266 1,334 500 405 341 514 15 13 410 402 Dec................................. 900 2,448 277 146 416 1,861 19 -14 188 455 1972—Jan.................................. 637 -719 217 -199 205 -351 20 -37 195 -132 Feb.................................. 966 -192 353 128 290 -481 43 13 280 148 Mar................................. 1,364 847 450 523 499 67 45 22 370 235 Apr................................. 1,096 1,253 427 575 293 200 49 63 327 415 May................................ 1,441 1,743 491 782 481 427 29 80 440 454 June................................ 1,327 2,090 547 985 443 532 42 74 295 499 July................................. 1,027 1,265 347 574 380 362 21 46 279 283 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
SEPTEMBER 1972 □ CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965. 78,586 29,528 25,192 9,436 14,430 1966. 82,335 30,073 25,406 10,362 16,494 1967. 84,693 30,850 25,496 10,911 17,436 1968. 97,053 36,332 28,836 12,850 19.035 1969. 102,888 38,533 30,854 14,245 19,256 1970. 104,130 39,136 29,662 14,619 20,713 1971. 117,638 45,099 32,036 17,312 23,191 1971—July.. 9,675 10,098 3,644 3,917 2,676 2,791 1,423 1,506 1,932 1,884 Aug.. 10,049 10,300 3,919 4,062 2,699 2,729 1,452 1,582 1,979 1,927 Sept.. 10,156 9,849 3,989 3,932 2,718 2,549 1,488 1,439 1,961 1,929 Oct.. 10,031 9,797 3,832 3,752 2,733 2,655 1,490 1,414 1.976 1,976 Nov.. 10,572 10,711 4,140 3,931 2,853 3,015 1,564 1,535 2,015 2,230 Dec.. 10,130 11,966 3,939 4,023 2,760 3,370 1,454 1,477 1.977 3,096 1972—Jan... 10,184 8,766 3,826 3,366 2,695 2,247 1.482 1,244 2,181 1,909 Feb.. 10,339 8,902 3,947 3,539 2,666 2,354 1,602 1,465 2,124 1,544 Mar.. 10,996 10,951 4,117 4,237 2,906 2,890 1,737 1,743 2,236 2,081 Apr.. 10,777 10.563 4,156 4,215 2,908 2,793 1,583 1,577 2,130 1,978 May. 10,998 li;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 July.. 10,811 11,032 4,273 4,510 2,773 2,840 1.483 1,541 2,282 2,141 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—July.. 8,914 9,112 3,351 3,419 2,485 2,494 1,293 1,387 1,785 1,812 Aug.. 9,222 9,088 3,456 3,459 2,590 2,537 1,288 1,299 1,888 1,793 Sept. 9,157 8,936 3,460 3,441 2,614 2,514 1,266 1,222 1,817 1,759 Oct.. 9,107 9,007 3,439 3,408 2,495 2,457 1,319 1,292 1,854 1,850 Nov.. 9,306 9,377 3,470 3.482 2.579 2,703 1.360 1.338 1,897 1,854 Dec.. 9,230 9,518 3,451 3,443 2,596 2,873 1,324 1,369 1,859 1,833 1972—Jan........ 9,547 9,485 3.620 3,464 2,586 2,439 1,346 1,372 1.995 2,210 Feb___ 9,373 9,094 3,538 3,454 2,463 2.323 1,377 1,294 1.995 2,023 Mar___ 9,632 10,104 3,574 3,785 2,513 2,648 1,527 1,539 2,018 2,132 Apr___ 9,681 9,310 3,598 3.482 2.579 2,484 1,424 1,368 2,080 1,976 May... 9,557 9,934 3.621 3,817 2,489 2,582 1,408 1,459 2,039 2,076 June... 9,791 9,972 3,755 3,833 2,528 2,593 1,480 1,532 2,028 2,014 July.... 9,784 9,767 3,796 3,798 2,523 2,487 1.361 1,427 2,104 2,055 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 —July................................. 761 986 293 498 191 297 130 119 147 72 Aug................................. 827 1,212 463 603 109 192 164 283 91 134 Sept................................. 999 913 529 491 104 35 222 217 144 170 Oct................................... 924 790 393 344 238 198 171 122 122 126 Nov................................. 1,266 1,334 670 449 274 312 204 197 118 376 Dec.................................. 900 2,448 488 580 164 497 130 108 118 1,263 —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 July................................. 1,027 1,265 477 712 250 353 122 114 178 86 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. □ SEPTEMBER 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 age1* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July*5 Total index.......................................... 100.00 106.8 106.8 105.6 107.1 106.8 107.4 108.1 108.7 110.0 111.2 112.8 113.2 113.4 113.7 Products, total........................................ 62.21 106.4 107.0 106.1 107.0 107.0 107.9 108.0 108.4 109.5 110.1 111.4 112.1 112.1 112.0 Final products...................................... 48.95 104.7 105.0 104.8 105.5 105.4 106.1 106.2 106.4 107.6 108.2 109.8 110.2 110.3 110.1 Consumer goods............................. 28.53 115.7 116.3 115.9 116.7 116.6 118.0 118.0 118.5 119.6 119.6 122.0 122.2 122.2 121.8 Equipment....................................... 20.42 89.4 89.3 89.5 89.8 89.8 89.6 89.6 89.5 90.9 92.4 92.7 93.4 93.3 93.7 Intermediate products....................... 13.26 112.6 114.6 110.9 112.3 113.2 114.3 114.9 115.9 117.0 117.3 117.3 119.3 119.3 119.2 Materials.................................................. 37.79 107.4 106.4 104.8 107.3 106.6 106.5 108.4 109.2 110.8 113.1 115.0 115.6 115.9 116.5 Consumer goods Durable consumer goods........................ 7.86 115.1 117.4 117.3 117.1 116. 116.0 117.4 117.5 120.3 118.9 125.9 125.3 125. 125.2 Automotive products......................... 2.84 119.5 121.7 122.3 122.9 121.9 119.7 119.9 116.6 119.5 119.3 128.9 127.4 125.7 125.6 Autos................................................ 1.87 108.3 107.9 108.5 108.0 107.8 109.2 109.4 102.8 106.4 104.6 114.3 111.3 108.2 108.2 Auto parts and allied goods........ .97 140.9 148.0 148.9 151.5 149.0 140.1 140.0 143.4 144.5 147.5 157.0 158.3 159.2 159.3 Home goods............................................ 5.02 112.6 115.0 114.4 113.8 113.9 113.8 116.0 118.1 120.7 118.7 124.2 124.3 125.8 124.7 Appliances, TV, and radios............. 1.41 111.5 115.5 112.4 110.4 109.7 110.5 116.9 123.8 123.1 115.1 132.2 129.3 125.9 124.2 Appliances and A/C................. .92 127.6 126.7 128.5 129.0 129.5 131 135.8 143.4 146.9 131.9 149.3 148.2 141.2 142.4 TV and home audio................ .49 81.4 94.5 82.4 75.6 72.6 71.8 81.3 87.1 78.3 84.0 100.1 93.7 97.2 89.9 Carpeting and furniture.................. 1.08 117.2 121.2 121.7 121.9 120.7 122.2 120.4 121.7 126.1 127.1 131.3 132.0 134.0 135.9 Misc. home goods............................ 2.53 111.2 112.1 112.7 112.3 113 112.0 113.7 113.5 117.2 117.2 116.9 118.2 122.3 120.3 Nondurable consumer goods................ 20.67 116.0 115.9 115.4 116.5 116.6 118.8 118.4 119.0 119.3 119.9 120.5 121.0 120.8 120.5 Clothing.............................................. 4.32 101.4 102.5 100.3 103.6 103.2 103.7 105.0 105.8 102.7 105.0 105.0 106.2 106.6 Consumer staples.............................. 16.34 119.8 119.4 119 119.9 120.2 122.8 121.9 122.5 123.7 123.9 124.6 124.9 124.6 123.9 Consumer foods and tobacco... 8.37 113.6 112 112.8 114.1 113 117.2 115.5 115.4 115.5 116.3 116.8 117.2 117.5 115.4 Nonfood staples........................... 7.98 126.3 126.9 126.4 126.1 126.7 128 128.7 129.8 132.4 132.0 132.8 133.1 132.0 132.9 Consumer chemical products. 2.64 133.9 132.7 133.3 133.6 132.0 137.2 134.3 137.6 144.3 141.4 145.4 144.8 140.2 140.4 Consumer paper products.... 1.91 107.9 106.9 106 109.2 111.0 111.5 114.8 111.4 112.1 113.9 111.4 111.1 112.2 110.9 Consumer fuel and lighting.. 3.43 130.8 133.8 132.3 129.6 131.6 131.6 132.1 134.2 134.5 134.9 134.8 136.3 136.8 139.4 Residential utilities.............. 2.25 137.6 141.8 138.6 136.5 138.5 138.8 139.0 141.8 142.5 142.3 142.1 143.2 145.0 148.0 Equipment Business equipment....................... 12.74 96 97.1 97.5 98.2 98.2 97.9 98.0 98.4 99.9 101.3 101.3 102.5 102.2 102.2 Industrial equipment............... 6.77 92.9 92.0 92.8 93.2 93 94.2 94.2 94.1 95.4 96.3 95.7 96.3 97.2 96.9 Building and mining equip., 1.45 92.9 88.9 96.4 96.6 95.5 95.2 94.0 98.0 99.6 101.2 98.4 97.0 98.3 99.4 Manufacturing equipment. 3.85 82.6 82.5 81 82.1 83.1 83.5 83.8 82.4 83.4 84.5 84.9 85.9 86.7 86.5 Power equipment................. 1.47 119.8 119.9 119.0 118.7 118.8 121 121 121.0 122.7 122.0 121.4 122.8 123.5 121.8 Commercial, transit, farm eq.. 5.97 101.2 102.9 102.8 104.0 103.6 102.1 102.4 103.3 105.1 107.0 107.6 109.6 108.3 108.0 Commercial equipment.... 3.30 110.0 111.7 111.1 113.1 112.2 110.2 109.4 109.1 111.9 114.7 114.1 116.4 116.7 116.9 Transit equipment............... 2.00 89.4 89.3 90.7 90.8 91.1 89.4 93.1 95.1 94.7 95.4 97.0 98.9 94.0 92.2 Farm equipment................... .67 93.2 100.2 97.7 98.5 98.8 100.0 96.1 98.6 102.4 103.5 106.8 108.2 109.7 111.1 Defense and space equipment. 7.68 77.1 76.3 76.3 76.0 75.7 75.9 75.6 74.8 76.0 77.6 78.5 78.2 78.9 79.5 Military products................. 5.15 79 78.8 79.2 79.0 79.0 78.8 78.3 77.6 78.5 80.7 81 81.1 81.4 82.5 Intermediate products Construction products........... 5.93 112.6 115.2 109.3 111.5 112.8 114.2 115.2 115.7 115.8 115.9 116.5 118.0 117.7 118.1 Misc. intermediate products. 7.34 112.6 114.4 112.1 112.9 113.5 114.4 114.5 116.1 118.0 118.5 118.0 120.4 120.6 119.8 Materials Durable goods materials.... 20.91 101.7 99.7 96.5 100.6 102.2 100.5 101.6 103.5 105.8 107.8 110.4 111.1 110.9 111.0 Consumer durable parts. 4.75 104.2 101.1 105.6 103.3 104.1 101.8 104.0 105.1 107.1 110.2 113.8 112.0 111.6 111.7 Equipment parts.............. 5.41 87.1 88.0 83.1 87.1 88.1 87 87.9 88.8 90.7 91.0 95.4 95.3 95.0 96.8 Durable materials nec... 10.75 107 105.1 99.3 106.2 108.5 106.5 107.4 110.2 112.8 115.2 116.5 118.6 118.7 117.9 Nondurable goods materials............ 13.99 114.1 113.6 114.7 114 115.0 115.9 116.7 116.0 117.0 119.8 120.6 121.3 122.5 123.3 Textile, paper, and chem. mat.. 8.58 116.6 115.5 117.7 118.8 119.0 121.5 123.0 120.8 121.5 125.0 125.9 127.1 128.7 129.9 Nondurable materials n.e.c. 5.41 110.3 110.6 110.0 108.2 108.4 107.2 106.8 108.3 109.9 111.4 112.3 112.3 112.7 112.3 Fuel and power, industrial............. 2.89 116.3 119.6 117.4 119.5 98.7 104.6 117.6 117.4 117.7 118.9 121.6 120.7 121.7 122.9 Supplementary groups Home goods and clothing. 9.34 107.4 109.2 107.9 109.1 108.9 109. 110.9 112.4 112.4 112.3 115.3 115.9 116.9 116.4 Containers............................ 1.82 116.8 118.3 117.3 115.1 116.9 119. 121.0 120.6 123.7 120.3 127.5 127.0 130.2 131.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 392.0 391.8 390.0 392.1 393.2 396.5 396.5 398.7 402.0 405.6 409.7 413.0 412.1 410.0 Final products............. 302.6 300.7 302.4 303.5 303.8 306.7 305.8 306.7 309.2 312.3 317.1 318.5 317.8 315.5 Consumer goods. . . 213.8 213.3 213.9 214.2 215.0 217.9 217.4 217.4 218.8 220.4 224.8 225.1 224.5 221.8 Equipment................ 88.8 87.7 88.6 89.4 89.2 89.0 88.9 89.2 90.4 91.9 92.4 93.3 93.4 93.7 Intermediate products. 89.5 91.4 87.8 88.9 89.4 90.2 90.6 92.5 92.9 93.2 92.8 94.5 94.3 94.6 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* 88.55 105.2 105.8 104.2 105.7 106.1 106.0 106.2 107.1 108.5 109.7 111.8 112.3 112.8 113.0 Durable................................................. 52.33 99.4 100.3 91A 99.3 100.1 99.1 99.5 100.4 102.1 103.4 105.8 106.3 106.8 107.2 Nondurable.......................................... 36.22 113.6 113.8 114.0 115.1 114.7 115.9 116.0 116.8 117.8 118.8 120.3 120.8 121.3 121.1 Mining and utilities................................ 11.45 118.9 119.2 118.6 118.3 114.3 117.4 120.1 120.6 121.6 122.3 122.9 122.6 122.7 122.2 6.37 107.0 105.6 106.3 105.9 97.7 102.5 107.8 107.3 107.2 108.5 109.0 107.9 107.5 107.1 Utilities................................................. 5.08 133.9 136.2 134.1 134.0 135.2 136.0 135.8 137.4 139.7 139.7 140.2 141.1 141.8 141.1 Durable manufactures Primary and fabricated metals............. 12.55 104.0 104.6 94.0 99.5 101.3 98.8 100.6 104.0 105.4 107.4 110.4 112.7 111.4 113.3 Primary metals.................................... 6.61 100.9 98.9 81.2 93.8 96.1 91.4 94.3 102.4 102.6 105.1 110.2 113.5 110.7 112.8 Iron and steel, subtotal................. 4.23 96.6 99.0 66.5 85.9 89.4 81.9 85.5 95.2 95.9 98.8 105.5 108.3 105.1 108.5 Fabricated metal products............... 5.94 107.5 110.9 108.2 105.9 107.1 107.1 107.6 106.0 108.6 110.1 110.8 111.9 112.3 113.9 Machinery and allied goods................... 32.44 94.9 95.8 95.4 96.2 96.6 95.9 95.6 95.7 97.3 98.4 101.1 101.0 101.9 101.9 Machinery............................................ 17.39 96.2 97.7 96.7 97.9 98.3 97.8 91.9 98.5 99.5 100.3 102.6 103.0 105.1 104.5 Nonelectrical machinery............... 9.17 94.3 95.8 95.5 97.0 97.4 95.9 94.8 95.1 96.2 97.6 98.6 100.4 102.9 102.1 8.22 98.3 99.9 97.9 99.0 99.3 99.9 101.3 102.2 103.2 103.3 107.1 105.9 107.4 107.3 Transportation equipment............... 9.29 92.9 93.2 93.9 94.2 94.5 93.4 92.7 92.0 94.7 95.9 100.4 98.9 97.4 98.2 Motor vehicles and parts............. 4.56 114.1 115.5 116.3 115.8 116.0 115.7 116.1 114.0 117.7 118.8 125.6 122.6 119.1 121.2 Aerospace and misc. trans. eq... 4.73 72.5 71.7 72.3 73.4 73.7 72.0 70.1 70.8 72.7 73.9 76.1 76.1 76.4 76.1 Instruments.......................................... 2.07 108.5 110.9 109.1 110.5 111.2 110.4 109.3 111.3 114.5 114.2 116.1 117.3 119.3 119.7 Ordnance, private and Govt............ 3.69 86.1 85.0 85.5 85.2 85.3 84.9 84.4 83.2 83.7 86.4 87.3 87.6 89.2 89.3 Lumber, clay, and glass......................... 4.44 111.5 111.4 111.0 112.1 113.2 113.7 114.8 115.5 118.0 118.1 118.1 118.2 119.2 118.1 Lumber and products....................... 1.65 113.9 114.1 113.9 114.8 118.2 119.4 121.7 122.0 119.7 119.6 119.9 119.1 121.8 121.0 Clay, glass, and stone products----- 2.79 110.0 109.8 109.3 110.6 110.1 110.4 110.7 111.6 117.0 117.2 117.1 117.5 117.7 116.4 Furniture and miscellaneous.................. 2.90 111.7 115.9 114.0 114.2 114.0 113.3 114.3 115.0 117.3 118.4 119.9 120.6 122.1 122.7 Furniture and fixtures....................... 1.38 102.1 104.8 105.2 105.3 104.5 105.4 103.8 104.0 108.4 108.7 111.7 110.7 113.9 114.5 Miscellaneous manufactures............ 1.52 120.5 126.1 122.0 122.2 122.6 120.5 123.9 125.1 125.4 127.2 127.4 129.6 129.6 130.0 Nondurable manufactures Textiles, apparel, and leather............... 6.90 100.7 100.9 100.8 102.5 102.3 101.8 103.1 102.0 101.1 103.7 106.1 104.9 105.8 104.7 2.69 108.6 108.6 110.5 111.0 110.1 110.2 112.6 108.9 107.0 110.9 113.5 112.8 113.8 114.0 Apparel products................................ 3.33 97.8 98.3 97.4 99.5 100.0 99.8 99.7 99.8 100.1 102.7 103.3 102.8 103.0 Leather and products........................ .88 87.4 87.0 84.2 87.7 87.4 83.3 87.1 89.6 86.9 85.4 94.4 89.2 92.1 ' '90.'5 Paper and printing.................................. 7.92 107.8 108.4 108.1 108.2 109.4 110.5 110.7 111.3 112.6 112.6 112.3 114.1 114.7 115.1 Paper and products............................ 3.18 115.8 115.3 117.5 116.2 116.9 119.2 119.8 122.2 122.8 122.5 124.4 127.2 126.7 128.0 Printing and publishing..................... 4.74 102.5 103.8 101.7 102.9 104.3 104.5 104.7 103.9 105.8 105.9 104.2 105.3 106.8 106.4 Chemicals, petroleum, and rubber----- 11.92 124.8 124.7 126.3 127.5 126.6 127.9 127.9 129.8 132.6 133.4 136.1 137.5 137.4 137.3 Chemicals and products................... 7.86 126.4 126.0 127.7 129.9 128.4 130.8 130.4 131.2 135.1 135.7 137.9 138.9 139.3 138.9 Petroleum products............................ 1.80 115.7 114.8 115.8 113.7 115.7 116.0 118.3 119.3 118.7 117.9 117.0 119.5 117.3 118.7 Rubber and plastics products.......... 2.26 126.0 128.1 129.9 129.6 129.1 127.7 126.6 133.3 135.0 138.1 144.7 146.5 146.5 146.6 Foods and tobacco.................................. 9.48 113.7 114.1 113.1 114.2 113.3 115.8 115.0 115.7 115.9 116.3 117.6 117.1 117.6 117.2 Foods.................................................... 8.81 114.9 115.5 114.1 115.2 114.4 117.1 116.6 116.5 116.9 117.5 118.6 118.5 119.3 118.8 Tobacco products............................... .67 97.7 96.6 98.2 100.3 98.5 98.2 93.8 103.8 102.5 101.9 103.9 99.1 96.4 Mining Metal, stone, and earth minerals.......... 1.26 104.6 91.5 96.8 98.1 102.0 110.9 111.1 108.0 109.8 108.3 104.6 99.4 98.6 98.0 Metal mining....................................... .51 121.4 93.3 104.8 109.7 117.1 136.7 137.7 128.9 133.7 131.0 122.2 110.7 104.3 106.3 Stone and earth minerals................. .75 93.2 90.2 91.4 90.1 91.7 93.4 92.7 93.8 93.5 92.7 92.6 91.7 94.7 92.4 5.11 107.6 109.1 108.7 107.9 96.6 100.4 107.1 107.1 106.5 108.6 110.0 109.9 109.7 109.4 Coal....................................................... .69 99.8 109.3 110.7 111.0 29.5 55.7 112.4 106.3 99.6 104.1 112.9 105.0 103.8 103.8 Oil and gas extraction....................... 4.42 108.9 109.1 108.4 107.4 107.1 107.4 106.3 107.2 107.6 109.3 109.6 110.7 110.7 110.3 Utilities Electric...................................................... 3.91 138.1 140.9 138.6 138.6 140.6 141.9 141.9 141.2 144.4 144.8 145.6 147.1 148.0 146.8 Gas............................................................. 1.17 119.8 1........... 1........... For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 62 INDUSTRIAL PRODUCTION: N.S.A. □ SEPTEMBER 1972 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 a 1 v 9 e 71 r 1971 1972 Grouping p ti o o r n age* July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Total index.......................................... 100.00 106.8 102.8 105.8 110.3 110.3 107.7 104.5 106.6 110.3 111.6 113.6 113.4 116.4 109.2 Products, total......................................... 62.21 106.4 104.5 107.4 112.2 111.5 107.7 103.0 105.5 109.0 110.0 111.7 110.8 115.2 109.0 Final products...................................... 48.95 104.7 102.0 105.5 110.6 109.7 105.9 101.2 104.4 107.7 108.3 110.2 108.5 113.3 106.5 Consumer goods............................. 28.53 115.7 112.6 118.4 124.2 123.0 117.2 109.9 115.7 119.4 119.2 122.4 119.6 125.8 117.3 Equipment........................................ 20.42 89.4 87.3 87.5 91.7 91.1 90.1 89.0 88.6 91.4 93.1 93.2 93.1 95.8 91.4 Intermediate products....................... 13.26 112.6 113.5 114.3 118.0 118.0 114.1 109.8 109.4 113.8 116.5 117.4 119.5 122.2 118.1 Materials.................................................. 37.79 107.4 99.9 103.1 107.3 108.2 107.6 106.9 108.3 112.4 114.5 116.6 117.7 118.5 109.4 Consumer goods 7.86 115.1 102.7 109.7 122.5 126.6 119.9 107.7 117.1 122.9 121.8 128.8 126.0 129.1 108.2 Automotive products......................... 2.84 119.5 94.9 102.0 128.7 135.9 123.9 102.5 120.7 126.5 126.3 138.2 132.6 133.5 93.6 Autos................................................. 1.87 108.3 69.4 76.5 112.0 124.0 115.6 87.5 112.0 117.0 115.1 128.0 121.3 120.1 61.0 Auto parts and allied goods........ .97 140.9 144.0 151.1 160.6 158.7 139.8 131.3 137.5 144.8 147.8 157.8 154.3 159.2 156.3 Home goods........................................ 5.02 112.6 107.1 114.1 119.0 121.4 117.6 110.7 115.1 120.8 119.3 123.5 122.3 126.6 116.5 Appliances, TV, and radios......... 1.41 111.5 102.9 104.5 113.9 125.7 116.7 98.4 123.1 127.2 120.1 131.9 124.9 125.6 112.0 Appliances and A/C.................. .92 127.6 122.9 115.0 128.6 143.5 132.3 108.2 143.8 150.3 139.3 156.6 146.9 147.4 138.6 TV and home audio.................. .49 81.4 65.4 84.8 86.2 92.5 87.4 80.1 84.3 83.9 84.1 85.6 83.7 84.8 62.2 Carpeting and furniture................ 1.08 117.2 103.4 121.9 125.4 122.0 125.5 123.0 123.5 131.4 130.8 131.8 128.3 132.8 115.9 Misc. home goods.......................... 2.53 111.2 111.1 116.2 119.1 118.8 114.7 112.3 107.1 112.7 113.9 115.3 118.2 124.6 119.2 Nondurable consumer goods.................. 20.67 116.0 116.4 121.7 124.8 121.6 116.2 110.8 115.1 118.1 118.2 119.9 117.1 124.5 120.7 Clothing................................................ 4.32 101.4 93.7 105.6 107.0 110.4 100.6 90.6 100.8 106.6 108.1 113.2 102.7 113.0 Consumer staples................................ 16.34 119.8 122.4 126.0 129.5 124.6 120.3 116.2 118.9 121.2 120.9 121.7 120.9 127.6 126.8 Consumer foods and tobacco___ 8.37 113.6 112.9 118.7 123.9 120.5 115.8 109.0 109.2 111.2 113.0 114.8 114.7 120.8 116.2 Nonfood staples.............................. 7.98 126.3 132.4 133.7 135.3 128.9 125.0 123.7 129.0 131.7 129.2 128.9 127.4 134.8 138.0 Consumer chemical products.. 2.64 133.9 138.0 139.6 145.4 139.4 137.1 124.9 129.3 137.7 135.0 142.3 143.9 152.3 146.0 Consumer paper products........ 1.91 107.9 109.6 113.9 116.0 114.7 110.7 108.9 106.3 109.1 110.8 110.3 107.9 114.8 113.7 Consumer fuel and lighting... 3.43 130.8 140.8 140.2 138.3 128.8 123.7 131.0 141.4 139.6 135.0 129.0 125.5 132.4 145.3 Residential utilities................ 2.25 137.6 151.6 149.6 148.6 134.8 126.9 135.5 152.3 150.1 144.2 136.3 128.7 137.5 155.8 Equipment Business equipment.................................. 12.74 96.8 94.4 94.7 101.1 100.3 98.3 96.4 96.6 100.7 102.2 102.3 102.2 105.5 99.2 Industrial equipment.......................... 6.77 92.9 91.0 90.8 95.7 95.2 94.6 93.4 93.0 96.2 96.4 95.7 95.7 99.0 95.8 Building and mining equip........... 1.45 92.9 87.0 90.5 98.2 97.0 99.0 95.7 97.1 99.5 97.9 99.0 96.3 101.4 97.3 Manufacturing equipment........... 3.85 82.6 80.7 80.0 85.0 83.9 83.2 83.1 81.4 85.6 86.2 84.8 85.5 88.2 84.6 Power equipment............................ 1.47 119.8 121.7 119.1 121.2 123.1 120.2 118.1 119.3 120.6 121.4 121.2 121.8 124.9 123.6 Commercial, transit, farm eq........... 5.97 101.2 98.2 99.1 107.3 106.1 102.4 99.9 100.7 105.8 108.7 109.8 109.6 112.9 103.0 Commercial equipment................. 3.30 110.0 114.5 111.9 116.7 113.2 110.5 107.4 105.3 110.1 112.6 112.2 114.7 121.9 119.8 Transit equipment.......................... 2.00 89.4 75.5 83.1 92.9 96.0 91.8 90.8 93.5 97.3 99.5 104.8 100.9 97.5 77.9 Farm equipment............................. .67 93.2 85.8 83.8 103.7 101.2 93.7 90.6 99.1 109.9 117.2 113.2 110.0 114.4 95.1 Defense and space equipment................ 7.68 77.1 75.4 75.5 76.1 75.7 76.4 76.6 75.3 75.9 77.9 78.0 78.1 79.6 78.5 Military products................................ 5.15 79.9 78.2 78.6 78.9 78.7 79.0 78.8 77.8 78.4 81.0 81.1 81.3 82.7 81.9 Intermediate products 5.93 112.6 112.2 111.8 116.1 117.6 112.7 109.1 107.6 113.7 116.9 118.9 120.6 122.0 116.1 Misc. intermediate products................. 7.34 112.6 114.5 116.4 119.6 118.4 115.2 110.4 110.9 113.9 116.1 116.2 118.7 122.4 119.8 Materials Durable goods materials......................... 20.91 101.7 93.1 93.5 100.8 103.3 101.2 100.1 102.2 107.5 110.2 112.4 113.8 114.7 103.9 Consumer durable parts................... 4.75 104.2 90.4 96.7 102.7 106.6 106.3 109.0 108.8 110.5 111.6 112.9 113.3 112.5 99.9 5.41 87.1 82.6 81.1 88.0 87.8 86.5 87.1 89.1 92.1 93.7 96.5 95.9 99.2 90.9 Durable materials n.e.c..................... 10.75 107.9 99.6 98.3 106.4 109.6 106.3 102.7 105.8 114.0 117.8 120.1 123.1 123.5 112.2 13.99 114.1 107.7 114.4 114.8 117.6 117.5 114.4 115.1 118.3 119.8 121.8 123.0 123.8 116.5 Textile, paper, and chem. mat.......... 8.58 116.6 107.3 116.8 118.7 121.5 122.8 119.2 120.0 124.3 126.0 128.5 129.6 130.5 120.7 Nondurable materials n.e.c.............. 5.41 110.3 108.3 110.7 108.6 111.3 109.0 106.8 107.4 108.8 110.0 111.2 112.6 113.2 109.9 Fuel and power, industrial................... 2.89 116.3 111.6 118.0 118.5 97.9 105.3 119.2 119.4 119.6 119.6 121.8 120.7 120.8 114.7 Supplementary groups Home goods and clothing..................... 9.34 107.4 100.9 110.2 113.4 116.3 109.7 101.4 108.5 114.2 114.1 118.7 113.2 120.3 107.8 Containers................................................ 1.82 116.8 113.1 121.3 120.2 123.6 118.3 111.9 114.0 123.3 120.3 127.9 128.9 134.2 125.2 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 agep July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July2* Manufacturing, total.. 88.55 105.2 100.3 103.5 108.8 109.7 106.8 102.7 104.7 109.0 110.5 112.7 112.7 115.7 107.1 Durable................... 52.33 99.4 93.7 94.3 101.0 102.4 99.8 91A 99.2 103.8 105.5 107.5 107.6 109.4 100.2 Nondurable............. 36.22 113.6 109.9 116.8 120.0 120.2 116.8 110.9 112.6 116.4 117.8 120.2 120.0 124.7 117.1 Mining and utilities... 11.45 118.9 121.3 123.5 122.8 114.2 113.9 118.1 121.0 121.1 120.7 120.4 120.0 122.7 124.7 Mining..................... 6.37 107.0 103.0 107.9 106.5 97.9 101.8 107.5 104.7 105.4 106.4 108.8 109.9 109.5 105.9 Utilities................... 5.08 133.9 144.2 143.0 143.4 134.7 129.1 131.5 141.5 140.8 138.7 134.9 132.6 139.4 148.4 Durable manufactures Primary and fabricated metals. 12.55 104.0 96.2 90.2 99.1 101.6 98.9 98.0 102. 109.4 112.6 114.3 115.7 114.4 104.8 Primary metals....................... 6.61 100.9 88.5 16 A 91.1 94.5 90.2 89.4 101.0 108.6 113.5 117.2 118.9 115.3 101.4 Iron and steel, subtotal... 4.23 96.6 90.4 62.1 81.9 86.2 80.7 81 93.7 101.3 107.4 113.2 114.3 108.8 100.0 Fabricated metal products.. 5.94 107.5 104.8 105.5 107.9 109.5 108.6 107.6 104.8 110.2 111.5 111.1 112.2 113.3 108.6 Machinery and allied goods............... 32.44 94.9 89.2 91.0 98.0 99.2 96.7 93.7 95. 99.1 100.2 102.3 101.7 104.2 94.7 Machinery........................................ 17.39 96.2 93.1 93.5 100.4 100.6 98.1 95.6 97.8 101.7 102.2 103.4 102.9 107.0 100.3 Nonelectrical machinery........... 9.17 94.3 93.6 92.0 98.6 97.1 95.0 93.7 93.9 99.4 100.2 99.8 100.9 104.8 99.8 Electrical machinery.................. 8.22 98.3 92.6 95.2 102.5 104.4 101.5 97.7 102.1 104.3 104.5 107.4 105.1 109.5 100.8 Transportation equipment........... 9.29 92.9 79.0 84.4 94.8 99.0 95.4 90.3 94.0 97.5 99.0 103.8 101.7 100.7 81.0 Motor vehicles and parts......... 4.56 114.1 88.0 98.0 116.6 124.8 119 110.8 119.1 123.3 123.8 131.8 128.1 125.8 87.6 Aerospace and misc. trans. eq. 4.73 72.5 70.4 71.2 73.8 74.1 71.9 70.6 69.8 72.6 75.0 76.8 76.3 76.6 74.7 Instruments...................................... 2.07 108.5 110.9 111.4 114.9 114.4 111.0 109.2 108.1 111.2 112.3 112.5 116.1 121.8 119.7 Ordnance, private and Govt........ 3.69 86.1 84.3 84.5 84.9 84.7 85.0 84.8 83.7 84.0 87.1 87.3 87.8 89.6 88.6 Lumber, clay, and glass................... 4.44 111.5 111.5 116.7 117.6 118.6 113.5 107.1 105.9 112.3 115.9 118.5 120.4 124.3 118.2 Lumber and products................. 1.65 113.9 113.2 118.5 120.4 122.6 116.2 109.3 111.1 119.5 121.5 122.1 121.8 126.5 120.0 Clay, glass, and stone products. 2.79 110.0 110.5 115.6 115.9 116.3 111.9 105.8 102.8 108.1 112.5 116.3 119.6 123.0 117.1 Furniture and miscellaneous.... 2.90 111.7 106.2 114.6 118.1 117.3 117.5 115.2 111.3 118.4 118.8 119.1 118.1 123.1 114.3 Furniture and fixtures........... 1.38 102.1 91.1 103.5 106.4 104.8 108.6 106.9 106.2 113.7 112.7 111.6 108.7 112.1 100.9 Miscellaneous manufactures. 1.52 120.5 120.0 124.8 128.8 128.7 125.6 122.7 116.0 122.8 124.4 125.9 126.6 133.2 126.6 Nondurable manufactures Textiles, apparel, and leather. 6.90 100.7 90.8 104.4 105.0 107.5 101.3 92.6 100.4 105.4 106.7 109.9 103.9 110.7 95.0 Textile mill products........... 2.69 108.6 97.0 114.5 113.6 113.8 111.0 101.9 106.6 110.3 114.0 115.9 115.8 118.9 103.7 Apparel products................. 3.33 97.8 89.9 100.4 102.4 106.7 98.1 87.7 98.4 105.3 105.0 109.5 98.7 108.9 Leather and products.......... 87.4 75.4 88.1 91.5 83.9 83.0 88.9 90.6 90.4 93.3 87.3 92.7 78-5 Paper and printing............... 7.92 107.8 105.1 111.4 113.3 115.2 112.0 104.9 105.2 109.9 111.2 112.9 114.1 117.5 111.9 Paper and products........ 3.18 115.8 105.5 117.3 115.9 123.0 120.2 110. 120.7 125.9 125.3 128.1 128.5 130.2 118.3 Printing and publishing., 4.74 102.5 104.9 107.5 111.5 109.9 106.5 100.9 94.8 99.2 101.7 102.7 104.4 109.0 107.6 Chemicals, petroleum, and rubber., 11.92 124. 122.3 126.8 130.9 130.1 129.1 125.9 126.0 131.1 132.5 135 138.0 141.3 134.6 Chemicals and products............. 7.86 126.4 125.2 128.7 133.3 131.0 131.3 127.7 126.6 132.0 134.1 138.9 140.7 144.0 138-1 Petroleum products..................... 1.80 115.7 118.9 120.9 118.9 117.8 115.2 116.5 114.4 115.0 113.5 112.1 118.4 121.5 123.0 Rubber and plastics products.., 2.26 126.0 114.9 124.7 131.9 136.7 132.3 126.9 133.0 140.8 142.2 144.1 144.0 147.5 131.5 Foods and tobacco.., 9.48 113.7 112.3 117. 122.9 121.2 116. 110.4 110.8 111.4 112.9 114.2 114.1 120.1 115.6 Foods....................... 8.81 114.9 114.3 118.7 124.1 122.4 118.2 112.8 111.3 111. 113.7 115.3 115.3 121.4 117.8 Tobacco products. .67 97.7 86.2 105.7 106.5 106.1 99.0 78.7 103.6 105.5 102.1 99.4 98.1 103.0 Mining Metal, stone, and earth minerals.. 1.26 104.6 97.2 104.1 104.1 105.8 103.9 100.5 93.1 95.4 98.0 105.3 110.8 110.6 104.6 Metal mining.............................. .51 121.4 106.6 116.9 118.7 117.9 114.8 111 105.8 113.8 114.4 123.5 131.5 131.3 121.4 Stone and earth minerals......... .75 93.2 90.9 95.4 94.2 97.6 96.6 93.1 84.4 82.8 86.8 92.8 96.7 96.6 93.1 Coal, oil, and gas............. 5.11 107.6 104.5 108.8 107.1 95.9 101.3 109.2 107.6 107.9 108.5 109.7 109.7 109.2 106.2 Coal................................ .69 99.8 83.7 117.9 113.9 31.5 56.9 111.7 105.1 99.9 102.7 114.9 107.1 104.8 87.6 Oil and gas extraction. 4.42 108.9 107.8 107.4 106.1 106.0 108.2 108.8 108.0 109.2 109.4 108.9 110.1 109.9 109.1 Utilities Electric. 3.91 138.1 151.3 150.0 150.8 139.9 132.8 136.2 146.6 145.8 143.5 138.5 136.4 144.9 156.2 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 □ SEPTEMBER 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu Prices 4 facturing 2 In Ca Market dustry pacity Con N ri o c n u a l g utiliza- Products tion struc tural Total Period Total Total Final C p o r n o diicts m In ed te ia r te M ri a a t l e s f M a i c a n t n g u u r i o = n ( u 1 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 d m l o e i l t e y Total sumerEquip prod goods ment ucts 1952....................... 92.8 74.1 93.4 54.5 52 79.5 88.6 1953....................... 95.5 76.3 98.2 60.3 54 80.1 87.4 1954....................... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955....................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957....................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958....................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959....................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 I960....................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 '82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963....................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964....................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965....................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966....................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968....................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 1969....................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 1970....................... 106.7 106.0 104.5 110.3 96.3 111.7 107.7 105.2 r78.3 107.3 98.1 114.2 120 116.3 110.4 1971....................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 r75.0 132.0 107.4 94.3 116.9 122 121.2 113.9 1971—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 '74.7 153.0 107.1 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 I 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 j 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 J 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........... 111.2 110.1 108.2 119.6 92.4 117.3 113.1 109.7 j 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 j 167.0 109.7 96.2 128.7 139 124.3 117.5 May.......... 113.2 112.1 110.2 122.2 93.4 119.3 115.6 112.3 \ '77.4 165.0 110.2 96.8 129.4 142 124.7 118.2 June.......... 113.4 112.1 110.3 122.2 93.3 119.3 115.9 112.8 J 154.0 110.3 '97.1 130.7 141 125.0 118.8 July........... 113.7 112.0 110.1 121.8 93.7 119.2 116.5 113.0 155.0 110.2 '96.6 '128.7 143 125.5 119.7 Augp . 114.3 112.3 110.7 122.3 94.6 118.7 117.5 113.6 110.7 97.1 131.3 119.9 1 Employees only: excludes personnel in the Armed Forces. Construction contracts: F. W. Dodge Co. monthly index of dollar 2 Production workers only. value of total construction contracts, including residential, nonresidential, 3 F.R. index based on Census Bureau figures. and heavy engineering; does not include data for Alaska and Hawaii. 4 Prices are not seasonally adjusted. Latest figure is final. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Note.—All series: Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1971 1972 Type of ownership and 1970 1971 type of construction July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction 1............................ 67,097 78,878 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607 7,284 8,100 9,907 8,478 8,067 By type of ownership: Public............................................ 23,362 24,183 2,683 2,299 2,010 1,837 1,960 1,696 2,137 1,634 1,686 1,741 2,574 2,517 2,528 Private 1....................................... 45,058 56,408 4,987 5,413 4,804 4,731 4,445 4,590 4,097 3,973 5,598 6,359 6,524 5,960 5,538 By type of construction: Residential building 1............... 24,910 35,226 3,357 3,255 3,196 3,170 3,001 2,997 2,667 2,664 3,617 3,971 4,428 4,375 Nonresidential building............ 24,180 26,577 2,621 2,120 2,246 2,064 2,128 1.959 1,728 1,799 2,187 2,182 2,908 2,447 Nonbuilding............................... 18,489 20,509 1,691 2,337 1,371 1,332 1,274 1.959 1,840 1,144 1,480 1,947 1,762 1,655 Private housing units authorized'.. 1,324 1,885 2,034 1,997 1,944 1,983 2,051 2,142 2,204 2,056 2,007 1,991 1,995 '2,121 2,082 (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
SEPTEMBER 1972 a 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 Indus Bu C i o ld m in gs Other Other Total M ta i r l y i H w ig ay h d C v e m o a v n & t e e i s n l o e o t n r p Other 2 trial mercial build ings 1 1962 3 ___ 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1963 4___ 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1964 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20,383 910 7,133 1965 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 1966 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 1967 ...... 77,503 51,967 25,568 26.399 6,131 6,982 4.993 8,293 25,536 695 8,591 1968 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1969 93,347 65,384 33,200 32,184 6,783 9,401 4,971 11,029 27,963 879 9,252 1970 94,265 66,147 31,748 34.399 6,538 9,754 5,125 12,982 28,118 719 9,986 197 1 108.968 79,080 42.379 36,701 5,423 11,619 5,437 14,222 1971—July. 109,801 80,328 42,533 37,795 5,428 12,690 5,499 14,178 29,473 1,142 150 Aug. 111,778 81,939 43,795 38,144 4,852 13,069 5,482 14,741 29,839 900 609 Sept. 110,319 81,730 45,027 36,703 4,597 11,702 5,591 14,813 28,573 786 570 Oct.. 114,748 82,905 46,135 36,770 4,993 11,510 5,372 14,895 31,843 881 540 Nov. 115,186 84,764 46,841 37,923 4,885 12,188 5,670 15,180 30,422 938 697 Dec., 117,017 85,989 47,741 38,248 4,914 12,391 5,770 15,173 31,028 918 454 1972—Jan.. 120,763 88,580 49,587 38,993 4,936 13,272 5,734 15,051 32,183 985 943 Feb.. 121,728 90,812 51,907 31,905 4,674 13,247 5,583 15,401 30,916 1,002 804 Mar. 122.968 92,586 53,109 39,477 4,796 13,243 5.993 15,445 30,382 1,186 919 Apr., 120,634 91,686 52,766 38,920 4,649 13,411 5.765 15,095 28,948 965 644 May 122,443 92,622 52,471 40,151 4,723 14,132 5.766 15,530 29,821 980 970 June 121,365 92.821 52,989 39,832 4,944 13,477 5,907 15,323 28,544 1,088 206 July. 121,376 921351 53.380 38,971 4,567 13,123 5,793 15,452 29,025 1,353 468 1 Includes religious, educational, hospital, institutional, and other build 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R .) Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship Region Type of structure ments (N.S.A.) Total N e o a r s t t h C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1963............................ 1,610 261 328 591 431 1,021 5;89 1,642 1,610 32 292 221 71 151 1964............................ 1,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 59 191 1965............................ 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966............................ 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967............................ 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968............................ 1,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 318 1969............................ 1,467 206 349 588 323 810 87 571 1,500 1,467 33 288 237 51 413 1970............................ 1,434 218 294 612 310 813 85 536 1,467 1,434 33 479 418 61 401 1971............................ 2,051 263 434 869 485 1,151 120 780 c2,087 c2,055 c32 c627 c533 c94 c497 1971—July'............... 2,034 312 424 788 510 965 140 929 197 194 3 52 43 9 45 Aug.r............. 1,997 309 422 757 509 910 142 945 206 205 2 55 46 9 50 Sept.r............. 1,944 305 416 761 462 891 141 912 176 174 2 58 50 9 53 Oct.r.............. 1,983 289 414 776 504 908 136 939 182 180 2 47 39 8 50 Nov.r............. 2,051 304 443 796 508 952 133 966 179 176 3 57 48 9 40 Dec.r............. 2,142 305 472 842 523 966 127 1,049 155 152 3 92 85 7 34 1972—Jan.'............... 2,204 376 405 841 582 1,098 143 963 151 149 2 45 37 8 33 Feb.'............. 2,056 303 377 767 609 959 122 975 154 152 1 36 28 8 40 Mar.r............. 2,007 257 364 842 544 954 134 919 206 204 2 49 38 11 49 Apr.r............. 1,991 282 430 820 459 963 152 876 213 212 2 38 29 9 53 Mayr............. 1,955 265 422 752 516 923 149 883 226 224 2 43 34 9 52 Juner............. 2,121 271 419 870 561 989 146 986 223 220 3 43 33 10 55 July................. 2,0S2 280 413 874 515 997 141 944 204 203 1 38 29 9 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 66 EMPLOYMENT □ SEPTEMBER 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 Total E In m c n u p o l l t n o u a y ra g e l r d i 1 In U pl n o e y m ed U (p n e e m r S a r m . e A t c e p n e . 2 l t ) n o t y ; industries agriculture 196 6 .....131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967 3...............................133,319 52,527 80,793 77-, 347 74,372 70,527 3,844 2,975 3.8 196 8 .....135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 .....137,841 53,602 84.240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 .....140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 .....142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1971 _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......................145,854 54,850 88,855 86,467 81,682 78,237 3,445 4,785 5.5 Aug.......................146,069 55,311 89,256 86,860 81,973 78,348 3,625 4,887 5.6 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 i li o r c a n n u & s ti p l i o p ti r u e t b a s Trade Finance Service G m ov e e n r t n 1966............................................................... 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 1967............................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969............................................................... 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 70,616 19,369 622 3,345 4,504 14,922 3,690 11,630 12,535 70,699 18,610 601 3,259 4,481 15,174 3,800 11,917 12,858 SEASONALLY adjusted 1971—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 72,630 18,999 598 3,247 4,539 15,712 3,938 12,379 13,218 July*................................................ 72,592 18,915 597 3,177 4,520 15,716 3,930 12,404 13,333 72,871 18,999 595 3,227 4,524 15,775 3,940 12,442 13,369 not seasonally adjusted 1971—Aug................................................... 70,542 18,651 625 3,509 4,486 15,151 3,865 11,994 12,261 71,184 18,840 623 3,471 4,509 15,242 3,829 11,986 12,684 Oct.................................................... 71,379 18,709 522 3,478 4,455 15,327 3,826 12,020 13,042 71,638 18,693 524 3,410 4,447 15,537 3,836 12,032 13,159 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 71,374 18,653 599 2,974 4,482 15,274 3,867 12,131 13,394 71,928 18,713 597 3,117 4,486 15,460 3,885 12,279 13,391 72,533 18,824 602 3,246 4,521 15,592 3,913 12,401 13,434 73,345 19,142 612 3,406 4,589 15,771 3,969 12,540 13,316 72,407 18,749 613 3,425 4,579 15,690 3,993 12,528 12,830 72,831 19,174 610 3,517 4,583 15,701 4,003 12,492 12,751 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
SEPTEMBER 1972 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1971 1972 1971 1972 Aug. June July* Aug.* Aug. June July* Aug.* 13,371 13,886 13,818 13,892 13,524 14,006 13,616 14,024 Durable goods........................................................................ 7,534 7,899 7,886 7,929 7,514 7,988 7,727 7,888 Ordnance and accessories.......................................... 94 95 96 99 93 94 96 98 Lumber and wood products...................................... 503 524 528 531 521 544 544 550 375 406 410 411 378 406 401 414 Stone, clay, and glass products................................ 497 523 522 522 513 536 534 538 901 971 966 976 905 994 977 980 Fabricated metal products........................................ 1,016 1,054 1,052 1,055 1,013 1,065 1,034 1,052 1,159 1,215 1,214 1,232 1,147 1,227 1,210 1,218 Electrical equipment and supplies........................... 1,167 1,247 1,238 1,233 1,176 1,243 1,220 1,237 Transportation equipment........................................ 1,248 1,257 1,257 1,265 1,189 1,269 1,120 1,184 Instruments and related products........................... 256 273 273 278 257 273 271 279 318 334 330 327 329 336 322 338 5,837 5,987 5,932 5,963 6,010 6,018 5,889 6,136 Food and kindred products...................................... 1,179 1,193 1,183 1,169 1,302 1,185 1,208 1,292 Tobacco manufactures............................................... 56 61 60 57 64 53 53 65 841 874 871 879 846 886 861 885 Apparel and related products................................... 1,180 1,187 1,168 1,187 1,195 1,201 1,125 1,195 Paper and allied products.......................................... 520 541 540 545 527 549 541 552 Printing, publishing, and allied industries............. 658 667 662 666 656 667 659 664 Chemicals and allied products.................................. 577 584 579 582 582 588 581 587 Petroleum refining and related industries............... 115 116 115 115 120 120 120 120 Rubber and misc. plastic products............................ 447 492 488 493 450 493 481 496 Leather and leather products.................................... 264 272 266 276 268 276 263 280 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 Aug. June July* Aug.* Aug. June July* Aug.* Aug. June July* Aug.* Total.........................................*............................... 39.8 40.6 40.6 40.7 141.69 154.63 153.12 154.25 3.56 3.79 3.79 3.79 Durable goods........................................................... 40.0 41.4 41.2 41.2 151.60 168.06 164.42 166.86 3.79 4.04 4.02 4.05 Ordnance and accessories............................. 41.9 42.0 42.5 42.9 161.80 172.60 171.79 173.79 3.88 4.09 4.10 4.07 Lumber and wood products........................ 40.2 41.3 41.1 41.5 129.20 138.78 136.12 139.61 3.19 3.32 3.32 3.34 Furniture and fixtures............................... 39.9 40.9 40.4 40.5 118.78 125.36 121.60 126.28 2.94 3.05 3.04 3.08 Stone, clay, and glass products................... 41.8 42.0 41.9 42.1 157.78 165.39 165.45 168.27 3.73 3.91 3.93 3.95 Primary metal industries.............................. 38.8 41.5 41.2 41.9 166.45 193.53 192.05 197.35 4.29 4.63 4.65 4.71 Fabricated metal products............................ 40.2 41.2 41.2 41.2 151.13 165.17 162.38 164.37 3.75 3.98 3.98 3.98 Machinery........................................................ 40.8 42.1 42.0 42.3 162.01 179.35 175.96 178.07 4.02 4.26 4.24 4.26 Electrical equipment and supplies.............. 40.0 40.5 40.3 40.6 140.00 149.37 146.07 150.22 3.50 3.67 3.67 3.70 Transportation equipment............................ 39.9 42.0 41.5 41.2 171.74 199.13 192.92 192.04 4.37 4.73 4.66 4.73 Instruments and related products............... 39.8 40.6 40.5 40.9 140.58 151.40 149.54 151.81 3.55 3.72 3.72 3.73 Miscellaneous manufacturing industries... 39.2 39.5 39.2 39.0 115.64 122.36 119.27 121.29 2.95 3.09 3.09 3.11 Nondurable goods................................................... 39.3 39.8 39.7 39.7 129.17 137.66 138.50 138.05 3.27 3.45 3.48 3.46 Food and kindred products......................... 40.1 40.6 40.5 40.1 135.94 145.71 146.42 143.26 3.34 3.58 3.58 3.52 Tobacco manufactures.................................. 37.1 34.3 34.6 35.6 119.31 122.50 122.11 119.57 3.19 3.52 3.56 3.34 Textile-mill products...................................... 40.7 41.5 41.1 41.2 104.86 113.42 110.84 112.75 2.57 2.72 2.71 2.73 Apparel and related products..................... 35.7 35.9 35.9 35.9 90.00 93.60 92.62 94.48 2.50 2.60 2.58 2.61 Paper and allied products............................ 42.4 43.0 42.9 43.0 158.53 168.99 170.74 171.54 3.73 3.93 3.98 3.98 Printing, publishing, and allied industries. 37.5 37.9 38.0 38.1 159.47 169.03 170.62 171.97 4.23 4.46 4.49 4.49 Chemicals and allied products..................... 41.5 42.0 41.9 41.8 164.79 176.40 176.40 175.14 3.99 4.20 4.22 4.21 Petroleum refining and related industries . 43.4 42.1 41.8 42.5 195.53 209.88 209.73 208.08 4.59 4.95 4.97 4.99 Rubber and misc. plastic products............. 40.1 41.5 41.0 41.2 139.04 148.57 148.10 150.28 3.45 3.58 3.63 3.63 Leather and leather products....................... 37.6 38.6 38.4 39.2 97.38 105.84 104.25 106.23 2.59 2.70 2.68 2.71 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 □ SEPTEMBER 1972 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur Apparel Trans Period it A em ll s Food Total Rent H o s w o h n m ip e e r F c a o o u n i a e d l l l t e r G a i l n c e a i c d s t y o n i p a n i n e s g h r d s a up a k n e d ep p t o io rt n a Total M c ic a e a r d e l s P c o a e n r r a e l r R e a i c e n n r a g d e d a g O s a o e t n o h rv d d e s r tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1961............................ 89.6 89.1 90.9 92.9 86.9 91.0 99.4 93.7 90.4 90.6 86.7 81.4 90.6 89.3 88.5 1962............................ 90.6 89.9 91.7 94.0 87.9 91.5 99.4 93.8 90.9 92.5 88.4 83.5 92.2 91.3 89.1 1963............................ 91.7 91.2 92.7 95.0 89.0 93.2 99.4 94.6 91.9 93.0 90.0 85.6 93.4 92.8 90.6 1964............................ 92.9 92.4 93.8 95.9 90.8 92.7 99.4 95.0 92.7 94.3 91.8 87.3 94.5 95.0 92.0 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1971—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................. fl 22.1 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 1119.3 123.1 130.0 117.5 119.7 121.8 Sept................ tl22.2 119.1 125.5 116.1 135.1 117.8 115.7 119.4 120.6 t118.6 123.6 130.4 117.6 120.5 122.4 Oct.................. fl22.4 118.9 125.9 116.4 135.7 117.8 115.7 119.5 121.6 fl 19.3 123.5 129.6 117.9 120.5 122.6 Nov................ 122.6 119.0 126.4 116.6 136.7 118.1 116.2 119.5 121.9 118.8 123.7 129.7 117.9 120.8 122.8 Dec................. 123.1 120.3 126.8 116.9 137.0 118.1 118.2 119.6 121.8 118.6 123.9 130.1 117.9 121.1 123.0 1972—Jan.................. 123.2 120.3 127.3 117.1 137.8 118.7 119.0 119.5 120.2 119.0 124.3 130.5 118.1 121.4 123.5 Feb................. 123.8 122.2 127.6 117.5 138.0 118.7 119.4 119.6 120.7 118.3 124.7 131.0 118.4 121.5 124.3 Mar................ 124.0 122.4 127.9 117.7 138.2 118.7 119.7 120.1 121.3 118.4 125.0 131.4 118.7 121.7 124.6 Apr................. 124.3 122.4 128.2 118.1 138.5 118.6 120.2 120.5 121.8 118.6 125.5 131.7 119.1 122.3 125.1 May............... 124.7 122.3 128.5 118.3 138.9 118.7 120.5 120.8 122.5 119.5 125.8 132.0 119.7 122.5 125.4 June............... 125.0 123.0 129.0 118.8 139.6 117.8 120.3 121.0 122.1 '119.8 126.1 132.4 120.0 122.9 125.6 July................. 125.5 124.2 129.5 119.0 140.7 117.7 120.3 121.1 121.1 120.3 126.3 132.7 120.0 123.0 125.8 t Reflects effect of refund of Federal excise tax on new cars. Note.—Bureau of Labor Statistics index for city wage-eamers and clerical workers. 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 s d Total t T e il e t e c x s . , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , R b e u e tc r b . , L b e u e tc m r . , P e a t p c e . r, M e a t l e c s, . t e c M a q e h n u r i a y n d i p F t e u u t r r c e n . , i N t e m m a r o l a i l e 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 t1 n c M e e o l i l u s a s ment 1960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961................................ 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962................................ 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963................................ 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964................................ 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965................................ 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................ 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968................................ 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970................................ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971................................ 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1971— Aug..................... 114.9 113.2 115.4 115.1 109.7 114.4 114.8 104.3 109.8 134.6 110.6 121.1 116.1 110.2 124.2 110.5 113.0 Sept.................... 114.5 110.5 114.6 115.0 109.7 114.7 115.3 104.3 109.7 134.3 110.6 121.1 116.0 110.2 124.2 109.6 113.0 Oct..................... 114.4 111.3 114.1 115.0 109.6 114.7 114.8 104.2 109.5 131.8 110.6 121.0 116.0 110.2 124.1 110.7 113.0 Nov.................... 114.5 112.2 114.4 114.9 109.8 115.1 114.7 103.8 109.5 131.3 110.6 120.9 115.9 110.2 124.0 110.8 113.1 Dec..................... 115.4 115.8 115.9 115.3 110.6 116.2 115.0 103.4 109.4 132.7 110.7 120.8 116.2 110.2 124.2 112.9 113.2 1972—Jan...................... 116.3 117.8 117.2 115.9 111.3 117.8 116.0 103.4 109.5 134.9 110.8 121.4 116.5 110.2 124.3 113.4 113.7 Feb..................... 117.3 120.7 118.8 116.5 112.0 119.1 116.1 103.5 109.2 137.7 111.6 122.6 117.1 110.8 124.6 113.6 114.0 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................... 118.2 122.2 118.6 117.6 113.3 129.5 117.5 104.4 108.8 142.7 113.2 123.6 117.9 111.1 125.9 113.8 114.1 June................... 118.8 124.0 119.6 117.9 113.6 130.9 118.2 104.3 108.9 144.2 113.5 123.6 118.1 111.2 125.8 114.2 114.2 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 Aug..................... 119.9 128.2 121.0 118.5 114.1 134.6 119.7 104.4 109.5 148.1 114.1 123.7 118.3 111.7 126.7 114.2 115.1 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967= 100) 1971 1972 1971 1972 Group Group Aug. June July Aug. Aug. June July Aug. Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 115.9 121.7 129.9 138.9 Pulp, paper and products, excluding Grains....................................................... 92.8 94.5 96.3 99.8 building paper and board............ 110.8 113.8 114.0 114.4 Livestock................................................. 121.3 146.4 152.4 148.1 Woodpulp............................................ 112.4 111.5 111.5 111.5 Live poultry............................................ 100.8 102.9 118.4 106.8 Wastepaper.......................................... 112.8 137.7 137.7 138.9 E P F l l g a u g n id s t . . a m .. n .. i . d . l . k . a . . . . n . . . . . i . . m . . . . . . . . a . . . . l . . . . f . . . . i . . b . . . . . e . . . . . r . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 1 1 3 9 0 . . . 1 4 3 1 1 9 2 2 1 7 1 . . . 9 3 7 1 1 10 2 2 2 2 5 . . . 2 4 0 1 1 9 2 2 9 0 2 . . . 3 6 0 P C P a a o p p n e e v r r e b . r . o . t . e . a . d . r . d .. p . . . a . . . . . p . . . . e . . . . r . . . . . . a . . . . n . . . . . d . . . . . . . p . . . . . a . . . . p . . . . . e . . . . . r . . . b . . . . . o . . . . . a . . . . r . . . . d . . . . . . . . . 1 1 1 1 0 1 0 2 4 . . . 1 8 7 1 1 11 1 0 3 6 6 . . . 5 2 0 1 1 1 0 1 1 6 3 6 . . . 7 7 0 1 1 1 1 1 0 4 6 6 . . . 3 7 0 Hay and seeds........................................ 114.3 116.9 116.8 115.9 Building paper and board................ 104.3 106.6 106.8 107.2 Other farm products............................. 113.9 119.9 121.8 134.6 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 111.4 113.3 113.6 115.3 Meat, poultry, and fish........................ 117.7 131.4 135.8 132.3 Iron and steel....................................... 125.3 128.1 128.3 128.6 Dairy products....................................... 115.4 115.3 117.7 118.6 Steelmill products................................ 128.1 130.4 130.3 130.2 Processed fruits and vegetables.......... 116.2 119.5 119.6 120.2 Nonferrous metals............................... 117.1 117.6 116.8 116.8 Sugar and confectionery...................... 120.5 121.3 122.2 121.3 Metal containers.................................. 124.2 128.8 129.9 130.9 Beverages and beverage materials... 116.1 117.8 117.9 118.9 Hardware............................................... 117.7 120.4 120.5 120.7 Animal fats and oils.............................. 144.0 125.8 124.1 124.0 Plumbing equipment............................ 118.3 119.7 119.7 120.2 Crude vegetable oils.............................. 147.5 112.0 106.9 104.1 Heating equipment.............................. 116.8 118.6 119.0 119.2 Refined vegetable oils........................... 140.7 119.1 115.8 107.5 Fabricated structural metal products 119.6 122.2 122.2 122.5 Vegetable oil end products................. 124.6 121.5 121.4 121.5 Miscellaneous metal products.... 119.8 124.4 124.2 124.7 Miscellaneous processed foods........... 113.8 114-4 114.4 113.9 Manufactured animal feeds................. 104.7 107.7 110.9 111.7 Textile products and apparel: Machinery and equipment: Cotton products.................................... 112.5 122.6 123.0 122.8 Agricultural machinery and equip... 117.5 122.7 122.7 122.8 Wool products....................................... 92.7 99.2 100.0 101.1 Construction machinery and equip.. 121.9 125.9 125.9 126.1 Manmade fiber textile products 103.1 108.6 108.9 108.7 Metalworking machinery and equip 118.1 120.2 120.5 120.8 Apparel.................................................... 113.6 114.4 115.1 115.1 General purpose machinery and Textile housefumishings...................... 104.8 109.5 109.5 109.9 equipment......................................... 120.3 122.7 122.9 123.0 Miscellaneous textile products........... 117.2 125.8 122.6 121.4 Special industry machinery and equipment.......................................... 121.6 123.7 123.9 124.0 Hides, skins, leather, and products: Electrical machinery and equip......... 109.9 110.6 110.7 110.6 Miscellaneous machinery................... 118.0 120.7 120.8 120.8 Hides and skins...................................... 114.6 204.1 212.5 243.0 Leather..................................................... 114.4 138.6 138.1 140.6 Footwear......................*......................... 117.1 125.8 126.5 126.5 Other leather products......................... 108.2 116.7 116.5 118.7 Furniture and household durables: Fuels and related products, and power: Household furniture.......................... 115.5 117.2 117.4 117.8 Commercial furniture........................ 118.2 119.5 119.8 119.8 Coal.......................................................... 182.9 191.2 191.2 191.5 Floor coverings.................................. 97.6 98.6 98.8 98.8 Coke......................................................... 150.5 155.3 155.3 155.3 Household appliances....................... 107.4 107.1 107.3 107.7 Gas fuels................................................... 107.2 112.9 113.2 114.3 Home electronic equipment............. 94.0 92.6 92.4 92.4 Electric power........................................ 115.3 121.5 122.1 122.1 Other household durable goods... 122.1 125.4 126.4 126.8 Crude petroleum.................................... 113.2 113.2 113.2 114.7 Petroleum products, refined............... 107.3 108.5 109.1 110.7 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals.............................. 102.4 101.4 101.5 101.3 Flat glass.............................................. 124.3 121.1 121.8 122.8 Prepared paint........................................ 115.9 118.3 118.3 118.3 Concrete ingredients......................... 124.0 126.8 126.9 128.1 Paint materials....................................... 99.8 103.9 104.2 105.2 Concrete products.............................. 122.8 125.3 126.0 126.1 Drugs and pharmaceuticals................. 102.7 103.1 103.2 103.3 Structural clay products excluding Fats and oils, inedible.......................... 134.2 115.9 113.2 121.4 refractories...................................... 114.9 117.4 117.5 117.5 Agricultural chemicals and products.. 91.0 92.3 91.9 92.0 Refractories......................................... 126.9 127.1 127.1 129.6 Plastic resins and materials................. 89.0 87.9 87.9 88.2 Asphalt roofing.................................. 131.2 131.2 131.2 131.2 Other chemicals and products............ 112.4 113.8 113.3 113.5 Gypsum products.............................. 114.3 113.9 115.7 116.1 Glass containers................................. 131.5 136.2 136.4 136.4 Rubber and plastic products: Other nonmetallic minerals............. 125.7 127.4 127.1 127.1 Rubber and rubber products.............. 113.7 113.3 113.8 114.3 Crude rubber...................................... 99.6 98.6 98.8 98.7 Tires and tubes.................................. 111.4 108.7 109.5 109.7 Transportation equipment: Miscellaneous rubber products___ 119.3 120.8 121.3 122.1 Plastic construction products (Dec. Motor vehicles and equipment. 114.9 118.5 118.4 118.5 1969 = 100).......................................... 94.1 93.5 93.3 93.3 Railroad equipment..................... 122.5 129.6 130.2 130.2 Unsupported plastic film and sheeting (Dec. 1970=100).............................. 100.1 98.1 98.2 98.3 Laminated sheets, high pressure (Dec. 1970=100)............................... 8.6 97.9 98.3 97.9 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition....................................... 112.6 114.4 114.5 114.5 Lumber.................................................... 146.7 159.0 161.6 164.1 Tobacco products................................ 116.8 117.5 117.5 117.5 Millwork................................................. 123.8 128.4 129.6 130.0 Notions................................................... 111.7 111.7 111.7 111.7 Plywood................................................... 120.5 131.7 132.9 135.9 Photographic equipment and supplies 106.3 106.2 106.3 107.0 Other wood products............................ 118.9 123.4 125.6 126.8 Other miscellaneous products........... 112.9 115.2 117.4 117.6 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 a SEPTEMBER 1972 GROSS NATIONAL PRODUCT (In billions of dollars) 1971 1972 Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 II III IV I II 103.1 55.6 124.5 284.8 793.9 864.2 930.3 976.41050.41043.01056.91,078.11,109.11,139.4 101.4 57.2 120.1 278.0 785.7 857.1 922.5 971.51046.71036.41055.61,076.41,108.61,134.4 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 492.1 536.2 579.5 616.8 664.9 660.4 670.7 680.5 696.1 713.4 9.2 3.5 9.6 30.5 73.1 84.0 90.8 90.5 103.5 101.9 106.1 106.1 111.0 113.9 37.7 22.3 42.9 98.1 215.0 230.8 245.9 264.4 278.1 277.2 278.5 283.4 288.3 297.2 30.3 20.1 28.1 62.4 204.0 221.3 242.7 261.8 283.3 281.3 286.1 290.9 296.7 302.4 Gross private domestic investment..................... 16.2 1.4 17.9 54.1 116.6 126.0 139.0 137.1 152.0 153.0 152.2 158.8 168.1 177.0 Fixed investment............................................... 14.5 3.0 13.4 47.3 108.4 118.9 131.1 132.2 148.3 146.4 150.9 157.2 167.7 172.0 10.6 2.4 9.5 27.9 83.3 88.8 98.5 100.9 105.8 105.0 106.3 109.8 116.1 119.2 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 42.0 Producers’ durable equipment.............. 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 77.2 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 52.8 Nonfarm.................................................... 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 52.1 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 5.0 1.8 -1.4 4.0 6.0 7.5 6.9 7.7 4.8 2.4 5.1 -.2 .8 .1 4.3 Net exports of goods and services..................... 1.1 .4 1.3 1.8 5.2 2.5 1.9 3.6 .7 .1 .4 -2.1 -4.6 -5.2 Exports............................................................... 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 Imports............................................................... 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 75.2 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 180.1 199.6 210.0 219.0 232.8 229.5 233.6 240.9 249.4 254.1 Federal............................................................ 1.3 2.0 16.9 18.4 90.7 98.8 98.8 96.5 97.8 96.3 97.9 100.7 105.7 108.1 National defense...................................... 13.8 14.1 12. A 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 89.4 100.8 111.2 122.5 135.0 133.3 135.7 140.2 143.7 146.0 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3j 675.2 706.6 725.6 722.1 741.7 737.9 742.5 754.5 766.5 783.9 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 40.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 923.6 Compensation of employees................................ 51.1 29.5 64.8 154.6 467.2 514.6 566.0 603.8 644.1 639.6 648.0 660.4 682.7 697.8 Wages and salaries........................................... 50.4 29.0 62.1 146.8 423.1 464.9 509.7 541.9 573.5 569.6 576.5 587.3 606.6 620.0 Private............................................................. 45.5 23.9 51.9 124.4 337.3 369.2 405.6 426.8 449.7 447.0 451.6 460.9 475.8 487.1 .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 Supplements to wages and salaries............ .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 A 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 73.2 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 54.4 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 24.2 Corporate profits and inventory valuation 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 87.6 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 93.1 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 40.7 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 52.4 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 26.2 Inventory valuation adjustment.................... .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 Net interest............................................................. 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
SEPTEMBER 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 I Up 103.1 55.6 124.5 284.8 793.9 864.2 930.3 976.4 1050.4 1043.0 1056.91,078.11,109.11,139.4 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 99.7 105.3 Indirect business tax and nontax lia- 7.0 7.1 11.3 23.3 70.4 78.6 85.9 93.4 101.9 100.3 102.6 105.6 106.7 108.7 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 .4 1.5 -.7 -2.7 -6.1 -4.7 -4.8 -4.9 -5.9 -5.2 -4.1 -1.6 Plus: Subsidies less current surplus of gov ernment enterprises.............................. -.1 .1 .2 1.4 .7 1.0 1.5 .9 .8 .3 .7 1.2 1.6 86.8 40.3 104.2 241.1 653.6 711.1 766.0 798.6 855.7 851.4 860.8 876.2 903.1 923.6 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 87.6 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 95.7 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 96.0 227.6 629.3 688.9 750.9 806.3 861.4 858.1 867.9 881.5 907.0 922.1 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 83.0 97.9 116.5 116.7 117.0 115.2 117.5 123.0 136.5 139.5 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 546.3 591.0 634.4 689.5 744.4 742.9 750.4 758.5 770.5 782.6 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 506.0 551.2 596.2 634.7 683.4 678.8 689.4 699.2 714.9 732.5 Personal consumption expenditures. 77.2 45.8 80.6 191.0 492.1 536.2 579.5 616.8 664.9 660.4 670.7 680.5 696.1 713.4 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 .8 .9 1.0 1.0 .9 1.1 1.1 1.0 1.1 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 50.1 Disposable personal income in constant (1958) dollars.................................................................. 150.6 112.2 190.3 249.6 477.5 499.0 513.6 533.2 554.7 554.6 556.5 560.9 565.7 571.4 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July? Total personal income............................ 806.3 861.4 862.4 869.1 872.2 874.8 879.4 890.4 898.9 908.5 913.6 919.4 924.0 922.9 934.2 Wage and salary disbursements........... 541.9 572.9 572.5 577.2 577.9 579.9 583.4 594.3 602.6 609.0 612.4 617.6 619.9 624.0 626.4 Commodity-producing industries.. 201.0 206.1 205.5 205.5 206.9 207.9 208.8 213.1 214.8 217.7 220.1 221.7 222.5 223.5 222.7 Manufacturing only........................ 158.3 160.3 160.0 159.5 160.4 161.3 161.7 165.1 165.8 169.3 171.3 173.3 173.8 175.0 174.8 Distributive industries....................... 129.2 138.2 137.7 139.3 140.2 140.4 140.8 143.8 145.5 148.1 148.0 149.4 149.4 151.4 152.3 Service industries................................ 96.7 105.0 105.7 106.3 106.8 107.5 108.2 109.4 111.2 111.6 112.8 113.9 114.7 115.5 117.2 Government......................................... 115.1 123.5 123.6 126.1 124.0 124.0 125.5 128.0 131.2 131.7 131.5 132.5 133.2 133.6 134.3 Other labor income................................ 32.1 36.5 36.9 37.2 37.5 37.8 38.0 38.3 38.5 38.8 39.1 39.5 39.8 40.1 40.5 Proprietors’ income................................ 66.8 69.9 70.0 70.7 71.3 71.6 71.9 72.0 72.6 73.2 74.2 74.0 74.0 71.6 74.3 Business and professional................. 49.9 52.6 52.8 53.1 53.4 53.6 53.8 53.9 54.0 54.1 54.7 54.9 55.3 53.2 55.7 Farm...................................................... 16.9 17.3 17.2 17.6 17.9 18.0 18.1 18.1 18.6 19.1 19.5 19.1 18.7 18.4 18.6 Rental income......................................... 23.3 24.5 24.7 24.9 24.9 24.9 25.0 25.1 25.1 25.2 25.3 25.5 25.6 21.5 25.8 Dividends................................................. 24.8 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 26.4 Personal interest income....................... 65.8 69.6 69.8 70.2 70.5 70.5 70.6 70.7 70.8 71.0 71.3 72.0 72.7 73.4 73.8 Transfer payments.................................. 79.5 93.6 94.2 94.7 96.1 96.2 96.8 97.6 97.6 100.0 100.1 99.7 100.9 101.3 102.4 Less: Personal contributions for social insurance.......................................... 28.0 31.2 31.2 31.4 31.5 31.6 31.8 32.3 34.3 34.7 34.8 35.0 35.1 35.3 35.5 Nonagricultural income.......................... 782.8 837.2 838.4 844.7 847.6 850.0 854.5 865.0 873.4 882.4 887.1 893.4 898.3 897.5 908.6 Agricultural income................................ 23.5 24.2 24.0 24.4 24.6 24.8 24.9 25.4 25.6 26.0 26.5 26.0 25.8 25.4 25.5 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 □ SEPTEMBER 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 Ql 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 Other residential................... 3.6 3.1 3.6 3.5 4.8 5.9 8.8 4.6 5.1 5.2 6.6 8.6 9.0 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 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 Nonfarm noncorporate................ 5.7 5.5 5.0 5.7 7.4 6.4 10.3 7.6 7.2 5.6 7.4 11.0 9.7 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 Total capital outlays1............... 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 Net funds raised.............................. 58.5 57.3 57.9 71.0 83.3 71.8 104.6 84.9 81.1 71.9 72.1 93.1 115.4 112.6 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 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 Excess net investment3................... 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 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 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 Total capital outlays................. 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 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 -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 TV A. 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
SEPTEMBER 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 Ql 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 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 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. -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.J 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 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 7.3 8 9 Federal Reserve............................... 3.8 3.5 4.8 3.7 4.2 5.0 3.7 4.8 2.8 7.2 8.4 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 8.7 3.9 7.1 11.0 10.8 6.6 .3 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 92.8 106.9 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 -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 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 i 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 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 -6.0 18 Private financial intermediation 19 Credit market funds advanced by pri vate financial institutions.......... 62.5 44.7 62. 75.0 54.0 70.2 105.8 64.1 43.7 54.3 86.1 105.9 105.3 120.9 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 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 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 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 24 Sources of funds.................................... 62.5 44.7 62 75.0 54.0 70.2 105. 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 Other sources.................................. 17.2 20.5 14.0 22.0 34.7 8.0 9.0 45.7 23.6 11.6 4.3 .3 17.6 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................................................. 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. 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 Money.............................................. 7.9 2. 12.2 14.6 7.6 7.7 14.4 1.3 13. 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. 6.2 4.9 -1.3 19.1 27.1 15.2 46 Corporate equities not included above 1 Total net issues..................................... 3.4 4.6 4.9 4.0 10.4 9.3 14.6 8.3 12.6 9.1 9.5 12.9 16.3 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 □ SEPTEMBER 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 Merchandise trade balance 1........................................................ 621 2,164 -2,689 289 -1,012 -472 -1,494 -1,673 2 Exports...................................................................................... 36,417 41,963 42,770 11,017 10,710 11,479 9,564 11,809 3 -35,796 -39,799 -45,459 -10,728 -11,722 -11,951 -11,058 -13,482 4 Military transactions, net.............................................................. -3,344 -3,374 -2,894 -665 -698 -724 -807 -866 5 Travel and transportation, net..................................................... -1,784 -2,061 -2,432 -498 -625 -606 -703 -643 6 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 Balance on goods and services 3............................................................ 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 Foreign securities.................................................................... -1,494 -942 -909 -361 -372 -249 73 -388 23 U.S. securities other than Treasury issues......................... 3,112 2,190 2,282 559 196 606 921 1,066 24 Other, reported by U.S. banks............................................ 477 198 -814 -127 -214 -308 -165 6 25 Other, reported by U.S. nonbanking concerns................. 277 526 124 173 61 -148 38 -117 26 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 31 867 717 180 179 179 179 178 32 Errors and omissions, net............................................................. -2,470 -1,174 -10,927 -944 -2,586 -5,380 -2,018 480 33 -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 -209 -99 -566 -94 32 -392 -112 -518 37 Reported by U.S. nonbanking concerns.................. 371 351 -506 -178 63 -163 -228 -175 38 Liquid liabilities..................................................................... 8,662 -6,240 -6,691 -2,576 -840 -1,996 -1,279 528 39 To foreign commercial banks...................................... 9,166 -6,508 -6,908 -2,928 -892 -1,775 -1,313 438 40 To international and regional organizations............ -63 181 682 280 198 149 55 29 41 To other foreigners........................................................ -441 87 -465 72 -146 -370 -21 61 42 2,702 -9,839 -29,765 -5,425 -6,466 -11,931 -5,948 -3,277 Financed by changes in— 43 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Government.................................................. -162 535 341 -8 -8 —9 366 280 44 Nonliquid liabilities to foreign official agencies reported 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) (5) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 a 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 Balance on goods and services (line 11).......................................... 1,911 3,563 727 1,509 251 -1,330 296 -782 Balance on goods, services, and remittances (line 13)................. 610 2,089 -802 1,174 -131 -1,743 -104 -1,148 Balance on current account (line 15)................................................ -1,035 356 -2,847 709 -655 -2,246 -657 -1,738 Balance on current account and long-term capital 4 (line 26)... -3,011 -3,059 -9,374 -1,262 -3,466 -4,672 23 -3,272 Balances including allocations of SDR’s: Net liquidity (line 33)................................................................... -6,122 -3,851 -22,002 -1,858 -6,612 -10,066 -3,466 -2,365 Official reserve transactions (line 42)........................................ 2,702 -9,839 -29,765 -4,718 -6,462 -12,703 -5,882 -2,548 Balances excluding allocations of SDR’s: Net liquidity................................................................................... -6,122 -4,718 -22,719 -2,575 -6,612 -10,066 -3,466 -3,075 Official reserve transactions........................................................ 2,702 -10,706 -30,482 -5,435 -6,462 -12,703 -5,882 -3,258 1 Adjusted to balance of payments basis; excludes transfers under 3 Equal to net exports of goods and services in national income and military grants, exports under U.S. military agency sales contracts and product accounts of the United States. imports of U.S. military agencies. 4 Includes some short-term U.S. Govt, assets. 2 Includes fees and royalties from U.S. direct investments abroad or 5 Not 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) Trade balance Period 1969 1970 1971 1972 1969 1970 1971 1972 1969 1970 1971 1972 Month: Jan... 32,161 3,406 3,733 4,221 3 2,002 3,223 3,685 4,540 159 183 48 -319 Feb.. 3 2,266 3,547 3,691 3,806 3 2,672 3,278 3,546 4,403 -406 269 145 -598 Mar.. 33,188 3,376 3,815 3,891 3 2,982 3,218 3,568 4,475 206 158 247 -584 Apr.. 33,318 3,409 3,528 3,760 33,183 3,263 3,748 4,460 135 146 -220 -699 May. 3 3,268 3,661 3,776 3,914 3 3,257 3,338 3,988 4,466 11 323 -212 -552 June. 3 3,179 3,730 3,662 3,905 33,152 3,266 4,019 4,495 27 465 -350 -590 July.. 3,182 3,699 3,493 4,019 3,074 3,255 3,793 4,561 108 444 -300 -542 Aug.. 3,366 3,592 3,678 3,163 3,346 3,928 203 246 -251 Sept.. 3.341 3,553 4,505 3.078 3.428 4,237 263 125 268 Oct.., 3.342 3,689 2,710 3,192 3,501 3,523 150 188 -815 Nov.. 3,398 3,499 3,160 3,180 3.428 3,379 218 71 -218 Dec.. 3,280 3,570 3,858 3.078 3,404 4,128 202 166 -270 Quarter: I___ 7,615 10,328 11,239 11,917 7,655 9,719 10,799 13,418 -40 609 440 -1,501 11... 9,765 10,800 10,965 11,579 9,591 9,867 11,747 13,421 174 933 -782 -1,842 111... 9,889 10,845 11,675 9,315 10,029 11,958 574 816 -283 IV... 10,020 10,758 9,726 9,450 10,333 11,030 570 425 -1,304 Year4.. 37,332 42,662 43,555 36,043 39,963 45,602 1,289 2,699 -2,047 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus Note.—Bureau of the Census data. Details may not add to totals be entries into bonded warehouses. cause of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 76 U.S. GOLD TRANSACTIONS □ SEPTEMBER 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 II III IV I II Western Europe: Austria.................................. -82 -55 -100 -25 Belgium................................. -40 -83 -58 -110 -110 France.................................... -5i8 -405 -884 -60i 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 -30 -50 -25 -50 -175 -50 -50 United Kingdom............. ‘329 618 150 -879 -835 Bank for Intl. Settlements. 200 Other..................................... -35 -49 16 -47 11 -29 -13 -6 -22 Total. -399 -1,299 -659 -980 -669 969 -204 -796 -448 -263 Canada ----- 200 150 50 Latin American republics: Argentina ....................... -39 -1 -25 -25 -28 Brazil................................. -3 -1 -23 Colombia.......................... 7 -1 Venezuela......................... Other.................................. -11 -9 -6 -40 -29 -80 -4 Total. 32 56 17 -41 -65 -54 -131 -4 Asia: Iraq................. -10 -4 -21 -42 Japan............... -56 -119 Lebanon......... -11 " -i -95 -35 Malaysia......... -34 -10 -10 Philippines... 25 -1 9 40 -2 -1 -1 Saudi Arabia. -50 Singapore.... -81 11 -30 Other............... -13 -6 -14 -14 -22 -75 -9 -91 21 -1 Total................... 12 3 -24 -86 -366 -213 10 -32 All other.......................... -36 -7 -16 -22 3-166 3-68 -81 -4 Total foreign countries. -392 -36 -1,322 -608 -1,031 -1,118 957 4-631 -845 -445 -296 Intl. Monetary Fund5.. «-225 177 22 -3 10 -156 -22 -11 -4 -544 Grand total......... -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -867 -457 -300 -544 1 Includes purchase from Denmark of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 2 Includes purchase from Kuwait of $25 million. by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 3 Includes sales to Algeria of $150 million in 1967 and $50 million in first withdrawal ($17 million) was made in June 1968 and the last with 1968. drawal ($144 million) was made in Feb. 1972. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Govt, to the IMF. The country data include U.S. gold sales to various countries securities. IMF repurchased $400 million in Sept. 1970 and the remaining in connection with the IMF quota payments. Such U.S. sales to countries $400 million in Feb. 1972. and resales to the United States by the IMF total $548 million each. 6 Payment to the IMF of $259 million increase in U.S. gold subscription 5 Includes IMF gold sales to and purchases from the United States, less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in if needed. Under appropriate conditions, the United States could pur IMF operations. Does not include transactions in gold relating to gold chase additional amounts equal to its quota. deposit or gold investment (see Table 6). 5 Includes $259 million gold subscription to the IMF in June 1965 for 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 amount. 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
SEPTEMBER 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 l2 ld st T o r c e k a 1 sury v c fo C e u c r r r o i e t r e i i e n b s g n l n e p R I o e M s s i i e n t F r i o v 3 n e SDR’s4 E m n o d n t o h f To G ta o l2 ld st T o r c e k a 1 sury v c fo C e c u r r i r o e e t r i s i n e b g 5 n l n e p R o e s s i e t r io v n e SDR’s4 1958. 22,540 20,582 20,534 1,958 1971 1959. 21,504 19,507 19,456 1,997 Aug... 12,128 10,488 10.132 248 574 1.097 1960. 19,359 17,804 17,767 1,555 Sept... 12.131 10,209 10.132 250 577 1.097 Oct... 12,146 10.207 10.132 259 580 1,100 1961. 18,753 16,947 16,889 116 1,690 Nov... 12.131 10.207 10.132 243 582 1,100 1962. 17,220 16,057 15,978 99 1,064 Dec... 8 12,167 10,206 10.132 8 276 585 1,100 1963. 16,843 15,596 15,513 212 1,035 10,206 1964. 16,672 15,471 15,388 432 769 1972 1965. 15,450 613,806 613,733 781 6 863 Jan... 12,879 10,132 276 587 1,810 Feb... 12,330 10,206 9.588 276 582 1,810 1966. 14,882 13,235 13,159 1,321 326 Mar... 12,270 9.662 9.588 212 586 1,810 1967. 14,830 12,065 11,982 2,345 420 Apr... 12,285 9.662 9.588 429 391 1,803 1968. 15,710 10,892 10.367 3,528 1,290 May.. 913,345 9,662 910,410 469 9428 91,958 1969. 7 16,964 11,859 10.367 72,781 2,324 June.. 13,339 910,490 10.410 457 434 1.958 1970. 14,487 11,072 10,732 629 1,935 851 July.. 13,090 10,490 10.410 203 439 1.958 1971. 812,167 10,206 10,132 8 276 585 1,100 Aug... 13,124 10,488 10.410 234 444 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 (end of Deriod) U.S. U.S. transactions with IMF Transactions by reserve other countries position Period with IMF in IMF Per cent P s a u y b m o sc f e r n ip ts s g N a o l e l e d t s T t f i r o o a r n n e s s i g a i n c n I i M nc F i o n m ne e t Purc o h f ases pur R ch e a ses c T h o an ta g l e Amount q U u o . o S f t . a p ( e e r n io d d o ) f 4 t d io o n ll s a r i s n by IMF 1 c c u i r e r s e n 2 dollars dollars3 do i l n lars 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............................................. i,i55 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—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 Aug................................ — 5 —5 6,831 94 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. □ SEPTEMBER 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 institutions2 Liquid Liquid liabilities to Liquid liabili other foreigners liabili ties to Liquid Nonliquid ties to End IMF Liquid non of Total arising liabili mone period from Short NonmarNonmar Long ties Short tary gold term Market ketable ketable term to com term Market inti, trans Total liabili able con noncon liabili mercial liabili able and re actions 1 ties re U.S. vertible vertible ties re banks Total ties re U.S. gional ported Govt. U.S. U.S. ported abroad 6 ported Govt. organi by bonds Treas. Treas. by by bonds zations 8 banks and bonds bonds banks banks and in notes3,4 and and in in notes3,7 U.S. notes notes 5 U.S. U.S. 195 7 9 15,825 200 7,917 (10) 3,472 2,252 (10) 764 195 8 9 16,845 200 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 10 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 4 4 . . 8 8 1 1 8 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 5 4 2 1 5 1961 ii........... \ ( 2 2 2 2 , , 9 8 3 5 6 3 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 3 5 5 5 7 5 5 1 1 6 6 1 1 . .9 9 4 4 8 9 1962 ii.......... / \ 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 20 00 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 ii.......... J \2 2 6 6 , , 3 4 9 33 4 8 8 0 0 0 0 1 14 4 , , 4 45 2 9 5 1 1 2 2 . .4 46 67 7 1 1 , , 1 2 8 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 46 6 3 3 5 4 1 1 1 1 , , 9 96 6 5 0 1964 ii........... / \ 2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 15 5 . , 7 7 8 9 6 0 1 1 3 3 , , 2 2 2 2 4 0 1 1. . 1 1 2 2 5 5 1 1 . . 0 0 7 7 9 9 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 76 6 1 1 . . 7 72 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........... / \ 3 3 1 1 , , 1 0 4 2 5 0 1 1 , , 0 0 1 1 1 1 1 14 4 , , 8 8 4 9 1 6 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 /35,819 1.033 18,201 14,034 908 711 741 1.807 11,209 4,685 4,127 558 691 1967 ii.......... \35,667 1.033 18,194 14,027 908 711 741 1.807 11,085 4,678 4,120 558 677 1968 ii.......... / \ 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 51 1 8 8 2 2 . . 3 3 4 4 1 1 1 1 4 4 . . 4 4 7 7 2 2 4 5 , , 9 0 0 53 9 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 7 2 2 2 5 J45,755 1.019 15,975 11,054 346 i2 555 i22,515 1.505 23,638 4,464 3,939 525 659 1969 ii.......... \45,914 1.019 15,998 11,077 346 555 2,515 1.505 23,645 4,589 4,064 525 663 f47,009 566 23.786 19.333 306 429 3.023 695 17,137 4,676 4,029 647 844 1970—Dec. n \46,960 566 23,775 19.333 295 429 3.023 695 17,169 4,604 4,039 565 846 1971—July... 56,603 544 36,259 26,868 632 5,452 023 284 13,937 4,473 3,894 579 1,390 Aug.. . 63,105 544 43,863 34,015 870 5,785 021 172 12,820 4,382 3,839 543 1,496 Sept... 63,943 544 45,331 35,080 1,015 6.054 021 161 12,435 4,160 3,645 515 1,473 Oct... 65,262 544 46,574 36.067 1,272 6.055 021 159 12,478 4,244 3,734 510 1.422 Nov... 65,746 544 48,339 37,271 1,747 6.055 096 170 11,194 4,214 3,733 481 1,455 /67,681 544 51,209 39.679 1.955 6,060 371 144 10,262 4,138 3,691 447 1,528 Dec. 13 \67,810 544 50,651 39,018 1.955 6.093 3.441 144 10,950 4,141 3,694 447 1,524 1972—Jan.'.. 69,063 544 51,514 39,581 2,260 6.094 3.441 138 11,171 4,153 3,763 390 1,681 Feb.r.. 69.995 52,799 40.679 2,448 6.094 3.441 137 11,373 4,204 3,812 392 1,619 Mar.r. 71,015 53,811 40,985 2,882 6.094 3.723 127 11,464 4,194 3,818 376 1,546 Apr.r. 72,217 54,098 38,728 2,933 8.594 3.723 120 12,433 4,242 3,853 389 1,444 May. . 72,110 53,579 37,850 3,283 8.594 3.723 129 12,821 4,284 3,889 395 1,426 June**. 73.996 54,630 38,632 3,557 8.594 3.723 124 13,409 4,486 4,114 372 1,471 July2*.. 77,466 59,466 39,827 3,781 12,094 3,647 117 12,071 4,507 4,137 370 1.422 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
SEPTEMBER 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 ur e o st p e e r n 1 Canada A re m p L u 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 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—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 '............................................................................... /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972—Jan.'................................................................................... 51,514 30,266 3,974 1,402 14,430 426 1,016 Feb.'.................................................................................. 52,799 31,190 3,981 1,330 14,792 449 1,057 Mar.'................................................................................. 53,811 31,593 4,052 1,323 15,191 457 1,195 Apr.'.................................................................................. 54,098 31,363 4,181 1,492 15,249 477 1,336 May.................................................................................... 53,579 30,935 4,316 1,476 14,967 458 1,427 June*.................................................................................. 54,630 31,910 4,486 1,485 14,589 533 1,627 July*................................................................................... 59,466 36,390 4,446 1,392 14,757 572 1.909 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 T a o n n d o r n e m gi o o n n e a t l a o ry rg i a n n t i e z r a n t a io ti n o s n 6 al Payable in dollars Deposits IMF End of period Total i Total Deposits b T il r l U e s a .S s a u . n r d y s O t h e t o r h m r e t r P r f e o a c n y r i u e c n a r i i b g e l n s e in m g v o e e l n 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 l s O t i h e a t r o b h m r e . t 4 r Demand Time 2 c c e a r t t e if s i 3 liab.4 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—July..................... 46,346 45,693 10,274 4,955 23,439 7,025 653 400 1,247 79 224 170 774 Aug..................... 52,416 51,766 9,294 5,026 30,198 7,248 650 400 1,342 61 202 269 810 Sept..................... 52,878 52,481 10,605 5,054 29,772 7,050 397 400 1,318 92 212 146 867 Oct...................... 53,946 53,566 11,860 5,088 29,758 6,860 380 400 1,267 78 177 168 843 Nov..................... 53,898 53,527 10,883 5,219 30,723 6,702 371 400 1,300 69 205 157 870 Dec.8 '............... / \ 5 5 5 5 , , 4 4 0 3 4 0 5 5 5 5, , 0 0 3 1 8 8 1 6 0 , , 4 3 6 99 0 4 5 , , 2 2 1 09 7 3 3 3 3 , , 0 0 2 2 5 5 1 6 1 , , 3 3 8 3 5 6 3 3 9 8 2 6 4 4 0 0 0 0 1 1, , 3 3 6 7 8 2 7 7 3 3 1 1 9 9 2 2 2 21 10 0 8 8 9 9 6 2 1972—Jan.'................... 56,439 56,007 6,157 4,220 33,902 11,728 432 400 1,524 86 201 338 899 Feb.'................... 57,326 56,853 6,019 4,331 34,490 12,013 473 1,462 85 164 295 918 Mar.'................. 57,656 57,140 5,991 4,428 34,929 11,792 516 1,389 88 186 275 839 Apr.'.................. 56,289 55,795 6,460 4,499 32,324 12,512 494 1,275 87 195 177 817 May.................... 55,825 55,326 6,570 4,650 31,498 12,608 499 1,265 84 183 198 800 June*.................. 57,465 56,948 7,216 4,827 31,871 13,034 517 1,310 85 235 212 779 July*................... 57,295 56,816 7,338 4,743 32,878 11,857 479 1,260 101 259 142 758 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. □ SEPTEMBER 1972 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? 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 l a r s a t . t s e S i a f u s . n i r 3 d y s O l t i h e a t o r h b m r e . t 4 r f r o e c n r i u e c n i r i g e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 d y s O l t h i e a t o r h b m r e t . 4 r c P u f a r o r y r e i e a n n i b c g l i n e es 1969................. 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 19707............... / \4 4 0 0 , , 5 4 4 9 1 9 1 1 5 5 , , 7 71 26 6 5 5 , , 7 8 6 0 5 2 1 13 3. . 5 51 1 1 1 5 5 , , 1 13 3 3 8 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 5 2 2 2 2 . . 5 5 5 54 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 14 4 8 8 1971*—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.* r 5 5 3 3 , , 6 6 3 6 2 2 1 6 0 , , 3 3 8 26 7 4 5 , , 0 0 2 17 5 3 3 2 2 . .4 4 1 1 5 5 1 5 0 , , 4 4 8 4 9 3 3 3 9 8 2 6 3 39 9 , . 0 67 1 9 8 1 1 , , 6 3 2 2 0 7 2 2, , 0 5 3 0 9 4 3 3 2 2 . . 3 3 1 1 1 1 3 3 , , 0 1 8 7 6 6 1 1 5 65 8 1972—Jan.r... 54,515 6,071 4,020 33,164 10,828 432 39,581 1,185 2,024 33,045 3,161 166 Feb.r.. 55,864 5,934 4,167 34,195 11,095 473 40.679 1,099 2,119 34,092 3,202 167 Mar.r.. 56,267 5,903 4,242 34,654 10,952 516 40,985 1,128 2,148 34,548 2,994 167 Apr.r.. 55,014 6,373 4,304 32,147 11,696 494 38,728 1,246 2,270 32,047 2,998 167 May... 54,560 6,486 4,468 31,300 11,808 499 37,850 1,224 2,379 31,209 2,871 167 June*.. 56,155 7,131 4,592 31,659 12,256 517 38,632 1,540 2,469 31,573 2,883 167 July*... 56,035 7,237 4,484 32,736 11,100 479 39,827 1,521 2,377 32,655 3,104 170 To banks1° To other foreigners To banks Payable in dollars and other . foreigners: End of period Total Payable in Total Dema D n e d p osi T ts ime2 T b c i r c l e U 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 i e 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—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 \ f 1 l 4 3, , 9 6 5 4 3 4 1 1 0 0 , , 0 7 3 2 4 2 7 3 , , 0 4 4 0 7 0 8 3 5 2 0 0 8 8 2 6 , , 1 99 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 96 6 2 27 7 1 4 2 2 2 2 8 8 1972—Jan.r. 14,934 10,904 3,183 335 4 7,382 3,763 1,703 1,660 116 285 267 Feb.r 15,185 11,067 3,121 349 4 7.593 3,812 1,714 1,699 99 299 306 Mar.r 15,282 11,115 3,093 359 4 7,658 3,818 1,682 1,735 102 299 349 Apr.. 16,286 12,106 3,372 352 4 8,379 3,853 1,756 1,682 96 318 327 May. 16.710 12,488 3,569 307 3 8,609 3,889 1,693 1,781 88 328 333 June* 17,523 13,059 3,791 310 5 8,953 4,114 1,799 1,813 81 421 350 July*. 16,208 11,762 3,877 286 5 7.594 4,137 1,839 1,820 75 402 309 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” are 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). 9Foreign 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. i o 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
SEPTEMBER 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. Nov. Dec.1 r Jan.r Feb.r Mar.r Apr.r May June* July* Europe: Austria........................................................... 185 246 254 254 261 252 257 276 283 254 261 Belgium-Luxembourg................................. 597 736 701 701 728 779 888 866 864 961 1,159 Denmark....................................................... 189 168 168 168 177 179 191 218 203 215 216 Finland........................................................... 117 134 160 160 156 150 140 151 131 148 176 France............................................................ 2,267 2,858 3,150 3,150 3,234 3,311 3,103 3,043 3,027 3,513 4,324 Germany....................................................... 7,520 5,733 6,596 6,596 6,972 7,724 7,670 5,482 5,500 6,483 6,601 Greece............................................................ 184 175 170 170 167 164 147 163 159 179 168 Italy................................................................ 1,330 1,953 1,888 1,888 1,700 1,693 1,572 1,627 1,572 1,373 1,423 Netherlands................................................... 762 291 271 270 306 424 823 878 861 847 1,488 Norway.......................................................... 324 714 685 685 702 675 674 655 669 654 769 Portugal......................................................... 274 308 303 303 299 282 267 279 284 269 290 Spain............................................................... 198 185 203 203 187 177 183 219 206 231 222 503 757 791 792 803 871 964 981 1,010 1,044 1,036 Switzerland................................................... 1,948 3,265 3,248 3,249 3,256 3,099 2,935 2,942 2,709 2,626 3,623 Turkey........................................................... 46 67 68 68 36 34 42 36 40 44 55 United Kingdom......................................... 5,504 7,711 7,374 7,379 7,908 7,600 8,089 7,954 7,954 7,913 4,941 Yugoslavia..................................................... 37 40 34 34 35 40 54 94 88 90 87 Other Western Europe2............................ 594 1,401 1,369 1,391 1,367 1,438 1,416 1,391 1,388 1,367 1,399 U.S.S.R.......................................................... 15 8 14 14 13 11 9 9 13 10 18 Other Eastern Europe................................ 54 67 53 53 54 46 58 56 58 68 58 Total...................................................... 22,648 26,816 27,503 27,530 28,361 28,951 29,483 27,321 27,021 28,289 28,314 Canada............................................................... 4,056 3,590 3,441 3,441 3,593 3,574 3,486 3,722 4,146 3,966 3,727 Latin America: Argentina....................................................... 539 437 441 441 435 420 541 507 465 459 458 Brazil.............................................................. 346 383 342 342 376 406 449 543 576 628 619 Chile............................................................... 266 189 191 191 180 146 137 132 134 136 136 Colombia....................................................... 247 179 188 188 185 176 163 184 190 190 196 Cuba............................................................... 7 6 6 6 6 6 6 7 6 7 6 Mexico........................................................... 821 706 709 715 758 748 659 668 761 733 786 Panama......................................................... 147 150 154 154 158 156 156 155 185 154 165 Peru................................................................ 225 163 164 164 164 160 174 174 167 179 178 Uruguay......................................................... 118 108 108 108 108 111 124 118 122 117 121 Venezuela....................................................... 735 874 963 963 870 843 740 851 873 919 831 Other Latin American republics.............. 620 615 656 655 645 685 649 695 661 681 671 Bahamas and Bermuda.............................. 745 376 657 656 313 278 307 444 440 484 385 Netherlands Antilles and Surinam.......... 98 85 87 87 97 90 81 87 91 94 88 Other Latin America.................................. 39 46 36 37 43 46 37 29 43 40 47 Total....................................................... 4,952 4,317 4,702 4,708 4,337 4,272 4,223 4,593 4,714 4,820 4,686 Asia: China Mainland.......................................... 33 34 39 39 39 38 39 39 38 39 39 Hong Kong................................................... 258 336 312 312 304 335 306 299 328 311 341 India............................................................... 302 142 89 89 114 118 116 102 104 105 120 Indonesia....................................................... 73 65 63 63 54 71 90 89 87 113 98 Israel............................................................... 135 133 150 150 133 143 143 145 148 139 128 Japan.............................................................. 5,150 13,919 14,294 14,295 14,179 14,950 14,808 14,902 14,017 14,095 13,963 Korea............................................................. 199 216 201 196 224 220 204 178 196 198 205 Philippines..................................................... 285 304 304 306 271 267 268 294 337 346 345 Taiwan........................................................... 275 248 258 258 280 291 320 338 365 383 426 Thailand......................................................... 508 107 126 126 121 116 120 170 174 177 120 Other.............................................................. 717 579 595 595 774 708 717 714 729 706 733 7,936 16,082 16,432 16,429 16,495 17,257 17,131 17,267 16,525 16,612 16,518 Africa: Congo (Kinshasa)........................................ 14 12 12 12 12 13 22 14 16 18 27 Morocco......................................................... 11 9 9 9 10 9 9 11 8 11 11 South Africa................................................. 83 74 78 78 53 73 70 79 70 76 92 U.A.R. (Egypt)............................................ 17 13 24 24 14 13 13 15 18 19 17 Other.............................................................. 395 314 474 474 510 538 526 542 522 608 620 Total....................................................... 521 422 597 597 599 646 640 661 635 731 768 Other countries: Australia........................................................ 389 919 916 916 1,087 1,124 1,257 1,405 1,482 1,692 1,977 All other........................................................ 39 51 42 42 42 41 47 43 39 45 45 Total....................................................... 428 970 957 957 1,129 1,165 1,304 1,448 1,520 1,737 2,022 Total foreign countries.................................. 40,541 52,198 53,632 53,662 54,515 55,864 56,267 55,014 54,560 56,155 56,035 International and regional: International 3............................................... 975 1,269 1,332 1,327 1,475 1,000 941 808 802 817 792 Latin American regional............................ 131 287 298 298 306 316 301 333 329 346 298 Other regional4............................................ 114 144 142 143 142 146 147 134 134 147 170 Total....................................................... 1,220 1,700 1,772 1,768 1,924 1,462 1,389 1,275 1,265 1,310 1,260 Grand total........................................... 41,761 53,898 55,404 55,430 56,439 57,326 57,656 56,289 55,825 57,465 57,295 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. □ SEPTEMBER 1972 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 r r it i L sh a t W in e A st m I e n r d ic ie a s : .................. 38 33 38 32 23 L N So i i b g u e y 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 9 2 1 5 2 2 4 7 2 6 4 ( ( < ‘> ) Sudan.......................................... 1 1 1 1 Other Asia: Tanzania..................................... 18 9 10 6 (7 Afghanistan............................. 15 26 15 19 17 Tunisia........................................ 7 7 6 9 7 Burma....................................... 5 4 3 10 5 Uganda....................................... 7 8 5 3 («) Cambodia................................ 1 2 2 5 2 Zambia....................................... 38 10 14 13 (*) Ceylon...................................... 4 4 4 4 6 Iran........................................... 41 32 50 59 88 All other: Iraq.......................................... 6 11 7 10 (6) New Zealand.............................. 18 25 22 23 27 1 Data in the two columns shown for this date differ because of changes 4 Asian, African, and European regional organizations, except BIS and in reporting coverage. Figures in the first column are comparable in cov European Fund, which are included in “Europe.” erage with those shown for the preceding date; figures in the second column 5 Represent a partial breakdown of the amounts shown in the “other” are comparable with those shown for the following date. categories (except “Other Eastern Europe”). 2 Includes Bank for International Settlements and European Fund. 6 Not available. 3 Data exclude “holdings of dollars” of the International Monetary Fund but include IMF gold investment until Feb. 1972, when investment was terminated. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other Ger United Other Total Other All regional Total institu Banks1 foreign many King Europe Latin Japan Asia other tions ers dom America coun tries 196 8 3,166 777 2,389 2,341 40 2 16 541 658 1,093 80 196 9 2,490 889 1,601 1,505 56 40 * 46 7 239 655 582 70 197 0 1,703 789 914 695 166 53 110 42 26 152 385 137 62 1971—July.. 1,024 501 524 284 189 51 164 19 25 101 83 100 31 Aug.. 895 480 415 172 190 53 164 19 25 80 12 101 14 Sept.. 885 480 405 161 189 55 164 19 24 76 12 99 9 Oct.r. 942 490 452 159 236 57 164 44 24 99 12 101 7 Nov.. 917 452 465 170 237 59 165 45 25 115 96 10 Dec.r 902 446 457 144 257 56 164 52 30 111 87 9 1972—Jan.'. 989 540 449 138 254 58 164 50 30 107 83 14 Feb.r. 1,026 558 468 137 252 79 164 67 31 108 83 14 Mar.r 1,088 632 456 127 253 78 165 67 30 103 72 19 Apr.r 1,106 654 453 120 253 80 165 67 32 105 66 18 May. 1,154 689 465 129 253 83 165 66 35 119 60 20 June® 1,168 695 473 124 267 82 165 66 34 135 58 14 July?. 1,157 690 467 117 269 81 165 68 33 136 47 18 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June* July* Europe: Belgium-Luxembourg....................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Switzerland.......................................... 29 29 29 29 60 60 53 53 53 52 52 52 49 United Kingdom................................ 496 460 432 427 362 323 279 283 268 280 288 264 265 Other Western Europe..................... 25 25 49 71 82 85 95 95 95 95 95 96 98 Eastern Europe.................................. 6 6 5 5 5 5 5 5 5 5 5 5 5 Total............................................ 562 525 521 538 516 480 438 441 426 438 445 424 422 Canada..................................................... 175 175 175 175 179 181 179 179 178 179 166 313 313 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 Japan.................................................... 395 633 755 1,009 1,488 1,717 2,007 2,146 2,391 2,415 2,777 2,901 3,125 Other Asia.......................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................. 425 663 784 1,038 1,518 1,727 2,017 2,156 2,401 2,425 2,787 2,912 3,136 Africa....................................................... 43 43 43 25 8 8 8 8 8 8 8 8 8 All other................................................... * * * * * * * * * * * * * Total foreign countries......................... 1,211 1,413 1,530 1,782 2,228 2,402 2,650 2,791 3,020 3,057 3,413 3,664 3,886 International and regional: International....................................... 115 126 126 126 126 126 126 126 126 136 136 136 136 Latin American regional................. 28 28 29 29 30 30 31 31 32 33 25 26 27 143 154 155 155 156 156 157 157 158 168 161 161 162 Grand total................................ 1,354 1,567 1,685 1,937 2,383 2,558 2,807 2,948 3,177 3,226 3,574 3,825 4,048 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 e m l 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 Total m G an e y r 3 Italy e S r w la it n z d 196 9 43,181 1,431 32 1,129 135 20 100 4 1,750 4 1,084 125 541 197 0 3,563 2,480 32 2.289 25 20 100 1,083 542 541 1971—Aug. 8,924 7.479 32 2.289 5.000 23 20 100 1,444 542 902 Sept. 9,193 7.479 32 2.289 5.000 23 20 100 1,714 542 1,172 Oct.. 9,195 7.479 32 2.289 5.000 23 20 100 1.716 542 1.174 Nov. 9,271 7,554 32 2,365 5.000 22 20 100 1.716 542 1.174 Dec.. 5 9,657 7.829 32 2.640 5.000 22 20 100 5 1,827 612 1.215 1972—Jan.. 9.658 7.829 32 2.640 5.000 22 20 100 1,828 612 1.216 Feb.. 9.658 7.829 32 2.640 5.000 22 20 100 1,828 612 1,216 Mar. 9,940 8,188 32 2.840 5,158 22 20 100 1.752 536 1,216 Apr. 12.440 10,688 32 2.840 7.658 22 20 100 1.752 536 1,216 May 12.441 10,688 32 2.840 7.658 22 20 100 1.753 536 1.217 June 12.441 10,688 32 2.840 7.658 22 20 100 1.753 536 1.217 July. 15.864 14.188 32 2.840 11.158 22 20 100 1.676 459 1.217 Aug. 15.864 14.188 32 2.840 11.158 22 20 100 1.676 459 1.217 1 Includes bonds issued in 1964 to the Government of Canada in connec million equivalent were issued to a group of German commercial banks in tion with transactions under the Columbia River treaty. Amounts out June 1968. The dollar value of these notes was increased by $10 million in standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through Oct. 1969 and by $18 million as of Dec. 31, 1971. Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and 4 Includes an increase in dollar value of $84 million resulting from Oct. 1970 through Oct. 1971, $24 million. revaluation of the German mark in Oct. 1969. 2 Bonds issued to the Government of Italy in connection with mili 5 Includes $106 million increase in dollar value of foreign currency tary purchases in the United States. obligations revalued to reflect market exchange rates as of Dec. 31, 1971. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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. Nov. Dec.1 r Jan.r Feb.r Mar. Apr. May June* July* Europe: 6 10 11 11 8 11 11 12 13 15 16 Belgium-Luxembourg................................ 50 63 57 57 71 102 78 66 72 73 73 40 48 49 49 50 54 55 52 54 52 50 Finland........................................................... 66 116 135 135 137 139 138 137 132 126 124 113 182 267 268 311 344 342 273 295 321 311 Germany....................................................... 186 227 235 235 200 252 258 239 231 315 286 Greece............................................................ 26 23 30 30 30 25 29 28 30 24 25 Italy................................................................ 101 139 159 161 166 182 230 213 231 201 203 Netherlands.................................................. 61 90 105 105 92 102 117 105 101 117 107 Norway.......................................................... 54 66 67 67 72 71 73 72 65 64 71 Portugal........................................................ 11 12 12 12 14 14 14 13 24 21 25 52 68 70 70 83 88 105 135 149 141 156 Sweden........................................................... 97 120 118 118 125 125 130 128 132 95 114 Switzerland................................................... 100 143 145 145 147 181 164 138 193 147 137 Turkey........................................................... 9 3 3 3 4 8 3 3 3 3 3 United Kingdom......................................... 379 536 563 563 526 562 559 537 539 564 756 Yugoslavia.................................................... 35 22 19 19 20 15 25 24 27 25 23 13 11 12 12 13 16 17 17 19 24 23 U.S.S.R.......................................................... 3 10 28 28 33 37 47 70 65 57 62 45 33 37 37 44 48 51 42 43 43 44 Total....................................................... 1,449 1,923 2,122 2,124 2,146 2,374 2,445 2,303 2,417 2,429 2,608 1,043 1,138 1,530 1,530 1,508 1,701 1,942 1,831 1,697 1,737 2,088 Latin America: Argentina....................................................... 326 316 305 305 310 306 316 304 316 325 323 Brazil.............................................................. 325 410 429 435 447 465 482 511 544 551 569 Chile............................................................... 200 142 139 139 126 122 106 108 94 78 77 Colombia....................................................... 284 378 380 380 375 390 376 379 394 404 395 Cuba............................................................... 13 13 13 13 13 13 13 13 13 13 13 Mexico........................................................... 909 839 936 936 1,004 977 1,006 1,095 1,037 1,152 1,173 Panama.......................................................... 112 109 125 125 110 106 116 110 121 125 133 Peru................................................................ 147 201 176 176 163 159 155 163 177 160 157 Uruguay......................................................... 63 39 41 41 41 41 41 38 38 35 38 Venezuela....................................................... 283 249 268 268 271 271 278 311 299 314 333 Other Latin American republics.............. 342 337 374 374 366 364 352 376 359 366 357 Bahamas and Bermuda.............................. 196 264 262 262 253 288 300 278 265 314 375 Netherlands Antilles and Surinam.......... 19 20 18 18 20 23 16 15 16 16 16 Other Latin America.................................. 22 23 25 26 23 21 20 27 24 25 22 Total....................................................... 3,239 3,340 3,490 3,496 3,521 3,547 3,577 3,727 3,697 3,878 3,980 Asia: China Mainland.......................................... 2 1 1 1 1 1 2 2 2 2 2 Hong Kong................................................... 39 71 68 70 61 81 90 99 107 111 100 India............................................................... 13 17 21 21 22 20 17 18 16 16 14 Indonesia....................................................... 56 40 41 41 37 35 37 39 49 45 44 120 132 129 129 124 106 98 84 81 78 101 Japan.............................................................. 3,890 3,889 4,279 4,280 4,131 4,059 4,116 3,980 3,685 3,577 3,542 Korea............................................................. 178 329 348 348 330 394 403 399 377 346 344 Philippines..................................................... 137 129 136 138 141 145 149 137 138 138 143 Taiwan........................................................... 95 94 109 109 123 154 156 172 180 182 178 Thailand........................................................ 109 148 164 173 176 200 201 203 193 188 181 Other.............................................................. 167 226 252 252 237 213 232 210 199 221 245 Total....................................................... 4,807 5,075 5,548 5,561 5,382 5,407 5,502 5,343 5,028 4,903 4,893 Africa: Congo (Kinshasa)........................................ 4 21 21 21 21 14 13 15 18 14 12 Morocco........................................................ 6 4 4 4 4 4 3 4 4 4 4 South Africa................................................. 77 152 156 158 163 166 147 152 161 160 149 U.A.R. (Egypt)............................................ 13 9 10 10 11 13 11 10 11 16 14 Other.............................................................. 79 90 99 99 91 101 104 120 129 123 121 Total....................................................... 180 277 291 292 290 299 278 301 324 318 300 Other countries: Australia........................................................ 64 140 158 158 161 158 165 169 175 176 210 All other........................................................ 16 24 28 28 32 29 35 34 31 34 38 Total....................................................... 80 164 186 186 193 188 200 203 206 211 248 Total foreign countries................................. 10,798 11,917 13,167 13,189 13,039 13,515 13,944 13,709 13,370 13,475 14,117 International and regional............................. 3 4 3 3 3 5 4 3 7 4 3 Grand total.......................................... 10,802 11,920 13,170 13,192 13,043 13,520 13,948 13,712 13,376 13,479 14,120 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
SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c o t i s u a a l ns t B o a — nks1 Others C s t o t 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 a n f c e d o c e e p c e r r s t s t . Other Total w D e i i e t g h p n o e f s r o i s t r s g c F a n o u c o n o v r a r d i m n t e t , i c i e f l g s e i . s e n , 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—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.r................. 11,920 11,276 4,024 169 2,429 1,426 2,306 3,897 1,050 644 457 89 99 Dec.2 r............... / \ 1 1 3 3 , , 1 1 7 9 0 2 1 1 2 2 , , 3 3 5 2 1 8 4 3 , , 5 9 0 7 3 0 2 2 2 2 3 4 2 2 , , 6 0 1 8 3 0 1 1, , 6 6 6 6 6 7 2 2 , , 4 4 7 7 5 5 4 4, , 2 2 4 5 3 4 1 1 , , 1 65 0 2 7 8 84 4 1 2 5 5 4 4 8 9 1 1 1 1 9 9 1 1 7 7 4 4 1972—Jan.'................... 13,043 12,298 3,875 209 2,053 1,613 2,473 4,234 1,716 744 501 139 104 Feb.'................... 13,520 12,733 4,027 198 2,055 1,774 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.................... 13,376 12,616 4,608 169 2,516 1,922 2,541 3,837 1,631 760 530 112 118 June?.................. 13,479 12,721 4,770 163 2,586 2,021 2,650 3,489 1,812 758 477 148 133 July®................... 14,120 13,308 5,068 162 2,796 2,111 2,703 3,227 2,310 811 509 187 115 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 r y r i e r n a i e b g n l n e U K d n i o i n m t g ed E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l ri r es Official Other term cies Total institu Banks1 foreign claims tions ers 1969................... 3,250 2,806 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970................... 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971—July. ... 3,261 2,959 489 253 2,217 282 20 118 530 266 1,277 219 515 337 Aug.r .. 3,393 3,090 523 265 2,302 276 28 120 546 259 1,337 221 539 370 Sept.r .. 3,440 3,121 524 269 2,328 291 28 126 570 264 1,351 225 536 367 Oct.'... 3,494 3,181 542 266 2,373 286 26 127 580 261 1,323 240 565 398 Nov.'.. 3,537 3,237 567 282 2,389 276 23 138 586 244 1,357 240 564 407 Dec.'... 3,661 3,338 575 315 2,448 300 22 130 593 228 1,456 246 582 426 1972—Jan.'... 3,688 3,369 575 311 2,483 295 24 132 581 256 1,457 241 594 427 Feb........ 3,739 3,423 595 324 2,503 292 24 124 592 254 1,475 241 624 430 Mar.... 3,838 3,528 644 329 2,555 284 26 131 605 233 1,496 278 651 444 Apr........ 3,940 3,619 654 335 2,630 295 27 143 625 230 1,540 290 672 440 May.... 4,046 3,724 674 335 2,715 291 30 140 636 251 1,582 281 712 444 June*... 4,193 3,869 712 369 2,788 293 30 139 631 284 1,642 311 739 446 July®... 4,307 3,993 747 372 2,875 282 32 146 672 283 1,721 295 758 432 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1972 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e s Sales c N h s a e a s t l e e p s s u o r r c P ha u s r e s Sales c N ha s e a s t e l e p s s u o r r c P ha u s r e s Sales c N h e s a t a s l e e p s s u o r r regional Total Official Other 1970............................... 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971 T............................. 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,575 -888 1,385 1,434 -49 1972 Jan.-July*........ 1,490 6 1,484 1,561 -77 11,054 9,147 1,907 1,044 1,797 -754 1,504 1,388 117 1971 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 Oct.r................. 252 * 252 257 -5 965 974 -9 163 245 -82 157 104 52 Nov.r................ 446 1 445 474 -29 940 845 94 137 148 -11 137 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 4 197 181 16 May................... 348 -8 356 350 6 1,350 1,111 239 124 310 -186 245 138 107 June*................. 251 1 251 274 -23 1,652 1,407 245 103 332 -229 225 269 -43 July*................. 223 1 222 224 -2 1,134 1,093 41 188 100 88 157 162 -5 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora official institutions of foreign countries; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total m G a e n r y N la e n th d e s rSw la i n tz d er K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1970....................... 626 58 195 128 110 -33 24 482 -9 47 85 1 22 1971r..................... 731 87 131 219 168 -49 71 627 -93 37 108 -2 54 1972—Jan.-July* 784 78 -79 153 320 209 23 704 -94 -51 178 48 1971—Jul y -3 12 -6 15 -10 6 -13 4 -24 2 15 -2 Aug............ 78 10 7 38 24 -33 -7 38 11 12 16 * Sept........... 155 24 33 9 38 11 17 132 10 7 4 2 Oct.r......... -48 8 -4 2 4 -30 * -21 -21 -17 5 7 Nov........... * 9 -9 22 1 -1 20 42 -14 -38 6 4 Dec............ 483 66 51 76 102 68 32 394 2 49 39 -2 1972—Ja...............n 269 36 29 60 98 2 -7 218 1 11 27 12 Feb............ 153 13 4 37 55 36 5 149 -32 10 20 6 Mar........... 177 19 -12 27 56 95 185 -26 3 8 7 Apr............ 78 -9 -22 19 1 46 35 -23 13 49 6 May.......... 55 19 -14 8 27 20 62 -17 -22 30 2 June*...., 31 8 -20 15 27 -2 32 -1 -42 32 9 July*........ 21 -6 -44 -14 56 14 23 4 -25 12 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y N la e n th d e s rSw la i n tz d er K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1970..................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971..................... 684 15 35 -1 197 327 39 612 37 19 -2 * -21 39 1972—Jan.-July*. 1,123 188 2 40 54 212 74 571 56 16 293 * * 187 1971—July___ 40 —2 -1 1 3 20 1 22 -10 3 * * * 24 85 -3 -1 -1 26 49 -3 67 • 1 1 * * 17 Sept........... 94 * -1 • 21 69 -3 86 16 5 * * * -14 Oct............. 40 5 1 * 53 24 2 83 -8 -2 -1 * • -33 94 « 4 -1 42 70 6 122 7 -1 2 * -5 -31 Dec........... — 18 -1 -1 -2 -12 18 -6 -3 -13 • 1 • -3 1972—Jan............. 33 3 2 1 -14 20 38 49 10 -2 3 • * -27 Feb............ 146 -1 -1 -1 -20 102 -11 67 11 -13 51 * * 29 Mar...... 321 5 3 « 29 54 15 106 -3 3 192 * * 23 Apr............ 205 38 3 20 -1 17 -13 63 -1 * 27 • 115 184 40 -3 * -3 71 15 121 11 26 11 * * 14 June* .... 214 95 1 8 21 4 17 148 23 * 8 • 36 July*......... 20 9 -3 12 42 -56 13 16 4 2 1 * * -4 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—Sept.............................. 467 297 1971r............... -937 -310 -627 38 -285 -46 -366 -1 32 434 278 1972— Jan.-July*.. -637 -148 -490 302 -478 -45 -280 -13 23 1970—Mar.............................. 368 220 334 182 1971—July.... -68 7 -75 -16 -6 -2 -53 -1 2 291 203 Aug---- -180 -152 -29 23 -23 -16 -14 1 1 349 281 Sept.... 15 8 6 1 -7 3 8 * 1 Oct.r... -30 32 -63 27 -111 -6 24 1 2 1971—Mar............................... 511 314 Nov.r.. 50 11 39 37 32 -28 5 * 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 June*........................... 312 339 Apr.T.. 20 6 14 65 8 -31 -36 3 5 May... -78 3 -81 75 -143 14 -21 -9 2 June*.. -272 5 -278 26 -195 -15 -94 * * Note.—Data represent the money credit balances and July*... 83 78 5 36 23 3 -60 * 2 money debit balances appearing on the books of reporting brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by 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 $8,295 million and $8,387 million, respectively, on May 31, 1972. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange 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. □ SEPTEMBER 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—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 58,630 5,650 3,341 2,308 51,066 10,416 22,661 1,195 16,795 1,914 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 May........... 64,372 4,619 2,080 2,539 57,943 10,463 27,060 1,275 19,145 1,810 1970—Dec............ 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—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 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 39,130 5,368 3,319 2,049 33,118 6,436 16,690 910 9,082 644 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 May........... 41,932 4,393 2,063 2,330 36,886 6,475 19,574 935 9,902 653 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—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 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 May........... 36,311 2,441 1,282 1,160 33,119 5,209 18,304 585 9,020 750 > Payable in U.S. dollars.......................... 1970—Dec............ 22,574 6,596 15,655 2,223 9,420 4,012 323 1971—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—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 May........... 24,928 2,356 22,195 3,577 14,101 4,517 377 IN THE BAHAMAS S------------- y Total all currencies................................ 1970—Dec............ 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—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.r .... 7,264 1,025 277 798 6,139 3,203 2,936 101 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............ 9,038 1,284 204 1,080 7,643 4,121 3,521 111 May........... 19,094 1,361 195 1,166 7,615 4,181 3,434 117 For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SEPTEMBER 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 50, 2,848 726 2,122 45,891 8,134 25,039 5,216 7,502 1,835 ............1971—May 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 57, 2,915 474 2,441 52,540 9,802 28,520 5,581 8,638 2,041 .........................Oct. 58, 2,870 475 2,395 53,646 10,038 29,350 5,749 8,509 2,113 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 '33,692 '6,331 9,546 2,073 64, 2,980 621 2,358 59,111 10,119 32,651 6,617 9,723 2,081 64, 2,818 562 2,256 59,645 10,055 33,129 6,630 9,830 1,908 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 37, 2.582 643 1,939 33,638 5,469 19,120 4,419 4,630 1,096 ............1971—May 39, 2,293 432 1,861 35,782 5,793 20,610 4,604 4,775 1,068 38, 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, 2,523 375 2,148 37,149 6,479 21,120 4,662 4,888 1,221 42, 2,674 511 2,163 38,139 6,692 22,069 4,426 4,953 1,276 .........................Dec. 41, 2,556 546 2,010 37,642 6,710 '20,862 '4,765 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 44, 2.411 439 1,973 40,751 6,648 23,618 5,152 5,333 1,058 IN UNITED KINGDOM 28, 1.339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 .. .Total, all currencies 29, 1.591 301 1,291 27,667 2,843 16,387 3,873 4,565 694 ............1971—May 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 32, 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 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 36, 1,397 105 1,291 34,090 3,154 19,908 5,158 5,871 824 23, 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 .............1970—Dec. .Payable in U.S. dollars 23, 1,455 266 1,189 21,378 1,902 12,967 3,368 3,142 365 ............1971—May 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 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, 1,377 50 1,327 22,985 2,081 13,670 3,824 3,411 403 .............1972—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 25; 1,202 58 1,144 24,168 2,054 14,610 4,141 3,363 417 IN THE BAHAMAS 4 542 4,183 488 2,872 823 90 .............1970—Dec. .Total, all currencies 5 646 4,633 991 2,744 898 101 ............1971—May 5 446 5,221 1,013 3.095 1,113 93 6 753 5,197 1,126 3,138 933 95 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 7 599 6,510 1,446 3,943 1,121 155 .........................Nov.' 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 9 961 7,922 1,494 5,224 1,204 155 19 812 8,138 1,454 5,353 1,330 144 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. □ SEPTEMBER 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 Apr. May June 1967 1971 1972—Cont. 1.91 1.74 2.37 Mar. 29............... 3,412 Jan. 27. 6,536 7,536 Apr. 5..’. 1,130 Call....................................... 2.10 1.91 2.02 June 28............... 3,166 Feb. 24., 5,666 6,666 12... 1,052 Other liabilities, maturing Sept. 27............... 4,059 Mar. 31., 2,858 4,358 19... 1,279 in following calendar Dec. 27............... 4,241 Apr. 28. 2,158 5,166 26... 1,374 months after report May 26. 1,579 4,587 date: J S D M u e e n a p c r e t . . . 2 2 2 31 5 6 7 . . . . . ( . . . . 1 . . . . . . / . . . 1 1 . . . . . . 9 . . / . . . . 6 6 . . . . . . 9 8 . . . . . . ) . . . 4 6 7 6 , , , , 9 2 0 1 3 2 0 0 9 2 0 4 J J A O N S D u u e c u e o l n p t y c g v e . t . . . . 2 2 2 2 2 2 3 5 8 7 0 9 4 9 . . . . . . . 2 2 1 1 3 1 , , , , , , 4 9 4 4 3 4 9 7 1 9 0 4 9 0 5 7 5 5 2 2 9 4 4 4 3 , , , , 6 0 5 5 4 7 0 7 5 5 8 0 May 2 3 1 1 3 4 1 0 7 . . . . . . . . . . . . . . . 1 1 1 1 1, , , , , 4 5 3 2 5 6 2 9 4 4 5 3 9 0 4 2 6 3 n t r h d d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 2 5 2 5 . . . . . . . 0 1 0 1 3 0 9 0 6 8 6 5 2 0 9 6 2 2 2 3 , . . . . . . 4 4 3 2 4 8 6 8 3 3 3 7 6 4 1 4 4 2 2 2 1 . . . . . . . 6 4 8 9 8 7 1 1 8 3 5 2 2 9 June 7... 1,192 .58 .54 .42 1972 14... 1,525 .51 .41 .54 1969 Jan. 5. 1,208 21... 1,740 .36 r.41 .41 12. 1,721 28. . . 1,442 11th................................. .37 r.39 .45 Mar. 26............... 9,621 19. 1,568 12th................................. .43 .45 .29 June 25............... 13,269 26. 1,419 Maturities of more than 1 S D e e p c t . . 2 3 4 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 12 4 , , 8 3 0 4 5 9 Feb. 1,301 July 1 5 2 . . . . . . . . 1,3 8 7 2 5 4 1.11 1.05 1.12 1,062 19.... 974 1,006 26.... 1,342 34.05 34.32 37.25 1970 1,068 J S D M u e e n a p c r e t . . . 2 2 3 3 5 4 0 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 7 2 1 , , , , 6 6 8 1 6 8 7 7 5 3 6 2 Mar. 2 2 1 2 9 8 5 1 . . . . . , 1 1 1 1 , , , , 2 1 5 3 9 6 6 3 4 5 3 4 2 6 4 Aug. 2 3 1 9 2 3 0 6 . . . . . . . . . . . . . . . 1 1 1 1 1 , , , , , 8 7 8 2 2 2 7 4 5 6 9 8 5 0 2 d t f a h o m e e r N p o o w B o u s t i n a h e t h t i s . c a — t h a o m n I a s d $ n u s 5 c d c 0 l a u h i r m n d e d e d c i s l e t l o p i b o i o f o n n s r a t i r e t l o o s l r r e w o s a m i t t n n - h o b d g e r e s e r a d . o r f i i o r f n e r a g c e l t i l g U b b n r o . a S b r n . r r o c a h w d n e o c i s n l h l g e a in s s r 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 E p n er d i o o d f Deposits U se .S cu . r G it o ie v s t 1 . Ear g m o a ld rked E pe n r d i o o d f 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 U K d n i o n i m t g ed 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—Aug... 122 35,914 13,821 10£Q 2 / \ 1 1 , , 3 4 1 9 9 1 1,0 9 6 5 2 2 1 1 6 1 1 6 1 18 7 3 4 8 76 6 6 66 1 3 0 4 5 6 3 9 4 Sept... 166 36,921 13,819 1,141 697 150 173 121 372 436 Oct... 135 38,207 13,819 Nov. . 177 39,980 13,820 1971—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.......... 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.......... 1,820 1,034 316 245 225 548 845 Aug... 192 51,676 15,530 Mar.r___ 1,982 1,235 266 281 200 653 847 Apr.r___ 1,907 1,273 211 259 164 662 740 May.r. .. 1,990 1,309 223 305 153 698 685 1 Marketable U.S. Treasury bills, certificates of in June........ 1,994 1,342 208 273 170 693 652 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
SEPTEMBER 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.® Mar. June Sept. Dec. Mar.® 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 Finland..................................... 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 28 31 28 17 16 53 40 37 40 35 122 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 3 4 5 16 16 16 28 25 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: Argentina................................. 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 Colombia.................................. 6 6 6 7 7 36 31 40 46 41 Cuba.......................................... * * • * « 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 Uruguay................................... 4 4 4 2 3 7 6 6 5 6 Venezuela................................. 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: Hong Kong.............................. 8 8 9 12 11 19 25 26 24 21 India.......................................... 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 Korea........................................ 11 10 10 13 12 50 54 52 68 56 Philippines............................... 7 7 6 7 9 31 56 43 49 64 Taiwan...................................... 10 11 17 18 23 32 38 43 41 45 Thailand................................... 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: Congo (Kinshasa).................. 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 * * 3 4 4 4 2 Grand total..................... 2,418 2,357 2,532 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. □ SEPTEMBER 1972 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n a la b r l s e P fo a r y i e n a i b g l n e Total P d a o y i l n a la b r l s e Deposits with currencies banks abroad 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 2,936 211 221 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 1,18$ 391 4,014 3,329 358 327 June....................... 1,613 1,263 350 4,023 3,316 429 278 Sept........................ 1,797 1,450 346 3,874 3,222 386 267 ( 1,786 1,399 387 3,710 3,124 221 365 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 2,387 1,843 543 4,457 3,868 234 355 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 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a h e t e r i i i n * ca 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 Tif*n 1 ( 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
SEPTEMBER 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 li ) a (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 23.774 119.302 1970. 2 26.589 111.36 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—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 Aug.. 119.11 4.3470 2.2795 101.789 15.611 14.438 24.020 19.986 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 en an ) 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 e a il n t d h d e s r) 196 8 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 196 9 5 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 197 0 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 197 1 6 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 6 28.650 1971—Aug. 29.277 13.345 243.46 .16157 .28113 32.737 8.0056 28.693 Sept. 29.794 13.401 246.94 .16292 .29583 33.354 8.0056 29.308 Oct.. 30.065 13.349 249.06 .16332 .30202 33.573 8.0056 29.772 Nov. 30.005 13.353 249.33 .16324 .30418 33.627 8.0056 30.006 Dec., 30.593 13.388 252.66 .16652 .31249 34.135 8.0056 30.503 1972—Jan.. 30.956 13.415 257.05 .16923 .31978 34.737 8.0002 31.072 Feb.. 31.390 13.638 260.37 .17036 .32769 35.080 8.0000 31.468 Mar. 31.545 13.716 261.81 .17161 .33054 35.409 8.0000 31.384 Apr., 31.468 13.735 261.02 .17138 .32943 35.406 8.0000 31.142 May, 31.454 13.763 261.24 .17175 .32854 35.446 8.0000 31.124 June, 31.560 13.754 256.91 .17142 .33070 35.475 8.0000 31.296 July , 31.634 13.072 244.47 .17208 .33219 35.918 8.0000 31.424 Aug. 31.382 13.030 245.02 .17203 .33204 36.026 8.0000 31.158 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 t d c h a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r w r l a a i n n tz c d ) ( U p K d o n i o u n i m t n g e d d ) 1968........................................................................................ 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969........................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1970........................................................................................ 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 7 24.325 244.42 1971—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 Aug............................................................................. 119.45 15.335 3.7211 125.28 1.5752 21.160 26.449 245.02 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 □ SEPTEMBER 1972 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Aug. 31, 1971 Rate Country 1971 1972 as of Aug. 31, Per Month 1972 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. 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 5.0 5.0 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...................................... 6.12 Aug. 1971 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 6.0 6.0 Spain......................................... 6.0 Apr. 1971 5.0 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 commercial paper and/or Indonesia—Various rates depending on type of paper, collateral, com govt, securities for commercial banks or brokers. For countries with modity involved, etc.; more than one rate applicable to such discounts or advances, the rate Japan—Penalty rates (exceeding the basic rate shown) for borrowings shown is the one at which it is understood the central bank transacts from the central bank in excess of an individual bank’s quota; the largest proportion of its credit operations. Other rates for some Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of these countries follow: of paper, maturity, collateral, guarantee, etc. Argentina—3 and 5 per cent for certain rural and industrial paper, de Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc pending on type of transaction;; tion, import substitution industries and manufacture of exports; 8 per Brazil—8 per cent for secured paper and 4 per cent for certain agricultural cent for other agricultural, industrial and mining paper; paper; Philippines—6 per cent for financing the production, importation, and dis Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent tribution of rice and corn and 7.75 per cent for credits to enterprises en for loans to make up reserve deficiencies. gaged in export activities. Preferential rates are also granted on credits to Colombia—5 per cent for warehouse receipts covering approved lists of rural banks; and products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi for rediscounts in excess of an individual bank’s quota; per cent for advances against government bonds, and 5 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
SEPTEMBER 1972 □ MONEY RATES; ARBITRAGE A 95 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er Month 3 T m r b e o i a l n s ls t u , h r s y * 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 t k , e hs3 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - C d b r l e a e a p n t a e o r k s i s s n 4 i * t g D m a o d y n a - y e to y - 5 Tr 6 d 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 - y e t y o- 7 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - d P is r r i c a v o t a e u t n e t 197 0 6.12 6.22 8.26 6.70 5.73 5.23 8.67 6.54 8.67 5.97 6.47 5.14 197 1 3.62 3.76 6.41 5.57 4.93 3.84 4.54 6.10 4.34 3.76 5.24 1971—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 5.32 2.75 2.95 1.98 3.03 4.75 June 3.61 3.64 5.86 5.21 3.92 2.93 3.81 2.75 2.65 1.90 1.53 4.75 July. 3.48 3.45 6.82 5.60 4.99 4.18 2.75 2.24 1.09 0.86 4.75 Aug. 3.47 3.54 6.71 5.79 5.13 5.25 0.75 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers’ acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers’ allowance on Note.—For description and back data, see “International Finance,’ deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rate* Date q K ( u U i a b o n U d n a t g j s . i a . S d t 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 d v e f o o a r d n) P d f ( ( p r o i + e - s o r c m w ) u ) o n i a u o o u r d n n r m d t i L n ( o c f N n e 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 t . t i o o n U S n ta i t t e e s d C S ( a f p n a o r v a e f d o a a d r ) C P d f ( ( d o r a i + e - s o n r c m w ) l a ) l o d a i a o u o u r i r n n a s r m d n t i C n ( c a f N e n a o n v a e f t d o t iv a r e ) Canada basis 1972 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 Aug. 4............... 5.71 3.74 1.97 -3.59 -1.62 3.48 3.40 3.74 -.34 -.16 -.50 11............... 5.69 3.77 1.92 -2.91 -.99 3.41 3.34 3.77 -.43 .00 -.43 18............... 5.69 3.80 1.89 -2.08 -.19 3.44 3.36 3.80 -.44 .00 -.44 25............... 5.75 4.07 1.68 -2.40 -.72 3.46 3.38 4.07 -.69 .00 -.69 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 96 GOLD RESERVES □ SEPTEMBER 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—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- 41,185 4.732 10,206 26,250' 192 90 259 729 1,544 46 22 792 47 1972—Jan.. ., 4.732 10,206 192 90 260 729 1,544 46 r21 792 47 Feb... 5.303 9,662 192 90 260 729 1,544 46 21 792 47 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.. "*44]835 5.761 10.490 *28*585 208 283 792 1,682 16 834 July*. 5.761 10.490 208 285 793 1,682 16 834 Ger E pe n r d i o o d f lo C m o b ia m D a e r n k l F a i n n d France m F a e n d y . , Greece India Iran Iraq l I a r n e d Israel Italy Japan Rep. of 1965............................ 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 1966............................ 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967............................ 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 1968............................ 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 1969............................ 26 89 45 3,547 4,079 130 243 158 193 39 46 2,956 413 1970............................ 17 64 29 3,532 3,980 117 243 131 144 16 43 2,887 532 1971---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 47 3,131 801 16 69 53 3,826 4,437 132 264 143 156 17 47 3,131 801 July*............... 16 69 53 3,826 4,437 132 143 156 17 3,131 801 End of Leb Malay Mexi Moroc Nether Nor Paki Philip Portu Saudi period Kuwait anon Libya sia co co lands way stan Peru pines gal Arabia 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—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 40 68 925 127 Apr.................. 89 322 85 58 174 21 1,908 33 55 40 68 925 127 May................ 104 350 93 63 23 2,079 36 60 73 1,004 138 June ............ 98 350 93 63 23 2,079 36 72 1,004 138 July*............. 94 350 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
SEPTEMBER 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 n it m g e d 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 o t 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—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 52 215 460 498 200 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 85 751 156 391 51 347 469 541 217 3,158 87 89 '127 92 816 169 425 56 365 506 541 217 3,158 87 89 '122 92 816 169 425 56 304 July?*................... 543 217 3,158 87 89 122 169 425 56 276 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 p t r i o o d n u c i A So fr u ic th a Ghana C s ( h K o a n i s n g a o ) U 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—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 .4 2.6 3.3 Feb..................... 88.2 6.4 .6 2.5 2.3 Mar.................... 91.8 6.6 .5 2.6 Apr..................... 93.2 7.5 .6 May................... 94.4 6.8 June................... 94.3 6.2 i Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. 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A 98 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher Robert C. Holland, Executive Director J. Charles Partee, Adviser to the Board Robert Solomon, Adviser to the Board Howard H. Hackley, Assistant to the Board Robert L. Cardon, Assistant to the Board Edwin J. Johnson, Assistant to the Board Frank O’Brien, Jr. , Special Assistant to the Board Joseph R. Coyne, Special Assistant to the Board John S. Rippey, Special Assistant to the Board OFFICE OF EXECUTIVE DIRECTOR DIVISION OF RESEARCH AND STATISTICS Robert C. Holland, Executive Director J. Charles Partee, Director David C. Melnicoff, Deputy Executive Stephen H. Axilrod, Associate Director Director Samuel B. Chase, Associate Director Gordon B. Grimwood, Assistant Director and Lyle E. Gramley, Associate Director Program Director for Contingency Planning Peter M. Keir, Adviser Harry J. Halley, Program Director for 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 Louis Weiner, Assistant Adviser Tynan Smith, Secretary Levon H. Garabedian, Assistant Director Murray Altmann, Assistant Secretary Normand R. V. Bernard, Assistant Secretary Arthur L. Broida, Assistant Secretary DIVISION OF INTERNATIONAL FINANCE Elizabeth L. Carmichael, Assistant Ralph C. Bryant, Director Secretary John E. Reynolds, Associate Director Michael A. Greenspan, Assistant Secretary 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 W alter A. Althausen, Assistant Director Frederick R. Dahl, Assistant Director Donald G. Barnes, Assistant Director Jack M. Egertson, Assistant Director Harry A. Guinter, Assistant Director John P. Flaherty, Assistant Director P. D. Ring, Assistant Director Janet O. Hart, Assistant Director James L. Vining, Assistant Director John N. Lyon, Assistant Director Charles C. W alcutt, Assistant Director John T. McClintock, Assistant Director 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 99 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 W alter 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 100 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 TT A „ 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. Clausen, twelfth federal reserve district, President G. Morris Dorrance, Jr., third federal reserve district, Vice President James F. English, first federal Gaylord Freeman, seventh federal reserve district reserve district David Rockefeller, second David H. Morey, eighth federal federal reserve district reserve district John S. Fangboner, fourth federal Chester C. Lind, ninth federal reserve district reserve district Joseph W. Barr, fifth federal Morris F. Miller, tenth federal reserve district reserve district Harry Hood Bassett, sixth federal Lewis H. Bond, eleventh federal reserve district reserve district Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 101 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch Boston ......................... 02106 James S. Duesenberry Frank E. Morris Louis W. Cabot Earle O. Latham New York................... 10045 Roswell L. Gilpatric Alfred Hayes Ellison L. Hazard William F. Treiber Buffalo........................14240 Morton Adams A. A. Maclnnes, Jr. Philadelphia ............ 19101 Bayard L. England David P. Eastburn John R. Coleman Mark H. Willes Cleveland .................. 44101 Albert G. Clay Willis J. Winn J. Ward Keener Walter H. MacDonald Cincinnati ............. 45201 Graham E. Marx Fred O. Kiel Pittsburgh ............. 15230 Lawrence E. Walkley James H. Campbell Richmond.........................23261 Robert W. Lawson, Jr. Aubrey N. Heflin Stuart Shumate Robert P. Black Baltimore......................21203 John H. Fetting, Jr. H. Lee Boatwright, III Charlotte........................28201 Charles W. DeBell Jimmie R. Monhollon Culpeper Communications J. Gordon Dickerson, Jr. Center........................22701 Atlanta ....................... 30303 John C. Wilson Monroe Kimbrel H. G. Pattillo Kyle K. Fossum Birmingham.......... 35202 David Mathews 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 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. Sandstrom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 102 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 103 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; 10 or more sent to one address, $.20. THE RELATIVE IMPORTANCE OF MONETARY AND FISCAL VARIABLES IN DETERMINING PRICE LEVEL JOINT TREASURY-FEDERAL RESERVE STUDY OF MOVEMENTS: A NOTE, by Peter S. Rose and Lacy THE GOVERNMENT SECURITIES MARKET: STAFF H. Hunt II. June 1971. 7 pp. STUDIES—PART 1 (papers by Cooper, Bernard, and Scherer). 1970. 86 pp. $.50 a copy; 10 or ESTIMATION OF THE INVESTMENT AND PRICE more sent to one address, $.40 each. PART 2 EQUATIONS OF A MACROECONOMETRIC MODEL, (papers by Ettin, Peskin, and Ahearn and Pes by Robert J. Shiller. June 1971. 65 pp. kin). 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 (Limited supplies, in mimeographed or simi Joseph Bisignano. July 1971. 108 pp. lar form, of staff papers others than those contained in Parts 1 and 2 are available upon A TEST OF THE “EXPECTATIONS HYPOTHESIS” request for single copies. See p. 48 of main USING DIRECTLY OBSERVED WAGE AND PRICE report for a list of such papers.) EXPECTATIONS, by Stephen J. Turnovsky and Michael L. Wachter. Aug. 1971. 25 pp. OPEN MARKET POLICIES AND OPERATING PROCE DURES—-STAFF STUDIES (papers by Axilrod, MORTGAGE REPAYMENTS AS A SOURCE OF Davis, Andersen, Kareken et al., Pierce, Fried LOANABLE FUNDS, by Robert Moore Fisher. man, and Poole). 1971. 218 pp. $2.00 a copy; Aug. 1971. 43 pp. 10 or more sent to one address, $1.75 each. THE USE OF INTEREST RATE POLICIES AS A STIMU REAPPRAISAL OF THE FEDERAL RESERVE DIS LUS TO ECONOMIC GROWTH, by Robert F. COUNT MECHANISM, Vol. 1 (papers by Steering Emery. Sept. 1971. 37 pp. Committee, Shull, Anderson, and Garvy). 1971. 276 pp. Vol. 2 (papers by Boulding, Chandler, PRIVATE HOUSING COMPLETIONS—A NEW DIMEN Jones, Ormsby, Modigliani, Alperstein, Meli- SION IN CONSTRUCTION STATISTICS, by Bernard N. Freedman. Jan. 1972. 20 pp. char, and Melichar and Doll). 1971. 173 pp. Vol. 3 (papers by Staats, Willis, Minsky, POLICY VARIABLES, UNEMPLOYMENT AND PRICE Stackhouse, Meek, Holland and Garvy, and LEVEL CHANGES, by Peter S. Rose and Lacy H. Lynn). 1972. 214 pp. Each volume $3.00 a Hunt II. Jan. 1972. 11 pp. copy; 10 or more sent to one address, $2.50 each. OPTIMAL DISTRIBUTED LAG RESPONSES AND EX A limited supply of the following mimeo PECTATIONS, by Roger Craine. Feb. 1972. 9 pp. 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 INTERNATIONAL MONEY MARKETS AND FLEXIBLE pp. 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 104 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 Printed ini 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 REPRINTS MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. ADJUSTMENT FOR SEASONAL VARIATION. June U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1941. 11 pp. 1960-67. Apr. 1968. 23 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. MONETARY RESTRAINT AND BORROWING AND Feb. 1958. 12 pp. CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by 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 105 BANK FINANCING OF MOBILE HOMES. Mar. 1971. ASSETS AND LIABILITIES OF FOREIGN BRANCHES 4 pp. OF U.S. BANKS. Feb. 1972. 16 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS WAYS TO MODERATE FLUCTUATIONS IN THE CON TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 STRUCTION OF HOUSING. Mar. 1972. 11 pp. pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT INTEREST RATES, CREDIT FLOWS, AND MONETARY POSITION. Apr. 1972. 15 pp. AGGREGATES SINCE 1964. June 1971. 16 pp. OPEN MARKET OPERATIONS AND THE MONETARY AND CREDIT AGGREGATES—1971. Apr. 1972. 23 TWO KEY ISSUES OF MONETARY POLICY. June pp. 1971. 4 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1972. 5 pp. 1971. 12 pp. CONSTRUCTION LOANS AT COMMERCIAL BANKS. BANK RATES ON BUSINESS LOANS—REVISED June 1972. 12 pp. SERIES. June 1971. 10 pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY INDUSTRIAL PRODUCTION—REVISED AND NEW REFORM. June 1972. 5 pp. MEASURES. July 1971. 26 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK BANKING AND MONETARY STATISTICS, 1970. Se DIRECTORS. June 1972. 10 pp. lected series of banking and monetary statistics for 1970 only. Feb., Mar., and July 1971. 19 CHANGES IN TIME AND SAVINGS DEPOSITS AT pp. COMMERCIAL BANKS, JANUARY-APRIL 1972. July 1972. 11 pp. REVISED MEASURES OF MANUFACTURING CAPAC ITY UTILIZATION. Oct. 1971. 3 pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN OVER-REVISED SERIES. July 1972. 5 pp. REVISION OF THE MONEY STOCK. Nov. 1971. 14 pp. RECENT REGULATORY CHANGES IN RESERVE RE QUIREMENTS AND CHECK COLLECTION. July BALANCE OF PAYMENTS PROGRAM: REVISED 1972. 5 pp. GUIDELINES FOR BANKS AND NONBANK FINAN CIAL INSTITUTIONS. Nov. 1971. 11 pp. FINANCIAL DEVELOPMENTS IN THE SECOND QUARTER OF 1972. August 1972. 9 pp. REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX CHANGE OPERATIONS. Sept. 1972. 26 pp. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. Dec. 1971. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 11 pp. Sept. 1972. 2 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 79-A hguorht 4-A segap ot era secnerefeR( A 106 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1972 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 14, 33, 35 Demands deposits—Continued Agricultural loans of commercial banks, 24, 26 Ownership by individuals, partnerships, and Arbitrage, 95 corporations, 32 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 18 Banks, by classes, 20, 24, 25, 26, 39 Turnover, 15 Banks and the monetary system, 19 Deposits (See also specific types of deposits): Corporate, current. 50 Accumulated at commercial banks for payment of per Federal Reserve Banks, 12 sonal loans, 32 Automobiles: Adjusted, and currency, 19 Consumer instalment credit, 56, 57, 58 Banks, by classes, 11, 20, 25, 29, 39 Production index, 60, 61 Euro-dollars, 90 Federal Reserve Banks, 12, 90 Postal savings, 19, 25 Subject to reserve requirements, 18 Bank credit proxy, 18 Discount rates (See Interest rates) Bankers’ balances, 25, 28 Discounts and advances by Reserve Banks (See Loans) (See also Foreigners, claims on, and liabilities to) Dividends, corporate, 50 Banks and the monetary system, 19 Dollar assets, foreign, 77, 83 Banks for cooperatives, 40 Bonds (See also U.S. Govt, securities): New issues, 47, 48, 49 Yields and prices, 36, 37 Earnings and hours, manufacturing industries, 67 Branch banks, foreign, 30, 88, 89, 90 Employment, 64, 66, 67 Brokerage balances, 87 Euro-dollar deposits in foreign branches of U.S. banks, 90 Business expenditures on new plant and equipment, 50 Business indexes, 64 Business loans (See Commercial and industrial loans) Farm mortgage loans, 51, 52 Federal agency obligations, 12, 13, 14, 15 Federal finance: Capacity utilization, 64 Cash transactions, 42 Capital accounts: Receipts and expenditures, 43 Banks, by classes, 20, 25, 30 Treasury operating balance, 42 Federal Reserve Banks, 12 Federal funds, 8, 24, 26, 30, 35 Central banks, 94, 96 Federal home loan banks, 40, 41, 53 Certificates of deposit, 30 Federal Home Loan Mortgage Corporation, 55 Coins, circulation, 16 Federal Housing Administration, 51, 52, 53, 54, 55 Commercial and industrial loans: Federal intermediate credit banks, 40, 41 Commercial banks, 18, 24, 33 Federal land banks, 40, 41 Weekly reporting banks, 26, 31 Federal National Mortgage Assn., 40, 41, 54 Commercial banks: Federal Reserve Banks: Assets and liabilities, 18, 20, 24, 25, 26 Condition statement, 12 Consumer loans held, by type, 57 U.S. Govt, securities held, 4, 12, 15, 44, 45 Deposits at, for payment of personal loans, 32 Federal Reserve credit, 4, 6, 12, 15 Loans sold outright, 33 Federal Reserve notes, 12, 16 Number, by classes, 20 Federally sponsored credit agencies, 40, 41 Real estate mortgages held, by type, 52 Finance companies: Commercial paper, 33., 35 Loans, 26, 56, 57, 59 Condition statements (See Assets and liabilities) Paper, 33, 35 Construction, 64, 65 Financial institutions, loans to, 24, 26 Consumer credit: Float, 4 Instalment credit, 56, 57, 58, 59 Flow of funds, 72 Noninstalment credit, by holder, 57 Foreign: Consumer price indexes, 64, 68 Currency operations, 12, 14, 77, 83 Consumption expenditures, 70, 71 Deposits in U.S. banks, 5, 12, 19, 25, 29, 90 Corporations: Exchange rates, 93 Profits, taxes, and dividends, 50 Trade, 75 Security issues, 48, 49 Foreigners: Security yields and prices, 36, 37 Claims on, 84, 85, 90, 91, 92 Cost of living (See Consumer price indexes) Liabilities to, 30, 78, 79, 81, 82, 83, 90, 91, 92 Currency and coin, 5, 10, 25 Currency in circulation, 5, 16, 17 Customer credit, stock market, 38 Gold: Certificates, 12, 13, 16 Earmarked, 90 Debits to deposit accounts, 15 Net purchases by United States, 76 Debt (See specific types of debt or securities) Production, 97 Demand deposits: Reserves of central banks and govts., 96 Adjusted, banks and the monetary system, 19 Stock, 4, 19, 77 Adjusted, commercial banks, 15, 18, 25 Government National Mortgage Assn., 54 Banks, by classes, 11, 20, 25, 29 Gross national product, 70, 71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 107 Hours and earnings, manufacturing industries, 67 Production, 60-63, 64 Housing permits, 64 Profits, corporate, 50 Housing starts, 65 Real estate loans: Income, national and personal, 70, 71 Banks, by classes, 24, 27, 39, 52 Industrial production index, 60-63, 64 Delinquency rates on home mortgages, 55 Instalment loans, 56, 57, 58, 59 Mortgage yields, 53, 54, 55 Insurance companies, 39, 44, 45, 52, 53 Type of holder and property mortgaged, 51-55 Insured commercial banks, 22, 24, 32 Reserve position, basic, member banks, 8 Interbank deposits, 11, 20, 25 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, 6, 87 New issues, 47, 48, 49 Silver coin, 16 Labor force, 66 Special Drawing Rights, 4, 12, 13, 19, 74, 77 Loans (See also specific types of loans): State and local govts.: Banks, by classes, 20, 24, 26, 27, 39 Deposits, 25, 29 Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34 Holdings of U.S. Govt, securities, 44, 45 Federal Reserve Banks, 4, 6, 9, 12, 13, 15 New security issues, 47, 48 Insurance companies, 39, 52, 53 Ownership of securities of, 24, 28, 39 Insured or guaranteed by U.S., 51, 52, 53, 54, 55 Yields and prices of securities, 36, 37 Savings and loan assns., 40, 53 State member banks, 22, 32 Stock market credit, 38 Manufacturers: Stocks: Capacity utilization, 64 New issues, 48, 49 Production index, 61, 64 Yields and prices, 36, 37 Margin requirements, 10 Member banks: Tax receipts, Federal, 43 Assets and liabilities, by classes, 20, 24 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 osition, 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 Dealer transactions, positions, and financing, 46 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 National banks, 22, 32 Foreign and international holdings, 12, 83, 86, 90 National income, 70, 71 International transactions, 83, 86 National defense expenditures, 43, 70 New issues, gross proceeds, 48 Nonmember banks, 22, 24, 25, 32 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Ownership, 44, 45 Open market transactions, 14 Yields and prices, 36, 37 United States notes, 16 Payrolls, manufacturing index, 64 Utilities, production index, 61, 63 Personal income, 71 Postal savings, 19, 25 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 79-A hguorht 4-A segap ot era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1972, August 31). Federal Reserve Bulletin, 1972-09. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197209
@misc{wtfs_bulletin_197209,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1972-09},
year = {1972},
month = {Aug},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197209},
note = {Retrieved via When the Fed Speaks corpus}
}