Federal Reserve Bulletin, 1973-03

F e d e r a l R e s e r v e B ulletin BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 MARCH 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 3 □ VOLUME 59 □ MARCH 1973 129 Recent Price Developments 140 Staff Economic Studies: Summary 142 Treasury and Federal Reserve Foreign Exchange Operations 164 Statements to Congress 179 Law Department 226 Directors of Federal Reserve Banks and Branches 240 Announcements 241 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 116 Board of Governors and Staff A 118 Open Market Committee and Staff; Federal Advisory Council A 119 Federal Reserve Banks and Branches A 120 Federal Reserve Board Publications A 124 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Robert C. Holland Joseph R. Coyne 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

R e c e n t P r ic e D e v e lo p m e n ts Price increases accelerated in the opening months of 1973 after more than a year of reduced inflation. Extremely large advances in food prices have contributed disproportionately to the faster rise in both the retail and the wholesale indexes. However, wholesale prices of industrial commodities have also begun to rise more briskly, particularly those of materials and fuels. Although con­ sumer prices have shown less acceleration, the advance in February was the sharpest in many years. This reflected mainly rises in food prices but appreciable increases also occurred among other com­ modities and services. The slower rate of price rise in 1972 reflected economic condi­ tions as well as the Phase II stabilization program. The inflationary climate had cooled somewhat in response to a prolonged period in which manpower and industrial capacity were substantially in excess of demands. Moderate demand in some markets in 1972, coupled with controls, inhibited price increases for many products. Increases in compensation per manhour were reduced by adherence to the wage guidelines and by the fact that there were fewer large collective bargaining settlements than in the two previous years. Since at the same time there was a strong cyclical upturn in activity that led to rapid gains in output per manhour, the rise in unit labor costs moderated. Reduced cost pressures, particularly among highly fabricated materials and finished goods, helped to limit price rises. The extent of the improvement in over-all price performance of the private economy in 1972 is shown by the rise in the fixed-weight index for the gross private product, including both consumption and investment. Growth in this index slowed to an annual rate of 3 per cent in the second half of last year from 5 per cent in the first half of 1971 preceding the price freeze. However, trends in farm and food prices partially offset the improvement in other sectors of the private economy last year and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 FEDERAL RESERVE BULLETIN □ MARCH 1973 1 PRICE INCREASES moderated in 1972 CHANGE FROM PREVIOUS QUARTER, PER CENT GROSS PRIVATE PRODUCT PERSONAL CONSUMPTION SERVICES EXPENDITURES ■ — nl 1971 1972 1971 1972 1971 1972 1967 expenditure weights. Seasonally adjusted Commerce Dept, data at annual rates. Latest figures, Q4. in recent months; in fact, the wholesale price index rose faster in 1972 than in the period immediately preceding the stabilization program, despite a better record in the industrial sector. In the consumer price index, increases in food prices have also offset a decline in the rate of price advance for services and nonfood commodities since November 1971. In January the President announced some important changes in the stabilization program. The new program—referred to as Phase III—was intended to maintain, with some modifications, the basic price and wage standards of Phase II. THE ECONOMIC Economic growth during Phase II was vigorous. In the second half CLIMATE of 1972 real gross national product rose at a rate of about 7.5 per cent and the pace has continued rapid so far this year. Industrial production also rose substantially further in January and February. Consumer demand is growing as income and employment expand, and plans to invest in plant and equipment indicate that business expenditures this year may rise 14 per cent compared with the 9 per cent gain in 1972. Housing starts are expected to drop from GNP AND INDUSTRIAL PRODUCTION recent peak rates, but in January and February they were still at a very advanced level. Although inventory investment was stepped up last year, stocks are still low relative to final sales. With these rapid gains, economic activity has moved closer to its potential. The unemployment rate dropped to 5 per cent late last year, and bottlenecks in skilled labor and in materials, trans­ portation, and plant capacity are appearing in some industries and areas. Thus, further expansion in real output this year is likely to be accompanied by a faster rise in unit costs than in 1972. Higher rates of industrial activity abroad also contribute to the advance in prices in this country. Price and wage increases in other Constant dollars = 1958 prices. GNP: major industrial countries have accelerated to rates above those Commerce Dept, data; latest figures, in the United States, and international demands for metals and other Q4. Industrial production: FR data; latest figures, January preliminary raw materials have intensified. Recently, moreover, the adjustments and February estimated. Seasonally adjusted. in international currencies have caused some prices to rise. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 131 OBJECTIVES OF Phase II, initiated in November 1971, was designed to relax the PHASE II freeze, which began in mid-August, in a manner that would allow necessary readjustments in prices and wages without permitting the resumption of earlier rates of inflation. A wage guideline limiting increases to 5.5 per cent in 1972 was established—6.2 per cent including fringe benefits. Since productivity per manhour was expected to rise 3 per cent or more during 1972, the rise in unit costs of production was anticipated to be about 2 to 3 per cent. Therefore, the target of reducing price increases to 2 to 3 per cent by the end of last year was consistent with an increase in real wages. Profits were also expected to rise since, in general, business was permitted to increase prices to cover increases in labor and other costs and the usual margin or mark-up. Only if profit margins exceeded the average of the best 2 of the 3 fiscal years preceding the August freeze was cost-absorption required. The rate of wage increase did decline under this program. Although a number of large wage settlements reflecting “catch­ ups” followed the end of the freeze and wage rate increases accelerated again late in 1972, for the year as a whole such increases were close to the guidelines. Including fringe benefits and the rise in the employers’ payroll taxes, hourly compensation of employees in the private economy rose about 6.5 per cent from 1971 to 1972. The rise in costs of production last year was substantially reduced by a rapid increase in output per manhour—4.7 per cent in the private nonfarm economy—as well as by the more moderate wage advance. TABLE 1 INCREASES IN LABOR COSTS—PRIVATE NONFARM ECONOMY Change from previous period, per cent Output Compensation Period per per Unit manhour manhour labor costs 1969 ................................................... -.4 7.0 7.2 1970 ................................................... .6 7.2 6.6 1971 ................................................... 3.6 7.1 3.4 1972 ................................................... 4.7 6.5 1.7 Source—Dept, of Labor. PRICES IN In view of the complexity of influences affecting prices, it is PHASE II difficult to distinguish the impact of the freeze and Phase II in slowing inflation from that of market forces. Nevertheless, it is evident that controls had more impact on prices of finished goods than on those of materials and that they were associated with a dramatic slowing of the inflationary rise in the cost of consumer services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 FEDERAL RESERVE BULLETIN □ MARCH 1973 Among consumer goods, Price Commission decisions had a significant effect on prices of durable commodities, especially in retarding the advance for passenger cars. Lower prices for automo­ biles, following the removal of the manufacturers’ excise tax in 1971, along with the cyclical recovery spurred a sizable rise in automobile makers’ sales and profits last year. Since profits of some producers appeared to be nearing (or were possibly at) the profitmargin limitation in the third quarter, the Price Commission scaled down the price increases requested to offset the cost of Govern­ ment-required equipment on 1973 models and delayed permission for a rise until December. No price increase was approved in 1972 for the largest producers to cover increased labor and materials costs. As a result seasonally adjusted prices of passenger cars, after quality adjustment, dropped in the fourth quarter. Under Phase II, the rise in consumer service costs slowed markedly, despite the obvious difficulties of monitoring price in­ creases for many services. Medical care was subject to special regulations, under which the advance in its cost was greatly reduced. And the rise in rents—also under special guidelines— slowed substantially. The stabilization program, however, was not a decisive factor in controlling prices of materials traded on organized markets, partly because some of these are of agricultural origin and thus exempt from control. Others, such as nonferrous metals and scrap, steel scrap, and certain manmade textiles had already suffered sizable declines in prices before August 1971. Thus their legal price ceilings were based on the higher, May 1970, levels. For a number of products the upper limit of permitted price increases was not reached. The divergence among price movements in different segments of the economy between the pre-stabilization period and Phase II was reflected in differing rates of advance for the major indexes used to indicate price trends. From December 1971 to December 1972, the consumer price index rose 3.4 per cent compared with 6.5 per cent for the wholesale CONSUMER AND WHOLESALE PRICE INDEXES price index. Sharp rises for materials, which do not enter the CPI, 130 CPI — ALL ITEMS*. as well as for farm products, most of which do not enter it directly, WPI — accounted in large part for the rapid inflation in wholesale prices. COMMODITIES J LESS FOOD TOTAL The inclusion in the CPI of consumer services—a sector in which price advances slowed markedly last year—also contributed to a lower average price advance at the consumer level. However, IIU consumer finished goods, except foods, rose only a little more than CONSUMER GOODS LESS FOOD 2 per cent in the WPI, about the same rate as for comparable wmm 1 1970 1171 1972 ’73 components in the CPI. Dept, of Labor data; latest figures, The comprehensive fixed-weight index for the private economy consumer, January; wholesale, Feb­ ruary. Seasonally adjusted. and the index for its most important component, personal con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 133 sumption expenditures, showed even greater improvement over the pre-stabilization period (as well as lower rates of change in recent quarters) than the consumer price index, as Table 2 indicates. During the first half of 1971, the rate of rise in the consumer price index had already moderated to less than 4 per cent from its rise of about 5.5 per cent during 1970, largely because mortgage interest rates, which had been rising steeply, leveled off in the second half of 1970 and then dropped sharply early in 1971. TABLE 2 PRICE INCREASES Percentage changes at seasonally adjusted annual rates1 1972 Q4 1970 to Item Q2 1971 Qi Q2 Q3 Q4 Gross private product2 5.0 4.5 2.5 2.9 3.1 Personal consumption 4.5 3.6 2.5 3.1 3.0 expenditures2 Consumer prices (CPI)3 3.8 3.9 2.5 3.6 3.9 1 1972 changes are from previous quarter. 2Fixed-weight index, 1967 weights. :iChanges are based on quarterly averages of prices. Source.—Dept, of Commerce, Dept, of Labor. Since consumer expenditures in the national accounts do not include the cost of home finance, the price index for personal consumption expenditures shows a substantially higher rate of price advance in the pre-stabilization period than does the CPI. In addition, last year the consumer price index component for services rose faster than the personal consumption expenditures measure. Property taxes (up 10 per cent over the 12 months ending December 1972) and mortgage interest costs (which rose in response to an increase in mortgage amounts) contributed to the larger advance in consumer prices; the personal consumption expenditures index excludes these items. Most of the remaining disparity in price movements lies in the broader coverage of consumer durable goods in the consumer price index, which includes, with substantial weights, the prices of both new and used homes and used cars. These rose faster than other components. (The used-car index, for example, was 7.3 per cent higher in December 1972 than 12 months earlier.) But only the margins on used-car purchases are included in the gross private product, and homeownership costs are not reflected directly; instead the rent index is used as a proxy for the cost of imputed services of owner-occupied homes. Excluding used cars and home pur­ chases, the four-quarter increase in prices of consumer durable goods in the CPI was similar to the increase in the consumer durable goods component of personal consumption expenditures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 FEDERAL RESERVE BULLETIN □ MARCH 1973 For purposes of assessing inflation, the price index for consumer expenditures is, at times, a more significant indicator than the CPI. Interest costs, for example, may rise either as a result of inflation or as the result of attempts to control inflation through reducing liquidity in the economy. The cost of providing shelter or home services may not always be well measured by the costs involved in owning a capital asset such as a home. FARM AND FOOD PRICES Agricultural prices reflected a rise of 22 per cent in livestock, 13 IN 1972 per cent in meats, and 44 per cent in grains over the 12 months ending in December. Corn, wheat, and soybean prices began a sustained and very rapid advance in the autumn. In addition to increased domestic EXPORTS OF GRAIN requirements for feed and some weather damage to the soybean crop, the increase in prices reflected export demands resulting from world shortages of food grains and animal feeds. The United States was one of the few nations with sizable exportable stocks, while wheat and rice crops were generally deficient abroad. In the present fiscal year exports of wheat are expected to be about 75 per cent above the average of the preceding 3 years and corn exports to rise almost as much—an expansion sufficient to influence soaring 1970 1971 m 1973 domestic grain prices. Foreign demand for soybean meal for animal feeding has also intensified; this increased demand contributed to Dept, of Agriculture data. 1973 esti­ mated. Soybeans include bean, and a rise of 56 per cent in prices of manufactured animal feeds in wheat includes grain, equivalents of products. 1972. The advance in livestock prices last year was caused by an unexpectedly large growth in consumer demand combined with a small decline from the preceding year in the supply of meat animals 2 | FOOD PRICES accelerate RATIO SCALE, 1967=100 1970 1971 1972 ’73__________1970__________1971___________1972 ’73 Dept, of Labor data for retail and wholesale prices; latest figures: retail, January, wholesale, February. Livestock and products and crops and products derived by FR. Dept, of Agriculture data for farm value of market-basket foods; latest figures, January. Retail is food-at-home component of CPI; wholesale is consumer foods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 135 for slaughter. Although attention has been focused on the advance in beef prices, a more acute problem was a drop in pork supplies as hog production entered the lowest phase of a 3-year cycle. A reduction of 6 pounds per capita in pork consumption was only partially offset by a 3-pound increase in beef (now in a rising phase of the production cycle) and by increased consumption of fish and poultry. Grocery store food prices rose about 5 per cent from December 1971 to the same month last year—considerably less than the 8 per cent rise in consumer foods at wholesale. To some extent, retail price changes lag behind those at wholesale; in addition, costs of marketing and distribution rose less than wholesale food prices last year. At the grocery store, prices of meat and fish rose more than 10 per cent during the year and fresh fruits and vegetables were more scarce and more costly, particularly in the second half. By autumn, prices of eggs began to climb and those of meat and most other foods began to rise faster. WHOLESALE Although farm and food price increases were the major influence INDUSTRIAL PRICES in the advance in wholesale prices over the year ending last December, industrial prices also rose substantially—by 3.6 per cent, compared with a 4.7 per cent seasonally adjusted annual rate in the pre-freeze period of 1971. For both producers and consumers, prices of finished commodities excluding foods rose only a little more than 2 per cent—reflect­ ing in part Phase II controls on prices of cars and trucks. But prices of materials, particularly those of crude materials, advanced strongly. TABLE 3 WHOLESALE INDUSTRIAL PRICES December 1971 to December 1972 Per cent Contri­ Price Item bution change Industrial commodities ...................................................... 100.0 3.6 Fuels and related products and power ..................... 16.5 6.0 Metals and metal products .......................................... 15.5 3.0 Lumber and wood products ......................................... 14.1 12.9 Textile products and apparel ....................................... 12.0 4.5 Hides, skins, leather, and related products ............ 10.8 22.4 Machinery and equipment ............................................ 9.8 2.1 Other industrial commodities ...................................... 21.2 1.9 The inflation in prices of materials reflected rising levels of world economic activity and high domestic demands as well as a faster rise in prices abroad than in the United States. In addition, supplies were subnormal for some materials of agricultural origin, such as wool, cotton, and hides. Environmental problems also affected costs and output of fuels, metals, and other products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 FEDERAL RESERVE BULLETIN □ MARCH 1973 3 I Prices of MATERIALS rise faster than those of FINISHED GOODS RATIO SCALE, 1967=100 Dept, of Labor data; latest figures February. Crude materials are for further processing and exclude crude foodstuffs, feedstuffs, plant and animal fibers, oilseeds, and leaf tobacco. Intermediate materials include supplies and components but exclude intermediate materials for food manufacturing and manufactured animal feeds. Farm and food products are farm products and processed foods and feeds. Five major product groups—fuels, metals and metal products, lumber and wood products, textiles and apparel, and hides, skins, and leather products—accounted for almost 70 per cent of the rise in the index for industrial commodities in 1972. Fuel prices rose sharply in 1972 for a variety of reasons. An 8 per cent rise in coal prices reflected higher costs in the mines, arising mainly from wage increases and the cost of tightened Federal safety regulations. In part as a result of higher coal prices, the advance in electricity rates accelerated. Gas fuel prices rose more than 10 per cent and sharply higher rates on new sources of supply were allowed by the Federal Power Commission. Spot shortages of fuel oil—reflecting to some extent the scarcity of other fuels—occurred early last winter, but price increases were re­ strained by Phase II controls. High levels of residential building and rising export demand for logs stimulated a continued advance in lumber and plywood prices last year. Nevertheless, the rise was less than in 1971, and prices of other building materials—some of which were restrained by profit-margin ceilings—also exhibited more moderate gains. With prices of cotton products up by 10 per cent and of synthetics by almost 6 per cent, prices of textile products increased at the fastest rate in recent years. Raw wool prices more than doubled and wool products rose about one-fifth. Nevertheless, wholesale apparel costs increased relatively little last year. Markets for metals were relatively weak. Prices of steel mill products rose substantially, but at slower rates than in recent years. Nonferrous metals, which had fallen in price in 1971, moved up slightly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 137 One of the largest price advances reported last year for a major material was that for hides and skins—almost 100 per cent. A ban on hide exports from Argentina contributed to the second year of rapid increase. Although processors’ margins were controlled in Phase II, leather prices rose almost 40 per cent during 1972 and footwear prices 10 per cent, by far the largest rise among apparel groups. Prices of BASIC MATERIALS show large increases RATIO SCALE, 1967=100 RATIO SCALE, 1967=100 HIDES & SKINS 140 280 240 200 180 160 140 Dept, of Labor data, latest figures, February. PHASE III Phase III of the stabilization program, initiated in January of this year, was designed to introduce greater flexibility and to reduce the Government’s role while preserving the accomplishments and the objectives of Phase II. A rate of price advance of no more than 2.5 per cent by the end of 1973 was announced as the administration’s objective. It was recognized that many different situations and problems would appear in wage contract negotiations this year, and that larger unions and many more workers would be involved than in 1972 or 1971. Although prospects for noninflationary settlements had been improved by a slower rise in living costs in the last year and a half, sharply rising food prices this winter have become a source of increasing concern to workers. The basic standard for wage increases of 5.5 per cent was retained, but less rigid applica­ tion of the standard was expected in Phase III. A number of changes made in the price control program in January eased the impact of regulations on business. The initial responsibility for administration was shifted to business from Gov­ ernment agencies. All pre-notification was abolished outside the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 FEDERAL RESERVE BULLETIN □ MARCH 1973 food and health industries and, since early March, the oil industry; however, quarterly reports for review by the Cost of Living Council were still required of the largest firms. The Council reserved the right to impose price ceilings on firms or products if price increases should be found to be inconsistent with the stabilization aims. Construction, health services, and food remained under mandatory controls and such controls were reimposed on oil, but rentals were completely exempted. In addition to changing from mandatory controls to self-admin­ istration, Phase III embodied a liberalization of the profit-margin limitation. In Phase II firms computed their margin ceiling by averaging the margins achieved in their best 2 out of 3 fiscal years preceding the August 1971 freeze. For firms in many industries these years were 1968 and 1969, as profits were at a cyclical low in 1970 and 1971. With the recovery in 1971 and 1972, profits rose moderately. Although on the average margins were still below rates in the 1960’s, in a number of industries, including several big manufacturing industries, margins were near ceiling levels by the end of Phase II. The profit-margin limitation was modified to allow firms to substitute a year ending during Phase I or Phase II for a less-profitable earlier year in computing the margin ceiling. This change is likely to be of assistance particularly to selected manu­ facturers of apparel, furniture, alcoholic beverages, automobiles, building supplies, and processed foods. Another change in Phase III allowed firms to increase prices by an average 1.5 per cent in 1973, if costs have risen that much, regardless of the profit-margin limitation. In Phase II, by contrast, the profit-margin ceiling could be exceeded only if a price increase were avoided entirely. RECENT Since December extraordinary advances in farm and food prices DEVELOPMENTS have caused both wholesale and retail prices to rise at an accelerated rate. Industrial commodity prices, seasonally adjusted, rose 1 per cent in February, the sharpest rise in a number of years. Fuel price increases were important in February, including coal, electricity, and gas fuels, and prices of major industrial materials such as metals, textiles, and lumber also advanced. Following the increase in fuel oil prices recorded in the February index, mandatory controls limiting further increases were reimposed on large firms in the industry. Lumber prices have shot up since mandatory controls were removed in early January. Primary metal markets have also shown much greater activity this year. Prices of steel mill products, which had risen about 2 per cent in January, have increased further, extending the advance to about half of all steel-mill products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 139 SENSITIVE INDUSTRIAL RAW Following a sharp rise in world markets, copper prices have also MATERIALS: SPOT PRICES rebounded this year from substantially lower levels in 1971 and 1972. The U.S. producer’s price has now reattained the record levels of 1970. Prices of zinc, lead, and other nonferrous metals have also risen recently. The increase in farm and food products in February, which included markedly higher prices for livestock, meats, and animal feeds, was one of the largest on record; it brought the 3-month increase since November to 13.5 per cent and the rise since February 1972 to 19 per cent. Wholesale prices of meat, poultry, Dept, of Labor data, latest figures, March. and fish rose more than 12 per cent between December and February; the rise includes a sharp advance in prices of broilers, production of which was cut back in response to higher feed costs. By mid-March, prices of livestock and meat had risen further to record levels. Grocery store prices of food rose more than 4 per cent in the first 2 months of this year—not much less than in the entire year ending in December. In February, the rise in food prices was mainly responsible for one of the largest advances in consumer prices in the postwar period, although prices of other commodities also rose faster than in other recent months. Since February further advances in wholesale prices of livestock and meat indicate that the climb in the cost of the consumer food budget is continuing. Under Phase III of the stabilization program some prices have been raised. The exchange rate realignments in early February are also expected to affect the domestic price level by raising import prices and stimulating exports. Substantial price advances on im­ ported automobiles have already been announced, and prices of commodities traded on world markets—some agricultural com­ modities, raw materials, and precious and base metals—have been adjusted upward. For many other commodities, the price reaction to exchange rate adjustments will be slow. On the average, price changes of particular goods are not expected to reflect the full range of the drop in the international value of the dollar, and since imports and exports are a small part of the domestic economy, the impact of currency readjustments on the over-all price level will probably be limited. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the Fed­ forth are those of the authors and do not neces­ eral Reserve Banks undertake studies that cover sarily indicate concurrence by the Board of a wide range of economic and financial sub­ Governors, by the Federal Reserve Banks, or jects, and other staff members prepare papers by the members of their staffs. related to such subjects. In some instances the Single copies of the full text of each of the Federal Reserve System finances similar studies studies or papers summarized in the Bulletin by members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the economics profes­ back of each Bulletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies99 that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve Bulletin. currently available in that form. Study Summary EXAMINATION OF THE MONEY STOCK CONTROL APPROACH OF BURGER, KALISH, AND BABB Fred J. Levin—Staff, Federal Reserve Bank of New York Prepared as a staff paper and revised in February 1973 In recent years growth in the monetary aggre­ Mj. Section II first discusses the simulation gates, particularly the narrowly defined money techniques used by BKB to test the performance stock (MO, has come to play a prominent role of their model and compares their simulation in the formulation of monetary policy. Because procedures with those of others. Then it presents of this emphasis on the behavior of the aggre­ simulation results of the BKB approach for the gates, a number of money stock control models 1962-69 period and discusses several problems have been developed by economists working in interpreting these results. The final part of within the Federal Reserve System. This paper Section II compares the performance of the examines one of these models—that of A. E. BKB approach over the 1970-71 period with Burger, L. Kalish III, and C. T. Babb, of the those of a version of the monthly money market Federal Reserve Bank of St. Louis—and com­ model developed by the staff of the Board of pares its performance with those of three other Governors, of the Schadrack-Skinner reducedmodels developed within the System. form equation, and of one of the forecasting Section I provides a brief description of the equations suggested by Hamburger. The models monthly money stock control model of Burger, are evaluated on the basis of the accuracy of Kalish, and Babb (BKB). In Section II the ex ante forecasts. Ex post forecasts are also model is evaluated on the basis of how well presented. The differences between the accuracy it would perform in controlling the growth in of the ex post and the ex ante forecasts provide 140 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

a measure of the degree of ex post bias in the for predicting monthly growth rates in money models. over the 1970-71 period, but for quarterly pre­ The major findings of this study are: dictions the forecasting accuracy of these three 1. The simulation technique used by BKB to models is indistinguishable. On the other hand, test their model yields approximately the same the model used by the Board’s staff does sub­ errors in the growth of M1 as the more conven­ stantially worse than any of the other models tional simulation procedure. tested. Since the Schadrack-Skinner equation 2. On the basis of simulation results over the uses the Federal funds rate as its policy variable 1962-69 period, it appears that the BKB ap­ while the Hamburger and BKB models use the proach would provide only poor control of net source base, the simulation results provide monthly growth rates in M1. On the other hand, little basis for choosing between the Federal within the framework used here, the results funds rate and base targeting as a means of furnish evidence that application of this model controlling the money stock. would result in reasonably close control of 4. The degree of ex post bias varies consid­ growth in quarterly-average levels of Mv erably among the models tested. Thus, it is 3. The Schadrack-Skinner and Hamburger important that ex ante rather than ex post fore­ equations perform better than the BKB approach casts be used to judge their performances. □ 141 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This twenty-second joint interim report reflects This report was prepared by Charles A. the 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 September 1972 to March 1973. Pre­ Market Committee of the Federal Reserve vious reports have been published in the March System in the conduct of foreign exchange and September Bulletins of each year begin­ operations. ning with September 1962. In mid-July 1972 the exchange markets were were demonstrating growing success. Thus, as still suffering under the impact of the massive the International Monetary Fund’s annual meet­ flows of funds generated by the sterling crisis. ing at the end of September approached, the As this speculative wave crested, the Federal dollar was showing increasing strength and the Reserve for the first time since August 15, 1971, exchange markets were more relaxed than they undertook active intervention in the exchange had been for some time. markets. On U.S. initiative and with the ap­ The IMF meeting was conducted in an atmos­ proval of the German Federal Bank, the first phere of cooperation that generated new opti­ exchange operation was launched on July 19 in mism regarding progress on monetary reform the form of repeated offerings by the Federal and helped further to calm the exchange mar­ Reserve Bank of New York of German marks kets. In particular, the speech of Treasury Sec­ in the New York market. Subsequently, inter­ retary Shultz to the meeting was seen as marking vention was also undertaken in a second Euro­ a major step forward, as the Secretary set forth pean currency, the Belgian franc. These actions, a number of specific proposals for consideration coupled with the demonstrated readiness of in a statement that was widely regarded as other central banks to defend their exchange conciliatory and cooperative in tone. The Fund rates, helped to generate a gradual strengthening meeting concluded with the appointment of a of the dollar over the late summer, despite large Committee of Twenty, broadly representative of accumulating deficits in the U.S. balance of the Fund membership, to consider monetary payments on both trade and over-all account. reform and the appointment of a Committee of Consequently fears of a breakdown in the Deputies to carry on the detailed discussions Smithsonian arrangement that had plagued the looking toward a preliminary report to be ready market for so many months began to recede. for the 1973 annual meeting. In this setting, the sharp rise in U.S. money At the beginning of October the Swiss au­ market rates that began in late August was a thorities decided to sell off some of the dollars further boost to market confidence. At about the they had acquired earlier in the year, in large same time, moreover, the market was beginning part with the objective of absorbing excess do­ to react to signs of improvement in the U.S. mestic liquidity. The market interpreted the trade position, which had deteriorated badly in sales, however, as putting a floor under the the first half of the year. Finally, it became clear Swiss franc and as indicating that other Euro­ that the winds of inflation were blowing in­ pean central banks also would take advantage creasingly strongly throughout Western Europe of any further improvement in the dollar to at a time when U.S. efforts to curb inflation reduce their holdings. 142 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE 1 month, the exchange market atmosphere deteri­ FEDERAL RESERVE RECIPROCAL CURRENCY orated rapidly, in part because of apprehension ARRANGEMENTS over the risk of renewed inflationary pressures In millions of dollars in the United States and the sharp drop in U.S. stock prices. The international financial com­ Institution Amount of facility, munity, which had been concerned almost ex­ Mar. 9, 1973 clusively with European inflation, shifted the Austrian National Bank .......................... 200 focus of its attention once again to the problem National Bank of Belgium .................... 600 of controlling the rise in prices in this country. Bank of Canada ....................................... 1,000 National Bank of Denmark .................. 200 In this context, the markets became concerned Bank of England ...................................... 2,000 that interest rates in the United States might not Bank of France ......................................... 1,000 German Federal Bank ............................. 1,000 be permitted to rise sufficiently, even though Bank of Italy .............................................. 1,250 short-term market rates of interest were rising Bank of Japan ........................................... 1,000 Bank of Mexico ....................................... 130 sharply at the time. Netherlands Bank .................................... 300 In this atmosphere, the January 20 decision Bank of Norway ...................................... 200 of the Italian authorities to introduce a two-tier Bank of Sweden ....................................... 250 Swiss National Bank .............................. 1,000 market for the lira had psychological repercus­ Bank for International Settlements: sions extending far beyond the Italian market. Swiss francs/dollars ............................. 600 Other authorized European currencies/ The immediate impact was felt in Switzerland, dollars ................................................. 1,000 in part because of the close financial ties be­ Total .................................................. 11,730 tween the two countries, but also because the Swiss franc among all the European currencies In general, European monetary authorites saw was the only one close to its Smithsonian ceil­ the improvement of the dollar as providing them ing. The battle against inflation in Switzerland with an opportunity to move more forcefully in had for some months been fought largely with the fight against increasingly virulent inflation. monetary policy and, as liquidity conditions Thus, over the course of the fall monetary policy had tightened steadily, the Swiss franc had been in Europe was tightened progressively, both bid up close to its ceiling. In these circum­ through changes in reserve requirements and stances, efforts by Italian banks to adjust to the through increases in discount rates. The conse­ new exchange system by purchasing Swiss quent rise in European interest rates became a francs to cover outstanding indebtedness con­ disturbing influence on the exchange markets as tributed to strong demand for francs and the it threatened to erode the inducement to move National Bank took in some $270 million as funds to the United States. Moreover, in the the rate moved up to its ceiling. With further background loomed the persistent massive trade heavy dollar inflows expected, the Swiss au­ surplus of Japan. As Japanese official reserves thorities feared that their anti-inflationary efforts rose steadily day after day, the markets became would be undermined if they continued to de­ increasingly persuaded that a further adjustment fend the intervention level. It was decided, in the yen exchange rate was unavoidable. therefore, to permit the Swiss franc to float Nevertheless, the growing inflow of funds for temporarily until the market had a chance to investment in U.S. securities markets helped calm down. When the franc immediately hold the dollar steady with respect to most of jumped well above its Smithsonian ceiling, the continental currencies through December. In speculative pressures began to emerge in other midmonth, however, there was a sharp setback markets, particularly in Germany where the to confidence with the release of figures showing mark began to advance rapidly. a deterioration in the U.S. trade position in In the nervous and uncertain climate that was November, the first weakening after several beginning to develop, the U.S. and German months of steady improvement. authorities quickly agreed on a cooperative ef­ January began on a worrisome note, with no fort involving intervention in the market by the significant improvement in the dollar despite the Federal Reserve to slow the rise in the mark passing of year-end pressures. Later in the and maintain an orderly market. When data 143 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 FEDERAL RESERVE BULLETIN □ MARCH 1973 were released on January 24 showing a further for Federal Reserve account, based on existing increase in the U.S. trade deficit for December, mark and guilder balances accumulated during the mark began to rise more rapidly and the the latter part of 1972. On Friday, February 2, Federal Reserve Bank of New York began of­ the last of the available mark balances was sold fering marks in the New York market. Over the and, in addition, mark sales were made for U.S. course of the day, some $30 million of marks Treasury account out of its existing balance. was sold at progressively higher rates and by Over the course of the following week, inter­ the close the mark had eased from its peak level vention continued in an effort to keep the mark of the day. Over the next 2 days, the Federal from rising unduly high above its ceiling in New Reserve made further modest sales and the mark York in a deteriorating market climate. Reports, moved slightly lower. though false, that the United States had sug­ On the following Monday, German trade data gested a floating of the mark and that Germany were released showing the substantial growth was considering a two-tier market, and the as­ in the trade surplus during 1972, and the mark sertion by a prominent U.S. Congressman that again began to move up strongly in heavy de­ the dollar was still generally overvalued, con­ mand. The Federal Reserve intervened again in tributed to the growing conviction in the market an effort to keep the mark off its ceiling, where that the existing pattern of exchange rates would a progressive build-up of speculation might well not survive. In this atmosphere the flow of funds occur. The market became increasingly gloomy, into Germany assumed increasingly massive however, and the mark reached its ceiling on proportions. By the close on Friday, February Thursday, February 1, forcing the German Fed­ 9, the German Federal Bank’s reserve gain for eral Bank to intervene for the first time in this the seven trading days of the month had period. The Federal Reserve followed up this mounted to nearly $6 billion while sales of intervention with additional sales of marks in marks in the New York market by the Federal New York. At the same time, the Dutch guilder Reserve Bank of New York came to a total of also began to rise sharply, and the New York $318.6 million. These sales were covered by Bank entered the market and sold guilders to $167.4 million of Federal Reserve balances, slow the rise in the rate. Until this point, all $46.6 million of Treasury balances, and Federal intervention in the New York market had been Reserve drawings of $104.6 million on the swap TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent Drawings, or repayments ( —) System System swap Transactions with— swap 1972 1973 drawings, drawings, Mar. 9, Jan. 1, 1972 Jan. 1- 1973 I II III IV Mar. 9 10.2 35.0 National Bank of Belgium ......... 455.0 -20.0 -10.2 -55.0 - 25 .0 } 390.0 Bank of England ........................... 715.0 -52.0 -663.0 } .......................................... 104.6 1 German Federal Bank .................. 50.0 ....... -50.0 ........ -104.6 j Swiss National Bank .................... 1,000.0 -300.0 -130.0 —55.1.0 } 565.0 Bank for International Settlements Swiss francs ................................ 600.0 600.0 Belgian francs ........................... 35.0 -35.0 10.2 35.0 104 Total ....................................... 2,855.0 -372.0 -723.2 -220.0 -134 1,555.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 145 line with the German Federal Bank. In addition, rencies. Despite the major adjustment in ex­ $20.4 million worth of guilders had been sold. change rates as a result of the dollar devaluation, With intensive international negotiations un­ there continued to be widespread discussion of der way, the decision was made over the week­ the possibility of a joint float of the European end to close the European and Japanese ex­ Community (EC) currencies in the event of any change markets on the following Monday and renewed inflow. Moreover, the market situation Tuesday. On the evening of Monday, February was exacerbated by the continued floating of the 12, Treasury Secretary Shultz announced that Swiss franc, which by then had appreciated the dollar would be devalued by 10 per cent much more than other European currencies. and that, in addition to those currencies already In short, the markets were unconvinced that floating, it was understood the Japanese yen the crisis was over, and indeed by Friday, would be allowed to float temporarily. During February 23, the dollar had fallen to its new the international discussions it became clear that floor against the mark, French franc, guilder, there was widespread agreement that the ex­ and Belgian franc. After the weekend there was change rate realignment should be fully ade­ a brief respite, but on Thursday, March 1, there quate to accomplish the common objective of was an unprecedented rush into the continental placing international payments firmly on the currencies in which European central banks had road to equilibrium. In recognition of this to purchase more than $3.6 billion to maintain agreement almost all developed nations then the exchange rate limits. That night it was operating on the basis of par values or central announced that the exchange markets would be values allowed the market relationships between officially closed until further notice, and ar­ their currencies and the dollar to reflect the full rangements were made for an emergency meet­ devaluation of the dollar. When the exchange ing of the European finance ministers over the markets reopened, the European currencies weekend. Exchange markets in Europe and traded well below their new central rates, but Japan remained officially closed during the week there was no immediate unwinding of the earlier of March 5-9, with the dollar generally quoted flows of funds. below its new floor rates in light trading. At the beginning of the following week, During the period under review, the U.S. however, the dollar reached its ceiling against authorities made further progress in paying the mark and the German Federal Bank was able down foreign-currency indebtedness incurred to sell nearly $1 billion while the Federal Re­ prior to August 15, 1971. In view of the calmer serve covered its swap commitments. Never­ conditions that emerged for the dollar late last theless, it was clear already that the devaluation summer, the Federal Reserve began a program had come as a profound shock to dollar holders of systematically purchasing in the market on around the world. Thus, while some traders took a modest daily basis, first Swiss francs and later profits in marks and Swiss francs, there were Belgian francs, and by early 1973 had made significant new flows of funds into those cur­ aggregate swap repayments of $135 million TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings, or repayments ( —) Drawings Drawings on Banks drawing on System on System, 1972 Federal Reserve Jan. 1, 1972 System, Dec. 31, 1972 I II III IV Bank for International | 8.0 6.0 1.0 4.01 Settlements (against ........ 1-8.0 -6.0 -1.0 —4.0 J ........ German marks) Total 1 00OO o 0 1 NO nO o 0 1 o 0 1 b o Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 FEDERAL RESERVE BULLETIN □ MARCH 1973 TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues, or redemptions ( —) Issued to— Outstanding, 1972 1973 Outstanding Jan. 1, 1972 Mar. 9, 1973 Jan. 1- I II III IV Mar. 9 German Federal Bank 6120 {—76.5 -76.5 -i53.0 -’i'53.o} 153 0 German banks ............ 153.0 | ...... -153.0 :: 1 ..... Swiss National Bank . 1,215.4 1,253.8 Bank for International Settlements1 ............ 164.8 171.6 Total 2,145.2 -76.5 -76.5 -306.0 -153.0 } ’Denominated in Swiss francs. Note.—Discrepancies in totals result from minor valuation adjustments and from rounding. equivalent to the Swiss National Bank and $80 18, the EC finance ministers made clear their million to the National Bank of Belgium (Table determination to maintain the Smithsonian rate 2). A $35 million equivalent Belgian franc swap structure. Then, on July 19 the Federal Reserve commitment to the Bank for International Set­ resumed operations in defense of the dollar by tlements (BIS) was consolidated at maturity in offering marks in the New York market. November with commitments to the National The System’s total offerings of marks in July Bank of Belgium. As of March 9, System swap and August were fairly substantial but, as the commitments totaled $1,555 million equivalent, market backed away from these offerings, the or 49 per cent less than the $3,045 million peak actual sales amounted to a modest $21.4 million of August 1971. For its part, the U.S. Treasury equivalent. The sales were made out of pre­ repaid at maturity three German mark-denom­ viously accumulated balances. As the mark inated securities with marks either in balance continued to decline, the Federal Reserve sub­ or purchased from the German Federal Bank sequently began to purchase marks in the market (Table 4). Other foreign-currency-denominated to build up its balances. securities were renewed when they matured. As By early September, there was a decided of March 9, outstanding U.S. Treasury foreign- improvement in the atmosphere for the dollar. currency-denominated securities totaled nearly At the same time that the markets tended to calm $1.6 billion equivalent. down, the exchange control measures taken by the German authorities earlier in 1972 began to bite. Consequently, during the course of Sep­ GERMAN MARK tember, the German mark continued to ease, In June and July 1972, the German mark had along with most other continental European borne the brunt of the massive speculative currencies. This decline accelerated late in the rushes, first out of sterling and then, after ster­ month, as the markets responded favorably to ling was allowed to float, out of the dollar. In developments at the annual IMF meeting in meeting this demand for marks while keeping Washington. The decline of the spot mark con­ the rate within official intervention limits—of tinued into early October and the rate reached both the Smithsonian Agreement and the EC $0.3109^, only lA pbr cent above its Smith­ narrow-band arrangement—the German Federal sonian central rate. Bank had been obliged to take in $4.5 billion Throughout the period of decline of the mark, of foreign exchange. Pressures remained strong traders had been watching for any sign that the until, in a meeting in London on July 17 and German Federal Bank might openly enter the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 147 market as a seller of dollars, and on October tion, as had been agreed by the EC finance 2, when the Swiss National Bank sold a sub­ ministers in late October. stantial amount of dollars, the market came to The market took this tightening of monetary expect that the German Federal Bank would policy in stride as the dollar continued generally soon follow suit. The selling of marks quickly firm in Europe. Despite occasional fluctuations dried up, some traders actually began buying in the rate provoked by developments outside marks in anticipation of somewhat higher rates, Germany, the mark traded in a range of V2 to and the spot mark advanced to about Vi per cent % per cent above the Smithsonian central rate. above the central rate before leveling off. By It also remained comfortably within the EC this time, Germany’s current account had band, trading during most of the fall below the slipped into deficit—even though the trade ac­ Danish krone, the Belgian franc, and until De­ count remained in substantial surplus—and cember the French franc. Taking advantage of German investors were purchasing an increasing relatively attractive rates, the Federal Reserve volume of U.S. securities. With the mark still continued to make small daily purchases of away from its ceiling, the German Federal Bank marks in the market to provide balances for took the opportunity to sell modest amounts of intervention in the exchange markets should the dollars on a day-to-day basis. need arise. Meanwhile, the domestic economy had en­ At the start of the new year, the mark eased tered a new phase of expansion, accompanied further and by Friday, January 19, was trading by unrelieved upward pressure on wages and only V4 pfer cent above its central rate, the lowest prices. In addition, as the domestic liquidity level since October. Over that weekend, how­ generated by previous hot money inflows had ever, the Italian authorities introduced a two-tier been only partly sterilized by higher reserve market for the lira, and on January 23 the Swiss requirements, the money market remained rela­ authorities decided to allow the Swiss franc to tively easy. Thus, the liquidity situation and float. In response to the sharp jump in the Swiss economic tendencies in Germany suggested the franc, the German mark was quickly bid up by need for policies of domestic restraint. To some 1 lA per cent and other European currencies rose extent, the movement of the mark away from as well. its ceiling, together with tightened exchange Over the next few days, in cooperation with controls, provided the authorities with room to the German Federal Bank and with the full maneuver, but the German authorities remained concurrence of the U.S. Treasury, the Federal sensitive to the implications that a move to Reserve intervened in the New York market, credit restraint might have for the exchange selling marks in order to prevent the rate from markets. The massive speculative inflows of reaching its ceiling and generating more specu­ 1971-72 were only slowly being unwound, and lative flows. Although the rate backed off tem­ an increase in interest rates in Frankfurt could porarily in response to this intervention, the dampen any further reversal of the outflows and continuing rise in the Swiss franc relative to perhaps even trigger a new wave of money other European rates tended to pull the mark inflows. and other currencies along. Moreover, the mar­ Against this background, the German au­ ket was aware that the mark was now the major thorities moved cautiously to tighten domestic European currency that was neither floating liquidity. On three separate occasions—October nor on a split market basis, and there was 9, November 3, and December 1—the German widespread discussion of a test of the resolve Federal Bank raised its lending rates, hiking the of the German authorities to hold to the Smith­ discount rate from 3 per cent to AVi per cent sonian intervention point. Demand for marks and the Lombard rate from 4 per cent to 6V2 continued to swell in a deteriorating market per cent. Moreover, significant reductions in the atmosphere. On February 1 and 2, the rate discount quotas of the banks were announced. reached the ceiling and the German Federal The progressive tightening of monetary policy Bank was obliged to take in more than $1 billion in Germany came at a time when other EC over the 2 days. By that time, the Federal central banks were moving in the same direc­ Reserve also was intervening in New York more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 FEDERAL RESERVE BULLETIN □ MARCH 1973 1A CHANGES IN EXCHANGE RATES AND February 5-9, the German Federal Bank pur­ OFFICIAL TRANSACTIONS chased a further $4.9 billion in holding to the Smithsonian ceiling for the mark, while the BILLIONS OF DOLLARS Federal Reserve continued to intervene in New York on each day after the European close. For the period January 24-February 9, sales of Ger­ man marks by the New York Bank amounted to $318.6 million equivalent, of which $167.4 million represented sales from System balances, $46.6 million from U.S. Treasury balances, and $104.6 million from Federal Reserve drawings under the swap line with the German Federal Bank. Over that weekend, there were intensive international negotiations in an effort to resolve the crisis. Official exchange market dealings were sus­ pended in Germany on Monday, February 12, although commercial banks traded marks at considerable premiums over the Smithsonian ceiling. That evening, Treasury Secretary Shultz announced the proposed devaluation of the U.S. dollar, and on the following day the German authorities announced that there would be no change in the gold value of the German mark. As a result, the central rate for the mark ap­ preciated by the full 11.1 per cent commensu­ rate with the dollar’s devaluation. At the same 1.0 I I i i i i i i i t i i i 4 time, new intervention limits were set for the JAN. MAR. MAY JULY SEPT. NOV. JAN. MAR. _________ 1972 1973 mark at 2lA per cent on either side of the central rate. *Upper and lower intervention limits established in Dec. When regular trading in marks resumed on 1971. **For Germany, upper and lower intervention limits around February 14, there was an enormous overhang new central rate established on Feb. 13, 1973, following of speculative holdings of marks, largely in the proposed devaluation of U.S. dollar; for Switzerland, inter­ vention limits suspended on Jan. 23, 1973. form of deposits with German banks. Thus, Note.—Movements in exchange rates are measured as per­ although the exchange markets remained ner­ centage deviations of weekly averages of New York noon offered rates from the middle or central rates established under vous and unsettled, and other currencies traded the Smithsonian Agreement of Dec. 18, 1971. Changes in well away from the new floors against the dollar, reserves are computed from the figures published in the Inter­ national Monetary Fund’s International Financial Statistics. the mark came on offer. It reached its new floor Changes for Jan. 1972 include that year’s allocations of SDR’s. on February 19-21, and the German Federal forcefully than before in order to keep the mark Bank sold nearly $1 billion. At the same time, from going through its ceiling. the Federal Reserve purchased sufficient marks That weekend, the German authorities im­ from the German Federal Bank to repay the posed tough, new restrictions against capital swap drawings entered into prior to the deval­ inflows. Nevertheless, by the following Mon­ uation of the dollar. Subsequently, in the con­ day, the crisis had escalated with news reports tinuing atmosphere of uncertainty in the ex­ that the United States had suggested a floating change markets, the mark was bid up sharply, of the mark. Subsequent reports that Germany reaching its new ceiling on February 23. Al­ was considering a two-tier market and the as­ though the rate was off the ceiling in the first sertion by a prominent U.S. Congressman that part of the following week, the atmosphere the dollar was overvalued stirred up even greater continued to deteriorate, and on Thursday, speculation in the market. Over the week of March 1, the German Federal Bank took in a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 149 record amount of more than $2.6 billion. The pressures long troubling the economy. Several German authorities then closed the market, and additional measures were discussed with the a new round of discussions began. banks in late August and early September. But, During the period under review, the U.S. as the exchange market was still in tenuous Treasury purchased from the German Federal balance, the authorities chose simply to grant Bank sufficient marks to redeem at maturity in greater access to the Swiss capital market to October and in February two $153 million foreigners and to increase the proportion of such equivalent mark-denominated securities held by borrowings that had to be converted into dollars that bank. In addition, the Treasury utilized at the central bank. balances acquired prior to the mark revaluation By late September the markets were respond­ of 1969 to pay off at their December maturity ing favorably to the improved atmosphere of the $153 million equivalent of mark-denominated IMF annual meeting. In the general strengthen­ securities that had been issued in 1968 to Ger­ ing of the dollar that developed at that time, man banks. the cutting out of long positions in francs accel­ erated and the franc rate dropped to within 1 per cent of its central rate. As the rate continued SWISS FRANC to fall, the Swiss National Bank on October 2 By early July, in the wake of sterling’s float, sold more than $200 million in the exchange the Swiss authorities had resumed official deal­ market, with the dual objective of mopping up ings on the basis of the Smithsonian central rate excess bank liquidity and reducing its dollar and limits but had also imposed a battery of reserves. This substantial intervention not only new controls to discourage capital inflows. had its expected impact on domestic liquidity, Nevertheless, in the generalized speculative but also tended to reinforce market expectations turmoil that had continued through midmonth, that a further strengthening of the dollar might the Swiss National Bank had been obliged to be resisted by official dollar sales by the Swiss take in $1.3 billion at the Smithsonian ceiling. or by other European central banks. Conse­ In the subsequent turnaround, the franc had quently, the spot franc turned upward and re­ edged away from its ceiling. The decline had mained away from the lowest point at which been gradual at first but became more pro­ the National Bank had intervened, a level which nounced after mid-August, when the general traders began to view as an effective floor for atmosphere in the exchanges improved and the franc for the time being. traders reportedly were beginning to reduce The markets were generally quieter in Oc­ some of the long positions in francs taken the tober, and the National Bank suspended the month before. The Swiss franc liquidity gen­ requirement that banks maintain either long or erated by the July inflows also had helped soften balanced over-all foreign exchange positions. the spot rate as there was some switching out Nevertheless, by then the various measures of francs, on which interest rates were minimal. taken by the Swiss authorities to absorb liquidity The reversal had been far from complete, how­ were beginning to bite. To prevent a squeeze ever, and the franc had held well above its from developing at the end of October, the central rate. National Bank provided some $145 million in The Swiss authorities had mainly relied upon short-dated swaps and released a further $100 adjustment in reserve requirements to mop up million equivalent of francs through temporary a portion of liquidity created by the July inflows adjustments in reserve requirements. With the of foreign exchange. These measures were not demand for franc liquidity thus defused, the spot sufficient, however, to restrict credit expansion exchange rate moved on an easier trend into that, by September, had already exceeded the early November. limits set forth in a previous gentlemen’s agree­ As Switzerland’s rate of inflation was running ment. Consequently, the authorities feared that, in excess of 7 per cent, political pressures were in the absence of strong restraints on lending, building for effective measures to bring it under the excess liquidity still in the hands of the control. In the absence of strong fiscal powers banks would compound the severe inflationary in the hands of the Confederation, the focus of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 FEDERAL RESERVE BULLETIN □ MARCH 1973 the anti-inflationary effort turned increasingly to day purchases of francs in the market. These monetary policy. On November 22, the central francs were used in partial repayments of out­ bank informed the banks—which were already standing swap drawings with the Swiss National heavily loaned up and were beginning to posi­ Bank. By the year-end, outstanding drawings tion themselves for month-end needs—that it in Swiss francs had been reduced by $130 would not provide swaps as it had in October. million, and a further $5 million repayment was The prospect of renewed pressure at the month- made in early January. As a result, on March end led to a brief run-up of the spot franc until 9, 1973, total indebtedness in Swiss francs stood a recalculation of required reserves led to a at $1,165 million, including $600 million with sufficient injection of francs by the National the BIS, all incurred before August 15, 1971. Bank to turn the situation around. Even after the passing of the year-end, the In late November, however, the Swiss Na­ Swiss franc remained firm as the liquidity tional Bank indicated firmly that it would pro­ squeeze at the banks continued unabated. Early vide only part of the banks’ year-end needs, in January, before the year-end swaps had been with 1-month swaps beginning on December 4 liquidated, the banks began to position them­ and with 7-day swaps later in the month. This selves once more against the possibility of a move was intended to reinforce the central squeeze for balances at the month-end. Under bank’s earlier attempts to reduce bank liquidity its new powers the National Bank established at the same time that the Government was a stiff 6 per cent limit on credit expansion by developing a comprehensive anti-inflationary the banks for the year ending July 31, 1973. package to be presented to Parliament the fol­ Nevertheless, with heavy loan commitments al­ lowing week. As the market assessed the need ready on their books, the banks were hoping for francs for the year-end and awaited the for a permanent infusion of franc liquidity Government’s package, rumors that the Italian through outright dollar purchases by the Na­ lira would be allowed to float touched off rumors tional Bank. Instead, the National Bank an­ of a possible float or revaluation of the Swiss nounced that it would provide temporary assist­ franc as part of the Government’s program. The ance at the end of January and would lift the Swiss franc rose to within Vi per cent of its requirement that a proportion of all loans to ceiling by the time the Government formally foreigners be converted into foreign exchange announced its plans for curbing inflation on at the central bank. Despite these measures, the December 4. The package was heavily weighted banks’ appetite for liquidity was not satisfied, with monetary measures, including proposed and by midmonth the franc was just Va percent­ statutory authority for the National Bank to age point away from its upper limit. impose lending ceilings and new reserve re­ On Friday, January 19, the National Bank quirements. In addition, it included controls of announced increases in its discount rate by 3A bond issues, a 3-year extension of the export pbrcentage point to 4V2 per cent and in its deposit scheme, limits on depreciation allow­ Lombard rate by V2 percentage point to 5lA per ances, and the establishment of an office of price cent. These increases, the first since 1969, rein­ “surveillance.” Since a float or revaluation of forced the Swiss banks’ concern over their li­ the franc had been excluded, the franc rate quidity positions, especially as the hikes were dropped back briefly. The rate firmed again after to come into effect just as the bulk of the midmonth, however, as Swiss banks began bid­ remaining year-end swaps was to be unwound ding actively for francs for year-end purposes. on the following Monday, January 22. The National Bank ultimately provided them Over that weekend, the Italian authorities with $1.2 billion in swaps and, although the announced that they were instituting a two-tier franc reached its Smithsonian ceiling on De­ market for the lira. This immediately added to cember 27, the central bank did not have to take tensions in the market for Swiss francs, mainly in dollars on an outright basis. because it introduced a new element of uncer­ Meanwhile, from the late summer, the Fed­ tainty, but also because Italian banks began eral Reserve had been making modest day-to- buying Swiss francs to repay indebtedness. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 151 franc thus quickly moved toward its upper limit. correspond to an 11.1 per cent appreciation of The Swiss National Bank tried to stop the rise foreign currencies against the dollar, the Swiss by purchasing $200 million, thereby supplying franc moved up quickly to trade 0.6 per cent enough francs for the banks to unwind their above such a level. Although the authorities of remaining swap commitments. The pressure several of Switzerland’s major trading partners continued, however, and with growing evidence quickly set new central rates and limits based of speculative demand developing the central on the U.S. devaluation, the Swiss Government bank announced that the franc counterpart to decided to wait until the market had settled further intervention would be placed in blocked down before establishing new benchmarks for accounts on its books. The National Bank then the franc. The markets did not settle down, purchased another $70 million, while dealers however, and with the heavy new flow out of quickly began to trade unblocked balances at dollars the spot franc was pushed up to about rates as high as 1 per cent above the Smithsonian 24% per cent above the Smithsonian central ceiling amidst rumors that the franc would be rate. floated. At the, opening the next morning, the STERLING Swiss National Bank announced: Following the British Government’s decision in Monetary measures abroad caused on Mon­ day, January 22, a heavy demand for Swiss June to allow sterling to float, the rate had francs which is partly of a speculative na­ dropped sharply, reaching as low as $2.4114 ture. In view of the risk of fresh massive before firming up to trade in a wide range around inflows of foreign exchange which would $2.45. Although the British current account had entail a corresponding money creation, the slipped into deficit, the gradual covering of short Swiss National Bank in agreement with the Federal Council has today decided not to positions taken in June tended to buoy the rate. take up intervention purchases in the dollar A rough balance lasted well into September, but market. It will stay away from the market late that month the technical support that had until things have quieted down again. been provided by the unwinding of speculative This action effectively allowed the Swiss positions dried up, and sterling became more franc to float in the exchanges. Later in the day, vulnerable to downward pressures. the Swiss authorities followed up by reimposing By then, the Government was engaged in the requirement that banks maintain balanced extensive negotiations with the leaders of in­ or long foreign currency positions. dustrial and labor organizations in a final effort With a substantial amount of unsatisfied de­ to slow an escalating domestic wage-price spiral mand for francs already overhanging the mar­ through voluntary restraints. At times, negotia­ ket, and with the possibility of a further rise tions seemed to be showing signs of progress in the rate now attracting other bidders, the spot and sterling would be bid up sharply in the franc shot upward and continued to climb market, but at other times there were indications throughout that week. The rise in the Swiss of a possible stalemate and sterling would come franc in turn put upward pressure on the curren­ on offer. On balance, market pessimism domi­ cies of Switzerland’s major trading partners, nated, and by the first week of October sterling which were still committed to the Smithsonian had fallen to around the $2.42 level. central rates and intervention points. As time In the meantime, the British authorities were passed and the Swiss authorities took no further also striving to check excessive monetary action either to bring the franc rate down or growth. In the summer and early fall the Treas­ to fix a new central rate and limits, the Swiss ury bill rate had risen sharply to a level well franc rose to nearly 8 per cent above the Smith­ above the bank rate, which remained at 6 per sonian central rate by February 9, even as the cent. On October 9 the Bank of England an­ focus of speculative attention shifted to the nounced that in lieu of the bank rate it would German mark. With the U.S. announcement on adopt a floating minimum lending rate, to be February 12 of a proposed new special drawing fixed at xh percentage point above the average right (SDR) parity for the dollar which would discount rate set on the weekly tender for Treas­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 FEDERAL RESERVE BULLETIN □ MARCH 1973 ury bills rounded up to the nearest lA percent­ to around $2.35. On November 6, Prime Min­ age point. The traditional method of setting the ister Heath introduced legislation calling for a central bank’s lending rate remained available comprehensive standstill of prices, wages, to the authorities, but they indicated that reli­ rents, and dividends. The standstill was effec­ ance would be placed on the minimum lending tive immediately and was to have an initial term rate that would follow market rates. That of 90 days following the passage into law of week, the rate was set at IVa per cent, 114 legislation, with provision for a 60-day exten­ percentage points above the previous bank rate. sion. During the period of the standstill, the Rising interest rates in London, however, Government would continue negotiations with were unable to offset the growing pessimism unions and the employers to work out a longerover the inflationary outlook and the escalation term incomes policy. of wage demands, as the Government’s As the market took stock of the prospects for wage-price negotiations with labor and indus­ success of this policy, spot sterling traded over trial leadership dragged on through mid-October a fairly wide range. At first, it dropped in without signs of any success. The market was response to labor’s highly critical initial reaction becoming increasingly skeptical that anything to the Government’s standstill. Then sterling positive would come out of these talks and was boosted by a further rise in domestic interest feared that, if the negotiations should fail and rates sparked by the Bank of England’s No­ the Government should impose statutory con­ vember 9 call for special deposits of 1 per cent trols, disruptive action by militant labor groups of total bank liabilities. By midmonth, with could weaken or undercut the controls. labor seemingly more resigned to the inevita­ In this atmosphere, new selling pressure de­ bility of the standstill, sterling began to show veloped on October 19, triggered by reports of a somewhat firmer undertone for a time and the a possible slowdown by electrical workers and spot rate rose to $2.353A. But some dealers the release of figures showing a marked increase remained unconvinced and began to increase in the rate of wage inflation to 16!/2 pbr cent their short positions in sterling, taking the rate for the preceding 12 months. Over the next down below $2.34 before a modest demon­ several days, spot sterling spiraled downward, stration of support by the Bank of England passing through several expected resistance steadied the rate. points—including the $2.40 and $2.38 pre- On December 21 the Bank of England again Smithsonian parity and floor, respectively— tightened the monetary screws, issuing a call while press and market commentary now sug­ for additional special deposits amounting to a gested that a new parity might eventually have further 2 per cent of eligible liabilities. Domes­ to be set as low as $2.25 or even $2.20. The tic credit markets responded strongly to this actual low point was hit on Friday, October 27, announcement, and the next tender rate was when the spot rate reached $2.32 in London pushed sharply higher. Consequently, the Bank before recovering to trade a cent or two higher. of England’s floating minimum lending rate, During the downswing, the Bank of England which had earlier increased in several steps to sold moderate amounts of dollars but did not 8 per cent, rose a full percentage point to 9 attempt to hold the rate at any particular level. per cent. As these increases spread to bank Shortly thereafter, the British Government’s lending and deposit rates more generally, ster­ efforts to negotiate voluntary restraint on prices ling was bid up again over $2.35 and held firm and wages broke down completely when the around that level through the year-end and into labor leadership formally rejected the Govern­ January. ment’s proposed price-wage guidelines. This On January 17, Prime Minister Heath an­ rejection initially led to a new sell-off of ster­ nounced the Government’s plans for a longerling. Later on, when it had become apparent term anti-inflation policy. The current price that the Government would turn to statutory standstill would be extended through April, and controls and that such controls would not gen­ the freeze on wages and dividends would be erate widespread labor unrest, sterling recovered extended through March. In the meantime, Par- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 153 liament would be asked to pass legislation for England and partly because of normal seasonal Phase II statutory controls. The legislation pro­ factors. Moreover, the United Kingdom had vided for a price commission and a pay board become an EC member and the pound now to enforce a series of interim limits on price appeared linked more than ever to the other EC and pay increases. Also in the package were currencies, although sterling remained outside limits on dividends, business profit margins, and the EC currency support arrangements. As one rents. Although provisions were made for pos­ or another of these considerations dominated the sible modifications of these limits next fall, the market, sterling moved erratically but, when legislation was drafted in terms of a 3-year strong demand emerged for continental Euro­ period. The program was well received in the pean currencies and particularly for the German market and sterling edged up to $2.3514 by mark, the sterling rate was ratcheted upward, January 19. reaching as high as $2.39 by Thursday, Febru­ Following the introduction of a dual exchange ary 1. Over the next few days, sterling fluc­ market in Italy and the floating of the Swiss tuated along with continental currencies as the franc, sterling was caught up in the growing exchange crisis intensified but by February 9 turmoil in the exchanges. Traders had to weigh was trading at $2.38%. several conflicting considerations. Sterling had While the negotiations which led to the de­ effectively depreciated by some 10 per cent valuation of the dollar were proceeding, the against other currencies, and this was expected London exchange market was closed on Febru­ to improve the competitiveness of British ex­ ary 12 and the British authorities announced that ports. On the other hand, there was still no way sterling would continue to float for the time of knowing how effective the Phase II measures being. When the market was reopened the fol­ might be in curbing the entrenched inflation. lowing day, sterling quotations were higher, and In the meantime, liquidity conditions in London on February 14, the pound reached $2.47%, were likely to be extremely tight, partly because some 5 per cent below its Smithsonian central of the special deposit calls by the Bank of rate. As the exchanges remained highly nervous in the wake of the dollar devaluation, sterling moved widely from day to day and even from CHANGES IN EXCHANGE RATES AND 1B hour to hour between $2.43 and $2.48. Then, OFFICIAL TRANSACTIONS as the turmoil built up to a peak on Thursday, March 1, the rate moved above $2.50. In the following week, with the markets officially closed, sterling settled back to trade around $2.46. ITALIAN LIRA Through most of 1972 the Italian authorities faced the policy dilemma of economic stagna­ tion coupled with strong wage and price infla­ tion. A severe profit squeeze cut into invest­ ment, and sporadic strikes tended to keep one sector or another of the economy operating .4 i i l t l i l I I I I I I 4 below full capacity. The Italian current account JAN. MAR. MAY JULY SEPT. NOV. JAN. MAR. 1972 1973 remained in surplus, but the general nervousness over the situation led to a build-up of adverse *Upper and lower intervention limits established in Dec. leads and lags on commercial transactions. 1971. **For the United Kingdom, intervention limits suspended Moreover, private capital outflows from Italy June 23, 1972; for Italy, intervention limits suspended on Feb. remained substantial, in reaction to the political 13, 1973. For Note see Chart 1A, p. 148. and economic uncertainties, to recurring rumors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 FEDERAL RESERVE BULLETIN □ MARCH 1973 that the lira would be devalued or floated, and a sizable amount of support to remain within later to widening differentials between domestic the band. The situation came to a head on and foreign interest rates. November 30 when rumors that Italy was plan­ Following the floating of sterling in June, the ning to withdraw from the EC band or to float Italian authorities had been given an exemption generated heavy selling in New York. In short from the formal EC procedures for intervention order the rate was pushed sharply lower and the to maintain the 2lA per cent band. This exemp­ Bank of Italy had to intervene very heavily to tion permitted intervention in defense of the lira bring it back within the EC band the next day. to be carried out in dollars rather than in other This speculative squall passed quickly, how­ EC currencies in order to avoid using gold in ever. The Italian authorities, aware that much repayments of possible debts in those curren­ of the selling of lire had reflected adverse leads cies. Heavy intervention had been necessary in and lags, raised the domestic Lombard rate from July, but the markets had calmed down by early V/i per cent to 5Vi per cent in an effort to September and the Italian authorities had more discourage Italian banks from lending lire for than offset the July reserve losses with borrow­ such purposes. In financing the outflows, Italian ings in Euro-dollar markets by Italian entities. banks had experienced a sharp increase in The lira continued at or near the bottom of foreign currency liabilities to residents, while the EC band throughout the early fall, and as building up correspondingly large increases in the dollar strengthened against other EC curren­ foreign currency claims on nonresidents. Since cies the lira dropped below its Smithsonian the authorities had directed the banks not to central rate. The exemption from intervention maintain net foreign asset positions vis-a-vis in EC currencies was extended for another 3 nonresidents, the exchange authorities provided months at the end of September, and the Italian swaps to the banks, taking in dollars and sup­ authorities were obliged to sell dollars from time plying lire at current rates. These measures to time to keep the lira rate within the 2lA per helped calm the market and allowed the au­ cent EC band. thorities to recover the recent reserve losses. Meanwhile, negotiations had begun on new Toward mid-December the banks found them­ wage contracts for nearly one quarter of Italy’s selves short of lira liquidity because of a bank labor force and, with price inflation running strike, and the Bank of Italy provided additional about 8 per cent per annum, labor threatened lire against dollars swapped on a similar basis. to strike if its substantial claims were not met. At the beginning of the new year, Italy’s At the same time, the persistent economic slug­ partial exemption from the EC intervention ar­ gishness and high unemployment rate had not rangements lapsed. The Italian authorities were responded to the expansionary monetary and once again obliged to support the lira in Com­ fiscal policies then in force. In these circum­ munity currencies rather than dollars, it having stances, the Italian authorities did not join other been agreed, however, to postpone gold settle­ EC governments in tightening domestic mone­ ments of possible debts with other EC countries. tary conditions, thereby underscoring the The lira came on offer and the rate quickly serious problems in the Italian economy. dropped to the point of requiring support against By late November commentators in the mar­ the Danish krone and the Belgian franc, the two ket, the press, and political circles were talking currencies at the top of the EC band. By the increasingly of an exchange rate adjustment end of the first week in January, this intervention through devaluation, a float, or complete with­ had tended to pull the band down relative to drawal from the EC arrangements. As this talk the dollar and, as the band moved, the lira slid became more widespread, heavy leads and lags to roughly 1 per cent below its Smithsonian built up against the lira and speculative capital central rate. Intervention was substantial at outflows accelerated. At the same time, the times, and there were growing expectations in Danish krone, then at the top of the EC band, the market that the Italian authorities would strengthened markedly on a covering of short soon be obliged to take exchange rate action positions in that currency and the lira required to resolve the situation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 155 On Saturday, January 20, the Bank of Italy ever, inflation had begun to accelerate and, in announced a two-part package to contain spec­ view of the large inflows of funds in June and ulative pressures. First, a two-tier market was July, the monetary authorities were struggling established in which all current-account trans­ to maintain control over domestic liquidity. The actions would be channeled through the offi­ French money market was nevertheless firmer cially supported commercial market and all than those in several other European centers, capital transactions would pass through a finan­ and that firmness, together with strong underly­ cial market in which the exchange rate would ing payments position, helped to keep the franc float. Second, the Italian authorities sharply at the top of the EC band and close to its reduced the period for settlement of export and Smithsonian upper limit. Indeed, as the atmos­ import payments in an effort to stop and even phere for the dollar generally improved in reverse the build-up of leads and lags against September and early October, the Bank of the lira. France moved to tighten monetary conditions There was initial confusion in the market as further by progressively raising its money mar­ traders had to sort out the new accounting pro­ ket intervention rates and by raising reserve cedures as well as to evaluate their positions requirements against bank loans above a base in connection with the split market for a lira level to 15 per cent. Consequently, although the payment. The commercial lira moved sharply franc remained comfortably away from its upper above its central rate while the financial lira intervention point, it did not get so low as other dropped to a substantial discount. Then, when continental European rates relative to the dollar. the Swiss franc was floated and the exchanges The sudden sharp downturn of sterling after generally were dominated by speculative flows, mid-October forced market participants to re­ the lira fell off, once again extending the EC assess their views of the relationship between snake to its limit. The other EC currencies rose the pound and continental European currencies. and eventually reached their upper limits against The French franc, which was still at the top the dollar, with the result that the commercial of the EC band, was particularly vulnerable. lira was correspondingly pulled to its Smithson­ Consequently, on October 26, the commercial ian central rate. Further intervention in the EC franc came on offer and dropped sharply, currencies was required to keep the rate from reaching about 1 lA per cent above its central falling below that level but not on a massive rate before leveling off. On October 30, the EC scale. finance ministers met and agreed on the need Following the announcement on February 12 for concerted action to combat inflation in their of the proposed devaluation of the U.S. dollar, countries. Subsequently, on November 2, the the Italian authorities responded by allowing the Bank of France announced a 3A percentage point commercial lira to float rather than moving increase in its bank rate to 6V2 per cent, a move directly to a new central rate vis-a-vis the dollar. which was explained by Finance Minister Gis- They nevertheless maintained the distinction card d’Estaing as illustrative of the French between the commercial and financial markets, Government’s willingness to cooperate with both of which were now on a floating-rate basis. recommendations of the EC ministers. The The commercial lira did not join in the general French authorities subsequently followed up rise in rates against the dollar until early March, with further measures of restraint, including and during the first week in March it was still another increase in reserve requirements against trading only some 4 per cent above its Smith­ loans by banks, and these actions helped keep sonian central rate. the commercial franc firm in quiet trading through mid-November. By that time, interest rates elsewhere in FRENCH FRANC Europe had risen to the extent that there was By late summer, economic activity in France no longer much relative advantage in holding was advancing rapidly, spurred in part by a French francs and funds were accordingly strong rise in exports. At the same time, how­ switched out of the financial franc and into other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 FEDERAL RESERVE BULLETIN n MARCH 1973 European currencies. Moreover, the U.S. se­ In the speculative turmoil following the in­ curities markets were attracting investment troduction of a split market for the Italian lira money from Europe, and French investors were and the subsequent floating of the Swiss franc, moving large amounts into Wall Street at a time the French franc was bid up sharply to trade when nonresidents of France were also selling once again at or near its Smithsonian upper French securities. Consequently, the financial limit. The financial franc also rose and moved franc, which for sometime had been trading at to a premium over the commercial rate once a substantial premium over the commercial rate, again. There was no significant flow of funds had fallen back sharply to trade occasionally at into France, however, and during the next 3 a small discount vis-a-vis that rate. weeks the intervention of the Bank of France By late November there was renewed concern at the Smithsonian limit was very small. In part, over inflationary pressures in France, especially continuing uncertainties over the election out­ after the release of the consumer price index come tended to give pause to the market. In for October showing a rise of 11 per cent on addition, much of the speculation was over the an annual basis, and the authorities took further possibility of the introduction of a two-tier mar­ steps to dampen that rise. On November 30, ket in Germany, and the French two-tier system the Bank of France raised its discount and already in force tended to divert speculative Lombard rates by a full percentage point to IVi pressures away from the franc. per cent and 9 per cent, respectively. Then on Following Treasury Secretary Shultz’s an­ December 7 the Government announced a new nouncement of the devaluation of the U.S. dolanti-inflationary program, including the imposi­ tion of ceilings on the expansion of bank credit CHANGES IN EXCHANGE RATES AND ic and a cut in the value-added tax (with a special OFFICIAL TRANSACTIONS public bond issue to offset the revenue shortfall resulting from the tax cut). These measures bolstered the franc only tem­ porarily, however, as the market had already become nervous over election polls in France indicating the growing potential vote for the parties of the left in the March parliamentary elections. Toward mid-December such polls set off a sharp spasm of selling, which pushed the commercial franc down by more than a full percentage point against the dollar to below the Smithsonian central rate and temporarily to the bottom of the EC band. Simultaneously, the financial franc also moved down sharply, with a widening discount against the commercial franc. Selling pressure did not last, however, and the markets turned quieter toward the end of December and in early January, with the commercial franc hovering close to the central rate. The next round of polls was somewhat “CENSTRaAteL more favorable to the Government, and Pres­ ident Pompidou and Finance Minister Giscard .4 1 1 1 I I I I 1 1 1 1 I 1 4 JAN. MAR. MAY JULY SEPT. NOV. JAN. MAR. d’Estaing made strong statements arguing the 1972 1973 fundamental strength of the franc. The spot *Upper and lower intervention limits established in Dec. franc then recovered somewhat, and by mid- 1971. January was holding around V2 per cent above **Upper and lower intervention limits around new central rate established on Feb. 14, 1973. its Smithsonian central rate. For Note see Chart 1A, p. 148. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 157 lar, the French authorities quickly reaffirmed the commercial rate in mid-August, dropped almost franc’s gold parity and established a new central to parity with the official rate by early Sep­ rate of $0.2172 for the French franc, allowing tember. the full 11.1 per cent appreciation in terms of Over the next 2 months the Belgian franc, the dollar. The franc immediately moved up to while holding at or near the top of the EC band, trade well within its new band and, although moved roughly in sympathy with the other con­ the market was still somewhat nervous over the tinental European currencies. Thus, the com­ upcoming elections, the spot rate was bid up mercial franc declined sharply in late September to its ceiling on February 23. The Bank of and the early days of October, before firming France intervened on a small scale that day, and to about 3/4 per cent from its ceiling through the rate eased. Then, on March 1 and 2, before the end of October. Meanwhile, the financial the market was closed, the Bank of France had franc had fallen quite sharply, to trade at a to take in nearly $500 million. discount vis-a-vis the commercial rate, in response to sizable Belgian purchases of U.S. BELGIAN FRANC securities and corporate outflows. The Belgian franc emerged from the turmoil of Throughout last fall economic activity in last July relatively strong and traded near its Belgium expanded, led in part by the rise in Smithsonian upper limit through early August, exports, but—as elsewhere in Europe—the rate even though the dollar was improving against of inflation also was rising sharply. Conse­ most other major European currencies. In part, quently, the Belgian authorities were quite the commercial franc was bolstered by a steadily prepared to join with other EC central banks increasing current-account surplus, reflecting in anti-inflationary measures. The National significant export growth at a time when Bel­ Bank hiked its lending rates by Vi percentage gium’s imports were still cyclically low. At the point on November 23 and by another Vi per­ same time, a special deposit of reserves at the centage point on December 21, bringing the central bank absorbed the excess liquidity basic discount rate to 5 per cent. The National created by earlier official purchases of dollars Bank also negotiated new provisions for special and sterling. deposits this time to include financial institutions With the franc rate holding at the ceiling other than commercial banks. The an­ while exchange rates elsewhere in Europe were nouncement of these measures, which would easing, on August 10 the Federal Reserve ini­ ultimately absorb domestic liquidity, contrib­ tiated a probing action in the New York ex­ uted to keeping the franc firm in the exchange change market to see whether some shift of markets, with the commercial rate trading in a expectations could be generated that would pry range of xh to 3A pbr cent from its Smithsonian the Belgian franc loose from its ceiling. Over ceiling until late in December, when it eased the course of several days, the Federal Reserve slightly. placed offers of Belgian francs in the New York Meanwhile, beginning in early October, the market at the current rate and, as the market Federal Reserve had begun a program of modest backed away, moved these offers down. On this daily purchases of Belgian francs in the market basis, $10.2 million equivalent was sold and, to repay drawings outstanding on the swap line as had been agreed at the outset of the operation, since prior to August 15, 1971. Using the francs the Federal Reserve covered these sales by thus acquired, the System repaid $55 million drawing on its swap line with the National Bank of Belgian franc swap indebtedness through the of Belgium. As the dollar improved generally end of 1972 and $25 million more in early 1973. over the next weeks, the franc continued to ease These repayments reduced total commitments to on its own and the Federal Reserve was able the National Bank to $390 million equivalent, to purchase sufficient amounts of francs in the including $35 million originally drawn on the market to repay the swap drawings by early BIS but consolidated in November into System September. The financial franc, which had been swap commitments to the National Bank of trading at a premium of xh per cent above the Belgium. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 FEDERAL RESERVE BULLETIN □ MARCH 1973 At the start of 1973 the Italian authorities CHANGES IN EXCHANGE RATES AND ID resumed full participation in the EC currency OFFICIAL TRANSACTIONS support arrangements—the “snake in the tun­ BILLIONS OF DOLLARS 1.6 nel”—thereby undertaking to support the lira NETHERLANDS in EC currencies rather than exclusively in dol­ 1-2 lars. As the EC band became extended to its full 2lA per cent width, with the Belgian franc (and the Danish krone) at the top and the lira at the bottom, the arrangements obliged the National Bank of Belgium and the Bank of Italy to intervene in each other’s currency (providing francs against lire). This infusion of francs into the market tended to drag the franc rate down against the dollar to a low of 1 lA pbr cent above .4 I f I I I I I f I I I 4 JAN. MAR. MAY JULY SEPT. JAN. MAR. its Smithsonian central rate at one point in 1972 1973 mid-January. The Belgian franc snapped upward tempo­ *Upper and lower intervention limits established in Dec. 1971. rarily after the introduction by the Italian au­ **Upper and lower intervention limits around new central thorities of a dual market system for the lira rate established on Feb. 14, 1973. For Note see Chart 1A, p. 148. on January 22. Then, in the more generalized unsettlement following the floating of the Swiss rate. Since the Belgian franc had remained close franc, the rate for the Belgian franc continued to its ceiling, the spread between the two cur­ to rise, in concert with other European curren­ rencies reached 1 Vi per cent and, under the cies. Late in January the Belgian franc reached terms of the Benelux agreement linking the two its upper limit, and the Belgian authorities took currencies, the Netherlands Bank was obliged in some $250 million through February 9. to sell Belgian francs against guilders to prevent Following Treasury Secretary Shultz’s an­ the spread from widening still further. nouncement of the proposed devaluation of the Early in September, the Netherlands Bank dollar, the Belgian authorities set a new central moved to reassert greater control over domestic rate of $0.024793 for the franc that allowed credit conditions in view of the persistence of fully for that devaluation. New intervention a high rate of inflation, since inflation remained points were also established at 2lA pbr cent on a major problem even though economic activity either side of the new central rate. In the subse­ continued sluggish. Under a gentlemen’s agree­ quent period of disorderly trading the commer­ ment with the commercial banks and postal cial franc was also bid up to its upper limit, authorities, minimum reserve requirements with substantial intervention by the Belgian against deposit liabilities were introduced for the authorities on March 1. Thereafter, the ex­ first time since 1963. The bank made it clear, change market was officially closed and the however, that it intended to allow the market franc traded slightly over its new ceiling. to remain sufficiently liquid to avoid triggering new inflows of foreign funds. It underscored this DUTCH GUILDER intention by cutting its discount rate from 4 per Following the large foreign exchange inflows cent to 3 per cent and, similarly, by lowering of the early summer, the money and credit other lending rates 1 percentage point to bring markets in the Netherlands were awash with them more into line with the very low rates liquidity. Consequently, there was an outflow prevailing in the Amsterdam market. of funds from the Netherlands, which led to an Domestic liquidity remained plentiful for the easing of the guilder despite improvement in the time being, however, and the guilder declined underlying balance of payments situation. By even further. The Belgian franc also eased the end of August the guilder had fallen to somewhat during this period, but the Benelux within Vi per cent of its Smithsonian central band was still stretched to its limit and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 159 Netherlands Bank continued to have to intervene came under unusually heavy pressure, the in francs. The Dutch authorities then moved to Netherlands Bank was forced to take in sizable speed up their absorption of domestic liquidity amounts of dollars. By Friday, February 9, its by undertaking open market sales of securities intervention had swelled to just under $400 on September 12. In response, the Dutch money million. market tightened, the guilder steadied, and with After Treasury Secretary Shultz announced the Belgian franc weakening the spread between the proposed change in the U.S. parity on Feb­ the two currencies narrowed. During subsequent ruary 12, the Netherlands authorities set a new weeks the Netherlands Bank was able to pur­ central rate that fully reflected an 11.1 per chase francs to settle with the National Bank cent appreciation of the guilder relative to the of Belgium part of the debt arising out of the dollar. There were no reflows, however, and the earlier intervention; nevertheless, a portion of guilder quickly moved up to trade near its new the obligation was settled in reserve assets. central rate. As the market situation deteriorated Late in October, the EC finance ministers over the next weeks, the guilder continued to agreed on a combined effort to bring inflation rise and, by February 28, the Netherlands Bank under control in their respective countries. On was obliged once again to absorb dollars. After November 3 the Netherlands Bank raised its taking in more than $750 million by the close discount rate by 1 percentage point, back to 4 of business on March 1, the Dutch authorities per cent. At the same time the Dutch Govern­ joined other European governments in suspend­ ment continued discussions with labor and em­ ing official dealings as intensive international ployer groups to negotiate voluntary limits on negotiations began. wage and price increases. With these negotia­ tions at a critical stage and the recovery of the JAPANESE YEN Dutch economy still tentative, the Netherlands Bank did not follow the next rounds of increases Japan remained in massive payments surplus in discount rates on the European continent in throughout 1972, as the trade surplus grew December and early January. Even so, the further. To be sure, some of this widening money market in Amsterdam held firm, and the reflected the immediate terms-of-trade effects of guilder remained steady vis-a-vis the other EC the 1971 revaluation and, for the early part of currencies and the dollar. the year at least, the sluggishness of the Japa­ After January 22, the guilder was caught up nese economy. Nevertheless, there was a gen­ in the generalized rush into European currencies eral conviction in the exchange markets that the that followed the introduction of a split market yen was still undervalued. Consequently, the for the Italian lira and the floating of the Swiss yen continued in strong demand throughout the franc. As the movement out of dollars gathered late summer and early fall, partly because of steam, it tended to focus on those currencies the underlying payments surplus, but also be­ that were neither floating nor trading in split cause of commercial leads and lags and outright markets. The guilder, with only a very limited speculation in favor of the yen. version of the two-tier market (the “O” guilder While rejecting further direct action on the circuit for foreigners’ purchases of Dutch se­ exchange rate, the Japanese authorities took curities), and also with close traditional ties to several measures during the fall to bring Japan’s the German mark, came into relatively heavy external position into better balance. In Sep­ demand. By the end of January, the guilder was tember, the Bank of Japan abolished the re­ bid up to its Smithsonian ceiling. In the opening maining vestiges of longstanding export promo­ days of February, the Federal Reserve, utilizing tion measures, whereby the authorities made $20.4 million equivalent of balances accumu­ low-interest loans against export trade bills and lated in the market last fall, began to sell discounted yen-denominated export usances. guilders in the New York market to provide Then, on October 20 the Japanese Government some resistance to this advance and maintain announced a five-point program, including an orderly market. Nevertheless, as the mark across-the-board reduction in import duties, in­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 FEDERAL RESERVE BULLETIN □ MARCH 1973 creases in some import quotas, a voluntary from its ceiling, reflecting seasonal slack in export restraint plan, and a supplemental budget conversions of Japanese export receipts and a designed to shift resources out of export pro­ partial unwinding of leads and lags. The yen duction and into public goods and services. On continued to trade quietly, even as the turmoil the same date, it decided to impose statutory in the European exchange markets flared up after controls on foreign portfolio investments in mid-January. It was only after continental Eu­ Japan. Nevertheless, the yen remained pinned ropean currencies had reached their Smithsonian to its upper limit, and the Bank of Japan con­ limits requiring massive official intervention, tinued to purchase sizable amounts of dollars that the Japanese yen returned to its ceiling and almost daily. To slow the growth of official the Bank of Japan also began to absorb dollars. reserves, the Ministry of Finance continued its In the 8 trading days through February 9, total program of depositing dollars with the Japanese intervention by the Bank of Japan amounted to exchange banks so as to enable them to repay $1.1 billion. With negotiations among govern­ short-term dollar liabilities to U.S. banks. ments on the question of the alignment of ex­ Taken together, in September and October a change rates then in progress, the Japanese further $600 million was so deposited, while authorities closed the exchange market on Sat­ official reserves increased by a net of $1,424 urday, February 10, until further notice. million. In the course of these discussions, the Japa­ The massive inflows continued through No­ nese Government decided that the yen would vember and into December, although the Bank be allowed to float temporarily, although the of Japan’s daily dollar purchases tended to Bank of Japan was still prepared to intervene slacken somewhat. In part, this slowdown re­ to moderate movements in the rate. When fullflected the Finance Ministry’s efforts to prevent scale trading resumed on February 14, the yen abnormal prepayments for Japanese ships and rose sharply and soon reached 17% percentage to promote outflows of Japanese funds for in­ points above its Smithsonian central rate. The vestment abroad. Moreover, speculation on an market then quieted and the yen tended to settle early revaluation of the yen died down when back. However, in the renewed crisis atmos­ parliamentary elections were scheduled in Japan phere that developed in the exchanges at the for early December and traders began to believe end of February, the yen again rose sharply. that action on the exchange rate was not likely until after those elections. CANADIAN DOLLAR Furthermore, the Japanese economy was ex­ panding rapidly by then and there was an unu­ Through the late summer and early fall the sually sharp jump in wholesale prices. The trade market for the Canadian dollar remained in accounts, while still in substantial surplus, were rough balance, with the rate moving narrowly beginning to show some influence both of the between $1.01^ and $1.01%. Canadian money revaluation itself and of the pick-up in the market rates were generally lower than those Japanese economy. The yen nevertheless re­ elsewhere, and the Canadian current-account mained at its ceiling until late in December, deficit had deepened, but substantial long-term when the Japanese banks found themselves short capital inflows continued to support the ex­ of dollars for year-end needs. The spot rate then change rate. The parliamentary election of Oc­ eased below its ceiling for the first time since tober 30, in which neither major party in Canada June, and the Bank of Japan was able to sell achieved a clear majority, was a jolt to the modest amounts of dollars. In November and market. The immediate response was heavy December, official reserves showed a further professional selling, and the Bank of Canada rise of $569 million after the placement of an acted to steady the market. The pressure soon additional $800 million of special deposits by passed, however, and the rate settled around the the Ministry of Finance with the exchange $1.011/2 level through much of November. The banks. political situation nevertheless continued to be Early in 1973, the yen held marginally away a matter of concern in the market, as traders Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 161 expected that the new Canadian minority gov­ CHANGES IN EXCHANGE RATES AND ernment would pursue more expansionary eco­ OFFICIAL TRANSACTIONS nomic policies in response to the evident con­ BILLIONS OF DOLLARS PER CENT cerns of the electorate. 4.0 On November 27, the Canadian-chartered banks announced a reduction in their rates on certificates of deposit by Vs to lA pbrcentage 3.0 point. These reductions, though modest in size, had a substantial impact on the exchange mar­ 2.0 ket, as they were unexpected and occurred at a time when interest rates were rising sharply 1.0 in the United States and Europe. Consequently, + on the next trading day, the Canadian dollar 0 came on offer in the market. Meanwhile, traders were still concerned over the political situation in Canada, U.S. commer­ cial interests were beginning to repatriate funds for year-end purposes, and conversions of Ca­ nadian borrowings abroad had tapered off. Thus, when offers appeared in the market, there were few buyers, and the selling snowballed. The Bank of Canada continued its policy of intervening to maintain an orderly market, but the rate dropped IV2 cents, reaching $0.99% on JAN. MAR. MAY JULY SEPT. NOV. JAN. MAR. December 7 before staging a partial recovery. _____________________1972______________________1973 There were, however, wide fluctuations in the *Upper and lower intervention limits established in De­ rate through the balance of the year. Over No­ cember 1971. vember and December, Canada’s official re­ * intervention limits suspended on Feb. 14, 1973. ■ Measured as percentage deviations from the $0.92!^ serves declined by $180 million. official parity established in May 1962. The Canadian dollar By early January the market had settled has been floating since June 1, 1970. For Note see Chart 1A, p. 148. down, with trading generally around the $1.00 level. At that point, expectations were for a Japan, the Canadian dollar came into strong continuing softness of the Canadian dollar, demand. After Treasury Secretary Shultz’s an­ partly for seasonal reasons and partly because nouncement that night of the proposed devalua­ there were still a few large foreign borrowings tion of the U.S. dollar, Canadian Finance Min­ by Canadian entities in the pipeline. Moreover, ister Turner issued a statement that the Canadian Canadian credit markets were liquid, and there authorities were prepared to take strong meas­ were continuing expectations that the Govern­ ures to keep the Canadian dollar from rising ment’s upcoming budget message would chart relative to the U.S. dollar. When a wave of an expansionary course. Consequently, the Ca­ demand for Canadian dollars developed on the nadian dollar was largely ignored in the specu­ following day, the Bank of Canada intervened lative turmoil that erupted in late January in the heavily, buying U.S. dollars. The spot rate markets for European currencies and for the reached $1.01% before turning around follow­ Japanese yen, and the spot rate for the Canadian ing the reopening of European exchange mar­ dollar continued to fluctuate narrowly near kets. The rate then fell sharply, and the Bank $1.00 through February 9. of Canada was just as active in the market when The following Monday, February 12, how­ the Canadian dollar moved down as it had been ever, with widespread reports that the U.S. on the way up. The rate bottomed out just below Government was negotiating an exchange rate $1.00% and fluctuated within a relatively nar­ realignment with the governments in Europe and row range through the rest of February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 FEDERAL RESERVE BULLETIN □ MARCH 1973 EURO-DOLLAR o YIELD COMPARISONS ° 3-MONTH MATURITIES During the closing months of 1972, Euro-dollar PER CENT rates tended to rise more in line with the gradual advance of money rates in the United States than with the steeper upswing of interest rates in major European financial centers. Throughout the year the supply of Euro-dollars had steadily expanded. The continuing U.S. payments defi­ cit had further increased the volume of dollars in foreign hands, and some of those funds were deposited in the Euro-dollar market. Moreover, private and official sources in countries outside the Group of Ten that had significant balance of payments surpluses added to the Euro-dollar pool. The Japanese banks, their resources bol­ stered by dollar deposits with them by the Japa­ nese authorities, were notably active in the market, stepping up both their direct loans to Weekly averages of daily rates. customers and their loan participations. Further, there was a record volume of new issues in the rency uncertainties, to reduce their dollar expo­ Euro-bond market in 1972, and issuers placed sure. large portions of the proceeds of these bond On the demand side, the sharply tightened sales in the Euro-dollar market until needed for credit conditions in European financial centers actual outlays. Partly offsetting these new sup­ might have led to even greater borrowings of plies of funds were withdrawals from the market Euro-dollars during the fall and early winter, by investors wishing to take advantage of the except for the various measures taken in almost higher interest rates in domestic European every European country to prevent inflows from money markets or, in view of continuing cur- abroad. The impact of controls was most strongly felt in Germany, where the Bardepot—a 50 per YIELD COMPARISONS cent reserve requirement against new foreign 3-MONTH MATURITIES EXCEPT WHERE NOTED borrowings—often inhibited German firms from PER CENT borrowing Euro-dollars. Constraints on capital inflows were enforced in other continental countries and, consequently, demand from Eu­ ropean corporate customers expanded at only a fraction of the rate of domestic credit expansion. By contrast, the demand from the developing countries and, to a growing extent, from East European countries expanded greatly. These borrowers, mostly public or semipublic enter­ prises, raised funds principally for medium-term maturities. U.S. banks continued to be active on both sides of the Euro-dollar market but did not add greatly to the net supplies coming into the market or to demands on the market. Thus, although U.S. banks’ liabilities to their branches showed fairly wide week-to-week fluctuations, Euro-dollars are weekly averages of daily rates; CD’s, Wednesday data. outstanding liabilities at the year-end were still Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 163 around $1.5 billion. The U.S. banks tended to pean currencies that developed in January and be most active at the short end of the maturity early February 1973. As the crisis in the foreign structure, borrowing overnight Euro-dollars exchange markets gathered strength, traders liq­ from foreign banks or their foreign branches to uidated earlier placements in the Euro-dollar meet immediate reserve needs. In addition, for market or even bid for additional Euro-dollars protracted periods the New York agencies of to finance purchases of other currencies. This Canadian banks and branches of other foreign subjected the Euro-dollar market to a severe banks took advantage of arbitrage opportunities squeeze, and rates rose across the board. Even afforded by lower rates on overnight Euro­ after the announcement of the proposed deval­ dollars to make placements in the Federal funds uation of the dollar on February 12, Euro-dollar market. rates continued to shoot upward, with the 3- The general balance of demand and supply month rate reaching as high as 9 XA pbr cent by in the Euro-dollar market that had prevailed March 1. Thereafter, the immediate pressures during most of the fall months was upset during eased somewhat, and early in the following the massive rush out of dollars and into Euro­ week the 3-month rate declined somewhat. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Arthur F. Burns, Chairman, While we have been experiencing robust ex­ Board of Governors of the Federal Reserve pansion in the domestic economy, our foreign System, before the Joint Economic Committee, trade has proved singularly disappointing. True, February 20, 1973. exports rose substantially last year, but the dol­ lar value of our imports increased even more. It is a pleasure to meet once again with the Joint The vigor of our economic expansion was a Economic Committee to present the views of major cause of the rise in imports. Other factors the Board of Governors on the condition of the were also at work, including the explosive in­ national economy. crease in energy requirements that caused our The past year has witnessed a remarkable oil imports to grow. expansion of economic activity. The physical Our over-all international economic accounts output of goods and services rose 7.6 per cent have continued to be seriously out of balance. over the past four quarters, and production in The Smithsonian Agreement of December 1971 the industrial sector advanced even faster. The was recognized by all concerned as a temporary number of persons employed in civilian jobs has arrangement, but it was also felt that it would of late averaged about 2Vi million above year- give the nations of the world sufficient time to earlier levels. Last month, the rate of unem­ rebuild the monetary system on a permanent ployment fell to 5 per cent, or nearly a full basis. As events have turned out, less was percentage point below the level of a year ago. achieved through the Smithsonian Agreement Economic expansion during the past year was than we or other nations expected from it. also well balanced, and employment therefore Serious conversations on international monetary recovered in practically all major sectors of the reform have been under way for several months, economy. Consumers have been spending freely but they have gone forward much too slowly. on a wide array of goods and services. The Meanwhile, another monetary crisis developed housing industry has defied earlier predictions in recent weeks. The reasons for its precise of an impending decline. Business expenditures timing may be debated, but there can be no for capital equipment have risen substantially. doubt about the underlying cause—namely, the And inventory investment, a laggard in this huge continuing deficit in the balance of pay­ recovery, has also joined the economic advance ments of the United States, which has had its of late. counterpart in the persistent surpluses of other As we see the state of business, the current countries. expansion has considerable momentum. Con­ The progress we need in our international sumer buying and business investment in fixed accounts is enormous, and the way to a lasting capital are both likely to continue their upward solution does not depend on us alone. The course. Business firms, moreover, will need to devaluation of the dollar announced last week, add substantially to their inventories in coming together with the realignment of exchange rates months to accommodate a rising pace of sales. accepted by other countries, should prove help­ A good increase in physical output during 1973 ful over the longer run. Prompt action is now thus appears in prospect. As production in­ needed to revise the par value of the dollar and creases, the demand for labor will grow, and to adopt new legislation to promote expansion we may look forward with some confidence to of international trade and to help restore equi­ further declines in unemployment during 1973. librium in our international transactions. 164 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

In the months immediately ahead, opposite is an unusual pattern of behavior in an advanced influences will play on our foreign trade. The phase of a business-cycle expansion. currency realignment will have a perverse in­ Let me turn next to the role that monetary fluence until demand patterns become readjusted policy has played in recent developments. to the new structure of exchange rates. On the A year ago, as the committee will remember, other hand, the expansion of economic activity unemployment was still nearly 6 per cent of the abroad will tend to bolster our exports in coming labor force, and industrial production had not months. Also, our underlying competitive posi­ yet regained pre-recession levels. With an ef­ tion in world markets should improve as a result fective wage and price policy in place, the of recent trends in costs and prices in the United central task of monetary policy was to promote States and abroad. expansion in economic activity on a sufficient In most industrialized nations, inflation last scale to reduce the gap between actual rates of year was proceeding at a pace substantially production and our full employment potential. faster than in the United States. Our own infla­ There can be no doubt that ample availability tionary problem, though worrisome, has thus far of credit contributed materially to the expansion been under better control. In the first half of of economic activity over the past year. For 1971, prior to the imposition of wage and price example, the impressive rise in consumer pur­ controls, the rate of inflation was about 5 per chases of new autos and other durable goods cent, judging by comprehensive price measures could hardly have occurred without a pro­ for goods and services produced in the private nounced increase in consumer instalment credit. sector. The inflation rate slowed to 3l/i per cent Again, the exceptional growth of residential in the first half of 1972 and to about 3 per cent mortgage loans contributed powerfully to sus­ in the latter half of last year. taining new housing construction at record This moderation in the pace of inflation has levels. I am also convinced that the stability of resulted from reduced pressure of rising costs long-term interest rates strengthened investor on prices. Unit labor costs in the private non­ confidence and facilitated the expansion of farm sector rose last year by only 1.6 per cent, business capital investment; the weakness of compared with 3.4 per cent in 1971 and 6.6 this sector, it may be recalled, had seriously per cent in 1970. The improvement stemmed restricted economic recovery during 1971. mainly from larger increments to productivity, Early in 1972, monetary policy sought to but a somewhat slower advance in wages was make up for the shortfall in the growth of money also a factor. balances in late 1971. The rate of monetary The progress we have thus far made in mo­ expansion was, therefore, high in the first derating inflation is, however, insufficient. quarter of 1972. As the year progressed, evi­ There is no room for complacency when the dence accumulated that economic expansion average level of prices is still rising quite rap­ was quickening and that increasing demands for idly, when it appears likely that productivity credit were putting upward pressure on short­ improvements will fall short of last year’s fast term market interest rates. This gave rise to pace, when wage rate increases—if we may some concern about the market for longer-term judge from the closing months of last year—are securities. It nevertheless was clear that efforts becoming larger again, when imported goods to prevent a rise of short-term market rates are going to cost more as a result of the recent would result in excessively rapid expansion of devaluation of the dollar, and when American the monetary aggregates. families are facing sharply higher grocery bills. Federal Reserve policy therefore tolerated the The unhappy recent rise in food prices is rise in short-term market interest rates that especially disturbing. This should not, however, began last March and has continued since then. blind us to the remarkable accomplishment of By the end of 1972, yields on Treasury bills, the past year and a half—a period when price commercial paper, Federal funds, and on other advances became smaller while real output and short-term market instruments had increased employment were growing very briskly. This about 2 percentage points from their lows, and 165 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 FEDERAL RESERVE BULLETIN □ MARCH 1973 some further upward adjustment has occurred nonborrowed reserves—from a 12 per cent an­ since the beginning of this year. nual rate in the first half of the year to 2 per Past experience indicates that a rise in short­ cent in the second. Member banks reacted to term market interest rates is usually followed this more reluctant provision of reserves as they by slower growth of the monetary aggregates. customarily do—that is, by borrowing more at This was an objective of monetary policy during the discount window. There are, however, 1972, and the rate of increase in the narrowly limits to such a process. Bankers know that they defined money stock—that is, demand deposits cannot rely on these borrowings in more than plus currency in public circulation—did in fact limited amounts or for more than limited time moderate during the late summer and early fall periods. of 1972. Late in the year, however, additions Developments have thus been under way for to money balances spurted to a pace well above some time that should result in somewhat slower what the Federal Open Market Committee de­ growth of the monetary aggregates. The Federal sired. Reserve has also taken other restraining actions. The precise causes of the unusual increase Late in November, the Board raised margin in money stock last December are still some­ requirements to forestall excessive use of credit what elusive. One known factor is that the in the stock market, and we thereby also indi­ revenue-sharing checks received by States and cated our concern about potential inflationary localities temporarily raised the cash balances developments. And in January, the discount rate of these governmental units. It may also be that was raised to bring it into better alignment with a change during November in Federal Reserve market rates of interest. This move served notice regulations governing bank remittances for cash to the banking system and to the public at large letters contributed to the spurt. In any event, that supplies of money and credit were being the December bulge in money growth proved brought under a tauter rein. to be short-lived. This January the narrowly The current economic expansion has entered defined money stock showed no further in­ a more sensitive phase, in which new problems crease. may be encountered. A substantial further in­ Increases in the money stock are very uneven crease of real output is needed to provide em­ over time, and rates of increase must be meas­ ployment opportunities for a growing labor ured over more than a few months to determine force, and to make possible further progress in the thrust of monetary policy. Thus, the nar­ reducing unemployment. However, with labor rowly defined money stock grew by 7.4 per cent and capital resources being utilized more fully, from the fourth quarter of 1971 to the fourth the expanding demand for goods and services quarter of 1972. This was actually a little less could begin to pull prices upward and thereby than the increase in real output of goods and reinforce prevailing cost-push pressures. In the services and far less than the 11 per cent rise absence of monetary and fiscal restraint, excess in the dollar value of output. If the money aggregate demand might easily re-emerge and stock had grown at a significantly lower rate, touch off a new round of inflation. we would probably have experienced smaller This must not be permitted to happen. The gains in real output and employment last year, hard-won gains our Nation has made in the and unemployment would be at a higher level struggle against inflation must not be frittered now. away. To do so would sap the confidence of In view of the lag in the workings of monetary our people in the integrity of government. We policy, the Federal Reserve did, however, deem must also be mindful of the fact that inflation it desirable to move gradually toward a less is now being resisted abroad by more stringent expansive monetary policy during 1972. In the monetary policies and also by incomes policies first quarter, the reserves for supporting bank- in some countries. If the potential benefits of deposit expansion came entirely from open the new exchange rate realignment are to be market operations. But as the year moved on, realized, the rate of inflation in the United States a sharp reduction occurred in the additions to must be reduced further. For monetary policy, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 167 these considerations indicate a need to practice procedures be reformed so that Federal spending greater moderation during 1973 in the provision can be brought under better control. of new supplies of money and credit. Early evidence of better control over Federal The Federal Reserve will remain mindful, expenditures would go a long way toward as­ nevertheless, of its responsibility to support suring the public that excess aggregate demand further gains in real output and employment. will not re-emerge in 1973 and in later years. Success in that endeavor will mean continued But there are times when overheating of the expansion in business activity, and thus rising economy originates in the private sector. At such credit demands. Market interest rates may, times, flexible fiscal tools can help to curb therefore, rise further, as they typically do in private spending. the expanding phase of the business cycle. But Some months ago, the Board of Governors it is my hope and expectation that sharp in­ urged the Congress to consider a variable in­ creases in long-term rates can be avoided. vestment tax credit as a means of improving I can assure this committee of two things. the conduct of economic stabilization policy. First, the Federal Reserve recognizes that in The essence of the proposal is that the President order to keep the monetary and credit aggregates be given authority to initiate changes in the under good control, it will be necessary to avoid investment tax credit. At the same time, efforts to hold open market interest rates at Congress would retain its traditional control artificially low levels. Second, the Federal Re­ over taxes and act as a full partner in making serve does not intend to permit severe stringen­ the needed adjustments. For example, the Pres­ cies to develop in the credit markets or to try ident might be permitted to change the tax credit to correct for every error in public or private within a specified range—say, between zero and policies. 10 or 15 per cent, subject to modification or The proper role of monetary policy in the disapproval within 60 days by Congress. achievement of our national economic objec­ This proposal, the Board believes, would tives is a comparatively modest one. Monetary facilitate making the timely adjustments re­ policy can help to establish a financial climate quired for a more effective stabilization policy. in which prosperity and stable prices are attain­ Prompt action by the Congress on a flexible able. But it cannot guarantee the desired out­ investment tax credit would make it possible to come; the task is much too large. use this instrument, if it were needed, to curb The course of fiscal policy certainly has a vital the growth of business capital expenditures later bearing on reaching our national economic ob­ on in this expansion. jectives. It now appears that Federal budget Improved policies of managing aggregate de­ outlays in fiscal 1973 will be held to $250 mand, important though they be, will not of billion—or some $6 billion below what the staff themselves suffice to assure prosperity without of the Joint Committee on Reduction of Federal inflation. Structural reforms are also needed. Expenditures estimated just a few months ago. Not a few of our corporations and trade unions This would be a welcome achievement. Fur­ now have the power to exact rewards that ex­ thermore, the proposed budget for fiscal 1974 ceed what could be achieved under conditions calls for a balance between revenues and ex­ of active competition. As a result, substantial penditures at full employment. upward pressure on costs and prices may emerge However, the administration’s budget for fis­ long before excess aggregate demand has be­ cal 1974 can hardly be called austere. After all, come a problem. total outlays are scheduled to rise an additional There is no easy path to meaningful structural $19 billion, or 8 per cent. The national interest reform. Genuine progress would require that we would be well served in present circumstances undertake to curb abuses of economic power by if the Congress saw fit to stay at or below the both business firms and trade unions, besides expenditure limits proposed by the President. re-appraising a host of laws and governmental It is also highly important, as the members of regulations that interfere with the competitive this committee well know, that congressional process. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 FEDERAL RESERVE BULLETIN □ MARCH 1973 Let me turn to the role that private policies Our Nation’s financial institutions must also must play to ensure that inflationary develop­ make their contribution if the stabilization pro­ ments do not frustrate governmental efforts to gram is to succeed. It will be in their own promote prosperity without inflation. interest, as well as in the national interest, to Since August 1971 our Nation has been en­ manage their lending policies more cautiously gaged in a new effort to influence wage and price in the months ahead. Any rapid rise in commit­ decisions through direct controls. In its present ments for future lending, for example, would phase, greater reliance is placed on self-disci­ increase the exposure of individual financial pline in abiding by rules of appropriate behav­ institutions to a liquidity squeeze, and at the ior. Phase III, however, is hardly a voluntary same time contribute to an inflationary round program. Several areas of the economy remain of spending on the part of businesses and other under mandatory control. Furthermore, the borrowers. President has indicated his firm intention to take Wise bankers will shun the temptation that whatever action that may be necessary to arises during a period of business expansion to achieve compliance with the objectives of the step up their lending activities. If excessive program. He has ample authority to do so under extensions of credit are averted through exercise the Economic Stabilization Act. of prudence by lenders and borrowers, the need Yet, in the final analysis, the workability of for strong monetary restraints will not arise. any form of controls in an economy as large In recent weeks, I have felt a sense of concern and complex as ours depends on public developing across the Nation about the ability acceptance of the need for controls and on of the United States to deal with the problems cooperation of the participants in the program. that prosperity creates. This concern is under­ Phase II was successful in moderating wage standable. We live in troubled times, and mem­ rates and prices because of the widespread sup­ ories are still fresh of the damage produced by port it received from the American public, in­ inflation during the latter years of the I960’s. cluding business firms and the trade unions. But there is no need to be afraid of prosperity. Phase III will enjoy a reasonable measure of Our national economic policies are now set on success if that spirit of cooperation continues, a course that promises to bring us closer to the and if labor and management join together to goal of a prosperous economy with stable increase productivity and to hold down increases prices. If we persevere, as we must, that objec­ in wage rates and prices. tive can be realized. □ Statement by Arthur F. Burns, Chairman, Treasury’s reserve assets will be written up by Board of Governors of the Federal Reserve 11.1 per cent, or about $1.4 billion. The dollar System, before the Committee on Banking, value of our subscriptions and contributions to Housing and Urban Affairs, U.S. Senate, several international financial institutions will February 27, 1973. need to be increased. In addition, there will be an increase in the dollar value of certain Treas­ ury and Federal Reserve liabilities connected The Board of Governors of the Federal Reserve with operations in foreign currencies. The net System supports prompt enactment of S. 929, result of these financial and accounting adjust­ the bill to amend the Par Value Modification ments will be to leave budgetary expenditures Act of 1972. and the over-all dollar assets and liabilities of The bill proposes a new par value for the the U.S. Government little changed. dollar in the International Monetary Fund. This The Federal Reserve System will be affected proposed change will have several financial and by these financial and accounting adjustments accounting consequences. The value of the in two ways. First, the Treasury will be able Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 169 to issue new gold certificates to the Federal ket crisis that preceded the February 12th deci­ Reserve Banks in an amount equal to the in­ sion to propose a change in the par value of crease in the book value of the Treasury gold the dollar was the large and persistent deficit stock. To the extent that the Treasury does so, in the U.S. balance of payments and, as its its cash balance will rise. A subsequent return counterpart, persistent surpluses of foreign of the Treasury cash balance to previous levels countries. Our deficit of about $10 billion to would, of itself, result in an equivalent increase $11 billion on official reserve transactions in in bank reserves; but such an increase can be 1972 was less than the huge $30 billion deficit readily offset—in whole or in part—by Federal of 1971, but it was still enormous by any Reserve open market operations. historical standard. As a consequence, the lia­ The other effect on the transactions and ac­ bilities of the United States to foreign monetary counts of the Federal Reserve will occur in authorities rose to $61 billion by the end of last connection with settlement of commitments year. under the reciprocal currency arrangements with Against this background, it is not surprising foreign central banks. Use of a “swap” ar­ that exchange markets were sensitive to recent rangement by the Federal Reserve entails an economic developments. Publication of our obligation to deliver a specified amount of November and December trade figures, which foreign currency at a future date. Similar com­ indicated that the trade deficit during 1972 mitments have been undertaken by the Treasury would reach nearly $7 billion, had an unsettling on its debt securities denominated in foreign effect on financial opinion. Recent sharp in­ currencies. creases in wholesale prices coincided with As of February 12, 1973, the Federal Reserve doubts voiced in the public press about the had outstanding swap drawings of $1.66 billion, effectiveness of Phase III. Financial sentiment almost all of which were originally undertaken may also have been adversely affected by the prior to August 15, 1971. Inasmuch as the dollar continuance of a large Federal budget deficit at prices of the affected currencies—Swiss francs, a time of rapid economic expansion. Belgian francs, and German marks—were fur­ In late January confidence in the stability of ther increased as a result of the currency re­ exchange markets deteriorated when the Italian alignment of February 12, there will be an Government adopted a two-tier market and the additional cost to the Federal Reserve in liqui­ Swiss authorities decided to let their currency dating these drawings. The cost attributable to float. As excitement mounted in exchange mar­ the February 12th realignment is presently esti­ kets, particularly in the case of the German mated at nearly $200 million. The total cost mark, close consultation was maintained by our attributable to both the Smithsonian realignment Government with other governments. The Fed­ and this February’s realignment is estimated at eral Reserve System and the Treasury undertook less than $400 million. some intervention in German marks and Dutch The purpose of the swap transactions carried guilders in a cooperative effort with other central out prior to August 15, 1971, was to defer or banks to maintain order in exchange markets. reduce declines in reserve assets that would Then, when large-scale speculation failed to otherwise have occurred. The losses incurred at diminish, the President decided on February 6 the time these swaps are settled reduce the to take the lead in trying to find a resolution earnings of the Federal Reserve System that are of the crisis by promptly exploring alternative turned over to the Treasury. But against these courses of action with other countries. On losses the Treasury has a roughly offsetting Monday, February 12, Secretary Shultz an­ profit on the gold and other reserve assets that nounced that an agreement had been reached. it still holds because foreign central banks were As you know, the President has proposed a willing to accept Federal Reserve swap draw­ devaluation of the dollar by 10 per cent—that ings instead of demanding reserve assets from is to say, the value of the dollar in terms of the Treasury. gold or SDR’s would decline by 10 per cent. The fundamental cause of the exchange mar­ Stated differently, our official price of gold Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 FEDERAL RESERVE BULLETIN □ MARCH 1973 would rise by 11.1 per cent or from $38.00 to exchange-rate changes have placed us squarely $42.22 per ounce, and the price of SDR’s would on the road back toward equilibrium in our bal­ likewise rise by 11.1 per cent or from $1.09 ance of payments. to $1.21. The bill you are now considering will We must guard, however, against taking that give formal effect to the devaluation. It should improvement for granted. The deficit in our be noted that the newly proposed official price international transactions, while welcome in the of gold, like the old official price, is an ac­ early postwar years, has persisted since 1950. counting measure and must not be confused with The few signs of improvement that have ap­ the market price of gold. peared now and then have proved evanescent. The response of foreign countries to the By now, the deficit in our balance of payments proposed devaluation of the dollar has on the has seeped into the thinking of people concerned whole been favorable. A large number of coun­ with finance around the entire world. The per­ tries have left unchanged the value of their sistence of this deficit, its recent huge size, and currency in terms of gold, thereby allowing their the associated surpluses elsewhere have weak­ currency to appreciate against the dollar by the ened the international monetary system and have full amount of the dollar devaluation. Many caused uncertainty to spread among traders. other countries have devalued part or all of the Restoration of confidence in the international way with the dollar, but in most cases these financial order is essential. Indeed, confidence actions appear to be consistent with their bal­ in our own economy will be strengthened if we ance of payments situation. Countries with set for our Nation a firm and definite goal for floating currencies—which now include Japan, the balance of payments—namely, to end the the United Kingdom, Italy, Canada, and Swit­ deficit within a period of 1 to 3 years. zerland—have so far intervened in their ex­ The recent realignment of exchange rates, as change markets on only a small scale. In view I have already noted, has put us well on the of the need to correct the existing pattern of road towards equilibrium in the balance of pay­ payments imbalances, it is particularly encour­ ments. To stay firmly on that road, we must aging that the Japanese yen has appreciated not make sure that our economic policies, taken as only against the dollar but also by a significant a whole, are realistically adjusted to our needs. amount against other major currencies. It cannot be emphasized too strongly that When these recent exchange-rate changes are changes in exchange rates are not—and can taken together with those embodied in the never be—a substitute for sound domestic poli­ Smithsonian realignment, it is clear that the cies. The primary task of economic policy this U.S. competitive position has improved sub­ year is to steer our expanding economy onto stantially. The balance of payments effects re­ a noninflationary course. This goal is essential sulting from this improvement, however, will for domestic reasons, and it is no less vital for be fully felt only after a considerable lag. In­ our international position. Unless our recent deed, in the months immediately ahead, the success in reducing the rate of inflation is ex­ effect of the devaluation on the dollar value of tended, the improvement in the balance of pay­ imports is likely to be perverse. The reason is ments that will result from the devaluation of that dollar import prices go up quickly, while the dollar may gradually be eroded away. businesses and consumers will take time to cut Moreover, a vigorous effort to increase produc­ back on the quantities that are imported. tivity and curb inflation is more than ever nec­ The foreign trade figures just released for essary since Americans now have to pay more January show improvement. Nevertheless, there for their imported goods. With the prices of should be neither surprise nor anxiety if the foodstuffs soaring and uneasiness about wages trade deficit remains large in the next few spreading, we must use all the tools in our months. Later this year, and more so in 1974, arsenal—monetary policy, fiscal policy, and in­ we can confidently expect our foreign trade and comes policy—to achieve faster progress toward payments position to improve. The combination general price stability. of the Smithsonian realignment and the recent There is a second need that requires the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 171 attention of the Congress. The President has other things, the proposal recently put forward indicated that he will shortly be submitting new by Congressman Mills for elimination of the trade legislation. According to the Secretary of withholding tax on interest and dividend pay­ the Treasury, the President’s recommendations ments to foreigners deserves serious study. will include authority to lower U.S. trade re­ While we apply ourselves with zeal and dili­ strictions as part of a mutual reduction of trade gence, as I trust we shall, to putting a halt to barriers with other countries. They will also the deficits in our international accounts, we provide authority for raising U.S. barriers if that must simultaneously intensify our efforts to re­ proves necessary to achieve fair access of our form international monetary and trading rela­ products into foreign markets, to provide safe­ tionships. The behavior of exchange markets guards against disruption of particular domestic since mid-January has poignantly demonstrated markets, or to protect our international financial once again the urgent need for reaching early position against large and persistent deficits. If agreement on the framework of a new interna­ it should turn out that inadequate progress is tional monetary system. The United States being achieved in reducing the deficit in the Government has put forward a plan that prom­ U.S. balance of payments, this latter authority ises to promote effective and more orderly ad­ should be available for use; for we must leave justment of payments imbalances in the future. no doubt about our determination to bring the Other countries should be equally forthcoming long series of deficits in our balance of payments in putting their views forward. The essential to a scheduled end. However, any deviation thing is to move at a faster pace toward agree­ from a liberal commercial policy should be ment on a monetary system that will not be limited and strictly temporary so that over the prone to recurring crises. longer run we and other countries may continue In conclusion, I want to share with you a to gain the benefits of a growing volume of sentiment I expressed last week to the Joint international trade and investment. Economic Committee. I have recently felt a There is a third need that we should keep sense of concern developing across the Nation in mind—namely, the importance of maintain­ about the ability of the United States to deal ing an environment that is conducive to private with its economic problems. This concern is enterprise and investment. The recent upsurge understandable, for we live in troubled times of economic activity has made Americans seek­ and our problems are not simple. But I have ing permanent investments more willing to put every confidence in our Nation’s ability to re­ their dollars to work at home rather than abroad. solve its problems as long as business, labor, It has also led to substantial foreign investment and all branches of our Government remain in American enterprises last year. Such foreign willing to work together toward the basic eco­ investment needs to be encouraged. Among nomic objective of prosperity without inflation. Statement by Arthur F. Burns, Chairman, truly effective instrument for stabilizing our Board of Governors of the Federal Reserve economy. System, before the Joint Study Committee on The fiscal policies of this Government— Budget Control, March 6, 1973. its total outlays, the priorities they reflect, and their relationship to revenues—bear sig­ nificantly on the lives of the people you rep­ In a year when the Congress is demonstrating resent. Income levels, the cost of living, the a determination to reform its procedures, your balance of international payments, and even the committee faces a challenge worthy of its tal­ quality of life in this country are directly and ents. You have the opportunity to enable the substantially affected by the Federal budget. If Congress to turn its power of the purse into a you can develop procedures that will enable Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 FEDERAL RESERVE BULLETIN □ MARCH 1973 Members of the Congress to vote on an over-all The problem is too acute to allow its solution fiscal policy that adequately reflects congres­ to be frustrated by acrimonious debate about sional priorities, you will revitalize repre­ who is to blame. Representative Mahon recog­ sentative government in this country. I am nized this in a challenging discussion of our pleased to have been asked to discuss these budget problems in Nation ’s Business last issues with you. April. Let me quote a few key sentences from Thoughtful people everywhere are aware of his paper: “Who is to blame for this distressing the need for more effective congressional review record? The President? The Congress? The of the budget. A recent indication of this fact American people? I think nearly all of us are. is Senator Mansfield’s statement on February 8, Large segments of the population tend to de­ disclosing that “all the new Senators of the class mand more and more government services, and of 1973” had written to him and to Senator at the same time there is a demand for lower Scott urging that reform of the congressional taxes.” budgetary process be given “top priority.” In I believe the American people understand that this letter 13 new Senators, from both political Government spending, taxes, inflation, and in­ parties, fresh from election victories in States terest rates are all interrelated. If they seem to from Maine to Idaho, unanimously and favor more spending and lower taxes at the same “wholeheartedly” agreed that the “Congress time, it may well be because congressional has the obligation to set priorities under which procedures lead to votes on taxes and spending expenditures are to be authorized by this Nation, as though they were unrelated issues. Members and present procedures of the Congress do not are asked, in effect, to cast a number of separate in fact achieve that aim.” They concluded with votes for or against cleaner air, for or against this perceptive comment: “The first step toward better schools, and for or against a host of other establishing priorities has to be setting a ceiling good things Government can help to provide. on appropriations and expenditures. This must A vote does not occur on the question of be done first, rather than last. Unless we do this, whether expenditures for a particular category we are not really budgeting at all.” are desired strongly enough to raise taxes, or Yet along with this awareness of the need to cut back on another category. Until votes can for better budgetary procedures, there is concern be cast on such questions, we cannot be sure and even cynicism about the prospects for what answers people generally would give. achieving them. We hear speculation that the At present, the decision-making process that President does not really believe the Congress results in a unified budget being presented by will heed his call for a ceiling on expenditures the administration has no counterpart in the but expects, instead, the Congress to overspend Congress. Instead, the decisions that determine and thus become responsible for a tax increase the ultimate shape of the budget are made by that would then be inevitable. The Congress, by acting (or at times taking no action) on a large its own actions, has lent some support to this number of separate measures—160 for fiscal pessimistic view. The early response of the 1973, as recently reported by your committee. House and Senate to the President’s efforts to Only after the results of these separate votes hold outlays for fiscal 1973 to $250 billion has are determined can we put the pieces together been to pass bills requiring release of some of and discover what kind of a budget has the impounded funds. And the Ervin bill re­ emerged. In this process, Members of the stricting the authority to impound funds seems Congress have no opportunity to express the likely to pass the Senate soon. Thus, people are wishes of their constituents on choices such as understandably concerned that the Congress, in what total expenditures should be or whether exercising its unquestioned right to determine more should be spent for housing or for educa­ priorities among national needs, may produce tion or for health care. Choices of this type are budget deficits that no one wants—not the Pres­ of greater importance to the electorate as a ident, not the Congress, and not the people you whole than the single proposals on which con­ represent. gressional votes actually occur. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 173 Some of the choices that the 93rd Congress stemming from large budget deficits, have added will have to make can be readily anticipated. to the pressures on credit markets. So far the The economy is expanding vigorously. We can advance in interest rates has been mainly con­ look forward to a good increase in physical fined to short-term credit. But our chances of output and further reductions in unemployment continuing to avoid significant increases in in 1973. Thus, there is no need at this stage long-term rates will depend heavily on whether of the expansion for further fiscal stimulus, and Treasury demands for credit can be held at the administration has therefore recommended moderate levels. that the budget be brought into balance at full It is clear to me that your committee fully employment. Along with the new prosperity, realizes the pressing need to re-establish order however, we have some old problems. Persis­ in our Federal finances. The question is not tent inflation—albeit at a somewhat diminished whether it must be done but how. A solution pace—is one of them, and the chronic deficit requires a firm ceiling on expenditures or a tax in our international balance of payments is an­ increase, or some combination of the two. There other. are several reasons, I believe, for choosing a The recent devaluation of the dollar, com­ curb on spending in preference to a tax increase. bined with the Smithsonian realignment, has First, government expenditures—counting now placed us on the road back toward equilib­ outlays by State and local governments as well rium in our balance of payments. We cannot, as Federal—have been rising much faster than however, take that improvement for granted. our national production so that an increasingly Indeed, confidence in our own economy will be large fraction of the wealth that our citizens strengthened if we set a firm and definite goal produce is being devoted to the support of for the balance of payments—namely, to end government. In 1929 total government spending the deficit within a period of 2 to 3 years. And amounted to about 10 per cent of the dollar while devaluation will help in restoring pay­ value of our national output. Since then the ments equilibrium, it will also add to upward figure has risen to 20 per cent in 1940, 30 per pressures on our prices at a time when both cent in 1965, and 35 per cent in 1972. It is domestic and international considerations re­ time to call a halt. quire a determined effort to restore price stabil­ Second, the expansion in government outlays ity. The level of Federal spending and the way has not produced the kind of benefits the public it is financed will have an important bearing on has a right to expect. As government assumes our ability to solve these persistent problems of wider responsibilities, it becomes increasingly inflation and international imbalance. apparent that we must have a better system of Yet, sizable deficits in the Federal budget controls to screen out low-priority programs and continue to plague us. The administration esti­ to ensure that high-priority programs operate mates that outlays, if held to $250 billion, will efficiently. The best way to get effective controls exceed revenues by $25 billion for fiscal 1973. of that kind is for the Congress to decide that And while the administration has recommended one-third of our national output is quite enough that the budget be brought into a position of for the tax collector. full-employment balance for fiscal 1974, outlays Third, I have the impression that the Ameri­ are still scheduled to rise another $19 billion, can people feel that they are already carrying and the unified budget deficit is expected to be a sufficiently heavy tax burden and will strongly about $13 billion. resist any increase. If that impression is correct, In addition to its implications for employ­ raising taxes may not be a realistic alternative ment, price stability, and our international pay­ to a ceiling on spending. ments position, the budget is bound to leave In its interim report of February 7, your its mark on interest rates. With credit demands committee has sketched out a tentative plan to strengthening because of the marked advance achieve better control over expenditures as a in economic activity, interest rates have been part of an over-all plan for reviewing tax and moving up. Treasury financing requirements, expenditure policies. You have already accom­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 FEDERAL RESERVE BULLETIN □ MARCH 1973 plished much in the short time your committee It may therefore be necessary to rely, as Repre­ has been in existence, and I find your report sentative Reuss has suggested, on action late most encouraging. in the session to set the over-all ceilings and Under this tentative plan, the Congress would subceilings in their final form. establish two over-all spending ceilings early in For the reasons I have mentioned, I would the session. One would govern total outlays for hope that where the tentative over-all ceilings the ensuing fiscal year, which stem in part from are exceeded, the late-session adjustment would obligational authority previously enacted. The usually take the form of reduced spending au­ other would limit new obligational authority, thority rather than a tax increase. But there may which will form the basis for expenditures not be circumstances where the Congress should only in the ensuing fiscal year but in later years consider accepting a higher deficit than origi­ as well. Each of these comprehensive ceilings nally contemplated or financing expenditure would be accompanied by subceilings for major over-runs by raising taxes. The essential point, categories of expenditures so as to reflect con­ to my mind, is that the Congress should take gressional priorities and to assist in achieving one of these courses deliberately in full aware­ compliance with the over-all ceilings. ness of its consequences. Your report notes that earlier experiments Moreover, if reliance is placed on a final with rubbery ceilings have failed and that pro­ budget statute for the needed adjustments, spe­ cedures must therefore be developed to assure cial rules would seem to be required in order reasonable compliance with the ceilings. Rep­ to assure that such a measure is in fact brought resentative Findley’s proposal, H. Res. 17, to the floor and acted on. Rules such as those which would amend the rules of the House to that speed consideration of resolutions relating require a two-thirds vote for passage of any bill to reorganization plans would seem to be useful that would exceed the previously determined in this connection. ceiling for the particular category of expendi­ As an alternative approach, you may wish to ture, has much to commend it in my view, consider a procedure by which the Congress provided it is expanded to assure participation would adopt a joint resolution establishing by the Senate in establishing the ceilings—as over-all spending ceilings as early in the session your report contemplates. as possible, but in no event later than June 30. Representative Reuss has suggested a some­ The resolution would set firm over-all ceilings what different procedure—namely, that the on outlays and new obligational authority for over-all ceilings and subceilings established the coming year and direct the Executive to early in the session be treated as tentative so submit within 45 days a detailed budgetary plan that appropriations bills and other measures for complying with these ceilings. The plan providing new obligational authority could be would take effect within 45 days after its sub­ passed as now by majority vote even though mission unless either House meanwhile passed they breached the ceilings. Thus, the tentative a resolution disapproving the plan. With rea­ ceilings would help to guide action on individual sonable cooperation between the Executive and spending measures, but adjustments would be the Congress, which would of course include made late in the session in the form of a final consultation with the House and Senate budget budget statute. This proposal seeks to achieve committees proposed in your report, such a flexibility and an opportunity for late-session procedure would assure that the ceilings were review, as proposed by your report, without effective and that they also adequately reflected destroying the effectiveness of the ceilings es­ congressional priorities. Again, rules would be tablished early in the session. needed, analogous to those for reorganization I recognize that it may be too much to expect plans, to give each House the opportunity to the House and Senate to agree early in the vote on a resolution of disapproval if it so session, on the basis of limited information, on wished. ceilings for major categories of expenditure that In developing better budgeting procedures, it could be overridden only by a two-thirds vote. may be that the Federal Government could use­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 175 fully adopt some of the techniques of the States, outlays to acceptable levels. And the Congress where budgets are subject to a relatively firm is better equipped than are the State legislatures discipline. I have tried to learn something about to play a strong role in fiscal policy. But the State procedures through conversations with Congress can preserve and strengthen its powers State officials and others familiar with the sub- only by exercising them. Procedures that ject. produce deficits that the Congress itself It appears that State legislatures are normally does not desire invite corrective actions by the subject to a very powerful constraint—namely, Executive. elected officials of all parties recognize a bal­ In the long run there would seem to be no anced budget as a prerequisite to re-election. political advantage to either the Executive or Some States permit deficits for capital expansion the Congress in battling over budgetary prerog­ but a deficit on current account, even where atives, particularly if the result is bad budgets. permitted by law, poses political risks that offi­ Let peace be declared; let the Congress play cials are reluctant to take. The general accept­ a greater role in reviewing the budget and per­ ance of the need for a balanced budget enables haps even become involved in the preparation the leadership to keep the legislature in session of the budget. Eight States have established until it is achieved. I am not advocating that means for doing this, generally through a board the Congress repair to the banner of a balanced most of whose members are legislators. While budget at all times. But we do need a new sense the mechanisms established in these States of discipline—one that recognizes that a con­ would have to be modified for application at stantly stimulative fiscal policy is more apt to the Federal level, perhaps some means could produce inflation than new jobs. be found that would be mutually satisfactory to One important means by which the States the Congress and to the President. achieve fiscal restraint is by granting consid­ Involving the Congress in budget preparation erably larger power to the governors than the should help to accomplish speedier action on Congress has granted to the President. The item budget proposals. Both the President’s budget veto is authorized in a number of States, and message and your committee’s interim report because of the shorter legislative sessions, the recognize the need to reduce or eliminate the pocket veto is a more powerful weapon. In some delays that have required increasing use of con­ States the legislature is not permitted to increase tinuing resolutions and have frustrated efforts spending above the level requested in the budget to make the budget a really useful management unless it also provides for a new source of tool. For programs that operate under statutory revenue. And nearly all governors impound authority that is renewed annually, enactment funds frequently. However, it appears that im­ of the authorization bills a year in advance, as pounding generally involves measures such as recommended in your report, would eliminate reducing the number of State employees or a major cause of delay in considering the related stretching out construction rather than terminat­ appropriations bills. Cooperation and consulta­ ing programs. tion between the Executive and the Congress Experience at the State level thus suggests in formulating the budget should also help to that where over-all outlays are subject to careful expedite its enactment. scrutiny, impounding—when it occurs—takes a Your report recognizes the need to provide form that is consistent with spending priorities the Congress with better information about the established by the legislature. If the President effects of existing and proposed legislation, not and the Congress will work together to hold total only in the current year, but up to 3 to 5 years outlays at a level reasonably related to revenues, ahead. This would extend to the Federal Gov­ there should be no occasion for resort to im­ ernment procedures already established in some pounding on a broad scale. States and should prove highly beneficial, par­ The Congress has made it clear that it does ticularly if it is buttressed by your proposal for not wish to emulate the States by strengthening House and Senate committees on the budget, the powers of the Executive Branch to trim total assisted by nonpartisan, professional staffs. In­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 FEDERAL RESERVE BULLETIN □ MARCH 1973 deed, the President has already taken useful sisted by those who fear loss of benefits they steps in this direction. Thus, in his most recent now enjoy. But this reform is so clearly neces­ budget message, he presents estimates—for in­ sary that I believe we will eventually come to dividual agencies and in functional detail—of it, and I commend to your attention Senator the outlays for fiscal 1975 as well as for fiscal Brock’s bill, S. 40, which provides for zero- 1973 and 1974. base budgeting for all major expenditure pro­ Finally, I feel that any discussion of better grams at least once in every 3 years. budget procedures would be incomplete without The thoughts I have expressed today are my some mention of zero-base budgeting. Tradi­ own, not necessarily those of the Board of tionally, officials in charge of an established Governors of the Federal Reserve System. And, program have not been required to make a case needless to say, I disclaim any special expertise for their entire appropriation request each year. in regard to congressional procedures. But pro­ Instead, they have had to justify only the in­ cedural questions at times have great substantive crease they seek above last year’s level. Sub­ significance, and this is one of those occasions. stantial savings could undoubtedly be realized I accepted your invitation because as a con­ if both the administration and the Congress cerned citizen, with some knowledge of eco­ treated each appropriation request as if it were nomics, I have believed for some time—and for a new program. Such a procedure will un­ recent events have reinforced the belief—that doubtedly be difficult to achieve, not only be­ better congressional control of the budget is cause it will add heavily to the burdens of absolutely essential to maintain the vitality of budget-making, but also because it will be re­ our economic and political system. □ Statement by Arthur F. Burns, Chairman, adjustments will be to leave budgetary expendi­ Board of Governors of the Federal Reserve tures and the over-all dollar assets and liabilities System, before the Subcommittee on Interna­ of the U.S. Government little changed. tional Finance, of the Committee on Banking The Federal Reserve System will be affected and Currency, House of Representatives, by these financial and accounting adjustments March 7, 1973. in two ways. First, the Treasury will be able to issue new gold certificates to the Federal Reserve Banks in an amount equal to the in­ The Board of Governors of the Federal Reserve crease in the book value of the Treasury gold System supports prompt enactment of H.R. stock. To the extent that the Treasury does so, 4536, the bill to amend the Par Value Modifi­ its cash balance will rise. A subsequent return cation Act of 1972. of the Treasury cash balance to previous levels The bill proposes a new par value for the would, of itself, result in an equivalent increase dollar in the International Monetary Fund. This in bank reserves; but such an increase can be proposed change will have several financial and readily offset—in whole or in part—by Federal accounting consequences. The value of the Reserve open market operations. Treasury’s reserve assets will be written up by The other effect on the transactions and ac­ 11.1 per cent, or about $1.4 billion. The dollar counts of the Federal Reserve will occur in value of our subscriptions and contributions to connection with settlement of commitments several international financial institutions will under the reciprocal currency arrangements with need to be increased. In addition, there will foreign central banks. Use of a “swap” ar­ be an increase in the dollar value of certain rangement by the Federal Reserve entails an Treasury and Federal Reserve liabilities con­ obligation to deliver a specified amount of nected with operations in foreign currencies. foreign currency at a future date. Similar com­ The net result of these financial and accounting mitments have been undertaken by the Treasury Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 177 on its debt securities denominated in foreign effect on financial opinion. Recent sharp in­ currencies. creases in wholesale prices coincided with As of February 12, 1973, the Federal Reserve doubts voiced in the public press about the had outstanding swap drawings of $1.66 billion, effectiveness of Phase III. Financial sentiment almost all of which were originally undertaken may also have been adversely affected by the prior to August 15, 1971. Inasmuch as the dollar continuance of a large Federal budget deficit at prices of the affected currencies—Swiss francs, a time of rapid economic expansion. Belgian francs, and German marks—were fur­ In late January confidence in the stability of ther increased as a result of the currency re­ exchange markets deteriorated when the Italian alignment of February 12, there will be an Government adopted a two-tier market and the additional cost to the Federal Reserve in liqui­ Swiss authorities decided to let their currency dating these drawings. The cost attributable to float. Excitement mounted rapidly in exchange the February 12th realignment is presently esti­ markets, particularly in the case of the German mated at nearly $200 million. The total cost mark. When large-scale speculation failed to attributable to both the Smithsonian realignment diminish, the President decided on February 6 and this February’s realignment is presently to take the lead in trying to find a resolution estimated at less than $400 million. of the crisis by promptly exploring alternative The purpose of the swap transactions carried courses of action with other countries. On out prior to August 15, 1971, was to defer or Monday, February 12, Secretary Shultz an­ reduce declines in reserve assets that would nounced that an agreement had been reached. otherwise have occurred. The losses that are As you know, the President has proposed a incurred at the time these swaps are settled devaluation of the dollar by 10 per cent—that reduce the earnings that the Federal Reserve is to say, the value of the dollar in terms of System turns over to the Treasury. But against gold or SDR’s would decline by 10 per cent. these losses the Treasury has a roughly offset­ Stated differently, our official price of gold ting profit on the gold and other reserve assets would rise by 11.1 per cent or from $38.00 to that it still holds because foreign central banks $42.22 per ounce, and the price of SDR’s would were willing to accept Federal Reserve swap likewise rise by 11.1 per cent or from $1.09 drawings instead of demanding reserve assets to $1.21. The bill you are now considering will from the Treasury. give formal effect to the devaluation. It should The fundamental cause of the exchange mar­ be noted that the newly proposed official price ket crisis that preceded the February 12th deci­ of gold, like the old official price, is an ac­ sion to propose a change in the par value of counting measure and must not be confused with the dollar was the large and persistent deficit the market price of gold. in the U.S. balance of payments and, as its The immediate response of foreign govern­ counterpart, persistent surpluses of foreign ments to the proposed devaluation of the dollar countries. Our deficit of about $10 billion to was generally in accord with our expectations. $11 billion on official reserve transactions in A large number of countries left unchanged the 1972 was less than the huge $30 billion deficit value of their currency in terms of gold and of 1971, but it was still enormous by any SDR’s, thereby allowing their currency to ap­ historical standard. As a consequence, the lia­ preciate against the dollar by the full amount bilities of the United States to foreign monetary of the dollar devaluation. Many other countries authorities rose to $61 billion by the end of last devalued part or all of the way with the dollar, year. but in most cases these actions appear to be Against this background it was not surprising consistent with their balance of payments situa­ that exchange markets were sensitive to current tions. In view of the need to correct the existing economic developments. Publication of our pattern of payments imbalances, it was particu­ November and December trade figures, which larly encouraging that the Japanese yen appre­ indicated that the trade deficit during 1972 ciated not only against the dollar but also sig­ would reach nearly $7 billion, had an unsettling nificantly against other major currencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 FEDERAL RESERVE BULLETIN □ MARCH 1973 In the week immediately following February mestic reasons, and it is no less vital for our 12, the mood in exchange markets was rela­ international position. Unless our recent success tively calm. However, uneasiness soon returned in reducing the rate of inflation is extended, the to the markets and large speculative movements improvement in the balance of payments that of capital again took place last week. On will result from the devaluation of the dollar Thursday, March 1, the German central bank may gradually be eroded away. A determined was forced to purchase over $2.5 billion in effort to increase productivity and curb inflation support of its new exchange rate; other Euro­ will also play an important role in eliminating pean central banks also intervened in substantial the instabilities now plaguing exchange mar­ amounts. In the face of this speculative on­ kets. slaught, most exchange markets in Europe and At the same time, the restoration of confi­ Japan were closed down on Friday. dence requires that we intensify our efforts to The Finance Ministers of the European Eco­ reform international monetary and trading rela­ nomic Community met to discuss this situation tionships. The behavior of exchange markets last Sunday. At that time they decided to leave since mid-January has poignantly demonstrated foreign exchange markets closed this entire once again the urgent need for reaching early week, while further deliberations by finance agreement on the framework of a new interna­ ministers and central bankers were going for­ tional monetary system. It would be easy to ward. As you probably know, meetings have dawdle away one, two, or more years on dis­ been scheduled on Friday of this week in Paris. cussions of how to improve the monetary sys­ The Government of the United States will be tem. But the world cannot afford such a luxury. represented at these meetings, and I feel sure Whatever the difficulties, ways to resolve them that a determined effort will be made on all must be found—and quickly. The essential thing sides to achieve a constructive resolution of the is to move at a much faster pace toward re­ crisis. building the monetary system so that it will not In view of current uncertainties, the immedi­ be prone to recurring crises. ate objective shared by all countries is to restore When exchange markets gyrate, as they have confidence and order in financial markets. been doing in recent days, it is easy to lose Speedy passage of H.R. 4536 will remove sight of underlying developments. The currency one source of uncertainty. The Treasury, acting parities that resulted from the February 12 in the President’s behalf, undertook a commit­ agreement appear to be basically sound. When ment in the negotiations leading to the February these exchange-rate changes are taken together 12th realignment. Adoption of the bill that you with the Smithsonian realignment, it is clear that are now considering will contribute to the res­ the U.S. competitive position has improved toration of confidence. substantially. Thus, although the deficit in our The United States can also help to restore trade and payments will remain large during an confidence in international financial order by initial period of a few months, we can confi­ making sure that our policies, taken as a whole, dently expect progress in reducing the deficit are realistically adjusted to our needs. The pri­ later this year, and more so in 1974. The two mary task of economic policy this year is to realignments together have placed us firmly on steer our expanding economy onto a noninfla- the road toward equilibrium in our balance of tionary course. This goal is essential for do­ payments. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions INTERPRETATION OF REGULATION K joint account before the end of the New York trading day. The foreign bank and the member firm would share equally in profits and losses on INTERNATIONAL JOINT ACCOUNT the operations of the account. ARBITRAGE INCIDENTAL TO The question posed involves an interpretation SECURITIES BUSINESS ABROAD of paragraph 10 of section 25(a) and section 211.5(b) of Regulation K. Paragraph 10 of section A question has been raised with the Board as 25(a) prohibits an Edge corporation from carrying to whether a foreign subsidiary of a corporation on any part of its business in the United States organized under section 25(a) of the Federal Re­ except such as, in the Board’s judgment, shall be serve Act (an “Edge corporation”) may partici­ incidental to its international or foreign business. pate with a member firm of the New York Stock (With regard to the permissible operations of Exchange in the operation of an international arbi­ foreign subsidiaries of Edge corporations, the ef­ trage joint account of the kind authorized by Rule fect of paragraph 10, under the Board’s standard 437 of the New York Stock Exchange with per­ condition mentioned above, is to duplicate the mission of the Exchange. The Edge corporation’s prohibition contained in paragraph 8 of section investment in the foreign subsidiary was made 25(a) against investment by an Edge corporation subject to the Board’s standard condition that the in any corporation transacting any business in the subsidiary should not engage in any activities that United States except such as, in the Board’s judg­ would not be permissible if it were a corporation ment, may be incidental to its international or organized under section 25(a) not “engaged in foreign business.) Section 211.5(b) of Regulation banking” within the meaning of section 211.2(d) K prohibits an Edge corporation, with certain of this Part (Regulation K). For the reasons exceptions not material to this ruling, from engag­ hereinafter stated, the Board believes that, under ing in the business of selling or distributing se­ appropriate conditions, such participation in an curities in the United States or underwriting any international arbitrage account is not prohibited by portion thereof so sold or distributed. either section 25(a) of the Federal Reserve Act International arbitrage involves engaging in the or Regulation K. business of buying or selling securities in one The foreign subsidiary on whose behalf the market with the intent of reversing such transac­ inquiry was made was a foreign bank that is tions in a market in a country different from that engaged in the business of dealing in securities in which the original transaction has taken place, outside the United States, including securities that in order to profit from price differences between are issued by corporations chartered in the United such markets. In the Board’s judgment, the par­ States and are listed on the New York Stock ticipation by a foreign subsidiary of an Edge Exchange. The international arbitrage joint ac­ corporation in an international arbitrage joint ac­ count will be operated in accordance with the rules count, as described above, with a member firm of the New York Stock Exchange. The foreign of the New York Stock Exchange would not place bank would post to the joint account transactions that foreign subsidiary in the business of selling executed by it in foreign markets in securities or distributing securities in the United States, or listed on the Exchange. Purchases and sales in involve it in carrying on any part of its business foreign markets would be made primarily from or in the United States except such as may be inci­ to foreign-owned financial institutions dealing in dental to its international or foreign business, if securities. The member firm of the Exchange the account is operated subject to the following would execute orders on the Exchange reversing restrictions: (i) transactions in the United States those transactions on the same business day, shall be confined to those that reverse prior trans­ thereby eliminating long or short positions in the actions initiated in foreign markets, (ii) purchases 179 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 FEDERAL RESERVE BULLETIN □ MARCH 1973 and sales of securities outside the United States gages in the activities of a general insurance shall be made only from or to foreign residents agency in one community of more than 5,000 not controlled by any U.S. company, (iii) transac­ persons, the Company will limit its activities in tions shall be confined to bona fide arbitrage as that community, as described hereinafter, to con­ defined for purposes of Rule 437 of the New York form to those activities which have been deter­ Stock Exchange, (iv) the joint account shall be mined by the Board to be closely related to bank­ regularly settled between the participants at no ing (12 CFR 225.4(a)(9)). greater than quarterly intervals, and (v) in no event Notice of receipt of this application has been will orders be placed for the joint account in published and the time for filing comments and securities being underwritten by the foreign sub­ views has expired. The Board has considered the sidiary. Under such circumstances, the Board is application in the light of the factors set forth in of the opinion that a foreign subsidiary of an Edge § 3(c) of the Act (12 U.S.C. 1842(c)), and the corporation may engage in international joint ac­ considerations specified in § 4(c)(8) of the Act (12 count arbitrage as an incident to its dealings in U.S.C. 1843(c)(8)). securities outside the United States consistently Applicant controls ten banks,1 holding deposits with section 25(a) and Regulation K. of $120.9 million, representing 12.56 per cent of Full information concerning the volume and the the total commercial bank deposits in Wyoming. nature of the transactions in such an account and Consummation of the proposal herein would in­ enabling assessment of compliance with the fore­ crease its proportion of State deposits by less than going restrictions shall be available and will be one per cent. (All banking data are as of June reviewed during examinations of an Edge cor­ 30, 1972.) poration whose foreign subsidiary participates in Bank, a subsidiary of Company, is the only an international arbitrage joint account. Such in­ bank located in Meeteetse, a community of ap­ formation shall be retained in the Edge corpora­ proximately 460 persons, and had deposits as of tion’s records for at least three years after such June 30, 1972 of approximately $1.6 million. transactions are executed. Applicant’s subsidiary bank nearest to Bank is located approximately 135 miles southwest of Meeteetse, and this distance appears to have pre­ cluded the development of competition between ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT the two banks. Bank is located 39 miles southeast of Cody where First State Bank, a proposed sub­ WYOMING BANCORPORATION, sidiary of Applicant, is located. Although banks CHEYENNE, WYOMING in Cody do compete in Meeteetse, Bank and First State Bank do not compete with each other due Order Approving Acquisition of Bank Hold­ to their common ownership. In any case, Bank ing Company and Acquisition of Insurance is not presently an aggressive competitor, having Agency a loan-to-deposit ratio of 27.4 per cent. Consum­ mation of the proposed transaction therefore will Wyoming Bancorporation, Cheyenne, Wyom­ not eliminate any existing competition; nor will ing, has applied for the Board’s approval under consummation have an adverse effect on the de­ § 3(a)(3) of the Bank Holding Company Act (12 velopment of competition in view of the absence U.S.C. 1842(a)(3)) of the indirect acquisition of of a probability that the common ownership of 88 per cent of the shares of The First National Bank and First State Bank will dissolve in the Bank of Meeteetse, Meeteetse, Wyoming future and the lack of foreseeable economic or (“Bank”). population growth of the Meeteetse area. At the same time, Applicant has applied for the Considerations relating to financial and mana­ Board’s approval under § 4(c)(8) of the Act (12 gerial resources and prospects of Applicant and U.S.C. 1843(c)(8)) and § 225.4(b)(2) of the Bank appear to be satisfactory and consistent with Board’s Regulation Y to acquire voting shares of approval. Bank’s ultraconservative lending poli­ First State Corporation, Cody, Wyoming (“Com­ cies have limited the availability of credit to resi­ pany”). Applicant states that Company would engage in the activities of a general insurance agency in a 1 By Order of this date, the Board has approved Applicant’s proposed acquisition of First State Bank, Cody, Wyoming. community that has a population not in excess of Upon consummation of that acquisition, Applicant would con­ 5,000 persons and that, although Company en­ trol eleven banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 181 dents of Meeteetse, forcing those residents to turn proposed transactions, it will cease the general to Cody banks to meet their credit needs. Con­ insurance sales activities of First State Insurance, summation of the proposed transaction should initiate only sales of insurance that the Board has have the effect of liberalizing the lending policies by regulation and interpretation determined to be of Bank in a reasonable manner. Accordingly, closely related to banking, and not to undertake considerations relating to the convenience and the renewal of any policy previously sold, the sale needs of the communities involved support ap­ of which would not be permitted by section proval of the transaction. It is the Board’s judg­ 225.4(a)(9) of Regulation Y and the Board’s in­ ment that the transaction would be in the public terpretation of that section (12 CFR 225.128). This interest and that the application to acquire Bank limitation of the activities of First State Insurance should be approved. will eliminate First State Insurance as an alterna­ Company does a general insurance agency tive source of general insurance services in Cody business as Linton Insurance Agency on the and may result in inconvenience to certain cus­ premises of Bank and as First State Insurance on tomers of First State Insurance. However, Cody the premises of First State Bank in Cody. Both is served by a number of general insurance agen­ agencies presently sell a variety of insurance cov­ cies which together are capable of meeting and erage, including homeowners, automobile, fire, fulfilling the general insurance needs of Cody general liability, bonds, and other coverage. residents. The adverse effects of the proposed As indicated before, Meeteetse has a population acquisition are minimal and are outweighed by the of 460. Linton Insurance Agency appears to com­ expected ability of First State Insurance deriving pete with only one insurance agency in Meeteetse; from its affiliation with Applicant to bring larger that agency is primarily engaged in the sale of insurance underwriters into the Cody area and by automobile insurance coverage. Consummation of the gains in efficiency which Applicant is expected the proposed transaction is not expected to have to bring to its operations. any immediate effect on the operations of Linton The Board notes the legislative policy stated in Insurance Agency, and Applicant is not engaged the National Bank Act that national banks in in a general insurance agency business in the communities of less than 5,000 persons may sell Meeteetse area. The lack of growth in the Mee­ insurance (12 U.S.C. 92) and the provisions of teetse area has been noted above. The Board section 106 of the Bank Holding Company Act concludes that Applicant’s acquisition of the gen­ Amendments of 1970 which prohibit banks from eral insurance agency operations of Linton Insur­ tying an extension of credit to the purchase of ance Agency will not have an adverse effect on insurance from the bank or its bank holding com­ existing or future competition in the general insur­ pany. The Board finds that approval of Applicant’s ance agency business in that area. The Board proposals to acquire the operations of Linton In­ expects rather that, through its association with surance Agency, and to engage in insurance sales other insurance agencies in Applicant’s system, activities limited to those permissible under section Linton Insurance Agency will be able to offer 225.4(a)(9) of Regulation Y through the instru­ expanded insurance services and to represent mentality of First State Insurance, is unlikely to larger insurance companies, thereby increasing result in any undue concentration of resources, competition in the general insurance agency busi­ decreased or unfair competition, conflicts of inter­ ness in Meeteetse and better serving the insurance ests, unsound banking practices, or other signifi­ needs of Meeteetse residents. cant adverse effects on the public interest. Fur­ Company initiated operations of First State In­ thermore, in the Board’s judgment, the benefits surance in 1967 and has been permitted to continue to the public resulting from approval of these its general insurance agency operations, despite proposals lends weight to approval. On the basis Company’s status as a bank holding company and of the foregoing and other facts reflected in the the fact that the population of Cody (5,161 ac­ record, the balance of the public interest factors cording to the 1970 Census) exceeds 5,000, under the Board must consider regarding the acquisition the “grandfather”clause in section 4(a)(2) of the of Company is favorable and the application Act. However, “grandfather” rights may not be should be approved. transferred, and Applicant, not having been en­ On the basis of the record, the application is gaged, directly or indirectly, in general insurance approved for the reasons summarized above. The agency operations on June 30, 1968, may not acquisition of Bank shall not be consummated (a) acquire those rights. Applicant is aware of this before the thirtieth calendar day following the and has agreed that, upon consummation of the effective date of this Order or (b) later than three Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 FEDERAL RESERVE BULLETIN □ MARCH 1973 months after the effective date of this Order, unless tion of the proposal nor would concentration be such period is extended for good cause by the significantly increased in any relevant area. Bank Board, or by the Federal Reserve Bank of Kansas would be located south of Sarasota and would be City pursuant to delegated authority. The determi­ competing in the Sarasota banking market (ap­ nation as to Company’s insurance agency activities proximated by the City of Sarasota and surround­ is subject to the Board’s authority to require ing environs), in which market Applicant controls reports by, and make examinations of, holding 37.3 per cent of deposits. Applicant’s four sub­ companies and their subsidiaries and to require sidiary banks are all located in the Sarasota area, modification or termination of the activities of a the nearest being approximately 3.1 miles north­ holding company or any of its subsidiaries as the east of the Bank. At the present time, there are Board finds necessary to assure compliance with five banking organizations in the Sarasota market, the provisions and purposes of the Act and the including three multi-bank holding companies Board’s regulations and orders issued thereunder, controlling nine banks, one banking group con­ or to prevent evasions thereof. trolling two banks, and one independent bank. By order of the Board of Governors, effective Although Applicant is the largest banking organi­ February 8, 1973. zation in the market, it does not appear that con­ summation of the proposal would confer a position Voting for this action: Chairman Burns and Governors of market dominance upon Applicant to the detri­ Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. ment of competing banks. The eighth and eleventh (Signed) Tynan Smith, largest banking organizations in Florida rank sec­ [seal] Secretary of the Board. ond and fourth in the Sarasota banking market and control 35.6 and 7.8 per cent, respectively, of PALMER BANK CORPORATION, market deposits. It appears that approval of this SARASOTA, FLORIDA proposal would not foreclose the opportunity for entry or growth by other banking organizations. Order Approving Acquisition of Bank The Board concludes that competitive consid­ Palmer Bank Corporation, Sarasota, Florida, a erations are consistent with approval. bank holding company within the meaning of the The financial and managerial resources and fu­ Bank Holding Company Act, has applied for the ture prospects of Applicant and its subsidiary Board’s approval under § 3(a)(3) of the Act (12 banks are regarded as generally satisfactory. Bank, U.S.C. 1842(a)(3)) to acquire 100 per cent of the as a proposed new bank, has no financial or voting shares (less directors’ qualifying shares) of operating history; however, its prospects as a Gulf Gate Palmer Bank, Sarasota, Florida subsidiary of Applicant appear favorable and are (“Bank”), a proposed new bank. consistent with approval of the application. It Notice of the application, affording opportunity appears that the major banking needs of the area for interested persons to submit comments and are being adequately served at the present time. views, has been given in accordance with § 3(b) However, Bank would be able to provide an addi­ of the Act. The time for filing comments and views tional source of convenient banking services to the has expired, and the Board has considered the area. Considerations relating to the convenience application and all comments received in light of and needs of the area to be served are consistent the factors set forth in § 3(c) of the Act (12 U.S.C. with approval. It is the Board’s judgment that the 1842(c)). proposed acquisition would be in the public inter­ Applicant, the twenty-first largest banking or­ est and that the application should be approved. ganization in Florida, controls four subsidiary On the basis of the record, the application is banks with aggregate deposits of $147.5 million approved for the reasons summarized above. The representing 0.9 per cent of total commercial bank transaction shall not be consummated (a) before deposits within Florida. (All banking data are as the thirtieth calendar day following the effective of June 30, 1972 adjusted to reflect bank holding date of this Order or (b) later than three months company acquisitions and formations approved after that date, and (c) Gulf Gate Palmer Bank, through December 31, 1972). Acquisition of the Sarasota, Florida, shall be opened for business not proposed new Bank will have no immediate effect later than six months after the effective date of on Applicant’s share of commercial bank deposits this Order. Each of the periods described in (b) in the State. and (c) may be extended for good cause by the Since Bank is a proposed new bank, no existing Board, or by the Federal Reserve Bank of Atlanta competition would be eliminated by consumma­ pursuant to delegated authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 183 By order of the Board of Governors, effective Board has considered the entire record, including February 13, 1973. the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 Voting for this action: Chairman Burns and Governors U.S.C. 1842(c)). Mitchell, Daane, Brimmer, Sheehan, and Bucher. Voting against this action: Governor Robertson. First Florida controls 28 banks with aggregate deposits of $587.2 million representing 3.4 per (Signed) Tynan Smith, cent of deposits of commercial banks in Florida, [seal] Secretary of the Board. and is the sixth largest banking organization in the State.1 United controls six banks with total Dissenting Statement of Governor Robertson deposits of $384.3 million representing 2.3 per cent of aggregate deposits in the State, and is I do not concur with the majority in their ap­ Florida’s twelfth largest banking organization. proval of Applicant’s proposal. I believe that, in Consummation of the proposed merger would re­ the absence of an obvious public need for addi­ sult in First Florida’s control of 5.7 per cent of tional banking services, the acquisition of a de total State deposits, and the resulting organization novo bank by the largest banking organization in would become the State’s fifth largest banking the Sarasota market will result in accentuating and organization. Of course these percentages have no firming concentration in this banking market and significance other than indicating the relative size preclude deconcentration. of the named organizations. The State of Florida Applicant, by virtue of the 37.3 per cent of is not a banking market in any meaningful sense; market deposits which its four subsidiary banks it is a political entity which encompasses a large hold, is the largest banking organization in a number of banking markets some of which are market in which the two largest of the five banking interrelated. organizations operating therein hold almost 73 per All of First Florida’s present subsidiary banks cent of the deposits. Any expansion by either of are located in the northern two-thirds of Florida, these two banking organizations should be sub­ and it is represented in several of the major bank­ jected to the closest scrutiny under public interest ing markets in that portion of the State. It is standards. dominant in none. Its shares of total deposits and I would deny the application. the market size of the most significant related areas are as follows: Jacksonville $1,467 million (6 per FIRST FLORIDA BANCORPORATION, cent); Lakeland $521 million (9 per cent); Mel­ TAMPA, FLORIDA bourne $310 million (21 per cent); Orlando $1,102 million (7 per cent); and Tampa $2,772 million Order Approving Merger of Bank (7 per cent). United, on the other hand, is concen­ Holding Companies trated in southern Florida. Five of its subsidiaries First Florida Bancorporation, Tampa, Florida are located in the Dade County banking market, (“First Florida”), a bank holding company within where it is the third largest banking organization the meaning of the Bank Holding Company Act, holding approximately 9 per cent of deposits, and has applied for the Board’s approval under § its remaining subsidiary is located in the nearby 3(a)(5) of the Act (12 U.S.C. 1842(a)(5)) to merge West Palm Beach area. Since the closest subsid­ with United Bancshares of Florida, Inc., Miami iary banks of the proponents are over 50 miles Beach, Florida (“United”), under the certificate apart and the remaining subsidiaries are more than of incorporation of First Florida and the title of 100 miles apart, and considering the nature of the United First Florida Banks, Inc. bank, consummation of the proposal could not Notice of receipt of the application, affording eliminate any significant amount of competition. an opportunity for interested persons to submit The United States Department of Justice, in comments and views, has been given in accord­ commenting on this proposal, agreed that it would ance with § 3(b) of the Act. The time for filing eliminate no significant existing competition. With comments and views has expired some eight respect to the effect of the proposal on potential months ago. The nature and scope of the subject competition, the Department felt that consummaproposal, hereafter discussed, including its likely direct and indirect effect on banking competition in Florida, has necessitated an unusual amount of staff analysis and Board study with the noted 1 Banking data are as of June 30, 1972, and reflect holding company formations and acquisitions approved through De­ lengthy processing period. In this process, the cember 31, 1972, except data for First Florida are to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 FEDERAL RESERVE BULLETIN □ MARCH 1973 tion of the proposal would eliminate the possibility compete aggressively in Miami for international that First Florida would enter the Dade County banking business. market through the establishment of a de novo While consummation of the present proposal bank or “foothold” bank already in the market would eliminate First Florida as another potential and the possibility of United entering the Tampa entrant, the retail banking customers in Dade banking market through the same means. It there­ County are presently served by 46 banking orga­ fore felt that consummation of the proposal would nizations. Foreclosure of the possibility of a fortyhave an adverse effect on potential competition seventh could hardly have adverse effects on com­ with respect to Dade County and Tampa. Further­ petition for retail business. As to the customer in more, the Department felt that the proposed need of wholesale and regional banking services, merger “could trigger a wave of consolidations the proposal, rather than being anticompetitive, among other large Florida bank holding companies should in fact be procompetitive by creating a fifth and would have a significantly adverse effect on institution in the Miami market with established the competitive structure of banking throughout relationships in Jacksonville, Tampa, Orlando, the State.” Melbourne and other Florida communities and The Board recognizes that consummation of the having in the aggregate resources of approximately proposal would foreclose the possibility that $1 billion. United would expand to become a Statewide com­ With respect to the question whether the pro­ petitor of First Florida. However, the Board be­ posal will have a significantly adverse effect on lieves that a substantial adverse effect on potential competition due to the fact that it “could trigger” competition occurs only where there is a proba­ similar consolidations among large Florida holding bility rather than a possibility that substantial companies, the Board believes that each applica­ competition would develop between the banking tion before it should be decided on the merits of organizations involved in the absence of the pro­ that particular application. As we have previously posal. Taking into account the time lag involved stated, each subsequent application must also re­ in attempting to establish competitive effectiveness ceive the approval of the Board and will be ana­ through a “foothold” or de novo entry, we do lyzed on the basis of the competitive structure of not believe that the record in this case reflects a the market and other facts existing at the time of probability that, absent this proposal, United Board consideration (57 Federal Reserve Bulle­ would expand to become a Statewide competitor tin 348). of First Florida in the reasonably foreseeable fu­ The financial conditions and managerial re­ ture. Furthermore, with respect to any particular sources of First Florida, United, and their respec­ market, such as the Tampa market, the Board does tive groups of banks are generally satisfactory and not believe that the record establishes that such their prospects appear favorable. These consid­ entry is more than a possibility. erations are consistent with approval of the appli­ With respect to Dade County the Board believes cations. The primary banking needs of the areas that, absent this proposal, it is probable that First served by both holding companies appear to be Florida would enter de novo or through the acqui­ adequately met at the present time. However, sition of one of the smaller banks or banking consummation of the proposal would create an­ groups in that market. However, due to the struc­ other regional organization with resources more ture of banking in Dade County we do not believe appropriate to meeting inter-regional needs. At the that the foreclosure of First Florida’s entry as an same time, the Board does not believe that there independent competitor would have any substan­ would be any noticeable adverse effects on the tial adverse effects on competition in that market. competitive structure of Florida banking if there Banking in Dade County has been becoming more were 26 rather than 27 organizations with deposits and more competitive. While the largest banking of over $100 million. Considerations relating to organization in the market holds approximately 24 the convenience and needs of the communities to per cent of market deposits, the next five banking be served lend some weight toward approval. It organizations hold market shares ranging from is the Board’s judgment that the proposed transac­ approximately 10 per cent to approximately 5 per tion is in the public interest and should be ap­ cent. In addition to these six organizations, the proved. second and fourth largest banking organizations On the basis of the record, the application is in the State established a competitive presence in approved for the reasons summarized above. The the market during 1972. Further, Edge Act sub­ transaction shall not be consummated (a) before sidiaries of some of the nation’s largest banks the thirtieth calendar day following the effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 185 date of this Order, or (b) later than three months company cases in Florida over the last several after the effective date of this Order, unless such years. Bank holding companies in Florida began period is extended for good cause by the Board, to expand in the mid-1960’s, but the pace of or by the Federal Reserve Bank of Atlanta pursuant growth quickened noticeably in 1969. At the end to delegated authority. of 1968, there were 10 bank holding companies By order of the Board of Governors, effective in the State—controlling 86 banks with $3.8 bil­ February 16, 1973. lion of deposits. Thus, bank holding companies had control of just under one-fifth of all the com­ Voting for this action: Chairman Burns and Governors mercial banks and about one-third of all the de­ Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson, Brimmer, and Bucher. posits in the State. During the next four years, the number of holding companies rose to 29; the (Signed) Tynan Smith, number of banks controlled by them climbed to [seal] Secretary of the Board. 307, and the volume of deposits expanded to $10.6 billion.1 So just about half of the banks and oyer two-thirds of the commercial bank deposits in Dissenting Statement of Florida are under the direction of bank holding Governor Brimmer companies. I would deny this application. To approve the Nevertheless, the banking structure in Florida merger of these two bank holding companies —until now—has evolved in a balanced and com­ would not be in the public interest. Moreover, it petitive framework. At year-end, 1972, the 29 would end a clearly-defined policy followed con­ multi-bank holding companies in Florida had sistently by the Federal Reserve over the last $11.2 billion of deposits, representing 66.6 per several years which has sought the development cent of the State’s total. Yet, as shown in Table of a well-balanced and competitive banking system 1 the degree of concentration in banking resources in Florida. remained quite low. For example, the four largest The quantitative dimensions of this proposal are multi-bank holding companies were fairly close far from trivial. First Florida Bancorporation together in terms of size. Each had total deposits (“First Florida”) is the sixth largest banking or­ in the nieghborhood of $1.0 billion, and in com­ ganization in the State. With 28 banks and total bination they held 26.9 per cent of aggregate deposits of $587.2 million, it controls 3.4 per cent deposits in the State. The next four largest holding of commercial bank deposits. United Bancshares companies (with deposits ranging from $459 mil­ of Florida (“United”) ranks twelfth in size among lion to $771 million) collectively held 14.0 per banking organizations. It has six banks whose cent of total Florida deposits. Thus, the eight deposits total $384.3 million—giving United 2.3 top-ranking banking groups controlled slightly per cent of aggregate deposits in the State. The more than two-fifths of the aggregate commercial combined organization would rank fifth among bank deposits in the State. banking institutions in Florida; it would control Pattern of Previous Board Decisions in Florida 34 banks, $971.5 million of deposits, and 5.7 per This relatively modest degree of concentration cent of aggregate deposits in the State as a whole. in banking resources in Florida is by no means Consequently, the Board is not being asked to accidental. Rather it has resulted from the interac­ allow two small and struggling organizations to tion of several factors which have reinforced each combine in order to survive in the face of vigorous other: (1) as stressed above, the period of intense competition mounted by industry giants. holding company consolidation in the State is of Instead, two holding companies (one already recent origin; (2) Florida contains a relatively large possessing an extensive network of banks and the number of banks with deposits in excess of $100 other fully capable of independent development) million—and thus capable of leading sizable hold­ are seeking the Board’s approval for an action that ing companies; and (3) Federal Reserve Board would have a substantially adverse effect on po­ decisions in holding company and merger cases tential competition in the Dade County area—and have generally prohibited large organizations from which would produce no significant public bene­ significant acquisitions in local markets or from fits. Evolution of Bank Holding Companies in Florida The majority’s approval of this merger is par­ ticularly distressing when the action is viewed 1 Deposit data as of June 30, 1972, adjusted for newly chartered banks and holding company formations and acquisi­ against the pattern of Board decisions in holding tions through December 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

00 CT> Table I Market Structure and Multi-Bank Holding Comipfany Participation In Florida* June, 1972, Total Deposits & (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (ID (12> a 3) (14) Other MULTI-RANK (Number of Banks) Miami Tampa Ft. Laud­ Jackson­ West Palm Orlando Lakeland- Sarasota Daytona Fort Melbourne- Pensacola Talla- • Gains- Banking HOLDING COMPANIES (S millions) (Dade Cty.) St. Pete. erdale ville Beach Winter Haven Beach Myers Titusville hasse ville Markets T®tal Deposits 17,062 3,774 2,772 1,646 1,467 1,108 1,102 521 486 380 369 310 291 224 165 2,447 (581) (79) 1(75) (51) (33) (35> (38) (22) (15) (18) <1D (1l8i)’t (16) ( 9) (ID (I50> Multi-Bank Hldg. Cos 11,356 "2;983 ,914 1,141 1,218 474 966 320 311 279 IOO "172 56 131 996 (307) (48) (44) (27) (24) (15) (27) (16) ( 8) (11) ( 2) (12) (7) (2) ( 5) (52) 1. Southeast Bk. Corp. 1,328 911 819) 151 54 15 19 13 <19) ( 4> ( m ( 4) ( 2) ( 1) ( 2) ( 1) 2. First *t Orlando 1*125 139 30 55 426 19 68 77 37 151 (32> ( 4) ( 4) ( 1) ( 2) ( 7) ( I) ( 3) ( 3) ( 1) ( 6) 3. Barnett Banks of Fla. M » 127 104 96 303 124 47 65 43 52 56 107 (36) ( 5) ( 4) ( 2) •( 5) ( 5) ( 3) ( 3) ( 1) ( 1> ( 2> ( 5) 4. Fla. Nat. Banks of Fla. 1,005 184 95 317 29 56 62 50 10 45 23 134 (31) ( 3) ( 1) ( 5) ( 2) ( 1) ( 2) ( 2) ( 1) ( 2) ( 1) (11) 5. Atlantic Bancorp. 771 425 68 57 24 57 59 81 (22) ( 7) ( 2) ( 4) ( 1) ( 2) ( 2) < 4) 6. First Fla. Bancorp. 587 180 90 81 <46 40 66 84 (28) ( 5) ( 4) ( 4) 4) ( 1) ( 3) ( 7) 7. First Fin. Corp 573 381 39 35 118 (12) ( 5> ( 2) ( 1) ( 4) 8. Consolidated Bks. 459 156 281 22 ( 8) (Jl ( 5) ( 2) 9. Ellis Bk. Corp. 447 (ii* 133 11 164 (16) 6) ( 3) ( 1) ( 6i2) 10. Exchange Bancorp. 3^1 285 834) ll. Pan Am. bankshares (13066) 206 - ( 4 43 ) 23 91 ( 31 ( 3) (U) ( 6) ( 2) ( 1) ( 1) ( 1) 12. United Bancshares 384 349 35 ( 6) ( 5) ( 1) 13. City KB Corp. 3*4 374 ( 3> ( 3> 14. Charter Banks 2$8 180 17 16 63 14 ( 8 ( 9) ( 2) ( 1) ( 1) ( 3) ( 1) n l5. Broward Banks 565 265 ( 4) ( 4) 16-. First State Bk. Corp. 231 231 ( *> ( 5) 17. Fla. Com. Bkg. 216 136 80 ( 6) ( 4) ( 2) 18. First Banks of Fla. 199 181 18 ( 6) ( 5) < i). . 19* Data Lease Fin. Corp. 199 92 76 31 ( 4) ( 1) ( 2) ( D 20. American Banks 167 59 57 28 23 ( 6) ( 2) ( 2) ( 1) _ (.1) . 21. Palmer Bk. Corp l48 148 ( 4) ( 4) 22. First Nat. Bks. of Fla. l45 145 ( 4) ( 4) 23. Combanks 115“ ....... 116 ( 5) < 5> . 24. Citizens Bank 104 18 86 ( 5) ( 1) ( 3) 25. Central Bancorp. 99 99 ( 2) ( 2) 26. Conmunity Banks 71 68 3 ( 5) ( 4) < 1) 27. Fla. Bancorp. 66 66 ( 3) ( 3) 28. Jefferson Bancorp. 65 63 ( 3) ( 3) 29. North American Mortg. Corp. 13.............. ........13 ( 2) ( 2) 1/ Deposit data as of June, 1972, adjusted far newly chartered banks and holding company formations and acquisitions through December 31, 1972, except data for First Florida are through January 31, 1973. FEDERAL RESERVE BULLETIN □ MARCH 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 187 entering new markets through acquisitions of the a balanced and competitive banking structure in largest banks in those markets. Florida. In fact, one of the denials involved a Among these three factors, the role of the Fed­ number of elements paralleling those in the present eral Reserve Board has been of major significance. application. In 1971, Southeast Banking Corpora­ In making its decisions, the Board has encouraged tion (the largest banking organization in the State the entry of holding companies into new banking with headquarters in Miami) sought to acquire markets through the establishment of new banks Combanks Corporation which controlled five or through foothold acquisitions. Just how this banks in the Orlando banking market—with $85 policy has been carried out in practice can be seen million in deposits. In denying the application, the in the evidence summarized in Table 2. The fig­ Board stressed that both existing and significant ures show the deposit size of acquired banking potential competition would have been elimi­ organizations in Florida bank holding company nated—since Southeast was most likely to enhance cases during the period 1969-72. During these four its existing position in the rapidly growing Orlando years, the Board approved 136 acquisitions and market by establishing another new bank or denied 13.2 None of the banks acquired had de­ through the acquisition of a bank with a smaller posits in excess of $250 million; only two had volume of deposits (58 Federal Reserve Bulletin deposits in the range of $100-250 million, and 54). eight were in the $50-100 million deposit class. In pursuit of its goal of encouraging a balanced In fact, nearly 93 per cent of the banks acquired and competitive banking structure in Florida, Fed­ had deposits of $50 million or less, and 7 per cent eral Reserve Board members have been remarka­ exceeded that figure. In other words, the Board’s bly of one mind in deciding holding company emphasis on foothold acquisitions is clearly evi­ cases. This conclusion stands out sharply in the dent. Moreover, reflecting the Board’s strong en­ statistics shown in Table 3, which summarize couragement of de novo entry into particular mar­ Board votes on Florida bank holding company kets, almost one-quarter of the acquisitions repre­ cases during the period 1969-72. During these four sented newly-launched banks. years, 135 of the 149 cases (90 per cent) which The 13 holding company applications denied by came before the Board were decided unanimously. the Board reflected the same objective of fostering In fact, there were no dissenting votes at all in the 13 cases in which applications were denied. 2 These 149 cases exclude 18 cases involving holding com­ Among the 136 cases involving approvals, 14 pany formations. Figures on such formations are shown in Table 4. evoked one or more dissents. However, only one TABLE 2 Size of Acquired Banking Organizations in Florida Bank Holding Company Cases, 1969-72 Number of Approved Cases Number of Denied Cases Deposit Size Range of Acquired Organization Deposit Size Range of Acquired Organization ($ millions) ($ millions) Over 100- 50- 10- 0- New Over 100- 50- 10- 0- Ne^ Year Total 250 250 100 50 10 Banks Total 250 250 100 50 10 Banks 1969 17 1 8 5 3 1 1 1 1 1 9 9 9 7 7 7 1 2 0 4 4 3 6 3 0 — — — — 1 1 3 3 1 2 1 1 1 3 7 1 6 9 4 1 11 7 2 4 3 5 —— — — 1 2 2 2 2 2 — — 1 — — — Total 136 0 2 8 59 34 33 13 0 2 4 6 1 0 TABLE 3 Summary of Board Votes on Florida Bank Holding Company Cases, 1969-72 Number of Cases Approved Number of Cases Denied Number of Board Members One Two Three One Two Three Voting Dissent Dissents Dissents Dissent Dissents Dissents 7 18 14 0 6 42 35 7 5 51 48 3 4 25 25 0 Total 136 122 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 FEDERAL RESERVE BULLETIN □ MARCH 1973 TABLE 4 The Board majority admits that—if this appli­ cation were denied—First Florida probably would Florida Bank Holding Company Formations, 1969-72 enter the Dade County banking market. However, Number of Approved Cases* it concludes that the adverse competitive conse­ quences resulting from approval would not be Deposit Size Range of Subsidiary Banks1 ($ millions) substantial. I disagree strongly. In the first place, I believe that—if this application were denied—it Over 100- 50- 10- 0- New Year Total 250 250 100 50 10 Banks is virtually certain that First Florida would be attracted to the Miami market—either de novo or 1969 4 0 0 1 2 1 0 1970 5 1 1 0 2 1 0 through a foothold acquisition. The company is 1971 4 1 0 1 2 0 0 1972 5 0 1 1 1 2 0 already represented in six of the State’s major banking markets, and its pace of expansion con­ Total 18 2 2 3 7 4 0 tinues brisk. In 1972, it acquired one existing bank * All holding company formations for the four-year period were approved by and opened three de novo banks. So far this year, unanimous votes. it has acquired one existing bank, and it has 'Total deposits of subsidiary banks, excluding lead banks. another application pending for a proposed acqui­ sition. Market Structure of Florida Banking case drew three negative votes;3 three cases drew Since this basic issue of potential competition two negative votes, and in 10 cases only one between First Florida and United is at the core Member voted to deny. of this application, two fundamental questions Given this record of previous Board decisions must be answered: (1) What is the likelihood of in Florida holding company cases—and particu­ First Florida entering the Dade County market— larly in light of the earlier Southeast/Combanks the home base of United? (2) How probable is cases—a troublesome question arises: to what ele­ it that United will attempt to expand into the ments in the present case can one point to explain Tampa market—the home base of First Florida— such a dramatic break in the pattern of Board or into other markets in which First Florida is decisions which the majority is willing to make? already competing? To answer these questions, In all candor, I must say that I cannot identify one should have at least a rough appreciation of any elements which would justify approving the the market structure of commercial banking in present proposal, and I can point to several reasons Florida and of the pattern of holding company why it should be denied unanimously. participation in those markets. To facilitate this Adverse Competitive Effects understanding, the 14 largest banking markets in The majority admits that the merger would have the State have been identified in Table 1. The 29 adverse competitive effects in the Dade County multi-bank holding companies in the State have banking market. United is not only present and also been identified, as have been the number of competing in that market, it is the third-ranking banks and the amount of deposits they have in organization in the area—with 9.3 per cent of the each of the principal market areas. total deposits, just behind Southeast Banking Several features stand out in these data. Of the Corp. (24.2 per cent) and City NB Corp. (9.9 per 14 market areas, six are most important—each cent). United has not been sitting by watching as having $1.0 billion or more of total deposits. its principal market area expanded. In 1969, it These are (1) Miami-Dade County ($3.8 billion); chartered a new bank; in 1970 it acquired an (2) Tampa-St. Petersburg ($2.8 billion); (3) Fort existing bank, and it opened a new bank in 1972. Lauderdale ($1.6 billion); (4) Jacksonville ($1.5 Moreover, among all of Florida banking institu­ billion); (5) West Palm Beach ($1.1 billion); and tions, United enjoyed one of the fastest internal (6) Orlando ($1.1 billion). In all of these six rates of growth between 1965 and 1970. Thus, markets, multi-bank holding companies play an any slackening in the group’s performance in re­ important role, and in four of them these compa­ cent years (as claimed in some of the material nies have two-thirds or more of the total deposits. submitted to the Board) should be viewed as a In these six markets (plus two others: Lakeland temporary lapse from the long-run trend. and Melbourne-Titusville), at least six multi-bank holding companies have one or more subsidiaries. 3 This case involved an application by First at Orlando to Still another important fact stands out in Table 1: acquire Citizens Bank of Ocala, a proposed new bank (58 Federal Reserve Bulletin 292-294). Of the 29 multi-bank holding companies in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 189 Florida, only 12 have confined themselves to the not already available in the relevant markets. They acquisition of subsidiaries in a single banking simply argue that—in combination—they can market—while 17 have entered at least two of the service their customers more efficiently, While the 14 principal markets identified. Moreover, two of combined organization could raise capital more the 29 companies have entered 10 of the 14 mar­ advantageously, this is not a public benefit suffi­ kets, and 8 of them have bank subsidiaries in five cient to offset the substantially adverse competitive or more of these markets. Finally, each of the top impact of the merger. Neither is the situation four holding companies has at least one subsidiary improved by the purported pro-competitive result in the Miami, Tampa, Jacksonville, and Orlando claimed by the majority. They assert that “. . . markets. as to the customer in need of wholesale and Focusing specifically on the Miami-Dade regional banking services, the proposal, rather County banking market, the following features than being anti-competitive, should in fact be should be noted. Of the 29 multi-bank holding pro-competitive by creating a fifth institution in companies in the State, 14 have subsidiaries in the Miami market with established relationships that market; only four of these companies are in Jacksonville, Tampa, Orlando, Melbourne and purely local institutions, and 10 are active in other other Florida communities and having in the ag­ markets around the State. Furthermore, of the 8 gregate resources of approximately $1 billion.” multi-bank holding companies that are active in This argument in support of anti-competitive five or more of the 14 leading markets, only banking combinations was declared invalid by the two—First Florida and Atlantic Bancorporation— United States Supreme Court nearly a decade ago. do not have subsidiaries in the Miami-Dade In the Philadelphia National Bank-Girard Trust County area. It will also be noted that United has case, the merger parties attempted to overcome approximately the same volume of deposits as Pan the anti-competitive effects of the proposal in the American Bancshares ($384 million vs. $388 mil­ local area by emphasizing the beneficial competi­ lion, respectively). However, United has extended tive effects in the “wholesale” banking markets. itself into only one other market—while Pan The Court, in prohibiting the merger in June, American has moved into five of the State’s 14 1963, rejected this argument. In so doing it ob­ principal banking markets. served that “. . .If anti-competitive effects in one The foregoing analysis of the structure of market could be justified by pro-competitive con­ Florida’s banking markets and the pattern of hold­ sequences in another, the logical upshot would be ing company participation point to an inescapable that every firm in an industry could, without vio­ conclusion: both First Florida and United are lating Section 7, embark on a series of mergers caught up in a rapidly expanding network of that would make it in the end as large as the multi-bank holding companies vigorously extend­ industry leader. For if all the commercial banks ing themselves into the State’s principal banking in the Philadelphia area merged into one, it would markets. Neither First Florida nor United can be smaller than the largest bank in New York afford to stand aside from this development. In­ City.”4 This conclusion holds in the case of stead, one should anticipate that United—under Florida banks today—for they, too, in combina­ the impact of increasing banking competition (not tion, would not even equal the second largest bank only in Dade County but in the State as a whole) in New York. would find it mandatory to extend its reach into Financial Conditions and Managerial Resources other major metropolitan areas. Otherwise it would The financial condition of the two holding com­ atrophy and decline—a prospect which United panies and their managerial resources would en­ obviously would resist. Moreover, as the majority able them to expand independently of each other. admits, First Florida can be expected to enter the The capital position of both groups of banks is Miami banking market in any case. This market generally satisfactory. Their managements are also extension almost certainly would occur regardless quite able. Although United is the smaller of the of the Board’s action in this case. The only result merging organizations, its Chairman and President of approving this application is to endorse and would become President and Chief Executive Of­ permit the consummation of a seriously anti-com­ ficer of the combined group. The second ranking petitive merger carrying no substantial public ben­ officer of the combined group would be Appli­ efits. cant’s President, who would become Chairman of Lack of Public Benefits In fact, the parties themselves do not claim that 4 United States v. Philadelphia National Bank, et al., 374 the merger would make available any new services U.S. 321 at 370 (1962). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 FEDERAL RESERVE BULLETIN □ MARCH 1973 the Executive Committee. Other senior officers and the Dade County market. The Dade County market directors would also be drawn from the two exist­ is the State’s major banking market and is one ing organizations. In general, the record shows of the most attractive for entry as the ratio of that First Florida and United have a sizable cadre population to banking office is 40 per cent greater of able officials who are fully capable of expanding than for the State as a whole. Additionally, the further the frontiers of their own organizations. area ranks first in per capita income. The majority Commercial banking in Florida would be far better itself recognizes that were the proposal to be off if they were left to do so separately. denied, First Florida would certainly enter the Concluding Observations Dade County market in the near future. Such entry Finally, I come away from the record in this of an additional competitor would be far preferable case with a strong conviction. On the basis of the to the acquisition of the third largest banking Board’s record in previous Florida bank holding organization in the market. company cases—and after examining stage-by- Rather than seeing this proposal as an erosion stage the evidence presented in this case—I would of the highly competitive structure of Dade County have predicted the denial of this application by banking, the majority finds it procompetitive as a substantial majority of the Board—and perhaps to the wholesale banking market. I believe that by a unanimous vote. It was impossible for me the market for such specialized services is already to overlook the obviously anti-competitive conse­ highly competitive and the addition of one more quences, and I could not fail to see the complete element in this market would have only a minor lack of any public benefits. I admit that consid­ procompetitive effect. This is particularly true erable private benefits would accrue to the holding since, despite having deposits of approximately $ 1 companies and their stockholders. However, these billion, the resulting institution would still be are not the factors which the Board must weigh relatively small compared to the major competitors under the Bank Holding Company Act. For the in the national banking market. Any such effect foregoing reasons, I would deny the application. is outweighed by the adverse effects on potential competition in local banking markets throughout the State. Dissenting Statement of Further, I am greatly concerned as to the effects Governor Bucher of this approval on the long-term competitive Approval of this application can only have an structure of Florida banking. I feel it is clear that, adverse effect on the structure of Florida banking. absent this proposal, First Florida and United First Florida is a rapidly growing banking organi­ would be Statewide competitors in the relatively zation. Fourteen of its 28 subsidiaries have been near future. The majority sees no adverse effects acquired in the last three years and, in addition from this proposal in that there would still be 26 to the present proposal, it has plans to acquire three banking organizations with deposits over $100 additional banks in the near future. Its net income million. The proposal does not, however, merge for 197 1 showed an increase of over 25 per cent two $100 million institutions, but rather merges from the previous year. United has not undertaken a $587 million and a $384 million institution, the as widespread expansion as First Florida. How­ sixth and twelfth largest institutions in the State, ever, it is presently capable of doing so. It is a respectively. As an indication of the magnitude viable and growing organization with its internal of the proposal, a review of all Board decisions growth ranking among the best in the State. The for the period 1956 through 1972 indicates that net result of the Board’s action is to eliminate one the Board has only approved two holding company viable competitor in the Florida banking market. formations where the resulting organization was In doing so, the Board overlooks its previously larger than involved in this case. With respect to stated recognition that one of the primary objec­ bank holding company acquisitions or mergers, tives of Congress in enacting § 3 of the Bank only two have been approved where the deposits Holding Company Act was to “encourage a of the acquired institution were larger than those framework for banking structure consisting of as of United. There are only 17 holding companies many separate and competitive banking organi­ in Florida with deposits over $200 million. Were zations as can effectively and efficiently serve the all proposed mergers of which the Board has convenience and needs of the banking public” (54 knowledge to be approved, as well as all reasona­ Federal Reserve Bulletin 925). bly likely mergers, there would only be 10 re­ The Board’s action has the almost immediate maining holding companies with deposits in excess effect of reducing the number of competitors in of $200 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 191 I realize that each application must be examined By this means I could achieve my principal on its merits. However, this proposal is part of purpose (which the majority opinion here seems a clearly developing trend toward concentration in to endorse), namely, to have a pool of lendable the Florida banking structure. Any such proposal funds big enough to meet the borrowing desires should only be approved on a clear showing that of the biggest corporate businesses. I could do that approval is required by considerations bearing by pooling the lendable funds of all my controlled upon the public convenience and needs. The banks—and profitably too, because it costs less record in this case is devoid of any such consid­ to handle a few big loans than to handle many erations favoring approval. I would, therefore, small ones. deny the application. Of course, if I loaned a large portion of the funds of my banks to the big borrowers, there might not be enough left over to take care of local Dissenting Statement of housing needs, small businesses, and consumers. Governor Robertson But let someone else worry about that. Maybe they As indicated by the majority, this case has will be taken care of by the saving and loan received an extraordinary amount of attention, as associations, the mutual savings banks, or the befits a case of this importance. I agree with smaller commercial banks which have the ability Governor Brimmer and Governor Bucher that the and grit (of which it takes a lot these days) to application should be denied. My reasons are remain independent of holding companies. essentially the same as theirs, and hence there is However, I am not the commanding official of no purpose to be served by reiteration. However, a bank holding company; rather, I am just one I would add just a note. of seven Federal Reserve Governors, with just one To my dissent in the application of First Inter­ vote to cast out of seven. I cast it on the side national Bancshares, Inc., Dallas, Texas, to form of denial. a bank holding company through acquisition of successors to First National Bank in Dallas and Houston-Citizens Bank & Trust Company, Hous­ FIRST WISCONSIN BANKSHARES ton (approved by the Board in November 1972) CORPORATION, (F.R. Bulletin, December 1972, p. \028 et seq.) MILWAUKEE, WISCONSIN I attached an article by Art Buchwald describing Order Approving Acquisition of Bank an absurdly ludicrous result of mergers and merg­ ers on top of mergers. I did so because, in a First Wisconsin Bankshares Corporation, Mil­ humorous way, Mr. Buchwald had put his finger waukee, Wisconsin, a bank holding company on a real and important problem. At the time I within the meaning of the Bank Holding Company did not regard the piece as in any way prophetic. Act, has applied for the Board’s approval under Now I am not so sure, because if I were the § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to commanding official of a bank holding company, acquire 80 per cent or more of the voting shares I would read the decision in this case as letting of First Wisconsin Bank of Waukesha, Waukesha, down the bars. No longer would I think in terms Wisconsin, a proposed new bank (“Bank”). of applying for permission to buy a bank here, Notice of the application, affording opportunity another one there, and another one somewhere for interested persons to submit comments and else. That takes time and lots of hard work. I views, has been given in accordance with § 3(b) would short-cut the laborious task of getting “big” of the Act. The time for filing comments and views by working toward a merger with another holding has expired, and the Board has considered the company, and thus acquire a whole parcel of banks application and all comments received in light of at one time (as here). But why should I think the factors set forth in § 3(c) of the Act (12 U.S.C. small? Why should I think in terms of acquiring 1842(c)). just one holding company in my State? Why not Applicant controls 17 banks with aggregate de­ try to buy up several companies—maybe all but posits of $1.7 billion, representing 16 per cent of one of them—and merge them into mine? (I would the total deposits held by commercial banks in want at least one to remain unaffiliated so that the Wisconsin, and is the largest banking organization Department of Justice could not assert that I was in the State. (All banking data are as of December eliminating all competition, and possibly institute 31, 1971, and reflect acquisitions and formations a legal action which would stymie the whole approved by the Board through July 25, 1972.) venture.) Bank is a proposed new bank and its acquisition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 FEDERAL RESERVE BULLETIN □ MARCH 1973 by Applicant would not increase the concentration convenient banking services in the southern sector of banking resources nor have any significant ad­ of the city since all present banking offices are verse effect on any competing bank in the relevant located in the downtown and extreme northeast areas. sections of Waukesha. Considerations relating to The proposed bank is to be located in the City the convenience and needs of the communities to of Waukesha in the Milwaukee banking market be served are consistent with and lend some sup­ wherein Applicant holds 32.4 per cent of total port toward approval of the application. deposits as the largest of 43 banking organizations Objections to the proposed acquisition of Bank represented in this market. However, Applicant is have been raised by financial institutions in the not presently represented in the City of Waukesha area. They argue there is no present requirement which has a population of approximately 40,000, for the establishment of a bank in the area to serve and under the State’s branching laws its subsi­ public conveniences, and further that Applicant’s diaries are not permitted to branch into the area dominant position and large resources enable it to of the proposed bank’s location. operate Bank at a loss for a longer period of time The 1970 census indicates that Waukesha is the in order to preempt a position in the market. It third fastest growing city in Wisconsin with over is the opinion of the Board, however, that the 40,000 population. Its 1960-1970 increase in pop­ Waukesha area is capable of supporting the ulation of 34.2 per cent represented a growth in proposed new bank and that the consummation of population almost three times that of the State as this proposal should not be regarded as the a whole. Waukesha County had a population preemption of a bank site by Applicant in the growth during this same period of 46.2 per cent. Waukesha area. Additionally, the record indicates The population to banking offices within the Wau­ that there are no other proposals pending at the kesha area is 8,000 as compared with 5,000 for present time to establish a bank in the area. It the State. In view of the rapidly increasing popu­ is the Board’s judgment that the proposed acquisi­ lation, and economic expansion taking place tion would be in the public interest and that the within the Waukesha area, it appears that the area application should be approved. can support other financial institutions. On the basis of the record, the application is Applicant’s nearest subsidiary banking offices approved for the reasons summarized above. The are located nine miles northeast and 10 miles transaction shall not be consummated (a) before southeast of Bank. Since Bank is a proposed new the thirtieth calendar day following the effective bank, no present competition would be eliminated date of this Order, or (b) later than three months by consummation of this proposal, nor does it after that date, and (c) First Wisconsin Bank of appear likely that competition would develop in Waukesha, Waukesha, Wisconsin, shall be opened the future. Competitive considerations are consis­ for business not later than six months after the tent with approval of the application. effective date of this Order. Each of the periods The financial condition of Applicant and its described in (b) and (c) may be extended for good subsidiary banks are considered to be generally cause by the Board, or by the Federal Reserve satisfactory especially in view of Applicant’s plan Bank of Chicago, pursuant to delegated authority. for the capital augmentation of its subsidiary By order of the Board of Governors, effective banks. The managerial resources of Applicant and February 22, 1973. its group of banks are also considered to be gener­ Voting for this action: Chairman Burns and Governors ally satisfactory and prospects for the group appear Mitchell, Daane, Brimmer, Sheehan, and Bucher. Voting favorable. Bank, as a proposed new bank, has no against this action: Governor Robertson. operating history but projected earnings and (Signed) Tynan Smith, growth for the new bank under Applicant’s control [seal] Secretary of the Board. appear favorable. Banking factors are consistent with approval of the application. Dissenting Statement of The primary banking needs of the Waukesha Governor Robertson area appear to be satisfactorily served at the present time. However, Applicant proposes to The Board in approving this application has enable the new bank to offer a number of more conferred on Applicant, the largest State banking sophisticated services to include investment coun­ organization, the opportunity to further dominate seling and portfolio analysis, international bank­ the Milwaukee banking market by permitting its ing, municipal finance, lease financing, and data entry into the Waukesha City area. I am firmly processing. Applicant also points to the need for convinced that consummation of this proposal will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 193 result in the foreclosure of a substantial amount chartered by independent interests, the standards of the Act of future competition and in a further increase in would require a finding that competition would be substantially lessened by the proposal’s consummation. But the law is no the unconscionably high level of concentration of less opposed to a proposal which suppresses the development banking resources presently vested in Applicant of competition than to one which eliminates competition which already exists. In every case, the test is the probable effect in the Milwaukee area. I, therefore, have voted which the acquisition would have on future competition in the to deny the application. relevant market. On the present record, it appears probable In considering this proposal, I have* become that consummation of Applicant’s proposal would result in a substantially less competitive and significantly more concen­ more acutely aware of Applicant’s dominance over trated banking market in the immediate area and in Milwaukee banking in the State of Wisconsin. It holds 16 per County than would likely develop if the proposal were not cent of the total deposits of commercial banks in consummated. The Board is therefore precluded from approv­ ing the application unless such anticompetitive effects are the State, whereas the second and third largest clearly outweighed in the public interest by the proposal’s banking organizations hold deposits representing effect in meeting the convenience and needs of the community to be served. 6.7 and 6.3 per cent, respectively. Furthermore, turning locally to the Milwaukee banking market The Board approved the acquisition by Appli­ where the new bank is to be located, we find that cant in June 19702 of a proposed new bank in Applicant already controls $1.2 billion in deposits, the Madison banking market. Applicant then con­ representing 32.4 per cent of the market’s gross trolled 14 banks with aggregate deposits of $1.4 deposits. The second and third largest banking billion, two of which subsidiaries held 32 per cent organizations represented in this market control of the Madison banking market. The Board’s $574 and $473 million in deposits, representing Statement cited an economic need for the new market shares of 15.8 and 13.0 per cent, respec­ bank in a shopping center soon to be opened and tively—less than half the percentage of deposits noted that only First Wisconsin Bankshares Cor­ held by Applicant. Seven other banking organi­ poration had evidenced an interest in the estab­ zations hold market deposits ranging from $209 lishment of a convenient banking service for this to $67 million, and 33 other banking organizations area. I voted to deny that application, and the with less than $60 million deposits are attempting Dissenting Statement pointed out that the effect to compete in this market area. of the proposal would be to perpetuate the domi­ In 1968 the Board denied an application by nance of the largest banking organization in Wis­ Applicant to establish a new bank in the Milwau­ consin; foreclose the opportunity for the establish­ kee banking market which was to have been lo­ ment of competitive banking facilities at the cated in the southwestern portion of Milwaukee proposed location; increase the concentration of County, and at that time Applicant controlled 12 banking resources in the relevant areas; and would banks with $1.3 billion in total deposits.1 In the restrict the development of nearby banking offices Statement which accompanied the denial Order, established by smaller competing banks. the Board indicated its views concerning consid­ Although the principal objections set forth in erations applicable to such a proposal by the the Dissenting Statement discussed above are ap­ State’s largest banking organization, as follows: plicable to the present application, there are dis­ tinguishing facts which make the present case even Determination of the competitive effects of a proposed holding company acquisition, whether the proposal is one to more objectionable. In my opinion, the record in acquire an existing bank or a new bank to be organized under this application established no present need for the the holding company’s direction, turns on the issue of whether new bank, whereas in the Madison case the new consummation of the proposal will result in a substantially less competitive banking market than is likely to exist or develop bank was to be located in an almost completed in the event that the proposal is not consummated. In the shopping center where it afforded more convenient present case, consummation of the proposal would result in expansion of the dominant banking organization in Milwaukee banking services to those customers. County and would tend to preclude entry which could lessen Applicant presently maintains 21 banking of­ the extent of Applicant’s dominance in the county, and provide fices in the Milwaukee market, the closest is nine competition to offices of Applicant’s present subsidiaries which serve the immediate area. miles from the proposed site of Bank on the southern fringe of the City of Waukesha, less than two miles from downtown Waukesha. The new In view of present concentration in Milwaukee County bank is to be located on a six and a half acre banking and the desirability of encouraging the development of new sources of competition, it seems clear that if Applicant’s tract which Applicant states will be developed as proposal had involved an attempt to acquire a new bank M968 Federal Reserve Bulletin 1024; banking data are as of December 31, 1967. 21970 Federal Reserve Bulletin 586. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 FEDERAL RESERVE BULLETIN □ MARCH 1973 a shopping center. The area is not densely popu­ ested persons might express their views. Notice lated at the present time, but a condominium of receipt of the application was published in the development is under construction with plans for Federal Register on August 3, 1971 (36 F.R. completion of 170 units within three years. Appli­ 14285) which provided an opportunity for inter­ cant also states that its projected service area for ested persons to submit comments and views with the new bank is based upon the k imminent com­ respect to the proposed transaction. A copy of the pletion of the Circumferential Highway, . . . the application was forwarded to the Department of western leg north to 1-94 is planned for completion Justice for its consideration. in 1975.” However, there is a conflicting report In view of the numerous comments received by from the Chief Planning Engineer of the Waukesha the Board concerning this proposal, the Board District Office indicating that there are no sched­ determined that a public oral presentation with uled plans for the construction of the western leg respect to this matter would be in the public of the highway at the present time but that it is interest. On November 18, 1971, notice of such still under consideration by the city and county public oral presentation to be held in Minneapolis, authorities. It is apparent, therefore, that only a was published in the Federal Register (36 F.R. banking organization of substantial size could af­ 22027). Subsequently, the Commerce Commis­ ford to support a new bank in this essentially sion of the State of Minnesota unanimously rec­ undeveloped area for the long period of time ommended that the Board deny the application and required for its operations to become profitable. requested a formal hearing. By notice published The acquisition by Applicant of the proposed in the Federal Register on December 28, 197 1 (36 new bank represents an expansion of its dominant F.R. 25071), the Board directed that a public position in the Milwaukee banking market, and hearing be held commencing on February 28, would become a deterrent to new entry in that area, 1972, at the Federal Reserve Bank of Minneapolis, thereby denying the market a means for increasing before the Honorable Dent D. Dalby, Administra­ competition and for lessening the high level of tive Law Judge. All persons desiring to give testi­ concentration of banking resources present therein. mony, present evidence or otherwise participate I oppose most strongly the adverse competitive in the hearing held in Minneapolis, Minnesota, on effects of this proposal on area banking, and I find February 28-March 3, 1972, were afforded an nothing in the record indicating it is justified on opportunity to do so. The time for filing comments the basis of serving any needs of or public benefits and views has expired and all those received, as to the area residents. I, therefore, have voted to well as the entire record of the hearing, including deny the establishment of a new bank by the the transcript, exhibits, exceptions, rulings, all largest banking organization in the State and in briefs and memoranda filed in connection with the the Milwaukee market, and, thereby to increase hearing, and the Recommended Decision, findings Applicant’s dominance over that market’s bank­ of fact, and conclusions of law filed by the Ad­ ing. ministrative Law Judge have been considered by the Board. NORTHWEST BANCORPORATION It is hereby ordered for the reasons set forth MINNEAPOLIS, MINNESOTA in the Board’s Statement of this date, that the said application be and hereby is approved, provided Order Approving Acquisition of Bank that the transaction shall not be consummated (a) Northwest Bancorporation, Minneapolis, Min­ before the thirtieth calendar day following the nesota, has applied for the Board’s approval under effective date of this Order or (b) later than three § 3(a)(3) of the Bank Holding Company Act (12 months after the effective date of this Order, unless U.S.C. 1842(a)(3)) to acquire 90 per cent or more such period is extended for good cause by the of the voting shares of Farmers and Merchants Board, or by the Federal Reserve Bank of Min­ State Bank of Stillwater, Stillwater, Minnesota neapolis pursuant to delegated authority. (“Bank”). By order of the Board of Governors, effective As required by § 3(b) of the Act, the Board February 26, 1973. gave written notice of receipt of the application Voting for this action: Chairman Burns and Governors to the Commissioner of Banks of the State of Mitchell, Daane, Sheehan, and Bucher. Voting against this Minnesota and requested his views and recom­ action: Governors Robertson and Brimmer. mendation thereon. The Commissioner did not formally object to the application but did suggest (Signed) Tynan Smith, the desirability of a public hearing at which inter­ [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 195 Statement business of banking in any part of the United States. Nor may the Board approve a proposed Nature of transaction. Northwest Bancorpora­ acquisition, the effect of which, in any section of tion, Minneapolis, Minnesota, a registered bank the country, may be substantially to lessen com­ holding company, has applied to the Board of petition, or to tend to create a monopoly, or which Governors, pursuant to § 3(a)(3) of the Bank in any other manner would be in restraint of trade, Holding Company Act of 1956 (12 U.S.C. unless the Board finds that the anticompetitive 1842(a)(3)), for prior approval of the acquisition effects of the proposed transaction are clearly of 90 per cent or more of the voting shares of outweighed in the public interest by the probable Farmers and Merchants State Bank of Stillwater, effect of the transaction in meeting the conven­ Stillwater, Minnesota. ience and needs of the communities to be served. Views and recommendation of supervisory au­ In each case, the Board is required to take into thority. As required by § 3(b) of the Act, the consideration the financial and managerial re­ Board gave written notice of receipt of the appli­ sources and future prospects of the bank holding cation to the Commissioner of Banks of the State company and the banks concerned, and the con­ of Minnesota and requested his views and recom­ venience and needs of the communities to be mendation thereon. The Commissioner did not served. formally object to the application but did suggest Competitive effect of proposed transaction. Ap­ the desirability of a public hearing at which inter­ plicant controls 78 banks located variously in ested persons might express their views. Minnesota, Iowa, Montana, Nebraska, North Da­ Public Hearing. Notice of receipt of the appli­ kota, South Dakota, and Wisconsin. Within Min­ cation was published on August 3, 1971, in the nesota, Northwest controls 48 banks with aggre­ Federal Register (36 F.R. 14285), providing an gate deposits of approximately $2.2 billion, repre­ opportunity for interested persons to submit com­ senting 24 per cent of the total commercial bank ments and views on the proposed transaction. deposits in that State.1 Applicant is the second Numerous comments concerning the proposal largest banking organization and bank holding were received by the Board and, on November company in Minnesota. The largest organization, 18, 1971, notice of a public oral presentation to First Bank System, controls 50 banks with close be held in Minneapolis was published in the Fed­ to 29 per cent of total commercial bank deposits eral Register (36 F.R. 22027). in that State. Subsequently, the Commerce Commission of As we have previously stated in our Order of the State of Minnesota unanimously recommended January 31, 1968, approving Applicant’s applica­ denial of the application and requested a formal tion to acquire The First National Bank of Ely hearing. The Board concluded that such a hearing (54 Federal Reserve B u lletin 222, at 223): would be in the public interest and, by notice published in the Federal Register on December 28, Against this background of present concentration, any 1971 (36 F.R. 25071), the Board directed that a proposed acquisition by one of the largest organizations war­ rants careful consideration of the effect which consummation public hearing be held commencing on February of the proposal would have in further expanding the size and 28, 1972, at the Federal Reserve Bank of Min­ scope of such organization, in addition to consideration of the neapolis before the Honorable Dent D. Dalby, probable effect of the proposal on competition in markets which presently are served or potentially could be served by the Administrative Law Judge. organization’s subsidiary banks or by the bank involved. A trial of the issues was held before the Ad­ Farmers and Merchants, as of year-end 1970, ministrative Law Judge in Minneapolis from Feb­ had deposits of less than $7 million,2 an amount ruary 28 through March 3, 1972. All persons equal to .08 per cent of total deposits in the State. desiring to give testimony, present evidence, or The proposed acquisition therefore postures no otherwise participate were afforded an opportunity significant effect on Applicant’s overall size, either to do so. The voluminous transcript of testimony in absolute or relative terms. and the numerous exhibits placed into the record The town of Stillwater (population 10,191— attest to the extensive participation by interested 1970 census) is located about 18 miles northeast persons. Statutory consideration. Section 3(c) of the Act provides that the Board shall not approve an ac­ ’As of December 31, 1970. All banking data are as of this quisition that would result in a monopoly or would date unless otherwise noted. be in furtherance of any combination or conspiracy 2 Deposit figure does not include $2.3 million in temporary (two days) public funds which were withdrawn subsequent to to monopolize or to attempt to monopolize the year-end. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 FEDERAL RESERVE BULLETIN □ MARCH 1973 of downtown St. Paul and is the county seat of growth appears to be due, at least in significant Washington County, which forms the eastern edge part, to the lack of adequate sewerage facilities. of the Twin Cities area and is the least populated The present corridor of undeveloped land is not county in the seven-county metropolitan area. The expected to be developed for a number of years. county’s present population, according to 1970 Moreover, further growth is more likely to move census data, is 82,948, an increase of 58 per cent to the south of Stillwater, to the Cottage Grove since 1960. However, the bulk of the increase area, and more likely will serve to channel some stems from the southern portions of the county, growth away from Stillwater rather than toward in the Cottage Grove and Woodbury areas. Still­ it. water, situated in the northeastern quadrant of the It appears that banks in Stillwater do not signif­ county, is connected to the Metropolitan Twin icantly compete with banks in St. Paul and Min­ Cities Freeway System by a four-lane highway. neapolis. The record shows that Stillwater banks The major employer for Stillwater residents is are not responsive to changes in services by Twin Andersen Corporation (a large manufacturer of City banks and that, to the extent that introduction window units), located in Bayport, three miles of a banking service into the Minneapolis-St. Paul south of Stillwater. The prospect for industry area was followed by the introduction of such growth in the Stillwater area is slim, due to the service into Stillwater, a significant time lag inter­ lack of available sites within the present city vened. After giving due consideration to the find­ boundaries and the strict Minnesota anti-pollution ings, conclusions, and reasoning of the Adminis­ laws which discourage development along the St. trative Law Judge, and after close examination of Croix River, which forms the eastern edge of the the entire record in this case, the Board concludes city and the boundary between Minnesota and that the Twin Cities SMSA is not the relevant Wisconsin. market for examining the competitive effects of The principal competitive issue posed at the the proposed acquisition. hearing centered upon the delineation of the rele­ Applicant does not presently control any bank vant geographic area, or “section of the country” in Washington County. Northwest’s banking sub­ within which the competitive effects of Applicant’s sidiary closest to Bank is located in downtown St. proposal should be measured. Protestants contend Paul, 18 miles from Bank. A survey of customers that the relevant competitive area is a seven-county of Bank and of Applicant’s subsidiaries within a area or at least the five-county Twin Cities SMSA, 25-mile radius of Bank indicates that there is some either of which includes Washington County; and overlapping of the service areas, but with no that, because of Applicant’s extensive commercial significant competitive consequences. bank holdings in the relevant area, no further Bank competes with two other independent expansion by Applicant through acquisition of area banks in Stillwater, namely, First National Bank banks should be permitted. The Administrative ($32 million in deposits), and Cosmopolitan State Law Judge found the Twin Cities SMSA to be Bank ($ 10 million in deposits), and also with First the relevant market. However, the Board con­ State Bank in Bayport ($9 million in deposits). cludes that the actual and potential banking market Bank’s proportionate share of the deposits held by of Bank is much more limited than the area the four competing banks has declined from 14 proposed by competitors and found by the Ad­ per cent at year-end 1966 to 12 per cent at year-end ministrative Law Judge as the relevant competitive 1970. Bank is the smallest and least aggressive market area. Much of Protestants’ evidence on this bank in Stillwater, where the largest bank is ap­ point related to governmental boundaries incorpo­ proximately five times Bank’s size. In the Board’s rating Stillwater within the Twin Cities SMSA. view, Applicant’s proposal contemplates nothing Evidence of this type is not persuasive in the more than a “foothold” entry into a market domi­ absence of a showing that the governmental nated by another organization. The most likely boundaries have genuine economic significance in effect of the acquisition would be to strengthen terms of delineation of a relevant banking market. Bank and enable it to compete more aggressively Stillwater is physically separated from the central in Stillwater. The only alternative to Applicant’s urban mass of Minneapolis and St. Paul by a entry through such small bank is by entry de novo. six-to-eight-mile strip of farmland and, histori­ The projected population growth of Washington cally, urban growth from the Twin Cities area County might appear to make entry attractive. toward Stillwater has been very slow in compari­ However, the projected population growth is likely son with growth in other directions. Such restricted to be centered to the south of Stillwater in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 197 Cottage Grove area. Also, the small compact size and prospects of Applicant and its present subsi­ of downtown Stillwater seems to preclude de novo diaries are regarded as satisfactory. It was stipu­ entry in that area. Furthermore, Stillwater appears lated by the parties to the hearing that Bank is to be adequately serviced with no need for any a viable banking organization and that the present new banking offices. Finally, it may be noted that management is competent. Applicant proposes to the Comptroller of the Currency, in June 1967, utilize its considerable personnel resources to denied an application for a new bank charter in strengthen Bank’s management, and it is believed a proposed shopping center on the south side of that the infusion of additional experienced person­ Stillwater and it appears that, since the 1967 nel will enhance Bank’s future prospects, espe­ denial, there has been no material change in the cially in view of the fact that Bank’s current need for additional banking services. On the facts president contemplates retirement in the near fu­ of record, particularly the distances separating ture. Banking factors lend some weight toward Bank from Applicant’s subsidiaries, the number approval. There is no evidence that substantial of banks located in the intervening areas and the needs of banking customers in Stillwater are going prohibitions of Minnesota law against branch unserved. However, consummation of the pro­ banking, it appears that consummation of the pro­ posal will enable Bank to become a viable alter­ posal would not foreclose significant potential native source of full banking services and Appli­ competition. cant has indicated it will encourage Bank to ex­ The Department of Justice, in commenting on pand consumer credit and home improvement fi­ this application, stated that “ ‘eventual deconcen­ nancing, to commit funds to student loan pro­ tration’ [in Minnesota] can most likely come about grams, and to add and improve special types of through the development of regional holding com­ checking accounts. Considerations relating to the panies” and the likelihood of entry into this market convenience and needs of the communities to be by small holding companies would be diminished served are consistent with approval and lend some if Applicant’s proposed acquisition were ap­ weight toward approval of the application. proved. However, commencing with 1945, Ap­ Summary and conclusion. On the basis of all plicant’s share of commercial bank deposits in the relevant facts contained in the record, and in the Twin Cities SMSA has been on the decline, from light of the factors set forth in § 3(c) of the Act, 34.0 per cent at year-end 1961 to 31.4 per cent it is the Board’s judgment that the proposed trans­ at year-end 1970. While the decline is not as great action would be in the public interest and that the as some might favor, nevertheless, the trend is application should be approved. downward. The Department of Justice’s second argument Dissenting Statement of Governors in opposition to this application is that approval Robertson and Brimmer of this application would result in a transfer of the “overwhelming dominance enjoyed by [Ap­ In our judgment, consummation of the proposal plicant and First Bank System] from the central will eliminate existing competition and have an city to the rapidly growing suburban areas within adverse effect on the deconcentration of banking the Twin Cities SM SA.” It appears from the resources in the State of Minnesota, particularly record that the rapidly growing suburban areas are in the Twin Cities SMSA. Based upon the facts not in that part of Washington County where of record, we would deny the application. Stillwater is located, but rather to the south of The record shows that Applicant’s banking sub­ Stillwater in the Woodbury and Cottage Grove sidiaries and Bank presently compete to some areas. extent for deposits and, to a somewhat lesser The Board concludes that the consummation of extent, for loans. Thus, we agree with the Admin­ the proposed transaction would not result in a istrative Law Judge’s finding that consummation monopoly, nor be in furtherance of any combina­ of the transaction would eliminate some existing tion, conspiracy, or attempt to monopolize the competition. We also agree with his finding that, business of banking in any part of the United “The evidence in this case indicates that Wash­ States, and would not restrain trade, substantially ington County, including Stillwater, is a part of lessen competition, nor tend to create a monopoly the metropolitan marketing area and [will become in any section of the country. further integrated into the metropolitan market Convenience and needs of the communities to area] with future population growth. Consumma­ be served. The financial condition, management, tion of Northwest’s proposal will increase its al- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 FEDERAL RESERVE BULLETIN □ MARCH 1973 ready large share of the area market and is in­ tem. The average size of the 67 banks of Applicant herently likely to lessen competition.” and First Bank System is almost four times as large Applicant and First Bank System together hold as the average among the 540 other banks located almost 53 per cent of all commercial banking outside the Twin Cities SMSA. Applicant’s and deposits in Minnesota, with Applicant controlling First Bank’s affiliates are concentrated in the major 24 per cent.1 The record indicates that the concen­ population centers. It appears to us that analysis tration of deposits held by these two organizations of the banking structure of Minnesota discloses is unmatched in any other unit banking or limited an extreme concentration of resources in the two branching State. Furthermore, the data presented giant holding companies of Applicant and First show that the combined share of deposits held by Bank System. Moreover, the most critical imbal­ the third, fourth, and fifth largest organizations in ance exists in the important Twin Cities area. No Minnesota is the smallest among all restrictive significant decrease in concentration has occurred branching States. there, and thus far no third banking organization The Administrative Law Judge noted that, while has been able to mount an effective challenge to the general trend in unit banking States, including the dominance of Applicant and First Bank Sys­ Minnesota, is toward deconcentration, attributable tem. to the chartering of banks in the fast growing In approving the acquisition herein, the Board suburban areas, nevertheless the deconcentration seems to be forsaking its previously expressed occurring in Minnesota over the past 15 years is concern with respect to an acquisition by a domi­ “considerably less proportionately than in most nant banking organization and the resulting fore­ other banking [SJtates. With this extreme concen­ closure of opportunities for eventual deconcentra­ tration, any proposed acquisition by one of the tion. As the Board has stated in First Wisconsin largest banking organizations warrants the most Bank Shares Corporation (54 Federal Reserve critical scrutiny.” B ulletin 645, at 647-648): The Twin Cities SMSA is both the banking ... If every newly developing need for banking facilities center for the Upper Midwest and the most rapidly which arises in a concentrated market were to be filled by growing area in Minnesota, with a 1970 population the market’s dominant organization, any meaningful decon­ centration of the market’s banking resources would be made of about 1,814,000, representing 48 per cent of impossible, and further concentration might be encouraged. Minnesota’s population. Over half of the com­ Each application by such an organization to expand within its mercial bank deposits in the State is held by banks present trade area, even through acquisition of a new bank, must therefore be examined to determine its probable effect located in the Twin Cities SMSA. Washington on existing concentration, whether it will foreclose an oppor­ County, the county seat of which is located in tunity for new entry which could provide additional competi­ Stillwater, experienced a 58 per cent growth rate tion and possibly promote a decrease in concentration, and its effect in limiting the development of existing competitors during the decade of the 1960’s. The population located in or near the area to be served by the new institution. of Washington County is projected to increase by It is our view that the Administrative Law Judge over 47 per cent during the 1970’s. Thus, concen­ correctly analyzed the consequences of the tration and preemption of banking locations take proposed acquisition in concluding that: on particular significance in the Twin Cities SMSA. . . . The two largest banking organizations have preempted The competitive imbalance existing in Minne­ many of the good acquisitions, the major banks that are providing correspondent services. Banking competition in the sota as a whole is exceeded by that existing in metropolitan area and in the State will be promoted by devel­ the Twin Cities area, where 72 per cent of the opment of the smaller bank holding companies. Acquisition commercial deposits are controlled by Applicant by Northwest of one of the available merger-minded banks, particularly one in a key location on the eastern edge of the and First Bank System, their shares, respectively, metropolitan area, would reduce the growth possibilities of the being 31.4 per cent and 40.2 per cent. Such smaller bank holding companies. In this respect, it would have an anticompetitive effect and be contrary to the public interest. extreme concentration in the hands of two organi­ zations is virtually unmatched in any other large A similar position was taken by the Department unit banking SMSA. of Justice in its letter to the Board advising that Of the 724 banks in Minnesota, 607 are located such an acquisition “would have an adverse effect outside of the Twin Cities SMSA, and 67 of the on competition in the Twin Cities SMSA.” Justice 607 are affiliates of Applicant or First Bank Sys­ commented that, “The ‘eventual deconcentration’ can most likely come about through the develop­ ment of regional holding companies. Besides Ap­ 1 All banking data are as of December 31, 1970, unless otherwise noted. plicant and FBS [First Bank System], four holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 199 companies currently operate in Minnesota. These would afford smaller banking organizations an holding companies are much smaller than the two opportunity to grow and develop the capability to giants, ranging in size from $35 million to $220 compete effectively. We believe that such a policy million in deposits. If Applicant is allowed to requires denial of this application. acquire Stillwater Bank, the likelihood of entry On the facts of this case, we believe that the into this attractive suburban area by an existing adverse effect that consummation of the transac­ small holding company, or by a new holding tion is likely to have on competition, and the company which might be organized by an inde­ absence of substantial benefit to the public, impel pendent bank, would tend to be diminished.” denial of the application. Applicant argues that Bank is so small as to render the matter of banking concentration incon­ UNITED STATES OF AMERICA sequential. It is true, of course, that Bank’s de­ BEFORE THE BOARD OF GOVERNORS posits are but a minute fraction of Northwest’s OF THE FEDERAL RESERVE SYSTEM banking subsidiaries’ deposits. However, as the WASHINGTON, D C. Administrative Law Judge indicated, approval of Recommended Decision the subject acquisition on such a theory would allow Applicant “to acquire most of the commer­ Northwest Bancorporation, Minneapolis, Min­ cial banks in Minnesota.” To view this acquisition nesota, a registered bank holding company, has in isolation, attempting thereby to justify it as de applied to the Board of Governors, pursuant to minimis, would seriously violate the fundamental § 3(a) of the Bank Holding Company Act of 1956 letter and spirit of the Bank Holding Company (12 U.S.C. 1842(a)), for prior approval of the Act. As the U. S. Supreme Court said in U.S. acquisition of 90 per cent or more of the voting v. Philadelphia National Bank, 374 U.S. 321, at shares of Farmers and Merchants State Bank, 365 fn. 42 (1963): Stillwater, Minnesota. if concentration is already great, the importance of Public Hearing. Notice of receipt of the appli­ preventing even slight increases in concentration and so pre­ cation was published in the Federal Register on serving the possibility of eventual deconcentration is corre­ spondingly great. August 3, 1971, (36 Federal Register 14285), providing an opportunity for interested persons to The Board has previously recognized the prece­ submit comments and views on the proposal. On dential effect of its determinations. In Charter New November 18, 1971, notice of a public oral pre­ York Corporation (54 Federal Reserve B ulletin sentation was published in the Federal Register. 925, at 928), the Board said: (36 Federal Register 22027). The Board concluded . . . Although each application must be judged on its own that a hearing would be in the public interest and merits, sound administrative procedure requires consideration on December 20, 1971, issued an order pursuant of the precedential effect of determinations made pursuant to the Act. [Citing, Brown Shoe Co. v. United States, 370 U.S. to § 262.3(f) of the Board’s Rules of Procedure 294 (1962).] (12 CFR § 262.3(f)) setting the matter for hearing. While no agency is required to follow precedent which subsequent developments establish to be improvident, it should A prehearing conference was held on January avoid establishing precedent which, if consistently applied, will 31, 1972, at Minneapolis. The State of Minnesota clearly do violence to the letter and spirit of the legislation and 12 banking organizations entered appearances which it has the duty of impartially adminstering. To do otherwise would be to confer on a particular applicant a in opposition to the application. At the conference competitive advantage which similarly situated applicants the issues were defined, as subsequently set forth would be deprived in the future of the opportunity to overcome, in a Prehearing Conference Order dated February and the unwillingness of a particular applicant to undertake less anticompetitive methods of expansion which are within 16, 1972. Pursuant to the hearing notice, a trial its capability does not justify such a preference. on the issues was held at Minneapolis from Feb­ Approval of the subject application would en­ ruary 28 through March 3, 1972. All persons courage Applicant to expect approval of significant desiring to present evidence, or otherwise partici­ expansion by a series of small increases. pate, were permitted to do so. Briefs were filed It is our view that eventual deconcentration of by some of the parties on August 28, 1972. this highly concentrated market in the Twin Cities Views and Recommendations of Supervisory SMSA is critically dependent upon a regulatory Authority. As required by § 3(b) of the Act, the policy that effectively restricts expansion by dom­ Board gave written notice of receipt of the appli­ inant banking organizations in areas of their most cation to the Minnesota Commissioner of Banks. extreme concentration (in the absence of overrid­ The Commissioner did not object to the application ing procompetitive considerations). Such policy but recommended a public hearing. By letter dated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 FEDERAL RESERVE BULLETIN □ MARCH 1973 December 9, 1971, the Minnesota Commerce First Bank System holds a larger share of the Commission unanim ously disapproved the commercial deposits in its metropolitan statistical proposed acquisition. area than does the largest banking organization in Statutory Considerations. Section 3(c) of the any other metropolitan statistical area in the six­ Act confers upon the Board broad discretionary teen unit banking states with deposits of more than authority in shaping banking policy with reference one billion dollars. Northwest, the second largest to bank holding company acquisitions and merg­ banking organization in Minnesota, also holds a ers. It enjoins approval of “ any acquisition or higher percentage of such commercial bank de­ merger or consolidation . . . which would result posits than does the first largest of any other in a monopoly, or would be in the furtherance statistical area, with deposits of more than one of any combination or conspiracy to monopolize billion dollars, with but one exception. or attempt to monopolize the business of banking The general trend in unit banking states, in­ in any part of the United States” or “any other cluding Minnesota, is toward deconcentration at­ proposed acquisition or merger or consolidation tributable to the chartering of independent banks . . . whose effect . . . may substantially lessen in the faster growing suburban areas. Deconcen­ competition, or tend to create a monopoly, or tration over the past 15 years in Minnesota, a drop which . . . would be in restraint of trade, unless of approximately 3.3 percentage points, is consid­ . . . the anticompetitive effects . . . are clearly erably less proportionately than in most other unit outweighed in the public interest by the probable banking states. With this extreme concentration, effect of the transaction in meeting the conven­ any proposed acquisition by one of the largest ience and needs of the community to be served.” banking organizations warrants the most critical But in granting or denying approval of a proposed scrutiny. As the Supreme Court stated: acquisition, the Board is required only [also] to . . . if concentration is already great, the importance of “take into consideration the financial and mana­ preventing even slight increases in concentration and so pre­ gerial resources and future prospects of the com­ serving the possibility of eventual deconcentration is corre­ pany or companies and the banks concerned and spondingly great. United States v. Philadelphia National Bank, 374 U.S. 321, 365 fn. 42 (1963). the convenience and needs of the community to be served.” Farmers and Merchants, with deposits of $6.8 Competitive Effect of Proposed Acquisition. million (exclusive of temporary deposits of State Northwest Bancorporation is a bank holding com­ School Funds), is the smallest of three commercial pany located in Minneapolis, Minnesota. It con­ banks in Stillwater, Washington County, Minne­ trols 48 subsidiary banks in Minnesota with ag­ sota. The other banks, Cosmopolitan State Bank gregate deposits of $2.2 billion, and 30 subsidiary and First National Bank, are not subsidiaries of banks in the states of Iowa, Nebraska, South a bank holding company. Cosmopolitan has de­ Dakota, North Dakota, Montana and W isconsin.1 posits of $9.6 million. First National Bank has Fifteen of the subsidiary banks, with deposits of deposits of $32 million. There are seven other $1.5 billion, are located in the Twin Cities Stand­ banks in Washington County with deposits ranging ard Metropolitan Statistical Area.2 from 2.1 million to $8.5 million. Total deposits Commercial banking in Minnesota is highly of all commercial banks in the county amount to concentrated. Northwest controls 24 percent of the $89.6 million. commercial bank deposits in the State, and 28.8 A question posed at the hearing is, what is the per cent of those in the metropolitan area. It and relevant geographic area or relevant market area the First Bank System, Inc., control 52.8 per cent within which the competitive effects of North­ of the commercial bank deposits of the State, and west’s proposal should be measured. Protestants’ over 70 per cent of those in the metropolitan area. evidence was directed to showing that the relevant The State’s remaining four bank holding compa­ market encompasses the seven-county planning nies control only 7 per cent of the State’s com­ area or, at least, the five-county metropolitan sta­ mercial deposits. tistical area. Northwest contends that the relevant area is that which surrounds Stillwater, including 1 These and all subsequent figures are as of December 31, the communities of Oak Park Heights and Bayport. 1970, unless otherwise indicated. The Twin Cities Standard Metropolitan Statisti­ 2 The Twin Cities Standard Metropolitan Statistical Area cal Area is the fifteenth largest metropolitan area consists of Anoka, Dakota, Hennepin (which includes Min­ neapolis), Ramsey (which includes St. Paul) and Washington in the nation. Its population increased from (which includes Stillwater) Counties. 1,482,000 in 1960 to 1,814,000 in 1970. The area Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 201 contains 48 per cent of Minnesota’s entire popula­ is so inherently likely to lessen competition substantially that it must be enjoined in the absence of evidence clearly showing tion. Washington County has a population of that the merger is not likely to have such anticompetitive 83,000 with a 10-year population growth rate of effects. United States v. Philadelphia National Bank, supra, 58.2 per cent. The population of the county is 362. projected to increase at 47.3 per cent during the The evidence in this case indicates that Wash­ next decade. ington County, including Stillwater, is a part of Stillwater, the capital of Washington County, the metropolitan relevant marketing area and will is located on the eastern edge of the metropolitan experience greater integration with future popula­ area, 20 miles from downtown St. Paul. It is on tion growth. Consummation of Northwest’s pro­ the St. Croix River which divides Minnesota and posal will increase its already large share of the Wisconsin. Its population is about 10,200, with area market and is inherently likely to lessen a 10-year growth rate of 22.6 per cent. Stillwater competition. is separated from the populated area of St. Paul There is another competitive aspect that should by a 6 to 8 mile corridor of sparsely populated be considered. The two largest banking organi­ rural land. It is linked to Washington County and zations have preempted many of the good acquisi­ the remaining communities of the metropolitan tions, the major banks that are providing corre­ area by a four-lane highway system, affording spondent services. Banking competition in the quick access to every part of the area. metropolitan area and in the State will be promoted Data from a U. S. Census of Population shows by development of the smaller bank holding com­ that in 1960 (the latest figures available) 53 per panies. Acquisition by Northwest of one of the cent of Washington County’s labor force and 23 available merger-minded banks, particularly one per cent of Stillwater’s worked outside the county. in a key location on the eastern edge of the Sixteen per cent of Stillwater’s labor force works metropolitan area, would reduce the growth possi­ in St. Paul. Washington County is included in the bilities of the smaller bank holding companies. In metropolitan area to coordinate planning and de­ this respect, it would have an anticompetitive velopment by the Metropolitan Council, Metro­ effect and be contrary to the public interest. politan Transit Commission, the Metropolitan Northwest contends that the Stillwater Bank is Sewer Service Board, and the Metropolitan Park so small as to render the matter of banking con­ Board. centration inconsequential. When compared to the As of May 1971, twelve of Northwest’s subsi­ total deposits of Northwest’s subsidiaries, Farmers diaries, located within a 25-mile radius, obtained and Merchants’ deposits are but a minute fraction. $1,353,872 of deposits from 340 customers from But the average deposits of all commercial banks the zip code area in eastern Washington County in Minnesota, not affiliated with the two large that includes Stillwater, or 2.68 per cent of the holding companies, is only $6,878,000 ($5,474,- Stillwater commercial deposits, and as of June 21, 000 excluding those in the metropolitan area). The 1971, two of Northwest’s St. Paul subsidiaries had adoption of Northwest’s de minimis argument 181 loans totaling $946,587 to the zip code area would open the door to the large holding compa­ residents. As of April 30, 1971, Farmers and nies to acquire most of the commercial banks in Merchants obtained $156,086, or 2.55 percent of Minnesota. its deposits from the service areas of Northwest’s As aptly stated by the Court in the Brown Shoe metropolitan area banks and $50,702, or 1.48 Co. case: per cent of its loans (exclusive of purchased loans) We can only eat an apple a bite at a time. The end result from customers in that area. of consumption is the same whether it be done by quarters, The Supreme Court commented on the proof halves, three-quarters, or the whole, and is finally determined required to show the competitive effect of a posed by our own appetites. A nibbler soon can consume the whole with a bite here and a bite there. So, whether we nibble merger: delicately, or gobble ravenously, the end result is, or can be, We noted in Brown Shoe Co., supra. (370 U.S. at 315), that the same. U. S. v. Brown Shoe Co., 179 Fed. Sup. 721, k‘[t]he dominant theme pervading congressional consideration 740 (1959); aff’d, 370 U.S. 294 (1962). of the 1950 amendments [to § 7] was a fear of what was considered to be a rising tide of economic concentration in Financial and Managerial Prospects. The fi­ the American economy.” This intense congressional concern nancial condition, management and future pros­ with the trend toward concentration warrants dispensing, in certain cases, with elaborate proof of market structure, market pects of Northwest and its subsidiaries are satis­ behavior, or probable anticompetitive effects. Specifically, we factory. Farmers and Merchants is sound finan­ think that a merger which produces a firm controlling an undue percentage share of the relevant market, and results in a cially but has failed to achieve a growth equivalent significant increase in the concentration of firms in that market, to its competition. 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202 FEDERAL RESERVE BULLETIN □ MARCH 1973 During the past 25 years the commercial bank alty insurance on property securing such loans. market in Stillwater has increased 350 per cent. Such activities have been determined by the Board Cosmopolitan has increased its share of the market to be closely related to banking or managing and by 395 per cent, and First National by 370 per controlling banks (12 CFR 225.4(a)(1) and (9)). cent, but Farmers and Merchants’ increase has Notice of the application, affording opportunity only been 240 per cent. The anticipated combined for interested persons to submit comments and growth of Stillwater and Washington County indi­ views on the public interest factors, has been duly cates favorable growth and earning prospects for published (37 Federal Register 23294). The time Farmers and Merchants. for filing comments and views has expired, and Convenience and Needs of the Community. As the Board has considered all comments received, to whether the anticompetitive effects of an acqui­ including those of an Alabama insurance agency sition would be clearly outweighed by the probable and a Georgia bank, in the light of the public effects in meeting the convenience and needs of interest factors set forth in section 4(c)(8) of the the community, it should be noted that the evi­ Act (12 U.S.C. 1843(c)(8)). dence does not indicate any presently unsatisfied Applicant controls 21 banks in Virginia with banking need in the Stillwater community. aggregate deposits of $643.4 million, comprising The Northwest does not propose any change in 6.6 per cent of the State’s total commercial bank the officers or directors of Farmers and Merchants. deposits.1 Benson is a consumer and commercial It does propose, in the event of acquisition, that finance company operating 24 offices in Alabama, Farmers and Merchants will aggressively solicit Florida, Louisiana, Georgia, and South Carolina residential estate loans, commit funds under the with total assets of $6.0 million. Each of Appli­ Federal Government Guaranteed Student Loan cant’s subsidiary banks engages in the making of Programs, have a stronger emphasis on consumer small loans to individuals. However, none of those needs, including an insured home improvement banks operate in geographic areas served by Ben­ loan program. Northwest proposes to provide, son. Conversely, Benson does not operate in areas through its mortgage subsidiary, a secondary outlet served by subsidiaries of Applicant. Therefore, it for the sale of Farmers and Merchants mortgages. appears that consummation of the proposal would Summary and Conclusion. On the basis of all not eliminate any existing competition between relevant facts contained in the record and in the Applicant and Benson. No adverse competitive light of the factors set forth in § 3(c) of the Act, effects would appear to result from removal of the proposed transaction would not be in the public Applicant or Benson as a potential competitor of interest. The application should be disapproved. the other because neither is considered a likely D ent D. Dalby, de novo entrant into the other’s markets, and there Administrative Law Judge. are several other potential competitors in the product and geographic markets that both serve. ORDERS UNDER SECTION 4(c)(8) OF During the course of its consideration of this BANK HOLDING COMPANY ACT application, the Board has received, from an Ala­ bama insurance agency and a Georgia bank, ad­ FIRST VIRGINIA BANKSHARES CORPORA­ verse comments on the application. Both question TION, FALLS CHURCH, VIRGINIA the need for the proposed acquisition and suggest that Applicant may resort to the use of “coercive Order Approving Acquisition of tactics aimed at its borrowers” to promote its Benson Investment Corporation insurance sales. However, irrespective of Board First Virginia Bankshares Corporation, Falls action on this application, Benson will engage in Church, Virginia, a bank holding company within the sale of credit-related insurance as it has in the the meaning of the Bank Holding Company Act, past. Applicant has indicated that a borrower from has applied for the Board’s approval, under section Benson is, and will continue to be, free to secure 4(c)(8) of the Act and §225.4(b)(2) of the Board’s insurance coverage from any insurance agent. Regulation Y, to acquire all of the voting shares The Georgia bank further contends that con­ of the successor by merger to Benson Investment summation of the proposed transaction would re­ Corporation, Birmingham, Alabama (“ Benson”), sult in an undue concentration of resources and a company that engages in the activities of a suggests that Applicant may attempt to acquire a finance company and acts as an agent with respect to sales of credit life and disability insurance on borrowers in connection with its loans, and casu­ 1 All banking data are as of June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 203 bank located in Georgia, Alabama, Louisiana, of operations. Such expansion would increase South Carolina, or Florida. However, Benson is competition and public convenience. a relatively small finance company, and its largest Based upon the foregoing and other consid­ market share in any of the markets in which it erations reflected in the record, the Board has competes is less than 10 per cent. That market determined that the balance of the public interest is approximated by the city of Montgomery, Ala­ factors the Board is required to consider under bama, where it is the second largest finance com­ section 4(c)(8) is favorable. Accordingly, the ap­ pany, based on total loans outstanding, competes plication is hereby approved. This determination with other national and Statewide finance compa­ is subject to the conditions set forth in section nies and may not be characterized as dominant. 225.4(c) of Regulation Y and to the Board’s au­ Applicant is the sixth largest bank holding com­ thority to require such modification or termination pany in Virginia. But for a small office in Orlando, of the activities of a holding company or any of Florida,2 Applicant neither operates nor is gener­ its subsidiaries as the Board finds necessary to ally known in the States in which Benson operates. assure compliance with the provisions and pur­ Consummation of the proposed transaction will poses of the Act and the Board’s regulations and not, in the Board’s judgment, result in an undue orders issued thereunder, or to prevent evasion concentration of resources in any section of the thereof. country. The suggestion that Applicant may even­ By order of the Board of Governors, effective tually acquire a bank located outside of Virginia February 13, 1973. is unfounded in that such an acquisition would, Voting for this action: Chairman Burns and Governors in effect, be prohibited, by section 3(d) of the Act.3 Robertson, Mitchell, Brimmer, and Sheehan. Absent and not The Georgia Bank also contends that, upon the voting: Governors Daane and Bucher. affiliation of Benson with Applicant, Benson’s (Signed) Tynan Smith, offices would constitute branch offices of Appli­ [seal] Secretary of the Board. cant’s lead bank in violation of Georgia law. The Board has repeatedly stated that a State’s restric­ tive branch banking laws are not automatically applicable to bank holding company operations, FIRST NATIONAL HOLDING CORP., and the Board, in this case, has found, based upon ATLANTA,GEORGIA the facts of record, that Benson will not be Order Denying Acquisition of Kennesaw operated in such a manner that it and any banking Finance Co. of Canton, Canton, Georgia subsidiary of Applicant could be characterized as being engaged in unitary operations. The Board, First National Holding Corp., Atlanta, Georgia, therefore, concludes that the offices of Benson will a bank holding company within the meaning of not constitute branch offices of any banking subsid­ the Bank Holding Company Act, has applied for iary of Applicant. the Board’s approval under § 4(c)(8) of the Act Finally, it is contended that no public benefits and § 225.4(b)(2) of the Board’s Regulation Y, will flow from consummation of the proposed to acquire through its wholly-owned subsidiary, transaction. The Board disagrees. Applicant’s ad­ Dixie Finance Co., Inc., all of the voting shares vantage over Benson in issuing commercial paper of Kennesaw Finance Co. of Canton, Canton, and longer-term debentures may increase resources Georgia (hereinafter “Company”).1 available to Benson, thereby permitting expansion Notice of the application, affording opportunity of Benson’s loan volume and geographic scope for interested persons to submit comments and views on the public interest factors, has been duly published (37 Federal Register 26060). The time 2 Benson operates its only Florida office in Jacksonville, for filing comments and views has expired, and Florida, where, it is estimated it has a market share of 2.7 per cent and competes with several offices of the nation’s major none have been received. consumer finance companies. The geographic markets of Ap­ The company engages in the activities of mak­ plicant’s and Benson’s Florida offices do not overlap. 3 Section 3(d) provides, in pertinent part: ing, acquiring, or servicing loans or other exten­ ... no application shall be approved under this section which sions of credit for personal, family, or household will permit any bank holding company or any subsidiary thereof to acquire, directly, or indirectly, any voting shares of, interest in, or all or substantially all of the assets of any additional bank located outside the State in which the opera­ 1 The Applicant has also applied for approval to acquire tions of such bank holding company's banking subsidiaries Kennesaw Finance Co. of Villa Rica, Villa Rica, Georgia. were principally conducted on the effective date of this That application is being approved, this date, in a separate amendment [December 31, 1970] .... Order of the Board. 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204 FEDERAL RESERVE BULLETIN □ MARCH 1973 purposes and acting as insurance agent or broker not outweigh possible adverse effects. Accord­ for sale of credit life, accident and health and ingly, the application is hereby denied. property damage insurance in connection with the By order of the Board of Governors, effective extensions of credit. Such activities have been February 20, 1973. determined by the Board to be closely related to Voting for this action: Chairman Burns and Governors the business of banking (12 CFR 225.4(a)( 1),(2) Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. and (9)(ii)(a». (Signed) Tynan Smith, Applicant’s banking subsidiary, First National [seal] Secretary of the Board. Bank of Atlanta (“First National” ), is the third largest bank in the State of Georgia and holds deposits of $870.1 million, representing 9.9 per cent of total State deposits. The general conditions of Applicant and First U. N. BANCSHARES, INC., National are satisfactory; the management of both SPRINGFIELD, MISSOURI institutions is competent. The financial and mana­ gerial conditions of the Company are generally O rder Approving E ntry De Novo in satisfactory. The volume of its loan business and M ortgage Banking related insurance business has increased moder­ U. N. Bancshares, Inc., Springfield, Missouri ately in recent years with operations being profit­ (“ Bancshares” ), a bank holding company within able. The financial backing of the Applicant would the meaning of the Bank Holding Company Act enable the Company to grow more rapidly and of 1956, has proposed under § 4(c)(8) of the Act compete more effectively in its market. and § 225.4(b)(1) of the Board’s Regulation Y These favorable aspects of the proposed acqui­ to engage de novo in the activity of mortgage sitions, however, are not sufficient to overcome banking through a newly-formed subsidiary, Mis­ the substantial adverse competitive effects which souri Mortgage & Investment Co., Springfield, would follow if the application were approved, Missouri. Notice of the proposal, affording oppor­ since Applicant would acquire the second largest tunity for interested persons to express comments consumer finance company in a market, where it and views, was duly published in newspapers of now controls the third largest. The Company has general circulation in Springfield, Missouri, in only one office, in Canton, Cherokee County, accordance with the regulatory provision. The only Georgia. Cherokee County is the relevant market opposition to the proposal was received from and the Company competes there with four other Central Mortgage Company, Inc., Springfield, consumer finance companies and four banks. One Missouri (“Central”), which itself is a registered of the competing finance companies is the Canton bank holding company.1 office of the Applicant’s subsidiary, Dixie Finance The Federal Reserve Bank of St. Louis deter­ Company, whose office is located 3.5 miles from mined that Central’s comments were not of such the Company’s office. At year end 1971 the Com­ nature as to warrant advising Bancshares not to pany had outstanding instalment loans of $300,- consummate the proposal. Central was advised, 000, representing 13.5 per cent of the market and however, that it could seek Board review of this Dixie Finance had outstanding instalment loans of decision in accordance with the provisions of sec­ $275,000, representing 12.4 per cent of the same tion 265.3 of the Board’s Rules Regarding Dele­ market. Consummation of the proposed acquisi­ gation of Authority (12 CFR 265.3). Thereafter, tion would, therefore, have a substantial adverse Central petitioned the Board for such a review. effect on competition; it would increase the market In accordance with the procedures set forth in share of Applicant’s subsidiary from 12.4 to 25.9 section 265.3, review by the Board was authorized per cent; it would remove a direct competitor, an and Bancshares was notified not to consummate alternative source of loans which could be espe­ its proposal. The proposal has now been reviewed cially adverse for those customers unable to secure by the Board and its findings and decision are set bank loans and others who have traditionally dealt forth hereinafter with consumer finance companies. Bancshares controls three banks, including The Based upon the foregoing and other consid­ Union National Bank of Springfield (“Union erations reflected in the record, the Board has determined that the public interest benefits that the 1 Central controls the Citizens Bank of Warrensburg, War- Board is required to consider under § 4(c)(8) do rensburg, Missouri, which has deposits of $14.6 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 205 Bank”), and Springfield National Bank (“ Spring­ competition in the economic sphere. As the Court field Bank”), both located in Springfield, Mis­ explained: souri.2 Union Bank and Springfield Bank hold It is necessary that there be a balancing of the equities combined deposits of approximately $120 mil­ between these two rights, for if the former is carried to its lion,3 representing 36 per cent of the total com­ extreme it will deprive a man of his right to earn a living; mercial deposits of the eight banks located in while conversely, the latter right if unchecked, would probably make a mockery of the fiduciary concept, with its concomitants Springfield. of loyality and fair play. Id. at 39. Central’s opposition to Bancshares’ proposal is Further, a per se violation of section 1 of the based principally on allegations of unfair competi­ Sherman Act has been found where key employees tion and on undue concentration of resources. In were induced to leave their employment to join support of its charge of unfair competition, Central a new corporation that was established to compete claims that Bancshares, through its subsidiary, with their former employer. Atlantic Heel Co. v. Union Bank, hired Central’s key employee in each Allied Heel Co., 284 F.2d 879 (1960). None­ of its major areas of operation— real estate and theless, in Metal Lubricants Co. v. Engineered commercial loans— and was now offering other Lubricant Co., 411 F.2d 426 (1969), the Court officers of Central positions with the new mortgage stated: company. In addition, it is claimed that Banc­ shares acquired confidential information pertaining The mere fact that the defendants decided to leave their to Central through its banking subsidiary’s com­ employ and enter into competition with their employer is not sufficient evidence to establish unfair and inequitable dealings puter services operation, including, among other so as to sustain a claim of unfair competition under the Sherman things, the names of those investors interested in Act. investing money in the Springfield area; the ag­ In the situation before the Board, it is evident gregate dollar amount of each investor’s loans as that, while two employees have moved from Cen­ well as the number of loans that Central services tral to Bancshares’ subsidiary, Union Bank, Cen­ for each of such investors; the service fee rate tral has lost employees to other institutions as well. paid to Central on such loans and the type of loans Furthermore, it appears that Central’s executive which are most profitable. In essence, Central vice-president was unhappy with his employer and claims that Bancshares, by obtaining this informa­ that he would have left his employment whether tion through the banking operations of a subsidiary or not he joined Bancshares.4 Central contends that and by hiring key personnel of Central, is guilty Bancshares induced its employee to leave its em­ of unfair competition which, if permitted, may ployment, but Bancshares’ management contends eventually eliminate Central as a competitive that the employee sought employment with them mortgage banker. Finally, Central’s protest is of his own volition. In any event, the Board does founded on a claim that there is no need for another not view the employment practices involved herein mortgage company in Springfield, and to allow as rising to the level of a contract, combination Bancshares to consummate its proposal will result or conspiracy in restraint of trade. Nevertheless, in an undue concentration of financial resources the Board believes it appropriate and in the public in the Springfield area. interest to condition its approval of Bancshares’ The question as to whether Bancshares has, proposal on the requirement that Bancshares not indeed, engaged in unfair competition turns on conspire with and induce any employee of a com­ whether Bancshares conspired with and induced peting organization to leave the employee’s Central’s employees to terminate their employ­ present employment to join Bancshares’ mortgage ment in order to join its own organization. The banking subsidiary. mere fact that an employee took employment with A second method by which Central claims an actual or potential competitor is not sufficient Bancshares would unfairly compete is through its to justify a finding of unfair competition. As noted access to confidential data of Central which Union by the Missouri Supreme Court in National Re­ Bank obtained in the ordinary course of supplying jectors, Inc., v. Trie man, 409 S.W. 2d 1 (1966), data processing services. At the time Central con­ two conflicting public policies must be considered tracted for these data processing services, Union in each case: One policy seeks to protect the public Bank itself made mortgage loans in the Springfield from unfair competition— the other favors free 2 Applicant’s third bank, Pulaski County Bank, Richland, 4In this connection, it is noted that the employee made Missouri, (deposits of $7.4 million) is located 80 miles distant known his desire to terminate his employment through an and in a separate banking market. undated letter of resignation, giving Central time to find a 3Deposit data are as of June 30, 1972. replacement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN □ MARCH 1973 area and thus was in competition with Central. mortgage loan market. Such entry, in the Board’s Central’s business data pertaining to its mortgage view, is procompetitive as it brings an added servicing operations is confidential and was ac­ element of competition into the Springfield market cepted by Union Bank on this basis. Approval of which would not otherwise exist. Moreover, the present proposal would not remove that confi­ Bancshares’ entry into mortgage banking may dentiality. Notwithstanding, the Board is deeply provide an increased quantity of mortgage funds concerned with any case in which the operation for this area. On balance, the Board concludes that of one or more nonbanking subsidiaries by a bank these public benefits outweigh any possible ad­ holding company may give rise to a possible unfair verse effect on competition. method of competition. Therefore, in view of the Based upon the foregoing and other consid­ potential conflicts of interests situation that might erations reflected in the record, the Board has arise, the Board believes it appropriate and in the determined that the balance of the public interest public interest to condition its approval of Banc- factors the Board is required to consider under shares’ proposal on the requirement that any data section 4(c)(8) is favorable. Accordingly, the pro­ pertaining to Central’s mortgage loans, now in the posal of Bancshares to engage in mortgage bank­ custody of Union Bank, not be made available, ing through a new subsidiary, Missouri Mortgage either directly or indirectly, to any person who & Investment Co., is hereby approved on the could, in any manner, use such information to condition that (1) Bancshares not conspire with compete with Central. and induce any employee of a competing organi­ Finally, Central opposes Bancshares’ entry into zation to terminate his present employment to join mortgage banking on the ground that it will result Missouri Mortgage & Investment Co., and (2) that in an undue concentration of financial resources confidential data pertaining to Central’s mortgage in the Springfield area. As stated above, Banc­ loans, now in the custody of Union Bank, not be shares’ two subsidiary banks in Springfield hold made available, directly or indirectly, to any per­ 36 per cent of the total deposits of the eight son who could, in any manner, use such informa­ Springfield banks. Two of these banking competi­ tion to compete with Central. This determination tors, Commerce Bank of Springfield (deposits is subject to the Board’s authority to require $98.3 million) and Southern Missouri Trust Bank reports by, and make examinations of, holding (deposits $38.7 million), have at their disposal not companies and their subsidiaries and to require only the far greater lending capacity of their parent such modification or termination of the activities organizations5 but also the availability of sub­ of a holding company or any of its subsidiaries sidiary mortgage companies. Other competitors as the Board finds necessary to assure compliance offering real estate financing in Springfield include with the provisions and purposes of the Act and eight mortgage companies and seven savings and the Board’s regulations and orders issued loan associations. As of June 30, 1972, the savings thereunder, or to prevent evasion thereof. and loan associations in Springfield had total re­ By order of the Board of Governors, effective sources of $271 million. The Board concludes that February 21, 1973. Bancshares’ share of commercial bank deposits in Voting for this action: Vice Chairman Robertson and Gov­ the Springfield area does not represent an undue ernors Mitchell, Brimmer, Sheehan, and Bucher. Absent and concentration of financial resources and that its not voting: Chairman Burns and Governor Daane. entry into mortgage banking is not likely to result (Signed) Tynan Smith, in such a concentration. [seal] Secretary of the Board. Congress authorized the Board in § 4(c)(8) of the Bank Holding Company Act to differentiate INDUSTRIAL NATIONAL CORPORATION, between those nonbanking activities commenced PROVIDENCE, RHODE ISLAND de novo and activities commenced by the acquisi­ tion of a going concern. In the instant proposal, Order Approving Acquisition of Southern Bancshares seeks to expand internally through a Discount Company newly-formed mortgage banking subsidiary and Industrial National Corporation, Providence, thus add a new decision-maker in the Springfield Rhode Island, a bank holding company within the meaning of the Bank Holding Company Act, has 5Commerce Bank of Springfield is controlled by Commerce applied for the Board’s approval, under § 4(c)(8) Bancshares, Inc., Kansas City, Missouri, while Southern Mis­ of the Act and § 225.4(b)(2) of the Board’s Regu­ souri Trust Bank is controlled by Mercantile Bancorporation, Inc., St. Louis, Missouri. lation Y to acquire all of the shares of Southern Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 207 Discount Company, Atlanta, Georgia (“ Southern cant’s banking subsidiaries to offices of Southern Discount”), and to indirectly acquire through that Discount is over 500 miles distant. Southern Dis­ acquisition Henson Financial Corporation (“Hen­ count does not have a dominant position in any son Financial”), a Georgia corporation, and Con­ of the various markets in which it engages in sumer Life Insurance Company, Inc. (“Consumer making small loans. Rather, it appears that its Life”), an Arizona corporation. Southern Dis­ market share with only a few exceptions is rather count engaged in the activities of (1) making small in each case and that the acquisition of consumer loans or extensions of credit and pur­ Southern Discount by Applicant can be considered chasing instalment sales finance contracts, and as a “foothold” acquisition in the great majority generally engaging in the business of a consumer of local markets in which it operates. Consumma­ finance company, including the discounting of tion of the proposal would have no significant consumer finance paper and (2) acting as agent adverse effects on existing or potential competi­ for the sale of credit life and accident and health tion. insurance sold to consumer finance borrowers. Southern Discount on its own and through its Henson Financial will confine its activities to act­ wholly-owned subsidiary, Henson Financial, acts ing as agent in the sale of (1) uniform commercial as agent for the sale of credit-related insurance. code nonfiling insurance and (2) property damage However, it does not appear to be a significant insurance for collateral securing loans related to competitor in this product line in any of the areas the consumer finance activities of Southern Dis­ it operates, nor does Applicant have any subsidiary count. Consumer Life engages in underwriting operating as an agent for credit-related insurance. credit life and accident and health insurance di­ For these reasons it does not appear that acquisi­ rectly related to extensions of credit by Southern tion of Southern Discount and Henson Financial Discount. Such activities have been determined by by Applicant would have significantly adverse the Board to be closely related to the business of effects on either existing or potential competition. banking (12 CFR 225.4(a)(1), (9) and (10)). Consumer Life engages in the activity of un­ Notice of the application, affording opportunity derwriting credit life insurance and credit accident for interested persons to submit comments and and health insurance which is directly related to views on the public interest factors has been duly extensions of credit by Southern Discount. Con­ published (37 Federal Register 16834). The time sumer Life is a qualified underwriter in Florida, for filing comments and views has expired and Georgia, North Carolina, South Carolina and none have been timely received. Tennessee. It had total assets as of June 30, 1971 Applicant, the parent holding company of In­ of $12.5 million, and for the fiscal year ending dustrial National Bank of Rhode Island, has con­ that date had premium income of approximately solidated assets of $1.2 billion. Bank’s total de­ $1.4 million. Affiliation of Consumer Life with posits of about $943 million make Applicant the Applicant would have no significantly adverse largest banking organization in Rhode Island, with effect on either existing or potential competition over 50 per cent of the commercial bank deposits as Consumer Life does not appear to be a signifi­ in the State.1 Applicant also has nonbanking sub­ cant factor in its product line in any of the areas sidiaries engaged principally in mortgage banking, it operates, nor does Applicant presently engage factoring, personal property leasing, data process­ in such activity. ing, and investment advisory services, but has no In adding credit life underwriting to the list of present consumer finance subsidiaries. permissible activities for bank holding companies, Southern Discount has total consolidated assets the Board stated that, “To assume that engaging of $35.5 million and is the 69th largest inde­ in the underwriting of credit life and credit acci­ pendent finance company in the United States as dent and health insurance can reasonably be ex­ of year-end 1971. It presently operates 67 small pected to be in the public interest, the Board will loan offices in the five southeastern States of only approve applications in which an applicant Georgia, Florida, North Carolina, South Carolina, demonstrates that approval will benefit the con­ and Tennessee. Nearly 85 per cent of Southern sumer or result in other public benefits. Normally Discount’s total volume of business in fiscal 1971 such a showing would be made by a projected (ending June 30, 1971) was derived from its con­ reduction in rates or increase in policy benefits sumer loan business. The closest office of Appli­ due to bank holding company performance of this service.” Applicant has committed itself to within 1 All banking data are as of December 31, 1971. 90 days reduce the rates charged by Consumer Life Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDERAL RESERVE BULLETIN □ MARCH 1973 to its policyholders by 5 per cent on all credit has expired and all received have been considered, accident and health insurance written by it in all including those presented orally and in writing in States in which it offers such policies. Further­ connection with a Board hearing on March 24, more, the rates charged by Consumer Life on its 1972, pertaining to the underwriting of credit life credit life insurance policies will be reduced by and accident and health insurance in general, and Applicant by amounts varying from approximately this application in particular. 7 per cent to 20 per cent in the various States. Effective December 11, 1972, the Board Additionally, Applicant will make an ongoing amended § 225.4 of Regulation Y to add the effort to determine if further benefits can be offered activity of “acting as underwriter for credit life to the consumer. It is the Board’s judgment that insurance and credit accident and health insurance these benefits to the public outweigh any possible which is directly related to extensions of credit adverse effects. by the bank holding company system” to the list Based upon the foregoing and other consid­ of activities the Board has determined to be closely erations reflected in the record, the Board has related to banking. determined that the balance of the public interest Applicant owns 100 per cent (less directors’ factors the Board is required to consider under qualifying shares) of Fourth National Bank and §4(c)(8) is favorable. Accordingly, the application Trust Co., Wichita, Kansas (“ Bank”), the largest is hereby approved. This determination is subject bank in the Wichita market with total deposits of to the conditions set forth in § 225.4(c) of Regu­ $279.3 million representing 31.6 per cent of mar­ lation Y and to the Board’s authority to require ket deposits. Bank also ranks as the largest bank such modification or termination of the activities in Kansas with 4.9 per cent of the State’s com­ of a holding company or any of its subsidiaries mercial bank deposits. (All banking data are as as the Board finds necessary to assure compliance of June 30, 1972, unless otherwise noted.) with the provisions and purposes of the Act and Company, an Arizona Corporation, is a limited the Board’s regulations and orders issued capital stock life insurance company which first thereunder, or to prevent evasion thereof. began business in September, 1970. Company acts By order of the Board of Governors, effective as reinsurer of credit life and disability insurance February 22, 1973. policies made available by Bank in connection with its extensions of credit. Credit life and dis­ Voting for this action: Vice Chairman Robertson and Gov­ ability insurance is generally made available by ernors Mitchell, Brimmer, Sheehan and Bucher. Absent and not voting: Chairman Burns and Governor Daane. banks and other lenders and such insurance is (Signed) Tynan Smith, designed to assure repayment of a loan in the event [seal] Secretary of the Board. of death or disability of the borrower. Prior to Company’s organization, Bank sold FOURTH FINANCIAL CORPORATION, credit life and disability insurance policies in con­ nection with its extensions of credit and received WICHITA, KANSAS a commission from the insurer on the sale of each Order Approving Retention of Fourth Fi­ policy. After Company was organized, Bank con­ nancial Insurance Company tinued to sell such policies, but no longer received commission income. Rather, the insurer “ ceded” Fourth Financial Corporation, Wichita, Kansas, or “assigned” such policies to Company with a bank holding company within the meaning of certain larger policies “retroceded” or “reas­ the Bank Holding Company Act, has applied for signed” in part back to the insurer so as to avoid the Board’s approval, under § 4(c)(8) of the Act Company being exposed to liabilities in excess of and § 225.4(b) (2) of the Board’s Regulation Y, those permitted by Arizona law.1 As of December to retain the voting shares of Fourth Financial 31, 1971, Company had total assets of $143 thou­ Insurance Company, Phoenix, Arizona (“Com­ sand and for the year ending that same date, pany” ), a company that engages in the underwrit­ Company received gross premiums of $130 thou­ ing, as reinsurer, of credit life and disability in­ sand. During 1971 the total amount of insurance surance in connection with extensions of credit by risk retroceded was approximately $4 thousand. Applicant’s subsidiary bank. Notice of the application, affording opportunity for interested persons to submit comments and xThe maximum amounts which may be insured by a limited views, was duly published (37 Federal Register capital stock life insurance company under Arizona law are 2542). The time for filing comments and views $3,000 on any one life and $5,000 on any total disability claim. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 209 Because of Company’s growth, Applicant now handling, will result from approval of its applica­ proposes that it become a fully-qualified under­ tion. The Board believes that the reduced cost of writer authorized to write insurance in Kansas. such insurance coverage is procompetitive and in Approval of Applicant’s proposed retention does the public interest. The Board concludes that such not appear to eliminate any competition in the benefits outweigh any possible adverse effects of underwriting of credit life and disability insurance. approval of the application. In connection with its addition of credit life Based upon the foregoing and other consid­ underwriting to the list of permissible activities erations reflected in the record, the Board has for bank holding companies, the Board stated that determined that the balance of the public interest factors the Board is required to consider under § To assure that engaging in the underwriting of credit life and 4(c)(8) is favorable. Accordingly, the application credit accident and health insurance can reasonably be expected to be in the public interest, the Board will only approve is hereby approved. This determination is subject applications in which an applicant demonstrates that approval to the conditions set forth in § 225.4(c) of Regu­ will benefit the consumer or result in other public benefits. Normally such a showing would be made by a projected lation Y and to the Board’s authority to require reduction in rates or increase in policy benefits due to bank such modification or termination of the activities holding company performance of this service. of a holding company or any of its subsidiaries In the subject application, Applicant has stated as the Board finds necessary to assure compliance that Company and the direct insurer which issues with the provisions and purposes of the Act and the credit life and disability policies made avail­ the Board’s regulations and orders issued able by Bank will reduce the rates charged for thereunder, or to prevent evasion thereof. credit life and disability insurance by 15 per cent. By order of the Board of Governors, effective Such rate reduction is expected to go into effect February 22, 1973. within 30 days of the approval of the application Voting for this action: Vice Chairman Robertson and Gov­ and Applicant states that such rates would be 15 ernors Mitchell, Brimmer, Sheehan and Bucher. Absent and not voting: Chairman Burns and Governor Daane. per cent below the prevailing rates in the Wichita area. In addition, Applicant claims other less (Signed) Tynan Smith, demonstrable benefits, such as improved claims [seal] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During February 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation First National Company of Mis­ The National Bank of 2/20/73 38 F.R. 5512 souri Valley, Inc., Missouri Missouri, Missouri Valley, 3/1/73 Valley, Missouri Missouri Manufacturers National Corpora­ Manufacturers National Bank of 2/8/73 38 F.R. 4532 tion, Detroit, Michigan Detroit, Detroit, Michigan 2/15/73 Oakland Banshares, Inc., Oakland Savings Bank, 2/12/73 38 F.R. 4818 Oakland, Iowa Oakland, Iowa 2/22/73 Peninsular Holding Corporation Union Bank and Trust Company 2/6/73 38 F.R. 4363 of Michigan, Grand Rapids, (National Association), Grand 2/13/73 Michigan Rapids, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN □ MARCH 1973 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal (effective Register Applicant Banks(s) date) citation First National Holding Corp. Kennesaw Finance Co. of Villa 2/20/73 38 F.R. 5284 Atlanta, Georgia Rica, Villa Rica, Georgia 2/27/73 Woods-Tucker Leasing Corpo­ 2/27/73 38 F.R. 635 ration, Hattiesburg, Missis­ 3/7/73 sippi Oakland Banshares, Inc., Spencer Insurance Agency, 2/12/73 38 F.R. 4818 Oakland, Iowa Oakland, Iowa 2/22/73 Wyoming Bancorporation, Greeley Finance Company of 2/8/73 38 F.R. 4541 Cheyenne, Wyoming Colorado, Greeley, Colorado 2/15/73 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation First National State Bancorpora­ Somerset Hills & County Na­ 2/27/73 38 F.R. 6236 tion, Newark, New Jersey tional Bank, Basking Ridge, 3/7/73 New Jersey First Union, Incorporated, Citizens Bank of Pacific, 2/12/73 38 F.R. 4734 St. Louis, Missouri Pacific, Missouri 2/21/73 The First National Bank of 2/22/73 38 F.R. 5513 Independence, Independence, 3/1/73 Missouri Florida National Banks of Florida, Bank of Commerce of Florida, 2/12/73 38 F.R. 4817 Inc., Jacksonville, Florida Fort Lauderdale, Florida 2/22/73 Indian Head Banks Inc., The Lakeport National Bank of 2/1/73 38 F.R. 3627 Nashua, New Hampshire Laconia, Laconia (P.O. Lake­ port), New Hampshire National Bancshares Corporation of The First National Bank of 2/27/73 38 F.R. 6236 Texas, San Antonio, Texas Eagle Pass, Eagle Pass, Texas 3/7/73 Wyoming Bancorporation, First State Bank, 2/08/73 38 F.R. 4546 Cheyenne, Wyoming Cody, Wyoming 2/15/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 211 BOARD REVIEW UNDER THE GRANDFATHER PRO­ Board indicate that the Trust does not constitute VISO IN SECTION 4(a)(2) OF THE BANK HOLDING a “company” as defined in § 2(b) of the Bank COMPANY ACT Holding Company Act. The evidence before the Board shows that the Trust does not participate FIRST NATIONAL BANK VOTING TRUST, in the management or policies of First National HOLLYWOOD, FLORIDA Bank of Hollywood (apart from voting for the election of directors) and is a 10-year voting trust “Grandfather” Privileges that, by its terms, will terminate on or before May Under Bank Holding Company Act 19, 1974. Accordingly, as presently organized and administered, the First National Bank Voting Trust Section 4 of the Bank Holding Company Act does not constitute a “bank holding company” (12 U.S.C. 1843) provides certain privileges under the Act and the question of the termination (“grandfather” privileges) with respect to non­ banking activities of a company that, by virtue of grandfather privileges of First National Bank Voting Trust is moot. of the 1970 Amendments to the Bank Holding This conclusion is based upon facts presented Company Act, became subject to the Bank Hold­ to the Board, and any material change in those ing Company Act. Pursuant to § 4(a)(2) of the facts may result in a different conclusion. Act, a “company covered in 1970” may continue Board of Governors, December 29, 1972. to engage, either directly or through a subsidiary, in nonbanking activities that such a company was (Signed) Tynan Smith, lawfully engaged in on June 30, 1968 (or on a [seal] Secretary of the Board. date subsequent to June 30, 1968, in the case of activities carried on as a result of the acquisition ALASKA BANCSHARES, INC., by such company or subsidiary, pursuant to a ANCHORAGE, ALASKA binding written contract entered into on or before Determination Regarding “Grandfather” June 30, 1968, of another company engaged in Privileges Under Bank Holding such activities at the time of the acquisition), and Company Act has been continuously engaged in since June 30, 1968 (or such subsequent date). Section 4 of the Bank Holding Company Act Section 4(a)(2) of the Act provides, inter alia, (12 U.S.C. 1843) provides certain privileges that the Board of Governors of the Federal Reserve (“grandfather” privileges) with respect to non­ System may terminate such grandfather privileges banking activities of a company that, by virtue if, having due regard to the purposes of the Act, of the 1970 Amendments to the Bank Holding the Board determines that such action is necessary Company Act, became subject to the Bank Hold­ to prevent undue concentration of resources, de­ ing Company Act. Pursuant to § 4(a)(2) of the creased or unfair competition, conflicts of inter­ Act, a “company covered in 1970” may continue ests, or unsound banking practices. With respect to engage, either directly or through a subsidiary, to a company that controls a bank with assets in in nonbanking activities that such company was excess of $60 million on or after December 31, lawfully engaged in on June 30, 1968 (or on a 1970, the Board is required to make such a deter­ date subsequent to June 30, 1968, in the case of mination within a two-year period. activities carried on as a result of the acquisition Notice of the Board’s proposed review of any by such company or subsidiary, pursuant to a grandfather privileges of the First National Bank binding written contract entered into on or before Voting Trust, Hollywood, Florida, and an oppor­ June 30, 1968, of another company engaged in tunity for interested persons to submit comments such activities at the time of the acquisition), and and views or request a hearing, has been given has been continuously engaged in since June 30, (37 F.R. 22414). The time for filing comments, 1968 (or such subsequent date). views, and requests has expired, and all those Section 4(a)(2) of the Act provides, inter alia, received have been considered by the Board in that the Board of Governors of the Federal Reserve light of the factors set forth in § 4(a)(2) of the System may terminate such grandfather privileges Act. if, having due regard to the purposes of the Act, In connection with the Board’s review of the the Board determines that such action is necessary operations of First National Bank Voting Trust to prevent undue concentration of resources, de­ (“Trust”), relating to a possible termination of creased or unfair competition, conflicts of inter­ grandfather privileges, the facts presented to the ests, or unsound banking practices. With respect Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDERAL RESERVE BULLETIN □ MARCH 1973 to a company that controls a bank with assets of to the North Slope activity and, in view of the $60 million on or after December 31, 1970, the aforesaid adverse aspects of Bank’s and Regis­ Board is required to make such a determination trant’s relationships with North Slope, Registrant within a two-year period. is urged to take steps to terminate its affiliation Notice of the Board’s proposed review of the with North Slope at the earliest practicable time. grandfather privileges of Alaska Bancshares, Inc., Registrant engages directly in real estate devel­ Anchorage, Alaska, and an opportunity for inter­ opment, insurance agency activities, mortgage fi­ ested persons to submit comments and views or nancing, and acts as investment adviser and man­ request a hearing, has been given (37 F.R. 22414). agement consultant to Bank. On the basis of the The time for filing comments, views, and requests facts presented, these activities were commenced has expired, and all those received have been before June 30, 1968 and have been conducted considered by the Board in light of the factors set continuously since that date. Registrant’s invest­ forth in § 4(a)(2) of the Act. ment adviser and management consultant and ad­ On the evidence before it, the Board makes the viser services appear to be limited exclusively to following findings. Alaska Bancshares, Inc.,1 An­ Bank; on this basis, these activities appear to be chorage, Alaska (“Registrant”), became a bank exempt, under § 4(c)(1)(C), from the general pro­ holding company on December 31, 1970, as a hibitions of § 4 of the Act. Through Bank’s 100 result of the 1970 Amendments to the Act, by per cent owned subsidiary (Alaska State Bank virtue of Registrant’s ownership of approximately Building Corporation, Anchorage, Alaska), Re­ 50 per cent of the voting shares of Alaska State gistrant owns real property used principally by Bank, Anchorage, Alaska (“ Bank”) (assets of $66 Bank, an activity that appears to be exempt under million as of December 31, 1970). Bank, which § 4(c)(1)(A) of the Act. became a subsidiary of Registrant in 1962, had Registrant’s nonbanking activities, for which total deposits of approximately $62 million as of grandfather privileges seem applicable, appear to December 31, 1971, representing about 9l/z per be limited in scope and not to affect significantly cent of the total deposits in the State and giving the market position of Bank. The real estate de­ Bank a rank of third in the State. Bank’s offices velopment activities consist of holding property in in Anchorage and Fairbanks rank fourth and third, two subdivisions near Anchorage with a book respectively, of five banks in each of these cities. value of $48,000. The insurance agency and Bank is not regarded as one of the dominant mortgage financing activities apparently produced financial institutions in the State but is a significant gross income of $16,000 and $2,800, respectively, competitor. While Bank’s present financial condi­ during the first half of 1972. These grandfathered tion appears to be satisfactory, the evidence of activities of Registrant do not now evidence an record in this case points to areas of legitimate undue concentration of resources nor decreased or concern involving practices of Registrant’s man­ unfair competition. On the other hand, the Board agement that have potential for impairing Bank’s is concerned about Registrant’s management, financial condition. Exemplifying one action of about the unhealthy debt position of Registrant and management that is of concern to the Board is the its parent organization, and about the burdensome relationship that exists between Bank as a subsi­ aspect of Registrant’s interest commitments, par­ diary of Alaska Bancorporation (parent of Regis­ ticularly in the light of Registrant’s reported annual trant) and North Slope Oil Company, Inc., also cash income (as reported for calendar years 1970 a subsidiary of Alaska Bancorporation, a relation­ and 1971), which appears to be short for servicing ship that might lead to financial difficulties for the Registrant’s debt. Because the nonbank grandfa­ Bank through the use of Bank’s resources to fur­ thered activities apparently have not affected the ther the interests of the North Slope venture. Bank in any significant adverse respect; and since Registrant has no grandfather benefits with respect 38 per cent of Registrant’s income derives from said nonbanking activities, so that measures look­ ing to a curtailment of Registrant’s nonbanking Alaska Bancorporation, Anchorage, Alaska, which owns over 65 per cent of the voting shares of Alaska Bancshares, grandfathered actitivies might have an adverse became a bank holding company by virtue of the 1970 effect on Bank and might tend to weaken Regis­ Amendments to the Bank Holding Company Act. However, trant’s financial structure, the Board has concluded Alaska Bancorporation was incorporated on July 16, 1969 and acquired its interest in Alaska Bancshares on August 5, 1969. that, at this time, Registrant should not be required Alaska Bancorporation acquired 100 per cent of the voting to relinquish its grandfather privileges. However, shares of Alaska North Slope Oil Company, Inc., Anchorage, Alaska, on July 18, 1969. Alaska Bancorporation neither Registrant’s real estate activities are limited to the claims nor is entitled to grandfather benefits. two subdivisions now owned. Also, Registrant is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 213 urged to take immediate and effective steps to By determination of the Board of Governors, improve its financial condition and its management effective December 29, 1972. and to avoid any pressure on the Bank to pay out Voting for this action: Chairman Burns and Governors excessive dividends or engage in any other un­ Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Bucher. sound banking practice. And Applicant is alerted (Signed) Tynan Smith, to the intent of the Board to require termination of grandfather benefits if it determines that such [seal] Secretary of the Board. action is necessary to prevent unsound banking practices (or any of the other evils described in the Act). ZIONS UTAH BANCORPORATION, It is the Board’s judgment that, at this time, SALT LAKE CITY, UTAH termination of the grandfather privileges of Regis­ Determination Regarding “Grandfather” trant is not necessary in order to prevent an undue Privileges concentration of resources, decreased or unfair Under Bank Holding Company Act competition, conflicts of interest, or unsound banking practices. However, this determination is Section 4 of the Bank Holding Company Act not authority to enter into any activity that was (12 U.S.C. 1843) provides certain privileges not engaged in on June 30, 1968 and continuously (“grandfather” privileges) with respect to non­ thereafter, or any activity that is not the subject banking activities of a company that, by virtue of this determination. of the 1970 Amendments to the Bank Holding A significant alteration in the nature or extension Company Act, became subject to the Bank Hold­ of Registrant’s activities or a change in location ing Company Act. Pursuant § 4(a)(2) of the Act, thereof (significantly different from any described a “company covered in 1970” may continue to in this determination) will be cause for a re-evalu- engage, either directly or through a subsidiary, in ation by the Board of Registrant’s activities under nonbanking activities that such a company was the provisions of § 4(a)(2) of the Act, that is, lawfully engaged in on June 30, 1968 (or on a whenever the alteration or change is such that the date subsequent to June 30, 1968, in the case of Board finds that a termination of the grandfather activities carried on as a result of the acquisition privileges is necessary to prevent an undue con­ by such company or subsidiary, pursuant to a centration of resources or any of the other evils binding written contract entered into on or before designated in the Act. No merger, consolidation, June 30, 1968 of another company engaged in such acquisition of assets other than in the ordinary activities at the time of the acquisition), and has course of business, nor acquisition of any interest been continuously engaged in since June 30, 1968 in a going concern, to which the Registrant or any (or such subsequent date). nonbank subsidiary thereof is a party, may be Section 4(a)(2) of the Act provides, inter alia, consummated without prior approval of the Board. that the Board of Governors of the Federal Reserve Further, the provision of any credit, property, or System may terminate such grandfather privileges service by the Registrant or any subsidiary thereof if, having due regard to the purposes of the Act, shall not be subject to any condition which, if the Board determines that such action is necessary imposed by a bank, would constitute an unlawful to prevent undue concentration of resources, de­ tie-in arrangement under § 106 of the Bank Hold­ creased or unfair competition, conflicts of interest, ing Company Act Amendments of 1970. or unsound banking practices. With respect to a The determination herein does not preclude a company that controls a bank with assets in excess later review, by the Board, of Registrant’s non­ of $60 million on or after December 31, 1970, bank activities and a future determination by the the Board is required to make such a determination Board in favor of termination of grandfather bene­ within a two-year period. fits of Registrant. The determination herein is Notice of the Board’s proposed review of the subject to the Board’s authority to require modifi­ grandfather privileges of the Zions Utah Bancor­ cation or termination of the activities of Registrant poration, Salt Lake City, Utah, and an opportunity or any of its nonbanking subsidiaries as the Board for interested persons to submit comments and finds necessary to assure compliance with the views or request a hearing, has been given (37 provisions and purposes of the Act and the Board’s F.R. 22414 and 25204). The time for filling com­ regulations and orders issued thereunder, or to ments, views, and requests has expired, and all prevent evasions thereof. those received have been considered by the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN □ MARCH 1973 in light of the factors set forth in § 4(a)(2) of the Bank, Arvada (acquired in December 1971); and Act. First Industrial Bank, Longmont (acquired in De­ On the evidence before it, the Board makes the cember 1971).2 The two finance company subsi­ following findings. Zions Utah Bancorporation, diaries located in Utah (combined assets of about Salt Lake City, Utah (“Registrant” ), became a $21 million in 1970) compete with over 150 lend­ bank holding company on December 31, 1970, ing offices of other small loan companies operating as a result of the 1970 Amendments to the Act, in Utah, including offices of two large national by virtue of Registrant’s ownership of approxi­ corporations engaged in consumer finance, and do mately 52 per cent of the outstanding voting shares not apear to be large enough to affect the position of Zions First National Bank, Salt Lake City, Utah of Bank in the Utah markets served by it. The (“ Bank”) (assets of $325.9 million as of De­ two finance company subsidiaries located in Col­ cember 31, 1970). Bank control of which was orado, which are eligible for grandfather benefits, acquired by Registrant in April I960,1 had total had combined assets of less than $6 million in deposits of $339.2 million (as of December 31, 1970, and are not regarded as significant competi­ 1971), representing about 16 per cent of the total tors in the markets served by Registrant’s banking deposits in commercial banks in Utah. On the basis subsidiary. of its share of deposits, Bank ranks third of thirteen Through the Lockhart companies, Registrant banks in the Salt Lake County market, with about also engages in the equipment leasing business. 21 per cent of the deposits therein, and fourth of The Lockhart Company conducts such activities five banks in the Provo banking market, with about directly, and the Lockhart Finance Company en­ 14 per cent of deposits therein. While Bank is a gages in such activities through a wholly-owned significant competitor among the State’s banking subsidiary formed in 1966, Zions Leasing Com­ organizations, it does not appear to be dominant. pany, Salt Lake City, Utah (assets of about $3 Bank’s management financial condition ard pros­ million as of December 1970). In addition, Regis­ pects are regarded as satisfactory, and the Board trant operates real estate business (Lockhart Realty has found no evidence of unsound banking prac­ Company, Salt Lake City, Utah), which was ac­ tices. quired in January 1966, and now limits its activi­ Registrant (consolidated assets of about $342 ties to collecting payments on contracts of sale million in 1970) engages directly in insurance of real estate previously made. The equipment agency activities and real estate business, and leasing activities and the current real estate opera­ apparently has engaged in such activities continu­ tions of Lockhart Realty appear eligible for grand­ ously since before June 30, 1968. Registrant’s father benefits, and the nature and scope of such insurance agency activities consist of writing credit activities are such that curtailment or divestiture life insurance almost entirely for loans made by of such activities is not required. Registrant’s subsidiaries and casualty insurance for Registrant also owns an electrical supplies dis­ property pledged as collateral against such loans. tributing business and a company engaged in the Registrant’s principal real estate activity is the sale of money orders. These businesses were not development of an industrial park in a 170 acre acquired by Registrant prior to June 30, 1968, and area acquired in 1955 in Salt Lake City. Registrant are not eligible for grandfather benefits. engages in the consumer finance business in Utah On the basis of the foregoing and all the facts and has been engaged therein continuously since before the Board, it appears that the volume, before June 30, 1968, through The Lockhart scope, and nature of the activities of Registrant Company, Salt Lake City, and Lockhart Finance and its subsidiaries do not demonstrate an undue Company, Salt Lake City (both acquired in Jan­ concentration of resources, decreased or unfair uary 1966), and in Colorado through the following competition, conflicts of interest nor unsound nonbanking subsidiaries: Rocky Mountain Indus­ banking practices. trial Bank, Colorado Springs (acquired in January There appears to be no reason to require Regis­ 1966); Littleton First Industrial Bank, Littleton trant to terminate its grandfathered interests. It is (acquired in May 1968); Fort Collins First Indus­ the Board’s judgment that, at this time, termina­ trial Bank, Fort Collins (acquired in October 1971); Guaranty Industrial Bank, Loveland (ac­ 2 Registrant received approval of the Reserve Bank of San quired in November 1971); Arvada First Industrial Francisco pursuant to delegated authority to acquire three finance companies during 1971, under the provisions of Registrant acquired all of the remaining shares of Bank in § 4(c)(8) of the Act and § 225.4(b)(1) of the Board’s April 1972. Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 215 tion of the grandfather privileges of Registrant is CONTRACT LEASING CORPORATION, not necessary in order to prevent undue concen­ CLAYTON BANKSHARES CORPORATION, tration of resources, decreased or unfair competi­ ST. LOUIS, MISSOURI tion, conflicts of interests, or unsound banking practices. However, this determination is not au­ Determination Regarding “Grandfather” thority to enter into any activity that was not Privileges Under Bank Holding Company engaged in on June 30, 1968 and continuously Act thereafter, or any activity that is not subject to this determination. Nor is this determination au­ Section 4 of the Bank Holding Company Act thority for Registrant to acquire any additional real (12 U.S.C. 1843) provides certain privileges property or additional types of insurance agency (“grandfather” privileges) with respect to non­ activity. banking activities of a company that, by virtue A significant alteration of the nature or extension of the 1970 Amendments to the Bank Holding of Registrant’s activities or a change in location Company Act, became subject to the Bank Hold­ thereof (significantly different from any described ing Act. Pursuant to § 4(a)(2) of the Act, a in this determination) will be cause for a re-evalu­ “company covered in 1970” may continue to ation by the Board of Registrant’s activities under engage, either directly or through a subsidiary, in the provisions of § 4(a)(2) of the Act, that is, nonbanking activities that such company was law­ whenever the alteration or change is such that the fully engaged in on June 30, 1968 (or on a date Board finds that a termination of the grandfather subsequent to June 30, 1968, in the case of activi­ privileges is necessary to prevent an undue con­ ties carried on as a result of the acquisition of centration of resources or any of the other evils such company or subsidiary, pursuant to a binding designated in the Act. No merger, consolidation, written contract entered into on or before June 30, acquisition of assets other than in the ordinary 1968, of another company engaged in such activi­ course of business, nor acquisition of any interest ties at the time of the acquisition), and has been in a going concern, to which the Registrant or any continuously engaged in since June 30, 1968 (or nonbank subsidiary thereof is a party, may be such subsequent date). consummated without prior approval of the Board. Section 4(a)(2) of the Act provides, inter alia, Further, the provision of any credit, property, or that the Board of Governors of the Federal Reserve service by the Registrant or any subsidiary thereof System may terminate such grandfather privileges shall not be subject to any condition which, if if, having due regard to the purposes of the Act, imposed by a bank, would constitute an unlawful the Board determines that such action is necessary tie-in arrangement under § 106 of the Bank Hold­ to prevent undue concentration of resources, de­ ing Company Act Amendments of 1970. creased or unfair competition, conflicts of interest, The determination herein does not preclude a or unsound banking practices. With respect to a later review by the Board, of Registrant’s nonbank company that controls a bank with assets in excess activities and a future determination by the Board of $60 million on or after December 31, 1970, in favor of termination of grandfather benefits of the Board is required to make such a determination Registrant. The determination herein is subject to within a two-year period. the Board’s authority to require modification or Notice of the Board’s proposed review of the termination of the activities of Registrant. The grandfather privileges of Contract Leasing Cor­ determination herein is subject to the Board’s poration, St. Louis, Missouri, and of Clayton authority to require modification or termination of Bankshares Corporation, St. Louis, Missouri, and the activities of Registrant or any of its nonbanking an opportunity for interested persons to submit subsidiaries as the Board finds necessary to assure comments and views or request a hearing, has been compliance with the provisions and purposes of given (37 F.R. 22414). The time for filing com­ the Act and the Board’s regulations and orders ments, views, and requests has expired, and all issued thereunder, or to prevent evasions thereof. those received have been considered by the Board By determination of the Board of Governors, in light of the factors set forth in § 4(a)(2) of the effective January 4, 1973 Act. Voting for this action: Chairman Burns and Governors On the evidence before it, the Board makes the Robertson, Mitchell, Daane, Brimmer, and Bucher. Absent following findings. Contract Leasing Corporation, and not voting: Governor Sheehan. St. Louis, Missouri (“Contract Leasing” ), owns (Signed) Tynan Smith, approximately 34 per cent of Clayton Bankshares [seal] Secretary of the Board. Corporation, St. Louis, Missouri (“Clayton” ), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN □ MARCH 1973 and has owned such shares continuously since Bank and two affiliated banks. Although Databank before June 30, 1968. Each of these companies Corporation was acquired after June 30, 1968, and became a bank holding company on December 31, thus is not eligible for grandfather benefits, Regis­ 1970, as a result of the 1970 Amendments to the trants’ retention of their indirect interest in this Act, by virtue of Clayton’s ownership of approxi­ subsidiary of Bank appears to be permissible under mately 95 per cent of the outstanding voting shares § 4(c)(5) of the Act. of Clayton Bank, Clayton, Missouri (“ Bank”) In view of the size of the assets held by Contract (assets of $62 million as of December 31, 1970). Leasing and Clayton ($.8 million and $3.6 million, Bank, control of which was acquired by Clayton respectively, as of December 31, 1970), it appears in 1958, had total deposits of approximately $84 that continuation of their nonbanking activities million as of December 31, 1971, representing 5.0 would not result in an undue concentration of per cent of the total deposits in the 45 commercial resources; and, in view of the facts herein, partic­ banks in St. Louis County and 1.4 per cent of ularly the fact that Registrants perform services the total deposits in the St. Louis market, and was only for Bank and affiliated banks and corpora­ the nineteenth largest bank in the State. Bank’s tions, it appears that continuation of the aforesaid management, financial condition, and prospects nonbanking and banking activities of Registrants are regarded as satisfactory, and the Board has would not result in decreased or unfair competi­ found no evidence of any unsound banking prac­ tion, conflicts of interest or unsound banking tices. practices. Contract Leasing1 reports that it does not engage On the basis of the foregoing and all the facts directly in any activities except for its ownership before the Board, it appears that the volume, of shares of Clayton. scope, and nature of the activities of Registrants Clayton owns the real property on which Bank and their subsidiaries do not demonstrate an undue and its drive-in facility are located.2 In addition, concentration of resources, decreased or unfair Clayton engages directly in the following activi­ competition, conflicts of interest nor unsound ties: conducting audits of affiliated banks and banking practices. preparing reports to the respective boards of There appears to be no reason to require Regis­ directors of those banks; providing and supervising trants to terminate their grandfathered interests. It messenger and delivery service between affiliated is the Board’s judgment that, at this time, termi­ banks and affiliated corporations; supervising new nation of the grandfather privileges of Registrants business development, instalment loan, and bank is not necessary in order to prevent an undue operations of affiliated banks; and supervising au­ concentration of resources, decreased or unfair tomation operations of the affiliated banks. It ap­ competition, conflicts of interest, or unsound pears that all of the above activities have been banking practices. However, this determination is engaged in continuously since June 30, 1968, and not authority to enter into any activity that was are eligible for retention by virtue of the grandfa­ not engaged in on June 30, 1968 and continuously ther privileges of Contract Leasing and Clayton thereafter, or any activity that is not the subject (“Registrants”). to this determination, nor is this determination Through its banking subsidiary, Clayton has a authority for Registrants to provide services for one-third interest in one nonbanking subsidiary, banks in addition to those Registrants have been Databank Corporation, St. Louis, Missouri, a serving since before June 30, 1968. company providing data processing services to A significant alteration in the nature or extension of Registrants’ activities or a change in location thereof (significantly different from any described in this determination) will be cause for a re-evalu­ JOn the facts before the Board to the effect that a Mr. James owns 100 per cent of the voting shares of Contract Leasing, ation by the Board of Registrants’ activities under this holding company may be entitled to the exemption in § the provisions of § 4(a)(2) of the Act, that is, 4(c)(ii) of the Act, by virtue of which the general prohibitions whenever the alteration or change is such that the of § 4 against nonbanking activities are not applicable to a holding company covered in 1970 more than 85 per cent of Board finds that a termination of the grandfather the voting shares of which was owned on June 30, 1968, and privileges is necessary to prevent an undue con­ continuously thereafter by members of the same family. centration of resources or any of the other evils 2Section 4(c)(1)(A) of the Act enables a bank holding company to hold shares of a company engaged solely in holding designated in the Act. No merger, consolidation, or operating properties used wholly or substantially by any acquisition of assets other than in the ordinary banking subsidiary of such bank holding company in the course of business, nor acquisition of any interest operations of such banking subsidiary or acquired for such future use. in a going concern, to which the Registrants or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 217 any nonbank subsidiary thereof is a party, may Section 4(a)(2) of the Act provides, inter alia, be consummated without prior approval of the that the Board of Governors of the Federal Reserve Board. Further, the provision of any credit, prop­ System may terminate such grandfather privileges erty, or service by the Registrants or any subsi­ if, having due regard to the purposes of the Act, diary thereof shall not be subject to any condition the Board determines that such action is necessary which, if imposed by a bank, would constitute an to prevent undue concentration of resources, de­ unlawful tie-in arrangement under § 106 of the creased or unfair competition, conflicts of interest, Bank Holding Company Act Amendments of or unsound banking practices. With respect to a 1970. company that controls a bank with assets in excess The determination herein does not preclude a of $60 million on or after December 31, 1970, later review, by the Board, of Registrants’ non­ the Board is required to make such a determination bank activities and a future determination by the within a two year period. Board in favor of termination of grandfather bene­ Notice of the Board’s proposed review of any fits of Registrants. The determination herein is grandfather privileges of First Oklahoma Bancor­ subject to the Board’s authority to require modifi­ poration, Inc., Oklahoma City, Oklahoma, and an cation or termination of the activities of Regis­ opportunity for interested persons to submit com­ trants or of their nonbanking subsidiary as the ments and views or request a hearing, has been Board finds necessary to assure compliance with given (37 F.R. 22414 and 25204). The time for the provisions and purposes of the Act and the filing comments, views, and requests has expired, Board’s regulations and orders issued thereunder, and all those received have been considered by or to prevent evasions thereof. the Board in light of the factors set forth in § By determination of the Board of Governors, 4(a)(2) of the Act. effective January 5, 1973. The facts before the Board show that First Oklahoma Bancorporation, Inc., Oklahoma City, Voting for this action: Chairman Burns and Governors Oklahoma (“Registrant”), became a bank holding Robertson, Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Governor Mitchell. company on December 31, 1970, as a result of the 1970 Amendments to the Act, by virtue of (Signed) Tynan Smith, [seal] Secretary of the Board. Registrant’s ownership of more than 50 per cent of the outstanding voting shares of The First Na­ tional Bank and Trust Company of Oklahoma FIRST OKLAHOMA BANCORPORATION, City, Oklahoma City, Oklahoma (“ Bank”) (assets INC., of $567 million as of December 31, 1970). How­ OKLAHOMA CITY, OKLAHOMA ever, the Board’s review of Registrant further shows that Registrant does not constitute a “com­ “Grandfather” Privileges pany covered in 1970” as defined in § 2(b) of Under Bank Holding Company Act the Bank Holding Company Act. Section 2(b) of Section 4 of the Bank Holding Company Act the Act defines “company covered in 1970” as (12 U.S.C. 1843) provides certain privileges a “company which becomes a bank holding com­ (“grandfather” privileges) with respect to non­ pany as a result of the enactment of the Bank banking activities of a company that, by virtue Holding Company Act Amendments of 1970 and of the 1970 Amendments to the Bank Holding which would have been a bank holding company Company Act, became subject to the Bank Hold­ on June 30, 1968, if those amendments had been ing Company Act. Pursuant to § 4(a)(2) of the enacted on that date.” Registrant was already a Act, a “company covered in 1970” may continue registered multi-bank holding company on June to engage, either directly or through a subsidiary, 30, 1968,1 and the enactment of the 1970 Amend­ in nonbanking activities that such company was ments on June 30, 1968 would not have caused lawfully engaged in on June 30, 1968 (or on a Registrant to become a bank holding company nor date subsequent to June 30, 1968, in the case of altered Registrant’s status under the Act. On this activities carried on as a result of the acquisition by such company or subsidiary, pursuant to a Registrant became a multi-bank on January 8, 1968, when binding written contract entered into on or before it acquired more than 50 per cent of the voting shares of Bank June 30, 1968, of another company engaged in and of The Idabel National Bank, Idabel, Oklahoma, pursuant such activities at the time of the acquisition), and to the Board’s order of November 30, 1962 (1962 Federal has been continuously engaged in since June 30, Reserve Bulletin 1608). Registrant sold its interest in Idabel Bank on September 27, 1968, and ceased to be a bank holding 1968 (or such subsequent date). company as then defined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN □ MARCH 1973 basis, the Board concludes that Registrant does of $60 million on or after December 31, 1970, not fit within the definition of a “company covered the Board is required to make such a determination in 1970,” that Registrant is not eligible for grand­ within a two-year period. father benefits, and that the question of termination Notice of the Board’s proposed review of the of grandfather privileges, under the proviso in § grandfather privileges of Perpetual Corporation 4(a)(2) of the Act, is moot. (“Perpetual” ) and of Pierce National Life Insur­ The conclusion contained herein is limited to ance Company (“ Pierce”), both of Los Angeles, the matter of Registrant’s entitlement to “grand­ California, and an opportunity for interested per­ father” privileges and the subject of termination sons to submit comments and views or request a under the proviso in § 4(a)(2) of the Act; and does hearing has been given (37 Federal Register not affect any authority that Registrant may have 22414). The time for filing comments, views and to engage in nonbanking activities pursuant to requests has expired, and all those received have other provisions of the Bank Holding Company been considered by the Board in light of the factors Act, or pursuant to Board approval of an applica­ set forth in § 4(a)(2) of the Act. tion. On the evidence before it, the Board makes the Board of Governors, January 10, 1973. following findings. Perpetual reports that it is a non-operating holding company, with its only ac­ (Signed) Tynan Smith, tivity being that of holding stock of its subsid­ [seal] Secretary of the Board. iaries. It owns 100 per cent of the voting shares of Pierce, which is the immediate parent of Hous- PERPETUAL CORPORATION, ton-Citizens Bank & Trust Company, Houston, PIERCE NATIONAL LIFE INSURANCE Texas (“Houston-Citizens” ) (assets of about $228 COMPANY million as of December 31, 1970).1 On December LOS ANGELES, CALIFORNIA 31, 1970, Perpetual and Pierce (Registrants) con­ trolled directly or indirectly about 63 per cent of “Grandfather” Privileges the outstanding voting shares of Houston-Citizens Under Bank Holding Company Act and each became a bank holding company on that Section 4 of the Bank Holding Company Act date as a result of the 1970 Amendments to the (12 U.S.C. 1843) provides certain privileges Bank Holding Company Act. However, neither (“grandfather” privileges) with respect to non­ Perpetual nor Pierce would have been a bank banking activities of a company that, by virtue holding company on June 30, 1968, if the 1970 of the 1970 Amendments to the Bank Holding Amendments to the Act had been enacted on that Company Act, became subject to the Bank Hold­ date. ing Company Act. Pursuant to § 4(a)(2) of the Section 2(b) of the Act defines “company cov­ Act, a “company covered in 1970” may continue ered in 1970” as a “company which becomes a to engage, either directly or through a subsidiary, bank holding company as a result of the enactment in nonbanking activities that such company was of the Bank Holding Company Act Amendments lawfully engaged in on June 30, 1968 (or on a of 1970 and which would have been a bank holding date subsequent to June 30, 1968, in the case of company on June 30, 1968, if those Amendments activities carried on as a result of the acquisition had been enacted on that date” (emphasis sup­ by such company or subsidiary, pursuant to a plied). Registrants owned only 24.86 per cent of binding written contract, entered into on or before Houston-Citizens on June 30, 1968; and the en­ June 30, 1968, of another company engaged in actment of the 1970 Amendments on June 30, such activities at the time of the acquisition), and 1968, in itself would not have caused either Per­ has been continuously engaged in since June 30, 1968 (or such subsequent date). Section 4(a)(2) of the Act provides, inter alia, 1On November 30, 1972, the Board approved the formation that the Board of Governors of the Federal Reserve of First International Bancshares, Inc., Dallas, Texas (“First International”); and approved Perpetual’s application to ac­ System may terminate such grandfather privileges quire 7 per cent of the voting shares of First International in if, having due regard to the purposes of the Act, exchange for Perpetual’s shares of Houston-Citizens. (1972 the Board determines that such action is necessary Federal Reserve Bulletin 1028, 1034). The president of Perpetual will serve as a director of First International. Because to prevent undue concentration of resources, de­ of this interlock between the transferor (Perpetual) and the creased or unfair competition, conflicts of interest, transferee (First International), the transferred shares of Hous­ ton-Citizens will be deemed to be controlled by Perpetual (by or unsound banking practices. With respect to a virtue of § 2(g)(3) of the Act) and Perpetual will continue company that controls a bank with assets in excess to be a bank holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 219 petual or Pierce to become a bank holding com­ Dallas, Dallas, Texas,1 and an opportunity for pany or altered the status of either under the Act. interested persons to submit comments and views Thus, neither Perpetual nor Pierce is a “company or request a hearing has been given (37 F.R. covered in 1970” , and neither is entitled to 22414). The time for filing comments, views, and grandfather benefits under § 4(a)(2) of the Act. requests has expired, and all those received have On the basis of the facts presented, the Board been considered by the Board in light of the factors concludes that neither Perpetual nor Pierce is a set forth in § 4(a)(2) of the Act. “company covered in 1970” ; that neither com­ On the evidence before it, the Board makes the pany is eligible for grandfather benefits; and that, following findings. First National Bank in Dallas, on this basis, the question of the termination of Dallas, Texas (“Registrant”) (about $1.5 billion grandfather privileges of either company is moot. in deposits as of December 31, 1971), became a Board of Governors, January 12, 1973. bank holding company on December 31, 1970, as a result of the 1970 Amendments to the Act, (Signed) Tynan Smith, by virtue of Registrant’s ownership of approxi­ [seal] Secretary of the Board. mately 26 per cent of Guaranty Bank, Dallas, Texas (formerly South Oak Cliff Bank), which FIRST NATIONAL BANK IN DALLAS, shares Registrant acquired in 1966 in the regular DALLAS, TEXAS course of collecting a debt previously contracted. Guaranty Bank had total deposits of approximately “Grandfather” Privileges $34 million as of June 30, 1972, representing 0.5 Under Bank Holding Company Act per cent of the total commercial deposits in the Section 4 of the Bank Holding Company Act Dallas banking market. The management, finan­ (12 U.S.C. 1843) provides certain privileges cial condition and prospects of Registrant and (“grandfather” privileges) with respect to non­ Guaranty Bank are regarded as satisfactory, and banking activities of a company that, by virtue the Board has found no evidence of any unsound of the 1970 Amendments to the Bank Holding banking practices. Company Act, became subject to the Bank Hold­ In addition, First National Bank in Dallas con­ ing Company Act. Pursuant to § 4(a)(2) of the trols indirectly, through First National Securities Act, a “company covered in 1970” may continue Company in Dallas, Registrant’s trusteed affiliate, to engage, either directly or through a subsidiary, stock interests ranging between 11 per cent and in nonbanking activities that such a company was 24.9 per cent of each of thirteen banks, all of lawfully engaged in on June 30, 1968 (or on a which are located in the Dallas area. These banks date subsequent to June'30, 1968, in the case of control total deposits of approximately $266 mil­ activities carried on as a result of the acquisition lion. by such company or subsidiary, pursuant to a In addition to its commercial bank activities, binding written contract entered into on or before Registrant, a national bank, has direct or indirect June 30, 1968, of another company engaged in interests in a small business investment company, such activities at the time of the acquisition), and an Edge Act corporation, a data processing com­ has been continuously engaged in since June 30, pany, and a company engaged solely in the man­ 1968 (or such subsequent date). aging and servicing of buildings occupied or to Section 4(a)(2) of the Act provides, inter alia, be occupied wholly or substantially by Registrant. that the Board of Governors of the Federal Reserve It appears that Registrant’s interests in the small System may terminate such grandfather privileges business investment company and the building if, having due regard to the purposes of the Act, management company were acquired prior to June the Board determines that such action is necessary 30, 1968, and have been held by Registrant con­ to prevent undue concentration of resources, de­ tinuously since that time; and these companies creased or unfair competition, conflicts of interest, would be eligible for grandfather benefits.2 How­ or unsound banking practices. With respect to a company that controls a bank with assets in excess 1 First National Bank in Dallas does not control a bank with assets in excess of $60 million but is itself such a bank (assets of $60 million on or after December 31, 1970, of $2.1 billion as of December 31, 1970). the Board is required to make such a determination 2Registrant’s interests in the Edge Act corporation and data within a two-year period. processing company were acquired after June 30, 1968, and these companies would not be eligible for grandfather benefits. Notice of the Board’s proposed review of the However, these companies may be eligible for retention under grandfather privileges of First National Bank in other provisions of § 4 of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN □ MARCH 1973 ever, the activities of these companies appear to to prevent undue concentration of resources, de­ be exempt, under provisions of § 4(c) of the Act, creased or unfair competition, conflicts of interest, from the general prohibitions in § 4 against non­ or unsound banking practices. With respect to a banking interests of a bank holding company. On company that controls a bank with assets in excess this basis, the Board finds that Registrant3 does of $60 million on or after December 31, 1970, not need to rely on grandfather privileges under the Board is required to make such a determination the proviso in § 4(a)(2) of the Act in order to within a two-year period. continue such nonbanking activities; and the Notice of the Board’s proposed review of the question of termination of grandfather privileges grandfather privileges of First Railroad & Banking is moot. Company of Georgia, Augusta, Georgia, and an Board of Governors, January 12, 1973. opportunity for interested persons to submit com­ ments and views or request a hearing, has been (Signed) Tynan Smith, given (37 F.R. 22414 and 25204). The time for [seal] Secretary of the Board. filing comments, views, and requests has expired, and all those received have been considered by the Board in light of the factors set forth in § FIRST RAILROAD & BANKING COMPANY 4(a)(2) of the Act. OF GEORGIA, On the evidence before it, the Board makes the AUGUSTA, GEORGIA following findings. First Railroad & Banking Determination Regarding “Grandfather” Company of Georgia, Augusta, Georgia (“ Regis­ Privileges Under Bank Holding Company trant”), became a bank holding company on De­ Act cember 31, 1970, as a result of the 1970 Amend­ ments to the Act, by virtue of Registrant’s owner­ Section 4 of the Bank Holding Company Act ship of more than 99 per cent of the outstanding (12 U.S.C. 1843) provides certain privileges voting shares of Georgia Railroad Bank & Trust (“grandfather” privileges) with respect to non­ Company, Augusta, Georgia (“ Bank”) (assets of banking activities of a company that, by virtue $192 million, as of December 31, 1970). Regis­ of the 1970 Amendments to the Bank Holding trant was organized in 1953 to acquire Georgia Company Act, became subject to the Bank Hold­ Railroad & Banking Company, Augusta, Georgia ing Company Act. Pursuant to § 4(a)(2) of the (“Georgia Railroad”) and, upon acquisition of Act, a “company covered in 1970” may continue Georgia Railroad in 1954, gained control of Bank, to engage, either directly or through a subsidiary, almost all of whose shares were owned by Georgia in nonbanking activities that such a company was Railroad. Bank had total deposits of about $186 lawfully engaged in on June 30, 1968 (or on a million (as of June 30, 1972), representing about date subsequent to June 30, 1968, in the case of 2.0 per cent of total deposits in commercial banks activities carried on as a result of the acquisition in Georgia. Based on deposits within the Augusta by such company or subsidiary, pursuant to a market as of June 30, 1972, Bank is the largest binding written contract entered into on or before banking institution in the market with about 44 June 30, 1968, of another company engaged in per cent of deposits there. Bank’s management, such activities at the time of the acquisition), and financial condition, and prospects appear to be has been continuously engaged in since June 30, satisfactory and the Board has found no evidence 1968 (or such subsequent date). of any unsound banking practices. Section 4(a)(2) of the Act provides, inter alia, Registrant (consolidated assets of about $217 that the Board of Governors of the Federal Reserve million as of December 31, 1971) engages directly System may terminate such grandfather privileges in acquiring, and holding for development, prop­ if, having due regard to the purposes of the Act, erty contiguous to its railroad yards in Augusta the Board determines that such action is necessary and has been engaged in this activity continuously since before June 30, 1968. In addition, Registrant 3On November 30, 1972, the Board approved the application of First International Bancshares, Inc., Dallas, Texas, to be­ has three nonbanking subsidiaries, which are en­ come a bank holding company through the acquisition of the gaged in nonbanking activities that appear eligible successor by merger to Registrant, and the successor by merger for grandfather benefits, nam ely, Georgia to Houston-Citizens Bank & Trust Company, Houston, Texas (1972 Federal Reserve Bulletin 1028). The decision reflected Railroad, First Georgia Development Corporation, herein is limited to the Board’s review of the nonbanking Atlanta, Georgia (“ Development Corporation”), activities of Registrant, and no decision is made at this time and First Georgia Building Corporation, Augusta, with respect to the applicability of any of the exemptions under the Act to First International Bancshares, Inc. Georgia (“ Building Corporation”). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 221 Georgia Railroad (incorporated in 1833) con­ gistrant has any role in the management of the ducted both a banking and railroad business until Trust and the shares are held solely as an invest­ 1881 when the railroad properties, together with ment. There appears to be no reason to require controlling stock interests in two railroads, were Registrant to terminate its investments in Straw­ leased. Thereupon, Georgia Railroad became a berry Hill or in State Real Estate Investment Trust. non-operating carrier with a banking division On the basis of the foregoing and all the facts which in 1892 was incorporated as Bank. Contin­ before the Board, it appears that the volume, uously since 1881, Georgia Railroad has been a scope, and nature of the activities of Registrant non-operating carrier and lessor of the properties and its subsidiaries, do not demonstrate an undue and securities which it owns. Development Cor­ concentration of resources, decreased or unfair poration (80 per cent of voting shares of which competition, conflicts of interest nor unsound are held by Registrant) was formed in 1964 to banking practices. develop the real property of Georgia Railroad that There appears to be no reason to require Regis­ was no longer required for railroad purposes. The trant to terminate its grandfathered interests. It is real estate activities of Registrant and its subsid­ the Board’s judgment that, at this time termination iaries have been confined to acquiring and holding of the grandfather privileges of Registrant is not for development property contiguous to its railroad necessary in order to prevent an undue concentra­ yards in Augusta, to owning and leasing railroad tion of resources, decreased or unfair competition, property, and to promoting development (as dis­ conflicts of interest, or unsound banking practices. tinguished from engaging in development) of its However, this determination is not authority to property no longer required for railroad purposes. enter into any activity that was not engaged in Building Corporation (a wholly owned subsidiary on June 30, 1968 and continuously thereafter, or of Registrant formed in 1966) provides service any activity that is not the subject of this determi­ personnel for Bank’s buildings. The activities of nation. Nor is this determination authority for Building Corporation appear to be exempt under Registrant to engage in land development, or to the provisions of section 4(c)(1) of the Bank engage in the general real estate business, or to Holding Company Act and, on that basis, no acquire additional shares of any company if the grandfather privileges under the proviso in section Registrant’s holdings in said company will exceed 4(a)(2) of the Act are needed to enable Registrant 5 per cent of the outstanding voting shares of such to continue such activities. company. In addition, Registrant has minority interests A significant alteration in the nature or extension entitled to grandfather benefits in three other cor­ of Registrant’s activities or a change in location porations: CSRA Capital Corporation, Augusta, thereof (significantly different from any described Georgia (acquired in 1962); Strawberry Hill, Inc., in this determination) will be cause for a re-evalu­ Augusta, Georgia (acquired in May 1968); and ation by the Board of Registrant’s activities under State Real Estate Investment Trust, Greenwood, the provisions of § 4(a)(2) of the Act, that is, South Carolina (acquired in 1964). CSRA Cor­ whenever the alteration or change is such that the poration is a small business investment company Board finds that a termination of the grandfather (11.9 per cent of whose shares are owned by Bank) privileges is necessary to prevent an undue con­ and Registrant’s investment appears to be exempt centration of resources or any of the other evils under the provisions of section 4(c)(5) of the Act designated in the Act. No merger, consolidation, and section 225.4(c) of Regulation Y and, on that acquisition of assets other than in the ordinary basis, no grandfather privileges are needed to course of business, nor acquisition of any interest enable Registrant to continue such investment. in a going concern, to which the Registrant or any Strawberry Hill, Inc. (about 14 per cent of which nonbank subsidiary thereof is a party may be was acquired by Registrant in May 1968) was consummated without prior approval of the Board. formed as a community project to develop a tract Further, the provision of any credit, property, or of land adjacent to Fort Gordon, Georgia, to service by the Registrant or any subsidiary thereof provide adequate housing for military personnel. shall not be subject to any condition which, if When the project is completed, Strawberry Hill imposed by a bank, would constitute an unlawful Corporation is expected to be dissolved. Finally, tie-in arrangement under § 106 of the Bank Hold­ through Georgia Railroad, Registrant holds about ing Company Act Amendments of 1970. 13 per cent of shares of State Real Estate Invest­ The determination herein does not preclude a ment Trust, a small, closely held real estate in­ later review by the Board of Registrant’s nonbank vestment trust. Neither Georgia Railroad nor Re­ activities and a future determination by the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN □ MARCH 1973 in favor of termination of grandfather benefits of the Board is required to make such a determination Registrant. The determination herein is subject to within a two-year period. the Board’s authority to require modification or Notice of the Board’s proposed review of the termination of the activities of Registrant or any grandfather privileges of the Keystone Consoli­ of its nonbanking subsidiaries or of Registrant’s dated Industries, Inc., Peoria, Illinois, and an grandfathered investments as the Board finds nec­ opportunity for interested persons to submit com­ essary to assure compliance with the provisions ments and views or request a hearing, has been and purposes of the Act and the Board’s regula­ given (37 F.R. 22414). The time for filing com­ tions and orders issued thereunder, or to prevent ments, views, and requests has expired, and all evasions thereof. those received have been considered by the Board By determination of the Board of Governors, in light of the factors set forth in § 4(a)(2) of the effective January 22, 1973. Act. On the evidence before it, the Board makes the Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. following findings. Keystone Consolidated Indus­ tries, Inc., Peoria, Illinois (“ Registrant”), became (Signed) Tynan Smith, a bank holding company on December 31, 1970, [seal] Secretary of the Board. as a result of the 1970 Amendments to the Act, by virtue of Registrant’s ownership of 50 per cent of the voting shares of Jefferson Trust and Savings KEYSTONE CONSOLIDATED INDUSTRIES, Bank of Peoria (“ Bank”) (assets of approximately INC., $90 million, as of December 31, 1970). Bank, PEORIA, ILLINOIS control of which was acquired by Registrant in Determination Regarding “Grandfather” December, 1947, had total deposits of approxi­ Privileges Under Bank Holding Company mately $85 million, as of December 31, 1971, Act ranks second among 43 banks located in the Peoria, Illinois SMSA, and controls 11 per cent Section 4 of the Bank Holding Company Act of the total deposits in commercial banks in the (12 U.S.C. 1843) provides certain privileges area. The larger bank in the area is almost two (“grandfather” privileges) with respect to non­ and one-half times as large as Bank. Bank’s man­ banking activities of a company that, by virtue agement, financial condition and prospects are of the 1970 Amendments to the Bank Holding regarded as generally satisfactory and the Board Company Act, became subject to the Bank Hold­ has found no evidence of unsound banking prac­ ing Company Act. Pursuant to § 4(a)(2) of the tices. Act, a “company covered in 1970” may continue Registrant (assets of $191 million, as of June to engage, either directly or through a subsidiary, 30, 1972) is an integrated steel company engaged in nonbanking activities that such a company was in operations in the United States, Canada, Mex­ lawfully engaged in on June 30, 1968 (or on a ico, and the United Kingdom. Registrant engages date subsequent to June 30, 1968, in the case of directly in the production of low and high carbon activities carried on as a result of the acquisition steel and the conversion of it into billets, bars, by such company or subsidiary, pursuant to a rods, and wire products, the manufacture of cabi­ binding written contract entered into on or before net hardware, automotive and appliance hardware, June 30, 1968, of another company engaged in locks, locksets, casters, and household and office such activities at the time of the acquisition), and furniture, and the production of fasteners such as has been continuously engaged in since June 30, screws, bolts, nuts and cold headed parts. It ap­ 1968 (or such subsequent date). pears that all of these direct nonbanking activities Section 4(a)(2) of the Act provides, inter alia, were commenced by Registrant1 before June 30, that the Board of Governors of the Federal Reserve 1968 and have been engaged in continuously System may terminate such grandfather privileges thereafter. In addition, Registrant has acquired if, having due regard to the purposes of the Act, several nonbanking subsidiaries (going concerns) the Board determines that such action is necessary to prevent undue concentration of resources, de­ Registrant states it was incorporated in Delaware in 1958 creased or unfair competition, conflicts of interest, to effect a re-incorporation of Keystone Steel and Wire Com­ or unsound banking practices. With respect to a pany, an Illinois corporation whose earlier predecessor was established in 1889; and that Registrant’s charter was amended company that controls a bank with assets in excess in 1968 changing the company’s name to Keystone Consoli­ of $60 million on or after December 31, 1970, dated Industries, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 223 engaged in the same activities, namely, Waterloo eliminate any significant actual or potential com­ Metal Stampings, Ltd., Kitchener, Ontario, Can­ petition; nor is there evidence of a current undue ada (“Waterloo”), Hillcrest Engineering Limited, concentration of resources, decreased or unfair Birmingham, England (“Hillcrest” ), Tornillos competition or conflicts of interest. Especiales de Mexico, Naucalpan de Juarez, On the basis of the foregoing and all the facts Mexico (“Tornillos”), and Keysteel International before the Board, it appears that the volume, Limited, Toronto, Ontario, Canada (“ Keysteel”). scope, and nature of the activities of Registrant Broderick & Bascom Rope Co., Overland, Mis­ and its subsidiaries do not demonstrate an undue souri (“ Broderick”), another subsidiary of Regis­ concentration of resources, decreased or unfair trant, manufactures steel and wire rope. Broderick competition, conflicts of interest nor unsound (acquired in July, 1968), Waterloo (acquired in banking practices. March, 1969), and Hillcrest2 (acquired in March, There appears to be no reason to require Regis­ 1969) are not entitled to grandfather benefits.3 trant to terminate its grandfathered interests. It is Keysteel, acquired June 2, 1964, is inactive and the Board’s judgment that, at this time, termina­ therefore has no grandfather benefits. Tornillos, tion of the grandfather privileges of Registrant is which was acquired in April, 1965, manufactures not necessary in order to prevent an undue con­ screws, nuts and bolts for Mexican markets and centration of resources, decreased or unfair com­ qualifies under the grandfather provision in § petition, conflicts of interest, or unsound banking 4(a)(2) of the Act. practices. However, this determination is not au­ Registrant’s 1969 purchase of the Chicago thority to enter into any activity or product exten­ Heights plant of the Inland Steel Co. apparently sion that was not engaged in on June 30, 1968 constituted a product extension; on this basis, no and continuously thereafter, or any activity that grandfather privileges accrue under the proviso in is not the subject of this determination. § 4(a)(2) of the Act.4 Registrant’s 20 per cent Although the Board regards the resources now interest in Weld-Loc (a company apparently en­ subject to Registrant’s control as not constituting gaged in a product line in which Registrant did an undue concentration of resources such as re­ not engage on June 30, 1968), an interest that was quires a termination of grandfathered activities, the acquired after June 30, 1968, is not entitled to Board is concerned with the size and scope of grandfather privileges.5 Registrant’s nonbanking activities. A significant Registrant conducts business throughout the alteration in the nature or extension of Registrant’s United States (26 plants located variously in 13 activities or a change in location thereof (signifi­ States) and is a company listed on the New York cantly different from any described in this deter­ Stock Exchange. However, Registrant is not re­ mination) will be cause for a re-evaluation by the garded as a dominant force in its product market, Board of Registrant’s activities under the provi­ where it competes with a large number of compa­ sions of § 4(a)(2) of the Act, that is, whenever nies of various sizes, including a number of com­ the alteration or change is such that the Board finds panies larger than Registrant. Registrant (with that a termination of the grandfather privileges is about 2 per cent of the aggregate work force in necessary to prevent an undue concentration of the Peoria area) is not the dominant employer in resources or any of the other evils at which the the Peoria area nor does Registrant derive a sig­ Act is directed. No merger, consolidation, acqui­ nificant portion of its business from that area (less sition of assets other than in the ordinary course than 1 per cent of Registrant’s total sales). It of business, nor acquisition of any interest in a appears that the combination of Registrant’s bank­ going concern, to which the Registrant or any ing and nonbanking activities has not served to nonbank subsidiary thereof is a party, may be consummated without prior approval of the Board. 2Carridine & Miles Ltd., Birmingham, England (50 per cent Further, the provision of any credit, property, or of the shares are owned by Registrant), serves only as a holding company for Hillcrest. service by the Registrant or any subsidiary thereof 3On this basis, Registrant would be required to divest itself shall not be subject to any condition which, if of its interests (over 5 per cent) in these companies by January imposed by a bank, would constitute an unlawful 1, 1981, or cease to be a bank holding company. 4On these facts and under § 4(a)(2) of the Act, Registrant tie-in arrangement under § 106 of the Bank Hold­ is required to divest such product extension activity by January ing Company Act Amendments of 1970. 1, 1981, or cease to be a bank holding company. The determination herein does not preclude a 5On these facts and under § 4(a)(2) of the Act, Registrant is required to divest its interest (over 5 per cent) in Weld-Loc later review, by the Board, of Registrant’s non­ by January 1, 1981, or cease to be a bank holding company. bank activities and a future determination by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN □ MARCH 1973 Board in favor of termination of grandfather bene­ prevent evasion thereof. fits of Registrant. The determination herein is By determination of the Board of Governors, subject to the Board’s authority to require modifi­ effective February 23, 1973. cation or termination of the activities of Registrant Voting for this action: Chairman Burns and Governors or any of its nonbanking subsidiaries as the Board Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s (Signed) Tynan Smith, regulations and orders issued thereunder, or to [seal] Secretary of the Board. GRANDFATHER REVIEWS NOT PRINTED IN THIS ISSUE The Board has also conducted a review under the grandfather proviso in Section 4(a)(2) of the Bank Holding Company Act, with respect to each of the companies listed below. The results of the reviews have been published in the Federal Register. Copies are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Federal Register Company Date Citation Frank P. Doyle Trust, Article IX, 12/26/72 38 F.R. 919 Santa Rosa, California 1/5/73 Potomac Securities Corp., 12/26/72 38 F.R. 919 Silver Spring, Maryland 1/5/73 International Equities, Inc., 12/26/72 38 F.R. 919 New York, New York 1/5/73 Alexandria Shares Corp., 12/26/72 38 F.R. 919 Alexandria, Virginia 1/5/73 Virginia Bankshares, Inc., 12/26/72 38 F.R. 919 Richmond, Virginia 1/5/73 Marine Bancorporation, 12/26/72 38 F.R. 919 Seattle, Washington 1/5/73 The Hong Kong and Shanghai Banking 12/26/72 38 F.R. 919 Corporation, Hong Kong 1/5/73 First Bancorporation, 12/26/72 38 F.R. 919 Reno, Nevada 1/5/73 Amalgamated Associates Co., 12/26/72 38 F.R. 919 Chicago, Illinois 1/5/73 Amalgamated Investments Co., 12/26/72 38 F.R. 919 Chicago, Illinois 1/5/73 First Highland Corp., 12/26/72 38 F.R. 919 Highland Park, Illinois 1/5/73 Financial Network Corp., 12/26/72 38 F.R. 919 Milwaukee, Wisconsin 1/5/73 Sumitomo Bank, Ltd. 12/26/72 38 F.R. 920 Osaka, Japan 1/5/73 Hopeton Holding Corp., 12/26/72 38 F.R. 920 Wilmington, Delaware 1/5/73 Financial Investments Corp., 12/26/72 38 F.R. 920 Chicago, Illinois 1/5/73 First National Bank of Cicero Corp., 12/26/72 38 F.R. 920 Oak Park, Illinois 1/5/73 Investment Securities Corp., 12/26/72 38 F.R. 920 Lexington, Kentucky 1/5/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 225 GRANDFATHER REVIEWS NOT PRINTED IN THIS ISSUE (Continued) Federal Register Company Date Citation Tennessee Shares Corp., 12/26/72 38 F.R. 920 Cheverly, Maryland 1/5/73 Independent Bancorporation, 12/26/72 38 F.R. 920 Minneapolis, Minnesota 1/5/73 Mercantile Commerce Co., 12/26/72 38 F.R. 920 St. Louis, Missouri 1/5/73 Barclay’s Bank, Ltd., 12/26/72 38 F.R. 920 London, England 1/5/73 Royal Bank of Canada, 12/26/72 38 F.R. 920 Montreal, Canada 1/5/73 Industrial Bank of Japan, Ltd., 12/26/72 38 F.R. 920 Tokyo, Japan 1/5/73 U T Securities Corp., 12/26/72 38 F.R. 920 New York, New York 1/5/73 Southeastern Shares Corp., 12/26/72 38 F.R. 920 New York, New York National Bank of Greece, S.A., 12/26/72 38 F.R. 920 Athens, Greece 1/5/73 Financial General Corp., 12/26/72 38 F.R. 920 Richmond, Virginia 1/5/73 Coronado Financial Corp., 12/26/72 38 F.R. 920 Kansas City, Missouri 1/5/73 Columbia Union Bancshares, 12/26/72 38 F.R. 920 Kansas City, Missouri 1/5/73 Bankshares of Indiana, Inc., 12/26/72 38 F.R. 920 Merrillville, Indiana (formerly 1/5/73 Indiana Industries, Inc., Gary, Ind.) Delta Loan & Finance Company, 12/27/72 38 F.R. 1151 St. Louis, Missouri 1/9/73 Estate of James Millikin, Deceased, 12/29/72 38 F.R. 1153 Decatur, Illinois 1/9/73 The Sealy & Smith Foundation for the 12/29/72 38 F.R. 1155 John Sealy Hospital, Galveston, Texas 1/9/73 Zachary Taylor Life Insurance Company, 12/29/72 38 F.R. 1156 Shreveport, Louisiana 1/9/73 Houston National Co., 1/2/73 38 F.R. 1235 Houston, Texas 1/10/73 Minnesota Small Loan Company, 1/4/73 38 F.R. 1308 Minneapolis, Minnesota 1/11/73 The Charles Stewart Mott Foundation, 1/5/73 38 F.R. 1537 Flint, Michigan 1/15/73 South St. Louis Investment Company or 1/5/73 38 F.R. 1541 Hampton Bankshares Corporation, 1/15/73 both of St. Louis, Missouri Memphis Trust Company, 1/23/73 38 F.R. 3012 Memphis, Tennessee 1/31/72 Wasatch National, Inc., 2/15/73 38 F.R. 5208 Ogden, Utah 2/26/73 The Western and Southern Life Insurance 2/26/73 38 F.R. 6104 Company, Cincinnati, Ohio 3/6/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches Following is a list of the directorates of the Federal Reserve Banks and branches as at present constituted. The list shows, in addition to the name of each director, his principal business affiliation, the class of directorship, and the date when his term expires. Each Federal Reserve Bank has nine directors; three Class A and three Class B directors, who are elected by the stockholding member banks, and three Class C directors, who are appointed by the Board of Governors of the Federal Reserve System. Class A directors are representative of the stockholding member banks. Class B directors must be actively engaged in their district in commerce, agriculture, or some industrial pursuit, and may not be officers, directors, or employees of any bank. For the purpose of electing Class A and Class B directors, the member banks of each Federal Reserve district are classified by the Board of Governors of the Federal Reserve System into three groups, each of which consists of banks of similar capitalization, and each group elects one Class A and one Class B director. Class C directors may not be officers, directors, employees, or stockholders of any bank. One Class C director is designated by the Board of Governors as Chairman of the Board of Directors and Federal Reserve Agent and another as Deputy Chairman. Federal Reserve branches have either five or seven directors, of whom a majority are appointed by the Board of Directors of the parent Federal Reserve Bank; the others are appointed by the Board of Governors of the Federal Reserve System. One of the directors appointed by the Board of Governors at each branch is designated annually as Chairman of the Board in such manner as the Federal Reserve Bank may prescribe. Names followed by footnote 1 (*) are Chairmen and those by footnote 2 (2) are Deputy Chairmen. District 1—FEDERAL RESERVE BANK OF BOSTON Term expires Class A: Dec. 31 Ralph A. McIninch President, Merchants National Bank of Manchester, N.H. 1973 Mark C. W heeler President, New England Merchants National Bank, Boston, Mass. 1974 W illiam M. Honey President, The Martha’s Vineyard National Bank, Vineyard Haven, Mass. 1975 Class B: G. W illiam Miller President, Textron, Providence, R.I. 1973 W. Gordon Robertson Bangor, Maine 1974 Alfred W. Van Sinderen President, The Southern New England Telephone Co., New Haven, Conn. 1975 Class C: John M. Fox President, Chief Executive Officer, H. P. Hood & Sons, Charlestown, Mass. 1973 James S. Duesenberry1 Chairman, Department of Economics, Harvard University, Cambridge, Mass. 1974 Louis W. Cabot2 Chairman of the Board, Cabot Corporation, Boston, Mass. 1975 226 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

District 2—FEDERAL RESERVE BANK OF NEW YORK Term expires Dec. 31 Class A: David C. Rockefeller Chairman of the Board, The Chase Manhattan Bank, New York, N.Y. 1973 Norman Brassler Chairman of the Board, Chief Executive Officer, New Jersey Bank, N.A., Passaic, N.J. 1974 Newman E. W ait, Jr. President, Adirondack Trust Company, Saratoga Springs, N.Y. 1975 Class B: Maurice F. Granville Chairman of the Board, Texaco, Inc., New York, N.Y. 1973 (Vacancy) 1974 Jack B. Jackson President, J. C. Penney Company, Inc., New York, N.Y. 1975 Class C: Alan J. Pifer President, Carnegie Corporation of New York, New York, N.Y. 1973 Roswell L. Gilpatric1 Partner, Cravath, Swaine & Moore, New York, N.Y. 1974 Frank R. Milliken2 President, Kennecott Copper Corporation, New York, N.Y. 1975 BUFFALO BRANCH Appointed by Federal Reserve Bank: William B. Anderson President, The First National Bank of Jamestown, N.Y. 1973 Angelo A. Costanza President, Chief Executive Officer, Central Trust Company, Rochester, N.Y. 1973 Theodore M. McClure President, The Citizens National Bank and Trust Company, Wellsville, N.Y. 1974 Claude F. Shuchter President, Chief Executive Officer, Manufacturers and Traders Trust Company, Buffalo, N.Y. 1975 Appointed by Board of Governors: Rupert W arren1 President, Trico Products Corporation, Buffalo, N.Y. 1973 Norman F. Beach Vice President, General Manager, Kodak Park Division, Eastman Kodak Company, Rochester, N.Y. 1974 Donald Nesbitt Owner-Operator, Silver Creek Farms, Albion, N.Y. 1975 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA Class A: Richard A. Herbster President, Lewistown Trust Company, Lewistown, Pa. 1973 (Vacancy) 1974 John H. Hassler President, The City National Bank and Trust Company of Salem, N.J. 1975 Class B: (Vacancy) 1973 C. Graham Berwind, Jr. President, Chief Executive Officer, Berwind Corporation, Philadelphia, Pa. 1974 Bernard D. Broeker Executive Vice President, Bethlehem Steel Corporation, Bethlehem, Pa. 1975 227 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 3—FEDERAL RESERVE BANK OF PHILADELPHIA—Continued Term expires Dec. 31 Class C: John R. Coleman1 President, Haverford College, Haverford, Pa. 1973 Edward W. Robinson, Jr. President, Provident Home Industrial Mutual Life Insurance Co., Philadelphia, Pa. 1974 Edward J. Dwyer2 Chairman, Chief Executive Officer, ESB Incorcorporated, Philadelphia, Pa. 1975 District 4—FEDERAL RESERVE BANK OF CLEVELAND Class A: Edward W. Barker President, First National Bank of Middletown, Ohio 1973 A. Bruce Bowden Vice Chairman of the Board, Mellon National Bank and Trust Company, Pittsburgh, Pa. 1974 David L. Brumback, Jr. President, Van Wert National Bank, Van Wert, Ohio 1975 Class B: John L. Gushman Chairman of the Board, Chief Executive Officer, Anchor Hocking Corporation, Lancaster, Ohio 1973 Donald E. Noble President, Chief Executive Officer, Rubbermaid Incorporated, Wooster, Ohio 1974 Rene C. McPherson Chairman, Chief Executive Officer, Dana Corporation, Toledo, Ohio 1975 Class C: J. W ard Keener2 Chairman of the Executive Committee, The B. F. Goodrich Company, Akron, Ohio 1973 Horace A. Shepard1 Chairman of the Board, Chief Executive Officer, TRW Inc., Cleveland, Ohio 1974 Otis A. Singletary President, University of Kentucky, Lexington, Ky. 1975 CINCINNATI BRANCH Appointed by Federal Reserve Bank: William S. Rowe President, The Fifth Third Bank, Cincinnati, Ohio 1973 E. Paul W illiams President, Second National Bank, Ashland, Ky. 1974 Paul W. Christensen, Jr. President, The Cincinnati Gear Company, Cincinnati, Ohio 1975 Robert E. Hall President, The First National Bank and Trust Company, Troy, Ohio 1975 Appointed by Board of Governors: Clair F. Vough Vice President, Office Products Division, IBM Corporation, Lexington, Ky. 1973 Graham E. Marx1 President, General Manager, The G. A. Gray Company, Cincinnati, Ohio 1974 Phillip R. Shriver President, Miami University, Oxford, Ohio 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 229 District 4—FEDERAL RESERVE BANK OF CLEVELAND—Continued Term PITTSBURGH BRANCH Dec. 31 Appointed by Federal Reserve Bank: Merle E. Gilliand Chairman of the Board, Chief Executive Officer, Pittsburgh National Bank, Pittsburgh, Pa. 1973 Charles F. W ard President, Gallatin National Bank, Uniontown, Pa. 1974 Robinson F. Barker Chairman of the Board, Chief Executive Officer, PPG Industries, Inc., Pittsburgh, Pa. 1975 Jerry A. Halverson President, The First National Bank and Trust Co. of Wheeling, W. Va. 1975 Appointed by Board of Governors: Robert E. Kirby1 President, Industry and Defense Company, Westinghouse Electric Corporation, Pittsburgh, Pa. 1973 Richard M. Cyert President, Carnegie-Mellon University, Pittsburgh, Pa. 1974 Douglas Grymes President, Koppers Company, Inc., Pittsburgh, Pa. 1975 District 5—FEDERAL RESERVE BANK OF RICHMOND Class A: Thomas P. McLachlen President, McLachlen National Bank, Washington, D.C. 1973 Edward N. Evans President, Farmers & Merchants National Bank of Cambridge, Md. 1974 John H. Lumpkin Chairman, Chief Executive Officer, The South Carolina National Bank, Columbia, S.C. 1975 Class B: H. Dail Holderness President, Carolina Telephone and Telegraph Company, Tarboro, N.C. 1973 Henry C. Hofheimer, II Chairman, Virginia Real Estate Investment Trust, Norfolk, Va. 1974 Osby L. W eir General Manager, Metropolitan Washington-Baltimore Area Sears, Roebuck and Co., Bethesda, Md. 1975 Class C: Stuart Shumate2 President, Richmond, Fredericksburg and Potomac Railroad Company, Richmond, Va. 1973 E. Craig W all, Sr. Chairman of the Board, Canal Industries, Inc., Conway, S.C. 1974 Robert W. Lawson, Jr.1 Senior Partner, Charleston Office, Steptoe & Johnson, Charleston, W. Va. 1975 BALTIMORE BRANCH Appointed by Federal Reserve Bank: J. Stevenson Peck Chairman of the Board, Union Trust Company of Maryland, Baltimore, Md. 1973 James J. Robinson Executive Vice President, Bank of Ripley, W. Va. 1973 Tilton H. Dobbin President, Chairman of the Executive Committee, Maryland National Bank, Baltimore, Md. 1974 J. R. Chaffinch, Jr. President, The Denton National Bank, Denton, Md. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 5—FEDERAL RESERVE BANK OF RICHMOND—Continued Term BALTIMORE BRANCH—Continued expires Dec. 31 Appointed by Board of Governors: John H. Fetting, Jr.1 President, A. H. Fetting Company, Baltimore, Md. 1973 James G. Harlow President, West Virginia University, Morgantown, W. Va. 1974 David W. Barton, Jr. President, Barton-Gillet Company, Baltimore, Md. 1975 CHARLOTTE BRANCH Appointed by Federal Reserve Bank: H. Phelps Brooks, Jr. President, The Peoples National Bank, Chester, S.C. 1973 C. C. Cameron Chairman of the Board, President, First Union National Bank of North Carolina, Charlotte, N.C. 1973 L. D. Coltrane, III President, The Concord National Bank, Concord, N.C. 1974 William W. Bruner Chairman, President, First National Bank of South Carolina, Columbia, S.C. 1975 Appointed by Board of Governors: Charles W. DeBell1 General Manager, North Carolina Works, Western Electric Company, Inc., Winston-Salem, N.C. 1973 Charles F. Benbow Vice President, R. J. Reynolds Industries, Inc., Winston-Salem, N.C. 1974 Robert C. Edwards President, Clemson University, Clemson, S.C. 1975 District 6—FEDERAL RESERVE BANK OF ATLANTA Class A: A. L. Ellis Chairman of the Board, First National Bank, Tarpon Springs, Fla. 1973 Jack P. Keith President, First National Bank of West Point, Ga. 1974 Sam I. Yarnell Chairman, American National Bank and Trust Co., Chattanooga, Tenn. 1975 Class B: Hoskins A. Shadow President, Tennessee Valley Nursery, Inc., Winchester, Tenn. 1973 Owen Cooper President, Mississippi Chemical Corporation, Coastal Chemical Corporation, Yazoo City, Miss. 1974 George W. Jenkins Chairman, Publix Super Markets, Inc., Lakeland, Fla. 1975 Class C: John C. W ilson1 President, Horne-Wilson, Inc., Atlanta, Ga. 1973 H. G. Pattillo2 President, Pattillo Construction Company, Inc., Decatur, Ga. 1974 F. Evans Farwell President, Milliken and Farwell, Inc., New Orleans, La. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 231 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued Term BIRMINGHAM BRANCH expires Dec. 31 Appointed by Federal Reserve Bank: W allace D. Malone, Jr. President, Chairman of the Board, The First National Bank of Dothan, Ala. 1973 C. Logan Taylor Chairman of the Board, The First State Bank of Oxford, Ala. 1973 W. Eugene Morgan President, Chief Executive Officer, The First National Bank of Huntsville, Ala. 1974 John T. Oliver President, First National Bank, Jasper, Ala. 1975 Appointed by Board of Governors: David Mathews1 President, University of Alabama, University, Ala. 1973 William C. Bauer President, South Central Bell, Birmingham, Ala. 1974 Frederick G. Koenig, Jr. President, Chief Executive Officer, Alabama By-Products Corporation, Birmingham, Ala. 1975 JACKSONVILLE BRANCH Appointed by Federal Reserve Bank: Malcolm C. Brown President, Chairman of the Board, Florida First National Bank at Brent, Pensacola, Fla. 1973 A. Clewis Howell President, Marine Bank & Trust Company, Tampa, Fla. 1973 Guy W. Botts Vice Chairman of the Board, Barnett Bank of Jacksonville, N.A., Jacksonville, Fla. 1974 Michael J. Franco Chairman of the Board, City National Bank of Miami, Fla. 1975 Appointed by Board of Governors: Henry Cragg1 Vice President, The Coca-Cola Company Foods Division, Winter Park, Fla. 1973 Gert H. W. Schmidt President, TeLeVision 12 of Jacksonville, Fla. 1974 James E. Lyons President, Lyons Industrial Corporation, Winter Haven, Fla. 1975 NASHVILLE BRANCH Appointed by Federal Reserve Bank: Dan B. Andrews President, First National Bank, Dickson, Tenn. 1973 Edward G. Nelson President, Commerce Union Bank, Nashville, Tenn. 1973 W. Bryan Woodard President, Kingsport National Bank, Kingsport, Tenn. 1974 Robert E. Curry President, First National Bank of Pulaski, Tenn. 1975 Appointed by Board of Governors: James W. Long1 President, Robertson County Farm Bureau, Springfield, Tenn. 1973 Edward J. Boling President, The University of Tennessee, Knoxville, Tenn. 1974 John C. Tune Partner, Butler, McHugh, Butler, Tune & Watts, Nashville, Tenn. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 6—FEDERAL RESERVE BANK OF ATLANTA—Continued Tenn NEW ORLEANS BRANCH expires Dec. 31 Appointed by Federal Reserve Bank: Tom A. Flanagan, Jr. President, Lakeside National Bank of Lake Charles, La. 1973 Lawrence A. Merrigan President, The Bank of New Orleans and Trust Company, New Orleans, La. 1973 Archie R. McDonnell President, Citizens National Bank, Meridian, Miss. 1974 Ernest F. Ladd, Jr. Chairman, The Merchants National Bank, Mobile, Ala. 1975 Appointed by Board of Governors: Broadus N. Butler President, Dillard University, New Orleans, La. 1973 Fred Adams, Jr.1 President, Cal-Maine Foods, Inc., Jackson, Miss. 1974 Edwin J. Caplan President, Caplan’s Men’s Shops, Inc., Alexandria, La. 1975 District 7—FEDERAL RESERVE BANK OF CHICAGO Class A: Melvin C. Lockard President, First National Bank, Mattoon, 111. 1973 Floyd F. W hitmore President, The Okey-Vernon National Bank, Corning, Iowa 1974 Edward Byron Smith Chairman of the Board, The Northern Trust Company, Chicago, 111. 1975 Class B: Howard M. Packard Vice Chairman, S. C. Johnson & Son, Inc., Racine, Wis. 1973 John T. Hackett Executive Vice President, Cummins Engine Company, Inc., Columbus, Ind. 1974 Oscar G. Mayer Chairman of the Board, Oscar Mayer & Company, Madison, Wis. 1975 Class C: John W. Baird President, Baird & Warner, Inc., Chicago, 111. 1973 W illiam H. Franklin1 Chairman of the Board, Caterpillar Tractor Co., Peoria, 111. 1974 Peter B. Clark2 Chairman of the Board, President, Publisher, The Evening News Association, Detroit, Mich. 1975 DETROIT BRANCH Appointed by Federal Reserve Bank: Ellis B. Merry Chairman of the Board, National Bank of Detroit, Mich. 1973 Harold A. Elgas President, Gaylord State Bank, Gaylord, Mich. 1974 Joseph B. Foster President, Chief Executive Officer, Ann Arbor Bank, Ann Arbor, Mich. 1975 R oland A. M ew hort Chairman, Manufacturers National Bank of Detroit, Mich. 1975 Appointed by Board of Governors: L. W m. Seidman Resident Partner, Seidman & Seidman, Grand Rapids, Mich. 1973 Tom Killefer Vice President, General Counsel, Chrysler Corporation, Detroit, Mich. 1974 W. M. Defoe1 Chairman of the Board, Defoe Shipbuilding Company, Bay City, Mich. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 233 District 8—FEDERAL RESERVE BANK OF ST. LOUIS Term expires Class A: Dec. 31 Bradford Brett President, The First National Bank of Mexico, Mo. 1973 Edwin S. Jones Chairman of the Board, First National Bank in St. Louis, Mo. 1974 Wm. E. W eigel Executive Vice President, 1st National Bank and Trust Company, Centralia, 111. 1975 Class B: Fred I. Brown, Jr. President, Arkansas Foundry Company, Little Rock, Ark. 1973 James M. Tuholski President, Mead Johnson & Company, Evansville, Ind. 1974 Edward J. Schnuck Chairman of the Board, Schnuck Markets, Inc., Bridgeton, Mo. 1975 Class C: Harry M. Young, Jr. Melrose Farms, Herndon, Ky. 1973 Frederic M. Peirce1 Chairman of the Board, Chief Executive Officer, General American Life Insurance Company, St. Louis, Mo. 1974 Sam Cooper2 President, HumKo Products, Division of Kraftco Corporation, Memphis, Tenn. 1975 LITTLE ROCK BRANCH Appointed by Federal Reserve Bank: Edw ard M. Penick President, Chief Executive Officer, Worthen Bank & Trust Company, N.A., Little Rock, Ark. 1973 W ill H. Kelley Chairman, The State First National Bank of Texarkana, Ark. 1974 Thomas G. Vinson President, First National Bank, Batesville, Ark. 1975 Field W asson President, The First National Bank, Siloam Springs, Ark. 1975 Appointed by Board of Governors: Roland R. Remmel1 Chairman of the Board, Southland Building Products Co., Little Rock, Ark. 1973 Al Pollard President, Al Pollard & Associates, Little Rock, Ark. 1974 W. M. Pierce President, Arkansas Business Development Corporation, Little Rock, Ark. 1975 LOUISVILLE BRANCH Appointed by Federal Reserve Bank: Harold E. Jackson President, The Scott County State Bank, Scottsburg, Ind. 1973 Hugh M. Shwab Chairman of the Boards, First National Bank of Louisville, The Kentucky Trust Company, Louisville, Ky. 1974 Herbert J. Smith President, The American National Bank & Trust Company of Bowling Green, Ky. 1975 Tom G. Voss President, The Seymour National Bank, Seymour, Ind. 1975 Appointed by Board of Governors: W illiam H. Stroube1 Associate Dean, College of Science and Technology, Western Kentucky University, Bowling Green, Ky. 1973 James C. Hendershot President, Chief Operating Officer, Reliance Universal Inc., Louisville, Ky. 1974 James H. Davis Chairman, Chief Executive Officer, Porter Paint Company, Louisville, Ky. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 8—FEDERAL RESERVE BANK OF ST. LOUIS—Continued Term MEMPHIS BRANCH expires Dec. 31 Appointed by Federal Reserve Bank: J. J. W hite President, Helena National Bank, Helena, Ark. 1973 Garner L. Hickman Chairman, President, The First National Bank of Oxford, Miss. 1974 Ridley Alexander Chairman, The Second National Bank of Jackson, Tenn. 1975 C. Bennett Harrison Chairman of the Board, Union Planters National Bank of Memphis, Tenn. 1975 Appointed by Board of Governors: Alvin Huffman, Jr.1 President, Huffman Brothers Incorporated, Blytheville, Ark. 1973 C. W hitney Brown President, S. C. Toof & Company, Memphis, Tenn. 1974 Jeanne L. Holley Assistant Professor of Business Education and Office Adminis­ tration, University of Mississippi, University, Miss. 1975 District 9—FEDERAL RESERVE BANK OF MINNEAPOLIS Class A: Philip H. Nason Chairman of the Board, The First National Bank of Saint Paul, Minn. 1973 Roy H. Johnson President, The First National Bank of Negaunee, Mich. 1974 David M. Smith President, 1st National Bank, River Falls, Wis. 1975 Class B: Dale V. Andersen President, Mitchell Packing Company, Inc., Mitchell, S.D. 1973 John H. Bailey President, The Cretex Companies, Inc., Elk River, Minn. 1974 David M. Heskett President, Montana-Dakota Utilities Co., Bismarck, N.D. 1975 Class C: Russ B. Hart President, Hart-Albin Company, Billings, Mont. 1973 Bruce B. Dayton2 Chairman of the Board, Dayton Hudson Corporation, Minneapolis, Minn. 1974 David M. Lilly1 Chairman of the Board, The Toro Company, Minneapolis, Minn. 1975 HELENA BRANCH Appointed by Federal Reserve Bank: Richard D. Rubie President, Missoula Bank of Montana, Missoula, Mont. 1973 Robert I. Penner President, Citizens First National Bank, Wolf Point, Mont. 1974 John Reichel President, 1st National Bank in Bozeman, Mont. 1974 Appointed by Board of Governors: W illiam A. Cordingley1 Publisher, Great Falls Tribune, Great Falls, Mont. 1973 W arren B. Jones2 Secretary-Treasurer, Two Dot Land and Livestock Company, Harlowton, Mont. 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 235 District 10—FEDERAL RESERVE BANK OF KANSAS CITY Term expires Dec. 31 Class A: C. Mose M iller Chairman of the Board, President, The Farmers and Merchants State Bank, Colby, Kans. 1973 John A. O’Leary Chairman of the Board, The Peoples State Bank, Luray, Kans. 1974 Roger D. Knight, Jr. Chairman of the Board, United Banks of Colorado, Inc., Denver, Colo. 1975 Class B: Alfred E. Jordan Vice President, Trans World Airlines, Inc., Kansas City, Mo. 1973 Frank C. Love President, Kerr-McGee Corporation, Oklahoma City, Okla. 1974 Cecil O. Emrich President, C. O. Emrich Enterprises, Norfolk, Nebr. 1975 Class C: Robert T. Person2 President, Chairman of the Board, Public Service Company of Colorado, Denver, Colo. 1973 Robert W. W agstaff1 Chairman of the Board, President, Coca-Cola Bottling Company of Mid-America, Kansas City, Mo. 1974 Harold W. Anderson President, World Publishing Company, Omaha World Herald, Omaha, Nebr. 1975 DENVER BRANCH Appointed by Federal Reserve Bank: John W. Hay, Jr. President, Rock Springs National Bank, Rock Springs, Wyo. 1973 Dale R. Hinman Chairman of the Board, The Greeley National Bank, Greeley, Colo. 1974 Robert L. Tripp President, Albuquerque National Bank, Albuquerque, N.M. 1974 Appointed by Board of Governors: Maurice B. Mitchell1 Chancellor, University of Denver, Colo. 1973 Edward R. Lucero Executive Director, Colorado Economic Development Association, Denver, Colo. 1974 OKLAHOMA CITY BRANCH Appointed by Federal Reserve Bank: W. H. McDonald Chairman of the Executive Committee, The First National Bank and Trust Company of Oklahoma City, Okla. 1973 Hugh C. Jones Executive Vice President, The Bank of Woodward, Okla. 1974 Marvin Millard Chairman of the Board, National Bank of Tulsa, Okla. 1974 Appointed by Board of Governors: Joseph H. W illiams1 President, Chief Operating Officer, The Williams Companies, Tulsa, Okla. 1973 Harley Custer General Manager, Oklahoma Livestock Marketing Association, Oklahoma City, Okla. 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 10—FEDERAL RESERVE BANK OF KANSAS CITY—Continued Term OMAHA BRANCH expires Dec. 31 Appointed by Federal Reserve Bank: S. N. Wolbach President, The First National Bank of Grand Island, Nebr. 1973 Glenn Yaussi Chairman of the Board, National Bank of Commerce Trust & Savings, Lincoln, Nebr. 1973 Edward W. Lyman President, The United States National Bank of Omaha, Nebr. 1974 Appointed by Board of Governors: A. James Ebel1 Vice President, General Manager, Cornhusker Television Corporation, Lincoln, Nebr. 1973 Edward F. Owens President, Paxton & Vierling Steel Company, Carter Lake, Nebr. 1974 District 11—FEDERAL RESERVE BANK OF DALLAS Class A: J. V. Kelly Chairman of the Board, The Peoples National Bank of Belton, Tex. 1973 A. W. Riter, Jr. President, The Peoples National Bank of Tyler, Tex. 1974 Robert H. Stewart, III Chairman of the Board, First International Bancshares, Inc., Dallas, Tex. 1975 Class B: Carl D. Newton Chairman of the Board, Fox-Stanley Photo Products, Inc., San Antonio, Tex. 1973 Hugh F. Steen President, El Paso Natural Gas Company, El Paso, Tex. 1974 Thomas W. Herrick President, Mesa Agro Inc., Amarillo, Tex. 1975 Class C: John Lawrence2 Chairman of the Board, Dresser Industries, Inc., Dallas, Tex. 1973 Chas. F. Jones1 Dean, College of Business Administration, University of Houston, Tex. 1974 Charles T. Beaird Chairman of the Board, Beaird-Poulan, Shreveport, La. 1975 EL PASO BRANCH Appointed by Federal Reserve Bank: Cullen J. Kelly President, The First National Bank of Midland, Tex. 1973 W ayne Stewart President, First National Bank in Alamogordo, N.M. 1974 Reed H. Chittim President, Chief Executive Officer, First National Bank of Lea County, Hobbs, N.M. 1975 Sam D. Young, Jr. President, El Paso National Bank, El Paso, Tex. 1975 Appointed by Board of Governors: Herbert M. Schwartz1 President, Popular Dry Goods Co., Inc., El Paso, Tex. 1973 Gage Holland2 Gage Holland Ranch, Marathon, Tex. 1974 Allan B. Bowman President, General Manager, Banner Mining Company, Tucson, Ariz. 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 237 District 11—FEDERAL RESERVE BANK OF DALLAS—Continued Term expires HOUSTON BRANCH Dec. 31 Appointed by Federal Reserve Bank: Kline McGee Chairman of the Board, Southern National Bank of Houston, Tex. 1973 Seth W. Dorbandt Chairman of the Board, President, First National Bank in Conroe, Tex. 1974 Bookman Peters President, The City National Bank of Bryan, Tex. 1975 Nat S. Rogers President, First City National Bank of Houston, Tex. 1975 Appointed by Board of Governors: M. Steele Wright, Jr.1 Chairman of the Board, Texas Farm Products Company, Nacogdoches, Tex. 1973 R. M. Buckley2 President, Director, Eastex Incorporated, Silsbee, Tex. 1974 Alvin P. Thomas President, Prairie View A&M College, Prairie View, Tex. 1975 SAN ANTONIO BRANCH Appointed by Federal Reserve Bank: Ray M. Keck, Jr. Chairman of the Board, President, Union National Bank of Laredo, Tex. 1973 Leon Stone President, The Austin National Bank, Austin, Tex. 1974 Richard W. Calvert President, National Bank of Commerce of San Antonio, Tex. 1975 W. O. Roberson President, First National Bank at Brownsville, Tex. 1975 Appointed by Board of Governors: Irving A. Mathews1 Chairman of the Board, Chief Executive Officer, Frost Bros., Inc., San Antonio, Tex. 1973 Marshall Boykin, III2 Partner, Wood, Boykin & Wolter, Corpus Christi, Tex. 1974 P. J. Morales, Jr. Executive Vice President, General Manager, Morales Feedlots, Inc., Devine, Tex. 1975 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO Class A: A. W. Clausen President, Chief Executive Officer, Bank of America NT&SA, San Francisco, Calif. 1973 Carl E. Schroeder President, The First National Bank of Orange County, Orange, Calif. 1974 James E. Phillips President, First National Bank in Port Angeles, Wash. 1975 Class B: Marron Kendrick President, Chairman of the Board, Schlage Lock Company, San Francisco, Calif. 1973 Charles R. Dahl President, Chief Executive Officer, Crown Zellerbach, San Francisco, Calif. 1974 Joseph Rosenblatt Honorary Chairman of the Board, The Eimco Corporation, Salt Lake City, Utah 1975 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN □ MARCH 1973 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued Term expires Dec. 31 Class C: O. Meredith W ilson1 President, Director, Center for Advanced Study in the Behavioral Sciences, Stanford, Calif. 1973 Mas Oji President, Oji Bros. Farm, Inc., Yuba City, Calif. 1974 Joseph F. Alibrandi2 President, Whittaker Corporation, Los Angeles, Calif. 1975 LOS ANGELES BRANCH Appointed by Federal Reserve Bank: Carl E. Hartnack President, Security Pacific National Bank, Los Angeles, Calif. 1973 Linus E. Southwick President, Valley National Bank, Glendale, Calif. 1973 Rayburn S. Dezember Chairman of the Board, President, American National Bank, Bakersfield, Calif. 1974 W. Gordon Ferguson President, National Bank of Whittier, Calif. 1975 Appointed by Board of Governors: Edward A. Sloan1 President, Sloan’s Dry Cleaners, Los Angeles, Calif. 1973 Ruth Handler President, Mattel, Inc., Hawthorne, Calif. 1974 Leland D. Pratt President, Kelco Company, San Diego, Calif. 1975 PORTLAND BRANCH Appointed by Federal Reserve Bank: LeRoy B. Staver Chairman of the Board, Chief Executive Officer, United States National Bank of Oregon, Portland, Oreg. 1973 Frank L. Servoss President, Crater National Bank*of Medford, Oreg. 1974 James H. Stanard Vice President, First National Bank of McMinnville, Oreg. 1974 Appointed by Board of Governors: Frank Anderson1 Farmer, Heppner, Oreg. 1973 John R. Howard President, Lewis and Clark College, Portland, Oreg. 1974 SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank: Joseph Bianco Chairman of the Board, President, Bank of Idaho, Boise, Idaho 1973 Roderick H. Browning President, Bank of Utah, Ogden, Utah 1974 Roy W. Simmons President, Zions First National Bank, Salt Lake City, Utah 1974 Appointed by Board of Governors: Theodore C. Jacobsen1 Chairman of the Board, Jacobsen Construction Company, Inc., Salt Lake City, Utah 1973 Sam H. Bennion Secretary-Treasurer, V-l Oil Company, Inc., and Weathertite Block Co., Idaho Falls, Idaho 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DIRECTORS OF FEDERAL RESERVE BANKS AND BRANCHES 239 District 12—FEDERAL RESERVE BANK OF SAN FRANCISCO—Continued Term SEATTLE BRANCH expires Dec. 31 Appointed by Federal Reserve Bank: Joseph C. Baillargeon Chairman of the Board, Chief Executive Officer, Seattle Trust & Savings Bank, Seattle, Wash. 1973 Harry S. Goodfellow President, Old National Bank of Washington, Spokane, Wash. 1974 Robert C. W hitwam President, American National Bank of Edmonds, Wash. 1974 Appointed by Board of Governors: Thomas T. Hirai1 President, Quality Growers Company, Inc., Woodinville, Wash. 1973 C. Henry Bacon, Jr. Vice Chairman of the Board, Simpson Timber Company, Seattle, Wash. 1974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF Federal Reserve Bank of San Francisco, effective March 2. At that time, the rate was 5V2 per cent The Board of Governors of the Federal Reserve at all Reserve Banks. System has announced the following changes and This action was taken in recognition of the appointments, effective January 7, 1973: recent rise in short-term open market interest rates Joseph R. Coyne, who has served as a Special which is an outgrowth of strong credit demands Assistant to the Board since 1968, has been named generated by continued rapid economic expansion. an Assistant to the Board. In this situation and in view of recent develop­ Robert S. Plotkin, who was appointed an Ad­ ments in the foreign exchange markets, the Board viser in the Legal Division in January 1972, has concluded that an increase in the discount rate— to been designated an Assistant General Counsel. bring it into closer alignment with short-term rates Griffith L. Garwood, Chief of the Truth-ingenerally— was called for in furtherance of the Lending Section, has been appointed an Adviser objectives of economic stabilization. in the Division of Supervision and Regulation. Mr. Garwood, who received an LL.B. degree from the CHANGE IN LABOR RELATIONS PANEL University of Michigan Law School, joined the Board’s staff in 1968. The Board of Governors on March 6, 1973, an­ John Nicoll, who was appointed to the Board’s nounced a change in membership of the Federal staff in June 1972, has been named an Assistant Reserve System Labor Relations Panel. Effective General Counsel. A graduate of Yale Law School, immediately, Governor Jeffrey M. Bucher has Mr. Nicoll was with the Empire National Bank, been designated a Panel member replacing Gover­ Newburgh, New York, prior to his employment nor George W. Mitchell. at the Board. The Federal Reserve System Labor Relations Andrew F. Oehmann, who joined the Board’s Panel, formed in January 1970 pursuant to Section staff in August 1972, has been appointed Special J of the Board’s Statement of Policy on Unioniza­ Assistant to the General Counsel. A graduate of tion and Collective Bargaining for the Federal Georgetown University Law School, Mr. Oeh­ Reserve Banks, is composed of one public mann has engaged in the private practice of law member, Mr. William E. Simkin, who is the Panel in Washington, D .C., and was with the Department Chairman, and two members of the Board of of Justice for a number of years. Governors, Governor J. Dewey Daane and Gov­ In addition the Board has named Chester B. ernor Bucher. Feldberg, who is on loan to the Board, as an Assistant Secretary in the Office of the Secretary AUTO STATISTICS REVISION, 1960-72 on a temporary basis, effective March 6. He re­ places Michael A. Greenspan who resigned. The automobile credit statistics published in the Federal Reserve release G.26 (volume of auto credit extended, average size of note, and number CHANGE IN THE DISCOUNT RATE financed) have been revised for the period The Board of Governors on February 23, 1973, 1960-72. The revision reflects benchmark revi­ approved actions by the directors of the Federal sions in the extensions data between 1965 and Reserve Banks of New York, Philadelphia, St. 1970 and the inclusion of a trading-day adjustment Louis, and Kansas City increasing the discount in the seasonally adjusted series. The revision also rates of those Banks from 5 per cent to 5l/z per reflects discontinuance of an ad hoc adjustment cent, effective February 26. that had been used to eliminate refinanced paper A similar increase was approved for the Fed­ from the data. Tables of the revised data may be eral Reserve Banks of Cleveland, Atlanta, Rich­ obtained from the Mortgage, Agricultural, and mond, Dallas, Chicago, and Minneapolis, effec­ Consumer Finance Section, Division of Research tive February 27; for the Federal Reserve Bank and Statistics, Board of Governors of the Federal of Boston, effective February 28; and for the Reserve System, Washington, D.C. 20551. 240 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication March 16 Industrial production and nonfarm employment EMPLOYMENT advanced further in February. Retail sales declined Nonfarm payroll employment rose substantially in and the wholesale price index rose. Commercial February with strong gains in construction, durable bank credit, time and savings deposits, and the goods manufacturing, trade, and services. The money stock increased. Between mid-February average factory workweek rebounded to 41.0 and mid-March, yields in the money and security hours following declines in the two previous markets rose. months. The unemployment rate edged up 0.1 percentage point to 5.1 per cent, as civilian labor INDUSTRIAL PRODUCTION force growth slightly outpaced employment gains. Industrial production increased 0.8 per cent in February following a 0.6 per cent rise in January. RETAIL SALES At 120.8 per cent (1967=100), the total index in The value of retail sales declined 1 per cent in February was 9.8 per cent above a year earlier. February but was almost 14 per cent above a year Output gains were mainly in consumer goods and earlier, according to the advance report. Sales at business equipment. durable goods stores were down somewhat and sales at nondurable goods stores were unchanged. INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 WHOLESALE AND CONSUMER PRICES The wholesale price index, seasonally adjusted, increased 1.6 per cent between January and Feb­ ruary. Farm and food products rose 3.2 per cent and industrial commodities rose 1.0 per cent as prices of both finished goods and industrial mate­ rials increased sharply. The consumer price index rose 0.5 per cent, seasonally adjusted, in January as food costs spurted up 1.9 per cent. Other commodity prices were unchanged and service costs advanced a moderate 0.2 per cent. The January index was 3.7 per cent above a year earlier. 1973 1967 F.R. indexes, seasonally adjusted. Latest figures: February. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit, after adjustment for Auto assemblies rose 4 per cent and were at transfers of loans between banks and their affili­ an annual rate of 10.1 million units. March pro­ ates, continued to rise rapidly in February, in­ duction schedules indicate little change from the creasing at an annual rate of over 20 per cent. February level. Output of furniture and most other Loan growth was exceptionally sharp and re­ home goods rose in February and production of flected, in particular, further heavy borrowing by household appliances was maintained at record businesses. Consumer and real estate loans contin­ levels. Output of nondurable consumer goods in­ ued strong and loans to nonbank financial institu­ creased further. Gains in production of business tions also rose. Banks reduced substantially their equipment were widespread and output of defense holdings of U.S. Treasury securities and added equipment also advanced. Production of industrial only nominally to their holdings of other securi­ materials rose only marginally. ties. 241 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN □ MARCH 1973 The narrowly defined money stock increased at SECURITY MARKETS an annual rate of 6.1 per cent in February follow­ ing little change in January. Growth in time and Treasury bill rates rose by about 60 to 90 basis savings deposits other than large negotiable points between mid-February and mid-March. The CD’s— at an annual rate of 5.7 per cent— was well 3-month bill was bid at around 6.05 per cent in below the pace of other recent months reflecting the middle of March, compared with about 5.40 a substantial reduction in the rate of inflow of per cent a month earlier. Yields on intermeconsumer type time and savings deposits. Sales diate-term Treasury coupon issues advanced by of large CD’s, however, were exceptionally heavy some 25 to 35 basis points, while long-term Gov­ in February and outstanding holdings rose $4.5 ernment bond rates rose by 5 to 10 basis points. billion. Yields on recently offered and new long-term Net borrowed reserves averaged about $1,380 corporate and municipal securities increased on million over the 4 weeks ending February 28 balance from mid-February to mid-March on a compared with $940 million in January. Member relatively light volume of offerings. bank borrowings increased further and excess re­ Common stock prices declined on moderate serves declined somewhat. volume during the same period. PRICES INTEREST RATES Wholesale 1967=100 Consumer PER CENT 1967 1969 1971 1973 1967 1969 1971 1973 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, January; Wholesale, February. years or more and for 90-day Treasury bills. Latest figures: week ending Mar. 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE U.S. STATISTICS: A 4 Member bank reserves, Federal Reserve Bank credit, and related items A 8 Federal funds—Major reserve city banks A 9 Reserve Bank interest rates A 10 Reserve and margin requirements A 11 Maximum interest rates; bank deposits A 12 Federal Reserve Banks A 14 Open market account A 15 Reserve Banks; bank debits A 16 U.S. currency A 17 Money stock A 18 Bank reserves; bank credit A 19 Banks and the monetary system A 20 Commercial banks, by classes A 26 Weekly reporting banks A 31 Business loans of banks A 32 Demand deposit ownership A 33 Loan sales by banks A 33 Open market paper A 34 Interest rates A 37 Security markets A 38 Stock market credit A 39 Savings institutions A 41 Federally sponsored credit agencies A 42 Federal finance A 44 U.S. Government securities A 47 Security issues A 50 Business finance A 51 Real estate credit A 56 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN □ MARCH 1973 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 Central bank rates A 95 Open market rates; arbitrage on Treasury bills A 96 Gold reserves of central banks and governments A 97 Gold production TABLES PUBLISHED PERIODICALLY: Number of banking offices: A 98 Analysis of changes A 99 On, and not on, Federal Reserve Par List Banking and monetary statistics, 1972: A 100 Money market rates A 101 Bond and stock yields A 102 Member bank reserves, Federal Reserve Bank credit, and related items A 104 Reserves and borrowings of member banks A 106 Assets and liabilities of large commercial banks A 111 “Term” commercial and industrial loans of large commercial banks A 111 Commercial and industrial loans of large commercial banks A 114 Loans sold outright by commercial banks A 124 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rP Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 A.R. Annual rate when 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) also include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” A heavy vertical rule is used in the following in­ also includes municipalities, special districts, and other stances: (1) to the right (to the left) of a total when political subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance sheet, last) provide (1) the source or sources of data that do (3) to the left of memorandum items. not originate in the System; (2) notice when figures “U.S. Govt, securities” may include guaranteed are estimates; and (3) information on other charac­ issues of U.S. Govt, agencies (the flow of funds figures teristics of the data. TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Semiannually Issue Page Annually—Continued Issue Page Banking offices: Banks and branches, number, Analysis of changes in number Mar. 1973 A-98 by class and State .................... Apr. 1972 A-98—A-99 On, and not on, Federal Reserve Flow of funds: Par List, number .................... Mar. 1973 A-99 Assets and liabilities: 1960-71 .................................... June 1972 A-73.10—A-73.21 Annually Flows: Bank holding companies: 1965-71 data .......................... Nov. 1972 A-72—A-73.9 List, Dec. 31, 1971 .................. June 1972 A-98 Income and expenses: Banking offices and deposits of Federal Reserve Banks ........... Feb. 1973 A-98—A-99 group banks, Dec. 31, 1971 .. Aug. 1972 A-101 Insured commercial banks .... May 1972 A-98—A-99 Member banks: Banking and monetary statistics: Calendar year ....................... May 1972 A-98—A-107 1971 ................................................ Mar. 1972 A-98—A-110 Income ratios ....................... May 1972 A-108—A-113 July 1972 A-98—A-101 Operating ratios ................... July 1972 A-102—A-107 1972 ................................................ Mar. 1973 A-100—A-114 Stock market credit ...................... Jan. 1973 A-98—A-99 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases ....................................................................... December 1972 A-109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ MARCH 1973 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 Total B o ou u g t­ ht u r c H e n h p e d a l u s e d r e r ­ Loans Float 2 as O F se t . h R ts e . r 3 Total 4 s G to o c ld k c D a e R c r r t a c i i g w f o i h u c i t n a n s t g t e . r s e o t c i a n u u n n c r g t d y - ­ ­ right agree­ ment Averages of daily figures 1939—Dec.............................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.............................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec.............................. 23,708 23,708 381 652 24,744 20|047 4,322 1950—Dec.............................. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 I960—Dec.............................. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—Dec.............................. 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1967—Dec.............................. 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—Dec.............................. 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—Dec............................... 57,500 57,295 205 1,086 3,235 2*204 64,100 10 367 6,841 1970—Dec............................... 61,688 61,310 378 321 3,570 1,032 66,708 11’105 400 7,145 1971—Dec............................... 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 1972—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.............................. 71,858 71,732 126 438 3,345 957 76,676 10,410 400 8,137 Sept.............................. 70,252 70,135 117 514 3,723 894 75,451 10,410 400 8,183 Oct................................ 71,359 71,194 165 574 4,112 1,202 77,331 10,410 400 8,230 71,112 70,815 297 606 2,966 1,170 75,959 10,410 400 8,278 Dec............................... 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 1973—Jan................................ 72,194 71,711 483 1,165 3,267 1,329 78,063 10,410 400 8,321 Feb .p........................... 72,307 72,082 225 1,593 2,525 1,004 77,569 10,410 400 8,353 Week ending— 1972—Dec. 6....................... 71,335 70,788 547 589 2,503 1,062 75,582 10,410 400 8,283 13....................... 70,910 70,547 363 805 3,016 1,083 75,903 10,410 400 8,290 20....................... 71,399 71,014 385 1,221 3,217 1,144 77,088 10,410 400 8,294 27....................... 70,646 70,646 1,118 4,636 1,186 77,656 10,410 400 8,299 1973—Jan. 3....................... 71,737 71,150 587 1,751 4,046 1,255 78,912 10,410 400 8,303 10....................... 71,629 71,573 56 688 4,557 1,276 78,233 10,410 400 8,314 17....................... 71,949 71,555 394 1,298 3,773 1,311 78,434 10,410 400 8,319 24....................... 72,092 71,555 537 1,097 2,830 1,383 77,503 10,410 400 8,326 31....................... 72,957 72,343 614 1,309 1,653 1,373 77,411 10,410 400 8,331 Feb. 7....................... 71,973 71,905 68 1,232 2,596 1,322 77,207 10,410 400 8,343 14....................... 72,058 71,884 174 1,991 2,170 1,337 77,664 10,410 400 8,347 21*..................... 72,569 72,083 486 1,670 2,716 662 77,862 10,410 400 8,352 28 p..................... 72,629 72,457 172 1,479 2,701 694 77,626 10,410 400 8,371 End of month 1972—Dec............................... 71,230 6 71,119 111 1,981 3,974 1,260 78,551 10,410 400 8,313 1973—Jan................................ 73,394 6 72,444 950 1,310 2,383 1,339 78,567 10,410 400 8,343 Feb .p........................... 73,947 6 73,286 661 1,565 2,483 735 78,963 10,410 400 8,386 Wednesday 1972—Dec. 6....................... 70,741 6,7 70,231 510 274 3,702 1,149 75,947 10,410 400 8,285 13....................... 72,867 « 71,180 1,687 995 4,190 1,144 79,363 10,410 400 8,294 20....................... 71,374 6,7 70,741 633 1,442 4,063 1,175 78,212 10,410 400 8,294 27....................... 69,545 6,7 69,545 1,435 4,103 1,219 76,371 10,410 400 8,302 1973—Jan. 3....................... 73,615 6 71,361 2,254 891 4,146 1,274 80,119 10,410 400 8,305 10..................... 71,509 6 71,509 830 4,627 1,302 78,344 10,410 400 8 316 17....................... 72,275 6 71,616 659 1,072 4,399 1,380 79,274 10,410 400 8,320 24....................... 73,298 6 71,768 1,530 2,008 2,899 1,522 79,868 10,410 400 8,328 31....................... 73,394 6 72,444 950 1,310 2,383 1,339 78,567 10,410 400 8,343 Feb lp..................... 70,399 6,7 70,399 967 3,265 1,304 76 016 10 410 400 8 347 14 p..................... 72,519 6 71,884 635 2,766 2,423 1,397 79,335 10,410 400 8,347 21*..................... 72,116 6,7 71,928 188 393 2,836 671 76,195 10,410 400 8,355 28*..................... 73,947 6 73,286 661 1,565 2,483 735 78,963 10,410 400 8,386 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 r c C t e c u i i n i o u n l r c a n r ­ y ­ ­ T h c i u r o n a e r g l s a y d h s s ­ ­ T u re r a y s­ with r e F s F e . e i R o g rv r . n ­ e B s, a nks Other2 c O o F u a t . c h n R ­ e t . s r 3 c b a O F i a p l l t . n i i i h R a t t d i ­ e a e . r l s 3 B W F a . n R it k h . s re c r C s e a o e n n i u r n c d v r * y ­ es Total8 Period or date Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .......................1939—Dec. 10 985 2,189 592 1,531 292 12,812 12,812 .......................1941—Dec. 28,452 2,269 625 1.247 493 16,027 16,027 .......................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .......................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .....................1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 .....................1965—Dec. 47,000 1,428 902 150 451 -204 20,753 4,507 25,260 .....................1967—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .....................1968—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .......................1969—Dec. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 ......................1970—Dec. 61,060 453 1,926 290 728 2,287 25,653 5,676 31,329 ......................1971—Dec. 59,681 436 2,421 172 683 2,273 26,374 5,548 31,922 ......................1972—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 27,454 5,694 33,148 .................................Aug. 62,913 320 938 190 619 2,240 27,224 5,779 33,003 .................................Sept. 63,385 362 1,369 200 631 2,336 28,088 5,715 33,803 .................................Oct. 64,543 375 1,321 195 604 2,378 25,631 5,813 831,774 .................................Nov.8 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 .................................Dec. 65,274 364 2,033 294 644 2,365 26,220 6,463 32,962 .....................1973—Jan. 64,564 382 2,956 302 645 2,482 25,401 6,032 31,712 .................................Feb.* Week ending— 65,175 349 1,098 241 611 2,510 24,691 5,868 831,009 ...............1972—Dec. 6 8 65,874 356 1,350 252 662 2,318 24,191 6,427 31,068 .....................................13 66,191 352 1,389 278 578 2,335 25,069 5,889 31,408 .......................................20 66,575 346 1,689 280 591 2,385 24,899 6,092 31,441 .......................................27 66,553 346 1,715 322 767 2,213 26,109 6,216 32,604 .............. 1973—Jan. 3 66,023 350 1,707 287 673 2,254 26,064 6,163 32,506 .......................................10 65,493 366 1,664 291 606 2,326 26,817 6,913 34,009 .......................................17 64,809 372 2,303 306 614 2,411 25,823 6,409 32,511 .......................................24 64,229 377 2,671 278 636 2,535 25,825 6,452 32,556 .......................................31 64,277 378 3,018 277 639 2,598 25,175 6,380 31,834 ...........................Feb. 7 64,673 378 3,233 290 614 2,396 25,238 6,296 31,813 .......................................14 64,743 385 2,501 270 657 2,430 26,038 5,659 31,976 .......................................21* 64,565 389 3,071 372 671 2,506 25,234 5,793 31,306 .......................................28* End of month 66,516 345 1,855 325 840 2,143 25,647 6,216 832,142 .....................1972—Dec. 8 64,312 372 2,747 310 674 2,576 26,727 6,452 33,458 .....................1973—Jan. 64,692 390 2,073 455 633 2,574 27,342 5,793 33,414 .................................Feb.* Wednesday 65,682 361 1,188 284 547 2,590 24,390 5,868 830,708 ...............1972—Dec. 6 8 66,237 359 1,525 259 612 2,318 27,157 6,427 34,034 .......................................13 66,545 359 1,145 271 546 2,364 26,087 5,889 32,426 ......................................20 66,990 361 2,264 296 657 2,399 22,516 6,092 29,058 ......................................27 66,526 343 1,048 320 713 2,252 28,033 6,216 34,528 ...............1973—Jan. 3 65,933 363 1,961 305 845 2,270 25,793 6,163 32,235 .....................................10 65,313 376 1,842 288 633 2,367 27,586 6,913 34,778 ......................................17 64,603 386 2,207 264 593 2,459 28,494 6,409 35,182 .....................................24 64,312 372 2,747 310 674 2,576 26,727 6,452 33,458 ......................................31 64,612 385 3,253 245 651 2,612 23,415 6,380 30,074 ............................Feb. 7* 64,923 388 2,809 332 615 2,468 26,958 6,296 33,533 .....................................14* 64,868 396 3,358 275 681 2,461 23,321 5,659 29,259 .....................................21* 64,692 390 2,073 455 633 2,574 27,342 5,793 33,414 .....................................28* 1 Includes Federal agency issues held under repurchase agreements as thereafter. Beginning with Jan. 1963, figures are estimated except for of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, weekly averages. Beginning Sept. 12, 1968, amount is based on close- 1971. of-business figures for reserve period 2 weeks previous to report date. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 6 Includes securities loaned—fully secured by U.S. Govt, securities 1961 Bulletin, p. 164. pledged with F.R. Banks. 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. 7 Reflects securities sold, and scheduled to be bought back, under liabilities and capital” are shown separately; formerly, they were matched sale/purchase transactions. netted together and reported as “Other F.R. accounts.” 8 Beginning with week ending Nov. 15, 1972, includes $450 million of 4 Includes industrial loans and acceptances until Aug. 21, 1959, when reserve deficiencies on which F.R. Banks are allowed to waive penalties industrial loan program was discontinued. For holdings of acceptances for a transition period in connection with bank adaptation to Regulation J on Wed. and end-of-month dates, see tables on F.R. Banks on following as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies Digitized fopra gFeRs. ASSeeE aRls o note 2. included are (beginning with first statement week of quarter): Ql, $279 http://fraser.s5t lPoaurtis afellodw.oerdg /a s reserves Dec. 1, 1959—Nov. 23, 1960; all allowed million. Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ MARCH 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks 3 All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ r i o n w gs ­ F r r e e ­ e r i o n w gs ­ F r r e e ­ e r i o ng w s ­ Free T he o l t d al 1 qu R ir e e ­ d; Excess1 B F a a . n R t k . s serves i T h o el t d al qu R ir e e ­ d2 Excess B F a . a n R t k . s serves T h o e t l a d l qu R ir e e ­ d Excess B F a . a n R t k . s 1939-Dec.......... 11,473 6,462 5,011 3 5,008 5.623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec.......... 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1.143 848 295 295 1945—Dec.......... 16,027 14.536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec.......... 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1.199 1,191 3 1960—Dec.......... 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 1965—Dec.......... 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1.143 1,128 15 23 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—De c 31,329 31,164 165 107 58 5.774 5,749 25 35 -10 1,426 1,425 1 -7 1972—Fe............b 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......... 33,148 32,893 255 438 -183 6,000 5,994 6 116 -110 1.510 1,500 10 11 -1 Sept......... 33,003 32,841 162 514 -352 5,981 5,952 29 136 -107 1,512 1,513 -1 12 -13 Oct.......... 33,803 33,556 247 574 -327 6,148 6,087 61 59 2 1,564 1,542 22 45 -23 Nov.1.... 31,774 31,460 314 606 -292 5,927 5.923 4 64 -60 1,438 1,452 -14 19 -33 Dec......... 31,353 31,134 219 1,049 -830 6,005 6,025 -20 301 -321 1,492 1,479 13 55 -42 1973—Ja n 32,962 32,620 342 1,165 -823 6,535 6,440 95 193 -98 1,563 1,561 2 108 -106 Feb.?.... 31,712 31.537 175 1,593 -1,418 6,128 6,142 -14 324 -338 1,486 1,499 -13 105 -118 Week ending— 1972—Feb. 2., 32,435 32,190 245 16 229 5.936 5,880 56 56 1,460 1,451 9 9 9.... 31,892 31,842 50 42 8 5,733 5,825 -92 22 -114 1,439 1,445 -6 -6 16.... 32,257 31,946 311 18 293 6,078 5,895 183 183 1,450 1,466 -16 -16 23.... 31,823 31,693 130 14 116 5,686 5,789 -103 -103 1,453 1,427 26 26 Aug. 2.... 33,139 32,897 242 363 -121 6,052 6,051 1 144 -143 1,485 1,498 -13 11 -24 9.... 33,133 33,003 130 287 -157 6.037 6,038 -1 39 -40 1,533 1.518 15 35 -20 16.... 33,326 33,072 254 382 -128 6,138 6,102 36 76 -40 1,503 1.516 -13 -13 23.... 32,822 32,782 40 348 -308 5,860 5,935 -75 79 -154 1,497 1,485 12 -12 30.... 32,978 32,751 227 477 -250 5,986 5,901 85 86 -1 1,472 1,482 -10 -10 Sept. 6___ 33,362 32,566 796 837 -41 6,213 5,885 328 260 68 1,568 1,488 80 4 76 13.... 32,520 32,635 -115 149 -264 5,866 5,949 -83 -83 1,483 1.516 -33 4 -37 20.... 33,017 32,811 206 717 -511 6,032 5,981 51 345 -294 1,557 1.528 29 28 1 27.... 33,053 33,016 37 550 -513 5,870 5,919 -49 59 -108 1.465 1.497 -32 17 -49 Oct. 4.. .. 33,731 33,501 230 436 -206 6,154 6,107 47 1,589 1,563 26 39 -13 11.. .. 33,710 33,352 358 535 -177 6,100 6,088 12 -24 1.570 1,547 23 77 -54 18.... 34,098 33,977 121 434 -313 6,312 6,295 17 17 1,560 1,591 -31 17 -48 25.... 33.555 33,405 150 765 -615 5.937 5,976 -39 185 -224 1,526 1,501 25 62 -37 Nov. 1___ 33,704 33,499 205 555 -350 6,002 5,964 38 2 36 1,499 1,514 -15 7 -22 33,694 33,570 124 959 -835 6.037 6,069 -32 192 -224 1,546 1,526 20 31 -11 151. 32,132 31,346 786 494 292 6,267 6,071 196 196 1.465 1.476 -11 11 -22 22.. 30,539 30,350 189 419 -230 5,845 5,863 -18 ” ‘i -19 1,421 1,395 26 15 11 29.. 30,728 30,388 340 572 -232 5,709 5,683 26 80 -54 1,374 1,404 -30 23 -53 Dec. 6.. 31.009 30,673 336 589 -253 5,930 5.909 21 43 -22 1,487 1,454 33 75 -42 13.. 31,068 30,824 244 805 -561 5,933 5.909 24 206 -182 1,438 1,462 -24 13 -37 20.. 31,408 31,202 206 1,221 -1,015 6,111 6,094 17 422 -405 1.511 1.477 34 21 13 27.. 31,441 31,252 189 1,118 -929 5,929 5,966 -37 278 -315 1,475 1.474 1 1 1973—Jan. 3... 32,604 32,044 560 1,751 -1,191 6,535 6,386 149 713 -564 1.570 1,560 10 279 -269 10... 32,506 32,380 126 688 -562 6,431 6,452 -21 66 -87 1,555 1,565 -10 19 -29 17... 34.009 33,668 341 1,298 -957 6,829 6,783 46 201 -155 1,670 1,653 17 189 -172 24... 32,511 32,545 -34 1,097 -1,131 6,254 6,336 -82 260 -342 1,502 1.528 -26 19 -45 31... 32.556 32,103 453 1,309 -856 6,413 6,209 204 204 1.511 1,496 15 110 -95 Feb. 7.., 31,834 31,687 147 1,232 -1,085 6,048 6,126 -78 221 -299 1,491 1.498 -7 16 -23 14.. 31,813 31,625 188 1,991 -1,803 6,217 6,218 -1 709 -710 1,536 1.519 17 178 -161 21*>. 31,976 31,530 446 1,670 -1,224 6,364 6,216 148 155 -7 1,513 1,504 9 104 -95 28*\ 31,306 31,306 1,479 -1,479 5,909 6,007 -98 211 -309 1,444 1.474 -30 122 -152 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks 3 Country banks 3 Reserves Reserves Period Borrow­ Borrow­ ings at Free ings at Free F.R. reserves F.R. reserves T h o el t d al Required2 Excess Banks T h o e t l a d l Required 2 Excess Banks 3,140 1,953 1,188 1,188 1,568 897 671 3 668 ...........................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 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 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 12,198 12,233 -35 22 -57 11,931 11,757 174 42 132 ...........................1971—Dec. 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 12,980 12,908 72 134 -62 12,658 12,491 167 177 -10 12,805 12,807 -2 195 -197 12,705 12,569 136 171 -35 13,131 13,107 24 240 -216 12,960 12,820 140 230 -90 .......................................Oct. 12,057 12,058 -1 248 -249 12,022 12,027 -5 275 -280 ......................................Nov.1 11,729 11,771 -42 429 -471 11,699 11,859 -160 264 -424 12,237 12,270 -33 578 -611 12,348 12,349 -1 286 -287 ...........................1973—Jan. 11,828 11,859 -31 694 -725 11,991 12,037 -46 470 -516 ..................................—Feb.* Week ending— 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 12,583 12,537 46 46 12,101 11,940 161 14 147 ...........................................23 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 13,039 12,990 49 170 -121 12,646 12,464 182 136 46 ...........................................16 12,837 12,844 -7 95 -102 12,628 12,518 110 174 -64 ...........................................23 12,810 12,829 -19 120 -139 12,710 12,539 171 271 -100 12,914 12,720 194 329 -135 12,667 12,473 194 244 -50 12,614 12,744 -130 13 -143 12,557 12,426 131 132 -1 12,766 12,775 -9 241 -250 12,662 12,527 135 103 32 12,885 12,867 18 260 -242 12,833 12,733 100 214 -114 ...........................................27 13,058 13,057 1 125 -124 12,930 12,774 156 225 -69 13,174 13,033 141 229 -88 12,866 12,684 182 193 -11 ...........................................11 13,286 13,322 -36 233 -269 12,940 12,769 171 184 -13 ...........................................18 13,114 13,046 68 272 -204 12,978 12,882 96 246 -150 ...........................................25 13,061 13,042 19 261 -242 13,142 12,979 163 285 -122 .................................Nov. 1 13,009 13,049 -40 447 -487 13,102 12,926 176 289 -113 .............................................8 12,281 12,190 91 192 -101 11,669 11,609 60 291 -231 ...........................................151 11,328 11,415 -87 136 -223 11,495 11,677 -182 267 -449 ...........................................22 11,502 11,508 -6 226 -232 11,693 11,793 -100 243 -343 ...........................................29 11,502 11,544 -42 118 -160 11,640 11,766 -126 353 -479 11,632 11,666 -34 300 -334 11,615 11,787 -172 286 -458 ...........................................13 11,728 11,808 -80 514 -594 11,608 11,823 -215 264 -479 ...........................................20 11,793 11,874 -81 654 -735 11,794 11,938 -144 186 -330 ...........................................27 12,135 12,052 83 525 -442 12,085 12,046 39 234 -195 12,075 12,182 -107 420 -527 12,166 12,181 -15 183 -198 ...........................................10 12,718 12,742 -24 635 -659 12,513 12,490 23 273 -250 ...........................................17 12,061 12,226 -165 511 -676 12,415 12,455 -40 307 -347 ...........................................24 12,034 12,044 -10 806 -816 12,319 12,354 -35 393 -428 ...........................................31 11,883 11,906 -23 584 -607 12,133 12,157 -24 411 -435 ................................Feb. 7 11,822 11,897 -75 664 -739 11,959 11,991 -32 440 -472 ...........................................14 11,820 11,817 3 928 -925 12,000 11,993 7 483 -476 ...........................................21* 11,768 11,814 -46 598 -644 11,906 12,011 -105 548 -653 1 Beginning with week ending Nov. 15, 1972, includes $450 million of Note.—Averages of daily figures. Monthly data are averages of daily reserve deficiencies on which F.R. Banks are allowed to waive penalties figures within the calendar month; they are not averages of the 4 or 5 for a transition period in connection with bank adaptation to Regulation J weeks ending on Wed. that fall within the month. Beginning with Jan. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies 1964 reserves are estimated except for weekly averages. included are (beginning with first statement week of quarter): Ql, $279 Total reserves held: Based on figures at close of business through Nov. million. 1959; thereafter on closing figures for balances with F.R. Banks and open­ 2 Beginning Sept. 12, 1968, amount is based on close-of-business fig­ ing figures for allowable cash; see also note 3 to preceding table. ures for reserve period 2 weeks previous to report date. Required reserves: Based on deposits as of opening of business each day. 3 As of Nov. 9,1972, the definition of reserve city and country banks was Borrowings at F.R. Banks: Based on closing figures. changed (see July 1972 Bulletin, p. 626). The classifications employed here are the same as prior to the change in definition, so these series are continuous over time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ MARCH 1973 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions U R .S e . l G at o ed v t, t r s a e n c s u a r c it t i i e o s n d s e w al i e th rs 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 t B w F o i . n r R ­ g . s F i b e n N a d t n e e er t r k a ­ l S d u e r o f p i r c lu it s r P e e q a r u v o c i g f r e . e n d t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c o u P h f y a u n s i r n e e ­ s g t s o b S e a f a l n l l n i e k n e s s g t d L ea o t l o a e n r s s3 de f r B i a r o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Banks funds reserves banks trans. Total—46 banks 1973—Jan. 3........ -18 1,280 8,775 -10,073 70.5 14,258 5,483 4,302 9,956 1,181 2,307 199 2,108 10........ 42 266 10,887 - 11,111 77.7 15,949 5,062 4,181 11,768 881 2,221 93 2,128 17........ 30 765 10,551 -11,287 75.0 14,972 4,421 3,486 11,487 935 1,851 248 1,603 24........ -98 439 9,542 -10,079 71.5 14,217 4,675 3,644 10,573 1,031 1,724 455 1,268 31........ 195 479 7,879 -8,163 58.9 13,035 5,156 4,167 8,868 989 1,629 388 1,241 Feb. 7........ 73 424 8,743 -9,093 66.5 13,854 5,111 4,161 9,693 950 2,010 307 1,703 14........ 31 1,239 8,963 -10,171 73.3 15,062 6,099 4,390 10,672 1,709 1,628 362 1,266 21........ 257 710 8,957 -9,410 68.1 15,767 6,809 4,670 11,097 2,140 1,492 445 1,048 28........ 31 591 8,897 -9,457 69.7 14,394 5,497 4,131 10,263 1,366 2,069 373 1,696 8 in New York City 1973 Jan 3........ 136 626 4,467 -4,957 86.1 5,072 605 605 4,467 1,650 57 1,594 10. ... 61 66 5,184 -5 189 89.2 5,768 584 584 5,184 1 521 52 1,469 17 59 173 5 129 -5 243 85.8 5,646 517 517 5,129 1 ’207 84 1,123 24........ -29 252 4,199 -4,480 78.7 5,053 854 854 4,199 1 !l84 149 1,035 31 161 3,485 -3,324 59.7 4,572 1,086 1,068 3,504 19 1,112 145 967 Feb 7 g 172 3,523 -3,686 66.9 4,452 929 929 3,523 1 287 169 1,118 14........ — 5 677 4 906 — 4 906 87.4 5,211 988 987 4,224 1 157 220 937 21........ 155 100 4,582 -4,527 80.5 5,621 1,039 915 4,706 124 1,021 253 768 28........ -20 138 3,470 -3,628 67.0 4,478 1,008 908 3,570 99 1,391 247 1,144 38 outside New York City 1973—Jan. 3........ -154 655 4,307 -5,116 60.0 9,186 4,879 3,697 5,489 1,181 656 142 515 10 -20 200 5,703 -5,923 69.8 10,181 4,478 3,597 6,584 881 700 41 659 17 -30 593 5,422 -6,044 67.7 9,326 3,904 2,969 6,357 935 644 164 480 24........ -69 187 5,343 -5,599 66.6 9,164 3,821 2,790 6,374 1,031 540 306 234 31....... 34 479 4,394 -4,839 58.4 8,464 4,070 3,100 5,364 970 517 243 274 Feb. 7........ 65 252 5,220 -5,407 66.1 9,402 4,182 3,232 6,170 950 724 139 585 14 36 562 4,740 -5,265 63.8 9,851 5,111 3,403 6,448 1,709 471 143 329 21........ 102 610 4,376 -4,883 59.5 10,146 5,770 3,755 6,391 2,016 472 192 280 28........ 50 453 5,427 -5,829 71.5 9,916 4,489 3,223 6,693 1,266 678 126 552 5 in City of Chicago 1973—jan 3........ 17 279 1,544 -1,805 124.2 2,067 523 460 1,607 63 164 164 10........ 4 18 1,997 - 2,012 138.1 2,837 840 801 2,035 38 174 174 17 12 189 2,023 - 2,200 142.9 2,690 667 627 2,063 40 175 175 24 — 7 18 2,176 - 2,202 155.3 2,692 515 489 2,203 27 165 165 31 4 99 1,558 -1,652 119.1 2,322 765 739 1,583 26 123 123 Feb 7........ 4 7 2,112 -2,115 152.1 2,746 635 635 2,112 128 128 14........ 21 163 2,314 -2 456 174.0 2,874 561 556 2,318 4 157 157 21........ 22 93 2,019 -2,089 149.4 2,798 780 767 2,032 13 227 227 28. ... -11 107 2,140 -2,258 165.2 2,819 679 679 2,140 320 320 33 others 1973—Jan. 3........ -171 376 2,764 -3,311 46.8 7,119 4,355 3,237 3,882 1,118 492 142 350 10 -23 182 3,706 -3,911 55.7 7,345 3,639 2,796 4,549 843 526 41 485 17....... -42 403 3,399 -3,844 52,0 6,637 3,238 2,342 4,295 895 468 164 364 24........ -62 169 3,167 -3,398 48.6 6,473 3,306 2,301 4,171 1,004 375 306 69 31 30 380 2,837 -3,186 46.2 6,142 3,305 2,360 3,781 945 393 243 151 Feb. 7........ 61 245 3,109 -3,292 48.5 6,656 3,547 2,598 4,058 950 596 139 457 14 16 399 2,426 -2,809 41.0 6,977 4,551 2,846 4,130 1,704 314 143 172 21 80 517 2,357 -2,793 41.1 7,347 4,990 2,988 4,359 2,003 245 192 53 28........ 62 346 3,287 -3,571 52.6 7,097 3,810 2,544 4,553 1,266 358 126 231 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b) 2 last par. Sec. 133 Federal Reserve Bank F R e a 1 b t 9 e . 7 2 3 o 8 n , Ef d fe a c t t e ive Pre ra v t i e ous R Fe a 1 b t 9 e . 7 3 2 o 8 n , Ef d fe a c t t e ive Pre ra v t i e ous F R e a 1 b 9 te . 7 2 3 o 8 n , Ef d fe a c t t e ive Pre r v at io e us Boston........... 51/i Feb. 28, 1973 5 6 Feb. 28, 1973 5% 4 7*4 Feb. 28, 1973 7 New York... 5*4 Feb. 26, 1973 5 6 Feb. 26, 1973 5% 7*4 Feb. 26, 1973 7 Philadelphia.. 5*4 Feb. 26, 1973 5 6 Feb. 26, 1973 5% 7*4 Feb. 26, 1973 7 Cleveland.... 5 *4 Feb. 27, 1973 5 6 Feb. 27, 1973 5 *4 7*4 Feb. 27, 1973 7 Richmond.... 5*4 Feb. 27, 1973 5 6 Feb. 27, 1973 5*4 4 7*4 Feb. 27, 1973 7 Atlanta.......... 5*4 Feb. 27, 1973 5 6 Feb. 27, 1973 5*4 4 7*4 Feb. 27, 1973 7 Chicago.......... 5% Feb. 27, 1973 5 6 Feb. 27, 1973 5*4 4 7*4 Feb. 27, 1973 7 St. Louis........ 5*4 Feb. 26, 1973 5 6 Feb. 26, 1973 5*4 4 7*4 Feb. 26, 1973 7 Minneapolis.. 5% Feb. 27, 1973 5 6 Feb. 27, 1973 51/2 4 7*4 Feb. 27, 1973 7 Kansas City.. 51/2 Feb. 26, 1973 5 6 Feb. 26, 1973 5*4 4 7*4 Feb. 26, 1973 7 Dallas............ 5% Feb. 27, 1973 5 6 Feb. 27, 1973 5*4 4 7*4 Feb. 27, 1973 7 San Francisco 5 Jan. 15,1973 4*4 5% Jan. 15, 1973 5 7 Jan. 15,1973 6*4 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for the bankers’ acceptances and of agricultural paper may have maturities not eight Reserve Banks so designated, a rate of 5*4 per cent was approved on over 6 months and 9 months, respectively. advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9,1972. See “Announcements” on p. 942 of the Oct. 1972 3 Advances to individuals, partnerships, or corporations other than Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954 1*4 1*4 1959—Mar. 6................... 2*4-3 3 1969—Apr. 4.......... 5*4-6 6 16.................... 3 3 8.......... 6 6 1955—Apr. 14............ 1*4-1% 1*4 May 29.................... 3 -31/2 3*4 15............ 1*4-1% 1% June 12.................... 3*4 3*4 May 2............ 1% 1% Sept. 11................... 3*4-4 4 1970—Nov. 11.......... 534-6 6 Aug. 4............ l%-2*4 1% 18................... 4 4 13.......... 534-6 5% 5............ l%-2*4 2 16.......... 534 5% N Se o p v t . . 1 1 1 9 2 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 * 2 4 - - % -2 2 H * * A 4 4 2 2 2 2 * * * 4 4 4 1 1 0 4 . . . . . . . .. .. . . . . . . . . . . . . . . . . .. .. . . . . . . . . 3 3 3 * * 3 4 4 - * - - 3 4 4 4 *4 4 3 3 3 * * 4 4 Dec. 1 4 1 1 . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . 5 5 * * 5 4 4 * - - 4 5 5 % % 5 5 5 * * % 4 4 23............ 2*4 2*4 Sept. 9.................... 3 3 1956— A A u p g r. . 2 2 3 1 1 4 0 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 V * % 3 4 4 - - - 3 3 3 2 2 3 3 3 % /4 1 1 9 9 6 6 4 3 — — N Ju o ly v . 2 2 3 1 4 0 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 3 * 1 - 4 / 3 2 - * 4 4 4 4 3 3 * * 4 4 1971—Jan. 2 2 1 1 8 2 9 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 * 5 5 4 - * - - 5 5 4 5 * % * 4 4 5 5 5 5 5 * * % 4 4 1957—Aug. 9............ 3 -3*4 3 Feb. 13.......... 4%-5 5 2 3 3*4 3*4 1965—Dec. 6.................... 4 -4*4 41/2 19.......... 434 4% N De o c v . . 1 2 5 . . . . . . . . . . . . . . . . . . . . . . . . 3 -3% 3 J'X 13.................... 4*4 4*4 July 16.......... 4%-5 5 1967—Apr. 7................... 4 -4V4 4 23.......... 5 5 1958—Jan. 22............ 2%-3 3 14.................... 4 4 Nov. 11.......... 4%-5 5 2 4 2%-3 2% Nov. 20................... 4 -4*4 4*4 19.......... 4% 4% A M p a r r . . 2 1 1 7 1 8 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 l% 1 * / 2 4 4 - V - - 2 2 3 4 * % 4 2 2 2 l * * * 3/ 4 4 4 4 1968—Mar. 2 2 1 7 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4* 4 5 4 * -5 4 4 4 5 * *4 4 Dec. 2 1 1 7 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 * * 4 4 4 * - - 4 4 4 % % 4 4 4 * * % 4 4 S A M e u a p g y t . . 1 1 9 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l l % % 1 - - % 2 2 2 1 1 % % 26................... 5 5 *4 5 - - * 5 5 4 1 * / 4 2 5 5 5 * * * 4 4 4 1973—J F a e n b . . 2 1 6 5 . . . . . . . . . . . . . . . . . . . 5 5 -5*4 5 5 *4 Oct. 2 23 4 . . . . . . . . . . . . . . . . . . . . . . . . 2 2 -2*4 2 2 Dec. 3 1 0 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 * 5 4 * - 4 5*4 5 5 1 * / 4 4 In effect Feb. 28,1973 5 -5*4 5*4 Nov. 7............ 2*4 21/2 20.................... 5*4 5*4 Note.—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and Monetary Statistics, 1943, pp. 439-42, and Supplement to Section 12, p. 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ MARCH 1973 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.) Time 3 Net demand 2 (all classes of Net demand 2,4 Time 3 banks) Effective Effective date 1 Reserve city Other Other time date Other time Sav­ 0-2 2-10 10-100100-400 Over Sav­ Over Over ings Over 400 5 ings Over 0-5 5 0-5 5 0-5 5 0-5 5 In effect 1972—Nov. 9....... 8 10 12 6 16% 17% 73 73 75 Jan 1 1963........ 16% 12 d Nov. 16 13 1966—July 14, 21 ... 4 4 5 In effect Sept. 8, 15 ... 6 Feb 28, 1973.... 8 10 12 13 17% 3 3 5 1967—Mar. 2......... 3% 3% Mar. 16......... 3 3 1968—Jan. 11, 18... 161/z 17 12 12% 1969—Apr. 17.......... 17 171/2 12% 13 Present legal requirement: Minimum Maximum 1970—Oct. 1............ 5 Net demand deposits, reserve city banks............. 10 22 7 14 Time deposits........................................................ 3 10 1 When two dates are shown, the first applies to the change at reserve member bank will maintain reserves related to the size of its net demand city banks and the second to the change at country banks. For changes deposits. The new reserve city designations are as follows: A bank having prior to 1963 see Board’s Annual Reports. net demand deposits of more than $400 million is considered to have the 2 (a) Demand deposits subject to reserve requirements are gross de­ character of business of a reserve city bank, and the presence of the head mand deposits minus cash items in process of collection and demand office of such a bank constitutes designation of that place as a reserve balances due from domestic banks. city. Cities in which there are F.R. Banks or branches are also (b) Requirement schedules are graduated, and each deposit interval reserve cities. Any banks having net demand deposits of $400 million or applies to that part of the deposits of each bank. less are considered to have the character of business of banks outside of (c) Since Oct. 16,1969, member banks have been required under Regu­ reserve cities and are permitted to maintain reserves at ratios set for banks lation M to maintain reserves against balances above a specified base due not in reserve cities. For details, see announcements on Regulation D in from domestic offices to their foreign branches. Effective Jan. 7, 1971, the 1972 Bulletins: July, pp. 649, 679; Oct., p. 942; Nov., p. 994. applicable reserve percentage was increased from the original 10 per cent 5 Reserve city banks. to 20 per cent. Regulation D imposes a similar reserve requirement on bor­ 6 The 16 Vi per cent requirement applied for one week, only to former rowings above a specified base from foreign banks by domestic offices reserve city banks. For other banks, the 13 per cent requirement was of a member bank. For details concerning these requirements, see Regula­ continued in this deposit interval. tions D and M and appropriate supplements and amendments thereto. 7 See preceding columns for earliest effective date of this rate. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. Note.—All required reserves were held on deposit with F.R. Banks For other notes see 2(b) and 2(c) above. June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ banks were allowed to count part of their currency and coin as reserves; serve cities, and on the same date requirements for reserves against net effective Nov. 24, 1960, they were allowed to count all as reserves. For demand deposits of member banks were restructured to provide that each 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 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. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 Effective Nov. 24, 1972. 65 50 65 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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............. 4i/2 12 months or more.., 4 Other time deposits:2 Less than 12 months. 3% Multiple maturity:3 30-89 days........... 4 4% 90 days-1 year... 5 1 year to 2 years.. 5 5*4 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% 5 Vi 6 months to 12 months 3% 4% 2 years and over.. 5V4 90 days to 6 months.. . 2% $100,000 and over: Less than 90 days........ 1 4 30-59 days.......... f 51/2 (4) (30-89 days) 9 6 0 0 - - 1 8 7 9 9 d d a a y y s. s . . . . . . . . . . . . . . . . . 5% 5% 56V4 6 ( 3 4 4 ) 180 days to 1 year. 7 1 year or more. .. W/a 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 6% commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6l/z per cent on maturities of those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other3 C b o a u n n k t s r 3 y Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other3 C ba o n u k nt s r 3 y City Chicago City Chicago Four weeks ending Dec. 27, 1972 Four weeks ending Jan. 24, 1973 Gross demand—Total.... 213,771 44,530 8,349 76,457 84,436 Gross demand—Total... 220,422 45,452 8,589 78,753 87,629 Interbank...................... 26,572 12,698 1,344 9,280 3,250 Interbank..................... 27,415 12,580 1,412 9,782 3,641 U.S. Govt...................... 5,696 980 283 2,203 2,231 U.S. Govt..................... 6,471 953 298 2,628 2,592 Other............................. 181,504 30,852 6,723 64,974 78,955 186,537 31,919 6,878 66,344 81,395 Net demand 1................... 164,589 28,958 6,737 58,211 70,683 Net demand 1................. 169,062 29,655 6,889 59,477 73,042 Time.................................. 240,230 30,081 10,215 86,166 113,768 Time................................. 243,421 30,431 10,211 87,327 115,452 Demand balances due Demand balances due from domestic banks... 14,967 4,147 143 3,045 7,632 from domestic banks. . 15,351 4,044 146 3,148 8,014 Currency and coin............ 6,069 514 133 1,916 3,506 Currency and coin.......... 6,426 532 141 2,052 3,700 Balances with F.R. Balances with F.R. Banks............................. 24,713 5,462 1,345 9,748 8,158 26,203 5,980 1,433 10,195 8,595 Total reserves held2......... 31,232 5,976 1,478 11,664 11,664 Total reserves held2........ 32,908 6,512 1,574 12,247 12,295 Required........................ 30,988 5,970 1,467 11,723 11,829 Required....................... 32,659 6,489 1,577 12,301 12,293 Excess2......................... 244 6 11 -59 -165 249 23 -3 -54 2 1 Demand deposits subject to reserve requirements are gross demand included are (beginning with first statement week of quarter): Ql, $279 deposits minus cash items in process of collection and demand balances million. due from domestic banks. 3 As of Nov. 9,1972, the definition of reserve city and country banks was 2 Beginning with week ending Nov. 15, 1972, includes $450 million of changed (see July 1972 Bulletin, p. 626). The classifications employed reserve deficiencies on which F.R. Banks are allowed to waive penalties here are the same as prior to the change in definition, so these series are for a transition period in connection with bank adaptation to Regulation J continuous over time. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies Note.—Averages of daily figures, close of business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS a MARCH 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 Feb. 28 Feb. 21 Feb. 14 Feb. 7 Jan. 31 Feb. 28 Jan. 31 Feb. 29 Assets Gold certificate account................................. 10,303 10,303 10,303 10,303 10,303 10,303 10,303 9,475 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash...................................................... 366 363 364 357 353 366 353 326 Loans: Member bank borrowings.............. 1,565 393 2,766 967 1,310 1,565 1,310 6 Other................................................. Acceptances: Bought outright............................... 79 76 76 81 82 79 63 Held under repurchase agreements. 154 103 154 59 154 Federal agency obligations: Bought outright................................ 1,294 1,311 1,311 1,311 1,311 1,294 1,311 727 Held under repurchase agreements. 33 34 41 61 33 61 U.S. Govt, securities: Bought outright: Bills........................... 31,652 30,277 30,429 28,944 30,989 31,652 30,989 28,299 Certificates—Special. Other.. Notes......................... 36,839 36,839 36,681 36,681 36,681 36,839 36,681 36,034 Bonds......................... 3,501 3,501 3,463 3,463 3,463 3,501 3,463 3,365 Total bought outright..................... i 71,992 1,270,617 l 70,573 1,2 69,088 i 71,133 i 71,992 1 71,133 1,2 67,698 Held under repurchase agreements. 628 154 594 889 628 889 Total U.S. Govt, securities. 72,620 70,771 71,167 69,088 72,022 72,620 72,022 67,698 Total loans and securities................... 75,745 72,688 75,515 71,447 74,845 75,745 74,845 68,494 Cash items in process of collection... *8,272 *9,883 9,117 8,963 8,264 *8,272 8,264 10,431 Bank premises..................................... 194 195 195 194 194 194 194 154 Other assets: Denominated in foreign currencies. 4 4 4 6 92 4 92 17 All other........................................... 537 472 1,198 1,104 1,053 537 1,053 485 Total assets. *95,821 *94,308 97,096 92,774 95,504 *95,821 95,504 89,782 Liabilities F.R. notes..,..................................... 56,955 57,165 57,220 56,900 56,589 56,955 56,589 52,549 Deposits: Member bank reserves.................. *27,342 *23,321 26,958 23,415 26,727 *27,342 26,727 25,525 U.S. Treasurer—General account. 2,073 3,358 2,809 3,253 2,747 2,073 2,747 884 Foreign........................................... 455 275 332 245 310 455 310 137 Other: All other..................................... 633 681 615 651 674 633 674 677 Total deposits. *30,503 *27,635 30,714 27,564 30,458 *30,503 30,458 27,223 Deferred availability cash items....... 5,789 7,047 6,694 5,698 5,881 5,789 5,881 7,716 Other liabilities and accrued dividends. 695 648 729 641 675 695 675 521 Total liabilities....................................... *93,942 *92,495 95,357 90,803 93,603 *93,942 93,603 88,009 Capital accounts Capital paid in.............. 801 801 801 800 797 801 797 753 Surplus.......................... 793 793 793 793 793 793 793 742 Other capital accounts. 285 219 145 378 311 285 311 278 Total liabilities and capital accounts. *95,821 *94,308 97,096 92,774 95,504 *95,821 95,504 89,782 Contingent liability on acceptances purchased for foreign correspondents............................................. 239 233 222 209 198 239 198 267 Marketable U.S. Govt, securities held in custody for foreign and international accounts.......................... 32,067 33,250 32,659 31,819 30,155 32,067 30,155 29,317 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)... 61,476 61,593 61,608 61,708 61,931 61,476 61,931 56,759 Collateral held against notes outstanding: Gold certificate account........................... 2,191 2,241 2,241 2,241 2,021 2,191 2,021 2,445 U.S. Govt, securities................................. 61,370 61,320 61,320 61,385 61,625 61,370 61,625 56,025 Total collateral., 63,561 63,561 63,561 63,626 63,646 63,561 63,646 58,470 1 See note 6 on p. A-5. 2 See note 7 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1973 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a ­ a­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a i a t n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account.................... 10,303 697 1,644 253 751 844 229 2,067 417 313 370 580 2,138 Special Drawing Rights certif. acct... 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks................. 1,560 194 315 56 88 131 271 107 26 26 31 74 241 Other cash.......................................... 366 19 24 13 43 42 44 47 25 6 44 15 44 Loans: Secured by U.S. Govt, and agency obligations................................... 1,557 81 635 43 56 60 67 239 48 57 82 10 179 Other............................................... 8 8 Acceptances: Bought outright.............................. 79 79 Held under repurchase agreements. 154 154 Federal agency obligations: Bought outright............................... 1,294 57 342 65 98 97 72 210 48 25 52 56 172 Held under repurchase agreements. 33 33 U.S. Govt, securities: Bought outright.............................. 171,992 3,162 19,021 3,630 5,427 5,374 3,979 11,678 2,682 1,400 2,910 3,129 9,600 Held under repurchase agreements. 628 628 Total loans and securities.................. 75,745 3,300 20,892 3,738 5,581 5,531 4,126 12,127 2,778 1,482 3,044 3,195 9,951 Cash items in process of collection.. 10,121 373 1,585 1,047 587 1,031 1,160 1,114 455 402 638 620 1,109 Bank premises.................................... 194 29 7 5 27 13 15 16 14 31 17 12 8 Other assets: Denominated in foreign currencies. 44 2 214 2 4 2 3 6 1 1 2 2 5 All other......................................... 497 22 120 33 33 35 26 66 16 11 20 33 82 Total assets. 99,230 4,659 24,694 5,170 7,147 7,665 5,896 15,620 3,747 2,279 4,181 4,545 13,627 Liabilities F.R. notes............................................ 58,515 3,038 14,635 3,575 4,632 5,209 3,014 9,750 2,279 1,035 2,285 2,217 6,846 Deposits: Member bank reserves.................... 27,342 1,057 7,149 979 1,607 1,280 1,677 4,076 857 700 1,069 1,553 5,338 U.S. Treasurer—General account.. 2,073 84 319 131 165 252 161 183 120 101 127 169 261 Foreign............................................. 455 15 3195 17 32 18 25 55 12 8 15 19 44 Other: All other...................................... 633 2 553 16 1 13 8 6 4 1 3 5 21 Total deposits. 30,503 1,158 8,216 1,143 1,805 1,563 1,871 4,320 993 810 1,214 1,746 5,664 Deferred availability cash items.......... 7,638 355 1,161 326 494 737 843 1,142 388 373 577 454 788 Other liabilities and accrued dividends 695 30 192 34 51 51 40 109 24 19 27 29 89 Total liabilities..................... 97,351 4,581 24,204 5,078 6,982 7,560 5,768 15,321 3,684 2,237 4,103 4,446 13,387 Capital accounts Capital paid in.............. 801 33 207 39 72 43 57 127 27 19 34 43 100 Surplus........................... 793 34 207 39 72 42 55 124 27 18 33 43 99 Other capital accounts., 285 11 76 14 21 20 16 48 9 5 11 13 41 Total liabilities and capital accounts.. 99,230 4,659 24,694 5,170 7,147 7,665 5,896 15,620 3,747 2,279 4,181 4,545 13,627 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 239 10 462 12 22 12 17 38 8 5 10 13 30 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)............................................ 61;,476 3,253 15,472 3,635 4,845 5,415 3,293 10,097 2,384 1,063 2,369 2,343 7,307 Collateral held against notes out­ standing: Gold certificate account.................. 2,,191 280 200 350 501 700 155 5 U.S. Govt, securities....................... 61 i,370 3,010 15,850 3,500 4,700 4,950 3,500 9,900 2,330 1,100 2,450 2,480 7,600 Total collateral. 63,561 3,290 15,850 3,700 5,050 5,451 3,500 10,600 2,485 1,100 2,450 2,485 7,600 1 See note 6 to table at bottom of p. A-5. 4 After deducting $177 million participations of other Federal Reserve 2 After deducting $30 million participations of other Federal Reserve Banks. Banks. 3 After deducting $260 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 □ MARCH 1973 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., Gross Gross Redemp­ Gross Gross Redemp­ Gross Gross m s a h t i u ft r s i , ty Gross Gross Exch. c p ha u s r e ­ s sales tions c p ha u s r e ­ s sales tions c p ha u s r e ­ s sales red o em r p­ ch p a u s r e ­ s sales m s a h t i u f r t i s ty tions 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 Aug. 1,390 1,752 ’432’ 1,274 1,752 432 -1,089 *79* 673 Sept. 9,369 8,673 850 9,369 8,673 850 Oct.. 2,795 2,425 150 2,678 2,425 150 42 *35’ Nov. 2,638 2,880 351 2,638 2,880 300 360 -4ii’ Dec. 5,083 4,640 135 5,083 4,640 -135 1973—Jan.. 3,060 1,735 3,060 1,735 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal agency acceptances (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s s G e it c o ie u v s r t ­ , r O ig u h t­ t R a m c g e h e r p a n e s u e t e 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 1972—Jan.. 191 23 4,722 5,945 -666 165 -101 -4 -181 -787 Feb.. 52 -2,260 1,694 21,,062924 -1,854 77 -12 -1,789 Mar.. 31 47 2,695 2,229 83 16 19 61 2,408 Apr.. 126 23. 2,625 3,298 380 169 -16 1 -61 472 May. 1,121115 1,299 25 -4 65 1,386 June. 109 20 i j 326 -251 i 27 -25 -6 -65 -221 July. 1,736 1,736 -533 -26 -10 -570 Aug.. “23* 166 ‘i5‘ 250 3,171 2,459 -8-8626 -3 74 4 30 22 S O e c p t t . . . . •*y ’32* 3 1 , , 5 1 9 3 4 2 3 1 , , 5 8 9 4 4 4 220 - - 3 2 5 2 -74 -4 7 -30 -1,0 2 0 0 9 6 Nov.. 3,547 3,547 -593 157 — 6 -442 Dec.. 4,863 4,765 405 134 13 7 36 596 1973—Jan.. 9,719 8,928 2,116 48 11 23 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 i n t ld h d e e s r r s ­ f S r w an is c s s 1968—Dec............. 2,061 1,444 8 3 433 165 1 1 4 3 1969—Dec............. 1,967 1,575 1 * 199 60 125 1 3 1970—Dec............. 257 154 * * 98 1 « 4 1971—Nov............. 15 * 4 • 2 1 8 Dec............. 18 3 3 * 2 1 8 1972—Jan.............. 17 3 3 * 2 1 8 Feb.............. 17 3 3 * 2 1 8 Mar............. 17 3 3 * 2 1 8 Apr............. 17 3 3 * 2 1 8 May............ 57 3 * * 2 1 50 June............ 18 2 * * 9 1 5 July............. 7 1 * * 1 1 7 Aug............. 34 • 1 * 24 1 3 Sept............. 122 * * * 85 1 35 Oct.............. 211 * 8 * 164 1 16 21 Nov............ 200 * 8 * 164 1 20 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 1973 1972 1973 Feb. 28 Feb. 21 Feb.14 Feb. 7 Jan. 31 Feb. 28 Jan. 31 Feb. 29 1,565 393 2,765 967 1,310 1,565 1,310 6 Within 15 days............................................................ 1,559 390 2,762 964 1,307 1,559 1,307 5 16 days to 90 days...................................................... 6 3 3 3 3 6 3 1 91 days to 1 year........................................................ Acceptances—T otal........................................................ 233 179 230 81 141 233 141 63 175 123 180 25 80 175 80 20 16 days to 90 days...................................................... 58 56 50 56 61 58 61 43 91 days to 1 year........................................................ 72,620 70,771 71,167 69,088 72,022 72,620 72,022 67,698 Within 15 days1.......................................................... 4,609 4,173 7,261 4,945 7,277 4,609 7,277 2,320 16 days to 90 days...................................................... 20,753 20,414 20,043 15,244 15,674 20,753 15,674 17,134 91 days to 1 year........................................................ 13,540 12,466 11,725 16,761 16,933 13,540 16,933 15,119 Over 1 year to 5 years................................................ 28,021 28,021 24,484 24,484 24,484 28,021 24,484 26,318 Over 5 years to 10 years............................................. 4,119 4,119 6,108 6,108 6,108 4,119 6,108 5,647 Over 10 years.............................................................. 1,578 1,578 1,546 1,546 1,546 1,578 1,546 1,160 Federal agency obligations—Total............................... 1,327 1,345 1,352 1,311 1,372 1,327 1,372 727 Within 15 days1.......................................................... 47 52 59 61 47 61 16 days to 90 days...................................................... 40 38 38 56 55 40 55 6 91 days to 1 year........................................................ 191 199 199 199 199 191 199 186 Over 1 year to 5 years................................................ 611 618 618 618 597 611 597 366 Over 5 years to 10 years............................................ 247 247 247 247 269 247 269 99 Over 10 years.............................................................. 191 191 191 191 191 191 191 70 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1972—Jan................................ 12,530.7 5,687.0 2,803.1 6,843.7 4,040.6 83.9 205.3 82.0 56.3 46.2 Feb............................... 13,027.1 6,013.9 2,913.1 7,013.2 4,100.2 84.5 205.1 82.6 56.2 45.7 Mar.............................. 12,784.6 5,631.4 2,932.9 7,153.2 4,220.3 83.0 195.2 83.3 57.2 46.9 Apr.............................. 13,168.5 5,801.4 3,053.1 7,367.0 4,313.9 85.6 202.1 87.3 58.9 47.8 May............................. 13,399.4 5,939.2 3,148.8 7,460.1 4,311.3 85.5 200.8 89.8 58.7 46.9 June............................. 13,280.3 5,780.8 3,096.4 7,499.5 4,403.1 84.7 199.9 88.1 58.6 47.5 July............................... 12,994.2 5,633.0 2,996.3 7,361.2 4,364.9 82.3 194.4 84.2 57.1 46.7 Aug............................... 13,969.2 6,151.8 3,233.0 7,817.4 4,584.5 87.5 206.9 90.2 60.2 48.8 Sept.............................. 14,022.8 6,285.1 3,191.0 7,737.6 4,546.6 88.7 214.9 89.8 60.1 48.8 Oct................................ 13,896.7 6,148.6 3,225.8 7,748.1 4,522.3 86.7 208.3 89.2 59.2 47.8 Nov.............................. 15,154.7 6,979.3 3,411.9 8,175.4 4,763.5 93.5 229.2 93.9 62.1 50.0 Dec.r........................... 14,783.6 6,604.8 3,495.4 8,178.7 4,683.4 90.7 215.7 95.5 61.8 48.9 1973—Jan................................ 15,629.5 6,855.4 3,764.7 8,774.1 5,009.4 95.0 224.0 101.5 65.5 51.7 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 □ MARCH 1973 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. 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 4 1972--Jan............. 59,429 40,388 6,774 2,281 135 3,083 8,900 19,215 19,042 5,261 13,337 202 235 2 4 Feb............ 59,795 40,725 6,812 2,275 135 3,087 9,010 19,405 19,070 5,257 13,371 201 234 2 4 Mar........... 60,388 41,182 6,860 2,279 135 3,106 9,110 19,692 19,205 5,275 13,490 200 233 2 4 Apr........... 60,535 41,140 6,902 2,276 135 3,094 9,028 19,705 19,395 5,351 13,606 199 232 2 4 May.......... 61,702 42,056 6,969 2,334 135 3,170 9,243 20,204 19,647 5,425 13,785 198 232 2 4 June.......... 62,201 42,399 7,016 2,328 135 3,178 9,295 20,446 19,803 5,446 13,923 197 230 2 4 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 Aug........... 62,744 42,520 7,095 2,333 135 3,152 9,211 20,594 20,224 5,565 14,228 196 229 2 4 Sept........... 62,599 42,341 7,116 2,329 135 3,139 9,146 20,477 20,258 5,492 14,336 195 228 2 4 Oct............ 63,586 43,085 7,172 2,378 135 3,209 9,334 20,857 20,500 5,570 14,503 194 226 2 4 Nov........... 65,137 44,208 7,237 2,437 135 3,305 9,602 21,491 20,928 5,714 14,789 194 225 2 4 Dec............ 66,516 45,105 7,287 2,523 135 3,449 9,827 21,883 21,411 5,868 15,118 193 225 2 4 1973--Jan............. 64,312 43,133 7,274 2,380 135 3,218 9,243 20,883 21,179 5,742 15,013 192 224 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. 1973 1972 Kind of currency Jan. 31, against Treasury F.R. Banks 1973 gold and cash Banks and silver and Agents Jan. Dec. Jan. certificates Agents 31 31 31 Gold................................................................................. 10,410 (10,303) 107 Gold certificates.............................................................. (10,303) 2 10,302 1 Federal Reserve notes.................................................... 61,930 160 5,343 56,428 58,619 52,041 Treasury currency—Total.............................................. 8,343 106 353 7,884 7,897 7,389 Standard silver dollars................................................ 764 45 44 675 671 581 Fractional coin............................................................ 6,965 58 309 6,599 6,615 6,193 United States notes..................................................... 323 3 320 320 321 In process of retirement 3.......................................... 291 290 291 294 Total—Jan. 31, 1973...................................................... 4 80,683 (10.303) 372 10.302 5,697 64,312 Dec. 31, 1972...................................................... 4 81,214 (10.303) 345 10.302 4,050 66,516 Jan. 31 1972...................................................... 4 74,855 (9,875) 505 9,874 5,046 59,429 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

MARCH 1973 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week M2 Ms M2 Mi Mi (Mi plus time (M2 plus deposits Mi (Mi plus time (M2 plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other than institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 1969—De c 208.8 392.3 594.0 214.9 397.0 598.4 1970—De c 221.3 425.2 641.3 227.7 430.0 645.6 1971—De c 236.0 473.8 727.7 242.8 478.7 731.9 1972—Ja.............n 236.2 477.9 735.7 242.8 483.7 741.2 Feb.......... 239.1 483.9 746.0 236.5 481.3 742.9 Mar......... 241.4 488.9 754.8 239.0 487.7 754.0 Apr.......... 243.0 492.1 761.5 244.3 495.0 765.3 May........ 243.8 495.5 767.9 239.5 493.1 766.0 June........ 245.1 499.3 775.0 243.2 498.8 775.5 July......... 247.7 504.5 783.9 246.6 503.6 784.2 Aug......... 248.6 508.4 791.5 245.5 505.1 788.2 Sept......... 250.1 512.1 798.9 248.7 510.4 796.8 Oct.......... 251.6 516.4 806.9 251.2 515.2 805.1 Nov......... 252.7 519.8 813.5 254.3 518.7 811.1 Dec......... 255.5 525.1 821.8 262.9 530.3 826.3 1973—Ja n 255.4 527.9 828.2 262.6 534.1 834.0 Feb.*.... 256.7 530.5 834.1 254.0 527.8 830.9 Week ending— 1973—Jan. 31. 254.3 527.7 255.5 528.2 Feb. 7___ 256.3 529.0 255.8 528.2 14___ 256.4 530.4 254.6 528.5 21*... 258.4 532.5 254.2 528.3 28*. .. 255.7 529^9 251.3 526.0 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 1969—Dec...................... 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—Dec...................... 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—Dec...................... 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—Jan....................... 52.9 183.3 33.2 241.7 274.9 257.8 52.5 190.3 33.7 240.9 274.6 257.5 7.4 Feb...................... 53.2 185.8 33.7 244.8 278.6 262.1 52.6 184.0 33.6 244.8 278.4 261.6 7.4 Mar..................... 53.6 187.7 33.8 247.5 281.3 265.9 53.1 185.9 33.3 248.7 282.0 266.3 7.9 53.9 189.1 35.2 249.1 284.3 269.4 53.5 190.8 33.8 250.7 284.5 270.3 7.7 May.................... 54.2 189.6 36.8 251.8 288.6 272.4 53.9 185.6 35.1 253.6 288.6 272.9 10.5 54.4 190.7 37.5 254.2 291.7 275.7 54.4 188.8 35.8 255.6 291.4 276.7 6.9 July..................... 54.6 193.1 38.3 256.8 295.0 279.5 55.1 191.5 37.0 257.0 294.0 280.5 7.3 Aug..................... 54.8 193.8 39.1 259.8 298.9 283.1 55.1 190.5 39.9 259.6 299.5 283.1 5.3 Sept..................... 55.3 194.8 39.8 262.0 301.9 286.8 55.2 193.5 41.0 261.7 302.7 286.4 5.9 Oct...................... 55.7 195.9 40.0 264.8 304.8 290.5 55.7 195.5 41.9 264.0 305.9 289.9 6.6 Nov..................... 56.2 196.5 41.2 267.1 308.4 293.7 56.7 197.7 43.3 264.4 307.7 292.4 6.2 Dec...................... 56.8 198.7 43.2 269.6 312.8 296.7 57.8 205.0 44.3 267.5 311.7 295.9 7.3 1973—Jan....................... 57.0 198.4 44.4 272.5 316.9 300.3 56.7 205.9 45.1 271.5 316.6 300.0 8.0 Feb.*................... 57.5 199.3 48.8 273.7 322.6 303.7 56.7 197.3 48.6 273.8 322.4 303.1 9.6 Week ending— 1973—jan> 31............. 56.7 197.6 45.5 273.4 318.9 55.8 199.7 45.8 272.7 318.5 9.9 Feb. 7............. 57.4 198.9 47.3 272.8 320.1 56.7 199.1 47.1 272.4 319.5 8.6 14............. 57.4 199.0 48.2 274.0 322.2 57.0 197.6 48.0 273.9 321.8 9.0 21*........... 57.7 200.7 49.1 274.1 323.2 56.9 197.3 49.0 274.2 323.2 10.6 28* .. 57.3 198.4 50.7 274.2 324.9 56.3 195.0 50.5 274.7 325.2 10.4 1 Includes, in addition to currency and demand deposits, savings de­ Note.—For description of revised series and for back data, see article posits, time deposits open account, and time certificates of deposits other “Revision of the Money Stock Measures and Member Bank Reserves and than negotiable time certificates of deposit issued in denominations of Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. $100,000 or more by large weekly reporting commercial banks. Average of daily figures. Money stock consists of (1) demand deposits 2 Includes M2, plus the average of the beginning and end of month at all commercial banks other than those due to domestic commer­ deposits of mutual savings banks and savings and loan shares. cial banks and the U.S. Govt., less cash items in process of collection and 3 Negotiable time certificates of deposit issued in denominations of F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency $100,000 or more by large weekly reporting commercial banks. outside the Treasury, F.R. Banks, and vaults of all commercial banks. Time 4 Average of the beginning and end-of-month figures for deposits of deposits adjusted are time deposits at all commercial banks other than mutual savings banks and savings capital at savings and loan associations. those due to domestic commercial banks and the U.S. Govt. 5 At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANK RESERVES; BANK CREDIT □ MARCH 1973 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non- Total bor- Re­ Avail­ Demand Demand rowed quired able2 Time Time Total and U.S. Total and U.S. S.A. N.S.A. savings Private Govt. savings Private Govt. 1969—Dec.... 27.96 26.70 27.73 25.34 287.7 150.4 131.9 5.3 291.2 149.7 136.9 4.6 307.7 311.1 1970—Dec.... 29.12 28.73 28.91 26.98 321.3 178.8 136.0 6.5 325.2 178.1 141.1 6.0 332.9 336.8 1971—Dec.... 31.21 31.06 31.06 28.91 360.3 210.4 143.8 6.1 364.6 209.7 149.2 5.7 364.3 368.7 1972—Feb....... 31.64 31.60 31.49 29.33 365.7 215.9 145.2 4.6 365.7 215.9 143.7 6.1 369.3 369.3 Mar.... 32.02 31.89 31.81 29.66 370.5 217.6 147.2 5.7 370.2 218.1 145.5 6.6 374.3 373.9 Apr....... 32.61 32.47 32.43 29.82 374.5 220.1 147.6 6.8 375.3 219.8 149.0 6.5 378.1 378.8 May.... 32.85 32.72 32.71 29.92 379.3 223.4 148.4 7.5 377.0 223.1 145.1 8.8 383.0 380.8 June... 33.03 32.94 32.81 30.14 381.3 225.6 149.5 6.2 378.6 225.2 147.8 5.7 385.1 382.4 July___ 33.17 33.02 32.99 30.32 384.4 228.1 151.1 5.2 383.2 227.1 150.1 6.1 388.3 387.1 Aug___ 33.38 33.04 33.21 30.56 387.3 230.8 152.0 4.5 384.5 231.3 149.0 4.3 391.4 388.7 Sept.... 33.33 32.87 33.14 30.89 390.4 233.0 152.4 5.1 389.6 233.8 150.9 4.9 394.5 393.8 Oct........ 33.83 33.30 33.60 30.97 394.1 235.1 152.7 6.3 394.1 236.2 152.5 5.4 398.4 398.4 Nov.... 31.88 31.30 31.54 29.50 397.6 237.9 152.8 6.9 396.4 237.6 153.7 5.1 401.9 400.7 Dec.. .. 31.31 30.06 31.07 28.86 402.0 241.2 154.3 6.5 406.8 240.7 160.1 6.1 406.4 411.2 1973—Jan . . . 32.24 30.85 31.98 29.41 404.7 243.7 153.9 7.1 410.4 243.8 160.0 6.6 409.2 414.9 Feb.*... 31.64 29.78 31.44 29.29 410.2 248.5 154.5 7.2 408.9 248.5 152.4 8.1 414.7 413.5 1 Averages of daily figures. Member bank reserve series reflects actual and demand balances due from domestic commercial banks. Data for reserve requirement percentages with no adjustment to eliminate the 1968 are not comparable with later data due to the withdrawal from the effect of changes in Regulations D and M. Required reserves were in­ System on Jan. 2, 1969, of a large member bank. creased by $660 million effective Apr. 16, 1969, and $400 million, effective 4 Total member bank deposits subject to reserve requirements, plus Oct. 16, 1969. Required reserves were reduced by $500 million (net) Euro-dollar borrowings, bank-related commercial paper, and certain effective Oct. 1, 1970. Required reserves were reduced by approximately other nondeposit items. This series for deposits is referred to as “the ad­ $2.5 billion, effective Nov. 9, 1972; by $1.0 billion, effective Nov. 15, and justed bank credit proxy.” increased by $300 million, effective Nov. 22. 2 Reserves available to support private nonbank deposits are defined Note.—For description of revised series and for back data, see article as (1) required reserves for (a) private demand deposits, (b) total time “Revision of the Money Stock Measures and Member Bank Reserves and and savings deposits, and (c) nondeposit sources subject to reserve re­ Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. quirements, and (2) excess reserves. This series excludes required reserves Due to changes in Regulations M and D, member bank reserves include for net interbank and U.S. Govt, demand deposits. reserves held against nondeposit funds beginning Oct. 16, 1969. Back data 3 Averages of daily figures. Deposits subject to reserve requirements may be obtained from the Banking Section, Division of Research and include total time and savings deposits and net demand deposits as defined Statistics, Board of Governors of the Federal Reserve System, Washington, by Regulation D. Private demand deposits include all demand deposits D.C. 20551. except those due to the U.S. Govt., less cash items in process of collection LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial m in e a v n n e t d s s 1 t­ ,2 Total1,2 l I P o s , o l a 2 u l n , d s 3 s T ar o id 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 s o > o l a 2 u l n , d s 3 s T an o d ta l indu l s P o t l r 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—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—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.... 505.0 333.8 336.6 118.4 120.2 62.3 108.9 501.5 330.5 333.3 118.4 120.2 62.5 108.5 Apr. 26.... 507.4 335.9 338.5 119.9 121.5 62.6 108.9 506.6 335.1 337.8 120.1 121.8 61.9 109.7 May 31___ 516.1 341.9 344.4 121.2 122.6 63.1 111.1 513.7 341.6 344.0 120.8 122.3 61.2 110.9 June 30.... 517.5 343.7 346.0 5120.7 5122.2 63.2 110.6 521.6 349.8 352.1 5123.2 5124.6 60.3 111.5 July 26*.... 521.9 348.4 350.7 121.4 122.9 62.3 111.2 522.0 350.9 353.3 122.3 123.7 59.6 111.5 Aug. 30*.... 529.8 356.2 358.6 123.9 125.4 61.4 112.3 526.5 354.5 356.9 122.2 123.8 59.3 112.6 Sept. 27*.... 535.3 360.0 362.3 124.6 126.0 62.0 113.3 534.6 360.6 362.9 124.2 125.7 60.3 113.7 Oct. 25*.... 540.4 367.2 369.4 126.7 128.2 59.9 113.3 540.2 365.5 367.7 125.8 127.3 60.9 113.8 Nov. 29*... 549.4 373.6 376.1 128.2 129.9 60.6 115.1 549.4 371.8 374.3 127.6 129.2 63.2 114.4 Dec. 31*.... 554.2 376.6 379.2 129.1 130.8 62.0 115.6 568.1 385.6 388.2 132.5 134.2 66.6 115.9 1973—Jan. 31*... 562.8 384.3 386.9 133.0 134.7 62.0 116.5 563.1 382.0 384.6 131.8 133.5 65.4 115.6 Feb. 28*. .. 572.6 395.7 398.8 137.9 140.0 60.2 116.6 568.7 391.6 394.7 136.4 138.5 61.3 115.8 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. Fora 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

MARCH 1973 □ BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and caDital Total Bank credit assets, Date s G a to n o c d ld k T c u r u e r a r y ­ s­ U.S. Treasury securities l T n i i a e t o i b t e t — a i s l l ­ Total C a ap n i d tal c c S a e D t r e ti s R f i i ­ r s o e i t n n a u g c n t­ y d­ Total Lo n a e 2 n t s Total s C b a a a v o n n i m n d k g l s . s R F B e e a s d n e e r k r v a s e l Other3 O r s i e t t c i h 4 e u e s ­ r ca a n p n e it d t a l, c d u e r a p r n o e d s n i c ts y c m o n a u i c e s n ­ t c ts . , 1947--Dec. 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 72j894 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. 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971--Dec. 10,532 7,627 650,677 386,010 141,547 68,198 70,804 2,545 123,120 668,837 604,415 64,423 1972--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 7,900 654,600 387,600 138,400 65,900 69,900 2,600 128,700 672,500 607,300 65,200 Apr. 26..................... 10,000 7,900 661,800 392,200 139,100 65,300 71,300 2,600 130,400 679,700 613,800 65,900 May 31..................... 10,800 8,000 667,900 396,800 138,900 64,700 71,600 2,600 132,100 686,700 621,200 65,500 June 10,810 8,066 677,406 406,823 137,579 63,655 71,334 2,590 133,004 696,282 630,098 66,184 July 26..................... 10,800 8,100 677,400 407,600 136,400 63,000 70,900 2,600 133,300 696,300 629,800 66,500 Aug. 30*................... 10,800 8,200 682,000 411,100 136,100 62,700 70,800 2,600 134,800 701,000 631,700 69,200 Sept. 27 *................... 10,800 8,200 690,900 419,500 135,200 63,700 69,000 2,600 136,100 709,900 641,700 68,200 Oct. 25*................... 10,800 8,200 695,100 420,300 138,600 64,400 71,400 2,800 136,200 714,100 647,200 66,900 Nov. 29 p................... 10,800 8,300 705,000 429,400 138,600 66,600 69,200 2,800 137,000 724,100 657,100 67,000 Dec. 21 p................... 10,800 8,300 721,900 444,400 139,200 68,200 68,200 2,800 138,300 741,100 677,600 63,500 1973--Jan. 31 *................... 10,800 8,300 721,700 439,600 143,700 68,900 72,000 2,800 138,300 740,800 672,900 68,000 Feb. 28*................... 10,800 8,400 727,300 448,400 140,400 64,800 72,600 2,900 138,600 746,500 679,200 67,300 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 a s a t o d e e n s ­ ­ d d it 7 s Total o b r u C e a t n u n s c i k r d y ­ s e d ju e m D p a s a o t d e e n s ­ ­ d d it 7 s Total b m C a e n o r k c m s ia ­ l 8 b M sa a v n u i k t n u s g a s l 9 S P t a S e o v y m s i s t n a ­ g 3 l s n e F e ig o t n r 1 ­ , 0 T h c i u r n o a e r g l s a y d h s s ­ ­ s b c a a o a A v n n m i t d n k l g s . s B F a A . n R t k . s 1947--Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1967-—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968-—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969-—Dec. 315... 206,800 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--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--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 52,600 177,700 227,200 52,100 175,100 367,000 282,100 84,900 2,500 400 9,200 900 Apr. 26.... 227,900 52,700 175,200 227,900 52,200 175,700 370,200 284,800 85,400 2,500 400 11,000 1,800 May 31.... 234,500 53,300 181,200 231,600 53,100 178,500 375,200 289,100 86,100 2,900 400 9,000 2,100 June 30.... 233,900 53,200 180,700 235,121 55,144 179,977 379,696 292,021 87,675 3,011 351 9,575 2,344 July 26.... 233,400 53,500 179,900 233,100 53,600 179,500 382,000 294,200 87,800 3,000 300 8,900 2,500 Aug. 30*... 236,200 53,400 182,800 234,100 53,700 180,400 388,600 300,400 88,200 2,900 300 4,400 1,400 Sept. 27*... 236,600 53,600 183,000 235,100 53,700 181,400 391,200 301,900 89,200 3,200 300 10,000 1,900 Oct. 25*... 239,100 54,600 184,500 240,100 54,500 185,600 394,100 304,400 89,600 3,300 400 8,100 1,400 Nov. 29*.. 244,100 54,400 189,700 247,400 55,400 192,000 396,900 306,700 90,200 3,000 400 8,400 1,100 Dec. 27*.. 252,400 55,400 197,000 260,100 56,600 203,500 402,800 311,300 91,500 3,700 400 8,300 2,300 1973--Jan. 31*. . 244,100 56,000 188,100 247,300 55,200 192,100 408,200 315,900 92,300 3,400 400 10,900 2,700 Feb. 28* .. 246,700 56,400 190,300 245,400 55,700 189,700 415,900 323,200 92,700 3,500 400 11,900 2,100 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 □ MARCH 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets 3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Times ury 2 counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,S> 82 44.,349 15,952 23 7,173 14,278 1945—Dec. 31 ... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,C) 65 105,921 30,241 219 8,950 14,011 1947—Dec. 31 116,284 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--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—-Feb. 23... 511,360 343,300 61,860106,200 96,130 631,330 524.280 31,050 2,990 7,270 204,080 278,890 29,190 47,050 13,799 Mar. 29... 522,790 351,800 62,500108,490 91,220 639,000 526,150 26,430 2,950 8,740 205,420 282,610 32,850 47,450 13,806 Apr. 26... 525,660 354.120 61,860109,680 95,040 645,410 533,270 26,140 2,870 10,470 208,490 285,300 31,630 47,780 13,823 May 31... 532,260 360.120 61,240110,900100,910 659,070 544,720 28,240 3,020 8.430 215,360 289,670 33,270 48,310 13,838 June 30... 542,689 370,910 60,258111,521 99,472 667,126 552,543 28,782 3,114 9,083 219,050 292,513 33,214 50,117 13,875 July 26. .. 542,770 371.740 59,580111,450 91,380 659,690 544.560 27,310 3,260 8,300 210,930 294,760 34,290 48,970 13,877 Aug. 30. .. 547,500 375,580 59,300112,620 91.270 664,710 546,050 27,090 3,350 3,790 210,810 301,010 35,950 49,400 13,898 Sept. 27*.. 555,750 381.740 60,290113,720 90,810 673,100 555,480 26,880 3,890 9.430 212,730 302,550 33,400 49,720 13.910 Oct. 25*.. 560,440 385,700 60,930113,810101,790 689,800 566.280 29,040 3,760 7,470 220,980 305,030 39.540 50,270 13.911 Nov. 29*.. 573,170 395,540 63,210114,420 90.270 691,600 570.560 27,060 3,920 7,700 224,480 307,400 38,350 50,730 13,924 Dec. 27*.. 589,990 409,790 64,670115,530 97,730 716,920 595,730 30,230 4,030 7,660 241,790 312,020 38.540 51,150 13,927 1973--Jan. 31*.. 588,880 407,830 65,410115,640 94,750 712,580 586,540 29,180 3,660 10,230 226,890 316,580 43,130 52,230 13.940 Feb. 28*.. 596,530 419,440 61,330115,760 97,700 724,340 594,070 29,450 3,930 11,190 225,560 323,940 45,950 52,620 13.940 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--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--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 30. . . 422,356 294,730 43,708 83,918 86,430 529,645 433,574 27,311 2,717 7,630 172,419 223,498 31,752 39,358 5.714 July 26... 422,102 295,275 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. 30... 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 5.702 Sept. 27... 432,150 303,049 43,506 85,595 78,503 532,624 434,554 25,502 3,495 8,033 166,353 231,171 31,860 39,190 5.703 Oct. 25... 435,460 305,996 43,691 85,773 88,219 546,521 442,792 27,528 3,360 6,172 172,615 233,117 37,745 39,567 5,699 Nov. 29... 446,621 314,463 45,799 86,359 78,553 548,210 446,441 25,759 3,520 6,463 175,739 234,960 36,480 39,966 5,701 Dec. 27... 460,023 326,224 46,794 87,005 85,056 568,903 466,924 28,697 3,637 6,457 189,708 238,425 36,655 40,250 5.704 1973—-Jan. 31.. . 458,764 324,637 47,334 86,793 82,499 565.071 458,942 27,757 3,260 8,461 177,677 241,787 40,255 40,994 5.691 Feb. 28*.. 465,065 334,609 43,698 86,758 85,242 575,222 465,395 28,037 3,537 9,364 176,525 247,932 42,912 41,309 5.691 Reserve city member: New York City:8,9,10 1941—Dec. 31 _ . . 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945--Dec. 31 ... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947--Dec. 31 .. . 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 31 7. 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—Dec. 31... 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971—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--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 30... 66,597 51,637 5,338 9,623 22,535 94,377 72,432 12,933 1,175 1.038 30,637 26,649 7,314 7,650 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 Sept. 27... 68,924 53,166 5,368 10,390 17,864 92,484 70,323 11,414 1,591 1,454 27,718 28,146 6,861 7,714 13 Oct. 25... 69,136 53,835 5,045 10,256 21,261 96,657 72,568 12,386 1,530 1,097 29,046 28,509 9,170 7,756 13 Nov. 29... 71,707 55,533 5,712 10,462 21,556 98,990 74,550 12,639 1,752 1,032 30,710 28,417 9,335 7,944 13 Dec. 27... 74,894 59,090 5,321 10,483 21,169 102,172 78,742 13,712 1,831 1,093 33,731 28,375 8,241 7,972 13 1973--Jan. 31... 73,744 58,304 5,439 10,001 23,203 102,923 77,213 13,919 1,574 1,257 31,292 29,171 10,142 8,074 13 Feb. 28... 75,727 61,629 4,463 9,635 23,059 105,571 79,567 14,040 1,708 1,506 30,533 31,780 10,321 8,142 13 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 o COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets 3 and Demand ings counts banks l U.S. capital Total3 Treas­ Other ac­ De­ Time Time 5 ury 2 counts4 mand U.S. Govt. Other Reserve city member (cont.): City of Chicago: 8,9 1941—Dec. 31............. 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31............. 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947—Dec. 31............. 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1966—Dec. 31............. 11,802 8,756 1,545 1,502 2,638 14,935 12,673 1,433 25 310 6,008 4,898 484 1,199 11 1967—Dec. 30............. 12,744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1,346 10 1968—Dec. 31............. 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1,535 21 257 6,542 6,171 682 1,433 9 1969—Dec. 31 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—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—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 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 30............. 18,541 13,782 1,662 3,096 2,946 22,562 16,912 1,331 139 261 6,603 8,579 2,639 1,857 9 July 26............. 18,582 14,13C 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 Sept. 27............. 19,27C 14,582 1,545 3,143 3,135 23,479 17,812 1,406 224 374 6,435 9,373 2,768 1,859 9 Oct. 25............. 19,530 15,021 1,435 3,074 3,119 23,714 17,738 1,455 196 192 6,264 9,631 2,945 1,875 9 Nov. 29............. 20,370 15,379 1,597 3,394 2,659 24,042 18,021 1,262 217 213 6,565 9,764 3,137 1,855 9 Dec. 27............. 21,208 16,325 1,643 3,240 3,640 25,776 19,417 1,433 231 301 7,332 10,120 3,426 1,876 9 oy 1973—Jan. 31............. 21,026 16,371 1,562 3,093 2,939 25,035 18,709 1,364 247 358 6,605 10,135 3,276 1,895 Feb. 28............. 21,983 17,544 1,384 3,055 3,513 26,575 19,429 1,433 224 442 6,778 10,552 4,075 1,891 9 Other reserve city: 8,9 1941__Dec 31 ......... 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947 Dec. 31............. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31........... 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967 Dec. 30............. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 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—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—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 13,725 157 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 13,890 157 June 30............. 155,085 113,213 14,141 27,731 33,806 197,155 156,850 9,645 1,008 3,527 61,701 80,970 17,592 14,020 157 July 26............. 154,528 113,172 13,873 27,483 30,832 193,689 153,772 9,688 1,098 2,867 58,980 81,139 17,595 14,011 157 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 Sept. 27............. 156,822 115,352 13,692 27,778 31,640 196,672 156,023 9,509 1,285 3,512 58,956 82,761 17,788 14,132 157 Oct. 25............. 157,630 115,642 13,699 28,289 35,635 201,551 158,214 10,202 1,239 2,374 61,147 83,252 20,469 14,193 156 Nov. 29............. 163,011 119,961 14,734 28,316 29,350 200,829 159,305 8,844 1,156 2,828 62,229 84,248 18,629 14,331 156 Dec. 27............. 168,655 124,195 15,615 28,845 33,052 210,331 167,413 10,064 1,180 2,776 67,422 85,971 19,890 14,491 156 1973—Jan. 31'........... 168,522 123,907 15,844 28,771 30,426 207,904 163,418 9,239 1,044 3,470 63,011 86,654 21,086 14,619 156 Feb. 28............. 169,752 126,901 13,957 28,894 32,376 211,296 165,050 9,365 1,210 3,942 62,627 87,906 22,434 14,760 156 Country member: 8,9,10 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............. 154,1301 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—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 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 5,535 May 31............. 179,450 113,382 23,119 42,949 27,057 213,129 184,891 3,213 263 2,742 72,231106,442 4,089 15,012 5,534 June 30............. 182,133 116,098 22,568 43,467 27,142 215,551 187,380 3,401 395 2,804 73,479107,300 4,208 15,831 5,535 182,661 116,565 22,707 43,389 25,745 214,899 186,267 3,208 263 2,606 71,860108,330 4,512 15,176 5,526 Aug. 30............. 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 5,524 Sept. 27............. 187,134 119,949 22,901 44,284 25,864 219,989 190,396 3,173 395 2,693 73,244110,891 4,443 15,485 5,524 Oct. 25............. 189,164 121,498 23,512 44,154 28,204 224,599 194,272 3,485 395 2,509 76,158111,725 5,161 15,743 5,521 Nov. 29............. 191,533 123,590 23,756 44,187 24,988 224,349 194,565 3,014 395 2,390 76,235112,531 5,379 15,836 5,523 Dec. 27............. 195,266 126,614 24,215 44,437 27,195 230,624 201,352 3,488 395 2,287 81,223113,959 5,098 15,911 5,526 1973 Jan. 31............. 195,472 126,055 24,489 44,928 25,931 229,209 199,602 3,235 395 3,376 76,769115,827 5,751 16,406 5,513 Feb. 28*........... 197,603 128,535 23,894 45,174 26,294 231,780 201,349 3,199 395 3,474 76,587117,694 6,082 16,516 5,513 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ MARCH 1973 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 Total3 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 vt . . Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,(5 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,{$ 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13.464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13.464 1970—Dec. 31.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 1971—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 1972—June 30.. 539,093 368,275 59,984110,833 98,252 661,838 549,985 28,398 3,033 9,062 217,641 291,850 32,828 49,623 13,669 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,:229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 437 3,534 113,134 120,060 9,895 22,628 4,700 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,885 12,279 23,248 4,668 1970—Dec. 31.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 1971—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 1972—June 30.. 316,880 220,102 33,258 63,520 60,181 392,043 322,288 15,715 1,838 5,695 128,454 170,586 22,816 28,713 4,606 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,'739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,- m 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 9,855I 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 10,7771 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—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 1972—June 30.. 105,895 75,047 10,450 20,398 26,248 138,021 111,705 11,595 879 1,935 43,965 53,331 8,936 10,645 1,108 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 1,4481 4,083 20,691 19,346 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550i 13,391 5,523I 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233i 7,174 54,747 49,389 658 70i 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310' 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,6361 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 37,675: 15,146 11,629> 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155i 14,02C) 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—June 307. 78,032 48,358 14,341 15,333i 8,696 1 88,802 78,610 791 78 749 34,070i 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565: 15,925i 10,056 94,453 83,380 1,017 85; 924 37,561 43,7921 629 7,403 7,595 1970—Dec. 31.. 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 i 51,322 571 8,326 7,735 1971—Dec. 31.. 108,527 67,188: 17,058; 24,282t 12,092: 123,970 109,841 1,212 2421 1,7231 44,717r 61,9461 582: 9,451 7,875 1972—June 30.. 116,317 73,1261 16,276> 26,915i 11,822: 131,774 115,992 1,088 3iei 1,432» 45,222t 67,934\ 1,076i 10,265i 7,955 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— F C R la S a s i n n s m i d s f u e ic F r m a a D n t b i c I e o C e r n s h b i y p Total Loa l ns T U re . S S a e s . c ­ urit O ie t s h 2 er a C ss a e s t h s 3 c b T a i a l a l o p i i n c a t i t d i ­ t ­ a e a l s l Total3 m D I a n e n t ­ d erba T n i k m 3 e Denla O nd ther Tim 5 e r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N ba b u o n e m f k r s ­ ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31., 1,457 455 761 241 763 2,283 1,872 3:;9 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—Dec. 31. 3,147 2,224 239 684 1,551 5,130 2,923 380 116 19 1,273 1,134 283 480 181 1972—June 30. 4,192 3,230 274 688 1,220 5,884 3,153 384 81 21 1,409 1,258 386 494 206 Total nonmember: 1941 —Dec. 31.. 7,233 3,696 2,270 1,266 3,431 10,992 9,573 4517 5,f>04 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—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 1972—June 30. 120,510 76,357 16,550 27,603 13,042 137,658 119,145 1,472 397 1,453 46,631 69,192 1,462 10,759 8,161 1 Beginning June 30, 1966, loans to farmers directly guaranteed by 9 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, CCC were reclassified as securities, and Export-Import Bank portfolio p. 993. For various changes between reserve city and country status in fund participations were reclassified from loans to securities. This reduced 1960-63, see note 6, p. 587, May 1964 Bulletin. Total loans and increased “Other securities” by about $1 billion. Total 10 Beginning May 6, 1972, two New York City country banks, with loans include Federal funds sold, and beginning with June 1967 securities deposits of $1,412 million, merged and were reclassified as a reserve city purchased under resale agreements, figures for which are included in bank. “Federal funds sold, etc.,” on p. A-24. Beginning June 30, 1971, Farmers Home Administration notes are Note.—Data are for all commercial banks in the United States (includ­ classified as “Other securities” rather than “Loans.” As a result of this ing Alaska and Hawaii, beginning with 1959). Commercial banks represent change, approximately $300 million was transferred to “Other securities” all commercial banks, both member and nonmember; stock savings for the period ending June 30, 1971, for all commercial banks. banks; and nondeposit trust companies. See also table (and notes) at the bottom of p. A-32. For the period June 1941—June 1962 member banks include mutual 2 See first two paragraphs of note 1. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 3 Reciprocal balances excluded beginning with 1942. and one through June 1962. Those banks are not included in insured 4 Includes items not shown separately. See also note 1. commercial banks. 5 See third paragraph of note 1 above. Beginning June 30, 1969, commercial banks and member banks exclude 6 Beginning with Dec. 31, 1947, the series was revised; for description, a small national bank in the Virgin Islands; also, member banks exclude, see note 4, p. 587, May 1964 Bulletin. and noninsured commercial banks include, through June 30, 1970, a small 7 Figure takes into account the following changes beginning June 30, member bank engaged exclusively in trust business. 1969: (1) inclusion of consolidated reports (including figures for all bank- Comparability of figures for classes of banks is affected somewhat by premises subsidiaries and other significant majority-owned domestic changes in F.R. membership, deposit insurance status, and the reserve subsidiaries) and (2) reporting of figures for total loans and for individual classifications of cities and individual banks, and by mergers, etc. categories of securities on a gross basis—that is, before deduction of Data for national banks for Dec. 31, 1965, have been adjusted to make valuation reserves—rather than net as previously reported. them comparable with State bank data. 8 As of Nov. 9, 1972, the definitions of reserve city and country banks Figures are partly estimated except on call dates. were changed (see Nov. 1972 Bulletin, p. 994). The classifications em­ For revisions in series before June 30, 1947, see July 1947 Bulletin, ployed here are the same as those prior to the change in definition, so these pp. 870-71. series are continuous over time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS □ MARCH 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments For To U.S. Treasury b c C a a l n l a l k s d s a a o n te f d l i m T o n a a v o e n n e n t d a s s t t l s i ­ f e s F u e o t r e n c l a d d d . l 2 , ­ s T 3 o , t 4 al C m a c i o n i n e a m d ­ r l ­ ­ A c a tu u l g r l r - 5 - i - o p b T s r u r e o o r c c c ­ a u h r r a r it y s i i i e n n s g g in f s in ti a tu nc ti i o a n l s R t e a e s t a ­ e l O v t i d t h i n o i d e - - - r, Other B se il c ls urities 6 s S g l a o e o t n c c a v a d u t t e l ­ . r O s it e t i h c es u e r s ­ dus­ kers To Banks Others uals3 Total and Notes Bonds rities trial and others certifi­ deal­ cates ers Total:2 1947—Dec. 31.. 116.284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io422,728 9,928286,750108,44310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1971—Dec. 31.517,244 19,954327,656 118,52612,4977,292 3,659 4,591 16,92681,601 74,5148,049 64,930 82,42022,284 1972—June 30.543.28520,598350,910 123,16213,610 ,6084,012 5,041 18,35389,22780,2438,651 60,258 86,59824,923 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,164 3,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 io419,746 9,693284,945 107,68510.314 5,644 3,991 2,425 14,89069,669 63,008 7,319 54,399 58,840 11,869 1971—Dec. 31.514,097 19,623325,764117,60312,482 7,201 3,644 4,405 16,79281,43474,263 7,93964,691 82,09921,921 1972—June 30.539,093 19,568348,707122,06413,5938,491 3,998 4,761 18,26689,048 79,933 ,553 59,984 86,28624,547 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 io337,613 7,356235,63996,0956,1875,408 3,286 2,258 14,035 53,20748,388 6,77639,833 47,2277,558 1971—Dec. 31.405,570 15,373262,826 101,4797,311 6,895 3,167 4,123 15,71361,091 55,839 7,20747,633 65,244 14,494 1972—June 30.422,775 15,561279,588 104,4197,924 ~ ,2603,477 4,520 17,10466,518 59,603 7,76543,708 67,777 16,141 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—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 1972—June 30. 66,597 649 50,98725,972 5,665 768 1,834 4,936 5,288 4,561 1,930 5,338 8,491 1,132 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. 3110 14,365 215 10,556 6,444 337 262 186 1,219 842 862 354 1,564 1,837 192 1971—Dec. 31. 17,162 621 11,693 6,355 527 263 382 1,568 949 1,167 431 1,782 2,688 379 1972—June 30. 18,541 783 12,999 7,179 666 225 242 2,015 1,011 1,054 542 1,662 2,771 325 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 K>121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,706 17,569 2,757 11,944 16,625 1,859 1971—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 1972—June 30. 155,158 8,272105,01441,770 1,803 1,563 1,566 2,136 7,771 24,35820,772 3,275 14,141 23,5104,222 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 io141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 1971—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 1972—June 30. 182,479 5,857110,58729,498 6,023 366 917 308 2,381 35,859 33,215 2,019 22,568 33,005 10,463 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. 3110 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 612 14,875 11,9564,600 1971—Dec. 31. 111,674 4,581 64,830 17,0465,187 398 492 468 1,21320,509 18,675 842 17,297 17,176 7,790 1972—June 30. 120,510 5,037 71,319 18,743 5,686 348 535 521 1,24922,711 20,640 88616,550 18,820 8,782 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for 1941 and 1945 appear in the add to the total and are not entirely comparable with prior figures. Total table on pp. A-20—A-23. loans continue to be shown net. See also note 10. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed 2 Includes securities purchased under resale agreements. Prior to June 30, by CCC were reclassified as “Other securities,” and Export-Import Bank 1967, they were included in loans—for the most part in loans to “Banks.” portfolio fund participations were reclassified from loans to “Other Prior to Dec. 1965, Federal funds sold were included with “Total” loans securities.” This increased “Other securities” by about $1 billion. and loans to “Banks.” 6 Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes), Deposits Accumulated for Payment of Personal at book value; they do not add to the total (shown at book value) and are Loans, p. A-32. not entirely comparable with prior figures. See also note 10. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d 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 B d n e n i o c a s t k e l t ­ h ­ i s s c 7 ju p m D s o a d a t d s e e e n i ­ ­ d t ­ d s 8 j m D e I s n o t t ­ i e c r 7 b e a F i n g 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 f a e e i e f n e r f r c d d i s t k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U i a n o o a n . g s S v v d t s ­ t . a . l g S l a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s etc. 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—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 1972—June 30... 27,119 6,799 25,764 184,468 25,522 3,261 9,083 17,687 10,652 190,710 3,114 49233,110259,50633,21450,117 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31 io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,86018,02439,450 1971—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 1972—June 30... 27,119 6,773 24,713 182,806 25,335 3,064 9,062 17,568 10,172 189,900 3,033 491 33,027258,33232,82849,623 Member—Total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 '1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1969—Dec. 3110.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 1971—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 1972—June 30... 27,119 5,093 15,822 138,566 24,363 2,947 7,630 13,177 8,859 150,382 2,717 38725,668 197,861 31,75239,358 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—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 22,145 5,195 7,285 1972—June 30... 5,375 383 3,601 20,312 10,768 2,165 1,038 816 3,801 26,020 1,175 24 2,331 24,2947,314 7,650 City of Chicago: 1941 _Dec. 31___ 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1969—Dec. 31 io.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1971—Dec. 31... 956 133 202 5,335 1,592 101 363 333 240 6,323 168 1 809 6,749 1,935 1,682 1972—June 30... 1,142 94 199 5,224 1,239 92 261 295 217 6,091 139 2 1,047 7,5292,639 1,857 Other reserve city: 1941—Dec. 31___ 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1969—Dec. 3110.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1971—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 1972—June 30... 11,516 1,574 3,845 45,929 9,026 618 3,527 3,923 2,586 55,192 1,008 18010,809 70,05417,59214,020 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 31 io.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 1971—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 1972—June 30... 9,084 3,042 8,176 67,101 3,329 72 2,804 8,144 2,255 63,070 395 18211,480 95,9834,208 15,831 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—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 1972—June 30 1,706 9,942 45,901 1,159 313 1,453 4,510 1,793 40,328 397 104 7,442 61,645 1,462 10,759 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 □ MARCH 1973 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 se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1972 Feb. 2............... 281,037 10,718 9,633 723 227 135 189,771 81,782 2.315 1,106 5,093 161 2,479 6,058 7,802 9............... 280,464 10,958 10,128 515 207 108 189,478 81,819 2,320 964 4,926 163 2,490 6,158 7,856 16............... 281,544 11,625 10,995 386 177 67 190,115 82,320 2.316 624 5,225 179 2,505 6,207 7,923 2 3 281,250 10,496 9,568 582 238 108 190,667 82,228 2,332 771 5,388 182 2,494 6,219 7,961 1973 Jan. 3............... 327,642 15,144 14,069 413 376 286 227,352 91,442 2,936 978 8,346 272 2,939 7,689 12,835 10............... 323,132 12,967 11,628 625 435 279 225,371 91,045 2,948 1,184 7,922 302 2,913 7,156 12,625 17............... 321,671 12,011 10,684 682 466 179 225,398 91,397 2,959 991 7,800 273 2,923 7,348 12,544 2 4 319,383 11,309 10,255 615 323 116 224,387 91,450 2,975 722 7,454 248 2,932 6,888 12,443 31............... 323,606 12,098 10,999 611 296 192 227,165 92,314 2,995 1,063 7,750 291 2,903 7,203 12,647 Feb. 7*............. 324,773 13,169 11,412 1,366 214 177 228,830 93,320 3,007 1,455 7,340 277 2,906 7,049 12,770 14*.......... 327,745 14,143 13,086 598 245 214 231,598 94,681 3,021 942 7,262 248 2,906 7,391 12,976 21*............. 328,161 14,417 13,116 662 285 354 232,911 95,252 3,015 1,070 7,190 248 2,947 7,450 13,095 28*............. 328,550 13,298 12,135 719 239 205 234,396 96,215 3,010 897 7,331 272 2,946 7,527 13,325 New York City 1972 Feb. 2............... 59,227 1,340 1,319 44,309 25,067 923 3,382 48 607 1,698 1,779 9............... 58,440 980 936 44,155 25,158 800 3,266 49 608 1,779 1,803 16............... 58,493 1,492 1,437 48 44,311 25,324 490 3,431 49 619 1,819 1,850 2 3 58,202 669 638 44,610 25,107 650 3,575 52 611 1,923 1,892 1973 Jan. 3............... 68,644 1,593 1,501 52,618 26,053 813 5,021 34 735 2,247 3,553 10............... 67,305 873 830 51,951 26,078 1,016 4,836 45 705 1,988 3,557 17............... 67,266 934 893 52,017 26,142 835 4,703 29 702 2,217 3,609 2 4 66,654 1,174 1,161 51,291 26,247 600 4,434 33 692 1,922 3,580 31............... 68,430 1,012 972 52,995 26,743 913 4,687 53 683 2,200 3,675 Feb. 7*............. 68,740 1,419 1,360 53,701 27,077 1,324 4,501 53 676 2,022 3,726 14 *............. 69,150 1,528 1,452 54,147 27,491 813 4,432 43 664 2,178 3,826 21*............. 69,244 1,521 1,398 54,558 27,565 905 4,337 34 684 2,216 3,912 28*............. 70,171 1,935 1,885 55,149 27,787 776 4,434 33 673 2,271 4,004 Outside New York City 1972 Feb. 221,810 9,378 8,314 723 227 114 145,462 56,715 2,287 183 1,711 113 1,872 4,360 6,023 222,024 9,978 9,192 515 207 64 145,323 56,661 2,294 164 1,660 114 1,882 4,379 6,053 223,051 10,133 9,558 338 177 60 145,804 56,996 2,290 134 1,794 130 1,886 4,388 6,073 223,048 9,827 8,930 582 238 77 146,057 57,121 2,306 121 1,813 130 1,883 4,296 6,069 1973 Jan. 3.. 258,998 13,551 12,568 394 376 213 174,734 65,389 2 165 3,325 238 2,204 5,442 9,282 10.. 255,827 12,094 10,798 621 402 273 173,420 64,967 2,899 168 3,086 257 2,208 5,168 9,068 17.. 254,405 11,077 9,791 676 437 173 173,381 65,255 2,908 156 3,097 244 2,221 5,131 8,935 24.. 252,729 10,135 9,094 606 323 112 173,096 65,203 2 122 3,020 215 2,240 4,966 8,863 31.. 255,176 11,086 10,027 577 296 186 174,170 65,571 2^939 150 3,063 238 2,220 5,003 8,972 Feb. Ip... 256,033 11,750 10,052 1,337 214 147 175,129 66,243 2 131 2,839 224 2,230 5,027 9,044 14*.. . 258,595 12,615 11,634 573 245 163 177,451 67,190 2; 965 129 2,830 205 2,242 5,213 9,150 21*... 258,917 12,896 11,718 635 285 258 178,353 67,687 2,959 165 2,853 214 2,263 5,234 9,183 28*... 258,379 11,363 10,250 688 239 186 179,247 68,428 2,955 121 2,897 239 2,273 5,256 9,321 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 1972 39,101 809 2,618 24,229 910 15,308 27,881 3,909 4,024 16,199 3,749 Feb. 2 39,155 841 2,661 24,177 905 15,043 27,497 3,488 4,030 16,199 3,780 9 39,263 833 2,534 24,144 886 15,156 27,156 3,237 4,551 15,639 3,729 ..................................16 39,343 781 2,603 24,138 910 15,317 27,455 3,612 4,609 15,535 3,699 ............................23 1973 45,992 2,385 3,252 28,139 1,155 18,992 29,133 6,581 4,462 15,550 2,540 , Jan. 3 46,119 2,377 3,181 28,127 1,148 18,324 28,939 6,384 4,556 15,456 2,543 10 46,245 2,287 3,037 28,118 1,150 18,326 28,912 6,429 4,583 15,339 2,561 ..................................17 46,347 2,270 3,032 28,175 1,179 18.272 28,469 6,173 4,540 15,169 2,587 ....................................24 46,473 2,636 3,156 28,274 1,187 18.273 28,926 6,500 4,689 15,132 2,605 .........................31 46,568 2,776 3,440 28,291 1,203 18,428 27,638 5,341 4,789 14,987 2,521 Feb. 7* 46,741 3,096 4,192 28,343 1,223 18,576 27,005 4,820 4,777 14,927 2,481 14* 46,897 3,000 4,358 28,395 1,235 18,759 25,813 4,449 3,485 15,231 2,648 ......................................21* 46,962 2,895 4,415 28,497 1,228 18,876 25,645 4,579 3,621 15,047 2,398 .....................................28* New York City 1972 4,126 286 1,085 1,940 542 2,798 5,285 955 855 3,045 430 Feb. 2 4,130 318 1,144 1,943 549 2,582 5,097 711 839 3,073 474 9 4,156 330 1,066 1,926 544 2,681 4,731 621 969 2,683 458 ............................16 4,167 234 1,125 1,928 579 2,741 5,012 893 990 2,708 421 ................................23 1973 5,015 582 1,576 2,133 722 4,086 4,701 1,260 704 2,560 177 .Jan. 3 5,032 539 1,561 2,127 729 3,689 4,915 1,473 724 2,589 129 10 5,042 513 1,513 2,130 735 3,796 4,960 1,592 729 2,480 159 ...............................................17 5,069 484 1,515 2,140 749 3,771 4,940 1,545 780 2,389 226 ......................................24 5,096 788 1,561 2,151 733 3,656 5,137 1,669 789 2,442 237 ...........................31 5,115 811 1,632 2,149 742 3,816 4,545 1,112 943 2,330 160 .Feb. Ip 5,141 892 1,924 2,148 730 3,809 4,477 1,023 918 2,370 166 14 v 5,156 935 2,006 2,149 725 3,878 4,248 922 468 2,325 533 ....................................21* 5,191 1,053 2,047 2,153 740 3,932 4,182 1,010 574 2,210 388 ...............................28* Outside New York City 1972 34,975 523 1,533 22,289 468 12,510 22,596 2,954 3,169 13,154 3,319 Feb. 2 35,025 523 1,517 22,234 356 12,461 22,400 2,777 3,191 13,126 3,306 9 35,107 503 1,468 22,218 342 12,475 22,425 2,616 3,582 12,956 3,271 ...................................................16 35,176 547 1,478 22,210 331 12,576 22,443 2,719 3,619 12,827 3,278 .............23 1973 40,977 1,803 1,676 26,006 433 14,906 24,432 5,321 3,758 12,990 2,363 .Jan. 3 41,087 1,838 1,620 26,000 419 14,635 24,024 4,911 3,832 12,867 2,414 10 41,203 1,774 1,524 25,988 415 14,530 23,952 4,837 3,854 12,859 2,402 ..................................17 41,278 1,786 1,517 26,035 430 14,501 23,529 4,628 3,760 12,780 2,361 .........................24 41,377 1,848 1,595 26,123 454 14,617 23,789 4,831 3,900 12,690 2,368 .................31 41,453 1,965 1,808 26,142 461 14,612 23,093 4,229 3,846 12,657 2,361 Feb. 7* 41,600 2,204 2,268 26,195 493 14,767 22,528 3,797 3,859 12,557 2,315 1 4p 41,741 2,065 2,352 26,246 510 14,881 21,565 3,527 3,017 12,906 2,115 .....................................................21* 41,771 1,842 2,368 26,344 488 14,944 21,463 3,569 3,047 12,837 2,010.....................................................28* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ MARCH 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assetsI Wednesday and and process with rency with sidiar­ Other total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants3 other partici­ others pation4 Large banks— Total 1972 Feb. 2............................... 52,667 8,489 36,837 1,533 5,808 32,493 19,477 3.488 7,043 937 16,294 360,769 9............................... 52,531 8,438 36,703 1,546 5,844 29,959 19,413 3.488 8,862 933 16,021 359,140 16............................... 52,648 8,408 36,706 1,542 5,992 33,385 21,013 3,519 8.658 933 15,786 364,838 2 3 52,632 8,412 36,667 1,516 6,037 32,783 19,509 3,742 9^399 933 15,881 363,497 1973 Jan. 3............................... 56,013 9,242 37,925 1,742 7,104 34,668 21,587 4,377 10,459 1,108 17.662 417,503 10............................... 55,855 9,073 38,067 1,738 6,977 28,481 19,574 4,280 9,811 1,106 17,359 403,743 17............................... 55,350 8,960 37,744 1,745 6,901 30,353 21,415 4.144 9,098 1,134 17,181 404,996 2 4 55,218 8,847 37,650 1,763 6,958 29,201 21,565 4.144 9,169 1,139 17,259 401.680 31............................... 55,417 8,942 37,802 1,770 6,903 30,863 20,055 3,981 9,658 1,143 17,805 407,111 Feb. 7*............................. 55,136 8,702 37,689 1,772 6,973 26,613 17,356 3,678 9.499 1.145 17,952 401,016 14*...................... 54,999 8,643 37,598 1,768 6,990 30,274 20,862 3,994 9,101 1.145 18,354 411,475 21*............................. 55,020 8,599 37,738 1,765 6,918 32,735 17,190 4,081 10,119 1,148 18,247 411.681 28*............................. 55,211 8,579 37,735 1,750 7,147 31,881 21,098 3,924 10,577 1,158 18.662 415,850 New York City 1972 Feb. 2. 9 .. ............................ 8 8 , , 2 2 0 93 8 1 1 , , 6 6 5 0 9 2 5 5 , , 4 4 1 0 2 7 2 2 8 9 5 6 9 90 3 3 7 1 1 4 3 , , 1 8 3 1 3 2 4 4 , , 9 96 2 9 6 4 4 3 2 3 8 3 1 , , 5 3 4 8 3 4 4 4 2 2 5 5 5 5 , , 1 07 14 7 8 8 5 6 , , 6 6 4 9 2 4 16............................... 7,959 1,572 5,248 278 861 14,426 5,534 426 3,193 424 4,972 87,468 2 3 7,911 1,619 5,164 262 866 14,008 4,867 435 3,652 424 5,092 86,680 1973 Jan. 3............................. 9,732 2,867 5,289 547 1,029 10,071 5,966 502 3.526 545 5,369 94,623 1 0 9,566 2,763 5,246 538 1,019 9,441 5 106 490 3,935 548 5,137 91,962 17............................. 9,355 2,749 5,062 539 1,005 10,323 5 ,606 484 3,218 583 5,136 92,616 2 4 9,249 2,660 5,053 542 994 11,447 5 ,417 472 3,977 582 5,154 93,703 31............................. 9,286 2,653 5,040 538 1,055 11,929 5,640 475 4,012 584 5,281 96,351 Feb. 7*........................... 9,075 2,530 5,038 517 990 9,059 ,324 459 4,001 586 5,498 92,667 14*........................... 8,998 2,476 5,020 522 980 10,975 ,598 495 3.527 586 5,593 95,924 21*........................... 8,917 2,349 5,066 529 973 10,782 ,879 476 3,899 588 5,827 95,695 28*........................... 8,905 2,224 5,120 508 1,053 11,924 ,383 455 4,239 596 6,056 98,824 Outside New York City 1972 Feb. 2. 44,374 6,830 31,425 1,248 4,871 18,360 14,551 3,055 5,659 512 11,180 275,127 44,323 6.836 31,296 1,250 4,941 16,147 14,444 3,060 5,319 508 10,944 272,446 16. 44,689 6.836 31,458 1,264 5,131 18,959 15,479 3,093 5,465 509 10,814 277,370 23. 44,721 6,793 31,503 1,254 5,171 18,775 14,642 3,307 5,747 509 10,789 276,817 1973 Jan. 46,281 6,375 32,636 1,195 6,075 24,597 15,621 3,875 6,933 563 12,293 322,880 46,289 6,310 32,821 1,200 5,958 19,040 14,468 3,790 5,876 558 12,222 311,781 6,211 32,682 1,206 5,896 20,030 15,809 3,660 5,880 551 12,045 312,380 6,187 32,597 1,221 5,964 17,574 16,148 3,672 5,192 557 12,105 307,977 46,131 6,289 32,762 1,232 5,848 18,934 14,415 3,506 5,646 559 12,524 310,760 Feb. Ip. , 46,061 6,172 32,651 1,255 5,983 17,554 13,032 3,219 5,498 559 12,454 308,349 14*. 46,001 6,167 32,578 1,246 6,010 19,299 15,264 3,499 5,574 559 12,761 315,551 21*. 6,250 32,672 1,236 5,945 21,953 12,311 3,605 6,220 560 12,420 315,986 28*. 6,355 32,615 1,242 6,094 19,957 15,715 3,469 6,338 562 12,606 317,026 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 Dopolit­ 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 banks Large banks— Total 1972 146,564 99,963 7,714 4,531 22,211 739 716 2,488 8,202 142,532 55,870 61,364 17,534 2,262 4,993 ...............Feb. 2 143,520 97,979 6,436 4,765 23,783 687 666 2,414 6,790 142,933 56,032 61,442 17,607 2,328 5,038 ..........................9 145,910 101,714 6,403 3,193 23,677 686 690 2,325 7,222 143,205 56,218 61,570 17,544 2,318 5,060 ..........................16 146,174 100,311 6,323 4,471 24,809 643 753 2,527 6,337 144,122 56,422 62,044 17,717 2,313 5,131 ..........................23 1973 169,768 121.308 7,221 6,469 22.412 984 963 3,456 6,955 160,661 58,572 72,334 19,756 2,953 6,386 ...............Jan. 3 154,963 112,951 6,833 3,501 20,286 1,009 824 3,289 6,270 161,603 58,515 72,601 20,516 2,829 6,508 ..........................10 156,747 114,433 6,784 3.388 20.412 894 782 3,251 6,803 161,658 58,373 72,915 20,478 2,770 6,474 ..........................17 151,953 108,351 6,366 5,611 19,007 768 936 3,154 7,760 162,536 58,311 73,680 20,606 2,809 6,498 ..........................24 156,909 110,248 7,180 6,289 21,992 839 875 3.156 6,330 162,936 58,186 74,310 20,332 2,794 6,685 ..........................31 148,485 105,669 6,919 4,700 20,168 781 889 2,999 6,360 164,388 58,175 75,143 20,785 2,909 6,745 ...............Feb. 7* 154,547 108,612 6,851 9.388 18,355 749 758 3,163 6,671 165.250 58,088 75,966 20,731 2,918 6,890 ....................14* 156,859 110.309 6,708 7,064 21,426 772 991 3,077 6,512 166,422 58,110 76,877 20,948 2,920 6,913 ..........................21* 157,139 109,360 6,965 7,230 22,512 656 895 3.157 6,364 168.250 58,104 78,197 21,391 2,963 6,916 ..........................28* New York City 1972 41,383 21,811 1,173 823 9,880 399 567 1,764 4,966 23,499 5,502 12,333 1,679 1,178 2,695 ...............Feb. 2 42,170 21,995 386 1,007 12,236 370 526 1,695 3,955 23,528 5,532 12,273 1,709 1,209 2,713 ..........................9 42,512 23,153 405 548 11,723 358 538 1,625 4,162 23,524 5,562 12,283 1,650 1,196 2,736 ..........................16 42,538 22,237 388 843 12,957 332 605 1,736 3,440 23,780 5,600 12,443 1,674 1,194 2,772 ..........................23 1973 43,814 26,795 428 1,193 8,923 569 788 2,240 2,878 27,210 5,627 14,648 2,025 1,653 3,118 ...............Jan. 3 40,137 24,138 370 607 8,685 576 668 2,334 2,759 27,699 5,618 14,819 2,399 1,549 3,184 ..........................10 41,574 24,983 539 544 8,834 498 648 2,354 3,174 27,667 5,594 14,982 2,302 1,473 3,188 ..........................17 41,878 24,185 350 1,085 8,294 409 797 2,290 4,468 27,798 5,572 15,108 2,301 1,499 3,220 ..........................24 43,907 24,973 574 1,187 11.030 463 732 2,285 2,663 28,112 5,549 15,508 2,085 1,488 3,388 ..........................31 39,685 23,117 464 917 8,736 420 739 2,151 3,141 29,043 5,543 16,088 2,336 1,596 3,390 ...............Feb. 7* 40,300 23,799 398 1,888 7,460 399 615 2,200 3,541 29,274 5,531 16,280 2,232 1,600 3,529 ..........................14* 42,204 24,422 436 1,351 9,216 403 848 2,202 3,326 29,742 5,533 16,764 2,190 1,605 3,546 ..........................21* 43,650 24,381 372 1,428 11.031 341 748 2,339 3,010 30,616 5,515 17,451 2,423 1,616 3,509 ..........................28* Outside New York City 1972 105,181 78,152 6,541 3,708 12,331 340 149 724 3,236 119,033 50,368 49,031 15,855 1,084 2,298 ...............Feb. 2 101,350 75,984 6,050 3,758 11,547 317 140 719 2,835 119,405 50,500 49,169 15,898 1.119 2,325 .......................... 9 103,398 78,561 5,998 2,645 11,954 328 152 700 3,060 119,681 50,656 49,287 15,894 1,122 2,324 ..........................16 103,636 78,074 5,935 3,628 11,852 311 148 791 2,897 120,342 50,822 49,601 16,043 1.119 2,359 ..........................23 1973 125,954 94,513 6,793 5,276 13,489 415 175 1,216 4,077 133,451 52,945 57.686 17,731 1,300 3,268 ...............Jan. 3 114,826 88.813 6,463 2,894 11,601 433 156 955 3,511 133,904 52,897 57,782 18,117 1,280 3,324 ..........................10 115,173 89,450 6,245 2,844 11,578 396 134 897 3,629 133,991 52,779 57,933 18,176 1,297 3,286 ..........................17 110,075 84,166 6,016 4,526 10,713 359 139 864 3,292 134,738 52,739 58,572 18,305 1,310 3,278 ..........................24 113,002 85,275 6,606 5,102 10,962 376 143 871 3,667 134,824 52,637 58,802 18,247 1,306 3,297 ..........................31 108,800 82,552 6,455 3,783 11,432 361 150 848 3,219 135,345 52,632 59,055 18,449 1,313 3,355 ...............Feb. 7* 114,247 84.813 6,453 7,500 10,895 350 143 963 3,130 135,976 52,557 59.686 18,499 1,318 3,361 ..........................14* 114,655 85,887 6,272 5,713 12,210 369 143 875 3,186 136,680 52,577 60,113 18,758 1,315 3,367 ..........................21* 113,489 84,979 6,593 5,802 11,481 315 147 818 3,354 137,634 52,589 60,746 18,968 1,347 3,407 ..........................28* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ MARCH 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Larg;e negotiia ble Fed­ Total time CD’s Gross eral Other Total loans incliu ded in t ime liabili­ Wednesday funds liabili­ capital Total and De­ and sa>rings deposits11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed10 Total to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1972 Feb. 2........................ 23,653 2 1,060 15,401 4,106 85 27,366 190,047 270,595 87,329 33,356 20,572 12,784 1,301 9........................ 24,856 155 1,086 15,010 4,119 76 27,385 189,467 269,495 85,013 33,465 20,498 12,967 1,062 16........................ 27,302 1,086 15,783 4,120 76 27,348 189,912 269,716 85,655 33,436 20,518 12,918 1,006 2 3 25,483 1,093 15,063 4,122 76 27,364 190,814 270,901 84,111 34,012 20,852 13,160 1,068 1973 Jan. 3........................ 35,849 767 2,262 14,481 4,278 70 29,367 226,042 311,188 106,219 43,930 27,718 16,212 1,121 10........................ 35,226 734 2,359 14,723 4,323 70 29,742 224,333 309,127 102,695 44,845 28,021 16,824 1,625 17........................ 34,664 932 2,516 14,560 4,337 73 29,509 224,438 308,700 102,594 44,856 28,109 16,747 1,419 2 4 33,661 1,789 2,696 15,082 4,338 70 29,555 223,171 306,858 98,314 45,386 28,547 16,839 1,785 31........................ 33,860 1,017 2,675 15,554 4,370 70 29,720 225,628 309,971 97,765 45,783 29,011 16,772 1,413 Feb. Ip...................... 35,111 752 2,772 15,222 4,373 70 29,843 227,811 310,585 97,004 47,111 29,692 17,419 1,391 14 p................................... 37,632 2,532 2,452 14,869 4,372 70 29,751 229,559 311,563 96,530 47,956 30,542 17,414 694 21 p................................... 36,123 183 2,459 4,373 69 29,769 231,212 312,045 95,634 48,975 31,363 17,612 1,157 28 p...................... 36,537 1,247 2,326 4,397 63 29,959 232,664 313,520 95,516 50,509 32,325 18,184 784 New York City 1972 Feb. 2. 9 ... .................... 6 6 , , 2 5 8 6 3 4 155 2 1 2 69 0 881 1 1 , , 1 2 9 0 9 2 6 6 , , 9 9 7 7 9 4 4 43 4 , , 8 0 8 4 1 4 5 5 7 7 , , 6 18 2 6 2 1 1 6 5 , , 5 11 47 5 1 1 1 1 , , 0 1 6 0 6 0 7 7 , , 1 09 6 8 4 4 3 , , 0 9 0 0 2 2 9 7 4 39 7 16........................ 7,161 245 1,201 6,968 44,036 56,726 15,815 11,178 7,186 3,992 616 2 3 6,197 280 : 1,204 6,959 44,407 57,330 14,730 11,374 7,337 4,037 702 1973 Jan. 3........................ 8,748 180 508 ! 1,224 7,551 52,128 66,561 23,627 14,496 9,512 4,984 784 10........................ 9,119 588 1,236 7,549 51,455 65,936 21,404 15,068 9,729 5,339 1,160 17........................ 8,346 777 1,239 7,526 51,545 65,860 21,873 15,043 9,831 5,212 1,133 2 4 8,035 475 912 i 1,238 7,521 50,820 65,009 21,052 15,127 9,898 5,229 1,459 31........................ 8,439 1,107 I 1,250 7,586 52,247 66,670 19,761 15,314 10,175 5,139 1,122 Feb. 1 I 4® p. . . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . . . . 1 8 0 , ,1 2 4 9 3 4 1,309 1 1, , 0 1 0 6 5 2 ! i 1 1 , ,2 2 5 5 1 1 7 7 , ,5 5 8 9 9 4 5 53 2 , , 3 9 3 4 1 9 6 6 6 6, , 5 8 6 0 9 6 2 1 0 9 , , 9 9 7 7 3 7 1 16 6, , 6 3 0 9 3 4 1 1 0 1 , , 8 0 1 6 3 4 5 5, , 5 5 8 3 1 9 1,0 5 9 0 5 3 21®...................... 8,383 950 1,256 7,575 53,746 66,911 20,855 16,980 11,541 5,439 834 28 p...................... 8,446 269 972 1,265 7,651 54,146 67,233 19,267 17,798 12,050 5,748 559 Outside New York City 1972 Feb. 2........................ 17,370 891 9,271 2,907 85 20,387 146,003 212,973 70,782 22,290 13,408 8,882 354 9........................ 18,292 866 ' 2,917 76 20,411 145,586 212,309 69,898 22,365 13,400 8,965 323 16........................ 20,141 841 * 2,919 76 20,380 145,876 212,990 69,840 22,258 13,332 8,926 390 2 3 19,286 813 9,341 2,918 76 20,405 146,407 213,571 69,381 22,638 13,515 9,123 366 1973 Jan. 3........................ 27,101 587 1,754 i 3,054 70 21,816 173,914 244,627 82,592 29,434 18,206 11,228 337 1 0 26,107 734 1,771 ' 3,087 70 22,193 172,878 243,191 81,291 29,777 18,292 11,485 465 17........................ 26,318 932 1,739 i 3,098 73 21,983 172,893 242,840 80,721 29,813 18,278 11,535 286 2 4 25,626 1,314 1,784 * 3,100 70 22,034 172,351 241,849 77,262 30,259 18,649 11,610 326 31........................ 25,421 1,017 1,568 i 3,120 70 22,134 173,381 243,301 78,004 30,469 18,836 11,633 291 Feb. 1 I 4 p p . .. . .. . . . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . .. . . . . 2 2 7 6 , , 4 81 8 7 9 1,2 7 2 5 3 2 1 1 , , 6 44 1 7 0 t > 3 3, , 1 1 2 2 1 2 7 7 0 0 2 2 2 2, ,1 24 6 9 2 1 17 7 6 4 , , 2 8 2 6 8 2 2 2 4 4 4 4, , 7 0 5 1 7 6 7 76 6 , , 0 5 3 5 1 3 3 3 0 1 , , 7 3 1 5 7 3 1 1 8 9 , ,4 87 78 9 1 1 1 1, , 8 8 7 3 5 8 2 19 9 1 6 2 2 1 8 p * . . . . .. . . . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . . . .. . .. . . . .. . .. . . . . 2 28 7 , , 0 7 9 4 1 0 9 1 7 8 8 3 1 1 , , 5 3 0 5 9 4 > ' 3 3 , , 1 1 1 3 7 2 6 6 3 9 2 22 2, ,3 19 08 4 1 17 7 8 7 , , 5 4 1 6 8 6 2 24 4 6 5 , , 2 1 8 3 7 4 7 76 4 , , 2 7 4 7 9 9 3 3 2 1 , , 7 9 1 9 1 5 2 1 0 9 , , 2 8 7 2 5 2 1 1 2 2 , , 1 4 7 3 3 6 2 3 2 2 5 3 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

MARCH 1973 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1973 1973 1972 1972 1972 Industry Feb. Feb. Feb. Feb. Jan. 2nd 1st 28 21 14 7 31 Feb. Jan. Dec. IV III II half half Durable goods manufacturing: Primary metals.................................... 2,111 2,130 2,145 2,117 2,052 59 34 -14 20 -99 29 -79 88 Machinery............................................ 5,007 5,005 4,924 4,809 4,712 295 109 318 496 -101 -75 395 -172 Transportation equipment................ 2,197 2,260 2,263 2,218 2,205 -8 111 -41 -173 -85 -318 -258 -310 Other fabricated metal products... 1,838 1,840 1,820 1,788 1,766 72 7 29 -24 81 -21 57 -14 Other durable goods.......................... 3,193 3,154 3,157 2,988 2,891 302 -13 74 -13 82 185 69 340 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,503 3,474 3,393 3,415 3,359 144 -88 269 640 187 -42 827 -273 Textiles, apparel, and leather........... 2,936 2,872 2,823 2,751 2,680 256 -14 -94 -351 185 282 -166 567 Petroleum refining.............................. 1,077 1,079 1,096 1,089 1,092 -15 115 49 10 -24 -86 -14 -183 Chemicals and rubber....................... 2,316 2,263 2,268 2,163 2,132 184 275 85 -9 -253 -20 -262 -135 Other nondurable goods................... 1,815 1,762 1,739 1,745 1,739 76 45 4 -65 95 -94 30 -158 Mining, including crude petroleum and natural gas.............................. 3,839 3,846 3,855 3,856 3,865 -26 236 -3 -33 58 -66 25 -203 Trade: Commodity dealers................... 2,034 1,980 2,028 1,997 1,935 99 141 173 481 141 -303 622 -504 Other wholesale......................... 4,895 4,834 4,788 4,685 4,650 245 -4 73 61 155 105 216 5 Retail............................................ 5,248 5,137 5,193 5,081 4,912 336 -88 -359 166 307 140 473 405 Transportation........................................ 5,618 5,590 5,575 5,543 5,559 59 -31 167 235 -277 30 -42 -14 Communication....................................... 2,094 2,038 2,055 2,003 1,979 115 120 123 147 277 195 424 121 Other public utilities.............................. 3,897 3,890 3,838 3,744 3,651 246 65 260 531 408 251 939 -79 Construction............................................ 4,858 4,850 4,805 4,778 4,762 96 98 63 38 326 324 364 483 Services...................................................... 9,342 9,279 9,206 9,120 9,070 272 -62 233 558 -64 364 494 764 All other domestic loans....................... 6,365 6,277 6,146 6,011 5,979 386 144 306 168 71 -139 239 -58 Bankers’ acceptances.............................. 1,213 1,254 1,264 1,204 1,270 -57 -281 207 302 -202 -300 100 -843 Foreign commercial and industrial loans.................................................. 4,012 3,972 3,934 3,993 3,938 74 58 165 414 77 83 491 164 Total classified loans.............................. 79,408 78,786 78,315 77,098 76,198 3,210 977 2,087 3,599 1,345 524 4,944 -9 Total commercial and industrial loans. *96,215 95,252 94,681 93,320 92,314 3,901 1,211 2,461 4,472 1,677 1,327 6,149 1,184 See Note to table below. “TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1973 1972 1972 1972 Industry Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June 2nd 28 31 27 29 25 27 30 26 28 IV III II I half Durable goods manufactur­ ing: Primary metals..................... 1,305 1,331 1,268 1,278 1,282 1,303 1,314 1,355 1,370 -35 -67 27 -19 -102 Machinery............................ 2,298 2,264 2,154 2,034 1,907 1,905 1,963 1,931 1,954 249 -49 -113 -218 200 Transportation equipment. 1,221 1,247 1,205 1,256 1,201 1,307 1,265 1,243 1,359 -102 -52 -133 -128 -154 Other fabricated metal products............................ 765 749 720 707 680 679 713 710 675 41 4 -11 -27 45 Other durable goods........... 1,465 1,346 1,239 1,196 1,193 1,188 1,147 1,130 1,182 51 6 37 10 57 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,322 1,300 1,234 1,191 1,182 1,079 1,079 1,029 926 155 153 19 -114 308 Textiles, apparel, and leather................................ 840 766 723 699 731 711 677 690 654 12 57 15 63 69 Petroleum refining............... 778 781 698 681 658 679 653 685 694 19 -15 -63 -135 4 Chemicals and rubber........ 1,438 1,357 1,153 1,143 1,190 1,159 1,178 1,190 1,224 -6 -65 10 -227 -71 Other nondurable goods.. 1,062 1,004 894 913 939 918 879 856 872 -24 46 -106 -46 22 Mining, including crude pe­ troleum and natural gas. 2,821 2,895 2,685 2,726 2,748 2,679 2,724 2,723 2,667 6 12 -205 -167 18 Trade: Commodity dealers.. 125 125 121 121 123 107 107 110 109 14 -2 -17 11 12 Other wholesale......... 1,004 979 894 880 876 864 845 886 883 26 -23 -26 8 7 Retail............................ 1,733 1,663 1,592 1,588 1,497 1,444 1,376 1,346 1,298 152 150 -40 -37 298 Transportation......................... 4,276 4,252 4,180 4,070 4,078 4,086 4,188 4,234 4,305 94 -219 -69 -66 -125 Communication....................... 771 748 682 549 537 561 510 511 497 121 64 63 7 185 Other public utilities............... 2,244 2,060 1,975 1,825 1,759 1,688 1,623 1,455 1,406 287 282 269 -179 569 Construction............................ 1,627 1,622 1,558 1,528 1,520 1,550 1,456 1,397 1,408 8 142 -13 177 150 Services...................................... 4,174 4,106 4,026 3,999 3,951 3,862 3,826 3,760 3,719 164 143 45 186 307 All other domestic loans .... 1,777 1,698 1,597 1,532 1,459 1,554 1,471 1,532 1,423 43 131 -260 252 174 Foreign commercial and in­ dustrial loans................... 2,327 2,356 2,366 2,264 2,177 2,143 2,069 2,033 2,038 223 105 94 -132 328 Total loans................................ *35,373 34,649 32,964 32,180 31,688 31,466 31,063 30,806 30,663 1,498 803 -477 -781 2,301 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 arid industrial loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 DEMAND DEPOSIT OWNERSHIP □ MARCH 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 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 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 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........................................................................................ 20.2 92.6 54.7 1.4 12.3 181.2 17.9 97.6 60.5 1.4 11.0 188.4 Sept........................................................................................ 18.0 101.5 63.1 1.4 11.4 195.4 Dec......................................................................................... 18.8 109.4 64.9 1.5 12.2 206.8 Weekly reporting banks: 1971—Dec......................................................................................... 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........................................................................................ 14.0 55.9 25.0 1.2 6.0 102.1 Apr.......................................................................................... 14.3 56.9 27.0 1.2 5.9 105.4 May........................................................................................ 13.7 56.2 25.4 1.2 5.7 102.1 14.1 57.3 25.7 1.3 6.0 104.3 July......................................................................................... 14.3 58.5 26.1 1.3 6.0 106.3 Aug......................................................................................... 13.6 57.4 26.0 1.3 5.7 104.0 Sept........................................................................................ 13.7 59.0 26.2 1.3 6.2 106.4 Oct.......................................................................................... 14.1 60.0 26.2 1.3 6.1 107.8 14.5 60.5 26.7 1.3 6.2 109.2 Dec......................................................................................... 14.7 64.4 27.2 1.4 6.6 114.3 1973—Jan.**...................................................................................... 15.0 63.1 27.8 1.4 6.8 114.1 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, Dec. 31, June 30, Class of Dec. 31, Dec. 31, Dec. 31, June 30, bank 1969 1970 1971 1972 bank 1969 1970 1971 1972 All commercial.... 1,131 804 680 595 All member—Cont. Insured................. 1,129 803 677 592 Other reserve city................ 304 143 112 73 National member 688 433 387 340 571 437 371 346 State member.... 188 147 95 79 All nonmember........................ 255 224 197 177 All member............. 876 580 482 419 253 223 195 173 Noninsured........................... 2 1 2 3 Note.—These hypothecated deposits are excluded from Time deposits resulted from a change in Federal Reserve regulations. See June 1966 and Loans at commercial banks beginning with June 30, 1966, as Bulletin, p. 808. shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal­ These deposits have not been deducted from Time deposits and Loans ment loans), and in the table at the bottom of p. A-18. These changes for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24 and A-25 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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—Nov. 1........... 2,414 1,514 900 1,715 296 1,419 8........... 2,387 1,566 821 1,700 297 1,403 15........... 2,442 1,591 851 1,748 296 1,452 22........... 2,412 1,652 760 1,755 301 1,454 29........... 2,489 1,641 848 1,774 308 1,466 Dec. 6........... 2,567 1,670 897 1,774 309 1,465 13........... 2,563 1,639 924 1,787 309 1,478 20........... 2,653 1,726 927 1,787 309 1,478 27........... 2,598 1,674 924 1,783 306 1,477 1973—Jan. 3........... 2,737 1,775 962 1,858 365 1,493 10........... 2,750 1,819 931 1,790 307 1,483 17........... 2,691 1,804 887 1,775 296 1,479 24........... 2,691 1,775 916 1,820 299 1,521 31.......... 2,609 1,734 875 1,822 296 1,526 Feb. 7........... 2,641 1,711 930 1,841 308 1,533 14 . . 2,694 1,753 941 1,839 308 1,531 21........... 2,946 2,050 896 1,798 304 1,494 28........... 3,115 2,072 1,043 1,848 296 1,552 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 1965............................ 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966............................ 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 1967............................ 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968............................ 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969............................ 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970............................ 31,765 409 12,262 1,940 17,154 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............................ 31,103 495 10,923 1,478 18,207 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972—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 Aug................. 32,998 705 12,239 1,716 18,338 6,639 2,298 1,829 469 96 287 3,958 2,532 1,631 2,476 Sept................ 32,645 775 12,313 1,593 17,964 6,602 2,403 1,833 569 62 261 3,876 2,538 1,646 2,418 Oct.................. 34,073 821 12,737 1,708 18,807 6,748 2,394 1,881 514 70 219 4,065 2,585 1,786 2,377 34,067 876 12,345 1,709 19,137 6,864 2,529 1,995 535 63 199 4,073 2,621 1,844 2,400 Dec................. r34,721 930 11,242 1,707 *•20,842 6,898 2,706 2,006 700 106 179 3,907 2,531 1,909 2,458 1973—Jan.................. 35,727 911 11,641 1,795 21,386 6,564 2,384 1,825 560 141 198 3,841 2,337 1,948 2,279 > 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 □ MARCH 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Effective date Rate Effective date Rate Effective date Rate 1956—Apr. 13............ 1972—Feb. 28. 43/8-41/2- 1972—Oct. 2, 5!/2"-534 Aug. 21............ m 434- 4, 5%-5%m Mar. 13. 4Vi-434- 11, 534- 1957—Aug. 6............ 7 23. 434- 16, 534«-57/8 634 27. 434--4 7/8-5 1958—Jan. 22............ Nov. 6, 53/4- Apr. 21............ 6 % Apr. 3. 434.-5 20. 534--57/8 Sept. 11............ 6% 5. 5- 6 17. 5--514 Dec. 26. 534.-6 1959—May 18............ 534 27, 534-6- Sept. 1............ 5V4-5V2 May 1. 5--51/8-514 5V4 30. 5- 1973—Jan. 4 1960—Aug. 23............ 5lA-5lA June 12. 5--5i/8 Feb. 2, 6--614 1965—Dec. 6............ 51/1 26. 5-514- 14. 6- 1966—Mar. 10............ 6 5 Vi-6 July 3. 514--53/8 2 2 7 6 . . 6 6 - 1 - 4 6 - V4 June 29............ 5% 10, 51/4--53/8- Aug. 16............ 51/2 5V4*-5% 17, 5%«-5% 1967—Jan. 26-27.... 5%»-5% 31, 514--53/8- Mar. 27............ 5Vi- 5% Nov. 20............ 5%-5%" Aug. 11, 5%»-5% 1968—Apr. 19............ 5%-5%i 2 1 1 4 , 5 51 i4 /4 - --53/8 Sept. 25............ 514-53/8- 25, 514--53/8- Nov. 13............ 5V4- 51/2 Dec. 2............ 5%-5%« 29, 514-53/8- 18............ 5%« 51/2- 1969—Jan. 7............ 5-51/8-514- Sept. 4 514-51^- Mar. 17............ 434-5-51/4- 5 5%» June 9............ 4y8-434_5- 11 5Vi--55/8 4%-4%«-5 25 51/2--55/8- 534 Note.—Beginning Nov. 1971, several banks adopted a floating prime rate keyed to money market variables. - 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 Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 1972 Short-term 35 centers......................................... 6.33 5.84 7.52 7.27 7.10 6.72 6.60 6.20 6.24 5.91 6.14 5.59 New York City.......................... 6.09 5.55 7.34 6.82 6.79 6.37 6.27 5.95 6.01 5.55 6.05 5.47 7 Other Northeast..................... 6.61 6.14 7.78 7.39 7.35 6.89 6.78 6.44 6.41 6.12 6.39 5.81 8 North Central......................... 6.27 5.79 7.22 7.02 6.96 6.47 6.57 6.04 6.17 5.77 6.11 5.63 7 Southeast.................................. 6.56 6.06 7.64 7.55 7.15 6.96 6.74 6.30 6.38 6.09 6.21 5.41 8 Southwest................................. 6.36 6.07 7.38 7.14 6.97 6.64 6.52 6.17 6.27 6.17 6.04 5.72 4 West Coast............................... 6.41 5.82 7.79 7.61 7.31 6.95 6.71 6.39 6.30 5.96 6.24 5.53 Revolving credit 35 centers......................................... 6.11 5.83 6.87 6.78 6.81 6.51 6.47 5.93 6.27 5.83 6.05 5.81 New York City.......................... 6.01 5.82 7.51 7.06 6.35 6.21 6.27 5.73 6.19 5.61 5.99 5.83 7 Other Northeast..................... 6.22 5.69 6.26 7.68 6.92 6.38 6.23 6.09 6.09 5.75 6.21 5.62 8 North Central......................... 6.12 6.12 8.14 7.02 6.86 6.35 6.42 5.79 6.35 6.11 6.03 6.15 7 Southeast.................................. 6.20 5.66 5.97 6.07 6.55 6.30 7.93 6.13 5.84 5.62 5.75 5.44 8 Southwest................................. 6.50 6.42 6.98 6.93 6.76 6.63 6.75 6.28 6.55 6.37 6.36 6.47 4 West Coast.............................. 6.14 5.72 7.14 6.98 6.90 6.68 6.42 5.97 6.29 5.75 6.08 5.67 Long-term 35 centers......................................... 6.67 6.31 7.43 7.47 7.15 6.80 6.82 6.51 6.76 6.27 6.61 6.28 New York City.......................... 6.26 5.87 7.14 5.87 7.03 6.29 6.08 6.18 5.78 5.74 6.29 5.85 7 Other Northeast..................... 6.74 6.59 7.37 7.64 7.10 6.94 6.70 6.73 6.66 6.42 6.73 6.54 8 North Central......................... 7.35 6.59 6.94 6.79 7.09 6.82 7.29 6.67 7.90 6.52 7.30 6.58 7 Southeast.................................. 7.79 7.37 9.67 6.67 7.15 6.17 7.51 7.07 7.88 8.25 8.23 8 Southwest................................. 6.72 6.36 6.81 8.60 7.14 7.57 7.20 6.69 6.17 5.54 6.76 6.45 4 West Coast.............................. 6.38 6.49 7.42 7.62 7.44 6.66 6.67 6.07 6.77 6.82 6.27 6.46 Note.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 468- 77 of the June 1971 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 o INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers’ eral 3-month bills 5 6-month bills5 9- to 12-month issues 5 Period placed accept­ funds 3- to 5directly, ances, rate 3 year 4- to 6- 3- to 6- 90 days 1 Ra9t0e- 119 Market Rate Market 1-year issues7 days months months2 on new yield on new yield bill (mar­ Other6 issue issue ket yield) 1966. 5.55 5.42 5.36 5.11 4.881 4.86 5.082 5.06 5.07 5.17 5.16 1967. 5.10 4.89 4.75 4.22 4.321 4.29 4.630 4.61 4.71 4.84 5.07 1968. 5.90 5.69 5.75 5.66 5.339 5.34 5.470 5.47 5.46 5.62 5.59 1969. 7.83 7.16 7.61 8.22 6.677 6.67 6.853 6.86 6.79 7.06 6.85 1970. 7.72 7.23 7.31 7.17 6.458 6.39 6.562 6.51 6.49 6.90 7.37 1971. 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.52 4.67 4.75 5.77 1972. 4.67 4.69 4.52 4.47 4.44 4.071 4.07 4.466 4.49 4.77 4.86 5.85 1972—Feb.. 3.81 3.93 3.78 3.52 3.29 3.180 3.20 3.594 3.63 4.06 4.07 5.51 Mar.. 4.10 4.17 4.03 3.95 3.83 3.723 3.73 4.086 4.12 4.43 4.54 5.74 Apr.. 4.55 4.58 4.38 4.43 4.17 3.723 3.71 4.218 4.23 4.65 4.84 6.01 May. 4.45 4.51 4.38 4.25 4.27 3.648 3.69 4.064 4.12 4.46 4.58 5.69 June. 4.60 4.64 4.45 4.47 4.46 3.874 3.91 4.270 4.35 4.71 4.87 5.77 July. 4.83 4.85 4.72 4.73 4.55 4.059 3.98 4.583 4.50 4.90 4.89 5.86 Aug.. 4.75 4.82 4.58 4.67 4.80 4.014 4.02 4.527 4.55 4.90 4.91 5.92 Sept.. 5.07 5.14 4.91 4.84 4.87 4.651 4.66 5.086 5.13 5.44 5.49 6.16 Oct.. 5.21 5.30 5.13 5.05 5.04 4.719 4.74 5.118 5.13 5.39 5.41 6.11 Nov.. 5.18 5.25 5.13 5.01 5.06 4.774 4.78 5.079 5.09 5.20 5.22 6.03 Dec.. 5.40 5.45 5.24 5.16 5.33 5.061 5.07 5.287 5.30 5.28 5.46 6.07 1973—Jan.. 5.76 5.78 5.56 5.60 5.94 5.307 5.41 5.527 5.62 5.58 5.78 6.29 Feb., 6.17 6.22 5.97 6.14 6.58 5.558 5.60 5.749 5.83 5.93 6.07 6.61 Week ending— 1972—Nov. 4., 5.13 5.25 5.13 5.10 5.06 4.767 4.74 5.141 5.08 5.27 5.25 6.10 11., 5.13 5.25 5.13 5.00 5.25 4.668 4.71 4.957 5.04 5.18 5.18 6.05 18., 5.15 5.25 5.13 5.00 4.89 4.775 4.76 5.070 5.07 5.17 5.16 6.00 25., 5.25 5.25 5.13 5.00 4.97 4.776 4.82 5.050 5.10 5.20 5.24 6.02 Dec. 2. 5.25 5.25 5.13 5.00 5.03 4.886 4.88 5.178 5.18 5.25 5.35 6.04 9. 5.28 5.38 5.13 5.10 5.17 4.945 5.00 5.230 5.25 5.27 5.39 6.05 16. 5.33 5.40 5.18 5.13 5.29 5.099 5.05 5.309 5.27 5.22 5.42 6.04 23., 5.50 5.50 5.35 5.20 5.38 5.087 5.15 5.297 5.36 5.26 5.49 6.09 30. 5.56 5.59 5.38 5.25 5.34 5.111 5.13 5.313 5.34 5.39 5.55 6.12 1973—Jan. 5.63 5.63 5.38 5.38 5.61 5.163 5.16 5.396 5.42 5.44 5.61 6.16 5.63 5.63 5.40 5.43 5.66 5.155 5.19 5.412 5.47 5.45 5.70 6.22 5.78 5.78 5.53 5.58 5.86 5.277 5.40 5.540 5.63 5.52 5.80 6.27 5.88 5.90 5.75 5.80 6.03 5.633 5.67 5.760 5.81 5.66 5.91 6.38 Feb. 3.. 6.03 6.10 5.83 5.98 6.35 5.689 5.70 5.871 5.88 5.99 5.96 6.50 10. 6.13 6.20 5.95 6.13 6.21 5.665 5.56 5.849 5.76 5.86 5.97 6.55 17. 6.13 6.22 6.00 6.13 6.58 5.424 5.43 5.624 5.60 5.74 5.92 6.53 24. 6.22 6.25 6.00 6.13 6.79 5.455 5.58 5.653 5.84 5.95 6.16 6.67 Mar. 3. 6.28 6.30 6.05 6.30 6.75 5.811 5.81 6.045 6.11 6.18 6.39 6.76 1 Averages of the most representative daily offering rate quoted by 65 Bills quoted on bank discount rate basis. dealers. Certificates and selected note and bond issues. 2 Averages of the most representative daily offering rate published by 7 Selected note and bond issues. finance companies, for varying maturities in the 90-179 day range. 3 Seven-day average for week ending Wednesday. Note.—Figures for U.S. Government securities are the revised series de­ 4 Except for new bill issues, yields are averages computed from daily scribed on p. A-35 of the Oct. 1972 Bulletin. closing bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 INTEREST RATES □ MARCH 1973 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 1 Pre­ Com­ Com­ Aaa Baa In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c ferred mon mon 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 5.64 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 6.08 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 6.51 1971.. 5.74 5.62 5.22 5.89 7.62 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 1972. 5.63 5.30 5.04 5.60 7.31 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—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 5.42 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 5.57 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 Sept.. 5.70 5.38 5.12 5.69 7.40 7.59 7.22 8.09 7.36 7.97 7.63 7.00 2.83 5.’56 Oct... 5.69 5.24 5.03 5.45 7.38 7.59 7.21 8.06 7.36 7.97 7.63 7.03 2.82 Nov.. 5.50 5.11 4.91 5.37 7.09 7.52 7.12 7.99 7.28 7.95 7.55 6.93 2.73 Dec.. 5.63 5.13 4.91 5.39 7.15 7.47 7.08 7.93 7.22 7.91 7.48 6.92 2.70 1973—Jan.. 5.94 5.13 4.90 5.39 7.38 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 Feb.. 6.14 5.17 4.95 5.44 7.40 7.57 7.22 7.97 7.34 7.92 7.61 6.91 2.80 Week ending— 1973—Jan. 6. 5.72 5.19 4.95 5.45 7.47 7.11 7.90 7.23 7.90 7.49 7.22 2.65 13. 5.83 5.11 4.90 5.40 7.29 7.47 7.12 7.89 7.24 7.88 7.50 7.22 2.65 20. 5.98 5.08 4.85 5.30 7.45 7.48 7.15 7.90 7.27 7.85 7.50 7.23 2.67 27. 6.08 5.14 4.90 5.40 7.40 7.50 7.18 7.91 7.30 7.85 7.52 7.28 2.72 Feb. 3. 6.13 5.21 5.00 5.45 7.36 7.54 7.20 7.95 7.33 7.87 7.55 6.87 2.74 10. 6.16 5.25 5.05 5.50 7.46 7.56 7.22 7.97 7.34 7.91 7.62 6.82 2.80 17. 6.10 5.10 4.85 5.40 7.34 7.57 7.23 7.97 7.35 7.92 7.61 6.96 2.77 24. 6.15 5.13 4.90 5.40 7.57 7.22 7.97 7.35 7.92 7.60 6.93 2.78 Mar. 3. 6.16 5.23 5.00 5.45 7.57 7.25 7.97 7.35 7.92 7.60 6.92 2.86 Number of issues2. 10 20 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ only, based on Thurs. figures; from Moody’s Investors Service. (3) Cor­ arately. Because of a limited number of suitable issues, the number porate: New-issue Aaa utility rates are weekly averages compiled by the of corporate bonds in some groups has varied somewhat. As of Dec. Board of Governors of the Federal Reserve System. Rates for seasoned 23, 1967, there is no longer an Aaa-rated railroad bond series. issues are averages of daily figures from Moody’s Investors 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; eamings/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; from Treasury Dept. (2) State and local govt.: General obligations Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com­ companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5 Vi hours per day, or 27 Vi hours per week. homebuilders; and permanent loans that are coupled with construction In recent years shorter days and/or weeks have cut total weekly trading loans to owner-builders. Series beginning 1965, not strictly comparable to the following number of hours: 1967—Aug. 8-20. 20; 1968—Jan. 22- with earlier data. See also the table on Home-Mortgage Yields, p. A-55. Mar. 1,20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3,20; July 7-Dec. 31- 22.5; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer­ (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex­ change ( G t l U e o o r . n m S v g t . ) . ­ l S 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 i u al s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d i u al s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l 1 NYSE AMEX 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 67.73 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 1972*................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 27.00 16,487 4,447 1972—Fe b 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 84.2 65.8 111.01 124.35 43.28 54.66 61.07 67.25 48.97 36.87 78.27 26.85 15,522 3,807 Sept.... 68.06 83.4 65.6 109.39 122.33 42.37 55.36 60.05 65.72 46.49 37.82 78.41 25.23 12,314 2.774 Oct........ 68.09 85.3 65.5 109.56 122.39 41.20 56.66 59.99 65.35 44.95 38.93 79.64 25.87 14,427 3,014 Nov.... 69.87 87.1 65.9 115.05 128.29 42.41 61.16 62.99 68.29 47.50 41.81 84.57 26.18 20,282 4,286 Dec. 68.68 87.1 66.05 117.50 131.08 45.23 61.73 64.26 69.96 48.44 42.28 83.45 26.50 18,146 4.775 1973—Ja..........n 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 r25.35 18.752 4,046 Feb____ 64.09 86.1 65.5 114.16 128.50 40.80 57.52 61.52 67.67 42.34 39.95 74.47 25.34 16.753 3,690 Week ending— 1973—Feb. 3, 64.24 86.1 65.7 115.40 129.27 41.35 57.93 62.04 68.54 42.96 40.48 77.17 26.75 16,596 3,706 10 63.95 85.9 65.6 114.04 127.68 40.86 57.68 62.57 67.70 42.46 40.05 74.57 25.49 17,197 3,766 17. 64.44 87.0 65.7 115.47 129.41 40.96 57.79 62.23 68.52 43.02 40.20 75.05 25.50 17,059 3,503 24, 64.03 86.2 65.5 114.42 128.20 40.66 57.42 61.53 67.74 42.37 39.87 74.02 25.21 14,734 3,466 Mar. 3. 63.91 85.3 65.3 111.62 125.01 39.04 56.50 59.94 65.89 40.53 39.21 72.49 24.75 17,175 3,968 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 ri t n a e c i n t o r e ) / (t d h c o p o P h l r u u l i a a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g r ) e & 1 s M (y a e t a u r r s i ) ty L c p r ( a e o p r t i n a e c i t o n r e ) / (t d h c o o p P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o 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 1972......................... 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 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 June............. 7.41 .85 27.2 76.5 37.2 27.8 7.36 .78 25.5 76.1 33.8 25.2 July.............. 7.43 .83 27.2 77.0 37.3 28.2 7.37 .83 25.6 76.2 33.8 25.2 Aug.............. 7.45 .86 27.5 77.5 36.8 27.9 7.39 .81 26.3 76.5 33.7 25.4 Sept.............. 7.43 .86 27.3 77.5 36.6 27.9 7.42 .83 26.2 76.5 32.9 24.8 Oct............... 7.48 .88 27.2 77.3 36.0 27.4 7.43 .84 26.1 76.3 33.3 25.0 Nov.............. 7.50 .90 27.5 77.4 37.1 28.1 7.44 .83 26.2 76.7 33.7 25.3 Dec.r........... 7.51 .92 27.5 78.0 37.9 29.0 7.45 .86 26.4 76.8 34.0 25.7 1973—Jan................ 7.53 .92 27.4 78.4 37.9 29.1 7.46 .82 26.2 77.2 34.0 25.7 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ MARCH 1973 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. 1972—Jan................ 6,850 5 s989 861 5,700 789 252 56 37 16 1,182 1,313 448 2,040 Feb................ 7,427 6,477 950 6,180 877 256 56 41 17 1,170 1,327 434 2,108 Mar............... 7,847 6,896 951 6,620 883 240 53 36 15 1,158 1,294 442 2,070 Apr............... 8,250 7,283 967 7,010 898 240 57 33 12 1,150 1,278 433 2,030 May............. 8,472 7,478 994 7,200 924 241 58 37 12 1,141 1,296 403 1,930 June............. 8,747 7,792 955 7,510 889 244 51 38 15 1,644 1,274 386 1,845 July............... 8,924 7,945 979 7,660 910 248 53 37 16 1,772 1,285 403 1,842 Aug............... 9,092 8,060 1,032 7,780 961 246 54 34 17 1,800 1,298 384 1,733 Sept............... 9,091 8,083 1,008 7,800 937 248 54 35 17 1,871 1,255 380 1,677 Oct................ 9,024 8,081 943 7,800 872 250 53 31 18 1,875 1,351 389 1,708 Nov.............. 9,068 8,166 902 7,890 831 249 52 27 19 1,871 1,396 390 1,828 Dec............... 9,045 8,180 865 7,900 798 254 50 26 17 1,896 1,528 414 1,957 1973—Jan................ 8,840 7,975 865 7,700 796 249 48 26 21 1,940 1,484 413 1,883 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 End of l ( d i m o e n b il s t ­ End of period c N re e d t it in debit status b T al o a t n a c l e period d o o f l ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 40 der status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n r s s ) lars) 1 36.8 55.9 7.3 5,780 1972—Jan... 5,700 8.7 13.5 27.1 32.6 8.5 9.6 35.1 57.0 7.9 5,910 Feb.. 6,180 8.4 12.4 25.9 35.1 8.5 9.7 35.8 56.0 8.1 5,990 Mar.. 6,620 7.6 11.2 22.3 38.5 10.6 9.7 35.5 56.5 8.0 5,920 Apr.. 7,010 7.1 10.2 19.5 40.0 12.8 10.5 34.7 57.1 8.0 5,860 May. 7,200 6.9 9.9 19.3 38.6 15.0 10.4 34.3 56.3 9.4 5,770 June. 7,510 6.0 9.1 15.9 33.9 22.0 13.2 34.4 55.2 11.4 5,930 July.. 7,660 5.5 8.3 14.6 30.8 24.9 15.7 33.4 55.2 11.4 5,990 Aug.. 7,780 5.9 8.6 15.0 33.6 22.4 14.6 33.7 53.8 12.5 6,000 Sept.. 7,800 5.5 8.0 13.8 31.4 24.9 16.4 33.3 53.4 13.3 5,950 Oct... 7,800 5.5 8.1 13.6 30.8 25.0 17.0 33.6 54.5 11.8 6,140 Nov.. 7,890 6.0 9.4 16.6 35.1 20.5 12.4 34.4 52.9 12.7 6,100 Dec.. 7,900 6.5 8.6 17.6 31.9 20.3 15.0 1973—Jan......................... 35.1 51.7 13.1 5,850 1973—Jan.. 7,700 5.8 8.2 16.8 27.8 21.2 20.0 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

MARCH 1973 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r l g i T e a a t n o b i n e e t i d s a l r i a l ­ 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 n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 reserve accts. 3 or 3-6 6-9 Over Total less 9 1963 . . 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 1964 . . 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965 ........... 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966 .. . 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967................. 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968................. 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969................. 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970................. 57,775 2,255 3,151 197 12,876 1,270 1,471 78,995 71,580 1,690 5,726 619 322 302 688 1,931 1971—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 July. .. 64,771 3,642 3,376 691 21,193 1,298 1,945 96,916 87,714 2,536 6,665 1,579 956 557 1,629 4,721 Aug... 65,324 3,512 3,353 806 21,389 1,327 1,935 97,646 88,130 2,780 6,736 1,572 824 549 1,647 4,593 Sept... 65,826 3,421 3,393 843 21,556 1,361 1,992 98,392 89,174 2,431 6,787 1,740 716 583 1,637 4,675 Oct.... 66,298 3,481 3,451 866 21,497 1,303 1,986 98,882 89,558 2,518 6,806 1,667 718 617 1,660 4,662 Nov... 66,815 3,503 3,419 894 21,648 1,321 1,996 99,595 90,112 2,610 6,873 1,624 753 631 1,658 4,666 Dec.... 67,413 2,956 3,509 899 21,855 1,667 2,060 100,359 91,393 2,028 6,939 1,593 713 609 1,624 4,539 1 Also includes securities of foreign governments and international data previously reported by NAMSB which were net of valuation reserves organizations and nonguaranteed issues of U.S. Govt, agencies. For most items, however, the differences are relatively small. 2 See note 8, p. A-19. 3 Commitments outstanding of banks in New York State as reported to Note.—National Assn. of Mutual Savings Banks data; figures are the Savings Banks Assn. of the State of New York. Data include building estimates for all savings banks in the United States and differ somewhat loans beginning with Aug. 1967. from those shown elsewhere in the Bulletin; the latter are for call dates 4 Balance sheet data beginning Jan. 1972 are reported on a gross of and are based on reports filed with U.S. Govt, and State bank supervisory valuation reserves basis. The data differ somewhat from balance sheet agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks gages estate loans assets Statement value: 1963, 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964. 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965. 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966. 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 1967. 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 1968. 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 1966. 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967. 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968 ' 188,636 10,760 4,456 3,206 3,098 79,653 68,731 10,922 70,044 5,575 11,305 11,299 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—-Dec.r.............................. 222,102 11,000 4,455 3,363 3,182 99,805 79,198 20,607 75,496 6,904 17,065 11,832 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 July................................. 231,586 11,075 4,372 3,356 3,347 108,236 84,539 23,697 75,626 7,185 17,605 11,859 Aug................................. 233,337 11,086 4,389 3,351 3,346 109,728 5,187 24,541 75,723 7,235 17,689 11,876 Sept................................. 234,455 11,125 4,385 3,350 3,390 110,300 85,912 24,388 75,813 7,245 17,773 12,199 235,972 11,132 4,396 3,347 3,389 111,616 86,874 24,742 75,952 7,229 17,854 12,189 Nov................................. 237,971 11,193 4,459 3,356 3,378 113,066 87,425 25,641 76,207 7,272 17,922 12,311 Dec.................................. 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 12,720 i 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 □ MARCH 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Liabilities commitments4* Total assets— End of period M ga o g r e t s ­ I s n i m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other2 lia T b o il t i a ti l e s S c a a v p i i n ta g l s R a d p n e i r v s d o e i f d r u i v e t n s e d ­ s m ro B o w n o e e r y ­ d 3 Loans Other d p M u er r a i i d o n e d g O e p u in n e t g s d ri t o a a o 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—Dec.. 174,385 18,293 2,783 10,842 206,303 174,472 13,187 9,048 5,072 4,524 2,345 7,237 1972—Jan... 175,838 19,691 2,785 10,926 209,240 177,738 13,250 8,053 4,874 5,325 2,508 7,510 Feb.. 177,614 20,682 2,829 11,144 212,269 180,556 13,248 7,275 4,853 6,337 3,354 8,659 Mar.. 180,145 21,427 2,521 11,291 215,384 184,843 13.261 6,759 5,077 5,444 4,110 9,864 Apr.. 182,711 21,449 2,551 11,440 218,151 186,617 13.262 6.847 5,283 6,142 4,047 10,837 May. 185,431 22,070 2,456 11.691 221,648 188,826 13,257 6,802 5,608 7,155 4,545 11,793 June. 188,884 21,644 2,414 11,865 224,807 192,564 13,583 7,273 5,887 5.500 4,198 11,663 July.. 191,642 22,130 2.367 11,942 228,081 194,770 13,577 7,216 5,997 6,521 c4,205 11,878 Aug.. 194,955 22,113 2,208 12,125 231,401 196,571 13,569 7,512 6,100 7,649 4,106 11,876 Sept.. 197,881 22,018 2,084 12,277 234,260 199,966 13.586 8,080 6,119 6,509 3,767 11,908 Oct.., 200,554 22,390 2,258 12,457 237,659 202,012 13.587 8,327 6,086 7,647 3,731 11,959 Nov.. 203,266 22,505 2,245 12,689 240,705 203,889 13,592 8,503 6,067 8,654 3,777 12,007 Dec.* 206,367 21,839 2,673 12.691 243,570 207,290 14,749 9.847 6,215 5,459 3,169 11,341 1 U.S. Govt, securities only through 1967. Beginning 1968 the total ments are comparable with those shown for mutual savings banks (on reflects liquid assets and other investment securities. Included are U.S. preceding page) except that figures for loans in process are not included Govt, obligations, Federal agency securities, State and local govt, securi­ above but are included in the figures for mutual savings banks. ties, time deposits at banks, and miscellaneous securities, except FHLBB 5 Balance sheet data for all operating savings and loan associations stock. Compensating changes have been made in “Other assets.” were revised by the Federal Home Loan Bank Board for 1969 and 1970. 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings Note.—Federal Home Loan Bank Board data; figures are estimates for and fixtures. See also note 1. all savings and loan assns. in the United States. Data are based on 3 Consists of advances from FHLBB and other borrowing. monthly reports of insured assns. and annual reports of noninsured assns. 4 Insured savings and loan assns. only. Data on outstanding commit­ Data for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a A t n e o d c m ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s i d ­ t h s B n a o o n n te d d s s M po b d e s e e m i r ­ ts ­ C s a to p c it k al M l g o a a o g n r e t s ­ D n t a e u o n b r t e d e e s s n­ c L a o t o o i t v o a p e n e s s r­ D t e u b re e s n­ c L o d a o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 1967............... 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968............... 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969............... 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970............... 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971............... 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 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 Aug... 6,294 3,319 118 6,531 1,442 1,724 19,021 18,194 2,156 1,710 6,255 6,148 8,631 7,659 Sept... 6,736 2,184 106 6,531 1,444 1,729 19,295 18,939 2,233 1,710 6,201 6,063 8,749 7,798 Oct... 7,045 2,591 83 6,531 1,334 1,735 19,438 18,724 2,355 1,837 6,110 5,952 8,857 8,012 Nov.. 7,245 2,850 107 6,971 1,380 1,741 19,619 19,041 2,313 1,905 6,048 5,872 8,972 8,012 Dec... 7,979 2,225 129 6,971 1,548 1,756 19,791 19,238 2,298 1,944 6,094 5,804 9,107 8,012 1973—Jan... 7,831 2,264 91 6,971 1,306 1,821 19,980 19,252 2,876 1,950 6,087 5,891 9,251 8,280 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

MARCH 1973 □ FEDERALLY SPONSORED CREDIT AGENC A ISSUES OF FEDERALLY SPONSORED AGENCIES, JANUARY 31, 1 Amount Cou­ Amount mou: (millions Agency, and date of issue pon (millions Agency, and date of issue lillio: of dollars) and maturity rate of dollars) and maturity dolla Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 350 Debentures: 8/1/72-2/1/73.... 4.90 447 400 11/10/70 - 3/12/73... 7.30 450 10/2/72-4/2/73... 5.40 375 400 12/12/69 - 3/12/73... 8.30 250 11/1/72 -5/1/73... 5.45 331 450 6/12/61 - 6/12/73.... 4% 146 12/4/72-6/4/73... 5.30 350 600 7/10/70 - 6/12/73.... 8.35 350 1/2/73 - 7/2/73... . 5.60 347 300 7/12/71 -6/12/73......... 6.75 550 10/1/70 - 10/1/73. 7.30 100 250 3/10/70 - 9/10/73.... 8.10 300 300 6/10/71 -9/10/73......... 6.13 350 Federal intermediate 300 12/10/70 - 12/10/73. . 5.75 500 credit banks 180 8/10/71 - 12/10/73.... 7.15 500 Debentures: 400 12/11/72 - 12/10/73 .. 6.00 200 5/1/72-2/1/73.. 4.95 487 225 12/1/71 - 3/11/74. 5.45 400 3/2/70 - 3/1/73. 7.75 203 250 4/10/70 - 3/11/74___ 7.75 350 6/1/72- 3/1/73.. 4.80 489 265 8/5/70 - 6/10/74........ 7.90 400 7/3/72 - 4/2/73. 4.80 489 300 11/10/71 -6/10/74.... 5.70 350 8/1/72- 5/1/73.. 5.05 563 350 9/10/69 - 9/10/74.... 7.85 250 9/5/72 - 6/4/73.. 5.00 508 400 2/10/71 - 9/10/74......... 5.65 300 10/2/72- 7/2/73. 5.60 353 300 5/10/71 - 12/10/74.... 6.10 250 9/1/70-7/2/73.. 5.55 200 200 9/10/71 - 12/10/74.... 6.45 450 11/1/72- 8/1/73. 5.65 540 350 11/10/70 - 3/10/75... 7.55 300 1/2/73 - 10/1/73. 5.70 591 200 10/12/71 - 3/10/75... 6.35 600 12/4/72-9/4/73. 5.45 491 200 4/12/71 -6/10/75......... 5.25 500 7/1/71 - 1/2/74.. 6.85 212 10/13/70 - 9/10/75. . . 7.50 350 1/4/71 - 7/1/74. 5.95 224 3/10/72 - 12/10/75... 5.70 500 5/1/72 - 1/2/75. . 6.05 240 3/11/71 - 3/10/76......... 5.65 500 1/3/72-7/1/75.. 5.70 302 6/10/71 - 6/10/76......... 6.70 250 2/10/72 - 6/10/76......... 5.85 450 11/10/71 -9/10/76.... 6.13 300 Bonds: 200 6/12/72-9/10/76......... 5.85 500 2/20/63 - 2/20/73-78. 4H 148 350 7/12/71 - 12/10/76.... 7.45 300 4/20/72 - 4/23/73......... 5.20 433 140 12/11/72- 12/10/76... 6.25 500 1/20/70 - 7/20/73.... 8.45 198 150 2/13/62 - 2/10/77___ 4% 198 8/20/73 - 7/20/73........ 7.95 350 150 9/11/72-3/10/77......... 6.30 500 4/20/70 - 10/22/73... 7.80 300 12/10/70 - 6/10/77. . . 6.38 250 10/23/72 - 10/23/73... 5.80 462 5/10/71 -6/10/77......... 6.50 150 7/20/72 - 1/21/74. . .. 5.55 450 9/10/71 -9/12/77......... 6.88 300 2/20/72 - 2/20/74.... 155 10/12/71 - 12/11/78.. 6.75 300 10/20/70 - 4/22/74. .. 7.30 354 6/12/72-9/10/79........ 6.40 300 9/15/72-4/22/74......... 5.85 350 12/10/71 - 12/10/79. . 6.55 350 10/21/71 - 7/27/74... 5.85 326 2/10/72 - 3/10/80......... 6.88 250 4/20/71 - 10/21/74.... 5.30 300 1,091 1/16/73 - 10/30/80.... 5.47 5 2/20/70 - 1/20/75. 220 12/11/72 - 12/10/80. . . 6.60 300 4/20/65 - 4/21/75.... 200 250 6/29/72- 1/29/81......... 6.15 156 2/15/72-7/21/75........ 5.70 425 2 2 4 0 9 0 9 1 / / 1 2 0 1 / / 7 7 1 1 - - 9 / 6 1 / 0 1 / 0 8 /8 1 1 ... . . . . .. . . . . 7 7 . . 2 2 5 5 2 2 5 50 0 7 4 / / 2 2 0 0 / / 7 7 1 2 - - 1 1/ 0 2 / 0 2 / 0 7 / 6 7 .. 5 .. . .. . . . . . 7 6% .20 3 3 0 0 0 0 250 6/28/72-5/1/82........... 5.84 58 2/21/66 - 2/24/76. 5.00 123 2/10/71 - 6/10/82......... 6.65 250 1/22/73 -4/20/76........ 6% 373 9/11/72-9/10/82......... 6.80 200 7/20/66 - 7/20/76.... 5H 150 3/11/71 -6/10/83......... 6.75 200 10/27/71 - 10/20/77.. 6.35 300 11/10/71 -9/12/83.... 6.75 250 5/2/66 - 4/20/78......... 5H 150 4/12/71 -6/11/84......... 6.25 200 7/20/72 - 7/20/78 6.40 269 250 12/10/71 - 12/10/84. . 6.90 250 2/20/67- 1/22/79......... 5.00 285 200 3/10/72 - 3/10/92___ 7.00 200 9/15/72-4/23/79........ 6.85 235 6/12/72-6/10/92........ 7.05 200 10/23/72- 10/23/79... 6.80 400 1/22/73 - 1/21/80........ 6.70 300 2/23/71 -4/20/81......... 6.70 224 4/20/72 - 4/20/82........ 6.90 200 by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 FEDERAL FINANCE □ MARCH 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing Special Other balance issues 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 2 208,649 231,876 -23,227 29,131 -1,269 6,813 1,607 19,442 1,362 1,108 6,255 Half year: 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.. .. 93,180 110,608 948 111,554 -18,374 26,001 -1,117 2,803 523 21,561 973 80 -2,122 1972—Jan.-June... 115,549 120,319 -4,850 3,130 -150 4,010 1,089 -2,114 389 1,028 8,377 July-Dee___ 106,061 118,586 -12,525 22,037 876 6,388 -861 17,386 -956 386 -5,430 Month: 1972—Jan.. r17,605 r19,481 -1,876 -1,269 r—476 -1,508 *•-377 r 141 -191 '1,047 *•2,590 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. 25,589 23,202 2,387 -651 -370 2,975 -628 -3,368 417 2,080 3,478 July. 15,207 18,591 -3,384 5,123 9 1,409 -6 3,730 -1,129 -1,810 -3,284 Aug.. 18,213 20,581 -2,369 3,056 534 2,639 16 934 -4,012 222 -2,355 Sept.. 22,183 18,471 3,712 -1,493 22 -1,339 -508 376 4,783 -92 604 Oct.., 14,738 20,055 -5,317 6,000 24 3,085 88 2,851 -1,786 37 717 Nov.. 16,748 21,165 -4,418 4,301 380 -659 42 5,298 305 7 -569 Dec.. 18,972 19,721 -750 5,051 -93 1,104 -343 4,197 2,795 57 -595 1973—Jan................. 21,130 23,631 -2,501 770 18 -900 168 1,519 302 99 1,383 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s Sp G I e n c o v i v a e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t c s e s i s a : 3 l E p T h q u b o e b u y t l l a d a i l l c s : s c p p o G r o N r i n o p v o s v s a w o . t t — . r e - e 6 d issues 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 41,044 Calendar year: 197 1 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 39,860 197 2 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 Month: 1972—Jan... 2,860 8,118 5 134 11,112 422,862 10,570 84,037 22,522 825 326,017 39,701 Feb.., 884 6,075 134 7,094 424,032 11,137 85,486 22,839 825 326,019 39,883 Mar.. 1,293 6,391 2 7,685 427,343 11,034 84,804 22,935 825 329,814 40,109 Apr.. 1,871 9,724 136 11,732 425,304 10,991 83,034 24,681 825 327,755 40,632 May. 2,144 7,420 136 9,700 427,912 11,263 86,561 24,652 825 327,137 40,426 June. 2,344 7,934 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41,044 July., 2,298 6,547 144 8,988 432,383 10,903 90,944 24,018 825 327,499 40,981 Aug.. 1,730 3,025 222 4,976 435,439 11,437 93,616 24,002 825 328,433 41,037 Sept.. 1,395 8,105 259 9,759 433.946 11,459 92,281 23,490 825 328,809 41,724 Oct... 1,613 6,051 309 7,973 439.947 11,483 95,365 23,579 825 331,660 41,760 Nov.. 1,182 6,786 310 8,278 444,247 11,863 94,821 23,506 825 336,958 42,496 Dec.. 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 1973—Jan.. 2,749 8,317 310 11,376 450,068 11,787 95,024 23,332 825 342,674 1 Equals net expenditures plus net lending. 4 Includes accrued interest payable on public debt securities, deposit 2 The decrease in Federal securities resulting from conversion to private funds, miscellaneous liability and asset accounts, and seigniorage. ownership of Govt.-sponsored corporations (totaling $9,853 million) is 5 As of Jan. 3, 1972, the Treasury operating balance was redefined to not included here. In the bottom panel, however, these conversions de­ exclude the gold balance and to include previously excluded “Other deposi­ crease the outstanding amounts of Federal securities held by the public taries” (deposits in certain commercial depositaries that have been con­ mainly by reductions in agency securities. The Federal National Mortgage verted from a time to a demand basis to permit greater flexibility in Association (FNMA) was converted to private owership in Sept. 1968 and Treasury cash management). the Federal intermediate credit banks (FICB) and banks for coopera­ 6 Includes debt of Federal home loan banks, Federal land banks, R.F.K. tives in Dec. 1968. Stadium Fund, FNMA (beginning Sept. 1968), FICB, and banks for 3 Represents non-interest-bearing public debt securities issued to the cooperatives (beginning Dec. 1968). International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. Note.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Total W he i l t d h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c E o P r m t n o a a y t l x p r l ­ i e l b o s u y e a m t S m i n e o e d l p n n f l - s t . 1 i e n U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 2 t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i p e s ­ t c s . * taxes Fiscal year: 196 9 187,78470,18227,258 10,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 197 0 193,74377,41626,236 13,24090,41235,037 2,208 37,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 197 1 188,39276,49024,262 14,52286,23030,320 3,535 39,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,64983,20025,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 Half year: 1971—Jan.-June. 100,808 39,025 18,693 13,95743,761 17,576 2,06921,983 1,815 2,325 1,63027,753 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 1,673 22,989 8,961 1,838 2,395 1,718 1972—Jan.-June. 115,46944,751 20,090 13,56951,27221,664 1,31224,445 1,877 4,736 1,76430,925 6,516 1,449 3,041 1,915 July-Dee.. 106,061 46,058 5,784 68851,154 15,315 1,45922,493 165 2,437 1,77326,867 8,244 1,551 2,333 2,056 Month: 1972—Jan.. . r17,604 r6,633 4,318 1r10,950 1,228 158 124 153 295 3,616 743 259 621 345 Feb... 15,239 7,581 682 1,416 6,846 878 212 147 545 274 5,740 819 224 596 347 Mar.. 15,237 7,782 1,323 5,200 3,905 4,995 273 167 71 325 4,350 1,130 264 602 263 Apr.. 24,534 6,599 8,650 3,284 11,985 5,145 250 1,153 343 283 5,655 1,091 215 372 342 May. 17,275 8,141 1,413 2,997 6,557 967 234 223 1,636 303 7,443 1,371 235 461 475 June.. 25,589 8,020 3,704 670 11,054 8,452 185 64 92 285 4,122 1,363 252 388 144 July.. 15,207 7,052 548 245 7,355 1,258 187 260 289 4,277 1,442 237 334 492 Aug.., 18,213 8,175 362 157 8,380 855 190 1,175 307 6,849 1,351 278 423 266 Sept.. 22,183 7,305 3,794 95 11,005 5,289 324 145 63 302 4,038 1,327 237 316 295 Oct... 14,738 7,187 469 61 7,595 1,287 323 15 210 311 3,759 1,387 281 409 343 Nov.. 16,748 8,425 257 69 8,613 853 294 637 287 4,969 1,452 284 487 383 Dec... 18,972 7,915 353 61 8,206 5,772 140 92 277 2,975 1,286 234 364 276 1973—Jan............................. 21,130 8,254 4,671 2712,897 1,539 158 3,833 139 174 340 4,486 1,437 289 396 244 Budget outlays 4 Com. Gen­ Na­ Nat­ Com­ mun. Educa­ eral Intra- Period tional Intl. Space Agri­ ural merce deve­ tion Health Vet­ Inter­ Gen­ reve­ govt. Total de­ affairs re­ cul­ re­ and lop. and and erans est eral nue trans­ fense search ture sources transp. and man­ wel­ govt. shar­ ac­ hous­ power fare ing tions 5 ing Fiscal year: 197 0 196,588 80,295 3,570 3,749 6,201 2,568 9,310 2,965 7,289 56,697 8,677 18,312 3,336 -6,380 197 1 211,425 77,661 3,095 3,381 5,096 2,716 11,310 3,357 8,226 70,607 9,776 19,608 3,970 -7,376 197 2 231,876 78,336 3,726 3,422 7.063 3,761 11,201 4,282 9,751 81,988 10.731 20,582 4,890 -7,858 1973' «... 249,796 76,435 3,341 3,061 6.064 876 12,543 3,957 10,500 93,880 11,795 22,808 5,631 6,786 -8,381 19746___ 268,665 81,074 3,811 3,135 5,572 3,663 11,580 4,931 10,110103,709 11.732 24,672 6,025 6,035 -9,131 Half year: 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.. 120,319 42,583 2,037 1,645 1,062 1,807 5,164 2,035 5,842 43,407 5,744 10,532 2,498 -4,036 July-Dee...118,586 35,350 1,640 1,676 4,616 329 6,200 2,637 5,133 43,212 5,740 10,604 2,870 7 2,617 -4,039 Month: 1972—Jan... '■19,481 r6,178 347 259 699 264 813 434 r808 6,807 1,023 1,737 r391 -278 Feb.. 18,764 6,333 307 276 298 237 619 254 908 6,938 864 1,714 400 -385 Mar.. 20,327 7,158 361 310 16 265 876 342 932 7,111 1,045 1,801 401 -293 Apr.. 18,598 6,738 265 238 -196 255 793 9 728 6,936 929 1,792 419 -308 May. 19,960 7,107 268 207 126 265 713 490 1,033 6,914 973 1,784 389 -371 June. 23,202 9,087 487 292 120 520 1,350 505 1,429 8,703 911 1,709 497 -2,402 July.. 18,591 5,139 313 289 2,397 -821 827 529 764 6,214 884 1,695 612 -252 Aug.. 20,581 5,873 300 289 1,127 554 1,333 658 905 6,779 858 1,723 610 -409 Sept.. 18,471 5,397 198 273 102 321 1,173 408 852 6,970 832 1,899 322 -276 Oct... 20,055 6,305 259 271 806 -16 1,056 244 800 7,688 896 1,559 463 -276 Nov.. 21,165 6,501 350 272 329 353 982 384 851 7,851 1,279 1,919 448 -353 Dec.. 19,721 6,135 221 284 -146 -40 829 414 960 7,710 989 1,809 415 72,617 -2,474 1973—Jan.............. 23,630 6,633 82 271 994 -1,053 1,546 483 8,130 1,157 1,777 586 2,514 -297 1 Old-age, disability, and hospital insurance, and Railroad Retirement 6 Estimates presented in the Jan. 1974 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), totaling $500 million for retirement contributions. fiscal 1973, and $1,750 million for fiscal 1974, are not included. 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ 7 Outlays of $6,786 million in fiscal 1973 contain retroactive payments ous receipts. of $2,600 million for fiscal 1972. 4 Outlays by functional categories are published in the Monthly Treas­ ury Statement (beginning April 1969). Monthly back data (beginning Note.—Half years may not add to fiscal year totals due to revisions in July 1968) are published in the Treasury Bulletin of June 1969. series which are not yet available on a monthly basis. 5 Consists of government contributions for employee retirement and interest received by trust funds. 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A 44 U.S. GOVERNMENT SECURITIES □ MARCH 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable i S s p su e e c s ia 5 l debt 1 Total Total Bills C c e a r t t e if s i­ Notes Bonds 2 b v i o b e n l r e d t­ s Total 3 F is o su re e i s g n 4 bo S in n a g v d s ­ s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946-Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 2.4 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 1.5 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—Feb.. 424.0 336.5 261.2 98.1 112.9 50.2 2.3 73.0 16.9 55.3 85.6 Mar. 427.3 340.6 265.4 102.4 112.9 50.1 2.3 72.9 16.5 55.6 84.9 Apr. 425.3 340.4 263.0 98.3 114.7 50.0 2.3 75.1 18.4 55.9 83.1 May 427.9 339.5 261.9 98.1 113.4 50.4 2.3 75.2 18.2 56.2 86.6 June, 427.3 335.8 257.2 94.6 113.4 49.1 2.3 76.3 19.0 56.5 89.6 July. 432.4 339.6 257.7 95.2 113.4 49.1 2.3 79.5 22.0 56.7 91.0 Aug. 435.4 339.9 258.1 96.2 115.7 46.2 2.3 79.5 21.7 57.0 93.6 Sept. 433.9 339.8 257.7 96.4 115.7 45.7 2.3 79.8 21.7 57.2 92.3 Oct.. 439.9 342.7 260.9 97.5 117.7 45.6 2.3 79.6 21.2 57.5 95.4 Nov. 444.2 347.6 265.6 100.7 119.4 45.5 2.3 79.6 21.0 57.8 94.9 Dec. 449.3 351.4 269.5 103.9 121.5 44.1 2.3 79.5 20.6 58.1 95.9 1973—Jan.. 450.1 353.2 271.1 104.9 121.5 44.7 2.3 79.7 20.5 58.4 95.0 Feb. 454.8 357.1 269.9 105.0 120.2 44.6 2.3 84.9 25.4 58.7 95.8 1 Includes non-interest-bearing debt (of which $621 million on Feb. 28, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1973, was not subject to statutory debt limitation). Treasury foreign series and foreign currency series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 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. 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. 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 u n .S v c d s i t . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a a d t ts e l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 t i O m o n r v t i s h s e c e s 2 . ­ r 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 2.4.4 51.9 23.9 14.3 22.4 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 2.9 7.1 11.7 25.9 51.8 29.6 11.2 24.9 1970—Dec................. 389.2 97.1 62.1 229.9 62.7 2.8 7.0 9.4 25.2 52.1 29.8 20.6 20.4 1971—Dec................. 424.1 106.0 70.2 247.9 65.3 2.7 6.6 12.4 25.0 54.4 19.6 46.9 15.0 1972—Feb.................. 424.0 106.2 67.7 250.2 62.1 2.7 6.5 12.1 26.2 54.9 18.7 48.9 18.1 Mar................. 427.3 105.5 69.9 251.9 63.3 2.7 6.5 11.6 25.8 55.2 19.5 49.9 17.5 Apr................. 425.3 105.5 70.3 249.5 61.9 2.7 6.4 10.5 25.7 55.5 19.1 49.8 17.9 May............... 427.9 109.1 71.6 247.2 r61.0 2.8 6.3 11.3 25.5 55.8 18.6 49.4 16.6' June................ 427.3 111.5 71.4 244.4 r60.5 2.7 6.2 10.3 25.9 56.0 18.0 50.0 14.9' July................. 432.4 112.8 70.8 248.8 >■60.2 2.7 6.1 10.0 26.5 56.3 18.0 54.6 14.5' Aug................. 435.4 115.4 70.7 249.3 r60.0 2.6 6.0 9.5 26.5 56.6 17.6 55.9 14.6' Sept................. 433.9 113.5 69.7 250.7 >•60.8 2.8 6.1 8.9 27.2 56.8 17.2 55.3 15.7' Oct.................. 439.9 116.7 70.1 253.1 '61.0 2.7 5.9 10.4 28.0 57.1 17.0 55.8 15.2' Nov................. 444.2 116.1 69.5 258.6 '63.5 2.7 6.1 12.0 27.9 57.4 17.1 56.0 16.1' Dec................. 449.3 116.9 69.9 262.5 67.0 2.6 6.0 11.7 28.3 57.1 17.0 55.3 17.0 1973—Jan.................. 450.1 116.2 72.0 261.8 66.0 2.6 6.1 12.3 29.5 58.0 16.8 54.3 16.3 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

MARCH 1973 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 1969—Dec. 31............................................................. 235,863 118,124 80,571 37,553 73,301 20,026 8,358 16,054 1970—Dec. 31............................................................. 247,713 123,423 87,923 35,500 82,318 22,554 8,556 10,863 1971—Dec. 31............................................................. 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Dec. 31............................................................. 269,509 130,422 103,870 26,552 88,564 29,143 15,301 6,079 1973—Jan....................................................................... 271,121 131,454 104,901 26,553 88,572 29,142 15,271 6,682 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—Dec. 31..................................................... 19,360 1,609 674 935 6,418 5,487 4,317 1,530 1973—Jan. 31..................................................... 19,573 1,649 699 950 6,472 5,506 4,318 1,628 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—Dec. 31..................................................... 69,906 37,750 29,745 8,005 24,497 6,109 1,414 136 1973—Jan. 31..................................................... 72,022 39,732 31,528 8,204 24,574 6,140 1,440 136 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—Dec. 31..................................................... 180,243 91,063 73,451 17,612 57,649 17,547 9,570 4,413 1973—Jan. 31..................................................... 179,526 90,073 72,674 17,399 57,526 17,496 9,513 4,918 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—Dec. 31............................................ 52,440 18,077 10,289 7,788 27,765 5,654 864 80 1973—Jan. 31............................................ 51,667 17,345 9,447 7,898 27,600 5,621 833 269 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—Dec. 31............................................ 2,609 590 309 281 1,152 469 274 124 1973—Jan. 31............................................ 2,612 494 257 237 1,163 462 316 177 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—Dec. 31............................................ 5,220 799 448 351 1,190 976 1,593 661 1973—Jan. 31............................................ 5,255 763 375 388 1,213 996 1,610 672 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—Dec. 31............................................ 4,948 3,604 1,198 2,406 1,198 121 25 1 1973—Jan. 31............................................ 5,493 3,908 3,018 890 1,403 122 51 10 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 Dec. 31............................................ 2,873 820 498 322 1,140 605 226 81 1973—Jan. 31............................................ 3,019 922 578 344 1,180 606 228 83 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—Dec. 31............................................ 10,904 6,159 5,203 956 2,033 816 1,298 598 1973—Jan. 31............................................ 11,920 7,129 6,122 1,007 2,083 833 1,286 590 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—Dec. 31............................................ 101,249 61,014 55,506 5,508 23,171 8,906 5,290 2,868 1973—Jan. 31............................................ 99,560 59,512 52,877 6,635 22,884 8,856 5,189 3,117 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 5,624 commercial banks, 481 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 464 nonfinancial corporations and 487 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 505 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 □ MARCH 1973 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 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 33 633 382 851 704 439 Aug................................. 2,658 1,953 377 191 137 587 411 911 749 443 Sept................................. 2,695 2,225 231 143 97 635 504 845 710 482 Oct.................................. 3,047 2,473 350 126 99 837 420 988 802 561 Nov................................. 3,397 2,397 709 168 123 835 498 1,228 837 731 Dec.................................. 3,184 2,640 361 118 65 757 352 1,215 860 472 1973—Jan................................... 3,158 2,445 443 148 122 793 470 1,113 781 463 Week ending— 1973—Jan. 3......................... 3,397 2,817 424 121 35 862 311 1,301 923 309 10..................... 3,213 2,443 423 151 197 726 432 1,173 882 481 17......................... 2,871 2,122 486 173 89 702 423 1,060 686 409 24......................... 3,176 2,492 410 156 117 835 511 1,051 780 r635 31......................... 3,191 2,507 440 128 115 842 568 1,075 706 387 Feb. 7......................... 4,348 3,197 778 270 104 1,044 799 1,494 1,010 448 14......................... 4,890 3,320 832 634 104 1,014 1,076 1,698 1,102 711 21......................... 4,094 2,890 690 436 78 709 801 1,243 1,342 768 28......................... 3,424 2,545 600 207 72 777 611 1,048 989 696 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 U u s ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G 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 r w y k w E h ls e e r ­ e C t o io rp n o s r * a­ o A th l e l r 1972—Jan................... 5,561 4,665 437 365 94 847 5,714 1,296 904 1,750 1,763 Feb.................. 4,960 4,094 479 304 83 554 Feb.............. 5,205 1,456 719 1,344 1,686 Mar................. 4,933 4,710 228 -32 27 489 Mar............. 4,662 1,347 907 949 1,458 Apr.................. 3,573 3,713 20 -131 -29 422 3,400 1,044 746 657 953 May................. 4,257 4,089 84 102 -18 551 May............ 4,073 1,107 931 755 1,280 3,733 3,903 -55 -99 -16 532 3,804 1,056 838 804 1,108 July................. 3,253 3,626 -146 -216 -11 356 July............. 3,055 753 496 820 986 Aug.................. 3,905 3,370 41 130 363 404 Aug............. 4,021 1,356 580 927 1,158 Sept................. 4,386 4,374 -83 -58 153 408 Sept............. 4,379 1,633 599 705 1,442 Oct................... 3,333 3,452 -29 -132 41 543 3,055 1,227 406 490 932 Nov................. 4,522 4,113 335 8 66 834 Nov............. 4,198 1,538 617 709 1,334 Dec.................. 4,973 4,903 73 -41 37 556 Dec.r.......... 4,848 1,695 808 944 1,399 1973—Jan................... 4,744 4,959 -53 -259 97 281 1973—Jan.............. 4,520 1,346 794 932 1,449 Week ending— Week ending— 1972—Dec. 6......... 5,182 5,051 85 4 42 784 1972—Dec. 6... 5,346 1,847 925 868 1,707 13......... 5,059 4,970 63 -13 40 578 13... 5,305 2,026 742 1,100 1,436 20......... 4,621 4,671 -14 -68 32 566 20... 4,575 1,460 756 1,028 1,331 27......... 5,173 4,990 194 -56 44 397 27... 4,382 1,617 763 819 1,183 1973—Jan. 3......... 5,021 5,052 58 -120 31 398 1973—Jan. 3... 4,530 1,362 830 860 1,479 10 4,878 4,942 26 -207 116 343 10... 4,543 1,338 749 1,094 1,363 17......... 4,826 5,064 -69 -290 119 254 17... 4,718 1,468 932 988 1,330 24......... 4,705 5,008 -112 -287 96 228 24... 4,671 1,378 917 953 1,424 31......... 4,408 4,710 -93 -294 85 254 31... 4,205 1,320 636 723 1,526 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ U.S. GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, FEBRUARY 28, 1973 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds Mar. 1, 1973. 4.202 July 31, 1973.... 1,702 Nov. 15, 1974.....5% 5,442 Aug. 15, 1973.... .4 3,894 Mar. 8, 1973. 4.206 Aug. 2, 1973.... 1,801 Dec. 31, 1974.... .57/8 2,102 Nov. 15, 1973....•41/s 4,337 Mar. 15, 1973. 4.203 Aug. 9,1973.... 1,801 Feb. 15, 1975.....5% 4,015 Feb. 15, 1974....• 41/s 2,467 Mar. 22, 1973. 4.207 Aug. 16, 1973.... 1,803 Feb. 15, 1975....•57/8 1,222 May 15, 1974.....41/4 2,851 Mar. 29, 1973. 4.205 Aug. 23, 1973.... 1,801 Apr. 1, 1975....-Wi 8 Nov. 15, 1974....• 37/8 1,215 Mar. 31, 1973. 1,702 Aug. 28, 1973.... 1,803 May 15, 1975....•5 7/s 1,776 May 15, 1975-85..41/4 1,206 Apr. 5, 1973. 4.203 Sept. 25, 1973.... 1,801 May 15, 1975.....6 6,760 June 15, 1978-83..31/4 1,501 Apr. 12, 1973. 4.205 Oct. 23, 1973.... 1,802 Aug. 15, 1975....•57/s 7,679 Feb. 15, 1980.... .4 2,579 Apr. 19, 1973. 4.201 Nov. 20, 1973.... 1,802 Oct. 1, 1975.....1 Vt 30 Nov. 15, 1980.....31/2 1,898 Apr. 20, 19 731 2,012 Dec. 18, 1973.... 1,800 Nov. 15, 1975.....7 3,115 Aug. 15, 1981 .7 807 Apr. 26, 1973. 4.201 Jan. 15, 1974.... 1,804 Feb. 15, 1976.....6% 3,739 Feb. 15, 1982.....63/8 2,702 Apr. 30, 1973. 1.700 Feb. 12, 1974.... 1,801 Feb. 15, 1976. ... •5 7/s 4,945 Aug. 15, 1984.... •63/8 2,353 May 3, 1973. 4.303 Apr. 1, 1976.....1 % 27 May 15, 1985.....314 990 May 10, 1973. 4.303 May 15, 1976.....5% 2,802 Nov. 15, •61/8 1,216 May 17, 1973. 4.304 May 15, 1976.....61/2 2,697 Aug. 15, 1987-92..41/4 3,756 May 24, 1973. 4,301 Treasury notes Aug. 15, 1976.....71/2 4,194 Feb. 15, 1988-93..4 239 May 31, 1973. 3,604 Apr. 1, 1973.........UA. 34 Aug. 15, 1976.... .61/2 3,881 May 15, 1989-94..41/8 1,504 June 7, 1973. 1,897 May 15, 1973.........7V4 5,844 Oct. 1, 1976.... .1 Vi 11 Feb. 15, 1990.....3% 4,226 June 14, 1973. 1.902 May 15, 1973.........4% 3,792 Nov. 15, .614 4,325 Feb. 15, 1993... ..6 y4 627 June 21, 1973. 1,906 Aug. 15, 1973.........8Vg 1,839 Feb. 15, 1977.....8 5,163 Feb. 15, 1995.....3 947 June 22, 1973 f 2,510 Oct. 1, 1973.........1 Vi 30 Apr. 1,1977___ .1% 5 Nov. 15, 1998.....3% 3,332 June 28, 1973. 1.903 Feb. 15, 1974.........7y4 2,960 Aug. 15, 1977.....iy4 2,264 June 30, 1973. 1.701 Apr. 1, 1974.........VA 34 Oct. 1, 1977.... 15 July 5, 1973. 1.901 May 15, 1974.........iy4 4,334 Feb. 15, .61/4 8,389 Convertiblebonds July 12, 1973. 1.902 Aug. 15, 1974.........5Yg 10,284 Nov. 15, 1978.....6 8,207 Investment Series B July 19, 1973. 1.902 Sept. 30, 1974.........6 2,060 Aug. 15, 1979.....6% 4,559 Apr. 1, 1975-80..2% 2,292 July 26, 1973. 1,901 Oct. 1, 1974.........VA 42 Nov. 15, 1979.... •65/s 1,603 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAAl 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 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 1972—Jan.r.. 1,776 1,120 654 2 639 545 591 1,696 377 147 440 56 676 Feb.r. 2,005 1,049 951 5 354 977 673 1,933 531 78 433 29 861 Mar.r 2,239 1,289 720 225 5 434 954 851 2,110 463 134 348 329 838 Apr.r. 1,989 1,382 601 6 472 549 969 1,950 490 229 434 10 788 May r. 2,017 990 1,023 374 850 792 1,950 657 214 306 67 705 Juner. 2,270 989 1,064 209 246 1,226 799 2,000 347 150 533 393 576 July r. 1,805 1,322 481 647 467 690 1,796 327 121 223 154 971 Aug.r 1,966 820 1,138 468 897 600 1,931 444 111 429 162 784 Sept.r 1,726 663 803 257 298 1,016 414 1,609 238 107 590 270 404 Oct. r. 2,200 1,662 533 487 689 1,025 2,147 444 162 409 52 1,082 Nov.r 1,862 1,147 711 425 572 866 1,762 312 215 365 56 814 Dec.r. 1,797 872 653 '268 147 754 895 1,507 351 21 204 332 599 1973—Jan... 1,902 1,138 763 602 439 863 1,784 363 214 365 117 726 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 5 Includes urban redevelopment loans. by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt, loans. and payment to issuer, which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues 4 Water, sewer, and other utilities. based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 SECURITY ISSUES □ MARCH 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 a ( n U S d t . a S lo t . e c ) 4 al Other 5 Total Total P o u 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—Dec........... 6,911 443 698 2,058 39 3,673 2,473 1,190 1,283 169 1,031 1972—Jan............ 7,188 529 1,401 1,737 316 3,205 2,371 1,767 604 303 531 Feb............ 7,302 539 1,325 1,942 126 3,369 2,329 1,917 412 195 846 Mar........... 6,556 586 400 2,185 156 3,229 2,253 1,677 577 282 694 Apr............ 8,635 2,281 1,090 1,963 26 3,275 2,411 1,622 789 263 601 May.......... 9,547 2,360 1,500 1,924 165 3,597 2,450 1,676 774 130 1,017 June.......... 7,588 536 300 2,222 190 4,341 2,556 1,336 1,218 612 1,174 July........... 6,921 496 1,000 1,784 59 3,583 2,465 1,807 657 206 913 Aug........... 7,136 606 1,685 1,898 54 2,893 1,945 1,523 421 206 743 Sept........... 5,635 474 650 1,701 90 2,720 1,651 862 789 305 765 Oct.r......... 9,505 2,530 1,141 1,970 74 3,791 2,336 1,772 565 421 1,033 Nov.r. ... 10,987 3,590 2,134 1,816 70 3,377 2,343 1,361 982 154 880 Dec........... 8,210 2,553 200 1,760 302 3,396 2,625 1,024 1,601 272 498 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—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 60 865 171 448 155 178 264 102 3 386 354 197 30 942 170 383 197 235 178 129 3 924 295 177 1 562 190 607 154 193 281 142 71 381 357 376 16 751 270 468 299 181 341 171 15 1,018 520 368 431 349 179 July....................................... 464 110 77 239 130 30 455 343 390 196 949 200 Aug....................................... 192 261 308 342 94 2 452 184 237 662 161 Sept....................................... 441 162 302 242 61 649 598 32 1 166 66 Oct.r..................................... 269 114 192 326 152 12 522 758 313 58 887 187 Nov.r.................................... 346 79 429 271 61 8 322 472 657 1 528 202 Dec........................................ 486 103 343 149 214 25 491 370 34 17 1,057 107 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ- 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1967......................... 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 1968......................... 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 1969......................... 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 1970......................... 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 1971......................... 46,687 9,507 37,180 31,917 8,190 23,728 14,769 1,318 13,452 1971—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 II................. 11,514 2,389 9,123 7,250 2,191 5,050 4,264 198 4,066 Ill................ 9,776 2,212 7,564 6,118 1,603 4,515 3,659 609 3,049 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial i & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1967......................... 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 1968......................... 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 1969......................... 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 1970......................... 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1971......................... 6,585 2,534 827 2,290 900 800 6,486 4,206 3,925 1,600 5,005 2,017 1971—III................ 852 676 -10 678 195 230 1,493 814 832 1,442 1,148 404 IV................. 1,361 453 190 445 -27 163 1,749 1,183 980 54 1,683 734 1972—1................... 696 423 31 545 267 15 827 872 1,020 402 1,856 425 II.................. 704 851 344 774 127 164 1,844 1,176 806 464 1,233 638 Ill................ 479 530 459 673 138 28 1,410 1,061 573 305 1,456 453 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 1972—Jan.... 521 475 46 56,694 3,163 53,531 Feb. .. 404 514 -110 58,536 3,478 55,058 1961 2,951 1,160 1,791 22,789 980 21,809 Mar... 472 667 -195 58,740 3,251 55,489 1962 2,699 1,123 1,576 21,271 1,315 19,956 Apr.. . 405 655 -250 58,870 2,827 56,043 1963 2,460 1,504 952 25,214 1,341 23,873 May.. 378 585 -207 59,736 2,763 56,973 June.. 393 544 -151 57,708 3,015 54,693 1964 3,404 1,875 1,528 29,116 1,329 27,787 July . . 398 424 -26 56,932 3,219 53,713 1965 4,359 1,962 2,395 35,220 1.803 33,417 Aug... 391 582 -191 58,186 3,375 54,811 1966 4,671 2,005 2,665 34,829 2,971 31,858 Sept... 310 442 -132 57,193 3,395 53,798 Oct... 384 411 -27 57,525 3,719 53,806 1967 4,670 2,745 1,927 44,701 2,566 42,135 Nov... 387 645 -258 59,854 3,549 56,305 1968 6,820 3,841 2,979 52,677 3,187 49,490 Dec.. . 449 619 -170 59,831 3,035 56,796 1969 6,717 3,661 3,056 48,291 3,846 44,445 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 1970 4,624 2,987 1,637 47,618 3,649 43,969 1971 5,145 4,751 774 56,694 3,163 53,531 1 Includes contractual and regular single purchase sales, voluntary and 3 Cash and deposits, receivables, all U.S. Govt, securities, and other contractual accumulation plan sales, and reinvestment of investment in­ short-term debt securities, less current liabilities. come dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Note.—Investment Company Institute data based on reports of mem­ bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 BUSINESS FINANCE □ MARCH 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s tr U p i r b n o u d f t i i t e s s d ­ co c a n a t ll s i p o o u i w n t m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d fi t i t e s s ­ d co c a t n a l i s l o p o u n i w t m a ­ l p ­ ances1 ances 1 1966................ 84.2 34.3 49.9 20.8 29.1 39.5 1971— I. ... 81.3 38.0 43.2 25.5 17.7 57.5 1967................ 79.8 33.2 46.6 21.4 25.3 43.0 II.. . 84.5 38.6 45.8 25.4 20.4 59.4 III... 84.1 37.5 46.6 25.5 21.0 61.2 1968................ 87.6 39.9 47.8 23.6 24.2 46.8 IV... 83.2 35.3 48.0 25.2 22.7 63.0 1969................ 84.9 40.1 44.8 24.3 20.5 51.9 1970................ 74.3 34.1 40.2 24.8 15.4 55.2 1972—1. ... 88.2 38.8 49.5 26.0 23.5 64.8 1971............... 83.3 37.3 45.9 25.4 20.5 60.3 II. . . 91.6 40.1 51.5 26.2 25.3 68.0 III... 95.7 41.8 53.9 26.5 27.3 68.4 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS1 (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 . .2 Other G U o . v S t . .2 Other taxes 196 8 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 127.8 14.3 61.0 196 9 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 148.0 12.6 76.0 1970—I.. 187.0 477.8 46.1 10.4 4.7 195.0 189.6 32.1 290.8 7.2 144.7 13.3 79.3 II. 185.6 481.8 45.6 8.7 4.4 197.9 191.8 33.4 296.2 7.0 146.9 10.8 82.4 III 185.3 484.6 46.5 7.1 4.2 201.0 193.5 32.3 299.3 6.8 147.9 11.5 84.3 IV 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 152.4 11.8 83.7 1971—1.. 192.0 494.1 48.5 7.8 4.2 201.3 198.5 33.8 302.1 6.1 148.5 13.7 86.6 II. 196.5 498.2 51.1 7.7 3.9 203.3 199.2 33.1 301.7 5.3 149.1 12.4 88.3 III 200.9 507.2 52.4 7.8 3.9 206.5 201.6 34.9 306.3 5.0 150.6 13.8 90.1 IV 204.9 516.7 55.3 10.4 3.5 207.5 203.1 36.8 311.8 4.9 158.0 14.5 89.7 1972—1.. 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 156.6 15.7 93.3 II. 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 158.0 13.4 96.8 Ill 219.1 545.3 57.3 7.6 2.9 222.5 215.2 39.8 326.2 4.7 161.7 15.0 98.9 1 Figures revised to exclude all financial institutions. 2 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s t her n C i o c m ati m on u s ­ Other i A (S . . R A . . ) 1969... 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972 2. 84.54 15.52 15.65 2.45 1.90 2.52 1.41 14.54 2.57 11.90 20.18 1970—IV. 21.66 4.26 4.40 .50 .43 .76 .33 3.12 .63 2.81 4.42 78.63 1971—1... 17.68 3.11 3.58 .49 .34 .34 .28 2.70 .41 2.50 3.94 79.32 II.. 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 III. 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 ... 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 III... 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV2. 25.30 4.65 4.54 .67 .47 .69 .35 4.07 .78 9.0 92.36 1973—I2................. 21.55 3.94 3.79 .64 .43 .54 .32 3.63 .53 7.73 96.66 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

MARCH 1973 □ REAL ESTATE CREDIT A 51 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti 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 n i c i n i o s a a t n l i n ­ s ­ 1 a U g . e S n . - v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ w u F V n H ri d A t A e te - r - n - t C i v o e o n n n a ­ ­ l 1941........... 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945........... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 196 5 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 196 6 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 196 7 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 196 8 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 196 9 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 197 0 451.2 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109.2 311.3 1970—III. 443.4 349.7 31.7 61.9 30.8 10.0 20.8 412.5 276.0 228.4 47.7 136.5 111.4 25.1 106.8 305.7 IV. 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.3 48.9 140.3 114.5 25.8 109.2 311.3 1971—I*... 459.0 361.8 33.6 63.6 31.8 10.1 21.6 427.2 283.6 234.4 49.2 143.6 117.3 26.3 111.0 316.2 II*.. 471.1 372.0 35.2 63.9 31.9 9.7 22.2 439.3 290.9 240.7 50.2 148.3 121.6 26.7 114.4 324.9 Ill*, 485.6 383.6 37.4 64.6 32.4 9.8 22.6 453.2 299.7 248.0 51.8 153.5 125.8 27.7 117.5 335.7 IV*. 499.9 394.5 39.4 66.1 32.9 9.9 23.0 467.0 307.8 254.2 53.7 159.2 130.5 28.7 120.7 346.3 1972—1*... 511.7 404.2 41.2 66.4 33.5 9.9 23.6 478.2 314.1 259.6 54.5 164.1 134.6 29.4 II*.. 529.1 418.9 42.7 67.5 34.4 10.2 24.2 494.8 324.6 268.8 55.8 170.2 140.0 30.3 III*. 546.9 434.2 44.3 68.4 35.1 10.4 24.7 511.9 335.1 278.4 56.7 176.8 145.4 31.4 IV*. 564.5 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 agencip*—new FNMA, Federal Land Banks, GNMA Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul­ (Pools), and the FHLMC. 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) Government- All residential Multifamily i U 1iderwritte;n Con­ E pe n r d io o d f Total t F u i i n c t n i i s o a a t l i n n ­ s ­ h O ol t d h e e r r s Total t F u i c i n t n i i s o a a t l i n n ­ s ­ 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 1945.................................. 18.6 4.3 4.1 .2 14.3 1 1 1 9 9 9 4 4 6 1 5 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 4 1 . . . 3 2 2 1 1 1 7 4 5 6 . . . 8 9 7 3 9 8 4 . . .5 6 4 2 5 5 9 . . . 9 0 7 2 3 3 0 . . . 5 7 6 8 2 2 . . . 3 2 2 1 1 9 9 6 6 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 8 9 2 7 . . 2 6 6 6 5 9 . . 9 2 3 38 5 . . 3 0 3 3 0 0 . . 9 9 1 1 1 2 6 8 . . 3 3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 1965.................................. 212.9 73.1 42.0 31.1 139.8 1 1 1 9 9 9 6 6 6 7 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 25 8 6 0 0 4 . . . 1 0 0 2 2 22 1 3 3 3 6 . . . 7 6 2 4 4 3 0 3 6 . . . 3 9 4 4 4 3 0 3 7 . . . 3 9 2 2 3 3 1 4 9 . . . 5 7 0 9 8 8 . . . 8 2 2 1966.................................. 2 2 23 5 2 6 1 3 . . . 1 2 6 7 8 7 6 4 9 . . . 1 9 4 5 4 4 0 4 7 . . . 8 6 4 3 3 3 3 1 2 . . . 3 5 8 1 1 1 5 6 4 6 6 7 . . . 1 8 6 1 1 9 9 6 6 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 9 1 8 9 . . 6 0 2 2 6 50 5 . . 8 0 4 5 7 4 . . 8 0 5 47 2 . . 3 2 4 3 1 7 . .7 3 1 9 0 . . 7 8 1969................................... 2 2 6 8 6 0 . . 8 2 9 90 7 . . 2 2 5 5 4 9 . . 5 9 3 3 5 7 . .3 7 1 1 7 8 6 2 . . 6 9 1970................. 338.2 277.1 61.1 58.0 45.8 12.2 280.2 97.2 59.9 37.3 182.9 1970—IV........ 338.2 277.1 61.1 58.0 45.8 12.2 283.6 98.3 61.0 37.3 185.3 1971—1 II * * .... . . . .. . . . . 3 3 5 4 3 3 . . 1 3 2 2 8 89 1 . . 9 4 6 61 3 . . 8 2 6 5 2 9 . . 1 7 4 47 9 . . 1 2 1 12 2 . . 9 6 I II ll * * .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 9 9 0 9 . . 9 7 1 1 0 0 2 0 . . 9 4 6 6 4 2. . 8 4 3 3 8 7 . . 5 6 1 1 9 9 6 0 . . 8 5 Ill*... 364.0 298.4 65.6 64.3 50.4 13.9 307.8 105.2 65.7 39.5 202.6 IV*.... 374.7 306.1 68.6 66.8 52.0 14.9 1972—1*........................... 314.1 1972— I 1 I * * .... . . . .. . . . . 3 3 9 8 5 2 . .9 8 3 32 1 4 2 . . 1 9 7 70 1. . 7 0 6 7 8 1 . . 8 3 5 5 3 5 . . 3 3 1 1 5 6 . . 4 0 I II I I » p .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 33 2 5 4 . . 1 6 III*... 408.9 335.6 73.3 73.8 57.3 16.5 i Includes outstanding amount of VA vendee accounts held by private i Structures of five or more units. investors under repurchase agreement. stan N d o in t g e * .— * 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 □ MARCH 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings 2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar- ven­ Total in- guar- ven­ sured anteed tional sured anteed tional 1941.................................. 4,906 3,292 1,048 566 4,812 3,884 900 28 1945.................................. 4,772 3,395 856 521 4,208 3,387 797 24 1964.................................. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965.................................. 49,675 32,387 7,702 2,688 21,997 14,377 .2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966.................................. 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967.................................. 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968.................................. 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969.................................. 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—11.......................... 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,880 49,260 15,931 12,092 21,237 7,519 101 Ill........................ 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21,654 7,671 103 IV......................... 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—1............................ 74,424 46,343 7,971 2,595 35,777 23,595 4,486 58,680 50,553 16,157 12,010 22,386 8,014 113 II.......................... 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 8,174 107 Ill........................ 79,936 50,280 8,246 2,806 39,228 25,500 4,156 60,625 51,989 16,216 12,033 23,740 8,561 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 8,901 50 1972—1........................... 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 9,195 50 II.......................... 90,114 56,782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 9,586 60 IIIp...................... 94,614 65,897 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 7,153 733 346 6,074 772 69,973 64,172 11,961 5,954 46,257 5,801 1969.................................................. 7,531 6,991 594 220 6,177 540 72,027 66,254 11,715 5,701 48,838 5,773 1970................................................... 7,181 6,867 386 88 6,393 314 74,375 68,726 11,419 5,394 51,913 5,649 1971r................................................ 7,573 7,070 322 101 6,647 503 75,496 69,895 10,767 5,004 54,124 5,601 1972.................................................. 8,802 8,101 277 202 7,622 701 77,319 71,640 9,944 4,646 57,050 5,679 1971—Dec.'.................................... 1,368 1,302 20 12 1,270 66 75,496 69,895 10,767 5,004 54,124 5,601 1972—Jan......................................... 475 447 37 16 394 28 75,517 69,978 10,722 4,986 54,270 5,539 Feb........................................ 436 392 26 12 354 44 75,456 69,940 10,674 4,952 54,314 5,516 569 484 24 18 442 85 75,424 69,897 10,599 4,932 54,366 5,527 Apr........................................ 560 506 30 15 461 54 75,469 69,926 10,535 4,903 54,488 5,543 May...................................... 602 542 15 13 514 60 75,493 69,941 10,467 4,873 54,601 5,552 June...................................... 708 643 31 21 591 65 75,547 69,969 10,391 4,838 54,740 5,578 July....................................... 655 605 19 25 561 50 75,626 70,031 10,314 4,811 54,906 5,595 Aug....................................... 743 682 19 21 642 61 75,723 70,105 10,224 4,776 55,105 5,618 Sept....................................... 708 663 22 14 627 45 75,813 70,195 10,139 4,734 55,322 5,618 Oct........................................ 718 673 10 16 647 45 75,952 70,323 10,053 4,700 55,570 5,629 803 746 28 13 705 57 76,207 70,567 10,000 4,668 55,899 5,640 Dec....................................... 1,830 1,723 16 18 1,689 107 77,319 71,640 9,944 4,646 57,050 5,679 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

MARCH 1973 □ 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 n it 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 r n 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 t r i 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 1,633 8.69 21/8 73.3 9.6 1.29 10.2 1970............................. 912 2,341.1 2,567 9.93 22/8 74.7 10.8 1.32 11.1 1971.............................. 1,664 3,982.5 2,393 9.07 22/10 74.9 10.0 1.29 10.4 1971—Apr.................. 137 302.1 2,205 8.98 22 75.2 9.9 1.28 10.4 May................. 146 257.3 1,762 8.91 23/4 75.6 10.0 1.27 10.4 June................. 203 729.0 3,591 8.92 23/8 75.5 9.8 1.29 10.2 July................. 183 386.5 2,112 8.94 21/10 74.4 9.8 1.26 10.4 153 434.4 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 Apr.................. 200 381.1 1,906 8.44 24/6 76.3 9.5 1.29 9.6 May................. 246 399.6 1,624 8.48 23/4 76.0 9.5 1.26 9.8 June................. 268 683.2 2,549 8.55 23/0 75.4 9.5 1.29 9.8 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 om ew e Home FHA- VA- Con­ Total t S e h rm or t­ i t L e o rm ng ­ 2 period) Total i con­ pur­ Total 2 in­ guar- ven­ struc­ chase sured anteed tional tion 278 213 195 176 19 46 1965......................... 5,007 4,335 5,997 3,074 2,923 1,043 1945............... 1,913 181 1,358 5,376 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 1,527 4,076 4,386 3,985 401 1,432 1965............... 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968......................... 2,734 1,861 5,259 4,867 392 1,382 1966............... 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969......................... 5,531 1,500 9,289 8,434 855 1,041 1970......................... 3,256 1,929 10,615 3,081 7,534 2,331 1967............... 20,122 4,243 9,604 121,805 5,791 6,351 109,663 2,714 5,392 7,936 3,002 4,934 1,789 1968............... 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1972......................... 4,790 4,749 7,979 2,961 5,018 2,104 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 1972—Jan............... 186 885 7,238 2,569 4,669 1,948 1971............... 39,472 6,835 18,811 174,385 13,798 10,848 149,739 Feb.............. 148 871 6,515 2,342 4,173 2,014 Mar............. 165 689 5,992 2,125 3,867 2,008 1971—Dec... 3,592 573 1,590 174,385 13,798 10,848 149,739 Apr.............. 318 396 5,913 2,049 3,864 1,762 May............. 260 320 5,853 2,019 3,835 1,789 1972—Jan.... 2,632 481 1,253 175,838 13,976 11,013 150,849 420 198 6,074 1,944 4,130 1,746 Feb.. . 2,849 518 1,400 177,614 14,167 11,264 152,183 July............. 285 222 6,138 1,990 4,148 1,497 Mar... 3,910 712 1,861 180,145 14,450 11,546 154,149 Aug.............. 406 249 6,295 2,083 4,212 1,442 Apr... 3,819 707 1,819 182,711 14,697 11,789 156,225 Sept............. 631 189 6,736 2,307 4,429 1,443 May. . 4,603 836 2,276 185,431 14,878 12,010158,543 542 233 7,045 2,440 4,605 1,334 June.. 5,449 872 2,920 188,884 15,019 12,293 161,572 Nov............. 445 246 7,245 2,520 4,725 1,371 July... 4,572 743 2,515 191,642 15,153 12,606 163,883 Dec.............. 984 251 7,979 2,961 5,018 2,104 Aug... 5,379 803 3,087 194,955 15,263 12,892 166,800 Sept... 4,689 739 2,587 197,881 15,342 13,098 169,441 332 480 7,831 2,805 5,025 1,306 Oct___ 4,522 761 2,423 200,554 15,378 13,334 171,842 Nov... 4,393 714 2,307 203,266 15,490 13,544 174,232 Dec... 4,550 678 2,122 206,367 15,639 13,764 176,964 1 Secured or unsecured loans maturing in 1 year or less. 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. not shown separately. Note.—Federal Home Loan Bank Board data. 2 Beginning with 1958, includes shares pledged against mortgage loans; beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 REAL ESTATE CREDIT □ MARCH 1973 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 E pe n r d io o d f Total F su H in re A ­ d - a g n u te a e r­ d c P ha u s r ( p e d ­ e s u ri r o in d S g ) ales 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 ­ Date of auction Offer M e a d m or o t c u g e n a A p g ts c t e e ­ d A c ( m o s v y te h e m e ie r n o r m l m a t r d s g t i ) ­ e t­ Offe M a re m o d r o t u g c n a e g t A s p e c te ­ d A c m ( o s y v te h m e i e e r n o r m l m a t r d s g t i ) ­ e t­ 1 1 1 9 9 9 6 6 6 7 9 8 1 5 7 0 , , , 5 1 9 2 6 5 2 7 0 7 4 5, , , 1 0 6 2 4 8 1 8 0 2 3 1 , , , 0 2 4 4 7 7 6 0 4 4 1 1 , , , 1 4 9 2 0 4 1 0 4 12 6 2 1 , , . 6 6 7 9 3 3 6 0 2 3 1 , , 5 2 5 3 8 0 9 1 7 In m do il l l l i a o r n s s of per I n ce nt In m do il l l l i a o r n s s of per I n ce nt 197 0 15,502 11,071 4,431 5,078 8,047 5,203 197 1 17.791 3,574 336 4,986 5,694 1972—Sept. 5.... 220.6 151.2 7.64 197 2 19.791 i4*624 ’ 5) i i 2 ‘ 3,684 213 11 28.7 26.5 7.84 18.... 295.9 148.1 7.66 1972-Jan... 17,977 281 574 5,558 Feb.. 18,220 324 598 5,696 Oct. 2.... 352.8 211.5 7.70 A M p a r r. . . . 1 1 8 8, , 4 3 0 4 3 2 1 1 3 3 , , 7 6 4 5 4 4 4 4 , , 6 6 8 59 7 2 3 4 1 6 6 469 5 5 , , 6 85 3 3 5 1 1 0 6.... 271.2 224.9 7.73 42.2 37.2 7.90 May. 18,599 13,923 4,674 321 6,186 30.... 186.4 162.7 7.74 June. 18,628 13,952 4,670 223 5,957 July.. 18,740 14,013 4,714 258 Nov. 6 75.0 68.0 7.90 Aug.. 19,023 14,188 4,816 427 13.. . 78.7 49.2 7.72 Sept.. 19,295 14,380 4,888 401 7,387 27... 60.8 36.2 7.70 Oct. . 19,438 14,462 4,939 265 Nov.. 19,619 14,558 5,016 315 Dec. 4........ 36.4 30.9 7.87 Dec.. 19.791 14,624 5,112 307 11___ 82.2 42.4 7.68 26 108.7 66.3 7.69 Note.—Federal National Mortgage Assn. data. Total holdings include 1973—Jan. 2 39.3 25.5 7.84 conventional loans. Data prior to Sept. 1968 relate to secondary market 8___ 74.2 61.3 7.69 portfolio of former FNMA. Mortgage holdings include loans used to back 22.... 107.0 92.1 7.70 bond issues guaranteed by GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commit­ Feb. 5.... 128.7 65.4 7.71 ments in addition to 1- to 4-family loan commitments accepted in FNMA’s 6 100.9 62.9 7.89 free market auction system, and through the FNMA-GNMA Tandem 20.... 110.3 71.6 7.73 Plan (Program 18). 21 66.0 49.6 7.92 Mar. 5.... 170.8 107.7 7.75 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 ASSOCIATION ACTIVITY GNMA MORTGAGE-BACKED SECURITY PROGRAM (In millions of dollars) (In millions of dollars) Mortgage Mortgage Mortgage holdings transactions commitments Pass-through securities (during Bonds End of period) Period sold period Applications Securities Total FHA- VA- Made Out received issued su in re ­ d a g n u te a e r- d c P ha u s r e ­ s Sales d p u er r i i o n d g st i a n n g d­ 197 0 1,126.2 452.4 1,315.0 197 1 4,373.6 2,701.9 300.0 1967............. 3,348 2,756 592 860 1,045 1,171 197 2 3,854.5 2,661.7 1968............. 4,220 3,569 651 1,089 1 867 1,266 1969............. 4,820 4,220 600 827 615 1,131 1972—Jan.. 384.1 247.7 1970............. 5,184 4,634 550 621 897 738 Feb.. 511.2 391.2 200.0 1971............. 5,294 393 Mar. 528.3 322.5 1972............. 5.113 Apr., 187.8 275.1 May, 216.4 212.9 'soo'.o' 1972-Jan.... 5,316 June, 245.8 193.2 Feb... 5,310 July. 135.5 145.8 Mar... 5,271 Aug. 548.3 140.3 Apr... 5,153 Sept. 192.0 130.9 May.. 5,241 Oct.. 237.8 164.1 June.. 5,249 Nov. 226.4 138.2 July... 5,301 Dec. 440.9 299.8 Aug... 5,405 Sept... 5,278 1973—Jan.. 515.7 323.3 Oct___ 5,203 Nov... 5,152 Dec. r. 5.113 Note.—Government National Mortgage Assn. data. Under the Mort­ gage-Backed Security Program, GNMA guarantees the timely payment 1973-Jan... 5,117 of principal and interest on both pass-through and bond-type securities, which are backed by a pool of mortgages insured by FHA or Farmers Home Admin, or guaranteed by VA and issued by an approved mortgagee. inc N lu o d t e e . a — s G m o a v ll e r a n m m o e u n n ta t l o N f a c t o i n o v n e a n l ti M on o a r l t g l a o g a e n s A . s D sn a . t a d a p t r a io . r T t o o t a S l e h p o t. l d 1 in 96 g 8 s T FH o L d M at C e, . bond-type securities have been issued only by FNMA and 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 conventional mortgage loans acquired by former FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Community Facilities Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 Period ( F e H ff L ec B ti B ve s r e a ri t e e s ) ( H s F e H U rie A D s ) o i n n Y s F i u e H r l e d A d - Period Mortgages Pro­ P e r r o ty p­ Mortgages New Existing New l h o n o e a m w ns e Total h N o e m w es h is o E t m i x n ­ e g s jects 1 m p i r 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 homes 8,689 1,705 5,760 591 634 2,652 876 1,774 1968......................... 6.97 7.03 7.12 7.21 1966............. 7,320 1,729 4,366 583 641 2,600 980 1,618 1969......................... 7.81 7.82 7.99 8.29 1967............. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1970......................... 8.44 8.35 8.52 9.03 1968............. 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1971......................... 7.74 7.67 7.75 7.70 1969............. 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1972......................... 7.60 7.52 7.64 7.52 1970............. 11,982 2,667 5,447 3,251 617 3,440 1,311 2,129 14,689 3,900 6,475 3,641 674 5,910 1,676 4,234 1972—Jan............... 7.78 7.58 7.60 7.49 Feb............... 7.60 7.48 7.60 7.46 1971—Dec.. 1,598 358 502 691 47 685 220 465 Mar.............. 7.52 7.44 7.55 7.45 Apr.............. 7.51 7.42 7.60 7.50 1972—Jan. . rl,289 420 516 291 62 629 204 425 May............. 7.53 7.46 7.60 7.53 Feb.. '1,109 366 448 251 44 '560 199 361 June............. 7.55 7.49 7.60 7.54 Mar.. 1,293 349 449 441 54 658 231 427 July............. 7.58 7.50 7.65 7.54 Apr.. '946 272 381 242 51 509 170 339 Aug.............. 7.59 7.52 7.65 7.55 May. '913 259 369 229 56 603 185 418 Sept.............. 7.57 7.55 7.70 7.56 June. 1,025 271 372 311 71 848 239 609 Oct............... 7.62 7.57 7.70 7.57 July.. 865 261 374 183 47 662 179 483 Nov.............. 7.64 7.57 7.70 7.57 Aug.. '1,044 310 440 227 67 764 220 544 Dec.............. 7.66 7.59 7.70 7.56 Sept.. 957 245 340 295 77 749 209 540 Oct... 847 255 343 155 94 711 200 511 1973—Jan............... 7.68 7.60 7.70 7.55 Nov.. 985 261 331 296 97 777 241 536 Dec.. 190 245 430 705 216 489 Note.—Annual data are averages of monthly figures. The HUD(FHA) data are based on opinion reports submitted by field 1 Monthly figures do not reflect mortgage amendments included in annual offices on prevailing local conditions as of the first of the succeeding totals. month. Yields on FHA-insured mortgages are derived from 2 Not ordinarily secured by mortgages. weighted averages of private secondary market prices for Sec. 3 Includes a small amount of alteration and repair loans, not shown separ­ 203, 30-year mortgages with minimum downpayment and an ately; only such loans in amounts of more than $1,000 need be secured. assumed prepayment at the end of 15 years. Gaps in data are due to periods of adjustment to changes in maximum permis­ Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured sible contract interest rates. The HUD(FHA) interest rates loans represent gross amount of insurance written; VA-guaranteed loans, on conventional first mortgages in primary markets are un­ gross amounts of loans closed. Figures do not take into account principal weighted and are rounded to the nearest 5 basis points. The repayments on previously insured or guaranteed loans. For VA-guaranteed FHLBB effective rate series reflects fees and charges as well loans, amounts by type are derived from data on number and average as contract rates (as shown in the table on conventional first- amount of loans closed. mortgage terms, p. A-37) and an assumed prepayment at end of 10 years. 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 F V H A A- t C i v o o e n n n a ­ ­ l c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g s O t i a n u n g t d ­ ­ 1966................. 3.40 2.54 .54 .32 .36 1967................. 3.47 2.66 .54 .27 .32 1968................. 3.17 2.43 .51 .23 .26 1970.................... 325 325 325 1969................. 3.22 2.43 .52 .27 .27 1971.................... 968 821 147 778 64 182 1970................. 3.64 2.67 .61 .36 .33 1972..................... 1,788 1,502 286 1,155 321 198 1971................. 3.93 2.82 .65 .46 .46 1971—Dec......... 968 821 147 45 49 7 182 1969—III.... 2.91 2.18 .47 .26 .25 IV___ 3.22 2.43 .52 .27 .27 1972—Jan.......... 979 828 151 17 2 17 182 Feb.......... 893 844 49 23 104 126 290 1970—1........... 2.96 2.14 .52 .30 .31 Mar......... 988 928 60 98 258 373 II......... 2.83 2.10 .45 .28 .31 Apr......... 1,110 1,040 70 126 232 455 Ill___ 3.10 2.26 .53 .31 c.31 May .... 1,324 1,239 86 220 165 398 IV........ 3.64 2.67 .61 .36 .33 June........ 1,415 1,344 71 194 97 117 313 July......... 1,475 1,374 100 74 11 75 298 1971—1........... 3.21 2.26 .56 .39 .40 Aug......... 1,498 1,394 104 107 75 109 263 II.......... 3.27 2.36 .53 .38 .38 Sept......... 1,545 1,408 137 66 13 136 318 Ill........ 3.59 2.54 .62 .43 .41 Oct.......... 1,631 1,439 192 102 9 189 371 IV........ 3.93 2.82 .65 .46 .46 Nov......... 1,744 1,491 253 128 10 89 293 Dec.......... 1,788 1,502 286 143 87 93 198 1972—1........... 3.16 2.21 .58 .37 .50 II......... 3.27 2.38 .53 .36 .48 Ill........ 3.82 2.74 .65 .43 .52 Note.—Federal Home Loan Mortgage Corp. data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Holdings, purchases, and sales include participations as well as whole loans. Note.—Mortgage Bankers Association of America data from Mortgage holdings include loans used to back bond issues guaranteed by reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ GNMA. Commitment data cover the conventional and Govt.-underwritten ventional mortgages held by more than 400 respondents, including loan programs. mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ MARCH 1973 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1940............................................ 8,338 5,514 2,071 1,827 371 1,245 2,824 800 1,471 553 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............................................ 89,883 70,893 28,437 18,483 3,736 20,237 18,990 7,671 6,430 4,889 1966............................................ 96,239 76,245 30,010 20,732 3,841 21,662 19,994 7,972 6,686 5,336 1967............................................ 100,783 79,428 29,796 22,389 4,008 23,235 21,355 8,558 7,070 5,727 1968............................................ 110,770 87,745 32,948 24,626 4,239 25,932 23,025 9,532 7,193 6,300 1969............................................ 121,146 97,105 35,527 28,313 4,613 28,652 24,041 9,747 7,373 6,921 1970............................................ 127,163 102,064 35,184 31,465 5,070 30,345 25,099 9,675 7,968 7,456 1971............................................ 138,394 111,295 38,664 34,353 5,413 32,865 27,099 10,585 8,350 8,164 1972............................................ 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1972—Jan................................... 137,426 110,757 38,450 34,046 5,399 32,862 26,669 10,649 7,630 8,390 Feb.................................. 136,941 110,510 38,516 33,579 5,403 33,012 26,431 10,752 6,987 8,692 Mar................................. 137,879 111,257 38,853 33,695 5,437 33,272 26,622 10,843 6,963 8,816 Apr................................ 139,410 112,439 39,348 33,981 5,504 33,606 26,971 10,933 7,179 8,859 May................................ 141,450 114,183 40,063 34,439 5,604 34,077 27,267 11,066 7,464 8,737 June................................ 143,812 116,365 41,019 35,041 5,717 34,588 27,447 11,181 7,610 8,656 July................................. 145,214 117,702 41,603 35,470 5,797 34,832 27,512 11,235 7,644 8,633 Aug................................. 147,631 119,911 42,323 36,188 5,950 35,450 27,720 11,411 7,717 8,592 Sept................................. 148,976 121,193 42,644 36,745 6,049 35,755 27,783 11,541 7,693 8,549 Oct.................................. 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 Nov................................. 152,968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 8,716 Dec................................. 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973—Jan................................... 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 Note.—Consumer credit estimates cover loans to individuals for house- and Bulletins for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Finance Mis­ Auto­ Other Total mercial compa­ Credit cellaneous Total mobile retail banks nies 1 unions lenders 1 dealers 2 outlets 1940. 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 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, 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 1966, 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 1967, 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 1968. 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 1969. 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 1970, 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 1971, 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 1972. 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1972- 110,757 96,894 51,157 28,723 14,636 2,378 13,863 225 13,638 110,510 97,135 51,264 28,695 14,702 2,474 13,375 226 13,149 111,257 97,934 51,782 28,716 14,910 2,526 13,323 228 13,095 112,439 99,139 52,629 28,955 15,083 2,472 13,300 232 13,068 May...................................................... 114,183 100,840 53,624 29,310 15,395 2,511 13,343 237 13,106 June...................................................... 116,365 102,909 54,883 29,722 15,786 2,518 13,456 243 13,213 117,702 104,132 55,688 30,065 15,910 2,469 13,570 248 13,322 119,911 106,146 56,846 30,464 16,278 2,558 13,765 251 13,514 121,193 107,278 57,566 30,650 16,439 2,623 13,915 253 13,662 Oct........................................................ 122,505 108,405 58,266 30,970 16,556 2,613 14,100 257 13,843 124,325 109,673 58,878 31,427 16,742 2,626 14,652 259 14,393 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1973- 127,368 111,690 60,148 32,177 16,847 2,518 15,678 263 15,415 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 savings banks. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ CONSUMER CREDIT A 57 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Commercial banks Finance companies 1 End of Automobile Other consumer Repair Other consumer Repair period paper goods paper and Per­ Auto­ goods paper and Per­ Total modern­ sonal Total mobile modern­ sonal ization loans paper ization loans Pur­ Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1940.............. 1,452 339 276 232 165 440 2,278 1,2531 159 193 673 1945............... 745 66 143 114 110 312 910 202 40 62 606 1950.............. 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 80 1,386 1955............... 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 42 3,240 1960.............. 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 173 5,006 196 5 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 196 6 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 196 7 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 196 8 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 196 9 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 174 12,485 197 0 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 197 1 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 197 2 59,783 16.320 10.776 5.786 5.288 5.122 3.544 12.947 32.088 10.174 2,916 3,589 497 14,912 1972—Jan.. 51,157 13,790 9,260 4,467 4,362 4,510 3,203 11,565 28,723 9,459 2,561 3,042 257 13,404 Feb.. 51,264 13,844 9,292 4,519 4,291 4,530 3,190 11,598 28,695 9,399 2,571 3,042 258 13,425 Mar.. 51.782 14,017 9,442 4,602 4,264 4,585 3,201 11,671 28,716 9,324 2,587 3,063 261 13,481 Apr.. 52,629 14,232 9,613 4,703 4,325 4,683 3,244 11,829 28,955 9,373 2,614 3,076 276 13,616 May. 53,624 14,530 9,824 4,842 4,374 4,772 3,303 11,979 29,310 9,453 2,649 3,153 281 13,774 June. 54,883 14,938 10,060 5,023 4,463 4,859 3,372 12,168 29,722 9,612 2,687 3,216 290 13,917 July. 55,688 15,244 10,193 5,144 4,517 4,903 3,410 12,277 30,065 9,714 2,725 3,270 325 14,031 Aug.. 56,846 15,566 10,331 5,321 4,631 5,003 3,479 12,515 30,464 9,822 2,773 3,318 358 14,193 Sept. 57,566 15,754 10,381 5,471 4.750 5,030 3,522 12,658 30,650 9,835 2,820 3,367 383 14,245 Oct.. 58,266 15,996 10,534 5,590 4,782 5,053 3,555 12,756 30,970 9,914 2,862 3,430 412 14,352 Nov. 58,878 16,180 10,674 5,690 4,868 5,063 3,557 12,846 31,427 10,026 2,899 3,476 452 14,574 Dec.. 59.783 16.320 10.776 5.786 5.288 5.122 3.544 12.947 32.088 10.174 2,916 3,589 497 14,912 1973—Jan.. 60,148 16,464 10,889 5,839 5,311 5,135 3,527 12,983 32,177 10,177 2,928 3,644 528 14,900 i Finance companies consist of those institutions formerly classified as See also Note to first table on preceding page, 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 cards 1 1940................................... 188 36 7 13 132 banks insti­ 1945................................... 121 16 4 10 91 tutions 1950................................... 692 159 40 102 391 1955.................................. 1,959 560 130 313 956 1960.................................. 4,566 1,460 297 775 2,034 1940................ 2,824 636 164 1,471 553 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................................... 9,315 3,411 588 980 4,336 1955................ 9,924 2,635 367 4,579 216 2,127 1967................................... 10,216 3,678 654 1,085 4,799 1960................. 13,173 3,884 623 4,893 436 3,337 1968................................... 11,717 4,238 771 1,215 5,493 1969................................... 13,722 4,941 951 1,443 6,387 1 1 9 9 6 6 5 6 . .. . . . . . . .. .. . . . . . . . . . . . . . . . . . . .. 1 1 9 8 , , 9 9 9 9 4 0 6 6 , , 9 6 4 9 6 0 1,0 9 2 81 6 5 5 , , 8 7 1 2 2 4 7 8 0 7 6 4 4 5, ,8 3 8 3 9 6 1970................................... 15,088 5,116 1,177 1,800 6,995 1967................. 21,355 7,478 1,080 6,041 1,029 5,727 1971................................... 17,021 5,747 1,472 1,930 7,872 1968................. 23,025 8,374 1,158 5,966 1,227 6,300 1972................................... 19,511 6,598 1,690 2,160 9,063 1969................. 24,041 8,553 1,194 5,936 1,437 6,921 1972—Jan......................... 17,014 5,716 1,466 1,939 7,893 1970................. 25,099 8,469 1,206 6,163 1,805 7,456 Feb........................ 17,176 5,755 1,477 1,955 7,989 1971................. 27,099 9,316 1,269 6,397 1,953 8,164 Mar....................... 17,436 5,842 1,499 1,975 8,120 1972................ 30,232 10,857 1,399 7,055 1,947 8,974 Apr........................ 17,555 5,898 1,512 1,984 8,161 May...................... 17,906 6,019 1,543 2,020 8,324 1972—Jan.. .. 26,669 9,342 1,307 5,688 1,942 8,390 June...................... 18,304 6,166 1,580 2,055 8,503 Feb.... 26,431 9,415 1,337 5,111 1,876 8,692 July....................... 18,379 6,204 1,589 2,062 8,524 Mar__ 26,622 9,491 1,352 5,102 1,861 8,816 Aug........................ 18,836 6,353 1,628 2,113 8,742 Apr__ 26,971 9,594 1,339 5,296 1,883 8,859 Sept....................... 19,062 6,421 1,645 2,144 8,852 May... 27,267 9,717 1,349 5,587 1,877 8,737 Oct......................... 19,169 6,461 1,656 2,157 8,895 June... 27,447 9,831 1,350 5,689 1,921 8,656 Nov....................... 19,368 6,535 1,675 2,165 8,993 July. .. 27,512 9,900 1,335 5,664 1,980 8,633 Dec........................ 19,511 6,598 1,690 2,160 9,063 Aug.... 27,720 10,053 1,358 5,676 2,041 8,592 Sept.. . 27,783 10,165 1,376 5,613 2,080 8,549 1973—Jan......................... 19,365 6,560 1,680 2,138 8,987 Oct___ 28,071 10,339 1,378 5,794 1,986 8,574 Nov.... 28,643 10,527 1,390 6,081 1,929 8,716 Dec__ 30,232 10,857 1,399 7,055 1,947 8,974 lan N eo o u t s e .— len O d t e h rs e . r M fin is a c n e c ll i a a n l e l o e u n s d e le rs n d c e o rs n s i i n st c lu o d f e c s r a e v d i i n t g u s n a io n n d s lo a a n n d a m ss i o s c c i e a l­ ­ 1973—Jan.... 29,859 10,825 1,379 6,402 1,955 9,298 tions and mutual savings banks. 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 a MARCH 1973 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965............................................. 78,661 27,208 22,857 2,270 26,326 1966............................................. 82,832 27,192 26,329 2*223 27*088 1967............................................. 87,171 26,320 29,504 2,369 28,978 1968............................................. 99,984 31,083 33,507 2,534 32,860 1969............................................. 109,146 32,553 38,332 2,831 35,430 1970............................................. 112,158 29,794 43,873 2,963 35,528 1971............................................. 124,281 34,873 47,821 3,244 38,343 1972............................................ 142,951 40,194 55,599 4,006 43,152 1972—Jan................................... 11,116 9,469 3,089 2,499 4,258 3,773 309 231 3,460 2,966 Feb.................................. 10,952 9,540 3,100 2,777 4,052 3,422 296 247 3,504 3,094 Mar................................. 11,741 11,746 3,176 3,363 4,453 4,337 323 303 3,789 3,743 11,374 11,224 3,162 3,269 4,370 4,158 331 326 3,511 3,471 11,687 12,556 3,274 3,699 4,393 4,593 334 399 3,686 3,865 12,057 13,096 3,412 3,938 4,577 4,779 351 403 3,717 3,976 July................................. 11,687 11,833 3,298 3,480 4,684 4,544 328 358 3,377 3,451 Aug................................. 12,484 13,166 3,491 3,696 4,990 5,094 371 431 3,632 3,945 Sept................................. 11,953 11,535 3,368 3,110 4,772 4,695 340 360 3,473 3,370 Oct.................................. 12,404 12,337 3,504 3,663 4,971 4,831 335 347 3,594 3,496 Nov................................. 12,846 12,806 3,620 3,505 5,118 5,202 327 321 3,781 3,778 Dec.................................. 12,627 13,643 3,763 3,195 4,876 6,171 351 280 3,637 3,997 1973—Jan................................... 13,304 11,923 4,006 3,393 5,282 4,949 329 259 3,687 3,322 Repayments 1965............................................. 70,463 23,706 20,707 2,112 23,938 1966............................................. 77,480 25,619 24,080 2,118 25,663 1967............................................. 83,988 26,534 27,847 2,202 27,405 1968............................................. 91,667 27,931 31,270 2,303 30,163 1969............................................. 99,786 29,974 34,645 2,457 32,710 1970............................................. 107,199 30,137 40,721 2,506 33,835 1971............................................. 115,050 31,393 44,933 2,901 35,823 1972............................................. 126,914 34,729 49,872 3,218 39,095 1972—Jan................................... 10,015 10,007 2,795 2,713 3,905 4,080 256 245 3,059 2,969 Feb.................................. 10,069 9,787 2,776 2,711 3,878 3,889 253 243 3,162 2,944 Mar................................. 10,427 10,999 2,831 3,026 3,944 4,221 262 269 3,390 3,483 10,384 10,042 2,867 2,774 3,986 3,872 268 259 3,263 3,137 10,355 10,812 2,819 2,984 3,981 4,135 287 299 3,268 3,394 10,671 10,914 2,922 2,982 4,164 4,177 283 290 3,302 3,465 July.................................. 10,593 10,496 2,917 2,896 4,249 4,115 279 278 3,148 3,207 Aug................................. 10,841 10,957 2,896 2,976 4,395 4,376 270 278 3,280 3,327 Sept................................. 10,667 10,253 2,873 2,789 4,303 4,138 263 261 3,228 3,065 Oct.................................. 10,908 11,025 3,041 3,145 4,354 4,360 263 272 3,250 3,248 Nov................................. 11,128 10,986 3,023 2,993 4,444 4,354 271 271 3,390 3,368 Dec.................................. 10,964 10,636 2,977 2,740 4,341 4,155 263 253 3,383 3,488 1973—Jan................................... 11,355 11,887. 3,097 3,169 4,649 5,077 267 267 3,342 3,374 Net change in credit outstanding 2 1965............................................. 8,198 3,502 2,150 158 2,388 1966............................................. 5,352 1,573 2,249 105 1,425 1967............................................. 3,183 -214 1,657 167 1,573 1968............................................. 8,317 3,152 2,237 231 2,697 1969............................................. 9,360 2,579 3,687 374 2,720 1970............................................. 4,959 — 343 3,152 457 1,693 1971............................................. 9,231 3,480 2,888 343 2,520 1972............................................. 16,037 5,465 5,727 788 4,057 1972—Jan................................... 1,101 -538 294 -214 353 -307 53 -14 401 -3 Feb.................................. 883 -247 324 66 174 -467 43 4 342 150 Mar................................. 1,314 747 345 337 509 116 61 34 399 260 Apr.................................. 990 1,182 295 495 384 286 63 67 248 334 May................................ 1,332 1,744 455 715 412 458 47 100 418 471 June................................ 1,386 2,182 490 956 413 602 68 113 415 511 July................................. 1,094 1,337 381 584 435 429 49 80 229 244 Aug................................. 1,643 2,209 595 720 595 718 101 153 352 618 Sept................................. 1,286 1,282 495 321 469 557 77 99 245 305 Oct.................................. 1,496 1,312 463 518 617 471 72 75 344 248 Nov................................. 1,718 1,820 597 512 674 848 56 50 391 410 Dec................................. 1,663 3,007 786 455 535 2,016 88 27 254 509 1973—Jan................................... 1,949 36 909 224 633 -128 62 -8 345 -52 1 Includes adjustments for differences in trading days. sales of instalment paper, and certain other transactions may increase 2 Net changes in credit outstanding are equal to extensions less re­ the amount of extensions and repayments without affecting the amount payments. outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often include Credit,” Section 16 (New) of Supplement to Banking and Monetary financing charges. Renewals and refinancing of loans, purchases and Statistics, 1965 and Bulletins for Dec. 1968 and Oct. 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.i N.S.A. S.A. 1 N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965. 78,661 29,528 25,265 9,438 14,430 1966. 82.832 30,073 25,897 10,368 16,494 1967. 87,171 31,382 26,461 11,238 18,090 1968. 99,984 37,395 30,261 13,206 19,122 1969. 109,146 40,955 32,753 15,198 20,240 1970. 112,158 42,960 31,952 15,720 21,526 1971. 124,281 51,237 32,935 17,966 22,143 1972. 142,951 59,339 38,464 20,607 24,541 1972—Jan... 11,116 9,469 4,417 3,843 2,953 2,434 1,687 1,425 2,059 1,767 Feb.. 10.952 9,540 4,518 4,009 2,941 2,614 1,700 1,527 1,793 1,390 Mar.. 11,741 11,746 4,622 4,777 3,197 3,173 1,887 1,874 2,035 1,922 Apr.. 11,374 11,224 4,644 4,780 3.196 3,071 1,582 1,564 1.952 1,809 May. 11.687 12,556 4,817 5,335 3,244 3,410 1,674 1,879 1.952 1,932 June. 12,057 13,096 5,098 5,617 3.196 3,479 1.792 2,036 1,971 1,964 July.. 11.687 11.833 4,926 5,103 3,107 3,184 1,506 1,580 2,148 1,966 Aug.. 12,484 13,166 5,349 5,644 3,285 3,433 1,788 2,014 2,062 2,075 Sept.. 11.953 11,535 4,972 4,852 3,181 2,971 1,731 1,683 2,069 2,029 Oct.. 12,404 12,337 5,227 5,224 3,334 3,348 1.705 1,679 2,138 2,086 Nov.. 12,846 12,806 5,413 5,059 3,434 3,581 1.792 1,704 2,207 2,462 Dec.. 12,627 13,643 5,313 5,096 3,355 3,766 1,791 1,642 2,168 3,139 1973—Jan.. 13,304 11,923 5,762 5,246 3,517 3,033 1.706 1,509 2,319 2,135 Repayments 1965. 70,463 25,663 23,056 8,311 13,433 1966. 77,480 27,716 24,952 9,342 15,470 1967. 83,988 29,549 26,681 10,337 17,421 1968. 91,667 32,611 28,763 11,705 18,588 1969. 99,786 36,470 30,981 13,193 19,142 1970. 107,199 40,398 31’705 14*354 20,742 1971. 115,050 45,395 31,730 16,033 21,892 1972. 126,914 50,796 35*259 18’117 22,742 —Jan................................... 10,015 10,007 4,008 3,926 2,777 2,594 1,401 1,432 1,829 2,055 Feb.................................. 10,069 9,787 3,980 3,902 2,787 2,642 1,461 1,365 1,841 1,878 Mar................................. 10,427 10,999 3,983 4,259 2,971 3,152 1,605 1,614 1,868 1,974 Apr.................................. 10,384 10,042 4,073 3,933 2,948 2,832 1,507 1,445 1,856 1,832 May................................ 10,355 10,812 4,121 4,340 2,918 3,055 1,459 1,528 1,857 1,889 June................................ 10,671 10,914 4,250 4,358 2,971 3,067 1,566 1,638 1,884 1,851 July................................. 10,593 10,496 4,366 4,298 2,883 2,841 1,419 1,505 1,925 1,852 Aug................................. 10,841 10,957 4,414 4,486 3,021 3,034 1,510 1,557 1,896 1,880 Sept................................. 10,667 10,253 4,221 4,132 2,938 2,785 1,533 1,457 1,975 1,879 Oct................................... 10,908 11,025 4,408 4,524 3,023 3,028 1,550 1,572 1,927 1,901 Nov................................. 11,128 10,986 4,531 4,447 3,061 3,124 1,578 1,505 1,958 1,910 Dec.................................. 10,964 10,636 4,485 4,191 2,952 3,105 1,561 1,499 1,966 1,841 —Jan................................... 11,355 11,887 4,734 4,881 3,033 2,944 1,532 1,655 2,056 2,407 Net change in credit outstanding 2 1965. 8,198 3,865 2,209 1,127 997 1966. 5,352 2,357 *945 1 *026 1,024 1967. 3,183 1,833 — 220 *901 669 1968. 8,317 4,784 1,498 1,501 534 1969i . ................... 9,360 4,485 1 *772 2,*005 1,098 1970>.............................................. 4,959 2,977 — 168 1 ’366 784 1971. 9,231 5,842 1,205 1 ’933 251 1972>. 16,037 8,543 3 205 2*490 1,799 1—Jan................................... 1,101 -538 409 -83 176 -160 286 -7 230 -288 Feb.................................. 883 -247 538 107 154 -28 239 162 -48 -488 Mar................................. 1,314 747 639 518 226 21 282 260 167 -52 Apr.................................. 990 1,182 571 847 248 239 75 119 96 -23 May................................ 1,332 1,744 696 995 326 355 215 351 95 43 1,386 2,182 848 1,259 225 412 226 398 87 113 July................................. 1,094 1,337 560 805 224 343 87 75 223 114 Aug................................. 1,643 2,209 935 1,158 264 399 278 457 166 195 Sept................................. 1,286 1,282 751 720 243 186 198 226 94 150 Oct................................... 1,496 1,312 819 700 311 320 155 107 211 185 Nov................................. 1,718 1,820 882 612 373 457 214 199 249 552 Dec.................................. 1,663 3,007 828 905 403 661 230 143 202 1,298 J—Jan................................... 1,949 36 1,028 365 484 89 174 -146 263 -272 1 Includes adjustments for differences in trading days. their outstanding credit. Such transfers do not affect total instalment 2 Net changes in credit outstanding are equal to extensions less re­ credit extended, repaid, or outstanding. payments, except in certain months when data for extensions and repay­ ments have been adjusted to eliminate duplication resulting from large Note.—Other financial lenders include credit unions and miscellane­ transfers of paper. In those months the differences between extensions ous lenders. See also Note to preceding table and footnote 1 at bottom of p. and repayments for some particular holders do not equal the changes in A-56. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: S.A. □ MARCH 1973 MARKET GROUPINGS (1967 = 100) 1 p 9 r 6 o 7 ­ a 1 v 9 e 7 r 2 ­ 1972 1973 Grouping p ti o o r n ­ age® Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.T Dec. Jan.® Total index. 100.00 114.4 108.7 110.0 111.2 112.8 113.2 113.4 113.9 115.0 116.1 117.5 118.5 119.2 119.9 Products, total.................. 62.21 113.1 108.4 109.5 110.1 111.4 112.1 112.0 112.2 113.3 114.4 115.9 117.3 117.7 118.5 Final products............... 48.95 111.2 106.4 107.6 108.2 109.8 110.2 110.1 110.1 111.3 112.4 113.9 115.0 115.6 116.6 Consumer goods.... 28.53 123.1 118.5 119.6 119.6 122.0 122.2 122.1 122.0 123.1 124.4! 125.6 126.8 127.3 128.4 Equipment................ 20.42 94.5 89.5 90.9 92.4 92.7 93.4 93.3 93.4 94.8 95.8; 97.3 98.5 99.2 100.3 Intermediate products. 13.26 120.5 115.9 117.0 117.3 117.3 119.3 119.1 120.5 121.2 121.7 123.4 125.9 125.1 125.7 Materials........................... 37.79 116.4 109.2 110.8 113.1 115.0 115.6 116.1 116.8 117.4 119.1 120.3 120.6 121.9 122.1 Consumer goods Durable consumer goods................ 7.86 125.4 117.5 120.3 118.9 125.9 125.3 126.0 123.9 125.8 125.4 128.3 130.7 134.3 134.6 Automotive products................. 2.84 127.1 116.6 119.5 119.3 128.9 127.4 125.7 124.7 127.1 124.8 130.3 137.5 142.0 136.7 Autos........................................ 1.87 112.7 102.8 106.4 104.6 114.3 111.3 108.2 108.2 109.5 109.6 116.9 126.6 133.9 126.0 Auto parts and allied goods. .97 154.7 143.4 144.5 147.5 157.0 158.3 159.3 156.9 160.9 153.9 156.1 158.6 157.2 157.2 Home goods................................ 5.02 124.5 118.1 120.7 118.7 124.2 124.3 126.1 123.5 125.1 125.7 127.2 126.9 130.2 133.4 Appliances, TV, and radios. 1.41 124.7 123.8 123.1 115.1 132.2 129.3 125.9 121.6 119.7 123.1 124.0 121.8 136.8 138.1 Appliances and A/C... .92 144.5 143.4 146.9 131.9 149.3 148.2 141.2 138.5 141.8 142.8 147.8 141.9 156.4 157.1 TV and home audio.... .49 87.5 87.1 78.3 84.0 100.1 93.7 97.2 89.9 78.6 86.1 79.4 83.9 99.9 102.5 Carpeting and furniture 1.08 132.6 121.7 126.1 127.1 131.3 132.0 134.0 132.6 138.4 134.5 137.6 137.6 138.5 142.5 Misc. home goods................. 2.53 121.0 113.5 117.2 117.2 116.9 118.2 122.9 120.6 122.4 123.4 124.5 125.2 122.8 126.9 Nondurable consumer goods............. 20.67 122.2 119.0 119.3 119.9 120.5 121.0 120.6 121.3 122.1 123.9 124.5 125.3 124.7 125.9 Clothing........................................... 4.32 107.8 105.8 102.7 105.0 105.0 106.2 106.8 108.0 109.1 110.0 110.3 110.4 111.9 Consumer staples........................... 16.34 126.0 122.5 123.7 123.9 124.6 124.9 124.3 124.8 125.5 127.6 128.2 129.2 128.1 129.5 Consumer foods and tobacco. 8.37 117.4 115.4 115.5 116.3 116.8 117.2 116.8 116.4 117.6 118.5 118.5 120.3 118.1 119.0 Nonfood staples............................ 7.98 135.0 129.8 132.4 132.0 132.8 133.1 132.2 133.6 133 137.2 138.3 138.6 138.4 140.4 Consumer chemical products. 2.64 144.3 137.6 144.3 141.4 145.4 144.8 140.2 141.3 141.7 146.4 145.0 143.9 142.5 147.1 Consumer paper products.... 1.91 114.7 111.4 112.1 113.9 111.4 111.1 112.5 112.5 112.2 115.6 118.6 119.3 120.5 120.5 Consumer fuel and lighting.. 3.43 139.2 134.2 134.5 134.9 134.8 136.3 136.8 139.4 139.8 141.9 144.0 145.1 145.3 146.3 Residential utilities.............. 2.25 147.5 141.8 142.5 142.3 142.1 143.2 145.0 147.0 147.5 150.3 152.1 154.5 155.6 156.4 Equipment Business equipment....................... 12.74 104.3 98.4 99.9 101.3 101.3 102.5 102.4 102.1 105.0 106.7 108.5 110.1 110.7 113.1 Industrial equipment............... 6.77 99.3 94.1 95.4 96.3 95.7 96.3 97.2 96.7 99.9 102.8 103.7 105.8 106.6 107.9 Building and mining equip.. 1.45 101.9 98.0 99.6 101.2 98.4 97.0 98.3 98.0 104.8 105.7 105.4 104.2 106.3 107.3 Manufacturing equipment.. 3.85 88.6 82.4 83.4 84.5 84.9 85.9 86.7 87.1 89.4 92.6 94.0 96.9 98.0 99.6 Power equipment................. 1.47 124.6 121.0 122.7 122.0 121.4 122.8 123.5 120.5 122.4 126.3 127.2 130.8 129.4 130.4 Commercial, transit, farm eq., 5.97 110.0 103.3 105.1 107.0 107.6 109.6 108.4 108.3 110.7 111.2 113.8 115.3 115.5 119.1 Commercial equipment.... 3.30 117.8 109.1 111.9 114.7 114.1 116.4 116.7 117.3 120.0 121.5 122.7 123.2 122.8 124.4 Transit equipment............... 2.00 96.7 95.1 94.7 95.4 97.0 98.9 94.4 92.5 93.0 93.1 96.8 101.9 101.7 110.9 Farm equipment................... .67 110.6 98.6 102.4 103.5 106.8 108.2 109.7 111.2 117.7 114.7 120.3 116.3 120.0 117.4 Defense and space equipment. 7.68 78.2 74. 76.0 77.6 78.5 78.2 78.3 78.9 77.9 77.7 78.6 79.3 80.1 79.0 Military products................. 5.15 80.6 77.6 78.5 80.7 81.3 81.1 80.4 81.6 79.9 79.3 80.3 81.2 81.4 80.7 Intermediate products Construction products........... 5.93 119.7 115.7 115.8 115.9 116.5 118.0 117.8 119.8 119.3 120.6 123.1 126.1 123.9 125.4 Misc. intermediate products. 7.34 121.1 116.1 118.0 118.5 118.0 120.4 120.2 121.1 122.8 122.6 123.6 125.6 126.1 125.8 Materials Durable goods materials.... 20.91 112.1 103.5 105.8 107.8 110.4 111.1 111. 1 111.5 112.6 116.0 117.4 117.7 120.1 120.7 Consumer durable parts. 4.75 113.1 105.1 107.1 110.2 113.8 112.0 112.0 111.4 114.0 116.3 116.6 115.8 119.9 119.7 Equipment parts.............. 5.41 97.1 88.8 90.7 91.0 95.4 95.3 95.3 98.2 97.8 100.7 102.6 103.6 104.9 104.7 Durable materials nec... 10.75 119.3 110.2 112.8 115.2 116.5 118.6 118.6 118.2 119.5 123.6 125.2 125.7 127.9 129.2 Nondurable goods materials............ 13.99 121.7 116.0 117.0 119.8 120.6 121.3 122.5 123.3 123.7 122.7 123.9 124.4 124.9 124.7 Textile, paper, and chem. mat.. 8.58 128.0 120. 121.5 125.0 125.9 127.1 128.5 130.1 131.1 129.2 130.7 132.7 133.7 133.2 Nondurable materials n.e.c....... 5.41 111.6 108.3 109.9 111.4 112.3 112.3 113.1 112.3 111.9 112.4 113.0 111.2 110. 111.4 Fuel and power, industrial............. 2.89 121.2 117.4 117.7 118.9 121.6 120.7 121.7 123.5 121.5 125.0 124.3 122.5 119.6 119.9 Supplementary groups Home goods and clothing., 9.34 116.8 112.4 112.4 112.3 115.3 115.9 117.2 116.3 117.7 118.5 119.4 119.2 121.7 123.5 Containers............................. 1.82 126.8 120.6 123.7 120.3 127.5 127.0 130.2 128.8 125.7 122.6 127.2 134.2 135.1 129.1 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 413.1 398.7 402.0 405.6 409.7 413.0 412.0 410.1 414 417.5 425.0 431. 432.4 435.8 Final products.............. 317.7 306.7 309.2 312.3 317.1 318.5 317.5 314 319.0 321.7 327.6 332.5 333.7 335.9 Consumer goods... 223.7 217.4 218.8 220.4 224.8 225.1 224.6 222.5 225.5 226.9 231.0 233.9 234.9 235.3 Equipment................ 94.0 89.2 90.4 91.9 92.4 93.3 93.1 91. 93 94.9 96.8 98.5 98.7 100.6 Intermediate products. 95.5 92.5 92.9 93.2 92.8 94.5 94.3 95.8 96.0 95.9 97.4 99.2 98.9 100.0 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) Grouping p 1 p ti 9 o r o 6 o r n 7 ­ ­ a a 1 v g 9 e e 7 r * 2 ­ Jan. Feb. Mar. Apr. May June 1972 July Aug. Sept. Oct. Nov.r Dec. J 1 a 9 n 7 . 3 * 88.55 113.1 107.1 108.5 109.7 111.8 112.3 112.6 113.2 114.1 115.2 116.6 117.4 118.2 118.8 52.33 107.4 100.4 102.1 103.4 105.8 106.3 106.8 107.7 108.4 109.7 111.4 112.4 113.7 114.2 36.22 121.5 116.8 117.8 118.8 120.3 120.8 121.3 121.0 122.6 123.3 124.3 124.7 124.8 125.3 11.45 123.8 120.6 121.6 122.3 122.9 122.6 122.7 123.2 123.8 125.9 126.2 127.2 126.5 126.4 6.37 108.3 107.3 107.2 108.5 109.0 107.9 108.2 107.9 107.7 110.2 110.0 110.1 108.3 108.7 5.08 143.2 137.4 139.7 139.7 140.2 141.1 140.9 142.5 144.1 145.6 146.6 148.7 149.1 148.9 Durable manufactures 12.55 113.0 104.0 105.4 107.4 110.4 112.7 112.1 114.5 114.0 116.4 118.4 119.6 122.1 121.4 6.61 112.8 102.4 102.6 105.1 110.2 113.5 111.9 114.9 113.6 117.4 119.3 120.2 124.6 122.9 4.23 106.9 95.2 95.9 98.8 105.5 108.3 104.9 107.7 107.3 113.4 114.1 114.3 118.4 116.4 5.94 113.3 106.0 108.6 110.1 110.8 111.9 112.3 114.1 114.4 115.2 117.5 118.8 119.0 119.7 32.44 102.1 95.7 97.3 98.4 101.1 101.0 101.6 102.0 103.1 104.1 105.7 107.0 108.2 108.8 17.39 105.2 98.5 99.5 100.3 102.6 103.0 104.8 104.8 107.1 108.3 109.6 110.4 112.2 112.3 9.17 103.1 95.1 96.2 97.6 98.6 100.4 101.8 102.9 106.1 107.0 108.8 110.6 110.1 110.8 8.22 107.5 102.2 103.2 103.3 107.1 105.9 108.0 107.1 108.1 109.7 110.4 110.2 114.5 114.0 9.29 98.9 92.0 94.7 95.9 100.4 98.9 97.4 98.2 98.4 99.8 102.1 105.0 106.0 107.1 4.56 122.8 114.0 117.7 118.8 125.6 122.6 119.3 121.4 121.6 123.0 127.6 132.0 135.3 137.2 Aerospace and misc. trans. eq... 4.73 75.8 70.8 72.7 73.9 76.1 76.1 76.4 75.9 76.0 77.3 77.5 79.0 77.8 78.2 2.07 118.7 111.3 114.5 114.2 116.1 117.3 119.3 119.9 120.9 122.4 122.9 123.3 122.6 126.6 Ordnance, private and Govt............ 3.69 86.6 83.2 83.7 86.4 87.3 87.6 87.8 88.0 86.2 84.8 86.3 86.9 87.3 86.2 Lumber, clay, and glass.......................... 4.44 119. 7 115.5 118.0 118.1 118.1 118.2 119.0 119.1 119.6 120.5 123.0 122.8 120.8 123.6 Lumber and products........................ 1.65 122.7 122.0 119.7 119.6 119.9 119.1 121.8 121.5 121.1 122.8 128.1 128.2 124.3 128.5 Clay, glass, and stone products___ 2.79 117.9 111.6 117.0 117.2 117.1 117.5 117.4 117.7 118.7 119.1 120.0 119.7 118.8 120.5 Furniture and miscellaneous.................. 2.90 122.6 115.0 117.3 118.4 119.9 120.6 122.1 123.7 126.7 126.6 126.2 126.2 126.8 129.1 Furniture and fixtures....................... 1.38 113.1 104.0 108.4 108.7 111.7 110.7 112.8 115.5 117.6 116.7 116.1 117.4 118.3 119.4 Miscellaneous manufactures............ 1.52 131.2 125.1 125.4 127.2 127.4 129.6 130.6 131.0 135.1 135.6 135.4 134.0 134.5 138.0 Nondurable manufactures Textiles, apparel, and leather............... 6.90 106.2 102.0 101.1 103.7 106.1 104.9 105.9 104.8 106.8 108.0 109.1 109.1 109.2 109.3 Textile mill products......................... 2.69 114.5 108.9 107.0 110.9 113.5 112.8 113.9 112.7 116.5 116.6 118.5 118.4 119.9 120.0 Apparel products................................ 3.33 104.2 99.8 100.1 102.7 103.3 102.8 103.0 102.2 104.3 105.5 106.8 109.3 107.5 Leather and products........................ .88 88.1 89.6 86.9 85.4 94.4 89.2 92.2 90.2 86.5 91.6 88.6 80.1 82.9 ' $3.0 Paper and printing.................................. 7.92 115.4 111.3 112.6 112.6 112.3 114.1 115.1 115.2 116.4 115.3 118.6 120.9 120.3 119.3 Paper and products............................ 3.18 126.7 122.2 122.8 122.5 124.4 127.2 126.7 126.9 127.8 124.1 111.9 133.3 134.1 130.5 Printing and publishing..................... 4.74 108.0 103.9 105.8 105.9 104.2 105.3 107.3 107.2 108.7 109.4 112.4 112.6 111.1 111.8 Chemicals, petroleum, and rubber.... 11.92 137.5 129.8 132.6 133.4 136.1 137.5 137.1 137.4 139.9 141.1 141.6 140.6 142.0 144.2 Chemicals and products................... 7.86 139.3 131.2 135.1 135.7 137.9 138.9 139.5 139.5 141.3 143.4 143.8 141.5 142.4 144.3 Petroleum products............................ 1.80 120.1 119.3 118.7 117.9 117.0 119.5 117.3 119.5 120.4 120.7 124.1 123.4 124.8 126.6 Rubber and plastics products.......... 2.26 145.0 133.3 135.0 138.1 144.7 146.5 145.0 144.1 150.4 149.6 148.2 151.3 154.3 157.5 Foods and tobacco.................................. 9.48 117.4 115.7 115.9 116.3 117.6 117.1 117.6 116.8 117.6 118.8 117.8 118.9 118.2 118.4 Foods.................................................... 8.81 118.4 116.5 116.9 117.5 118.6 118.5 119.3 118.3 118.3 120.0 118.2 119.4 119.4 119.7 Tobacco products............................... .67 104.4 103.8 102.5 101.9 103.9 99.1 96.4 96.7 108.5 103.0 111.8 112.5 102.5 Mining Metal, stone, and earth minerals.......... 1.26 104.8 108.0 109.8 108.3 104.6 99.4 99.6 95.8 101.0 106.5 106.2 113.0 114.6 114.5 Metal mining....................................... .51 120.8 128.9 133.7 131.0 122.2 110.7 102.9 102.2 115.2 123.4 122.3 136.7 141.8 137.4 Stone and earth minerals................... .75 93.9 93.8 93.5 92.7 92.6 91.7 97.4 91.6 91.4 94.9 95.2 97.0 96.0 99.0 Coal, oil, and gas.................................... 5.11 109.2 107.1 106.5 108.6 110.0 109.9 110.5 111.0 109.3 111.1 110.9 109.2 106.8 107.3 Coal....................................................... .69 103.2 106.3 99.6 104.1 112.9 105.0 109.1 114.4 97.2 104.2 99.3 101.0 91A 95.2 Oil and gas extraction....................... 4.42 110.2 107.2 107.6 109.3 109.6 110.7 110.7 110.5 111.2 112.1 112.7 110.5 108.2 109.2 Utilities Electric...................................................... 3.91 149.1 141.2 144.4 144.8 145.6 147.1 146.8 148.6 150.2 152.0 152.8 155.2 155.9 155.2 Gas 1.17 1 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 INDUSTRIAL PRODUCTION: N.S.A. □ MARCH 1973 MARKET GROUPINGS (1967 = 100) p 19 ro 67 ­ 1972 1972 1973 aver­ por­ Grouping tion age* Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec. Jan.* 100.00 114.4 106.6 110.3 111.6 113.6 113.4 116.5 109.2 115.4 120.3 121.3 118.7 115.2 117.1 62.21 113.1 105.5 109.0 110.0 111.7 110.8 115.2 109.1 115.2 120.7 120.8 117.1 112.4 114.9 Final products...................................... 48.95 111.2 104.4 107.7 108.3 110.2 108.5 113.3 106.3 112.7 118.7 118.6 114.8 110.4 114.0 Consumer goods............................. 28.53 123.1 115.7 119.4 119.2 122.4 119.6 126.0 117.0 126.5 133.5 132.7 126.0 119.0 124.6 Equipment....................................... 20.42 94.5 88.6 91.4 93.1 93.2 93.1 95.6 91.4 93.4 98.0 99.0 99.2 98.5 99.2 Intermediate products....................... 13.26 120.5 109.4 113.8 116.5 117.4 119.5 122.2 119.2 124.4 128.0 128.7 125.6 119.6 118.5 Materials.................................................. 37.79 116.4 108.3 112.4 114.5 116.6 117.7 118.7 109.4 115.8 119.6 122.1 121.4 119.9 120.7 Consumer goods 7.86 125.4 117.1 122.9 121.8 128.8 126.0 129.3 107.4 119.3 133.6 139.8 134.5 122.9 133.3 2.84 127.1 120.7 126.5 126.3 138.2 132.6 133.5 92.8 107.5 136.5 146.3 141.2 121.2 140.3 Autos................................................. 1.87 112.7 112.0 117.0 115.1 128.0 121.3 120.1 61.0 78.4 120.6 135.6 132.9 109.8 134.8 Auto parts and allied goods......... .97 154.7 137.5 144.8 147.8 157.8 154.3 159.3 153.9 163.3 167.1 166.9 157.0 143.2 150.8 5.02 124.5 115.1 120.8 119.3 123.5 122.3 126.9 115.6 126.0 131.9 136.2 130.8 123.9 129.3 Appliances, TV, and home audio. 1.41 124.7 123.1 127.2 120.1 131.9 124.9 125.6 109.6 112.2 127.7 142.8 129.1 115.6 137.3 Appliances and A/C.................. .92 144.5 143.8 150.3 139.3 156.6 146.9 147.4 134.9 128.9 143.5 165.0 143.5 124.7 157.6 TV and home audio.................. .49 87.5 84.3 83.9 84.1 85.6 83.7 84.8 62.2 80.9 98.2 101.2 102.2 98.4 99.2 Carpeting and furniture................ 1.08 132.6 123.5 131.4 130.8 131.8 128.3 132.8 114.4 138.7 139.6 139.7 140.8 139.5 141.4 Misc. home goods.......................... 2.53 121.0 107.1 112.7 113.9 115.3 118.2 125.2 119.5 128.3 130.9 131.1 127.6 121.9 119.8 Nondurable consumer goods.................. 20.67 122.2 115.1 118.1 118.2 119.9 117.1 124.7 120.6 129.2 133.4 130.0 122.7 117.5 121.3 4.32 107.8 100.8 106.6 108.1 113.2 102.7 113.2 97.2 113.5 116.9 114.7 108.2 91.1 Consumer staples................................ 16.34 126.0 118.9 121.2 120.9 121.7 120.9 127.8 126.8 133.4 137.8 134.0 126.5 122.7 125.6 Consumer foods and tobacco.... 8.37 117.4 109.2 111.2 113.0 114.8 114.7 120.8 115.8 123.9 128.7 125.4 118.7 111.4 112.6 Nonfood staples.............................. 7.98 135.0 129.0 131.7 129.2 128.9 127.4 135.1 138.3 143.4 147.3 143.0 134.6 134.5 139.2 Consumer chemical products.. 2.64 144.3 129.3 137.7 135.0 142.3 143.9 152.3 146.9 148.4 159.3 158.3 143.8 132.5 138.3 Consumer paper products........ 1.91 114.7 106.3 109.1 110.8 110.3 107.9 116.2 114.2 120.4 122.8 124.9 118.5 114.4 113.5 Consumer fuel and lighting — 3.43 139.2 141.4 139.6 135.0 129.0 125.5 132.4 145.1 152.4 151.6 141.3 136.4 147.2 154.3 Residential utilities................ 2.25 147.5 152.3 150.1 144.2 136.3 128.7 137.5 154.6 165.3 163.8 148.1 141.4 156.6 168.1 Equipment Business equipment.................................. 12.74 104.3 96.6 100.7 102.2 102.3 102.2 105.6 99.5 103.2 110.2 111.2 110.7 108.9 111.1 Industrial equipment.......................... 6.77 99.3 93.0 96.2 96.4 95.7 95.7 99.0 96.0 99.5 105.2 105.5 106.3 105.7 106.7 Building and mining equip........... 1.45 101.9 97.1 99.5 97.9 99.0 96.3 101.4 98.0 102.3 107.5 107.1 108.4 108.2 106.3 Manufacturing equipment........... 3.85 88.6 81.4 85.6 86.2 84.8 85.5 88.2 85.2 89.2 93.6 94.9 96.6 97.2 98.4 Power equipment........................... 1.47 124.6 119.3 120.6 121.4 121.2 121.8 124.9 122.3 123.7 133.2 131.8 129.4 125.6 128.6 5.97 110.0 100.7 105.8 108.7 109.8 109.6 113.0 103.4 107.4 115.8 117.7 115.6 112.6 116.1 Commercial equipment................. 3.30 117.8 105.3 110.1 112.6 112.2 114.7 121.9 120.2 122.0 127.2 124.8 123.6 120.6 120.0 Transit equipment.......................... 2.00 96.7 93.5 97.3 99.5 104.8 100.9 97.9 78.2 85.2 95.2 104.0 104.6 99.2 109.0 Farm equipment............................. .67 110.6 99.1 109.9 117.2 113.2 110.0 114.4 95.2 101.0 120.8 123.2 109.0 113.2 118.0 Defense and space equipment................ 7.68 78.2 75.3 75.9 77.9 78.0 78.1 78.9 77.9 77.1 77.7 78.7 80.0 81.3 79.4 Military products................................ 5.15 80.6 77.8 78.4 81.0 81.1 81.3 81.7 81.0 79.3 79.2 80.0 81.4 82.0 80.9 Intermediate products Construction products........................... 5.93 119.7 107.6 113.7 116.9 118.9 120.6 121.9 117.9 120.5 125.5 128.4 124.5 117.3 116.6 Misc. intermediate products................. 7.34 121.1 110.9 113.9 116.1 116.2 118.7 122.4 120.3 127.5 130.0 129.0 126.5 121.4 120.1 Materials 20.91 112.1 102.2 107.5 110.2 112.4 113.8 114.8 103.8 109.9 116.8 118.7 118.1 118.2 119.0 Consumer durable parts................... 4.75 113.1 108.8 110.5 111.6 112.9 113.3 112.5 98.5 107.8 117.2 119.4 120.9 125.7 123.9 Equipment parts................................. 5.41 97.1 89.1 92.1 93.7 96.5 95.9 98.9 92.2 95.5 101.7 102.3 102.7 104.0 105.0 10.75 119.3 105.8 114.0 117.8 120.1 123.1 123.9 111.9 118.1 124.3 126.6 124.7 122.1 123.9 Nondurable goods materials.................. 13.99 121.7 115.1 118.3 119.8 121.8 123.0 124.2 116.6 123.3 122.8 126.7 126.0 122.4 123.0 Textile, paper, and chem. mat.......... 8.58 128.0 120.0 124.3 126.0 128.5 129.6 130.9 120.9 130.1 129.1 133.4 134.2 129.6 130.9 Nondurable materials n.e.c.............. 5.41 111.6 107.4 108.8 110.0 111.2 112.6 113.6 109.9 112.6 112.8 116.0 113.1 110.9 110.5 Fuel and power, industrial................... 2.89 121.2 119.4 119.6 119.6 121.8 120.7 120.8 115.2 121.7 124.0 124.4 123.5 120.4 122.1 Supplementary groups 9.34 116.8 108.5 114.2 114.1 118.7 113.2 120.6 107.1 120.2 125.0 126.3 120.3 111.8 118.2 1.82 126.8 114.0 123.3 120.3 127.9 128.9 134.2 123.1 130.0 128.0 134.4 133.0 125.0 122.0 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967= 100) p p 19 o r 6 o r 7 ­ ­ a 1 v 9 e 7 r 2 ­ 1972 1973 Grouping tion age® Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.1" Dec. Jan.® Manufacturing, total............................... 88.55 113.1 104.7 109. C 110. 5» 112.7r 112.7” 115.7r 107. C> 113.5’ 118.9> 120.6» 118.1r 114.1r 115.7 Durable................................................ 52.33 107.4 99.2 103.8 105.5; 107.5: 107.6i 109.4t 100.2\ 105.1 111.9» 114.4\ 113.1 110.6i 112.7 Nondurable.......................................... 36.22 121.5 112.6 116.4 117.8! 120.2: 120.c> 124.9> 116.9> 125.7r 128.9» 129.6i 125.4t 119.1 120.0 Mining and utilities................................. 11.45 123.8 121.0 121.1 120.7' 120.4t 120.C» 122.9> 124.6; 130.c> 130.&f 126.j\ 123.5» 124.t? 127.2 Mining................................................... 6.37 108.3 104.7 105.4 106.4i 108.8! 109.91 109.'?’ 105.5' 109.2 110.8! 110.7' 109.5; 108.c> 106.1 Utilities................................................. 5.08 143.2 141.5 140.8 138.7' 134.9» 132.6 139.4^ 148.6i 156.2: 155.91 146.C► 141.1 146.C► 153.7 Durable manufactures Primary and fabricated metals............. 12.55 113.0 102.8 109.4 112.6 114.31 115.7 115.0> 105.1 109.1 116.01 119.7' 119.C> 117.9> 119.9 Primary metals.................................... 6.61 112.8 101.0 108.6 113.5 117.2 118.9 116.5 101.6 106.9 114.8 119.4. 117.6i 116.9» 121.2 Iron and steel, subtotal................. 4.23 106.9 93.7 101.3 107.4 113.2 114.3 108.6I 98.3 101.2: 108.1 113.4L 110.9> 110.7' 114.5 Fabricated metal products............... 5.94 113.3 104.8 110.2 111.5 111.1 112.2 113.3 109.0 111.5 117.4 120.1 120.5 119.0i 118.4 Machinery and allied goods................... 32.44 102.1 95.8 99.1 100.2 102.3 101.7 104.0 94.4 98.7 106.7 108.9i 107.9' 106.0i 108.7 Machinery............................................ 17.39 105.2 97.8 101.7 102.2 103.4 102.9 107.0 100.0 104.1 111.4 112.7 110.5 109.6^ 111.4 Nonelectrical machinery............... 9.17 103.1 93.9 99.4 100.2 99.8 100.9 104.7 100.5 103.3 109.4 109.6 109.1 108.8 109.4 Electrical machinery...................... 8.22 107.5 102.1 104.3 104.5 107.4 105.1 109.5 99.5 105.0 113.6 116.1 112.1 110.4 113.7 Transportation equipment............... 9.29 98.9 94.0 97.5 99.0 103.8 101.7 100.8 81.0 88.3 102.0 107.0 107.9 103.1 109.1 Motor vehicles and parts............. 4.56 122.8 119.1 123.3 123.8 131.8 128.1 126.0 87.8 102.3 127.1 137.2 137.9 128.9 142.4 Aerospace and misc. trans. eq. .. 4.73 75.8 69.8 72.6 75.0 76.8 76.3 76.6 74.5 74.9 77.8 77.9 78.9 78.3 77.1 Instruments.......................................... 2.07 118.7 108.1 111.2 112.3 112.5 116.1 121.8 119.9 123.4 127.3 126.5 123.9 122.5 122.9 Ordnance, private and Govt............ 3.69 86.6 83.7 84.0 87.1 87.3 87.8 88.2 87.3 85.2 84.5 85.7 87.0 87.7 86.7 Lumber, clay, and glass.......................... 4.44 119.7 105.9 112.3 115.9 118.5 120.4 124.1 119.2 125.7 126.3 129.0 122.6 112.8 113.3 Lumber and products........................ 1.65 122.7 111.1 119.5 121.5 122.1 121.8 126.5 120.5 125.9 128.8 132.8 124.7 111.6 117.1 Clay, glass, and stone products___ 2.79 117.9 102.8 108.1 112.5 116.3 119.6 122.7 118.4 125.6 124.8 126.7 121.4 113.6 111.0 Furniture and miscellaneous.................. 2.90 122.6 111.3 118.4 118.8 119.1 118.1 123.7 114.5 127.5 131.0 131.1 130.7 126.7 126.0 Furniture and fixtures....................... 1.38 113.1 106.2 113.7 112.7 111.6 108.7 112.1 100.4 115.7 117.9 118.8 120.9 119.5 121.9 Miscellaneous manufactures............ 1.52 131.2 116.0 122.8 124.4 125.9 126.6 134.3 127.3 138.2 142.9 142.2 139.6 133.2 129.8 Nondurable manufactures Textiles, apparel, and leather............... 6.90 106.2 100.4 105.4 106.7 109.9 103.9 110.9 94.4 111.4 112.8 112.2 107.5 98.5 103.8 Textile mill products......................... 2.69 114.5 106.6 110.3 114.0 115.9 115.8 119.0 102.0 120.7 120.4 120.9 118.4 109.7 111.6 Apparel products................................ 3.33 104.2 98.4 105.3 105.0 109.5 98.7 109.1 92.5 109 2 112 1 1 io.2 105.8 94.6 Leather and products......................... .88 88.1 88.9 90.6 90.4 93.3 87.3 92.8 78.2 9K3 92 !o 92.8 80.7 79.0 82.3 Paper and printing.................................. 7.92 115.4 105.2 109.9 111.2 112.9 114.1 117.9 111.5 120.0 120.7 124.9 122.6 113.9 112.8 Paper and products........................... 3.18 126.7 120.7 125.9 125.3 128.1 128.5 130.2 116.1 127.5 123.7 134.5 134.4 124.0 128.9 Printing and publishing..................... 4.74 108.0 94.8 99.2 101.7 102.7 104.4 109.6 108.4 114.9 118.6 118.5 114.7 107.1 102.0 Chemicals, petroleum, and rubber........ 11.92 137.5 126.0 131.1 132.5 135.8 138.0 141.4 134.7 140.3 144.9 145.6 141.9 138.9 139.5 Chemicals and products................... 7.86 139.3 126.6 132.0 134.1 138.9 140.7 144.2 138.7 142.4 147.1 146.7 142.1 138.0 138.5 Petroleum products........................... 1.80 120.1 114.4 115.0 113.5 112.1 118.4 121.5 123.8 125.7 126.3 126.3 122.5 122.9 121.4 Rubber and plastics products.......... 2.26 145.0 133.0 140.8 142.2 144.1 144.0 147.6 129.3 144.4 152.3 156.9 156.7 154.6 157.2 Foods and tobacco.................................. 9.48 117.4 110.8 111.4 112.9 114.2 114.1 120.1 115.2 122.7 127.5 126.0 120.0 113.4 113.3 Foods.................................................... 8.81 118.4 111.3 111.8 113.7 115.3 115.3 121.4 117.4 123.2 128.9 126.4 120.5 115.5 114.2 Tobacco products............................... .67 104.4 103.6 105.5 102.1 99.4 98.1 103.0 86.3 116.7 109.4 120.4 113.4 86.0 Mining 1.26 104.8 93.1 95.4 98.0 105.3 110.8 111.6 102.2 108.7 113.1 110.2 106.1 103.8 98.7 Metal mining....................................... .51 120.8 105.8 113.8 114.4 123.5 131.5 129.6 116.7 128.4 133.5 123.2 114.8 114.6 112.8 Stone and earth minerals................. .75 93.9 84.4 82.8 86.8 92.8 96.7 99.3 92.3 95.4 99.2 101.3 100.3 96.4 89.1 Coal, oil, and gas.................................... 5.11 109.2 107.6 107.9 108.5 109.7 109.7 109.2 106.3 109.3 110.3 110.8 110.3 109.1 107.9 Coal....................................................... .69 103.2 105.1 99.9 102.7 114.9 107.1 104.8 87.6 103.5 106.9 106.1 103.2 96.5 94.2 Oil and gas extraction....................... 4.42 110.2 108.0 109.2 109.4 108.9 110.1 109.9 109.2 110.2 110.8 111.6 111.4 111.1 110.0 Utilities 3.91 149.1 146.6 145.8 143.5 138.5 136.4 144.9 156.5 166.0 165.4 152.0 145.3 151.6 161.3 Gas............................................................ 1.17 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 □ MARCH 1973 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 - Period Total Total Final C p o r P n o r ­ d o i d je u t c s ts m In ed te ia r­ te M ri a a t ls e­ f M a i c a n t n g u u r­ ­ i o = u n ( t u 1 t i i 1 m 9 t o l p 0 6 i n f z u 0 7 g a ) t . ­ t s r c t t a r i o o u c n t n c s ­ ­ T m p t e o u e l m o t r n a a y t ­ l l — ­ i p m E l m o en y ­ t ­ P ro a l y ls ­ T s r a e o l t t e a a s i l 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 1953....................... 95.5 76.3 98.2 60.3 54 80.1 87.4 1954....................... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955....................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957....................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958....................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959....................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960....................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 r82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963....................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964....................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965....................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966....................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967....................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968....................... 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 1969....................... 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 1970....................... 106.7 106.0 104.5 110.3 96.3 111.7 107.7 105.2 r78.3 107.2 98.0 114.1 120 116.3 110.4 1971....................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 r75.0 i32.0 107.3 93.9 116.3 122 121.2 113.9 1972?..................... 114.4 113.1 111.2 123.1 94.5 120.4 116.4 113.1 110.5 96.7 130.2 142 125.3 119.8 1972—Jan............ 108.7 108.4 106.4 118.5 89.5 115.9 109.2 107.1 *•160.0 108.7 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 92.4 117.3 113.1 109.7 159.0 109.4 95.6 125.8 139 124.0 117.4 112.8 111.4 109.8 122.0 92.7 117.3 115.0 111.8 167.0 109.7 96.2 128.7 139 124.3 117.5 May.......... 113.2 112.1 110.2 122.2 93.4 119.3 115.6 112.3 *77.4 165.0 110.2 96.8 129.4 142 124.7 118.2 June.......... 113.4 112.0 110.1 122.1 93.3 119.1 116.1 112.6 154.0 110.3 97.1 130.7 141 125.0 118.8 July.......... 113.9 112.2 110.1 122.0 93.4 120.5 116.8 113.2 155.0 110.3 96.3 128.4 143 125.5 119.7 Aug........... 115.0 113.3 111.3 123.1 94.8 121.2 117.4 114.1 78.1 180.0 110.8 96.8 131.3 145 125.7 119.9 Sept........... 116.1 114.4 112.4 124.4 95.8 121.7 119.1 115.2 187.0 111.1 97.3 133.4 144 126.2 120.2 Oct............ 117.5 115.9 113.9 125.6 97.3 123.4 120.3 116.6 171.0 111.7 98.4 134.8 149 126.6 120.0 Nov........... 118.5 r117.3 r115.0 r126.8 98.5 r125.9 r120.6 117.4 79.6 177.0 112.2 99.2 137.1 148 126.9 120.7 Dec............ 119.2 ••117.7 115.6 r127.3 99.2 r125.1 *-121.9 118.2 163.0 112.4 *•99.8 *•138.7 151 127.3 122.9 1973—Jan............ 119.9 118.5 116.6 128.4 100.3 125.7 122.1 118.8 181.0 112.0 100.0 139.3 155 127.7 124.5 Feb.33........ 120.8 119.5 117.8 129.3 101.7 126.1 122.4 119.7 113.3 100.4 142.9 126.9 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. Latest figure is final. value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1973 Type of ownership and 1971 ^ 1972 type of construction Jan.r Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total construction 1............................ 80,188 91,877 5,977 5,607 7,284 8,100 9,098 8,478 8,067 8,875 8,197 8,225 7,248 6,464 6,795 By type of ownership: Public............................................ 23,927 24,404 1,928 1,634 1,686 1,741 2,574 2,517 2,528 2,466 2,017 1,668 1,785 1,650 1,918 56,261 67,473 4,050 3,973 5,598 6,359 6,524 5,960 5,538 6,409 6,181 6,557 5,462 4,814 4,877 By type of construction: Residential building 1............... 34,754 45,473 2,650 2,664 3,617 3,971 4,428 4,375 3,864 4,671 4,135 4,298 3,663 3,120 3,195 Nonresidential building............ 25,574 27,327 1,723 1,799 2,187 2,182 2,908 2,447 2,461 2,458 2,378 3,549 2,184 2,215 2,420 Nonbuilding................................ 19,282 19,077 1,605 1,144 1,480 1,947 1,762 1,655 1,741 1,746 1,684 1,544 1,402 1,132 1,180 Private housing units authorized... 1,925 2,130 2,204 2,056 2,007 1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 '2,377 2,185 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v & t e io lo n p­ Other 2 Total Indus­ Com­ Other Other ment trial mercial build- 1962 3 . 59,965 42,096 25,150 16,946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 1,523 8,715 1963 4 , 64,563 45,206 27,874 17,332 2,906 4,995 3,745 5,686 19,357 1,179 7,084 1,694 9,400 1964 .. 67,413 47,030 28,010 19,020 3,565 5,396 3,994 6,065 20.383 910 7,133 1,750 10,590 1965 .. 73,412 51,350 27,934 23,416 5,118 6,739 4,735 6,824 22,062 830 7,550 2,019 11,663 1966 .. 76,002 51,995 25,715 26,280 6,679 6,879 5,037 7,685 24,007 727 8,405 2,194 12,681 1967 . 77,503 51,967 25,568 26,399 6,131 6,982 4.993 8,293 25,536 695 8,591 2,124 14,126 1968 . 86,626 59,021 30,565 28,456 6,021 7,761 4,382 10,292 27,605 808 9,321 1,973 15,503 1969 . 93,368 65,404 33,200 32,204 6,783 9,401 4,971 11,049 27,964 879 9,250 1,783 16,052 1970 . 94,030 65,932 31,864 34,068 6,538 9,754 5,125 12,651 28,098 718 9,981 1,908 15,491 1971 . 109,399 79,535 43,062 36,473 5,423 11,619 5,428 14,003 29,864 894 10,658 2,095 16,217 1972—Jan... 120,790 88,606 49,594 39,012 4,935 13,272 5,734 15,071 32,184 986 1,943 Feb... 121,777 90,860 51.922 38,938 4,674 13,247 5,582 15,435 30,917 1,002 1,804 Mar.. 122,912 92,529 53,089 39,440 4,796 13,244 5.993 15,407 30.383 1,186 1,918 Apr.. 120,417 91,469 52,668 38,801 4,649 13,411 5.765 14,976 28,948 965 1,644 May. 122,121 92,299 52,330 39,969 4,723 14,132 5.766 15,348 29,822 980 1,971 June. 121,035 92,426 52.923 39,503 4,944 13,477 5,908 15,174 28,609 1.099 2,256 July.. 119,808 91,525 53,509 38,016 4,592 12,979 5,670 14,775 28,283 1,360 1,417 Aug.. 122,810 93,607 54,314 39,293 4,814 13,406 5,942 15,131 29,203 867 1,676 Sept.. 124,900 94,289 55,476 38,813 4,432 13,490 5,723 15,168 30,611 978 1,666 Oct... 129,096 96,270 56,353 39,917 4,301 13,770 6,256 15,590 32,826 1,045 1,767 Nov.r 126,703 97,428 57,131 40,297 4,556 13,377 6,230 16,134 29,275 1,205 1,719 Dec.r 132,309 98,259 57,366 40,893 4,788 13,711 6,185 16,209 34,050 1.099 1,667 1973—Jan....................... 134,880 102,135 57,834 44,301 5,624 15,774 6,296 16,607 32,745 1,220 2,042 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R.) Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A). Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 1963............................ *1,603 261 328 591 430 *•1,012 589 *■1,635 *•1,603 32 292 221 71 151 1964............................ 1,529 254 340 578 357 970 108 450 1,561 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............................ 1,165 206 288 472 198 778 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............................ 1,508 227 369 618 294 900 81 527 1,546 1,508 38 283 227 56 318 1969............................ 1,467 206 349 588 324 814 85 571 1,500 1,467 33 284 233 51 413 1970............................ 1,434 218 294 612 310 813 85 536 1,469 1,434 35 482 421 61 401 1971............................ 2,052 264 434 869 486 1,151 120 781 2,084 2,052 32 621 528 93 497 1972—Jan.'............... 2,439 398 432 1,009 599 1,395 169 875 151 149 2 43 36 8 33 Feb.*■.............. 2,540 269 523 1,168 581 1,281 200 1,060 154 152 1 36 28 8 40 Mar.r............. 2,313 306 383 1,033 591 1,310 142 861 206 204 2 48 38 11 49 Apr.r............. 2,204 259 381 1,083 482 1,215 146 843 213 212 2 38 29 9 53 May r............. 2,318 282 547 999 489 1,308 125 886 228 226 2 42 32 9 52 June r............. 2,315 337 452 992 534 1,283 137 895 226 223 3 42 32 10 55 July r............... 2,244 303 443 1,009 488 1,319 116 809 208 206 1 36 26 9 48 Aug.r............. 2,424 349 475 1,014 586 1,373 137 914 231 229 2 40 30 10 52 Sept.r............. 2,426 355 474 1,096 501 1,382 125 920 204 203 1 37 28 9 49 Oct.r.............. 2,446 372 469 1,125 480 1,315 153 978 218 217 2 34 25 9 54 Nov.r............. 2,395 353 400 1,106 536 1,324 134 937 187 186 1 29 21 8 50 Dec.r............. 2,344 483 326 1,067 468 1,196 127 1,021 151 149 2 48 42 6 38 1973—Jan.................. 2,468 336 600 1,088 444 1,423 157 888 155 145 1 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 EMPLOYMENT □ MARCH 1973 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 ) a n - l la ( b N N o . o r S t . f A i o n . r ) ce ( T l f S a o o b . r A t c o a e . r l ) Total Total E In m c n u p o l l t n o u a y 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 t l ) n o t y ; ­ industries agriculture 1967 3.......................... 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 1968............................. 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969............................. 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970............................. 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971............................. 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972............................. 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1972—Feb.................. 144,895 57,577 88,058 85,518 80,594 77,225 3,369 4,924 5.8 Mar................. 145,077 57,163 88,768 86,264 81,216 77,756 3,460 5,048 5.9 Apr.................. 145,227 57,440 88,647 86,184 81,209 77,895 3,313 4,975 5.8 May................. 145,427 57,441 88,850 86,431 81,458 78,120 3,338 4,973 5.8 June................. 145,639 55,191 88,947 86,554 81,752 78,421 3,331 4,802 5.5 July................. 145,854 54,850 88,985 86,597 81,782 78,339 3,443 4,815 5.6 Aug.................. 146,069 55,311 89,337 86,941 82,061 78,451 3,610 4,880 5.6 Sept................. 146,289 57,191 89,471 87,066 82,256 78,677 3,579 4,810 5.5 Oct................... 146,498 56,907 89,651 87,236 82,397 78,739 3,658 4,839 5.5 Nov................. 146,709 57,309 89,454 87,023 82,525 78,969 3,556 4,498 5.2 Dec.................. 146,923 57,486 89,707 87,267 82,780 79,130 3,650 4,487 5.1 1973—Jan................... 147,129 59,008 89,325 86,921 82,555 79,054 3,501 4,366 5.0 Feb.................. 147,313 58,238 89,961 87,569 83,127 79,703 3,424 4,442 5.1 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ T t l i i o r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 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 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971............................................................... 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 1972............................................................... 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 SEASONALLY ADJUSTED 1972—Feb.................................................... 71,744 18,612 613 3,494 4,438 15,456 3,874 12,112 13,145 Mar................................................... 72,011 18,685 614 3,512 4,487 15,508 3,885 12,139 13,181 Apr.................................................... 72,246 18,790 605 3,493 4,481 15,561 3,892 12,206 13,218 May.................................................. 72,592 18,892 604 3,535 4,490 15,632 3,913 12,252 13,274 June.................................................. 72,699 18,931 600 3,550 4,491 15,682 3,931 12,290 13,224 July................................................... 72,661 18,861 599 3,489 4,473 15,692 3,927 12,341 13,279 Aug.................................................... 72,984 18,930 602 3,544 4,478 15,758 3,936 12,419 13,317 Sept................................................... 73,176 19,029 606 3,551 4,499 15,794 3,953 12,379 13,365 Oct.................................................... 73,589 19,219 610 3,568 4,540 15,835 3,969 12,451 13,397 Nov................................................... 73,899 19,324 609 3,524 4,549 15,954 3,981 12,497 13,461 Dec................................................... 74,026 19,419 607 3,452 4,558 15,946 3,991 12,549 13,504 1973—Jan.?................................................. 74,155 19,466 611 3,489 4,577 15,939 3,996 12,610 13,467 Feb.*................................................ 74,596 19,550 614 3,579 4,596 16,061 4,012 12,670 13,514 not seasonally adjusted 1972—Feb.................................................... 70,775 18,457 598 3,096 4,367 15,120 3,839 11,967 13,331 Mar................................................... 71,393 18,573 601 3,210 4,442 15,248 3,862 12,066 13,391 Apr.................................................... 71,979 18,639 600 3,374 4,445 15,436 3,880 12,218 13,387 May.................................................. 72,612 18,751 605 3,528 4,481 15,570 3,909 12,338 13,430 June.................................................. 73,463 19,070 614 3,717 4,549 15,749 3,966 12,487 13,311 July................................................... 72,469 18,703 614 3,740 4,531 15,653 3,990 12,489 12,749 Aug................................................... 72,975 19,147 616 3,838 4,527 15,691 3,995 12,481 12,680 Sept................................................... 73,519 19,298 613 3,785 4,548 15,774 3,957 12,391 13,153 Oct.................................................... 74,118 19,359 609 3,782 4,549 15,887 3,957 12,463 13,512 Nov................................................... 74,449 19,414 607 3,630 4,554 16,162 3,965 12,472 13,645 Dec.................................................... 74,778 19,423 603 3,373 4,558 16,669 3,971 12,474 13,707 1973—Jan.?................................................. 73,256 19,276 599 3,144 4,513 15,815 3,956 12,396 13,557 Feb.?................................................ 73,597 19,391 599 3,171 4,522 15,712 3,976 12,518 13,708 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 1970, series has been adjusted to Mar. 1971 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjustedl Industry group 1972 1973 1972 1973 Feb. Dec. Jan.? Feb.2’ Feb. Dec. Jan.? Feb.* 13,544 14,275 14,303 14,368 13,413 14,282 14,136 14,236 Durable goods........................................................................ 7,680 8,274 8,311 8,362 7,638 8,290 8,246 8,320 Ordnance and accessories.......................................... 89 102 101 103 89 103 102 103 Lumber and wood products...................................... 519 538 538 542 504 529 519 527 397 421 425 427 395 426 425 425 Stone, clay, and glass products................................ 515 538 537 544 497 533 518 525 Primary metal industries............................................ 940 1,033 1,032 1,026 941 1,021 1,025 1,027 Fabricated metal products........................................ 1,022 1,082 1,092 1,105 1,015 1,092 1,086 1,097 Machinery...................................................................... 1,189 1,318 1,323 1,324 1,201 1,315 1,322 1,337 Electrical equipment and supplies........................... 1,198 1,309 1,318 1,335 1,194 1,318 1,316 1,331 Transportation equipment........................................ 1,218 1,306 1,310 1,317 1,225 1,326 1,320 1,324 Instruments and related products............................ 266 288 292 295 265 290 291 294 327 339 343 344 313 337 324 330 Nondurable goods................................................................. 5,864 6,001 5,992 6,006 5,775 5,992 5,890 5,916 Food and kindred products...................................... 1,180 1,175 1,185 1,183 1,107 1,162 1,125 1,110 Tobacco manufactures............................................... 60 59 59 61 58 63 59 58 Textile-mill products................................................... 857 895 893 900 854 898 889 897 Apparel and related products................................... 1,165 1,172 1,160 1,170 1,167 1,170 1,143 1,172 Paper and allied products......................................... 526 547 550 553 521 551 546 547 Printing, publishing, and allied industries............. 654 660 663 654 654 666 660 654 576 590 590 588 573 588 585 586 Petroleum refining and related industries............... 117 119 118 118 114 117 114 115 Rubber and misc. plastic products............................ 469 518 522 526 467 520 519 524 Leather and leather products.................................... 260 266 252 253 260 257 251 253 1 Data adjusted to 1971 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 1972 1973 1972 1973 1972 1973 Feb. Dec. Jan.? Feb.? Feb. Dec. Jan.? Feb.? Feb. Dec. Jan.? Feb.? 40.4 , 40.7 40.3 41.0 149.17 162.74 159.20 161.58 3.72 3.95 3.98 3.97 Durable goods........................................................... 41.1 41.6 41.3 42.0 161.17 177.24 173.43 175.55 3.96 4.21 4.23 4.22 Ordnance and accessories............................. 42.2 42.4 42.4 42.8 170.07 179.32 175.54 178.05 4.03 4.18 4.14 4.16 Lumber and wood products........................ 40.8 39.7 39.9 40.5 129.36 134.52 134.16 138.80 3.21 3.38 3.44 3.47 Furniture and fixtures.................................... 40.6 39.9 38.9 40.4 119.00 128.52 120.65 125.14 2.99 3.15 3.15 3.16 Stone, clay, and glass products................... 42.0 41.5 41.2 42.1 155.74 166.83 162.41 167.27 3.78 4.02 4.03 4.05 Primary metal industries.............................. 41.0 42.3 42.4 42.7 186.14 203.94 205.64 206.67 4.54 4.81 4.85 4.84 Fabricated metal products........................... 41.0 41.7 41.4 41.9 157.55 173.87 169.33 171.40 3.89 4.13 4.13 4.14 Machinery........................................................ 41.4 42.7 42.4 42.7 173.05 192.70 188.26 189.59 4.18 4.44 4.44 4.44 Electrical equipment and supplies.............. 40.6 40.5 40.4 41.4 144.36 155.77 153.14 154,60 3.60 3.79 3.80 3.78 Transportation equipment............................ 41.7 42.8 42.3 43.2 189.88 219.44 209.08 212.57 4.62 5.01 4.99 4.99 Instruments and related products............... 40.6 40.6 40.5 40.9 148.30 157.03 154.35 154.28 3.68 3.83 3.83 3.80 Miscellaneous manufacturing industries... 39.4 39.1 38.7 39.2 120.34 125.69 124.42 125.97 3.07 3.19 3.24 3.23 Nondurable goods................................................... 39.6 39.6 39.0 39.8 133.28 142.84 139.71 141.45 3.40 3.58 3.61 3.59 Food and kindred products......................... 40.1 40.4 40.1 40.1 139.83 151.40 149.25 148.13 3.54 3.72 3.75 3.75 Tobacco manufactures.................................. 34.1 35.6 34.7 36.7 111.88 126.34 122.09 129.23 3.38 3.49 3.57 3.63 Textile-mill products...................................... 41.2 41.2 39.4 41.0 111.11 118.01 111.54 117.10 2.71 2.83 2.86 2.87 Apparel and related products..................... 36.2 35.7 34.5 36.0 92.52 96.03 93.09 97.38 2.57 2.69 2.73 2.72 Paper and allied products............................ 42.6 42.9 42.6 43.1 161.63 175.80 171.74 172.94 3.83 4.06 4.06 4.05 Printing, publishing, and allied industries. 37.6 37.7 37.9 38.0 162.19 175.34 170.54 172.21 4.36 4.59 4.56 4.58 Chemicals and allied products..................... 41.8 41.9 41.6 42.0 171.39 182.73 180.94 181.83 4.12 4.33 4.36 4.35 Petroleum refining and related industries . 42.2 42.2 42.2 41.6 202.11 210.76 210.41 207.36 4.87 5.03 5.07 5.07 Rubber and misc. plastic products............. 41.0 41.2 41.3 41.8 143.26 154.75 153.71 154.80 3.52 3.72 3.74 3.73 Leather and leather products....................... 38.5 36.4 37.1 37.9 103.95 101.93 103.04 105.74 2.70 2.74 2.77 2.79 1 Data adjusted to 1971 benchmark. Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 PRICES □ MARCH 1973 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s 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 c n e a i c d t s ­ y o n F i p a n i n e u s g r d h r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o r h v d d e ­ s r tion tion ices 1929............................ 51.3 48.3 76.0 48.5 1933............................ 38.8 30.6 54.1 36.9 1941............................ 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................ 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960............................ 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1961............................ 89.6 89.1 90.9 92.9 86.9 91.0 99.4 93.7 90.4 90.6 86.7 81.4 90.6 89.3 88.5 1962............................ 90.6 89.9 91.7 94.0 87.9 91.5 99.4 93.8 90.9 92.5 88.4 83.5 92.2 91.3 89.1 1963............................ 91.7 91.2 92.7 95.0 89.0 93.2 99.4 94.6 91.9 93.0 90.0 85.6 93.4 92.8 90.6 1964............................ 92.9 92.4 93.8 95.9 90.8 92.7 99.4 95.0 92.7 94.3 91.8 87.3 94.5 95.0 92.0 1965............................ 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966............................ 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967............................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969............................ 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970............................ 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 1971............................ 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 1972............................ 125.3' 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1972—Jan.................. 123.2 120.3 127.3 tr117.5 137.8 118.7 119.0 119.5 120.2 119.0 124.3 130.5 118.1 121.4 123.5 Feb................. 123.8 122.2 127.6 Jr117.8 138.0 118.7 119.4 119.6 120.7 118.3 124.7 131.0 118.4 121.5 124.3 Mar................ 124.0 122.4 127.9 %r\18.0 138.2 118.7 119.7 120.1 121.3 118.4 125.0 131.4 118.7 121.7 124.6 Apr................. 124.3 122.4 128.2 tr118.4 138.5 118.6 120.2 120.5 121.8 118.6 125.5 131.7 119.1 122.3 125.1 May............... 124.7 122.3 128.5 trl 18.6 138.9 118.7 120.5 120.8 122.5 119.5 125.8 132.0 119.7 122.5 125.4 June............... 125.0 123.0 129.0 trl19.0 139.6 117.8 120.3 121.0 122.1 119.8 126.1 132.4 120.0 122.9 125.6 July................. 125.5 124.2 129.5 JM19.2 140.7 117.7 120.3 121.1 121.1 120.3 126.3 132.7 120.0 123.0 125.8 Aug................. 125.7 124.6 129.9 t'119.6 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 Sept................ 126.2 124.8 130.1 119.9 141.5 118.0 120.5 121.6 123.1 121.0 126.8 133.1 120.5 123.7 126.2 Oct.................. 126.6 124.9 130.4 120.3 141.8 118.1 120.9 121.8 124.3 121.2 127.2 133.9 120.8 124.0 126.4 Nov................ 126.9 125.4 130.8 120.5 142.0 119.3 122.2 122,1 125.0 121.4 127.4 134.1 121.0 124.1 126.4 Dec................. 127.3 126.0 131.2 121.0 142.6 119.4 122.5 122.3 125.0 121.3 127.5 134.4 121.5 124.0 126.5 1973—Jan.................. 127.7 128.6 131.4 121.5 142.6 120.7 124.1 122.2 123.0 121.0 127.8 134.9 121.8 124.1 126.7 t Reflects effect of refund of Federal excise tax on new cars. Note.—Bureau of Labor Statistics index for city wage-earners and t Indexes affected by refunds of residential telephone series changes in clerical workers. California and retroactive rent increases in New York City. 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 m d s ­ c f f e o a e s n o e s d d d e s d s Total T t e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u e tc r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c m M a q e h n e u r i a y n d n i ­ p ­ t ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i a o e u r n n n i t p a s t ­ ­ ­ 1 n c M e e o l i l s u a ­ s ­ I960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961................................ 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962............................... 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963................................ 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964................................ 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965................................ 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................ 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968................................ 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 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 1972................................ 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 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..................... 119.7 128.0 121.5 118.1 114.0 131.6 118.6 104.2 109.2 146.1 113.7 123.5 118.3 111.4 126.2 114.1 114.9 119.9 128.2 121.0 118.5 114.1 134.6 119.7 104.4 109.5 148.1 114.1 123.7 118.3 111.7 126.7 114.2 115.1 Sept.................... 120.2 128.6 121.8 118.7 114.3 135.7 120.3 104.4 109.5 148.5 114.3 124.0 118.3 112.0 126.9 114.2 115.2 Oct..................... 120.0 125.5 121.8 118.8 114.8 139.8 120.6 104.4 109.5 149.2 114.7 124.1 118.4 112.0 127.3 112.9 115.0 Nov.................... 120.7 128.8 123.1 119.1 115.1 144.0 121.3 104.7 109.8 149.4 115.0 124.1 118.5 112.3 127.3 113.0115.0 Dec..................... 122.9 137.5 129.4 119.4 115.6 142.2 121.9 104.8 109.8 149.8 115.1 124.4 118.6 112.4 127.4 114.2 115.1 1973—Jan...................... 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 |ll5.8 125.6 118.9 112.6 128.2 114.1 115.8 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967=100) 1972 1973 1972 1973 Group Group Jan. Nov. Dec. Jan. Jan. Nov. Dec. Jan. Farm products: Pulp, paper, and allied products: 124.9 141.8 134.6 151.2 Pulp, paper and products, excluding 94.1 113.6 137.6 135.6 building paper and board.............. 111.1 115.3 115.4 116.1 132.2 139.5 152.6 159.4 Woodpulp.............................................. 111.5 111.5 111.5 111.5 94.3 102.8 103.6 127.9 Wastepaper............................................ 124.9 136.9 133.6 133.8 109.5 112.2 120.9 134.1 Paper....................................................... 114.9 117.3 117.5 117.8 120.5 123.5 123.6 126.7 Paperboard............................................ 102.7 106.8 107.1 108.2 92.6 123.1 143.9 158.2 Converted paper and paperboard... 110.3 115.6 115.8 116.6 108.7 124.6 141.6 143.9 Building paper and board.................. 104.7 107.2 107.2 107.1 118.0 134.0 135.3 136.5 Processed foods and feeds: Metals and metal products: 112.2 118.3 120.1 121.0 125.4 127.9 136.3 145.2 Iron and steel........................................ 126.8 129.0 129.5 131.9 117.3 121.8 123.0 123.8 Steelmill products............................... 129.6 130.2 130.2 132.6 Processed fruits and vegetables............ 116.0 123.8 124.7 125.3 Nonferrous metals............................... 114.4 117.2 117.4 117.9 Sugar and confectionery........................ 120.1 121.7 122.1 121.5 Metal containers.................................. 124.2 131.1 131.1 131.1 Beverages and beverage materials.... 116.4 119.4 119.7 119.8 Hardware............................................... 118.4 121.4 121.4 121.7 121.4 134.9 122.9 120.6 Plumbing equipment . . 118.2 120.8 120.8 120.8 114.2 93.7 99.2 96.3 Heating equipment.............................. 115.9 119.2 119.2 118.8 121.0 104.6 108.8 110.0 Fabricated structural metal products 121.6 123.1 123.3 124.4 121.7 121.6 119.2 119.7 Miscellaneous metal products........... 121.3 124.9 124.8 125.2 113.6 116.1 115.8 116.6 103.8 130.5 163.6 166.3 Textile products and apparel: Machinery and equipment: 116.7 124.2 124.8 126.0 Agricultural machinery and equip... 119.9 122.9 122.9 123.6 92.0 107.1 108.8 114.5 Construction machinery and equip.. 124.3 126.3 126.3 126.6 Manmade fiber textile products......... 105.4 109.5 110.3 111.4 Metalworking machinery and equip. 118.5 121.3 121.3 121.8 Apparel..................................................... 113.8 115.9 116.0 116.5 General purpose machinery and Textile housefurnishings........................ 106.2 109.9 109.9 109.9 equipment.......................................... 120.8 123.3 123.4 123.9 Miscellaneous textile products............. 137.4 118.7 119.9 120.0 Special industry machinery and equipment.......................................... 122.6 124.5 124.6 124.9 Hides, skins, leather, and products: Electrical machinery and equip......... 109.5 110.6 110.6 110.9 Miscellaneous machinery................... 118.3 120.8 121.0 121.1 Hides and skins........................................ 136.0 287.0 255.2 274.0 Leather....................................................... 120.0 162.6 162.2 162.8 Footwear.................................................. 118.1 128.5 128.7 129.0 Other leather products..................... 110.6 127.1 128.4 129.3 Furniture and household durables: Fuels and related products, and power: Household furniture............................ 116.0 118.1 118.5 119.1 Commercial furniture.......................... 118.3 123.4 123.4 123.6 192.7 201.2 205.5 205.5 Floor coverings 98.1 99.1 99.2 99.7 Coke........................................................... 150.5 157.0 159.9 162.5 Household appliances 106.9 108.0 107.9 107.8 Gas fuels.................................................... 110.0 119.0 119.2 118.4 Home electronic equipment 93.3 92.5 92.3 92.4 Electric power.......................................... 118.9 123.0 122.9 123.8 Other household durable goods.... 122.3 126.9 127.0 127.0 Crude petroleum...................................... 113.2 114.7 114.7 114.7 Petroleum products, refined .................. 106.1 111.5 112.0 112.3 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals................................ 101.4 100.9 101.0 101.4 Flat glass................................................ 123.6 122.5 122.5 122.5 Prepared paint.......................................... 116.2 118.2 118.2 119.4 Concrete ingredients............................ 124.4 128.5 128.5 129.0 Paint materials................................................. 102.7 105.1 106.3 106.5 Concrete products...................................... 123.4 127.3 127.5 128.5 Drugs and pharmaceuticals................... 102.3 103.6 103.7 103.5 Structural clay products excluding Fats and oils, inedible............................ 111.3 123.2 128.2 130.3 refractories......................................... 114.8 118.8 118.9 120.3 Agricultural chemicals and products.. 90.3 92.4 92.5 93.0 Refractories........................................... 127.1 132.1 132.1 136.3 Plastic resins and materials................... 88.6 89.6 89.3 89.7 Asphalt roofing.................................... 131.2 131.2 131.2 131.2 Other chemicals and products.............. 112.4 114.1 114.0 113.9 Gypsum products................................ 113.4 115.0 114.8 117.4 Glass containers.................................... 131.5 136.4 136.4 136.4 Rubber and plastic products: Other nonmetallic minerals............... 125.7 127.3 127.3 127.8 Rubber and rubber products............... 113.4 114.6 114.6 115.0 Crude rubber........................................ 99.2 100.8 101.2 102.7 Tires and tubes.................................... 110.3 109.7 109.7 109.7 Transportation equipment: Miscellaneous rubber products........ 119.7 122.0 122.0 122.3 Plastic construction products (Dec. Motor vehicles and equipment......... 117.9 117.0 118.4 118.2 1969 = 100)............................................ 93.7 93.3 93.3 94.0 Railroad equipment............................. 123.7 130.2 131.1 131.8 Unsupported plastic film and sheeting (Dec. 1970=100)................................. 100.0 98.6 98.6 98.7 Laminated sheets, high pressure (Dec. 1970= 100)................................. 98.2 97.9 97.9 97.5 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition....................................... 113.5 115.0 115.1 116.2 Lumber....................................................... 146.9 166.8 167.9 169.0 Tobacco products................................ 117.4 117.5 117.5 117.5 Millwork................................................... 124.9 130.9 130.7 131.4 Notions................................................... 111.7 112.9 112.9 112.9 Plywood..................................................... 120.2 133.3 132.3 134.1 Photographic equipment and supplies 106.4 107.0 107.0 107.3 Other wood products.............................. 119.6 130.2 130.5 133.1 Other miscellaneous products........... 113.9 116.9 117.2 118.6 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 □ MARCH 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1971 1972 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 IV III IV Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,078.11,109.11.139.41,164.01,194.9 Final purchases.............. 101.4 57.2 120.1 278.0 857.1 922.5 971.51M6.71.H5. 1,076.41,108.61.134.41,156.01,184.6 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 616.8 664.9 721.0 680.5 696.1 713.4 728.6 745.7 Durable goods................................ 9.2 3.5 9.6 30.5 84.0 90.8 90.5 103.5 116.1 106.1 111.0 113.9 118.6 120.8 Nondurable goods......................... 37.7 22.3 42.9 98.1 230.8 245.9 264.4 278.1 299.5 283.4 288.3 297.2 302.0 310.4 Services............................................ 30.3 20.1 28.1 62.4 221.3 242.7 261.8 283.3 305.4 290.9 296.7 302.4 308.0 314.5 Gross private domestic investment........ 16.2 1.4 17.9 54.1 126.0 139.0 137.1 152.0 180.4 158.8 168.1 177.0 183.2 193.4 Fixed investment.................................. 14.5 3.0 13.4 47.3 118.9 131.1 132.2 148.3 174.5 157.2 167.7 172.0 175.2 183.1 Nonresidential................................... 10.6 2.4 9.5 27.9 88.8 98.5 100.9 105, 120.6 109.8 116.1 119.2 120.7 126.1 Structures...................................... 5.0 .9 2.9 9.2 30.3 34.2 36.0 38.4 42.2 38.8 41.3 42.0 41.8 43.7 Producers’ durable equipment. 5.6 1.5 6.6 18.7 58.5 64.3 64.9 67.4 78.3 71.0 74.8 77.2 79.0 82.3 Residential structures..................... 4.0 .6 3.9 19.4 30.1 32.6 31.2 42.6 54.0 47.3 51.6 52.8 54.4 57.0 Nonfarm....................................... 3.8 .5 3.7 18.6 29.5 32.0 30.7 42.0 53.2 46.7 51.0 52.1 53.7 56.1 Change in business inventories........ 1.7 -1.6 4.5 6.8 7.1 7.8 4.9 3.6 5.9 1.7 .4 5.0 8.0 10.3 Nonfarm............................................ 1.8 -1.4 4.0 6.0 6.9 7.7 4.8 2.4 5.6 .1 4.3 7.9 10.1 Net exports oi goods and services. 1.1 .4 1.3 1.8 2.5 1.9 3.6 .7 -4.2 -2.1 -4.6 -5.2 -3.4 -3.5 Exports.......................................... 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.1 73.7 63.0 70.7 70.0 74.4 79.6 Imports.......................................... 5.9 2.0 4.6 12.0 48.1 53.6 59.3 65.4 77.9 65.1 75.3 75.2 77.8 83.1 Government purchases of goods and services. 8.5 8.0 24.8 37.9 199.6 210.0 219.0 232.8 254.6 240.9 249.4 254.1 255.6 259.3 Federal.............................................................. 1.3 2.0 16.9 18.4 98. 98.8 96.5 97. 105.8 100.7 105.7 108.1 105.4 104.0 National defense........................................ 13.8 14.1 78.3 78.4 75.1 71.4 75.9 71.9 76.7 78.6 75.1 73.2 Other............................................................. 3.1 4.3 20.5 20.4 21.5 26.3 29.9 28.7 28.9 29.6 30.2 30.8 State and local................................................ 7.2 6.0 7.9 19.5 100.8 111.2 122.5 135.0 148.8 140.2 143.7 146.0 150.2 155.2 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 706.6 725.6 722.1 741.7 789.5 754.5 766.5 783.9 796.1 811.6 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 1968 1969 1970 1971 1972 Item IV I II III 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 934.7 876.2 903.1 922.1 943.0 Compensation of employees................................ 51.1 29.5 64.8 154.6 514.6 566.0 603.8 644.1 705.3 660.4 682.7 697.8 710.2 730.3 Wages and salaries........................................... 50.4 29.0 62.1 146.8 464.9 509.7 541.9 573.5 626.5 587.3 606.6 620.0 630.6 648.8 45.5 23.9 51.9 124.4 369.2 405.6 426.8 449.7 491.9 460.9 475.8 487.1 494.8 510.0 .3 .3 1.9 5.0 17.9 19.0 19.6 19.4 20.6 19.4 20.8 20.5 20.4 20.6 Government civilian.................................... 4.6 4.9 8.3 17.4 77.8 85.1 95.5 104.4 114.0 107.0 110.0 112.4 115.4 118.1 Supplements to wages and salaries................ .7 .5 2.7 7.8 49.7 56.3 61.9 70.7 78.8 73.0 76.1 77.8 79.6 81.5 Employer contributions for social in- .1 .1 2.0 4.0 24.3 27.8 29.7 34.1 38.5 35.0 37.3 38.0 38.8 39.8 Other labor income...................................... .6 .4 .7 3.8 25.4 28.4 32.1 36.5 40.3 38.0 38.8 39.8 40.8 41.8 Proprietors’ income............................................... 15.1 5.9 17.5 37.5 64.2 67.2 66.8 70.0 75.2 71.8 73.3 73.2 75.3 79.0 Business and professional.............................. 9.0 3.3 11.1 24.0 49.5 50.5 49.9 52.6 55.6 53.8 54.3 54.4 56.2 57.4 Farm.................................................................... 6.2 2.6 6.4 13.5 14.7 16.7 16.9 17.3 19.6 18.1 19.1 18.7 19.1 21.6 5.4 2.0 3.5 9.4 21.2 22.6 23.3 24.5 25.6 25.0 25.2 24.2 26.2 26.9 Corporate profits and inventory valuation adjustment.......................................................... 10.5 -1.2 15.2 37.7 84.3 79.8 69.9 78.6 87.3 79.4 81.8 86.1 r89.6 10.0 1.0 17.7 42.6 87.6 84.9 74.3 83.3 93.3 83.2 88.2 91.6 95.7 1.4 .5 7.6 17.8 39.9 40.1 34.1 37.3 40.8 35.3 38.8 40.1 41.8 8.6 .4 10.1 24.9 47.8 44.8 40.2 45.9 52.5 48.0 49.5 51.5 53.9 Dividends................................................... 5.8 2.0 4.4 8.8 23.6 24.3 24.8 25.4 26.4 25.2 26.0 26.2 26.5 26.7 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 24.2 20.5 15.4 20.5 26.1 22.7 23.5 25.3 27.3 Inventory valuation adjustment.................... .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.4 -4.7 -6.0 -3.9 -6.5 -5.5 -6.1 -5.9 4.7 4.1 3.2 2.0 26.9 30.5 34.8 38.5 41.3 39.7 40.1 40.9 41.7 42.5 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 1968 1969 1970 1971 1972 IV III IV* Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,078.11,109.11,139.41,164.01,194.9 Less: Capital consumption allowances........ 7.9 7.0 8.2 18.3 74.5 81.6 86.3 93.8 103.7 97.4 99.7 105.3 104.1 105.6 Indirect business tax and nontax lia­ bility ..................................................... 7.0 7.1 11.3 23.3 78.6 85.9 93.4 101.9 110.1 105.6 106.7 108.7 111.4 113.7 Business transfer payments................. .6 .7 .5 .8 3.4 3.8 4.2 4.6 4.9 4.7 4.8 4.9 5.0 5.0 Statistical discrepancy........................... .7 .6 .4 1.5 -2.7 -6.1 -4.7 -4.8 .1 -5.2 -4.1 -.1 2.3 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 .7 1.0 1.5 .9 1.7 .7 1.2 1.6 1.8 2.2 Equals: National income. 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 934.7 876.2 903.1 922.1 943.0 Less: Corporate profits and inventory valu­ ation adjustment.................................. 10.5 -1.2 15.2 37.7 84.3 79.8 69.9 78.6 87.3 79.4 81.8 86.1 89.6 Contributions for social insurance---- .2 .3 2. 6.9 47.1 54.2 57.7 65.3 74.0 66.9 71.9 73.1 74.6 76.3 Excess of wage accruals over disburse­ ments...................................................... .6 -.5 1.4 -1.4 -.5 -.2 .0 Plus: Government transfer payments.......... 1.5 2.6 14.3 56.1 61.9 75.2 89.0 99.1 92.1 94.4 95.7 97.7 108.5 Net interest paid by government and consumers............................................ 2.5 1.6 2.2 7.2 26.1 28.7 31.0 31.1 31.6 30.9 30.9 31.8 31.7 32.0 Dividends................................................. 5.8 2.0 4.4 8.8 23.6 24.3 24.8 25.4 26.4 25.2 26.0 26.2 26.5 26.7 Business transfer payments................. .6 .7 .5 .8 3.4 3.8 4.2 4.6 4.9 4.7 4.8 4.9 5.0 5.0 Equals: Personal income.................................., 85.9 47.0 96.0 227.6 688.9 750.9 806.3 861.4 935.9 881.5 907.0 922.1 939.9 974.6 Less: Personal tax and nontax payments__ 2.6 1.5 3.3 20.7 97.9 116.5 116.7 117.0 140.8 123.0 136.5 139.5 141.1 146.4 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 591.0 634.4 689.5 744.4 795.1 758.5 770.5 782.6 798.8 828.2 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 551.2 596.2 634.7 683.4 740.2 699.2 714.9 732.5 748.0 765.5 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 616.8 664.9 721.0 680.5 696.1 713.4 728.6 745.7 Consumer interest payments............. 1.5 .5 .9 2.4 14.3 15.8 16.9 17.6 18.2 17.7 17.8 18.0 18.2 18.6 Personal transfer payments to for­ eigners................................................ .3 .2 .2 .5 .8 .9 1.0 1.0 1.1 1.1 1.0 1.1 1.2 1.2 Equals: Personal saving. 4.2 -.9 11.0 13.1 39.8 38.2 54.9 60.9 54.8 59.3 55.7 50.1 50.8 62.8 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 499.0 513.6 533.2 554.7 578.5 560.9 565.7 571.4 579.6 597.3 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) 1972 1973 Item 1971 1972? Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total personal income............................ 861.4 935.9 898.9 908.5 913.6 919.4 924.0 922.9 932.9 940.0 946.8 964.6 976.2 982.9 985.4 Wage and salary disbursements........... 572.9 627.0 602.6 609.0 612.4 617.6 619.9 624.0 625.7 630.6 636.0 643.0 648.5 654.9 662.6 Commodity-producing industries.. 206.1 224.6 214.8 217.7 220.1 221.7 222.5 223.5 222.4 225.2 227.8 231.0 233.3 235.8 237.4 Manufacturing only........................ 160.3 175.8 165.8 169.3 171.3 173.3 173.8 175.0 174.5 176.6 178.8 181.5 183.9 186.2 186.9 Distributive industries........................ 138.2 151.5 145.5 148.1 148.0 149.4 149.4 151.4 151.9 152.3 153.0 155.0 156.3 158.0 159.7 Service industries................................ 105.0 116.1 111.2 111.6 112.8 113.9 114.7 115.5 116.9 117.3 118.2 119.3 119.9 121.5 123.0 Government......................................... 123.5 134.8 131.2 131.7 131.5 132.5 133.2 133.6 134.5 135.8 137.0 137.7 139.0 139.7 142.6 Other labor income................................ 36.5 40.3 38.5 38.8 39.1 39.5 39.8 40.1 40.5 40.8 41.1 41.4 41.8 42.1 42.4 Proprietors* income................................ 69.9 75.2 72.6 73.2 74.2 74.0 74.0 71.6 74.3 75.4 76.2 77.7 79.5 79.8 79.9 Business and professional................. 52.6 55.6 54.0 54.1 54.7 54.9 55.3 53.2 55.7 56.3 56.7 57.0 57.4 57.8 58.1 Farm...................................................... 17.3 19.6 18.6 19.1 19.5 19.1 18.7 18.4 18.6 19.1 19.5 20.7 22.1 22.0 21.8 Rental income......................................... 24.5 25.6 25.1 25.2 25.3 25.5 25.6 21.5 25.8 26.3 26.5 27.0 26.7 26.9 26.4 Dividends................................................. 25.4 26.4 26.0 26.1 26.0 26.1 26.3 26.3 26.4 26.6 26.5 26.7 26.6 26.8 27.1 Personal interest income....................... 69.6 72.9 70.8 71.0 71.3 72.0 72.7 73.4 73.5 73.4 73.3 73.7 74.5 75.4 75.9 Transfer payments.................................. 93.6 104.0 97.6 100.0 100.1 99.7 100.9 101.3 102.2 102.8 103.2 111.6 115.2 113.6 113.2 Less: Personal contributions for social insurance.......................................... 31.2 35.5 34.3 34.7 34.8 35.0 35.1 35.3 35.5 35.8 36.0 36.4 36.5 36.6 42.1 Nonagricultural income.......................... 837.2 909.3 873.4 882.4 887.1 893.4 898.3 897.5 907.3 914.0 920.3 937.1 947.2 953.9 956.4 Agricultural income................................. 24.2 26.6 25.6 26.0 26.5 26.0 25.8 25.4 25.5 25.9 26.5 27.6 29.0 29.0 29.0 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 n MARCH 1973 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 1966 1967 1968 1969 1970 1971 HI H2 HI H2 HI H2 HIr H2 Funds raised, by type and sector Total funds raised by nonfinancial 1 sectors............................................ 68.7 83.4 97.8 91.7 101.6 156.3 92.1 91.0 93.8 109.7 142.9 168.9 150.3 185.4 1 2 U.S. Government................................. 3.6 13.0 13.4 -3.6 12.8 25.5 — 6.4 -.6 8.2 17.4 22.3 28.6 11.4 23.2 2 3 Public debt securities...................... 2.3 8.9 10.3 -1.3 12.9 26.0 -5.9 3.6 9.5 16.3 23.8 28.1 9.6 19.0 3 4 Budget agency issues...................... 1.3 4.1 3.1 -2.4 -.1 — .5 -.5 -4.2 -1.3 1.1 -1.6 .5 1.8 4.2 4 5 All other nonfinancial sectors.. 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 138.9 162.2 5 6 Corporate equity shares................. .9 2.4 -.7 4.8 6.8 13.5 1.9 7.6 6.0 7.6 12.7 14.2 13.1 11.6 6 7 Debt instruments............................. 64.1 68.0 85.1 90.6 81.9 117.4 96.6 83.9 79.6 84.7 108.0 126.1 125.8 150.6 7 8 Debt capital instruments........... 39.0 46.2 51.3 49.0 60.8 87.5 51.8 46.2 52.5 69.2 84.5 90.5 87.2 97.6 8 9 State and local govt. secs.... 5.7 8.3 10.1 7.9 13.8 20.2 8.5 7.4 11.8 15.9 22.0 18.4 14.0 14.8 9 10 Corporate and fgn. bonds... 11.0 15.9 14.0 13.1 21.1 20.3 14.0 12.2 18.0 24.3 23.2 17.4 13.8 13.7 10 11 Mortgages................................. 22.3 22.0 27.3 27.9 25.8 47.0 29.3 26.5 22.7 29.0 39.3 54.6 59.3 69.2 11 12 Home mortgages................. 11.4 11.6 15.2 15.7 12.8 26.1 16.8 14.6 11.2 14.4 20.4 31.8 33.4 40.6 12 13 3.1 3.6 3.5 4.8 5.9 8.8 4.6 5.1 5.2 6.6 8.6 9.0 9.3 10.2 13 14 5.7 4.7 6.6 5.5 5.4 10.1 5.7 5.3 4.8 6.0 8.6 11.6 13.9 15.7 14 15 Farm...................................... 2.1 2.1 2.1 1.9 1.8 2.0 2.3 1.6 1.5 2.1 1.8 2.3 2.7 2.6 15 16 Other private credit..................... 25.1 21.8 33.8 41.6 21.1 29.9 44.8 37.8 27.1 15.5 23.4 35.6 38.6 53.0 16 17 Bank loans n.e.c....................... 10.4 9.9 13.8 16.8 5.0 13.0 19.4 14.2 9.0 1.1 7.9 18.0 15.9 27.3 17 18 Consumer credit...................... 7.2 4.6 11.1 9.3 4.3 10.4 10.0 7.9 5.5 3.4 6.5 13.5 15.6 22.4 18 19 Open market paper................. 1.0 2.1 1.6 3.3 3.8 -.4 4.6 2.1 3.7 3.8 -.4 -.4 1.6 -2.2 19 20 Other.......................................... 6.4 5.2 7.3 12.2 8.0 6.9 10.8 13.6 8.8 7.3 9.4 4.5 5.5 5.6 20 21 By borrowing sector...................... 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 138.9 162.2 21 22 Foreign.............................................. 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 4.1 22 23 State and local governments......... 6.4 8.5 10.4 8.7 13.9 20.6 8.9 8.5 11.4 16.4 22.1 19.1 13.9 15.2 23 24 Households........................................ 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 53.8 69.9 24 25 34.1 38.1 39.1 50.8 49.5 63.0 50.8 50.7 49.9 49.2 61.6 64.4 68.2 73.0 25 26 Corporate...................................... 25.2 29.7 30.7 40.2 39.8 48.6 39.8 40.6 41.1 38.5 47.0 50.1 52.2 56.9 26 27 5.5 5.0 5.7 7.4 6.4 10.3 7.6 7.2 5.6 7.4 11.0 9.7 11.8 11.2 27 28 Farm............................................... 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 4.9 28 29 Memo: U.S. Govt, cash balance totals net of changes in U.S.......... -.4 1.2 -1.1 .4 2.7 3.3 -1.5 2.2 2.3 3.1 -1.0 7.6 -5.0 4.0 29 30 Total funds raised................................ 69.1 82.2 99.0 91.3 98.9 153.1 93.6 88.8 91.6 106.6 143.9 161.3 155.4 181.4 30 31 by U.S. Government....................... 4.0 11.8 14.5 -4.0 10.1 22.2 -4.9 -2.8 6.0 14.3 23.3 21.1 16.5 19.2 31 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1............... 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 282.9 305.5 1 2 Capital consumption2..................... 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 192.4 198.1 2 3 Net physical investment................. 72.7 60.3 68.3 72.7 60.6 74.3 73.2 72.2 61.8 59.4 72.5 76.1 90.5 107.4 3 4 Net funds raised.............................. 57.3 57.9 71.0 83.3 71.8 104.6 84.9 81.1 71.9 72.1 93.1 115.4 122.0 142.8 4 5 Excess net investment3................... 15.4 2.4 -2.7 -10.6 -11.2 -30.3 -11.7 -8.9 -10.1 -12.7 -20.5 -39.2 -31.6 -35.5 5 Total business 6 Total capital outlays................. 97.0 94.0 99.0 109.3 110.1 118.0 106.1 112.4 108.4 111.9 116.9 119.0 133.4 145.1 6 7 54.2 58.5 63.2 69.5 73.6 80.0 67.9 71.1 72.9 74.2 77.8 82.3 87.7 90.2 7 8 42.8 35.6 35.8 39.7 36.6 37.9 38.1 41.3 35.5 37.6 39.2 36.7 45.8 55.0 8 9 Net debt funds raised..................... 33.0 35.8 40.0 46.5 42.7 49.6 49.5 43.4 43.7 41.9 49.2 49.9 54.8 61.1 9 10 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 11.9 10 11 8.7 -2.5 -3.3 -11.1 -12.9 -25.1 -12.6 -9.5 -14.4 -11.6 -22.4 -27.7 -22.4 -18.0 11 Corporate business 12 Total capital outlays................. 77.1 72.0 76.2 84.0 84.6 85.2 81.5 86.5 83.0 86.3 85.0 85.5 97.5 108.9 12 13 Capital consumption....................... 38.2 41.5 45.1 49.9 52.7 57.3 48.7 51.1 52.3 53.1 55.6 59.0 63.2 65.4 13 14 38.9 30.5 31.1 34.2 31.9 27.9 32.9 35.4 30.7 33.1 29.4 26.4 34.2 43.4 14 15 24.0 27.4 31.6 35.9 33.0 35.1 38.6 33.2 34.9 31.2 34.7 35.6 38.8 45.0 15 16 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 11.9 16 17 13.7 .8 .3 -6.0 -7.9 -20.7 -6.9 -5.1 -10.4 -5.3 -17.6 -23.7 -18.0 -13.5 17 Households 18 Total capital outlays................. 94.2 94.6 109.7 117.8 115.3 134.9 118.1 117.5 115.9 114.8 130.1 139.8 149.5 160.3 18 19 64.3 69.9 77.2 84.8 91.3 98.5 83.1 86.6 89.6 93.0 96.7 100.3 104.8 107.9 19 20 29.9 24.7 32.5 33.0 24.0 36.4 35.1 30.9 26.3 21.7 33.4 39.4 44.7 52.4 20 21 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 53.8 69.9 21 22 6.7 5.0 .6 .5 1.7 -5.2 .9 .6 4.3 -1.2 1.9 -11.5 -9.1 -17.4 22 Of which: 23 Houses less home mortgages......... -.8 -1.3 -2.1 -2.9 -1.9 -8.1 -2.8 -3.1 -1.0 -2.8 -4.2 -11.9 -10.7 -16.1 23 24 Durables less consumer credit.. . 7.9 7.8 5.6 7.0 5.5 5.7 7.7 6.9 6.4 4.4 8.7 3.5 4.3 1.5 24 25 Nonprofit P&E less mortgages... 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 3.0 25 26 Less: Unallocated debt.................. 2.4 3.5 4.8 5.8 4.1 5.2 6.0 5.6 3.3 4.9 4.9 5.6 5.3 5.7 26 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 4) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by federally sponsored credit agencies are excluded as borrowing by financial institu­ Note.—Full sector statements are available on a quarterly basis for tions. Such issues are in U.S. Government securities on p. A-73, line 11. flows and annually in amounts outstanding. Requests for these statements Corporate share issues are net cash issues by nonfinancial and foreign Digitized for FRshAouSldE Rbe addressed to the Flow of Funds Section, Division of Research corporations. Mortgages exclude loans in process. Open market paper is and Statistics, Board of Governors of the Federal Reserve System, Wash­ commercial paper issued by nonfinancial corporations plus bankers’ http://fraser.stlionugtiosnfe, dD..oCr.g, /2 0551. acceptances. Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 1966 1967 1968 1969 1970 1971 HI H2 HI H2 HI H2 HI ' H2 1 Total funds advanced in credit mar­ kets to nonfinancial sectors......... 67.7 81.0 98.5 86.9 94.7 142.9 90.2 83.3 87.8 102.1 130.2 154.7 137.2 173.8 1 By public agencies and foreign 2 Total net advances................................ 11.9 11.3 12.2 15.8 28.0 41.2 9.9 22.3 25.3 30.6 37.7 44.8 19.5 15.8 2 3 U.S. Government securities........... 3.4 6.8 3.4 .9 15.7 33.4 -2.7 4.5 10.5 21.0 32.4 34.4 13.1 3.8 3 4 Residential mortgages.................... 2.8 2.1 2.8 4.6 5.7 5.7 3.0 6.3 6.3 5.2 4.2 7.1 6.2 4.4 4 5 FHLB advances to S&L’s.............. .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -2.7 2.8 5 6 Other loans and securities............. 4.8 4.9 5.1 6.3 5.2 4.8 6.6 6.6 5.7 4.6 6.9 2.8 2.9 4.8 6 By agency— 7 U.S. Government............................. 4.9 4.6 4.9 2.9 2.8 3.2 2.7 3.7 3.1 2.6 4.4 1.9 1.6 2.2 7 8 Sponsored credit agencies.............. 5.1 -.1 3.2 9.0 9.9 2.8 6.2 11.8 11.1 8.7 -1.8 7.4 7.9 6.1 8 9 Federal Reserve................................ 3.5 4.8 3.7 4.2 5.0 8.8 3.7 4.8 2.8 7.2 8.4 9.3 4.7 -4.2 9 10 Foreign............................................... -1.6 2.0 .3 -.3 10.3 26.4 -2.6 2.0 8.3 12.2 26.7 26.1 5.4 11.6 10 11 Agency borrowing not in line 1.... 4.8 -.6 3.5 8.8 8.7 3.9 7.1 11.0 10.8 6.6 .3 7.4 7.0 4.8 11 Private domestic funds advanced 12 Total net advances................................ 60.6 69.1 89.8 79.9 75.5 105.5 87.3 72.0 73.3 78.0 92.8 117.3 124.7 162.9 12 13 U.S. Government securities........... 5.4 5.7 13.3 4.6 5.8 -4.0 3.5 6.1 8.6 3.1 -9.9 1.8 5.4 24.3 13 14 Municipal securities........................ 5.7 8.3 10.1 7.9 13.8 20.2 8.5 7.4 11.8 15.9 22.0 18.4 14.0 14.8 14 15 Corporate and foreign bonds........ 10.3 16.0 13.8 12.6 20.5 20.0 13.4 11.8 17.1 23.8 23.0 17.1 13.6 13.7 15 16 Residential mortgages..................... 11.6 13.1 15.8 15.8 12.9 29.2 18.3 13.3 10.0 15.7 24.7 33.6 36.4 46.4 16 17 Other mortgages and loans........... 28.5 23.5 37.8 43.0 23.8 37.4 46.8 38.5 28.6 19.4 27.2 46.8 52.5 66.5 17 18 Less: FHLB advances.................... .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -2.7 2.8 18 Private financial intermediation 19 Credit market funds advanced by pri­ vate financial institutions............ 44.7 62.8 75.0 54.0 70.2 105.8 64.3 43.6 54.3 86.1 105.9 105.3 123.2 155.3 19 20 Commercial banking...................... 17.0 35.9 39.0 18.9 31.6 49.8 23.2 14.6 21.6 41.5 49.4 50.0 53.4 77.0 20 21 Savings institutions......................... 7.9 15.0 15.6 14.2 16.6 41.6 17.8 10.6 11.7 21.5 45.4 37.8 48.4 49.4 21 22 Insurance and pension funds......... 15.0 12.4 13.9 12.2 17.6 12.0 12.4 12.1 17.7 17.5 11.6 12.4 14.3 19.5 22 23 Other finance.................................... 4.7 -.5 6.6 8.6 4.5 2.3 10.9 6.2 3.4 5.5 -.6 5.2 7.1 9.5 23 24 Sources of funds.................................... 44.7 62.8 75.0 54.0 70.2 105.8 64.3 43.6 54.3 86.1 105.9 105.3 123.2 155.3 24 25 Domestic private deposits............. 21.2 49.4 46.1 2.5 60.4 92.3 5.0 -.1 32.0 88.8 105.8 78.6 99.9 105.7 25 26 Credit market borrowing............... 3.0 -.6 6.9 16.8 1.8 4.5 13.4 20.1 10.7 -7.0 -.2 9.2 7.1 20.3 26 27 Other sources.................................... 20.5 14.0 22.0 34.7 8.0 9.0 45.9 23.5 11.7 4.3 .3 17.6 16.1 29.4 27 28 Foreign funds............................... 3.7 2.3 2.6 9.3 -8.4 -3.3 14.4 4.2 -3.4 -13.5 -7.6 1.0 4.4 4.1 28 29 Treasury balances........................ -.5 .2 -.2 * 2.9 2.2 -2.1 2.1 3.4 2.4 -1.6 6.1 -3.9 4.8 29 30 Insurance and pension reserves. 13.2 11.8 11.2 10.3 13.5 8.2 9.7 10.9 13.0 14.1 7.6 8.8 7.7 13.6 30 31 Other, net...................................... 4.2 -.3 8.4 15.1 * 1.8 23.9 6.2 -1.3 1.2 2.0 1.6 8.0 7.0 31 Private domestic nonfinancial investors 32 Direct lending in credit mkts............. 18.9 5.8 21.7 42.7 7.0 4.2 36.4 48.7 29.5 -15.0 -13.3 21.2 8.6 27.8 32 33 U.S. Government securities........... 8.8 -1.3 7.7 16.0 -7.6 -13.1 14.6 17.4 1.8 -17.0 -24.7 -1.6 -3.8 15.2 33 34 Municipal securities........................ 2.7 -2.0 .3 6.7 1.4 5.7 6.2 7.2 3.8 -1.1 5.3 6.1 4.8 5.4 34 35 Corporate and foreign bonds........ 2.5 5.3 5.1 7.6 10.4 8.6 6.0 9.1 8.6 12.1 10.3 6.8 4.1 3.4 35 36 Commercial paper........................... 2.0 1.5 4.4 8.7 -1.2 -2.1 6.1 11.2 10.9 -13.3 -7.8 3.7 .5 -.5 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 3.0 4.3 37 38 Deposits and currency....................... 23.1 51.5 48.6 5.3 63.9 95.7 6.5 4.1 35.0 92.8 110.3 80.9 104.6 109.7 38 39 Time and savings accounts........... 20.3 39.3 34.0 -2.2 56.2 81.3 5.2 -9.7 31.1 81.4 92.4 70.1 91.4 81.4 39 40 Money................................................ 2.8 12.2 14.6 7.6 7.7 14.4 1.3 13.8 3.9 11.4 17.9 10.7 13.2 28.3 40 41 Demand deposits......................... .8 10.1 12.2 4.7 4.2 11.0 -.2 9.6 .9 7.4 13.4 8.4 8.6 24.3 41 42 2.0 2.1 2.4 2.8 3.5 3.4 1.5 4.2 3.0 4.0 4.5 2.3 4.7 4.0 42 43 Total of credit market instr., de- 42.1 57.3 70.3 48.0 70.9 99.9 43.0 52.8 64.5 77.8 96.9 102.0 113.2 137.5 43 Memoranda: 44 Public support rate (in per cent) 17.6 13.9 12.3 18.2 29.5 28.9 11.0 26.8 28.8 30.0 28.9 29.0 14.2 9.1 44 45 Pvt. fin. intermediation (in per cent)........................................... 73.7 90.8 83.5 67.6 93.1 100.2 73.6 60.4 74.2 110.3 114.0 89.8 98.8 95.4 45 46 2.1 4.3 2.9 9.0 1.8 23.1 11.8 6.2 4.9 -1.3 19.1 27.1 9.8 15.7 46 Corporate equities not included above 1 Total net issues..................................... 4.6 4.9 4.0 10.3 9.5 14.8 8.2 12.4 9.3 9.7 13.1 16.5 12.9 11.8 1 2 Mutual fund shares......................... 3.7 2.6 4.7 5.5 2.6 1.3 6.3 4.8 3.1 2.0 .3 2.3 -.3 * 2 3 Other equities................................... .9 2.3 -.7 4.7 6.9 13.5 1.9 7.6 6.1 7.6 12.7 14.2 13.3 11.8 3 4 Acq. by financial institution............. 6.0 8.4 9.5 12.8 11.4 19.1 12.1 13.5 12.5 10.2 20.7 17.5 15.3 12.5 4 5 Other net purchases............................ -1.3 -3.5 -5.5 -2.5 -1.9 -4.4 -3.9 -1.1 -3.3 -.5 -7.7 -1.1 -2.3 -.8 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. Credit market funds raised by Federally sponsored credit agencies. includes mortgages. Included below in lines 13 and 33. Includes all GNMA-guaranteed 39+41. See line 25. security issues backed by mortgage pools. 42. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. Also sum of lines 27 through 41 excluding subtotals. 44. Line 2/line 1. 17. Includes farm and commercial mortgages. 45. Line 19/line 12. 25. Lines 39 + 41. 46. Lines 10 plus 28. 26. Excludes equity issues and investment company shares. Includes line 18. Corporate equities 28. Foreign deposits at commercial banks, bank borrowings from foreign Line Digitized for FRAbrSanEcRhe s, and liabilities of foreign banking agencies to foreign af­ 1 and 3 Includes issues by financial institutions. filiates. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. BALANCE OF PAYMENTS □ MARCH 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1971 1972 Line Credits-f, debits — 1970 1971 II III IV I II III* Summary—Seasonally adjusted 1 2,164 -2,689 -1,012 -472 -1,494 -1,687 -1,948 -1,588 2 41,963 42,770 10,710 11,479 9,564 11,791 11,445 12,307 3 -39,799 -45,459 -11,722 -11,951 -11,058 -13,478 -13,393 -13,895 4 -3,374 -2,894 -698 -724 -807 -884 -958 -830 5 Travel and transportation, net..................................................... -2,061 -2,432 -625 -606 -703 -679 -657 -606 6 Investment income, net 2............................................................... 6,259 7,995 2,191 1,711 2,295 1,862 1,770 1,924 7 U.S. direct investments abroad............................................ 7,920 9,455 2,464 2,163 2,770 2,307 2,365 2,564 8 Other U.S. investments abroad............................................ 3,506 3,443 833 852 881 942 822 857 9 Foreign investments in the United States......................... -5,167 -4,903 -1,106 -1,304 -1,356 -1,387 -1,417 -1,497 10 Other services, net........................................................................... 574 748 180 182 172 200 192 204 11 3,563 727 36 91 -537 -1,188 -1,601 -896 12 Remittances, pensions, and other transfers.............................. -1,474 -1,529 -369 -402 -404 -389 -383 -357 13 Balance on goods, services, and remittances...................................... 2,089 -802 -333 -311 -941 -1,577 -1,984 -1,253 14 U.S. Government grants (excluding military)........................... -1,734 -2,045 -477 -544 -588 -601 -535 -538 15 356 -2,847 -810 -855 -1,529 -2,178 -2,519 -1,791 16 U.S. Government capital flows excluding nonscheduled repayments, net 4......................................................................... -1,829 -2,117 -681 -442 -385 -330 -269 -477 17 Nonscheduled repayments of U.S. Government assets........... 244 225 102 72 48 88 17 7 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. -433 -486 -5 -188 -196 -101 157 189 19 Long-term private capital flows, net........................................... -1,398 -4,079 -1,605 -1,883 330 -1,081 750 -144 20 U.S. direct investments abroad............................................ -4,400 -4,765 -1,277 -1,410 -788 -1,266 -100 -1,132 21 Foreign direct investments in the United States............... 1,030 -67 1 -374 181 -360 350 259 22 Foreign securities.................................................................... -942 -909 -372 -249 73 -393 -354 227 23 U.S. securities other than Treasury issues......................... 2,190 2,282 196 606 921 1,067 956 676 24 Other, reported by U.S. banks............................................ 198 -814 -214 -308 -165 22 -269 -409 25 Other, reported by U.S. nonbanking concerns................. 526 194 61 -148 108 -151 167 235 26 Balance on current account and long-term capital 4.......................... -3,059 -9,304 -2,999 -3,296 -1,732 -3,602 -1,864 -2,216 27 Nonliquid short-term private capital flows, net....................... -482 -2,386 -315 -883 -654 -508 592 -542 28 Claims reported by U.S. banks............................................ -1,023 -1,807 -91 -892 -685 -587 467 -408 29 Claims reported by U.S. nonbanking concerns............... -361 -555 -145 -147 -130 -17 103 -118 30 Liabilities reported by U.S. nonbanking concerns........... 902 -24 -79 156 161 96 22 -16 31 Allocations of Special Drawing Rights (SDR’s).................... 867 717 179 179 179 178 178 177 32 Errors and omissions, net............................................................. -1,174 -11,031 -2,586 -5,380 -2,122 800 -1,141 -1,872 33 Net liquidity balance................................................................................ -3,851 -22,002 -5,721 -9,380 -4,329 -3,132 -2,235 -4,453 34 Liquid private capital flows, net................................................... -5,988 -7,763 -745 -2,551 -1,619 -119 1,386 -171 35 Liquid claims............................................................................ 252 -1,072 95 -555 -340 — 673 197 -567 36 Reported by U.S. banks................................................ -99 -566 32 -392 -112 -533 312 -449 37 Reported by U.S. nonbanking concerns................... 351 -506 63 -163 -228 -140 -115 -118 38 Liquid liabilities..................................................................... -6,240 -6,691 -840 -1,996 -1,279 554 1,189 396 39 To foreign commercial banks...................................... -6,508 -6,908 -892 -1,775 -1,313 476 *980 282 40 To international and regional organizations............ 181 682 198 149 55 25 —72 -34 41 Toother foreigners......................................................... 87 -465 -146 -370 -21 53 281 148 42 Official reserve transactions balance..................................................... -9,839 -29,765 -6,466 -11,931 -5,948 -3,251 -849 -4,624 Financed by changes in: 43 Liquid liabilities to foreign official agencies.............................. 7,637 27,615 5,975 10,919 5,774 44 Other readily marketable liabilities to foreign official agen­ | 2,542 1,082 4,601 cies................................................................................................... -810 -539 -160 -173 -5 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt.................................................................... 535 341 -8 -9 366 280 -2 78 46 U.S. official reserve assets, net..................................................... 2,477 2,348 659 1,194 -187 429 -231 -55 47 Gold........................................................................................... 787 866 456 300 1 544 3 48 SDR’s........................................................................................ -851 -249 17 -29 -182 -178 -171 -177 49 Convertible currencies........................................................... 2,152 381 -66 72 2 64 -245 134 50 Gold tranche position in IMF............................................. 389 1,350 252 851 -8 -1 185 -15 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)........................................................................ 2,586 3,153 778 701 939 1,205 797 1,323 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. 2,885 3,116 (5) (5) (5) (5) (5) (5) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)......................... 434 498 (5) (5) (5) (5) (5) (5) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 — 1970 1971 II III IV I II III* Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance............................................................................ -4,718 -22,719 -5,900 -9,559 -4,508 -3,310 -2,413 -4,630 -10,706 -30,482 -6,645 -12,110 -6,127 -3,429 -1,027 -4,801 Balances not seasonally adjusted Balance on goods and services (line ll).......................................... 3,563 727 251 -1,330 296 -791 -1,463 -2,227 Balance on goods, services, and remittances (line 13)................. 2,089 -802 -131 -1,743 -104 -1,159 -1,859 -2,595 Balance on current account (line 15)................................................ 356 -2,847 -655 -2,246 -657 -1,789 -2,441 -3,093 Balance on current account and long-term capital 4 (line 26)... -3,059 -9,304 -3,466 -4,672 93 -3,603 -2,271 -3,554 Balances including allocations of SDR’s: Net liquidity (line 33)................................................................... -3,851 -22,002 -6,612 -10,066 -3,466 -2,369 -3,043 -5,274 Official reserve transactions (line 42)........................................ -9,839 -29,765 -6,462 -12,703 -5,882 -2,506 -741 -5,544 Balances excluding allocations of SDR’s: Net liquidity................................................................................... -4,718 -22,719 -6,612 -10,066 -3,466 -3,079 -3,043 -5,274 Official reserve transactions........................................................ -10,706 -30,482 -6,462 -12,703 -5,882 -3,216 -741 -5,544 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, Bureau of Eco­ nomic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports * Imports 2 Trade balance 1970 1971r 1972 r 1973 1970 1971 *■ 1972r 1973 1970 1971 r 1972 r 1973 Month: Jan.... 3,406 3,601 4,074 4,977 3,222 3,599 4,435 5,281 184 2 — 361 -304 Feb... 3,546 3,695 3,824 3,279 3,564 4,473 267 130 — 649 Mar... 3,375 3,790 3,869 3,219 3,628 4,515 156 160 -646 Apr... 3,410 3,631 3,817 3,262 3,774 4,413 148 -143 -596 May.. 3,661 3,746 3,885 3,367 3,908 4,482 324 -161 -597 June.. 3,727 3,672 3,971 3,265 4,037 4,468 462 -365 -497 July... 3,704 3,573 4,052 3,254 3,832 4,565 450 -259 -513 Aug... 3,591 3,667 4,200 3,346 3,913 4,726 245 -247 -527 Sept... 3,553 4,487 4,177 3,423 4,179 4,606 130 308 -428 Oct... 3,688 2,669 4,318 3,498 3,469 4,736 190 -800 -418 Nov... 3,499 3,196 4,473 3,428 3,456 5,136 71 -260 -664 Dec... 3,569 3,881 4,561 3,401 4,169 5,002 168 -288 -441 Qu arter: I 10,327 11,086 11,767 9,720 10,792 13,423 607 294 -1,656 I I 10,798 11,049 11,673 9,864 11,719 13,363 933 -670 -1,690 III... . 10,848 11,727 12,429 10,023 11,924 13,897 816 -197 -1,468 IV.... 10,756 9,746 13,352 10,327 11,094 14,874 425 -1,348 -1,522 Year3... 42,659 43,549 49,208 39,952 45,563 55,555 2,707 -2,014 -6,347 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Sum of unadjusted figures. Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. Note.—Bureau of the Census data. Details may not add to totals be­ 2 General imports including imports for immediate consumption plus cause of rounding. entries into bonded warehouses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 U.S. GOLD TRANSACTIONS □ MARCH 1973 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 until May 8, 1972, and at $38 per fine troy ounce thereafter) 1972 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 I II III IV Western Europe: -82 -55 -100 -25 4 -40 -83 -58 -110 -518 -405 -884 -601 600 325 -129 -473 -225 500 -1 -2 -2 -2 -52 41 2 200 -80 -60 -85 -209 -76 -60 -35 -19 -50 -25 -i30 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 329 618 150 80 -879 -835 200 Other...................................... 1 -6 -35 -49 16 -47 U -29 -13 Total.............................. -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada .................................... 200 150 50 Latin American republics: Argentina ............................ -30 -39 -25 -25 -28 Brazil...................................... 72 54 25 -3 * -23 Colombia............................. 10 29 7 * -1 Venezuela.............................. -25 Other...................................... -11 -9 -13 -6 11 -40 -29 -80 -5 Total.............................. 32 56 17 -41 9 -65 -54 -131 -5 Asia: Iraq......................................... -10 -4 -21 -42 Japan...................................... -56 -119 Lebanon................................ -11 -11 -1 -95 -35 Malaysia................................ -34 -10 Philippines............................ 25 20 * -1 9 40 -4 -2 -50 Singapore............... -81 11 -30 Other...................................... -13 -6 -14 -14 -22 -75 -9 2-91 39 -3 -3 Total.............................. 12 3 -24 -86 -44 -366 42 -213 -38 -3 -3 All other.................................... -36 -7 -16 -22 3-166 3-68 -1 -81 -6 Total foreign countries........... -392 -36 -1,322 -608 -1,031 -1,118 957 4 — 631 -845 -3 -3 Intl. Monetary Fund ^............ «-225 177 22 -3 10 — 156 -22 -544 -544 .................. -392 -36 -1,54G7rand- 4to3t1al-1,009 -1,121 967 —787 -867 -547 -544 -3 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. Treasury 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

MARCH 1973 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i e n t F r io v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l2 ld st T o r c e k a 1 sury v c fo C u e c r i r r o e e t r i s i e n b g 5 n ­ l n e ­ p R I o e M s s i i n e t F r io v 3 n e SDR’s4 1959... 21,504 19,507 19,456 1,997 1972 1960... 19,359 17,804 17,767 1,555 Feb.... 12,330 9.662 9.588 276 582 1,810 1961... 18,753 16,947 16,889 116 1,690 Mar.... 12,270 9.662 9.588 212 586 1,810 1962... 17,220 16,057 15,978 99 1,064 Apr.... 12,285 9,662 9,588 429 391 1,803 1963... 16,843 15,596 15,513 212 1,035 May... 913,345 910,490 910,410 469 9428 91,958 1964... 16,672 15,471 15,388 432 769 June... 13,339 10,490 10,410 457 434 1,958 July. . . 13,090 10,490 10.410 203 439 1.958 1965... 15,450 613,806 613,733 781 6 863 Aug---- 13,124 10,488 10.410 234 444 1.958 1966... 14,882 13,235 13,159 1,321 326 Sept.... 13,217 10,487 10,410 323 449 1,958 1967... 14,830 12,065 11,982 2,345 420 Oct___ 13,313 10,487 10,410 414 454 1,958 1968... 15,710 10,892 10,367 3,528 1,290 Nov.... 13,307 10,487 10,410 403 459 1,958 1969... 716,964 11,859 10,367 72,781 2,324 Dec.... 13,151 10,487 10,410 241 465 1,958 1970... 14,487 11,072 10,732 629 1,935 851 1973 1971... 812,167 10,206 10,132 8 276 585 1,100 Jan.... 13,054 10,487 10,410 140 469 1,958 1972... 13,151 10,487 10,410 241 465 1,958 Feb.... 12,926 10,487 10,410 8 473 1,958 1 Includes (a) gold sold to the United States by the IMF with the right became effective on Feb. 23, 1966. In figures published by the IMF from of repurchase, and (b) gold deposited by the IMF to mitigate the impact June 1965 through Jan. 1966, this gold subscription was included in the on the U.S. gold stock of foreign purchases for the purpose of making U.S. gold stock and excluded from the reserve position. gold subscriptions to the IMF under quota increases. For corresponding 7 Includes gain of $67 million resulting from revaluation of the German 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 period) U.S. transactions with IMF Transactions by re U se .S rv . e other countries Period with IMF position in IMF P s t u a d io y b o m n s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F 1 T t c f i r o c u o a i r r n e n e r s s s i e g a n 2 i n c n ­ ­ I i M d n o c F l o l a m n rs e e t P d u o r l c o l h a f a r s s e 3 s pu d r o R c i l h n l e a a ­ r s s es c T ha o n ta g l e P q e U r u o . o c S f e t . a n t p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4.834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 6712 150 25 -854 741 1,929 4,765 71 1,935 1971. 1,362 -28 -24 40 1,350 6,115 91 585 1972. ’ 7*54i* 200 -47 694 6,810 94 465 1972—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 94 444 Sept.. -6 -6 6,825 94 449 Oct.. -5 -5 6,820 94 454 Nov.. -4 -4 6,816 94 459 Dec.. -6 -6 6,810 94 465 1973—Jan... -4 -4 6,806 94 469 Feb.. -5 -5 6,801 93 473 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 6. U.S. LIQUID AND OTHER 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 ties to p E e o r n i f o d d Total a a c t I f r r g t r M i a i o s o o n i l m n d F n s s g ­ ! Total t p l S i i t o e a h e s r b r o t m i e r r l e t i d ­ ­ ­ M T U a a r b e r .S a l k e s . e . t ­ N v k o e e U c n r t o t . a m S i n b b . ­ l a l e e r­ N n v k - T o o e U e r n n r t e t . a c m i S a b b o s . l a l n . e e r ­ ­ m r l O i e a a a a t b b r d h k l i i e e l e l i r y ­ t­ a t m L o l b b i i e a a t r q c i r o b n e o c u i k a s i m l i a d s i d ­ l ­ 6 Total p t l S i i t o e a h e s r b r o t m i e r r l e t i d ­ ­ ­ M T U a a r b e r .S a l k e s . e . t­ o a m g n r n t i g i o a o d o n a r n n n t y r n i e a ­ e , i l ­ ­ ­ ba b i n n y k s n b o o a t n n e d d s s 3 T bo a re n n a d d s s . b n o a o n n te d d s s 4 ties5 ba b i n n y k s n b o o a te n n s d d 3 s ,7 zations 8 U.S. notes U.S. 195 9 19,428 500 10,120 9,154 966 4,678 2,940 2,399 541 1,190 1960 9........................... / \ 2 2 0 i; ,9 0 9 27 4 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 4 4 . . 8 8 1 1 8 8 2 2 , , 7 7 7 8 3 0 2 2 . . 2 2 3 30 0 5 5 4 5 3 0 1 1 , ,5 5 4 2 1 5 1961 9........................... \ f 2 2 2 2 ; ,8 9 5 3 3 6 8 8 0 0 0 0 1 1 1 1 . . 8 8 3 3 0 0 1 1 0 0 . . 9 9 4 4 0 0 8 8 9 9 0 0 5 5 , , 4 4 8 0 4 4 2 2 , , 8 8 7 7 1 3 2 2, , 3 35 5 5 7 5 51 1 6 6 1 1 . . 9 9 4 4 8 9 1962 9........................... I24 268 800 12,948 11,997 751 200 5.346 3.013 2.565 448 2,161 \24,268 800 12,914 11,963 751 200 5.346 3.013 2.565 448 2,195 1963 9........................... /26.433 800 14,459 12.467 1,217 703 63 9 5.817 3,397 3.046 351 1,960 126,394 800 14.425 12.467 1,183 703 63 9 5.817 3,387 3.046 341 1,965 1964 9........................... /29,313 800 15,790 13,224 1.125 1.079 204 158 7,271 3,730 3,354 376 1.722 I29;364 800 15.786 13,220 1.125 1.079 204 158 7,303 3,753 3,377 376 1.722 196 5 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9........................... J 1 3 31 1 , > , , 1 0 4 2 5 0 1 1 , , 0 0 1 1 1 1 1 1 4 4, , 8 8 4 9 1 6 1 1 2 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 25 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 . . 2 2 7 7 1 2 3 3 . . 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 9........................... J 1 3 3 5 5 , , , , 8 6 1 6 9 7 1 1 . . 0 0 3 3 3 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4 , , 0 0 3 2 4 7 9 9 0 0 8 8 7 7 1 1 1 1 7 7 4 4 1 1 1 1 . . 8 8 0 0 7 7 1 1 1 1 , , 2 0 0 8 9 5 4 4, , 6 6 7 8 8 5 4 4 , , 1 1 2 2 7 0 5 5 5 5 8 8 6 6 9 7 1 7 1968 9........................... / 38, ,687 1.030 17,407 11.318 529 701 2.518 2.341 14.472 5,053 4.444 609 725 138,,473 1.030 17,340 11.318 462 701 2.518 2.341 14.472 4,909 4.444 465 722 1969 9........................... J45,,755 1.019 15,975 11,054 346 10 555 102,515 1.505 23,638 4,464 3,939 525 659 145,,914 1.019 15,998 11,077 346 555 2,515 1.505 23,645 4,589 4,064 525 663 1970—Dec. 9 / 1 4 46 7 , >, , 0 9 0 6 9 0 5 5 6 66 6 2 2 3 3 . , 7 77 8 5 6 1 1 9 9 . . 3 33 3 3 3 2 3 9 0 5 6 4 4 2 2 9 9 3 3 . . 0 0 2 2 3 3 6 69 9 5 5 1 1 7 7 , , 1 1 6 3 9 7 4 4 , , 6 6 7 0 6 4 4 4 , . 0 0 2 3 9 9 6 5 4 65 7 8 8 4 4 6 4 1971—Dec..ii.............. ( 1 6 6 7 7 , , 6 8 8 1 1 0 5 5 4 44 4 5 5 1 0, , 6 2 5 0 1 9 3 3 9 9 . , 6 0 7 18 9 1 1 . . 9 9 5 5 5 5 6 6 , .0 0 9 6 3 0 3 3 , . 3 4 7 4 1 1 1 14 4 4 4 1 1 0 0 , , 2 9 6 5 2 0 4 4 , , 1 14 3 1 8 3 3 , , 6 6 9 9 1 4 4 4 4 4 7 7 1 1 , , 5 5 2 2 8 4 1972—Ja.......................n 69,066 544 51,514 39,581 2,260 6.094 3.441 138 11,171 4,153 3,763 390 1,684 Feb.'................ 69,998 52,799 40.679 2,399 6.094 3.441 186 11,373 4,204 3,812 392 1,622 Mar.r............... 71,013 53,806 40,980 2,644 6.094 3.723 365 11,464 4,194 3,818 376 1,549 Apr.'................ 72, 215 54,093 38,723 2,668 8.594 3.723 385 12,433 4,242 3,853 389 1,447 May '................ 72, 113 53,579 37,850 3,018 8.594 3.723 394 12,821 4,284 3,889 395 1,429 June '............... 74, 000 54,604 38,603 3,292 8.594 3.723 392 13,444 4,475 4,103 372 1,477 July'................. 77, 473 59.426 39,787 3,516 12.094 3.647 382 12,127 4,492 4,122 370 1,428 Aug.'............... 79, 454 60,601 40,611 3,881 12.094 3.647 368 12,912 4,418 4.040 378 1,523 Sept.'............... 79, 731 60,070 39,628 4,117 12.095 3,804 426 13,585 4,630 4,241 389 1,446 Oct.'................. 81, 422 60,926 40,261 4,457 12.097 3.651 460 14,180 4,823 4,417 406 1,493 Nov................... 82, 373 61,122 40,040 4,834 12.098 3.651 499 14,781 4,745 4,322 423 1,725 Dec.?................ 82,900 61,469 39,942 5,236 12,108 3,639 544 14,855 4,950 4,525 425 1,626 1973—Jan. ? 82,052 60,753 38,492 5,798 12,110 3,780 573 14,819 4,890 4,465 425 1,590 1 Includes (a) liability on gold deposited by the IMF to mitigate the shown for the preceding date; figures on second line are comparable with impact on the U.S. gold stock of foreign purchases for gold subscriptions those shown for the following date. to the IMF under quota increases, and (b) U.S. Treasury obligations at 10 Includes $101 million increase in dollar value of foreign currency cost value and funds awaiting investment obtained from proceeds of sales liabilities resulting from revaluation of the German mark in Oct. 1969 as of gold by the IMF to the United States to acquire income-earning assets. follows: liquid, $17 million, and nonliquid, $84 million. 2 Includes BIS and European Fund. 11 Data on the second line differ from those on first line because cer­ 3 Derived by applying reported transactions to benchmark data; tain accounts previously classified as “official institutions” are included breakdown of transactions by type of holder estimated 1959-63. with “banks”; a number of reporting banks are included in the series for 4 Excludes notes issued to foreign official nonreserve agencies. the first time; and U.S. Treasury securities payable in foreign currencies 5 Includes long-term liabilities reported by banks in the United States issued to official institutions of foreign countries have been increased in and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ value to reflect market exchange rates as of Dec. 31, 1971. porations. 6 Includes short-term liabilities payable in dollars ta commercial banks Note.—Based on Treasury Dept, data and on data reported to the abroad and short-term liabilities payable in foreign currencies to commer­ Treasury Dept, by banks and brokers in the United States. Data correspond cial banks abroad and to “other foreigners.” generally to statistics following in this section, except for the exclusion 7 Includes marketable U.S. Treasury bonds and notes held by commer­ of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign cial banks abroad. official nonreserve agencies, the inclusion of investments by foreign 8 Principally the International Bank for Reconstruction and Develop­ official reserve agencies in debt securities of U.S. Federally-sponsored ment and the Inter-American and Asian Development Banks. From Dec. agencies and U.S. corporations, and minor rounding differences. Table 1957 through Jan. 1972 includes difference between cost value and face excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters value of securities in IMF gold investment account. of credit and non-negotiable, non-interest-bearing special U.S. notes held 9 Data on the two lines shown for this date differ because of changes by other international and regional organizations. in reporting coverage. Figures on first line are comparable with those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 Canada A re m 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 2 196 7 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 4,713 407 414 123,775 13,615 2.951 1,681 4,708 407 413 1971 5............ /51,209 30,010 3.980 1.414 14,519 415 871 \50,651 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.... 53,806 31,588 4,052 1,323 15,191 457 1,195 Apr__ 54,093 31,358 4,181 1,492 15,249 477 1,336 May... 53,579 30,935 4,316 1,476 14,967 458 1,427 June... 54,604 31,910 4,486 1,473 14,572 533 1,630 July... 59,426 36,380 4,446 1,393 14,727 572 1,908 Aug.r.. 60,601 36,612 4,463 1.415 15,352 652 2,107 Sept.r.. 60,070 35,985 4,469 1,363 15,291 685 2,277 Oct.r. . 60,926 35,078 4,468 1,468 16,805 616 2,491 Nov.... 61,122 34,608 4,289 1,439 17,372 694 2,720 Dec.®.. 61,469 34,192 4,279 1,721 17,542 771 2,964 1973—Jan.®.. 60,753 34,152 4,201 1,717 16,996 673 3,014 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 9 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. Treasury 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 debt securities of U.S. the first time; and U.S. Treasury liabilities payable in foreign currencies Federally-sponsored agencies and U.S. corporations. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 6 Payable in dollars IMF Deposits End of period Total i Total Deposits b T i r ll 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 f r o e 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 r l c e U l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t r o h b m r e . t 4 r ­ 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 ».......... / \ 5 5 5 5 . , 4 4 0 3 4 0 5 5 5 5 , , 0 0 1 3 8 8 1 6 0 , , 4 3 6 99 0 4 5 , , 2 2 1 09 7 3 3 3 3, , 0 0 2 25 5 1 6 1 , , 3 3 8 3 5 6 3 38 9 6 2 4 4 0 0 0 0 1 1 , , 3 36 7 8 2 7 7 3 3 1 1 9 9 2 2 2 2 1 10 0 8 89 9 2 6 1972—Jan... 56,442 56,009 6,157 4,223 33,902 11,727 432 400 1,526 86 203 338 899 Feb.. 57,329 56,856 6,019 4,334 34,490 12,013 473 1,465 85 167 295 918 Mar.. 57,654 57,138 5,991 4,431 34,929 11,787 516 1,391 88 189 275 839 Apr.., 56,287 55,793 6,460 4,502 32,324 12,507 494 1,278 87 198 177 817 May., 55,828 55,329 6,570 4,653 31,498 12,608 499 1,268 84 186 198 800 June.. 57,466 56,947 7,217 4,830 31,871 13,029 519 1,316 85 238 212 782 July.. 57,302 56,823 7,320 4,746 32,881 11,876 479 1,266 101 262 142 761 Aug.. 58,884 58,429 6,631 4,867 33,745 13,186 455 1,322 65 267 172 818 Sept.. 58,687 58,208 6,931 4,939 32,714 13,625 478 1,233 79 224 145 785 Oct... 60,138 59,600 7,075 5,146 33,071 14,309 538 1,281 62 210 204 804 Nov.. 60,654 60,112 7,012 5,379 32,774 14,946 543 1,512 95 242 380 794 Dec.® 60,734 60,238 8,297 5,630 31,845 14,467 496 1,412 86 201 326 800 1973—Jan.®. 59,153 58,628 7,461 5,550 30,147 15,470 525 1,377 118 172 295 792 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions9 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d p osi T ts ime2 T b c i c r l e U e l a r s a t t . s e S i a f u s . n i 3 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 n r i u e n c r i i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e e l a s a r t . t e S s i a s u f . n i r 3 ­ d y s O t l h e i t a o r h b m r e t . ­ 4 r c P u f a r o r y r e i e a n n i b g c 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......... \ f 4 4 0 0 , , 5 4 4 9 1 9 1 1 5 5 , , 7 7 1 26 6 5 5 , , 7 8 6 0 5 2 1 1 3 3 . . 5 5 1 1 1 1 5 5 , , 1 1 3 3 8 3 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 5 2 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 1 4 4 8 8 19718.......... ' k 5 5 3 3 , , 6 6 3 6 2 2 1 6 0 , , 3 3 8 26 7 4 5 , , 0 0 2 1 5 7 3 3 2 2. . 4 4 1 1 5 5 1 5 0 , , 4 4 8 4 9 3 3 3 8 9 6 2 3 3 9 9 . , 6 0 7 1 9 8 1 1 , , 6 3 2 2 0 7 2 2, ,5 03 0 9 4 3 3 2 2 . . 3 3 1 1 1 1 3 3 , ,1 08 7 6 6 1 1 5 65 8 1972—Jan... 54,515 6,071 4,020 33,164 10,828 432 39,581 1,185 2,024 33,045 3,161 166 Feb.., 55,864 5,934 4,167 34,195 11,095 473 40.679 1,099 2,119 34,092 3,204 167 Mar.. 56,262 5,903 4,242 34,654 10,947 516 40,980 1,128 2,148 34,548 2,990 167 Apr.. 55,009 6,373 4,304 32,147 11,691 494 38,723 1,246 2,270 32,047 2,993 167 May. 54,560 6,486 4,468 31,300 11,808 499 37,850 1,224 2,379 31,209 2,871 167 June., 56,150 7,132 4,592 31,659 12,247 519 38,603 1,536 2,469 31,573 2,858 167 July.. 56,036 7,219 4,485 32,738 11,116 479 39,787 1,521 2,377 32,655 3,064 170 Aug.. 57,563 6,566 4,600 33,573 12,368 455 40,611 1,308 2,412 33,499 3,220 171 Sept.. 57,454 6,851 4,716 32,569 12,840 478 39,628 1,239 2,454 32,497 3,268 171 Oct... 58,858 7,012 4,935 32,867 13,505 538 40,261 1,335 2,564 32,794 3,398 171 Nov.. 59,143 6,917 5,137 32,394 14,152 543 40,040 1,271 2,638 32,315 3,645 171 Dec.* 59,322 8,211 5,429 31,518 13,667 496 39,942 1,583 2.858 31,448 3,881 171 1973—Jan.®. 57,776 7,342 5,378 29,852 14,678 525 38,492 1,405 2.858 29,779 4,279 171 To banks 10 To other foreigners To banks Payable in dollars and other . foreigners: End of period Total Payable in Total Deposits T bi r l e U ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 c c e a rt t i e f s i­ liab.4 Demand Time2 c c e a r t ti e f s i­ liab.4 1969............ 27.709 23,419 16,756 1,999 4,644 4,064 1,711 1,935 107 312 226 21,166 16,917 12,376 1,326 3,202 4,029 1,688 1,886 131 325 220 19707 ......... 21,208 16,949 12,385 1,354 3,197 4.039 1,688 1,895 131 325 220 1971—8 . 13,953 10,034 7,047 850 2,130 3,691 1,660 1,663 96 274 228 14,644 10,722 3,400 320 6,995 3,694 1,660 1,666 96 271 228 1972—Jan... 14,935 10,904 3,183 335 7,382 3,764 1,703 1,660 116 285 267 Feb.., 15,184 11,067 3,121 349 7,593 3,811 1,714 1,699 99 299 306 Mar.. 15.283 11,115 3,093 359 7,658 3,818 1,682 1,735 102 299 349 Apr.. 16,286 12,106 3,372 352 8,379 3,852 1,756 1,682 96 318 327 May. 16.710 12,488 3,569 307 8,609 3,890 1,693 1,781 88 328 333 June. 17,547 13,092 3,797 310 8,980 4,103 1,800 1,814 81 409 353 July.. 16,249 11,817 3,877 286 7,649 4,122 1,821 1,821 77 402 309 Aug.. 16,951 12,627 3,555 337 8,729 4.039 1,702 1,851 67 419 284 Sept.. 17,826 13,277 3,837 353 9,083 4,241 1,776 1,909 68 489 308 Oct... 18,597 13,813 3,802 439 9,569 4,417 1,875 1,933 70 538 368 Nov.. 19,103 14,409 3,940 486 9,979 4,322 1,706 2,014 75 528 372 Dec.® 19,380 14,529 4,673 546 9,305 4,525 1,954 2,025 65 481 325 1973—Jan.*. 19.284 14,465 4,159 450 9,851 4,465 1,778 2,071 68 548 354 1 Data exclude “holdings of dollars” of the IMF. 8 Data on second line differ from those on first line because (a) those 2 Excludes negotiable time certificates of deposit, which are included liabilities of U.S. banks to their foreign branches and those liabilities of in “Other.” U.S. agencies and branches of foreign banks to their head offices and 3 Includes nonmarketable certificates of indebtedness issued to official foreign branches, which were previously reported as deposits, are included institutions of foreign countries. in “Other short-term liabilities”; (b) certain accounts previously classified 4 Principally bankers’ acceptances, commercial paper, and negotiable as “Official institutions” are included in “Banks”; and (c) a number of time certificates of deposit. See also note 8(a). reporting banks are included in the series for the first time. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of 9Foreign central banks and foreign central govts, and their agencies, gold by the IMF to the United States to acquire income-earning assets. and Bank for International Settlements and European Fund. Upon termination of investment, the same quantity of gold was reac­ i o Excludes central banks, which are included in “Official institutions.” quired by the IMF. 6, Principally the International Bank for Reconstruction and Develop­ Note.—“Short term” refers to obligations payable on demand or having ment and the Inter-American Development Bank. an original maturity of 1 year or less. For data on long-term liabilities Includes difference between cost value and face value of securities in reported by banks, see Table 10. Data exclude the “holdings of dollars” IMF gold investment account. of the International Monetary Fund; these obligations to the IMF consti­ 7 Data on the two lines shown for this date differ because of changes in tute contingent liabilities, since they represent essentially the amount of reporting coverage. Figures on the first line are comparable in coverage dollars available for drawings from the IMF by other member countries. with those shown for the preceding date; figures on the second line are Data exclude also U.S. Treasury letters of credit and non-negotiable, noncomparable with those shown for the following date. interest-bearing special U.S. notes held by the Inter-American Develop­ ment Bank and the International Development Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 9. SHORTTERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1971 1972 1973 Area and country Dec. Apr. May June July Aug. Sept. Oct. Nov. Dec.? Jan.? Europe: Austria...................................................... 254 276 283 254 261 272 310 279 245 272 268 Belgium-Luxembourg.............................. 701 866 864 962 1,159 1,188 1,175 1,159 1,070 1,092 975 Denmark.................................................. 168 218 203 215 216 209 194 217 254 284 321 Finland...................................................... 160 151 131 148 176 165 163 161 157 163 152 France....................................................... 3,150 3,043 3,027 3,514 4,324 4,317 4,422 4,501 4,630 4,442 4,433 Germany................................................... 6,596 5,482 5,500 6,483 6,601 6,459 5,819 5,809 5,514 5,347 5,034 Greece....................................................... 170 163 159 179 168 165 177 195 190 238 210 Italy.......................................................... 1,888 1,627 1,572 1,375 1,424 1,615 1,429 1,346 1,354 1,333 1,085 Netherlands.............................................. 270 878 861 847 1,488 1,514 1,490 1,460 1,442 1,468 1,356 Norway..................................................... 685 655 669 654 769 892 873 895 960 978 973 Portugal.................................................... 303 279 284 269 290 334 356 379 413 416 439 Spain......................................................... 203 219 206 231 222 192 246 230 223 256 231 Sweden...................................................... 792 981 1,010 1,044 1,036 1,033 1,068 1,059 1,081 1,184 1,189 Switzerland............................................... 3,249 2,942 2,709 2,626 3,623 3,493 3,538 3,073 2,838 2,862 2,924 Turkey...................................................... 68 36 40 44 55 59 72 71 96 97 109 United Kingdom..................................... 7,379 7,954 7,954 7,914 4,945 5,893 5,692 5,683 5,430 5,011 5,513 Yugoslavia................................................ 34 94 88 90 87 102 65 56 98 117 82 Other Western Europe1.......................... 1,391 1,386 1,388 1,367 1,389 1,391 1,446 1,428 1,479 1,483 1,464 14 9 13 10 18 10 14 16 10 11 14 Other Eastern Europe............................. 53 56 58 68 58 57 71 63 58 81 71 Total.................................................. 27,530 27,316 27,021 28,293 28,310 29,360 28,618 28,080 27,541 27,136 26,843 3,441 3,722 4,146 3,966 3,727 3,660 3,730 3,969 3,799 3,483 3,888 Latin America: Argentina.................................................. 441 507 465 459 457 500 523 532 547 631 632 342 543 576 628 620 550 591 601 564 605 643 Chile.......................................................... 191 132 134 136 136 136 134 135 135 137 132 Colombia.................................................. 188 184 190 190 196 212 199 192 185 210 210 Cuba.......................................................... 6 7 6 7 6 6 6 6 6 6 7 Mexico...................................................... 715 668 761 733 788 695 690 671 659 831 783 Panama.................................................... 154 155 185 154 165 154 156 151 150 167 193 Peru........................................................... 164 174 167 179 178 178 164 180 183 225 176 Uruguay.................................................... 108 118 122 117 121 136 137 125 133 140 140 Venezuela.................................................. 963 851 873 919 831 865 855 924 926 1,083 997 Other Latin American republics............. 655 695 661 669 673 701 662 747 751 834 839 Bahamas 2................................................ 656 444 440 486 384 416 461 576 576 535 293 Netherlands Antilles and Surinam......... 87 87 91 94 88 83 88 82 89 86 81 Other Latin America............................... 37 29 43 40 46 45 54 55 57 66 229 Total.................................................. 4,708 4,593 4,714 4,809 4,688 4,675 4,721 4,979 4,961 5,556 5,354 Asia: China, People’s Rep. of (China Mainland) 39 39 38 39 39 39 39 39 39 39 39 China, Republic of (Taiwan).................. 258 338 365 383 426 502 541 590 639 675 679 Hong Kong.............................................. 312 299 328 311 341 325 315 313 310 318 328 India.......................................................... 89 102 104 105 122 105 91 103 107 98 117 Indonesia.................................................. 63 89 87 113 98 117 115 114 107 108 98 Israel.......................................................... 150 145 148 140 128 119 134 127 141 177 144 Japan........................................................ 14,295 14,902 14,017 14,096 13,963 14,156 14,412 15,485 16,152 15,842 14,570 Korea........................................................ 196 178 196 198 206 235 208 218 201 192 221 Philippines................................................ 306 294 337 346 345 364 379 382 394 438 491 Thailand.................................................... 126 170 174 177 120 141 145 143 128 171 211 595 714 729 706 733 802 797 1,016 965 1,072 951 Total.................................................. 16,429 17,267 16,525 16,613 16,521 16,904 17,175 18,529 19,182 19,130 17,848 Africa: Egypt......................................................... 24 15 18 19 17 19 23 23 24 24 21 Morocco................................................... 9 11 8 11 11 9 9 10 11 12 9 South Africa............................................ 78 79 70 76 92 65 71 57 83 115 111 Zaire......................................................... 12 14 16 18 27 15 18 14 17 21 18 Other........................................................ 474 542 522 608 620 622 649 595 678 768 573 Total.................................................. 597 661 635 731 768 729 770 700 814 939 733 Other countries: Australia................................................... 916 1,405 1,482 1,692 1,977 2,187 2,372 2,553 2,801 3,027 3,046 All other.................................................... 42 43 39 45 45 47 69 47 46 51 65 Total.................................................. 957 1,448 1,520 1,737 2,022 2,234 2,441 2,600 2,846 3,078 3,111 Total foreign countries............................... 53,662 55,009 54,560 56,150 56,036 57,563 57,454 58,858 59,143 59,322 57,776 International and regional: International 3........................................... 1,327 808 802 819 793 831 746 794 1,030 951 930 Latin American regional......................... 298 333 329 347 300 335 329 320 316 307 298 Other regional4........................................ 143 138 137 149 173 155 158 167 166 155 149 Total.................................................. 1,768 1,278 1,268 1,316 1,266 1,322 1,233 1,281 1,512 1,412 1,377 55,430 56,287 55,828 57,466 57,302 58,884 58,687 60,138 60,654 60,734 59,153 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 9. SHORT TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) ________________________________ Supplementary data 5_________________________ 1970 1971 1972 1970 1971 1972 Area and country Area and country Dec. Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe; Other Asia—Cont.: Cyprus....................................... 10 7 2 2 3 Kuwait................................ 54 36 20 16 39 Iceland...................................... 10 10 11 9 9 Laos.................................... 5 2 3 3 2 Ireland, Rep. of........................ 41 29 16 15 17 Lebanon.............................. 54 60 46 60 55 Malaysia............................. 22 r28 23 25 54 Other Latin American republics: Pakistan.............................. 38 r28 33 58 59 Bolivia...................................... 69 59 55 53 87 Ryukyu Islands (incl. Okinawa) 6 18 39 29 53 Costa Rica............................... 41 43 62 70 92 Saudi Arabia...................... 106 41 79 80 344 Dominican Republic............... 99 90 123 91 114 Singapore............................ 57 43 35 45 77 Ecuador.................................... 79 72 57 62 121 Sri Lanka (Ceylon)............ 4 4 4 6 5 El Salvador.............................. 75 80 78 83 76 Syria.................................... 7 3 4 6 4 Guatemala................................ 100 97 117 123 132 Vietnam.............................. 179 161 159 185 135 Haiti......................................... 16 19 18 23 27 Honduras................................. 34 44 42 50 58 Other Africa: Jamaica................................... 19 19 19 32 41 Algeria................................ 17 13 23 31 32 Nicaragua................................ 59 47 50 66 61 Ethiopia (incl. Eritrea).... 19 12 11 29 57 Paraguay................................. 16 15 17 17 22 Ghana................................. 8 6 8 11 10 Trinidad & Tobago................ 10 14 10 15 20 Kenya................................. 38 13 9 14 23 Liberia................................. 22 21 23 25 30 Other Latin America: Libya................................... 195 91 274 296 393 British West Indies................. 33 38 32 23 36 Nigeria................................ 17 25 46 56 (7) Southern Rhodesia............ 1 2 2 2 2 Other Asia: Sudan.................................. 1 1 1 5 3 Afghanistan............................. 26 15 19 17 25 Tanzania............................. 9 10 6 6 11 Bahrain.................................... 32 35 21 18 (7) Tunisia................................ 7 6 9 7 10 Burma...................................... 4 3 10 5 2 Uganda............................... 8 5 3 10 7 Cambodia................................ 2 2 5 2 3 Zambia............................... 10 14 13 7 (7) Iran.......................................... r42 r67 59 88 93 Iraq.......................................... 11 7 10 9 10 All other: Jordan...................................... 14 3 2 2 4 New Zealand..................... 25 22 23 27 30 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Includes Bermuda through Dec. 1972. European Fund, which are included in “Europe.” 3 Data exclude “holdings of dollars” of the International Monetary 5 Represent a partial breakdown of the amounts shown in the “other” Fund but include IMF gold investment until Feb. 1972, when investment categories (except “Other Eastern Europe”). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 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 1969............................. 2,490 889 1,601 1,505 56 40 * 46 7 239 655 582 70 1970............................. 1,703 789 914 695 166 53 110 42 26 152 385 137 62 1971.............................. 902 446 457 144 257 56 164 52 30 111 3 87 9 1972—Jan.................... 986 537 449 138 254 58 164 50 30 107 1 84 14 Feb.................... 1,023 555 468 137 252 79 164 67 31 108 * 82 14 Mar................... 1,085 629 456 127 253 78 165 67 30 103 * 72 19 Apr.................... 1,103 651 453 120 253 80 165 67 32 105 • 66 18 May.................. 1,151 686 465 129 253 83 165 66 35 119 * 60 20 June.................. 1,168 693 476 127 267 82 165 66 34 135 * 58 17 July................... 1,157 688 469 117 269 84 165 68 34 136 * 49 18 Aug................... 1,093 650 443 88 269 86 165 68 34 135 * 24 17 Sept................... 1,067 612 455 99 269 87 165 68 37 135 * 33 17 Oct.................... 1,068 615 453 97 269 87 165 68 37 135 * 32 16 Nov................... 1,050 599 451 94 269 88 165 68 37 134 1 33 14 Dec.®................ 1,000 560 439 94 259 87 165 63 32 136 1 33 10 1973—Jan.®................. 1,026 600 426 73 258 96 165 61 30 124 1 31 13 1 Excludes central banks, which are included with “Official institutions,” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1972 1973 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.® Jan.® Europe: Belgium-Luxembourg..................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden............................................ 16 16 16 16 16 19 19 17 15 35 85 85 110 Switzerland...................................... 53 53 53 52 52 52 49 45 45 45 45 45 45 United Kingdom............................. 279 283 268 280 288 264 265 280 293 308 326 327 327 Other Western Europe................... 79 79 79 79 79 77 79 79 79 79 79 79 79 Eastern Europe............................... 5 5 5 5 5 5 5 5 5 5 5 5 5 Total......................................... 438 441 426 438 445 424 422 432 443 478 545 547 572 Canada................................................ 179 179 178 179 166 313 313 372 432 479 559 558 558 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............................................... Japan................................................ 2,007 2,i46 2,391 2,415 2,777 2,901 3,125 3,310 3,481 3,756 4,003 4,380 4,867 Other Asia....................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total........................................ 2,017 2,156 2,401 2,425 2,787 2,912 3,136 3,321 3,492 3,766 4,013 4,391 4,877 Africa................................................... 8 8 8 8 8 8 8 127 133 133 133 133 183 * * * * * * • * • • • 25 25 2,650 2,791 3,020 3,057 3,413 3,664 3,886 4,259 4,506 4,863 5,257 5,661 6,223 International and regional: International................................... 126 126 126 136 136 136 136 176 186 186 186 186 186 Latin American regional................ 31 31 32 33 25 26 27 27 27 27 28 28 28 Total......................................... 157 157 158 168 161 161 162 203 213 213 214 214 214 Grand total.............................. 2,807 2,948 3,177 3,226 3,574 3,825 4,048 j4,461 4,719 5,076 5,471 5,875 6,436 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. Treasury 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 China, Total g B iu e m l­ a C d a a n ­ i ( R T e ai p w . a o n f ) m G a e n r y ­ Italy • Korea T la h n a d i­ Total m G an e y r­ 3 Italy e S r w la i n tz d ­ 196 9 4 3,181 1,431 32 1,129 20 135 100 4 1,750 4 1,084 125 541 197 0 3,563 2,480 32 2,289 20 25 100 1,083 542 541 197 1 5 9,657 7.829 32 2.640 20 5.000 22 100 5 1,827 612 1.215 1972—Feb.. 9,658 7.829 32 2.640 20 5.000 22 100 1,828 612 1.216 Mar. 9,940 8,188 32 2.840 20 5,158 22 100 1.752 536 1,216 Apr. 12.440 10,688 32 2.840 20 7.658 22 100 1.752 536 1,216 May 12.441 10,688 32 2.840 20 7.658 22 100 1.753 536 1.217 June 12.441 10,688 32 2.840 20 7.658 22 100 1.753 536 1.217 July. 15.864 14.188 32 2.840 20 11.158 22 100 1.676 459 1.217 Aug. 15.864 14.188 32 2.840 20 11.158 22 100 1.676 459 1.217 Sept. 16,022 14.345 32 2.840 20 11.315 22 100 1.677 459 1.218 Oct.. 15.871 14.345 32 2.840 20 11.315 22 100 1,526 306 1,220 Nov. 15.872 14.345 32 2.840 20 11.315 22 100 1,528 306 1,222 Dec. 15.872 14,333 20 2.840 20 11.315 22 100 1,539 306 1,233 20 1973—Jan.. 16,016 14.474 20 2.840 11.471 22 100 1,542 306 1.236 Feb. 15,863 14.474 20 2.840 20 11.471 22 100 1,389 153 1.236 1 Includes bonds issued in 1964 to the Government of Canada in connec­ million equivalent were held by a group of German commercial banks from tion with transactions under the Columbia River treaty. Amounts out­ June 1968 through Nov. 1972. The dollar value of these notes was increased standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through by $10 million in 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 Notes 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. □ MARCH 1973 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1971 1972 1973 Area and country Dec. Apr. May June July Aug. Sept. Oct. Nov. Dec.? Jan.? Europe: 11 12 13 15 16 33 8 15 10 8 7 57 66 72 73 73 66 70 87 84 120 67 Denmark.................................................. 49 52 54 52 50 63 60 52 57 60 58 135 137 132 126 124 128 120 119 123 118 127 263 265 290 316 306 349 317 274 274 332 275 235 239 231 315 286 229 268 287 296 321 267 Greece...................................................... 30 28 30 24 25 27 28 27 27 29 34 Italy.......................................................... 160 209 230 200 196 190 173 177 170 255 221 105 100 100 117 97 102 116 104 101 109 93 67 72 65 64 71 56 52 62 62 69 62 Portugal.................................................... 12 13 24 21 25 21 27 22 21 19 21 Spain......................................................... 70 135 149 141 156 160 194 229 215 207 211 118 128 132 95 114 120 131 128 123 156 176 Switzerland............................................... 145 138 194 148 134 137 180 186 150 125 187 Turkey...................................................... 3 3 3 3 3 4 7 4 4 6 5 United Kingdom..................................... 559 516 518 550 736 666 643 657 729 856 672 Yugoslavia................................................ 19 24 27 22 23 21 22 18 16 22 18 Other Western Europe............................. 12 17 19 24 23 25 24 23 19 20 23 U.S.S.R..................................................... 28 70 65 57 62 64 55 30 32 41 44 Other Eastern Europe............................. 37 42 43 43 44 40 38 40 38 49 47 Total.................................................. 2,114 2,266 2,390 2,406 2,563 2,503 2,531 2,543 2,553 2,921 2,614 1,627 1,961 1,824 1,856 2,299 2,484 2,025 1,681 1,722 1,927 1,939 Latin America: 305 304 316 325 323 339 352 363 357 379 389 435 511 543 551 568 602 641 661 633 652 641 Chile.......................................................... 139 108 94 78 77 71 79 58 53 52 54 Colombia.................................................. 380 379 394 404 395 384 378 384 396 419 407 13 13 13 13 13 13 13 13 15 13 12 934 1,093 1,035 1,151 1,177 1,160 1,123 1,127 1,168 1,204 1,202 Panama..................................................... 125 110 121 130 132 137 150 145 179 246 219 Peru.......................................................... 176 163 177 160 157 158 137 138 147 146 129 Uruguay.................................................... 41 38 38 35 38 40 43 36 38 40 40 Venezuela.................................................. 268 311 299 314 333 343 335 361 386 384 388 Other Latin American republics............. 374 376 359 366 357 355 345 353 368 389 393 Bahamas 1................................................ 262 278 265 317 375 420 422 369 401 474 422 Netherlands Antilles and Surinam......... 18 15 16 16 16 16 15 15 13 14 15 Other Latin America............................... 26 27 24 25 22 29 28 32 33 36 45 3,494 3,725 3,695 3,883 3,982 4,066 4,061 4,055 4,189 4,445 4,357 Asia: China, People’s Rep. of (China Mainland) 1 2 2 2 2 2 2 2 1 1 2 China, Republic of (Taiwan).................. 109 172 180 182 178 173 180 187 201 194 209 70 99 107 111 100 85 85 76 76 94 80 India.......................................................... 21 18 16 16 14 17 18 15 17 14 15 Indonesia.................................................. 41 39 49 45 44 60 66 74 74 87 87 Israel......................................................... 129 84 81 78 101 87 78 87 105 105 126 Japan........................................................ 4,280 3,980 3,685 3,573 3,532 3,474 3,462 3,727 4,011 4,172 4,011 Korea........................................................ 348 399 377 346 344 342 321 302 317 297 259 Philippines................................................ 138 137 138 138 143 144 144 151 160 149 140 Thailand................................................... 172 187 181 183 174 187 187 177 183 191 184 Other........................................................ 252 210 199 221 245 230 229 244 262 302 288 Total.................................................. 5,560 5,327 5,016 4,894 4,876 4,801 4,774 5,042 5,408 5,606 5,400 Africa: Egypt......................................................... 10 10 11 16 14 12 15 17 16 21 22 Morocco................................................... 4 4 4 4 4 4 5 5 4 4 6 South Africa............................................ 158 152 161 160 149 142 139 134 145 143 150 Zaire......................................................... 21 15 18 14 12 12 12 14 10 13 15 Other........................................................ 99 120 129 124 121 114 124 113 116 127 116 Total.................................................. 292 301 324 318 300 283 294 283 290 308 309 Other countries: 158 169 175 176 210 184 210 229 271 291 272 28 34 31 34 38 41 39 36 36 40 50 Total.................................................. 186 203 206 211 248 225 249 265 308 331 322 13,273 13,784 13,455 13,568 14,267 14,362 13,934 13,869 14,469 15,537 14,941 3 3 7 4 3 3 4 6 6 3 3 13,277 13,787 13,462 13,572 14,270 14,365 13,938 13,875 14,474 15,540 14,944 1 Includes Bermuda through Dec. 1972. foreigners, where collection is being made by banks and bankers for their own account or for account of their customers in the United States; Note.—Short-term claims are principally the following items payable and foreign currency balances held abroad by banks and bankers and on demand or with a contractual maturity of not more than 1 year: loans their customers in the United States. Excludes foreign currencies held made to, and acceptances made for, foreigners; drafts drawn against by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c t o i s u a a ­ l ns t B o a — nksi Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i c r f g n c a a n f c e o d 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 o n u c o n o v r a r i d n m e t t , i i c e f g l s e i . s e ­ n , ­ Other paper 196 9 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 74 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2.......... \ / 1 1 3 3, , 2 1 7 7 7 0 1 1 2 2 , , 3 3 8 2 1 8 4 3 , , 5 9 0 6 3 6 2 22 2 3 4 2 2, , 6 0 1 8 3 0 1 1 , , 6 6 6 6 2 7 2 2 , , 4 4 7 7 5 5 4 4 , , 2 2 4 5 3 4 1 1 , , 6 1 8 0 6 7 8 8 9 4 5 2 5 5 4 4 8 9 1 1 7 1 3 9 1 1 7 7 4 4 1972—Jan... 13,148 12,315 3,871 209 2,053 1,609 2,473 4,234 1,737 833 501 228 104 Feb.. 13,667 12,740 4,023 198 2,055 1,770 2,430 4,394 1,893 926 562 266 98 Mar.. 14,047 13,046 4,175 167 2,141 1,867 2,476 4,410 1,985 1,000 579 283 138 Apr.. 13,787 13,001 4,451 163 2,354 1,935 2,469 4,252 1,829 785 498 177 111 May. 13,462 12,628 4,604 169 2,520 1,915 2,541 3,837 1,646 835 530 187 118 June. 13,572 12,738 4,767 162 2,584 2,020 2,650 3,482 1,839 833 486 222 125 July.. 14,270 13,365 5,062 161 2,791 2,109 2,705 3,227 2,372 905 519 278 108 Aug.. 14,365 13,419 4,994 150 2,717 2,127 2,812 3,081 2,533 946 482 338 126 Sept.. 13,938 13,051 4,995 143 2,574 2,278 2,889 2,966 2,201 887 431 329 127 Oct... 13,875 13,100 5,163 146 2,666 2,350 2,994 2,961 1,982 775 408 209 158 Nov.. 14,474 13,705 5,354 160 2,700 2,495 3,130 3,139 2,082 769 412 219 138 Dec.* 15,540 14,695 5,730 166 2,976 2,589 3,273 3,215 2,478 845 441 223 181 1973—Jan.*. 14,944 14,119 5,430 145 2,813 2,472 3,211 3,103 2,375 825 444 253 127 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 n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1969................. 3,250 2,806 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970................. 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971................. 3,664 3,342 575 315 2,452 300 22 130 593 228 1,458 246 583 426 1972—Jan........ 3,692 3,373 575 311 2,487 295 24 132 582 256 1,459 241 595 427 Feb....... 3,743 3,426 595 324 2,507 292 24 124 593 254 1,477 241 624 430 Mar.. .. 3,842 3,531 644 329 2,559 284 26 131 606 233 1,498 278 651 444 Apr....... 3,944 3,622 654 335 2,633 295 27 143 626 230 1,542 290 673 440 May.... 4,049 3,728 674 335 2,719 291 30 140 638 251 1,584 281 712 444 June.... 4,194 3,871 719 363 2,788 293 31 139 631 284 1,644 309 740 446 July___ 4,308 3,995 757 356 2,882 281 32 146 674 283 1,719 294 759 432 Aug....... 4,389 4,069 771 398 2,899 287 34 141 671 277 1,788 288 778 446 Sept.. .. 4,529 4,214 796 402 3,017 282 33 128 687 288 1,859 289 802 476 Oct........ 4,627 4,300 798 412 3,090 292 35 136 658 335 1,891 302 828 477 Nov.. . . 4,668 4,345 819 432 3,093 291 33 137 662 341 1,875 301 863 490 Dec.*... 4,914 4,503 832 431 3,240 375 37 138 707 382 1,992 315 881 500 1973—Jan.p... 4,911 4,494 832 441 3,222 379 38 138 737 377 1,951 314 903 491 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes i securities 2 Foreign bonds Foreign stocks Net piirehases 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 p e s s u o r r ­ c P ha u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1970............................. 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971............................ 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,575 -888 1,385 1,434 -49 1972?........................... 3,316 57 3,259 3,281 -22 18,873 14,808 4,065 1,866 2,906 -1,040 2,532 2,099 433 1972 Jan................... 248 1 247 305 -58 1,579 1,277 301 127 409 -282 191 170 21 Feb................... 141 141 138 3 1,609 1,312 297 161 241 -80 200 199 1 Mar.................. 230 1 229 245 -16 2,030 1,527 503 188 250 -62 290 269 20 Apr................... 48 11 38 25 13 1,678 1,420 258 162 152 9 197 181 16 May................. 348 -8 356 350 6 1,346 1,111 235 128 319 -191 245 141 104 June................. 251 1 251 274 -23 1,648 1,407 241 109 339 -230 226 269 -43 July.................. 223 1 222 224 -2 1,150 1,152 -2 188 100 88 155 163 -8 Aug.................. 413 40 373 365 9 1,486 1,214 271 129 98 30 242 179 63 Sept.................. 258 10 247 237 11 1,150 829 321 173 161 12 173 141 32 Oct................. 356 356 340 17 1,317 903 414 153 204 -51 188 115 74 Nov.................. 395 1 395 377 18 1,910 1,289 621 136 171 -35 192 110 82 Dec.?............... 404 404 403 1 1,970 1,367 604 211 460 -249 233 162 71 1973—Jan.?............... 562 ' 562 562 * 1,823 1,100 723 191 324 -133 161 155 7 ' Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. 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. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1970..................... 626 58 195 128 110 -33 24 482 -9 47 85 1 22 1971..................... 731 87 131 219 168 -49 71 627 -93 37 108 * -2 54 1972?................... 2,277 373 -51 297 642 694 93 2,047 -78 -32 256 — 1 -1 86 1972—Jan............ 269 36 29 60 98 2 -7 218 1 11 27 * * 12 Feb........... 153 13 4 37 55 36 6 149 -32 10 20 — 1 * 6 Mar.......... 177 19 -12 27 56 95 « 185 -26 3 8 * * 7 Apr........... 78 -9 -22 19 1 46 * 35 -23 13 49 — 1 * 6 May......... 55 19 -14 8 27 20 2 62 -17 -22 30 * * 2 June......... 32 8 -20 15 27 -1 5 33 -1 -42 32 * * 9 July.......... -38 -6 -44 -14 56 14 -41 -36 4 -25 12 * * 7 Aug.......... 245 60 -13 8 68 93 27 242 8 -16 4 * * 6 Sept.......... 172 36 -7 15 51 63 11 169 -12 1 11 * * 3 Oct........... 294 65 6 24 83 45 20 244 8 2 29 * — 1 12 Nov.......... 489 85 44 55 61 150 52 447 14 25 -8 * — 1 12 Dec.*....... 351 49 -3 42 59 132 19 298 -1 8 42 * * 4 1973—Jan.*........ 474 32 29 47 138 109 23 378 23 -19 84 * 1 7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 Ger- N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 0 . 956 35 48 37 134 118 91 464 128 25 28 -12 324 197 1 684 15 35 -1 197 327 39 612 37 19 -2 -21 39 1972®........... 1,788 293 77 65 134 320 355 1,243 82 22 293 145 1972—Jan.. , 32 3 2 1 -14 20 38 49 10 -2 3 -28 Feb.. 144 -1 -1 -1 -20 102 -11 67 11 -13 51 27 Mar.. 326 5 3 « 29 64 15 116 -3 3 192 18 Apr.. 180 38 3 20 -1 -8 -13 38 -1 * 27 114 May. 180 40 -3 * -3 71 15 121 11 26 11 10 June., 210 95 1 8 21 4 17 148 23 * 8 31 July., 36 9 -4 8 41 -34 12 33 4 2 1 -4 Aug.. 27 6 4 6 17 -16 45 62 9 -1 -1 -44 Sept.. 149 7 4 3 15 18 80 127 10 * * 12 Oct... 120 36 7 1 35 4 54 138 5 3 2 -28 Nov.. 132 2 30 18 -1 46 42 138 -6 1 1 * Dec.® 253 53 30 14 49 60 207 3 -1 35 1973—Jan.®. 249 12 -2 27 38 73 148 32 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance di­ of U.S. Govt, agencies and corporations. Also includes issues of new rect 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 1970—Mar........................... 368 220 1971................ -937 -310 -627 38 -285 -46 -366 -1 32 June........................... 334 182 1972®.............. -608 -90 -518 460 -661 -67 -269 -10 29 Sept............................ 291 203 349 281 1972—Jan....... -261 -241 -20 11 -24 -16 5 * 3 Feb___ -79 -11 -68 32 -73 1 -26 -2 * 1971—Mar............................ 511 314 Mar.... -42 18 -60 58 -74 -2 -47 -5 10 June........................... 419 300 Apr.. . . 25 7 18 65 13 -31 -36 3 5 Sept............................ 333 320 May. . . -87 7 -94 75 -143 -1 -21 -9 2 311 314 June... -273 10 -283 26 -201 -15 -94 * * July.... 81 78 2 36 23 3 -62 * 2 325 379 Aug__ 93 -1 94 50 49 -1 -5 * 2 June........................... 312 339 Sept.... 44 6 38 47 3 10 -24 * 1 286 336 Oct. ... 23 16 7 53 -73 2 23 * 2 365 401 Nov.... 47 11 36 39 -4 8 -8 * * Dec.®. . -178 9 -187 -32 -158 -29 27 2 1 1973—Jan.®... -127 9 -136 10 -67 -70 -9 * ♦ mo N n o ey te d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in m g o o n n e t y h e c b re o d o i k t s b o al f a r n e c p e o s r t a i n n d g 1 brokers and dealers in the United States, in accounts of 1 foreigners with them, and in their accounts carried by foreigners. Notes to Tables 21a and 21b on following pages: i Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $11,005 million and $11,264 million, respectively, on Oct. 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

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 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 Total, all currencies....................... 1970—Dec.. 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1,403 1971—Oct.. 57,496 5.844 3,649 2,195 49,716 10,154 21,923 1,198 16,441 1,937 Nov.. 58,630 5,650 3,341 2,308 51,066 10,416 22,661 1,195 16,795 1,914 Dec.. 61,334 4,798 2.311 2,486 54,752 11,211 24,550 1,167 17,823 1,785 1972—Jan... 59,926 4,331 1,986 2,345 53,701 10,445 24,464 1,211 17,581 1,894 Feb.. 61,816 4.116 1,742 2,374 55,839 11,013 25,615 1,118 18,093 1,861 Mar.. 65,033 4,565 2,085 2,480 58,653 10,633 28,066 1,173 18,781 1,815 Apr.. 63,755 4,846 2,426 2,421 57,091 10,542 26,354 1,179 19,015 1,817 May. 64,375 4,619 2,080 2,539 57,946 10,463 27,061 1,276 19,146 1,810 June. 69,623 4,854 2,279 2,576 62,901 11,459 30,586 1,342 19,514 1,867 July. 72,434 4,186 1,524 2,662 66,241 11,848 31,183 1,439 21,772 2,006 Aug.f 72,856 4,504 1,759 2,745 66,268 11,655 31,821 1,566 21,225 2,084 Sept.» 73,414 4,927 2,242 2,685 66,140 11,335 32,153 1,538 21,114 2,346 Oct.. 74,805 4,967 2,239 2,728 67,608 11,343 33,104 1,550 21,612 2,230 Payable in U.S. dollars. 1970—Dec.. 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Oct.. 38,570 5,600 3,633 1,968 32.617 6,094 16,302 907 9,013 653 Nov.. 39,130 5,368 3,319 2,049 33.118 6,436 16,690 910 9,082 644 Dec.. 40,182 4,541 2,305 2,236 35.064 6,659 18,006 864 9,536 577 1972—Jan.. 38,867 4,070 1,973 2,097 34,169 6,427 17,710 822 9.210 628 Feb.. 39,915 3,864 1,732 2,132 35,369 6,637 18,510 821 9,400 682 Mar.. 42,993 4,300 2,062 2,238 38.065 6,725 20,604 843 9,891 631 Apr.. 41,353 4,562 2,387 2,176 36,123 6,358 19,015 881 9,870 668 May. 41,935 4,393 2,063 2,330 36,889 6.475 19,575 936 9,903 653 June. 44,905 4,585 2,260 2,325 39,669 6,598 22,049 914 10,108 651 July. 46.574 3,923 1,498 2,424 41,929 7,469 22,121 1,015 11,324 723 Aug.* 47,175 4,263 1,741 2,523 42,184 7,320 22,717 1,063 11,085 728 Sept.1 47,749 4,667 2,221 2,445 42,204 7,048 23.040 1,104 11,012 879 Oct.. 48,995 4,669 2,216 2,453 43,565 7,391 23,560 1,085 11,528 761 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—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 June. 39.452 2,298 1,199 1,099 36,307 5,604 21.096 568 9,039 846 July. 41,934 1,969 821 1,148 39,077 5,968 21,745 578 10,786 888 Aug.. 40,596 2.117 1,078 1,039 37,538 5,688 21.411 595 9,844 941 Sept.1 40,565 2,325 1,252 1,073 37.144 5,651 21,319 650 9,523 1,097 Oct.. 41,649 2,409 1,386 1,023 38,201 5,751 22,157 630 9,662 1,040 Payable in U.S. dollars. 1970—Dec.. 22.574 6,596 15,655 2,223 9,420 4,012 323 1971—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 June. 27,114 2,210 24,535 3,931 15,983 4,621 369 July. 28,220 1,866 25,936 4,306 16,110 5,520 418 Aug.. 27,185 2,036 24,734 4,013 15,768 4,953 415 Sept.1 27,253 2,246 24,532 4,004 15,811 4,717 476 Oct.. 27,978 2,307 25,244 4,169 16,249 4,827 427 IN THE BAHAMAS Total, all currencies. 1970—Dec.. 4,815 1,173 455 717 3,583 2,119 1,464 59 1971—Oct.. 6,586 887 246 641 5,605 3,019 2,585 95 Nov. 7,264 1,025 '227 798 6,139 3,203 2,936 101 Dec.. 8,493 1,282 505 778 7,119 3,798 3,320 92 1972—Jan.. 7,912 953 157 796 6,866 3,630 3.237 93 Feb.. 8,375 994 107 888 7,271 3,816 3,455 110 Mar.. 8,828 1,178 126 1,052 7,542 4,030 3,513 108 Apr.. 8,621 1,244 204 1,040 7,269 3,780 3,489 108 May. 9,097 1,361 195 1,166 7,618 4,183 3,435 117 June. 10,075 1,552 295 1,257 8,396 4,825 3,571 128 July. 10,329 1,409 110 1,298 8,786 4,924 3,863 134 Aug.1 11,516 1,530 118 1,413 9,846 5,682 4,164 139 Sept.1 11,909 1,612 221 1,391 10.145 5,926 4,219 152 Oct.. U2,026 1,739 251 1,489 10,129 5,843 4,286 157 For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 47,3544 2,575 716 1,859 42,812 6,4261 24,829 4,1801 7,377 1,967 ............1970—Dec. .. .Total, all currencies 6 2,915 474 2,441 52,54C 9,802: 28,532 5,581 8,626 2,041 9 2,87( 475 2,395 53,646 10,038 29,363 5,7491 8,495 2,113 6 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 0 2,934 654 2,280 54,991 10,324 29,733 5,858 9,075 1,996 6 3,16' 776 2,391 56,632 10,645 30,694 6,208 9,085; 2,018 3 3,046 635 2,411 59,925 10,363 33,710 6,331 9,521 2,062 5 2,97J 621 2,356 58,726 10,097 32,379 6,617' 9,635 2,051 4 2,819 562 2,256 59,648 10,055 33,114 6,649 9,830i 1,908 2 3,086 646 2,44( 64,592 11,069 36,113 7,223 10,187 1,944 3 3.34J 763 2,585 66,978 11,396 36,673 7,784 11,125 2,107 5 3,263 680 2,583 67,392 11,510i 37,327 7,841 10,714 2,200 3 3,262 727 2,535 67,892 11,123 38,331 8,039 10,400i 2,258 4 3,256 716 2,539 69,206 11,204 38,477 8,236i 11,289 2,342 36,0866 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 ............1970—Dec. • Payable in U.S. dollars 2 2,549 352 2,198 36,331 6,154 20,808 4,503 4,866 1,161 4 2,522 375 2,148 37,149 6,479 21,133 4,662 4,874 1,221 3 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 7 2,552 542 2,010 37,584 6,710 20,859 4,726 5,289 1,182 ...........1972—Jan. 7 2,74C 641 2,099 38,605 6,853 21,742 4,783 5,226 1,212 2,642 507 2,135 41,736 6,945 24,433 4,957 5,402 1,225 2,589 514 2,075 39,877 6,560 22,854 5,202 5,260 1,197 1 2,411 439 1,973 40,754 6,648 23,603 5,170 5,333 1,058 ^ 2,671 523 2,148 44,142 7,277 25,807 5,656 5,401 1,021 2,851 636 2,215 45,207 7,612 25,341 6,315 5,939 1,104 2,800 549 2,252 45,464 7,660 25,862 6,252 5,690 1,173 5 2,793 605 2,188 46,088 7,401 26,545 6,331 5,811 1,204 2,789 582 2,207 47,313 7,706 26,776 6,567 6,264 1,233 IN UNITED KINGDOM 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 ...........1970—Dec. .. .Total, all currencies 1,628 104 1,523 31,009 3,250 18,535 4,447 4,777 772...........1971—Oct. 1,618 77 1,541 31,513 3,106 18,901 4,622 4,885 814 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 1,626 132 1,494 31,473 3,296 18,076 4,680 5,421 778...........1972—Jan. 1,582 114 1,468 32,371 3,417 18,705 4,788 5,461 759 1,525 78 1,447 34,787 3,209 20,989 4,996 5,594 792 1,340 68 1,272 33,980 3,056 19,893 5,172 5,859 807 1,397 105 1,291 34,090 3,154 19,908 5,158 5,871 824 1,447 147 1,300 37,102 3,160 22,144 5,542 6,256 903 1,633 177 1,456 39,341 3,577 22,532 6,173 7,059 960 1,498 153 1,345 38,165 3,423 22,236 6,007 6,499 933 1,457 136 1,321 38,074 3,139 22,746 6,102 6,087 1,034 1,465 136 1,329 39,225 3,060 23,001 6,309 6,854 959 23,005 1,208 98 1,110 21,495 1,548 1*3,684 2,859 3,404 302 ...........1970—Dec. . .Payable in U.S. dollars 1,435 49 1,387 22,875 2,095 14,079 3,660 3,041 417...........1971—Oct. 1,452 36 1,416 23,166 2,028 14,185 3,813 3,140 426 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 1,377 50 1,327 22,985 2,081 13,670 3,824 3,411 403 ...........1972—Feb. 1,327 19 1,308 25,220 2,093 15,694 4,041 3,392 424 1,154 26 1,129 24,027 1,852 14,465 4,233 3,477 419 1,202 58 1,144 24,168 2,054 14,610 4,141 3,363 417 1,250 103 1,147 26,017 2,070 15,874 4,560 3,513 462 28,831 1,390 128 1,262 26,966 2,302 15,575 5,180 3,909 475 ......................July 1,271 100 1,171 25,887 2,140 15,217 4,981 3,549 467 1,230 86 1,144 25,825 1,926 15,376 4,957 3,567 531 28,477 1,245 80 1,165 26,759 1,942 15,597 5,216 4,004 473 IN THE BAHAMAS 4,815 542 4,183 488 2,872 823 90 ............1970—Dec. . .Total, all currencies 6,588 628 5,805 1,083 3,551 1,170 155...........1971—Oct. 7,265 599 6,510 1,446 3,943 1,121 155 8,495 750 7,557 1,649 4,784 1,124 188 7,912 621 7,139 1,563 4,369 1,207 151 8,375 855 7,378 1,526 4,674 1,178 142 8,828 832 7,868 1,429 5,134 1,305 128 8,621 959 7,538 1,471 4,926 1,140 125 9,096 812 8,141 1,454 5,356 1,330 144 10,075 997 8,943 1,809 5,903 1,231 136 10,329 1,043 9,126 1,633 6,169 1,323 160 ......................July 11,515 1,121 10,238 1,885 6,898 1,455 156 11,909 1,137 10,616 1,935 7,188 1,493 156 ....................rSept. 112,025 1,053 10,801 1,928 7,422 1,452 171 . For notes see p. A-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 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 i t a u b r i i l t i y ty of 1972 Oct. Nov. Dec. 1967 1971 1972—Cont. 1.98 1.83 2.08 J M S D u e e n a p c r e t . . . 2 2 2 2 9 8 7 7 4 4 3 3 , , , , 2 0 4 1 4 5 6 1 1 9 6 2 J S D M u e e n a p c r e t . . . 2 2 3 3 9 9 0 1 . . . . . . . . 2 2 1 , , , 4 8 4 9 7 5 9 0 5 8 2 9 4 4 3 , , , 3 5 57 5 0 8 8 0 Oct. 2 1 1 4 5 1 8 . . . . . . . . . . . . 1 1 1 1 , , , , 5 8 6 4 1 4 9 1 9 4 0 5 C O a t d m i h n l a l e o . t r . e n . f l . : o t i . h . a l . l b . s o . i . w l . i .. t i a . i n . e f . g . t s . e , . . r m . c .. a . a . l r t . e . e u . n p . r . d i . o n . a . r g . r t . 2.39 2.34 2.11 1972 Nov. 1... 1,387 10.08 11.01 16.86 J M un ar e . 2 2 7 6 . . . . . . . . . . . 1 . . . 9 . . . . 6 . . . . 8 . . . . 4 6, , 2 9 0 2 2 0 J F M a e n a b . r . . 2 2 2 6 3 9 . . . . . . 1 1 1 , , , 4 5 0 1 3 6 9 8 2 2 2 1 8 9 2 5 . . . . . . . . . . . . 1 1 1 1 , , , , 3 7 8 4 3 4 4 6 1 8 5 4 4 3r th d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 7 6 2 . . . . . 3 5 0 9 7 1 9 6 2 2 4 8 2 2 3 . . . . . 7 0 0 9 4 9 1 3 2 6 4 2 2 5 3 . . . . . 9 6 2 2 9 1 3 4 2 7 S D e e p c t . . 2 31 5 . ( .. 1 .. / . 1 1 . 9 . / . 6 6 .. 9 9 .. ) 7 6 , , 1 03 0 9 4 J J A M u u p l n a y r y e . 1 3 2 2 5 2 1 8 6 . . . . . . . . . . . . 1 1 1 1 , , , , 3 4 3 4 8 6 7 4 7 2 5 3 4 7 7 Dec. 2 2 1 6 0 7 3 . . . . . . . . . . . . 1 1 1 1 , , , , 6 7 8 4 1 0 0 0 8 5 7 6 Mat 1 1 u 7 0 1 r t t t i h h h ti . . . e . . . . . . s . . . . . . . . . o . . . . . . f . . . . . . m . . . . . . . . . o . . . . . . . r . . . . . e . . . . . . . t . . . . . h . . . . . . a . . . . . . n . . . . . . . . . 1 . . . . . . . . . . . . 5 6 3 4 5 2 3 7 6 1 0 0 . . . . . . 4 3 2 4 6 5 5 3 9 7 4 7 . . . . . . 7 3 2 5 5 2 8 8 7 3 9 2 J M un ar e . 2 26 5 . . . . . . . . . . . . . . . . . . . .. .. .. . 1 9 3 , , 6 2 2 6 1 9 2 1 6 9 . . . . . . 1,3 9 4 7 5 4 1973 1.35 1.43 1.43 Sept. 24............. 14,349 Dec. 31............. 12,805 Aug. 9 2 . . . . 1 1 , , 8 2 2 5 9 0 1 3 0 . . . . . . 1 1 , , 1 6 2 2 1 5 40.07 40.56 44.22 16.. 1,785 17... 1,419 1970 2 3 3 0 . . . . 1 1 , , 8 2 4 7 6 0 2 3 4 1 . . . . . . 1 1 , ,7 41 8 3 6 dep N o o s t it e s . — an I d n c d lu ir d e e c s t b i o n r t r e o re w s i t n -b g e s a o ri f n a g l l U br . a S n . ch d e o s ll a in r J S D M u e e n a p c r e t . . . 2 2 3 3 0 4 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 7 1 2 , , , , 6 6 8 1 6 8 7 7 5 3 2 6 Sept. 2 2 1 6 0 7 3 . . . . . . , . 2 1 1 1 , , , , 0 1 5 4 2 0 8 9 7 3 8 7 2 2 1 7 1 8 4 . . . . . . . . . . . . 1 1, , 3 1 6 7 9 5 9 9 1 7 4 0 t f a h o m e r D o e w B u t n a h a t h i i l c a s t h o m m s a $ a u s 5 y c 0 a h n m n o d d i t l e l a p o io d o f n d s a i t o l t s l o r o a t m o t n h o t d a e r l e r s d . f i d r o u e r c e e t i g to b n o r b r o r r u o a n w n d c i i n h n g e g s s . 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. TREAS. SECURITIES, 25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked period Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ K d i o n m g­ Canada ments 1 ments 1 1970.............. 148 16,226 12,926 1971.............. 294 43,195 13,815 1968................... 1,638 1,219 87 272 60 979 280 1972—Feb.. . 137 45,699 14,359 1Q£Q 2 / \ 1 1 , , 3 4 1 91 9 1,0 9 6 5 2 2 1 16 1 1 6 1 18 7 3 4 7 8 6 6 6 6 6 1 3 0 4 5 6 3 9 4 Mar... 191 46,837 14,321 1,141 697 150 173 121 372 436 Apr.. . 228 46,836 14,315 J M un ay e. . . . 2 1 5 5 7 7 4 46 7 , , 4 1 5 7 3 6 21 1 5 5 , , 5 5 4 42 2 i170* 7/11 —uec.*2, • •. \ /1 1 , , 6 5 4 0 8 4 1 1 , ,0 07 9 5 2 2 1 0 2 3 7 2 2 3 34 4 1 6 2 8 0 5 5 7 7 7 7 4 5 4 8 3 7 July... 160 51,522 15,542 Aug... 192 51,676 15,530 1972—Jan.......... 1,623 1,132 148 244 100 605 557 Sept... 193 50,997 15,531 Feb......... 1,627 1,075 213 238 101 550 650 Oct__ 192 51,821 15,531 Mar........ 1,804 1,234 177 271 122 655 667 Nov... 188 51,874 15,530 Apr......... 1,899 1,315 200 273 112 667 707 Dec... 325 50,934 15,530 May........ 1,935 1,347 206 299 84 713 608 June........ 1,984 1,382 199 312 92 710 572 1973—Jan.... 310 50,118 15,526 July........ 2,082 1,514 194 318 55 751 565 Feb... 455 56,914 15,522 Aug......... 2,270 1,599 217 392 61 752 709 Sept........ 2,098 1,524 170 359 45 681 604 Oct.r___ 2,030 1,469 171 332 57 677 551 1 Marketable U.S. Treasury bills, certificates of in­ Nov.r.... 2,057 1,491 167 343 55 634 587 debtedness, notes, and bonds and nonmarketable U.S. Dec......... 1,904 1,385 169 307 42 655 485 Treasury securities payable in dollars and in foreign currencies. 2 Increase results from change in par value of the U.S. 1 Negotiable and other readily transferable foreign obligations payable on demand dollar on May 8, 1972. or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. Note.—Excludes deposits and U.S. Treas. securities 2 Data on the two lines for this date differ because of changes in reporting coverage. held for international and regional organizations. Ear­ Figures on the first line are comparable in coverage with those shown for the preceding marked gold is gold held for foreign and international date; figures on the second line are comparable with those shown for the following date. accounts and is not included in the gold stock of the United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 Dec. Mar. June Sept.* Dec. Mar. June Sept p Europe: Austria.................................. 5 5 6 2 14 17 16 15 Belgium-Luxembourg.......... 65 104 108 82 60 45 64 63 Denmark............................... 2 3 5 5 15 18 20 19 Finland................................. 2 2 2 3 18 19 19 16 France................................... 136 123 139 145 202 196 207 187 Germany, Fed, Rep. of........ 117 88 104 130 192 197 191 200 Greece................................... 4 5 5 14 34 36 36 30 Italy....................................... 103 107 99 108 186 181 184 174 Netherlands........................... 69 79 65 79 68 66 66 71 Norway................................. 5 6 5 5 13 16 17 19 Portugal................................. 16 9 2 3 16 23 21 20 Spain..................................... 65 65 70 63 124 102 117 130 Sweden.................................. 17 16 13 14 40 35 37 45 Switzerland........................... 104 73 97 118 63 60 59 57 Turkey................................... 2 2 3 3 9 9 11 8 United Kingdom.................. 869 927 981 943 940 954 985 968 Yugoslavia............................ 3 4 6 5 13 10 10 11 Other Western Europe........ 2 1 2 2 13 13 10 11 Eastern Europe..................... 4 5 3 9 28 25 22 47 Total.............................. 1,590 1,625 1,714 1,733 2,046 2,023 2,093 2,091 Canada...................................... 181 189 185 178 781 1,045 936 996 Latin America: Argentina.............................. 18 18 18 16 54 48 50 52 Brazil..................................... 19 18 19 24 147 138 152 162 Chile...................................... 14 21 16 17 46 39 41 32 Colombia.............................. 7 7 6 6 45 40 38 39 Cuba...................................... * • • 1 1 1 1 1 Mexico................................... 22 17 18 21 151 134 144 155 Panama................................. 5 8 6 5 21 19 22 20 Peru....................................... 7 8 6 5 34 31 32 36 Uruguay................................ 2 3 3 2 5 6 5 7 Venezuela.............................. 16 18 17 17 81 77 75 74 Other L.A. republics............ 32 27 32 30 99 94 106 96 Bahamas 1............................. 284 351 352 287 366 313 442 510 Neth. Antilles and Surinam. 3 5 6 9 9 8 10 8 Other Latin America........... 5 12 6 6 24 22 18 23 Total.............................. 434 513 506 447 1,083 969 1,134 1,215 Asia: China, Rep. of (Taiwan).... 18 23 25 26 41 45 45 51 Hong Kong........................... 11 11 11 10 23 21 23 22 India...................................... 26 13 7 7 35 28 32 36 Indonesia............................... 10 6 5 6 28 29 25 32 Israel..................................... 10 9 9 11 22 21 17 18 Japan..................................... 173 189 188 223 405 442 451 452 Korea.................................... 13 12 16 16 68 56 61 57 Philippines............................. 5 8 6 7 48 62 67 63 Thailand............................... 3 4 4 5 15 18 15 14 Other Asia............................ 142 109 104 140 144 171 174 172 Total.............................. 412 383 374 451 830 894 911 918 Africa: Egypt.................................... 1 1 1 1 9 9 6 7 South Africa......................... 31 26 37 17 41 42 46 45 Zaire..................................... 1 1 1 2 6 5 7 7 Other Africa......................... 35 30 31 37 99 76 74 64 Total.............................. 67 59 71 57 155 129 133 122 Other countries: Australia............................... 42 50 54 46 80 83 97 92 All other............................... 8 9 11 11 17 26 18 18 Total.............................. 50 58 66 57 98 109 116 110 International and regional.... * * • * 4 2 5 8 Grand total................... 2,735 2,828 2,917 2,924 4,997 5,171 5,328 5,460 1 Includes Bermuda. mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts Note.—Reported by exporters, importers, and industrial and com* between U.S. companies and their foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1973 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i l n a la b r l s e cu P fo r a r r y e i e n a n i b g c l i n e es Total P d a o y i l n a la b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter’s name 1,473 1,056 417 3,855 3,415 210 229 1,678 1,271 407 3,907 3,292 422 193 Dec...................... 1,608 1,225 382 3,783 3,173 368 241 1969—Mar...................... 1,576 1,185 391 4,014 3,329 358 327 June..................... 1,613 1,263 350 4,023 3,316 429 278 Sept.................... 1,797 1,450 346 3,874 3,222 386 267 Haa I / 1,786 1,399 387 3,710 3,124 221 365 I 2,124 1,654 471 4,159 3,532 244 383 1970—June..................... 2,387 1,843 543 4,457 3,868 234 355 2,512 1,956 557 4,361 3,756 301 305 Dec....................... 2,677 2,281 496 4,160 3,579 234 348 1971—Mar...................... 2,437 1,975 462 4,515 3,909 232 374 June..................... 2,357 1,937 438 4,708 4,057 303 348 Sept...................... 2,564 2,109 454 4,894 4,186 383 326 1 / 2,704 2,229 475 5,185 4,535 318 333 1 2,735 2,276 459 4,997 4,459 290 247 1972—Mar...................... 2,828 2,399 429 5,171 4,551 318 302 June..................... 2,917 2,444 472 5,328 4,682 376 270 Sept.®................... 2,924 2,425 498 5,460 4,799 432 229 i Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th ll er America 1968—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 r\a« i / 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 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 2,982 151 687 677 180 63 625 138 312 75 74 Sept....................... 2,939 3,022 135 672 763 178 60 597 133 319 91 75 Dec.1..................... \ / 3 3, , 1 1 4 1 9 0 3 3 , , 1 1 3 3 9 7 1 12 28 8 7 71 1 5 5 7 7 6 5 3 6 1 1 7 74 4 6 6 0 0 6 6 5 5 7 6 1 1 4 3 1 6 3 3 2 2 7 7 9 9 6 6 8 85 4 1972—Mar........................ 3,055 3,224 129 723 781 175 59 669 137 360 104 85 June....................... '3,308 3,194 108 707 791 180 57 668 136 361 93 93 Sept.3*..................... 3,453 3,224 128 690 809 179 61 656 132 382 93 93 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ EXCHANGE 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 (ru ey p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k a k n a d ) F (f r r a a n n c c c ) 1968............................................................. .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 1969............................................................. .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 i 19.302 1970............................................................. 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 1972............................................................. 19.960 119.23 4.3228 2.2716 100.937 16.057 14.384 24.022 19.825 1972—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 Sept................................................... 119.10 4.3354 2.2742 101.730 15.600 514.388 24.015 19.977 Oct.................................................... 119.07 4.3102 2.2640 101.756 15.605 14.453 23.562 19.906 Nov.................................................. 119.09 4.3064 2.2685 101.279 15.026 14.510 24.022 19.839 Dec................................................... 12120.74 4.3172 2.2670 100.326 14.936 14.601 24.000 19.657 1973—Jan.................................................... 127.16 4.3203 2.2665 100.071 14.904 14.536 23.986 19.671 Feb................................................... 135.46 4.8582 2.3981 100.440 15.407 15.386 24.728 20.987 Period ( G D m e e r u a m t r s k a c n ) h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ r s ) 1968................................................................................ 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 1969................................................................................ 6 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1970................................................................................ 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 1971................................................................................. 728.768 13.338 244.42 .16174 .28779 32.989 8.0056 7 28.650 1972................................................................................. 31.364 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 1972—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 10256.91 .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 Sept...................................................................... 31.318 13.016 244.10 .17199 .33209 36.110 8.0000 30.969 Oct....................................................................... 31.184 12.806 239.48 .17145 .33221 36.063 8.0000 30.869 Nov...................................................................... 31.215 12.540 235.05 .17109 .33224 36.124 8.0000 30.964 Dec...................................................................... 31.262 12.467 234.48 .17146 .33196 35.531 8.0000 30.962 1973—jan....................................................................... 31.288 12.494 235.62 .17079 .33136' 35.523 8.0000 31.084 Feb...................................................................... 33.273 12.910 242.75 14.17421 .36041 37.679 8.0000 33.119 United Period Z (d e N o a e l l l a w a n r) d N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o a fr n u ic d th a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r r w l a a i n n tz c d ­ ) (p K d o i o u n m n g d ­ ) 1968................................................................................ 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1970................................................................................ 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1971................................................................................ 113.71 14.205 3.5456 140.29 1.4383 19.592 824.325 244.42 1972................................................................................ 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—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 10256.91 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 Sept...................................................................... 119.33 15.209 3.7221 125.26 1.5754 21.146 26.403 244.10 Oct....................................................................... 119.21 15.141 3.7080 11124.47 1.5750 21.078 26.332 239.48 Nov...................................................................... 119.45 15.144 3.7140 127.52 1.5753 21.076 26.346 235.05 Dec...................................................................... 119.53 15.187 3.7248 127.57 1.5753 21.080 26.526 234.48 1973—jan....................................................................... 119.52 15.128 3.7280 127.55 1.5755 21.092 1326.820 235.62 Feb...................................................................... 126.87 16.038 3.8562 134.91 141.6355 21.935 29.326 242.75 1 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to 9 Effective Oct. 20, 1971, the Spanish peseta was revalued to 68.455 5.55 francs per U.S. dollar. per U.S. dollar. 2 A new Argentine peso, equal to 100 old pesos, was introduced on I o Effective June 23, 1972, the U.K. pound was floated. Jan. 1, 1970. Since Apr. 6, 1971, the official exchange rate is set daily by II South Africa repegged the rand at 127.32 cents Oct. 25, 1972. the Government of Argentina. Average for Feb. 1-27, 1972. 12 Effective Dec. 23, 1972, the Australian dollar was revalued to 127.50 3 On June 1, 1970, the Canadian Government announced that, for the cents. time being, Canada will not maintain the exchange rate of the Canadian Effective Jan. 23, 1973, the Swiss franc was floated. dollar within the margins required by IMF rules. 14 Effective Feb. 13, 1973, the Italian lira and Japanese yen have been 4 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 floated. per U.S. dollar. 5 Danish krone—Sept. 26, 1972, n.a.; Sept. 27 and 28 rates nominal. Note.—Effective Aug. 16, 1971, the U.S. dollar convertibility to gold 6 Effective Oct. 26, 1969, the new par value of the German mark was was suspended; as from that day foreign central banks did not have to set at 3.66 per U.S. dollar. support the dollar rate in order to keep it within IMF limits. 7 Effective May 10, 1971, the German mark and Netherlands guilder During December 1971, certain countries established central rates have been floated. against the U.S. dollar in place of former IMF parities. 8 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per Averages of certified noon buying rates in New York for cable transfers. U.S. dollar. For description of rates and back data, see “International Finance,” Digitized for FRASER Section 15 of Supplement to Banking and Monetary Statistics, 1962. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 CENTRAL BANK RATES □ MARCH 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Feb. 28, 1972 Rate Country 1972 1973 as of Feb. 28, Per Month 1973 cent effective Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Argentina........................ 18.0 Feb. 1972 18.0 Austria............................ 5.0 Jan. 1970 5.5 5.5 Belgium.......................... 4.5 Feb. 1972 4.0 4.5 5.0 5.0 Brazil.............................. 20.0 July 1969 20.0 Canada............................ 4.75 Oct. 1971 4.75 Ceylon............................ 6.5 Jan. 1970 6.5 Chile................................ 7.0 Jan. 1972 7.0 Colombia........................ 8.0 May 1963 8.0 Costa Rica...................... 5.0 June 1966 5.0 Denmark......................... 7.0 Jan. 1972 8.0 7.0 7.0 Ecuador........................... 8.0 Jan. 1970 8.0 Egypt............................... 5.0 May 1962 5.0 El Salvador..................... 4.0 Aug. 1964 4.0 Ethiopia........................... 6.50 Aug. 1970 6.50 Finland............................ 7.75 Jan. 1972 7.75 France............................. 6.0 Jan. 1972 5.75 7.5 7.5 Germany, Fed. Rep. of.. 3.0 Feb. 1972 3.5 4.5 5.0 5.0 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.................................. 7.0 Oct. 1969 7.0 Ireland............................. 4.81 Dec. 1971 5.19 6.19 7.19 7.44 7.44 Italy................................. 4.5 Oct. 1971 4.0 4.0 Jamaica........................... 5.0 Dec. 1971 6.0 7.0 7.0 Japan............................... 4.75 Dec. 1971 4.25 4.25 Korea............................... 13.0 Jan. 1972 13.0 Mexico............................. 4.5 June 1942 . 4.5 Morocco.......................... 3.50 Nov. 1951 . 3.50 Netherlands..................... 4.5 Jan. 1972 4.0 3.0 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 . 4.0 4.0 South Africa.................... 6.5 Mar. 1971 . 6.0 6.0 Spain................................ 5.0 Oct. 1971 • 5.0 Sweden............................ 5.0 Nov. 1971 . 5.0 5.0 Switzerland..................... 3.75 Sept. 1969 . 4.50 4.50 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............ 5.0 Sept. 1971 . 6.0 7.50 9.0 8.75 t8.75 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 Morocco—Various rates from 3 per cent to 4.6 per cent depending on type discounts or makes advances against eligible commercial paper and/or of paper, maturity, collateral, guarantee, etc. govt, securities for commercial banks or brokers. For countries with Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ more than one rate applicable to such discounts or advances, the rate tion, import substitution industries and manufacture of exports; 8 per shown is the one at which it is understood the central bank transacts cent for other agricultural, industrial and mining paper; the largest proportion of its credit operations. Other rates for some Philippines—6 per cent for financing the production, importation, and dis­ of these countries follow: tribution of rice and corn and 7.75 per cent for credits to enterprises en­ Argentina—3 and 5 per cent for certain rural and industrial paper, de­ gaged in export activities. Preferential rates are also granted on credits to pending on type of transaction; rural banks; and Brazil—8 per cent for secured paper and 4 per cent for certain agricultural f United Kingdom—On Oct. 9, 1972, the Bank of England announced: paper; “With effect from Friday October 13th the Bank’s minimum lending rate Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent will until further notice be the average rate of discount for Treasury bills for loans to make up reserve deficiencies. established at the most recent tender plus one half percent rounded to the Colombia—5 per cent for warehouse receipts covering approved lists of nearest one quarter percent above. Although the rate will therefore be products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent automatically determined by this formula it will for convenience be made for rediscounts in excess of an individual bank’s quota; known each Friday afternoon concurrently with and in the same manner Costa Rica—5 per cent for paper related to commercial transactions as the results of the Treasury bill tender. The regular weekly bank rate (rate shown is for agricultural and industrial paper); announcement will be discontinued from now on.” Therefore, the mini­ Ecuador—5 per cent for special advances and for bank acceptances for mum lending rate as of last Friday of the month will be carried in place of agricultural purposes, 7 per cent for bank acceptances for industrial Bank rate. purposes, and 10 per cent for advances to cover shortages in legal reserves; Venezuela—2 per cent for rediscounts of certain agriculture paper, 4 Vi Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. per cent for advances against government bonds, and SVl per cent for Honduras—Rate shown is for advances only. rediscounts of certain industrial paper and on advances against promissory Indonesia—Various rates depending on type of paper, collateral, com­ notes or securities of first-class Venezuelan companies. modity involved, etc.; Vietnam—10 per cent for export paper; treasury bonds are rediscounted Japan—Penalty rates (exceeding the basic rate shown) for borrowings at a rate 4 percentage points above the rate carried by the bond; and from the central bank in excess of an individual bank’s quota; there is a penalty rate of 24 per cent for banks whose loans exceed quan­ titative ceilings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ OPEN MARKET 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 * m Da o d y n a - y e t y o- 2 3 m P b b r o a i i l n m n ls k t , e hs3 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - C d b r l e a e a p n a t o e k ri s s s n i 4 * t g m Da o d y n a - e y t y o s - T 6 r d b e 0 a i a y - l s l 9 s s u 0 , 6 r y m Da 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 , r h y 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 1971. 3.62 3.76 6.41 5.57 4.93 3.84 5.84 4.54 6.10 4.34 3.76 5.24 1972. 3.55 3.65 6.06 5.02 4.83 3.84 3.04 4.30 2.15 1.97 4.81 1972—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 .98 5.00 Apr.. 3.65 3.68 4.62 4.30 3.82 2.50 4.81 2.75 3.77 1.84 .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 3.78 2.75 2.24 1.09 .86 4.75 Aug.. 3.47 3.54 6.71 5.79 5.13 5.25 3.76 2.75 4.48 .70 .60 4.75 Sept.. 3.57 3.52 7.18 6.44 5.27 5.25 3.89 2.75 4.83 1.11 .54 4.75 Oct.. 3.57 3.64 7.34 6.74 5.47 5.25 5.16 3.25 6.07 1.95 2.61 4.75 Nov.. 3.61 3.71 7.28 6.88 5.70 5.25 3.75 5.71 3.13 3.31 4.75 Dec.. 3.66 3.71 8.08 7.76 6.23 5.57 4.25 6.69 3.12 3.20 4.75 1973—Jan.. 3.76 3.72 8.76 8.49 7.66 6.55 5.00 Feb., 3.93 9.34 8.14 8.31 7.30 4.75 5.58 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers’ acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. dep 4 o D si a ts t . a for 1968 through Sept. 1971 are for bankers* allowance on Se N cti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m t e io n n t t a o n d B a b n a k c i k n g d a a n ta d , M se o e n e “ ta In ry te S rn ta at t i is o t n ic a s l , 1 F 9 in 62 a . nce,’ ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Date q K ( u U i a n o U d n g t j i . a . d S t t e o i . t d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) P d f ( ( 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 u A a o U d t j . a . S t t i . o on U S n ta i t t e e s d C S ( a f p a n o r v a e f o d ad r a) C d f ( ( d o a i + s - o n r c w ) l ) a o l d a a u o o r i r n n r a s d n t i C n ( c a f N e a n o n v a e f t o d t iv r a e ) basis) Canada basis 1972 Sept. 1.............. 5.81 4.48 1.33 -2.70 -1.37 3.49 3.41 4.48 -1.07 -.04 -1.11 8.............. 6.26 4.65 1.61 -2.61 -1.00 3.54 3.46 4.65 -1.19 .06 -1.13 15.............. 6.55 4.61 1.94 -2.79 -.85 3.54 3.46 4.61 -1.15 .00 -1.15 22.............. 6.61 4.60 2.01 -3.20 -1.19 3.57 3.49 4.60 -1.11 .04 -1.07 29.............. 6.53 4.48 2.05 -2.72 -.67 3.62 3.54 4.48 -.94 .20 -.74 Oct. 6.............. 6.53 4.62 1.91 -2.30 -.39 3.57 3.49 4.62 -1.13 .16 -.97 13.............. 6.60 4.78 1.82 -2.47 -.65 3.53 3.45 4.78 -1.33 .28 -1.05 20.............. 6.62 4.68 1.94 -2.62 -.68 3.56 3.48 4.68 -1.20 .08 -1.12 27.............. 6.80 4.65 2.15 -2.82 -.67 3.56 3.48 4.65 -1.17 .04 -1.13 Nov. 3.............. 6.74 4.63 2.16 -2.72 -.56 3.57 3.47 4.63 -1.14 -.08 -1.22 10.............. 6.77 4.64 2.13 -3.07 -.94 3.58 3.50 4.64 -1.14 .10 -1.04 17.............. 6.76 4.69 2.07 -2.59 -.52 3.61 3.53 4.69 -1.16 .12 -1.04 24.............. 6.84 4.77 2.07 -3.02 -.95 3.61 3.53 4.77 -1.24 .16 -1.08 Dec. 1.............. 7.05 4.82 2.23 -2.93 -.70 3.70 3.62 4.82 -1.20 .12 -1.08 8.............. 7.37 4.98 2.39 -3.03 -.64 3.70 3.62 4.98 -1.36 .26 -1.10 15.............. 7.33 4.97 2.36 -3.49 -1.13 3.67 3.59 4.97 -1.38 .24 -1.14 22.............. 8.32 5.09 3.23 -3.58 -.35 3.61 3.53 5.09 -1.56 .42 -1.14 29.............. 8.19 5.05 3.14 -3.54 -.40 3.66 3.58 5.05 -1.47 .44 -1.03 1973 Jan. 5.............. 8.17 5.05 3.12 -3.29 -.17 3.72 3.64 5.05 -1.41 .52 -.89 12.............. 8.15 5.19 2.96 -3.50 -.54 3.75 3.66 5.19 -1.53 .68 -.85 19.............. 8.08 5.42 2.66 -3.66 -1.00 3.78 3.69 5.42 -1.73 .96 -.77 26.............. 8.01 5.67 2.34 -3.65 -1.31 3.89 3.80 5.67 -1.87 1.08 -.79 Feb. 2.............. 8.00 5.69 2.31 -4.04 -1.73 3.93 3.84 5.69 -1.85 1.36 -.49 9.............. 7.98 5.30 2.68 -3.00 -.32 3.92 3.83 5.30 -1.47 1.48 .01 16.............. 7.96 5.31 2.65 -3.78 -1.13 3.88 3.79 5.31 -1.52 1.74 .22 23.............. 7.95 5.44 2.51 -3.39 -.88 3.91 3.82 5.44 -1.62 1.78 .66 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 GOLD RESERVES □ MARCH 1973 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 S n ta i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world 1965. 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969. 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 47 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 63 791 47 1971. '41,180 4.732 10,206 r26,240 192 90 259 729 1.544 46 22 792 47 1972—Jan... 4.732 10,206 192 90 260 729 1.544 46 21 792 47 Feb.., 5.303 9.662 192 90 260 729 1.544 46 21 792 47 Mar.. 41,260 5.304 9.662 '26,295 192 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 50 18 836 June. 44,835 5.761 10.490 28,585 208 130 283 792 1,682 50 16 834 July.. 5.761 10.490 208 130 285 793 1,682 50 16 834 Aug.. 5,765 10,488 208 130 283 792 1,672 50 16 834 Sept.. 44,890 5.777 10.487 28,625 208 152 283 792 1,648 50 16 834 Oct... 5.777 10.487 208 152 282 792 1,636 50 16 834 Nov.. 5.778 10.487 208 152 282 792 1,642 16 834 Dec.. * ®44*965 5.830 10.487 ®28,650 208 281 792 1,638 834 1973—Jan.®. 5.830 10.487 208 281 793 1,621 834 Ger­ E pe n r d i o o d f R C e h p in . a o , f lo C m o b ­ ia m D a e r n k ­ Egypt 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 (Taiwan) Rep. of 1965......................... 55 35 97 139 84 4,706 4,410 78 281 146 110 21 56 1966.......................... 62 26 108 93 45 5,238 4,292 120 243 130 106 23 46 1967.......................... 81 31 107 93 45 5,234 4,228 130 243 144 115 25 46 1968.......................... 81 31 114 93 45 3,877 4,539 140 243 158 193 79 46 1969.......................... 82 26 89 93 45 3,547 4,079 130 243 158 193 39 46 1970.......................... 82 17 64 85 29 3,532 3,980 117 243 131 144 16 43 1971.......................... 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 1972—Jan................. 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 Feb................ 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 Mar............... 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 Apr................ 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 May............... 87 15 69 92 53 3,826 4,437 132 264 142 156 17 47 June............... 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 July............... 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 Aug............... 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 Sept............... 87 16 69 92 53 3,826 4,436 132 264 142 156 17 43 Oct................. 87 16 69 92 53 3,826 4,436 132 264 142 156 17 42 Nov . . 87 16 69 92 53 3,826 4,436 132 142 156 17 Dec................ 87 16 69 53 3,826 4,459 133 142 156 17 1973—Jan.®............. 16 69 53 3,834 4,344 133 142 156 17 E pe n r d i o o d f Italy Japan Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ 1965......................... 2,404 328 52 182 68 2 158 21 1,756 31 53 67 38 1966.......................... 2,414 329 67 193 68 1 109 21 1,730 18 53 65 44 1967.......................... 2,400 338 136 193 68 31 166 21 1,711 18 53 20 60 1968.......................... 2,923 356 122 288 85 66 165 21 1,697 24 54 20 62 1969.......................... 2,956 413 86 288 85 63 169 21 1,720 25 54 25 45 1970.......................... 2,887 532 86 288 85 48 176 21 1,787 23 54 40 56 1971.......................... 2,884 679 87 322 85 58 184 21 1,909 33 55 40 67 1972—Jan................. 2,884 679 87 322 85 58 181 21 1,908 33 55 40 68 Feb............... 2,884 711 87 322 85 58 179 21 1,908 33 55 40 68 Mar............... 2,884 735 87 322 85 58 177 21 1,908 33 55 40 68 Apr................ 2,884 735 89 322 85 58 174 21 1,908 33 55 40 68 May............... 3,131 801 104 350 93 63 188 23 2,079 36 60 43 73 June.............. 3,131 801 98 350 93 63 188 23 2,079 36 60 41 72 July............... 3,131 801 94 350 93 63 188 23 2,079 36 60 41 72 Aug............... 3,131 801 94 350 93 63 188 23 2,079 36 60 41 72 Sept............... 3,130 801 94 350 93 63 188 23 2,078 36 60 41 72 Oct................. 3,130 801 94 350 93 63 188 23 2,078 36 60 41 72 Nov............... 3,130 801 94 350 93 63 23 2,059 36 60 41 71 Dec . ..... 3,130 801 94 350 93 63 2,059 37 60 71 1973—Jan.®............. 3,134 801 94 350 93 63 2,059 37 60 71 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ 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 Po g r a t l u­ A S r a a u b d i i a A So fr u i t c h a Spain Sweden Sw la i n tz d er­ T la h n a d i­ Turkey U K d n i o n i m t 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 t o t t r l l e . ­ ments 4 1965............................. 576 73 425 810 202 3,042 96 116 2,265 155 401 19 -558 1966.............................. 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 1967.............................. 699 69 583 785 203 3,089 92 97 1,291 140 401 22 -624 1968............................. 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 1969.............................. 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 1970.............................. 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 1971.............................. 921 119 410 498 200 2,909 82 130 775 148 391 51 310 1972—Jan..................... 921 119 403 498 200 2,909 82 130 778 146 391 51 332 Feb.................... 921 119 405 498 200 2,909 82 130 751 146 391 51 333 Mar................... 925 119 405 498 200 2,909 82 129 751 156 391 51 354 Apr.................... 925 119 412 498 200 2,909 82 127 751 156 391 51 347 1,004 129 471 541 217 3,158 89 127 816 169 425 56 365 June.................. 1,004 129 507 541 217 3,158 89 122 816 169 425 56 304 July................... 1,004 129 543 541 217 3,158 89 122 816 169 425 56 276 Aug................... 1,021 129 580 541 217 3,158 89 122 800 169 425 56 276 Sept................... 1,021 129 601 541 217 3,158 89 122 800 169 425 56 267 Oct.................... 1,021 129 636 541 217 3,158 89 122 800 169 425 56 267 Nov................... 1,021 129 662 541 217 3,158 89 122 800 169 425 56 255 Dec.................... 1,021 129 681 541 217 3,158 89 136 800 425 56 218 1973—Jan.*............... 129 706 220 3,162 89 136 425 56 218 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table, and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa North and South America Asia Other World Period produc­ tion i A So fr u ic th a Ghana Zaire U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra i g ca u ­ a Co b l i o a m­ India Japan P p h in il e ip s ­ t A ra u l s ia ­ 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 r24.6 6.2 63.5 84.3 6.9 r4.0 7.1 3.7 24.8 21.1 21.7 54.1 1971*........................... 1.098.7 24.4 6.0 52.3 79.1 5.3 3.7 6.6 4.1 27.0 22.2 23.5 1972*........................... 1.109.8 54.3 77.2 1971—Dec................... 85.7 5.9 .5 .5 .3 2.2 2.2 1972—Jan................... 95.3 6.5 .4 .7 .4 2.6 3.3 Feb................... 88.2 6.4 .4 .6 .3 2.5 2.5 Mar.................. 91.8 21.2 6.6 .5 .5 .3 2.6 2.0 Apr................... 93.2 7.5 .6 .3 2.4 2.4 May................. 94.4 6.8 .6 .4 2.4 2.3 June................. 94.3 21.0 6.2 .7 .3 2.5 July.................. 94.4 6.4 .5 2.8 Aug.................. 94.1 5.9 .6 2.8 Sept.................. 93.9 6.3 .6 Oct................... 94.2 6.3 .5 Nov.................. 91.5 6.0 Dec................... 84.3 6.3 i Estimated; excludes U.S.S.R., other Eastern European countries, 2 Quarterly data. China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 BANKING OFFICES □ MARCH 1973 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Mutual savings banks All Member Nonmember Type of office and type of change banks Total Total Na­ State Total Insured Non- Insured 1 Non­ tional insured insured Banks (head office): Dec. 31, 1934.......................................................... 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941.......................................................... 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 2........................................................ 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951.......................................................... 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1962.......................................................... 13,938 13,427 6,047 4,503 1,544 7,380 7,072 308 331 180 Dec. 31, 1963.......................................................... 14,078 13,569 6,108 4,615 1,493 7,461 7,177 284 330 179 Dec. 31, 1964.......................................................... 14,266 13,761 6,225 4,773 1,452 7,536 7,262 274 327 178 Dec. 31, 1965.......................................................... 14,309 13,804 6,221 4,815 1,406 7,583 7,320 263 328 177 Dec. 31, 1966.......................................................... 14,274 13,770 6,150 4,779 1,351 7,620 7,385 235 330 174 Dec. 31, 1967.......................................................... 14,222 13,721 6,071 4,758 1,313 7,650 7,439 211 331 170 Dec. 31, 1968.......................................................... 14,179 13,679 5,978 4,716 1,262 7,701 7,504 197 333 167 Dec. 31, 1969.......................................................... 14,158 13,662 5,871 4,669 1,202 7,791 7,595 196 330 166 Dec. 31, 1970.......................................................... 14,181 13,688 5,768 4,621 1,147 7,920 7,735 185 328 165 Dec. 31, 1971.......................................................... 14,273 13,784 5,728 4,600 1,128 8,056 7,875 181 326 163 Dec. 31, 1972.......................................................... 14,413 13,928 5,705 4,613 1,092 8,222 8,016 206 325 160 Branches, additional offices, and facilities: Dec. 31, 1934.......................................................... 3,133 3,007 2,224 1,243 981 783 783 126 Dec. 31, 1941.......................................................... 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 2....................................................... 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951.......................................................... 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1962.......................................................... 12,932 12,345 9,649 6,640 3,009 2,696 2,646 50 466 121 Dec. 31, 1963.......................................................... 14,122 13,498 10,613 7,420 3,193 2,885 2,835 50 502 122 Dec. 31, 1964.......................................................... 15,275 14,601 11,457 8,156 3,301 3,144 3,094 50 549 125 Dec. 31, 1965.......................................................... 16,471 15,756 12,298 8,964 3,334 3,458 3.404 54 583 132 Dec. 31, 1966.......................................................... 17,665 16,908 13,129 9,611 3,518 3,779 3,717 62 614 143 Dec. 31, 1967.......................................................... 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Dec. 31, 1968.......................................................... 19,911 19,013 14,553 10,985 3,568 4,460 4,414 46 729 169 Dec. 31, 1969.......................................................... 21,196 20,208 15,204 11,727 3,477 5,004 4,957 47 810 178 Dec. 31, 1970.......................................................... 22,727 21,643 16,191 12,536 3,655 5,452 5.404 48 891 193 Dec. 31, 1971.......................................................... 24,299 23,104 17,085 13,272 3,813 6,019 5,979 40 983 212 Dec. 31, 1972.......................................................... 25,977 24,622 17,954 13,974 3,980 6,668 6,623 45 1,113 242 Changes Jan.-Dec. 31,1972 Banks: New banks............................................................... 266 265 66 53 13 199 162 37 1 Suspensions............................................................... -2 -2 -2 -1 -1 Ceased banking operations.... ............................. -1 -1 -1 -1 Consolidations and absorptions: Banks converted into branches ......................... -109 -106 -44 -32 -12 -62 -59 -3 -3 Other.................................... ......................... -12 -10 -5 -4 -1 -5 -5 -2 Voluntary liquidations 3.......................................... -2 -2 -2 -2 Interclass changes: Nonmember to national............................ 12 12 -12 -12 Nonmember to State member ............. 6 6 -6 -6 State member to national .... 7 -7 State member to nonmember ........................... -36 -36 36 36 National to State member . .............. -1 1 National to nonmember.... ................. -22 -22 22 22 Noninsured to insured......... ......................... 5 -5 Net change................................................................. 140 144 -23 13 -36 167 142 25 -1 -3 Number of banks, Dec. 31, 1972............................ 14,413 13,928 5,705 4,613 1,092 8,223 8,017 206 325 160 Branches and additional offices: De novo.................................................................... 1,684 1,523 946 707 239 577 570 7 131 30 Banks converted....................................................... 110 107 68 60 8 39 39 3 Discontinued............................................................................... -130 -123 -95 -70 -25 -28 -27 -1 -5 -2 Sale of branch........................................................... -1 -1 -3 -1 -2 2 2 Interclass changes: Nonmember to national ... ......................... 59 59 -59 -59 Nonmember to State member............................. 53 53 -53 -53 State member to national.................................... 22 -22 State member to nonmember ........................... -111 -111 111 111 National to State member.................................... -28 28 National to nonmember . . ................. -57 -57 57 57 Noninsured to insured......................................... 1 -1 Facilities reclassified as branches .... 5 5 3 3 2 2 Other........................................................................ 18 15 13 13 2 2 4 -1 Net change................................................................. 1,686 1,526 876 708 168 650 645 5 130 30 Number of branches and additional offices, Dec. 31, 1972........................................................ 25,769 24,414 17,778 13,810 3,968 6,636 6,591 45 1,113 242 Banking facilities:4 Established............................................................. 3 3 3 3 Discontinued............................................................ -3 -3 -3 -2 -1 Facilities reclassified as branches ... -5 -5 -3 -3 -2 -2 Other ....................................................................... -3 -3 -4 -4 1 1 Net change................................................................. -8 -8 -7 -6 -1 -1 -1 Number of facilities Dec 31 1972 , .............. 208 208 176 164 12 32 32 1 Insured mutual savings banks figures include one to three member 3 Exclusive of liquidations incident to succession, conversion, and mutual savings banks, 1941 to 1962 inclusive, not reflected in total com­ absorption of banks. mercial bank figures. 4 Provided at military and other Govt, establishments through arrange­ 2 Series revised as of June 30,1947. The revision resulted in an addition ments made by the Treasury Dept. of 115 banks and nine branches. Note.—Beginning with 1959, figures include all banks in Alaska and Hawaii, but nonmember banks in territories and possesssions are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ FEDERAL RESERVE PAR LIST A 99 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other areas Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including other areas: Dec. 31, 19711.................. 13,702 23,296 13,440 23,126 5,728 17,121 7,712 6,005 262 170 Dec. 31, 1972.................... 13,822 24,850 13,643 24,733 5,705 18,001 7,938 6,732 179 117 F.R. districts, Dec. 31, 1972: Boston................................. 379 1,775 379 1,775 219 1,193 160 582 475 3,880 475 3,880 335 3,401 140 479 427 1,791 427 1,791 294 1,250 133 541 Cleveland............................. 778 2,195 778 2,195 463 1,793 315 402 738 3,503 713 3,423 363 2,162 350 1,311 25 30 1,742 1,860 1,693 1,801 575 1,133 1,118 668 49 58 Chicago............................... 2,613 2,589 2,613 2,589 939 1,696 1,674 893 St. Louis............................. 1,400 1,030 1,345 1,018 430 530 915 488 55 12 1,378 318 1,378 318 498 163 880 155 2,105 376 2,105 376 813 225 1,292 151 Dallas.................................. 1,385 290 1,335 274 633 143 702 131 50 16 402 5,244 402 5,244 143 4,312 259 932 State, Dec. 31, 1972:............. 277 334 277 334 109 244 168 90 10 70 10 70 5 62 5 8 15 374 15 374 4 265 11 109 252 193 197 181 81 114 116 67 55 12 156 3,258 156 3,258 63 2,866 93 392 244 35 244 35 140 22 104 13 63 498 63 498 27 318 36 180 18 110 18 110 6 27 12 83 14 112 14 112 12 104 2 8 575 60 575 60 256 13 319 47 Georgia............................... 437 483 437 483 71 314 366 169 Hawaii................................. 7 143 7 143 1 10 6 133 Idaho................................... 24 170 24 170 13 148 11 22 Illinois................................. 1,150 148 1,150 148 491 95 659 53 Indiana................................ 407 719 407 719 180 442 227 277 Iowa.................................... 668 344 668 344 150 101 518 243 Kansas................................. 607 76 607 76 197 40 410 36 Kentucky............................. 341 394 341 394 92 230 249 164 Louisiana............................ 238 443 153 369 60 237 93 132 85 74 Maine.................................. 43 248 43 248 25 182 18 66 Maryland............................ 112 595 112 595 46 363 66 232 Massachusetts..................... 155 813 155 813 95 613 60 200 Michigan............................. 331 1,330 331 1,330 204 1,089 127 241 Minnesota........................... 736 20 736 20 225 9 511 11 Mississippi........................... 181 406 181 406 45 176 136 230 Missouri.............................. 673 132 673 132 170 56 503 76 Montana............................. 146 12 146 12 96 9 50 3 Nebraska............................. 441 48 441 48 133 28 308 20 Nevada................................ 8 93 8 93 5 81 3 12 New Hampshire................. 77 78 77 78 49 64 28 14 New Jersey......................... 210 1,174 210 1,174 152 1,026 58 148 New Mexico....................... 71 150 71 150 40 95 31 55 New York . .... 299 2,698 299 2,698 233 2,535 66 2 163 North Carolina................... 86 1,331 71 1,304 24 677 47 627 15 27 North Dakota..................... 169 73 169 73 47 16 122 57 Ohio.................................... 505 1,448 505 1,448 335 1,218 170 230 Oklahoma........................... 437 84 437 84 207 57 230 27 Oregon................................ 45 380 45 380 8 270 37 110 Pennsylvania................................. 434 1,917 434 1,917 296 1,393 138 524 Rhode Island...................... 16 185 16 185 5 98 11 87 South Carolina................... 94 499 84 496 24 273 60 223 10 3 South Dakota..................... 159 102 159 102 59 72 100 30 Tennessee............................ 312 595 312 595 85 359 227 236 Texas................................... 1,237 94 1,223 94 581 29 642 65 14 Utah.................................... 52 159 52 159 16 114 36 45 Vermont.............................. 40 98 40 98 24 39 16 59 Virginia............................... 256 961 256 961 150 742 106 219 Washington......................... 88 609 88 609 29 512 59 97 West Virginia..................... 203 8 203 8 119 3 84 5 Wisconsin........................... 609 297 609 297 164 95 445 202 Wyoming............................. 71 2 71 2 55 1 16 1 Other Areas American Samoa 3............. 1 1 1 Puerto Rico 4..................... 14 204 14 204 19 14 185 Virgin Islands 4.................. 8 29 8 29 1 28 7 1 Guam 3............................... 1 13 1 13 8 1 5 1 American Samoa and Guam are excluded from Dec. 31, 1971, figures. Virgin Islands) are included above in the table as nonmember banks; and 2 Includes 16 New York City branches of three insured nonmember nonmember branches in Puerto Rico include eight branches of Canadian Puerto Rican banks. banks. 3 American Samoa and Guam assigned to the San Francisco district Note.—Includes all commercial banking offices in the United States, for check clearing and collection purposes. All member branches in Guam American Samoa, Guam, Puerto Rico, and the Virgin Islands on which are branches of California and New York banks. checks are drawn, including 208 banking facilities. Number of banks and 4 Puerto Rico and the Virgin Islands assigned to the New York District branches differs from that in the table on page A-98 of the Mar. 1973 for purposes of Regulation J, “Check Clearing and Collection.” Member Bulletin, because this table includes banks in the United States and other branches in Puerto Rico and all except eight in the Virgin Islands are areas but excludes banks and trust companies on which no checks are branches of banks located in California, New York, and Pennsylvania. drawn. Certain branches of Canadian banks (two in Puerto Rico and five in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 INTEREST RATES, 1972 □ MARCH 1973 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper1 paper bankers’ eral 3-month bills5 6-month bills5 9- to 12-month issues 5 Period, placed accept­ funds 3- to 5or Week ending directly, ances, rate3 year 90-119 4- to 6- 3- to 6- 90 days1 Rate Market Rate Market 1-year issues7 days months months2 on new yield on new yield bill (mar­ Other6 issue issue ket yield) 1972—Jan.............. 4.02 4.08 3.95 3.92 3.50 3.403 3.38 3.656 3.66 3.82 3.99 5.33 Feb............. 3.81 3.93 3.78 3.52 3.29 3.180 3.20 3.594 3.63 4.06 4.07 5.51 Mar............. 4.10 4.17 4.03 3.95 3.83 3.723 3.73 4.086 4.12 4.43 4.54 5.74 Apr............. 4.55 4.58 4.38 4.43 4.17 3.723 3.71 4.218 4.23 4.65 4.84 6.01 May............ 4.45 4.51 4.38 4.25 4.27 3.648 3.69 4.064 4.12 4.46 4.58 5.69 June............ 4.60 4.64 4.45 4.47 4.46 3.874 3.91 4.270 4.35 4.71 4.87 5.77 July............. 4.83 4.85 4.72 4.73 4.55 4.059 3.98 4.583 4.50 4.90 4.89 5.86 Aug............. 4.75 4.82 4.58 4.67 4.80 4.014 4.02 4.527 4.55 4.90 4.91 5.92 5.06 5.14 4.91 4.84 4.87 4.651 4.66 5.086 5.13 5.44 5.49 6.16 Oct.............. 5.21 5.30 5.13 5.05 5.04 4.719 4.74 5.118 5.13 5.39 5.41 6.11 Nov............. 5.18 5.25 5.13 5.01 5.06 4.774 4.78 5.079 5.09 5.20 5.22 6.03 Dec............. 5.40 5.45 5.24 5.16 5.33 5.061 5.07 5.287 5.30 5.28 5.46 6.07 1971—Dec. 25___ 4.63 4.75 4.50 4.40 3.89 4.023 4.02 4.263 4.26 4.38 4.30 5.43 1972—Jan. 1.... 4.43 4.50 4.50 4.18 4.05 3.731 3.73 3.952 4.00 4.11 4.15 5.27 8.... 4.28 4.38 4.20 4.10 3.57 3.735 3.60 4.043 3.92 4.03 4.11 5.31 15.... 4.05 4.10 3.98 3.88 3.71 3.109 3.17 3.375 3.43 3.65 3.92 5.20 22.... 3.93 3.98 3.85 3.88 3.54 3.276 3.31 3.452 3.58 3.64 3.94 5.32 29.... 3.88 3.88 3.80 3.85 3.43 3.493 3.46 3.754 3.71 3.90 4.00 5.47 Feb. 5.... 3.88 3.98 3.88 3.75 3.23 3.367 3.36 3.733 3.78 4.10 4.05 5.55 12.... 3.88 4.00 3.78 3.50 3.25 3.141 3.10 3.594 3.56 4.00 3.92 5.51 19.... 3.75 3.93 3.75 3.45 3.43 3.066 3.05 3.537 3.51 3.95 4.04 5.47 26.... 3.75 3.88 3.75 3.43 3.34 3.145 3.23 3.513 3.64 4.14 4.21 5.50 Mar. 4.... 3.83 3.90 3.80 3.60 3.18 3.446 3.45 3.762 3.78 4.18 4.19 5.50 11.... 3.88 4.00 3.88 3.73 3.43 3.553 3.57 3.796 3.86 4.21 4.22 5.57 18.... 4.15 4.20 4.03 4.03 3.88 3.845 3.87 4.195 4.27 4.51 4.64 5.84 25.... 4.25 4.30 4.13 4.13 3.91 3.920 3.82 4.322 4.27 4.50 4.72 5.83 Apr. 1---- 4.31 4.33 4.20 4.13 4.09 3.849 3.83 4.354 4.36 4.71 4.89 5.92 8.... 4.45 4.50 4.38 4.40 4.16 3.798 3.81 4.367 4.39 4.82 5.01 6.07 15.... 4.63 4.63 4.38 4.50 4.18 3.731 3.82 4.223 4.31 4.77 4.96 6.08 22.... 4.63 4.63 4.38 4.48 4.05 3.849 3.64 4.278 4.19 4.60 4.81 6.02 29.... 4.50 4.55 4.38 4.33 4.20 3.513 3.55 4.004 4.01 4.39 4.57 5.86 May 6.... 4.50 4.55 4.38 4.25 4.25 3.604 3.57 3.998 4.03 4.37 4.52 5.72 13.... 4.45 4.50 4.38 4.25 4.20 3.462 3.59 3.907 4.03 4.42 4.55 5.73 20.... 4.48 4.50 4.38 4.25 4.32 3.699 3.76 4.118 4.23 4.53 4.67 5.71 21.... 4.38 4.50 4.38 4.25 4.24 3.825 3.80 4.233 4.18 4.49 4.57 5.62 June 3---- 4.41 4.50 4.38 4.25 4.38 3.762 3.83 4.106 4.19 4.54 4.66 5.64 10.... 4.50 4.50 4.38 4.35 4.48 3.861 3.86 4.243 4.25 4.62 4.80 5.71 17.... 4.53 4.63 4.38 4.38 4.46 3.798 3.87 4.187 4.28 4.62 4.80 5.73 24.... 4.65 4.65 4.50 4.53 4.39 3.924 3.97 4.328 4.40 4.69 4.89 5.81 July 1.... 4.80 4.83 4.58 4.70 4.49 4.023 3.97 4.484 4.51 4.98 5.02 5.87 8.... 4.84 4.88 4.70 4.75 4.61 4.138 4.07 4.688 4.56 4.99 5.01 5.86 15.... 4.88 4.88 4.75 4.75 4.62 4.102 4.05 4.605 4.55 4.94 4.97 5.85 22.... 4.85 4.88 4.75 4.75 4.46 3.948 3.93 4.455 4.47 4.86 4.84 5.84 29.... 4.75 4.80 4.63 4.68 4.54 4.047 3.94 4.585 4.46 4.87 4.79 5.87 Aug. 5.... 4.68 4.73 4.58 4.63 4.56 3.794 3.79 4.298 4.30 4.78 4.72 5.85 12.... 4.63 4.70 4.50 4.63 4.69 3.928 3.86 4.431 4.38 4.75 4.71 5.85 19.... 4.75 4.85 4.58 4.63 4.87 3.956 3.90 4.464 4.46 4.75 4.78 5.87 26.... 4.85 4.88 4.63 4.75 4.75 4.058 4.13 4.623 4.70 5.02 5.05 5.94 Sept. 2___ 4.90 4.95 4.63 4.75 4.90 4.332 4.47 4.818 4.92 5.28 5.38 6.11 9.... 5.00 5.09 4.75 4.75 4.89 4.569 4.71 4.937 5.06 5.36 5.47 6.19 16.... 5.00 5.13 4.90 4.88 4.69 4.759 4.71 5.074 5.11 5.42 5.47 6.20 23.... 5.13 5.15 5.00 4.88 4.93 4.633 4.66 5.097 5.14 5.46 5.48 6.15 30.... 5.13 5.23 5.00 4.88 4.99 4.644 4.60 5.236 5.22 5.52 5.56 6.13 Oct. 7.... 5.18 5.28 5.00 4.95 5.15 4.601 4.66 5.082 5.16 5.46 5.51 6.11 14.... 5.25 5.31 5.13 5.00 5.09 4.743 4.79 5.159 5.16 5.39 5.43 6.10 21.... 5.25 5.33 5.13 5.10 4.91 4.818 4.78 5.127 5.12 5.38 5.42 6.11 28.... 5.22 5.31 5.19 5.13 5.01 4.712 4.73 5.105 5.10 5.34 5.30 6.10 Nov. 4___ 5.13 5.25 5.13 5.10 5.06 4.767 4.74 5.141 5.08 5.27 5.25 6.10 11.... 5.13 5.25 5.13 5.00 5.25 4.668 4.71 4.957 5.04 5.18 5.18 6.05 18.... 5.15 5.25 5.13 5.00 4.89 4.775 4.76 5.070 5.07 5.17 5.16 6.00 25.... 5.25 5.25 5.13 5.00 4.97 4.776 4.82 5.050 5.10 5.20 5.24 6.02 Dec. 2.... 5.25 5.25 5.13 5.00 5.03 4.886 4.88 5.178 5.18 5.25 5.35 6.04 9.... 5.28 5.38 5.13 5.10 5.17 4.945 5.00 5.230 5.25 5.27 5.39 6.05 16.... 5.33 5.40 5.18 5.13 5.29 5.099 5.05 5.309 5.27 5.22 5.42 6.04 23.... 5.50 5.50 5.35 5.20 5.38 5.087 5.15 5.297 5.36 5.26 5.49 6.09 30.... 5.56 5.59 5.38 5.25 5.34 5.111 5.13 5.313 5.34 5.39 5.55 6.12 1 Averages of the most representative daily offering rate quoted by 5 Bills quoted on bank discount rate basis. dealers. 6 Certificates and selected note and bond issues. 2 Averages of the most representative daily offering rate published by 7 Selected note and bond issues. finance companies, for varying maturities in the 90-179 day range. 3 Seven-day average for week ending Wednesday. Note.—Figures for U.S. Government securities are the revised series de­ 4 Except for new bill issues, yields are averages computed from daily scribed on p. A-35 of the Oct. 1972 Bulletin. closing bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ INTEREST RATES, 1972 A 101 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stock; State and local Seasoned issues Dividend/ Earnings/ price ratio price ratio Period, United Newor Week ending States issue By selected By (long­ Aaa rating group term) Total i Aaa Baa utility Total 1 Pre­ Com­ Com­ Aaa Baa Indus­ Rail­ Public ferred mon mon trial road utility 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 5.42 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 5.57 July..................... 5.57 5.51 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 Sept..................... 5.70 5.38 5.12 5.69 7.40 7.59 7.22 8.09 7.36 7.97 7.63 7.00 2.83 5.56 Oct....................... 5.69 5.24 5.03 5.45 7.38 7.59 7.21 8.06 7.36 7.97 7.63 7.03 2.82 Nov...................... 5.50 5.11 4.91 5.37 7.09 7.52 7.12 7.99 7.28 7.95 7.55 6.93 2.73 Dec...................... 5.63 5.13 4.91 5.39 7.15 7.47 7.08 7.93 7.22 7.91 7.48 6.92 2.70 1971—Dec. 25............... 5.68 5.18 5.00 5.40 7.74 7.23 8.36 7.41 8.12 7.89 6.83 3.02 1972—Jan. 1.............. 5.60 5.04 4.75 5.40 7.70 7.22 8.31 7.37 8.06 7.88 6.79 2.99 8.............. 5.61 5.05 4.75 5.40 7.18 7.67 7.19 8.27 7.36 8.02 7.86 6.68 2.97 15.............. 5.57 5.00 4.65 5.40 7.10 7.65 7.17 8.21 7.33 8.00 7.84 6.52 2.95 22.............. 5.61 5.16 4.90 5.50 7.18 7.63 7.16 8.18 7.31 7.95 7.82 6.49 2.94 29.............. 5.67 5.31 5.05 5.65 7.39 7.67 7.22 8.24 7.36 7.95 7.87 6.57 2.99 Feb. 5.............. 5.70 5.36 5.10 5.70 7.22 7.68 7.25 8.26 7.39 7.99 7.85 6.62 2.93 12.............. 5.71 5.26 5.00 5.60 7.44 7.70 7.29 8.25 7.42 8.00 7.84 6.71 2.91 19.............. 5.65 5.26 5.00 5.60 7.31 7.68 7.28 8.23 7.39 8.01 7.83 6.64 2.91 26.............. 5.63 5.29 4.95 5.60 7.35 7.67 7.26 8.21 7.35 8.01 7.83 6.71 2.92 Mar. 4.............. 5.62 5.31 5.00 5.60 7.32 7.67 7.25 8.21 7.35 8.03 7.82 6.74 2.86 11.............. 5.62 5.18 4.90 5.50 7.08 7.66 7.24 8.22 7.34 8.02 7.81 6.80 2.82 18.............. 5.67 5.30 5.00 5.60 7.24 7.66 7.22 8.24 7.34 8.02 7.81 6.78 2.85 25.............. 5.68 5.35 5.00 5.65 7.32 7.67 7.24 8.26 7.36 8.04 7.82 6.71 2.87 Apr. 1.............. 5.69 5.40 5.05 5.70 7.29 7.67 7.24 8.25 7.37 8.04 7.82 6.75 2.89 8.............. 5.73 5.49 5.20 5.80 7.34 7.67 7.25 8.22 7.37 8.02 7.81 6.86 2.82 15.............. 5.76 5.54 5.25 5.90 7.46 7.69 7.28 8.22 7.39 8.01 7.84 6.87 2.79 22.............. 5.76 5.50 5.20 5.90 7.60 7.74 7.33 8.26 7.46 8.06 7.89 6.94 2.82 29.............. 5.71 5.26 5.00 5.55 7.41 7.76 7.36 8.26 7.48 8.06 7.92 6.97 2.88 May 6.............. 5.69 5.36 5.10 5.70 7.40 7.73 7.34 8.22 7.45 8.01 7.89 6.91 2.92 13.............. 5.69 5.41 5.20 5.70 7.40 7.71 7.33 8.20 7.44 8.00 7.86 6.93 2.94 20.............. 5.64 5.35 5.15 5.60 7.29 7.72 7.30 8.25 7.44 8.02 7.89 6.89 2.90 27.............. 5.57 5.21 4.90 5.60 7.49 7.70 7.27 8.25 7.40 8.01 7.88 6.92 2.81 June 3.............. 5.56 5.15 4.85 5.50 7.22 7.67 7.23 8.22 7.36 7.98 7.86 6.86 2.83 10.............. 5.59 5.31 5.00 5.65 7.27 7.67 7.24 8.21 7.36 7.99 7.84 6.88 2.88 17.............. 5.59 5.39 5.10 5.75 7.35 7.67 7.25 8.21 7.36 7.99 7.84 6.97 2.86 24.............. 5.58 5.46 5.20 5.80 7.30 7.66 7.23 8.18 7.35 7.96 7.83 6.92 2.85 July 1.............. 5.61 5.45 5.20 5.80 7.42 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 7.58 7.19 8.15 7.32 8.01 7.63 6.87 2.81 9.............. 5.66 5.41 5.15 5.70 7.38 7.58 7.19 8.11 7.34 7.97 7.63 6.98 2.81 16.............. 5.68 5.38 5.10 5.70 7.34 7.59 7.23 8.09 7.36 7.96 7.63 7.02 2.84 23.............. 5.70 5.41 5.15 5.75 7.44 7.59 7.23 8.09 7.37 7.97 7.63 6.99 2.84 30.............. 5.75 5.33 5.08 5.60 7.42 7.60 7.24 8.08 7.37 7.99 7.63 7.01 2.82 Oct. 7.............. 5.73 5.25 5.05 5.45 7.44 7.60 7.23 8.08 7.37 7.96 7.64 7.02 2.81 14.............. 5.71 5.23 5.00 5.45 7.48 7.59 7.22 8.07 7.36 7.97 7.62 7.03 2.82 21.............. 5.70 5.28 5.05 5.50 7.30 7.59 7.21 8.06 7.36 7.98 7.63 7.06 2.86 28.............. 5.65 5.18 5.00 5.40 7.34 7.58 7.19 8.05 7.35 7.96 7.63 7.02 2.80 Nov. 4.............. 5.59 5.09 4.90 5.35 7.27 7.57 7.18 8.04 7.33 7.96 7.61 6.98 2.75 11.............. 5.51 5.18 5.00 5.40 7.55 7.16 8.02 7.31 7.96 7.58 6.99 2.74 18.............. 5.47 5.12 4.90 5.35 7.12 7.53 7.12 8.00 7.29 7.97 7.56 6.94 2.75 25.............. 5.48 5.08 4.85 5.35 6.99 7.49 7.09 7.95 7.25 7.93 7.50 6.90 2.70 Dec. 2.............. 5.53 5.10 4.90 5.40 7.05 7.47 7.07 7.96 7.22 7.91 7.49 6.86 2.71 9.............. 5.57 5.04 4.85 5.30 7.15 7.46 7.05 7.94 7.20 7.90 7.48 6.90 2.68 16.............. 5.60 5.11 4.90 5.35 7.21 7.47 7.08 7.94 7.22 7.91 7.48 6.94 2.67 23.............. 5.68 5.19 4.95 5.45 7.48 7.10 7.93 7.25 7.91 7.47 6.89 2.73 30.............. 5.70 5.19 4.95 5.45 7.48 7.11 7.90 7.25 7.89 7.48 6.93 2.71 i Includes bonds rated Aa and A, data for which are not shown sep­ compiled by the Board of Governors of the Federal Reserve System. Rates arately. Because of a limited number of suitable issues, the number for seasoned issues are averages of daily figures from Moody’s Investors of corporate bonds in some groups has varied somewhat. As of Dec. Service. 23, 1967, there is no longer an Aaa-rated railroad bond series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios Note.—Bonds: Monthly and weekly yields are computed as follows: are based on Wed. figures; earnings/price ratios are as of end of period. (1) U. S. Govt.: Averages of daily figures for bonds maturing or callable Preferred stock ratio is based on eight median yields for a sample of nonin 10 years or more; from Treasury Dept. (2) State and local govt.: General callable issues—12 industrial and two public utility; common stock ratios Digitized foor bFliRgaAtiSonEsR o nly, based on Thurs. figures; from Moody’s Investors on the 500 stocks in the price index. Quarterly earnings are seasonally http://fraserS.sertvloicuei. s(f3e)d C.oorrgpo/ rate: New-issue Aaa utility rates are weekly averages adjusted at annual rates. Federal Reserve Bank of St. Louis

A 102 BANK RESERVES AND RELATED ITEMS, 1972 □ MARCH 1973 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (Averages of daily figures; in millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities1 Treas­ Special ury Drawing cur­ Held Other Gold Rights rency Bought under Loans f Float 2 F.R. Total 3 stock certificate out­ Total out­ repur­ assets account stand­ right chase ing agree­ ment 1972—Jan................................ 70,687 70,300 387 20 3,405 1,177 75,415 10,132 400 7,656 Feb............................... 69,966 69,862 104 33 2,959 957 73,994 9,851 400 7,795 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............................... 71,858 71,732 126 438 3,345 957 76,676 10,410 400 8,137 Sept.............................. 70,252 70,135 117 514 3,723 894 75,451 10,410 400 8,183 Oct................................ 71,359 71,194 165 574 4,112 1,202 77,331 10,410 400 8,230 Nov.............................. 71,112 70,815 297 606 2,966 1,170 75,959 10,410 400 8,278 Dec............................... 71,094 70,790 304 1,049 3,479 1,138 76,851 10,410 400 8,293 Week ending—1971—Dec. 29 69,514 68,938 576 216 4,644 1,096 75,627 10,132 400 7,634 1972—Jan. 5....................... 70,658 69,517 1,141 57 4,260 1,078 76,258 10,132 400 7,626 12....................... 70,712 70,211 501 17 3,594 1,125 75,592 10,132 400 7,634 19....................... 71,130 70,560 570 14 3,353 1,181 75,833 10,132 400 7,649 26....................... 70,561 70,561 12 3,024 1,228 74,902 10,132 400 7,658 Feb. 2....................... 70,364 70,364 16 2,791 1,279 74,526 10,132 400 7,712 9....................... 70,002 70,002 42 2,759 1,307 74,180 10,132 400 7,771 16....................... 70,692 70,261 431 18 2,693 1,150 74,667 9,977 400 7,793 23....................... 70,326 70,326 14 3,020 574 74,000 9,588 400 7,811 Mar. 1....................... 68,622 68,622 67 3,447 662 72,863 9,588 400 7,818 8....................... 68,772 68,772 103 2,885 707 72,532 9,588 400 7,834 15....................... 69,110 68,813 297 13 2,932 749 72,901 9,588 400 7,848 22....................... 69,095 69,095 115 3,239 797 73,313 9,588 400 7,868 29....................... 69,744 69,615 129 153 2,686 850 73,516 9,588 400 7,882 Apr. 5....................... 70,697 70,109 588 141 2,841 891 74,706 9,588 400 7,894 12....................... 70,704 70,556 148 14 2,894 943 74,668 9,588 400 7,912 19....................... 70,811 70,811 43 3,265 996 75,196 9,588 400 7,920 26....................... 71,317 71,130 ........i87 279 3,113 1,045 75,853 9,588 400 7,936 May 3....................... 71,337 71,337 117 2,996 1,094 75.627 9,588 400 7,954 10....................... 71,524 71,524 87 3,197 1,135 76,030 9,940 400 7,971 17....................... 71,348 71,348 39 3,192 968 75.627 10,410 400 7,987 24....................... 71,303 71,303 63 3,355 752 75,554 10.410 400 8,008 ....................... 71,530 71,367 163 31254 2,951 807 75,630 10.410 400 8,011 June 7....................... 71,643 71,620 23 58 3,297 878 75,962 10,410 400 8,023 14....................... 71,728 71,728 94 2,950 896 75,747 10.410 400 8,032 21....................... 71,325 71,325 59 3,704 941 76,101 10.410 400 8 055 28....................... 71,658 71,648 10 129 3,497 1,002 76,367 10.410 400 8,057 July 5....................... 72,487 72,431 56 312 3,056 1,010 76,939 10,410 400 8,056 12....................... 71,785 71,688 97 227 3,769 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 71,731 348 3,656 670 76,474 10.410 400 8,151 30....................... 71,448 71,356 92 477 3,170 729 75,900 10.410 400 8,153 71,417 70,872 545 837 3,056 776 76,184 10,410 400 8,161 13 ..................... 69,408 69,408 149 3,783 824 74,225 10.410 400 8,177 20....................... 69,753 69,684 69 717 4,137 899 75,566 10.410 400 8,188 27....................... 70,389 70,389 550 3,832 982 75,811 10.410 400 8,196 Oct. 4....................... 71,350 70,939 411 436 3,460 1,068 76,406 10.410 400 8,198 11....................... 71,683 71,548 135 535 3,687 1,120 77,121 10,410 400 8,222 18....................... 71,279 71,279 434 4,530 1,203 77,518 10.410 400 8,230 25....................... 71,082 70,899 183 765 4,479 1,269 77,677 10.410 400 8,239 Nov. 1....................... 71,200 71,165 35 555 4,245 1,318 77,400 10,410 400 8,252 8....................... 71,735 71,105 630 959 3,706 1,349 77,896 10,410 400 8,268 15....................... 71,172 70,845 327 494 2,397 1,353 75,528 10,410 400 8,273 22....................... 70,880 70,641 239 419 2,803 958 75,155 10,410 400 8,282 29....................... 70,688 70,645 43 572 2,905 1,008 75,241 10,410 400 8,290 Dec. 6....................... 71,335 70,788 547 589 2,503 1,062 75,582 10,410 400 8,283 13....................... 70,910 70,547 363 805 3,016 1,083 75,903 10,410 400 8,290 20....................... 71,399 71,014 385 1,221 3,217 1,144 77,088 10,410 400 8,294 27....................... 70,646 70,646 1,118 4,636 1,186 77,656 10,410 400 8,299 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ BANK RESERVES AND RELATED ITEMS, 1972 A 103 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (Averages of daily figures; in millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank reserves, reserves Cur­ Treas­ with F.R. Banks Other Period or date rency ury Other F.R. in cash F. R. lia­ cir­ hold­ accounts bilities cula­ ings and With Cur­ tion Treas­ For­ Other2 capital F.R. rency ury eign Banks and Total4 coin4 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 27,454 5,694 33,148 ............Aug. 62,913 320 938 190 619 2,240 27,224 5,779 33,003 ............Sept. 63,385 362 1,369 200 631 2,336 28,088 5,715 33,803 ............Oct. 64,543 375 1,321 195 604 2,378 25,631 5,813 431,774 ............Nov.4 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 ............Dec. 61,448 448 2,336 471 708 2,301 26,081 5,843 31,924 ’Week ending—1971—Dec. 29 61,026 462 2,548 298 862 2,152 27,068 5,746 32,814 .1972—Jan. 5 60,689 473 2,760 171 727 2,155 26,784 6,009 32,793 ....................12 60,225 486 2,515 148 737 2,210 27,694 5,971 33,665 ...................19 59,663 508 3,084 160 724 2,259 26,695 5,897 32,592 ...................26 59,395 508 3,053 166 755 2,318 26,576 5,859 32,435 .Feb. 2 59,577 502 3,072 156 764 2,382 26,030 5,862 31,892 .......... 9 59,774 472 2,915 142 733 2,209 26,593 5,664 32,257 ..........16 59,736 372 2,015 167 592 2,216 26,702 5,121 31,823 ..........23 59,696 369 1,339 219 590 2,269 26,187 5,427 31,614 . Mar. 1 59,871 376 1,031 139 587 2,337 26,012 5,453 31,465 60,222 377 754 171 596 2,169 26,448 5,660 32,108 .15 60,257 391 978 189 617 2,191 26,546 5,012 31,558 .22 60,175 406 886 178 576 2,263 26,903 5,316 32,219 .29 60,508 414 1,240 206 657 2,353 27,210 5,394 32,604 . Apr. 5 60,858 403 1,273 255 627 2,389 26,764 5,581 32,345 ..........12 60,863 407 1,535 177 596 2,220 27,306 5,259 32,565 ..........19 60,633 398 2,413 152 586 2,283 27,312 5,354 32,666 ..........26 60,668 403 2,090 191 603 2,356 27,259 5,581 32,840 .May 3 61,010 748 2,518 136 574 2,305 27,049 5,708 32,757 ..........10 61,309 861 1,658 140 576 2,210 27,669 5,488 33,157 ..........17 61,208 380 2,265 149 557 2,271 27,542 5,104 32,646 ..........24 61,358 375 2,178 323 588 2,329 27,299 5,515 32,814 ..........31 61,632 361 2,559 134 611 2,415 27,083 5,594 32,677 .June 7 61,944 354 2,602 138 588 2,203 26,760 5,657 32,417 ...........14 61,958 355 2,435 150 575 2,253 27,240 5,356 32,596 ...........21 61,871 354 3,173 154 571 2,330 26,780 5,521 32,301 ..........28 62,384 362 2,166 252 722 2,372 27,548 5,595 33,143 .July 5 63,005 352 2,427 176 599 2,364 26,889 5,858 32,747 ...........12 62,829 330 2,388 199 621 2,264 27,926 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 27,507 5,315 32,822 ..........23 62,544 316 1,609 183 584 2,351 27,276 5,702 32,978 ...........30 62,868 306 1,215 176 601 2,424 27,566 5,796 33,362 . Sept. 6 63,227 304 162 195 589 2,190 26,544 5,976 32,520 ..........13 62,987 319 675 189 671 2,152 27,571 5,446 33,017 ...........20 62,670 336 1,611 198 589 2,217 27,197 5,856 33,053 ............27 62,757 356 1,306 192 663 2,278 27,863 5,868 33,731 .Oct. 4 63,332 357 1,517 192 664 2,331 27,760 5,950 33,710 ..........11 63,616 359 1,033 199 624 2,290 28,437 5,661 34,098 ..........18 63,484 366 1,462 221 615 2,348 28,230 5,325 33,555 ..........25 63,456 368 1,576 184 608 2,414 27,857 5,847 33,704 .Nov. 1 63,801 381 1,717 187 626 2,483 27,778 5,916 33,694 .......... 8 64,471 383 1,181 189 600 2,279 25,508 6,174 4 32,132 ..........154 64,806 374 1,196 198 595 2,332 24,747 5,342 30,539 ..........22 65,142 365 1,171 212 585 2,391 24,476 5,802 30,728 . ..........29 65,175 349 1,098 241 611 2,510 24,691 5,868 31,009 . Dec. 6 65 874 356 1,350 252 662 2,318 24,191 6,427 31,068 ..........13 352 1,389 662,17981 578 2,335 25,069 5,889 31,408 ..........20 66,575 346 1,689 280 591 2,385 24,899 6,092 31,441 ..........27 t Previously referred to as Discounts and advances. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 1 U.S. Govt, securities include Federal agency obligations. of-business for reserve period 2 weeks previous to report date. 2 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. 4 Beginning with week ending Nov. 15, 1972, includes $450 million of liabilities and capital” are shown separately; formerly, they were netted reserve deficiencies on which F. R. Banks are allowed to waive penalties Digitized forto FgRethAeSr EanRd reported as “Other F.R. accounts.” for a transition period in connection with bank adaptation to Regulation 3 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed J as amended effective Nov. 9,1972. http://frasert.hsetrloeaufitsefre. dB.eogrign/n ing with Jan. 1963, figures are estimated except for Federal Reserve Bank of St. Louis

A 104 BANK RESERVES AND RELATED ITEMS, 1972 □ MARCH 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (Averages of daily figures; in millions of dollars) Reserve city banks3 All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ r i o n w gs ­ Free i r n o g w s Free r i o n w gs ­ Free h T e o l t d a 1 l qu R ir e e ­ d ■Excess1 B F a a . n R t k . s T h o e t l a d l qu R ir e e ­ d2 Excess B F a a . n R t k . s T h o e t l a d l qu R ir e e ­ d2 Excess B F a a . n R t k . s 1972—Jan........... 32,865 32,692 173 20 153 6,066 6,058 1,503 ,512 -9 -9 Feb.......... 31,922 31,798 124 33 91 5,775 5,807 5 -37 1,446 ,442 4 4 Mar......... 31,921 31,688 233 99 134 5,815 5,758 71 -14 1,434 ,443 -9 -13 Apr.......... 32,565 32,429 136 109 27 5,938 5,940 48 -50 1,482 ,476 6 1 May........ 32,812 32,708 104 119 -15 6,045 6,031 50 -36 1,514 ,505 9 -3 June........ 32,539 32,335 204 94 110 5,956 5.922 6 28 1,488 ,489 -1 -1 July......... 33,021 32,874 147 202 -55 6,129 6,097 15 17 1.510 ,502 8 2 Aug......... 33,148 32,893 255 438 -183 6,000 5,994 116 -110 1.510 ,500 10 -1 Sept......... 33,003 32,841 162 514 -352 5,981 5,952 136 -107 1,512 ,513 -1 -13 Oct........... 33,803 33,556 247 574 -327 6,148 6,087 59 2 1,564 ,542 22 -23 Nov. . . . 31,774 31,460 314 606 -292 5,927 5.923 64 -60 1,438 ,452 -14 -33 Dec.......... 31,353 31,134 219 1,049 -830 6,005 6,025 301 -321 1,492 ,479 13 -42 Week ending— 1971—Dec. 29.. 31,924 31,610 314 216 98 5.793 5,799 -6 76 -82 1.511 1.445 66 45 1972—Jan. 5.. 32.814 32,502 312 57 255 6,200 6,120 80 80 1.520 1.526 -6 -6 12.. 32,793 32,688 105 17 88 6,055 6,141 -86 -86 1.569 1,549 20 20 19.. 33.665 33.447 218 14 204 6,369 6,267 102 102 1.526 1.563 -37 -37 26.. 32,592 32,400 192 12 180 5,766 5,848 -82 -82 1.475 1,459 16 16 Feb. 2.. 32,435 32,190 245 16 229 5.936 5,880 56 56 1,460 1,451 9 9 9.. 31,892 31,842 50 42 8 5,733 5,825 -92 22 -114 1,439 1.445 -6 -6 16.. 32,257 31,946 311 18 293 6,078 5,895 183 183 1,450 1,466 -16 -16 23.. 31,823 31,693 130 14 116 5,686 5,789 -103 -103 1,453 1,427 26 26 May 1.. 31,614 31,532 82 67 15 5,643 5,679 -36 -36 1,411 1,425 -14 -14 8.. 31,465 31,289 176 103 73 5,649 5,658 -9 99 -108 1,435 1,419 16 16 15.. 32,108 31,715 393 13 380 5,982 5,796 186 186 1,473 1.479 -6 -6 22.. 31,558 31,691 -133 115 -248 5,605 5,725 -120 -215 1.421 1,433 -12 -16 29.. 32,219 31,934 285 153 132 5,911 5,820 91 -3 1.442 1,436 6 Apr. 5.. 32,604 32,230 374 141 233 5,991 5,933 58 86 -28 1.521 1,472 49 49 12.. 32,345 32,179 166 14 152 5,963 5,953 10 10 1,446 1.482 -36 -36 19.. 32,565 32,624 -59 43 -102 5,947 6,055 -108 23 -131 1.498 1.489 9 9 26.. 32.666 32.448 218 279 -61 5,913 5,824 89 124 -35 1,441 1,456 -15 23 -38 May 3.. 32,840 32,704 136 117 19 5,862 5,927 -65 60 -125 1,513 1.480 33 33 10.. 32,757 32.566 191 87 104 6.019 5,978 41 49 -8 1.486 1.506 -20 -20 17.. 33,157 32,963 194 39 155 6,223 6,218 5 21 -16 1,566 1,535 31 31 24.. 32,646 32,560 86 63 23 6,007 5,994 13 39 -26 1.443 1.491 -48 -48 31.. 32.814 32,726 88 254 -166 5,975 6,001 -26 51 -77 1,520 1.496 24 54 -30 June 7.. 32,677 32.346 331 58 273 6.020 5,931 89 89 1,490 1.491 -1 14.. 32,417 32,308 109 94 15 5,889 5,920 -31 -31 1,506 1.491 15 15 21.. 32,596 32,384 212 59 153 6,047 5.975 72 54 1,492 1.497 -5 28.. 32,301 32,177 124 129 -5 5.793 5,809 -16 -22 1,480 1.476 4 July 5.. 33,143 32,815 328 312 16 6,171 6,097 74 42 32 1.532 1.507 25 25 12.. 32,747 32,524 223 227 -4 6,014 5,991 23 23 1.484 1.485 -1 -1 19.. 33,295 33,148 147 173 -26 6,184 6,209 -25 -25 1,519 1,530 -11 -11 26.. 33,040 32,961 79 172 -93 6,123 6,124 26 -27 1,501 1.489 12 26 -14 Aug. 2.. 33,139 32,897 242 363 -121 6,052 6,051 1 144 -143 1.485 1.498 -13 -24 9.. 33,133 33,003 130 287 -157 6.037 6,038 -1 39 40 1.533 1,518 15 -20 16.. 33,326 33,072 254 382 -128 6,138 6,102 36 76 -40 1,503 1.516 -13 -13 23.. 32,822 32,782 40 348 -308 5,860 5,935 -75 79 -154 1,497 1.485 12 12 30.. 32,978 32,751 227 477 -250 5,986 5,901 85 86 -1 1,472 1.482 -10 -10 Sept. 6.. 33,362 32.566 796 837 -41 6,213 5,885 328 260 68 1,568 1,488 80 76 13.. 32,520 32,635 -115 149 -264 5,866 5,949 -83 -83 1,483 1.516 -33 -37 20.. 33,017 32,811 206 717 -511 6,032 5,981 51 345 -294 1,557 1,528 29 1 27.. 33,053 33,016 37 550 -513 5,870 5,919 -49 59 -108 1.465 1,497 -32 -49 Oct. 4.. 33,731 33,501 230 436 -206 6,154 6,107 47 1,589 1.563 26 -13 11.. 33,710 33,352 358 535 -177 6,100 6,088 12 -24 1.570 1,547 23 -54 18.. 34,098 33,977 121 434 -313 6,312 6,295 17 17 1,560 1,591 -31 -48 25.. 33,555 33,405 150 765 -615 5.937 5.976 -39 185 -224 1.526 1,501 25 -37 Nov. 1.. 33,704 33,499 205 555 -350 6,002 5,964 38 2 36 1.499 1,514 -15 -22 8.. 33,694 33,570 124 959 -835 6.037 6,069 -32 192 -224 1,546 1.526 20 -11 151. 32,132 31.346 786 494 292 6,267 6,071 196 196 1.465 1.476 -11 -22 22.. 30,539 30,350 189 419 -230 5,845 5,863 -18 1 -19 1.421 1,395 26 11 29.. 30,728 30,388 340 572 -232 5,709 5,683 26 80 -54 1,374 1,404 -30 -53 Dec. 6.. 31,009 30,673 336 589 -253 5,930 5.909 21 43 -22 1.487 1,454 33 -42 13.. 31,068 30,824 244 805 -561 5,933 5.909 24 206 -182 1,438 1,462 -24 -37 20.. 31,408 31,202 206 1,221 -1,015 6,111 6,094 17 422 -405 1.511 1.477 34 13 27.. 31,441 31,252 189 1,118 -929 5,929 5,966 -37 278 -315 1.475 1,474 1 1 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 of F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. For other notes see opposite page. Total reserves held: Based on closing figures for balances with F.R. Banks and opening figures for allowable cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ BANK RESERVES AND RELATED ITEMS, 1972 A 105 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (Averages of daily figures; in millions of dollars) Other reserve city banks 3 Country banks 3 Period Reserves Reserves Borrow­ Borrow­ ings at Free ings at Free Total F.R. reserves Total F.R. reserves held Required 2 Excess Banks held Required2 Excess Banks 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 12,980 12,908 72 134 -62 12,658 12,491 167 177 -10 12,805 12,807 -2 195 -197 12,705 12,569 136 171 -35 13,131 13,107 24 240 -216 12,960 12,820 140 230 -90 12,057 12,058 -1 248 -249 12,022 12,027 -5 275 -280 11,729 11,771 -42 429 -471 11,699 11,859 -160 264 -424 Week ending— 12,521 12,453 68 58 10 12,099 11,913 186 61 125 .....................1971—Dec. 29 12,871 12,819 52 52 12,223 12,037 186 57 129 .....................1972—Jan. 5 12,898 12,927 -29 -29 12,271 12,071 200 17 183 ...........................................12 13,309 13,327 — 18 -18 12,461 12,290 171 14 157 ...........................................19 12,932 12,837 95 95 12,419 12,256 163 12 151 ...........................................26 12,686 12,688 — 2 -2 12,353 12,171 182 16 166 ................................Feb. 2 12,577 12,567 10 10 12,143 12,005 138 20 118 .............................................9 12,602 12,636 -34 1 -35 12,127 11,949 178 17 161 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 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 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 12,865 12,827 38 86 -48 12,447 12,341 106 46 60 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 12,712 12,706 6 12 -6 12,345 12,206 139 29 110 12,642 12,639 3 67 -64 12,386 12,253 133 56 77 12,924 12,846 78 126 -48 12,516 12,365 151 144 7 .................................July 5 12,827 12,814 13 78 -65 12,422 12,234 188 149 39 13,046 13,057 -11 64 -75 12,546 12,352 194 109 85 12,783 12,849 -66 33 -99 12,633 12,499 134 87 47 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 13,039 12,990 49 170 -121 12,646 12,464 182 136 46 12,837 12,844 -7 95 -102 12,628 12,518 110 174 -64 12,810 12,829 -19 120 -139 12,710 12,539 171 271 -100 12,914 12,720 194 329 -135 12,667 12,473 194 244 -50 12,614 12,744 -130 13 -143 12,557 12,426 131 132 -1 12,766 12,775 -9 241 -250 12,662 12,527 135 103 32 12,885 12,867 18 260 -242 12,833 12,733 100 214 -114 13,058 13,057 1 125 -124 12,930 12,774 156 225 -69 13,174 13,033 141 229 -88 12,866 12,684 182 193 -11 13,286 13,322 -36 233 -269 12,940 12,769 171 184 -13 13,114 13,046 68 272 -204 12,978 12,882 96 246 -150 13,061 13,042 19 261 -242 13,142 12,979 163 285 -122 .................................Nov. 1 13,009 13,049 -40 447 -487 13,102 12,926 176 289 -113 12,281 12,190 91 192 -101 11,669 11,609 60 291 -231 11,328 11,415 -87 136 -223 11,495 11,677 -182 267 -449 11,502 11,508 -6 226 -232 11,693 11,793 -100 243 -343 ...........................................29 11,502 11,544 -42 118 -160 11,640 11,766 -126 353 -479 11,632 11,666 -34 300 -334 11,615 11,787 -172 286 -458 11,728 11,808 -80 514 -594 11,608 11,823 -215 264 -479 11,793 11,874 -81 654 -735 11,794 11,938 -114 186 -330 1 Beginning with week ending Nov. 15, 1972, includes $450 million of 2 Beginning Sept. 12, 1968, amount is based on close-of-business fig­ reserve deficiencies on which F.R. Banks are allowed to waive penalties ures for reserve period 2 weeks previous to report date. for a transition period in connection with bank adaptation to Regulation J 3 As of Nov. 9,1972, the definition of reserve city and country banks was as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies changed (see July 1972 Bulletin, p. 626). The classifications employed included are (beginning with first statement week of quarter): Ql, $279 here are the same as prior to the change in definition, so these series are million. continuous over time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 WEEKLY REPORTING BANKS □ MARCH 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1972 (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank Wednesday i m l n o a v e n a e n n d s t s t s ­ Total b c m c a T o i n e m a o r k l ­ ­ s T c U u r s u e r . e r S a y ­ i s . ­ ­ O c t s u t i e h e r ­ s i e ­ r ot T he o rs Total i C n m t a c r o d n i i e a m a u d r l l s ­ ­ ­ A t c u u g r r l a ­ i l ­ T U u r a T e r . n S o a y d s . b ­ d r e o a k O l s e e e t r r h c s s s e . r T U u re . r S a y o s . ­ t T he o r O s se th cs e . r f P s i a a i n e n n l a r e d s s n s t . . i f tu in ti a O o n n t . h s er ties secs. secs. COS., etc. Jan. 5.......... 285,934 12,941 11,695 881 170 195 191,436 83,016 2,322 916 5,067 157 2,470 6,262 7,970 12.......... 282,712 11,152 9,912 730 254 256 190,566 82,555 2,315 914 4,829 152 2,489 6,227 7,958 19.......... 280,615 10,335 9,152 764 248 171 190,070 82,325 2,305 866 4,933 156 2,463 6,187 7,908 26.......... 279,671 10,513 9,263 841 246 163 189,027 81,512 2,315 880 5,021 161 2,479 6,098 7,782 Feb. 2.......... 281,037 10,718 9,633 723 227 135 189,771 81,782 2,315 1,106 5,093 161 2,479 6,058 7,802 9.......... 280,464 10,958 10,128 515 207 108 189,478 81,819 2,320 964 4,926 163 2,490 6,158 7,856 16.......... 281,544 11,625 10,995 386 177 67 190,115 82,320 2,316 624 5,225 179 2,505 6,207 7,923 281,250 10,496 9,568 582 238 108 190,667 82,228 2,332 771 5,388 182 2,494 6,219 7,961 Mar. 1................ 283,969 10,755 9,694 650 220 191 192,213 82,363 2,350 1,031 6,026 190 2,513 6,345 8,037 8.......... 283,777 9,919 8,932 734 172 81 191,742 82,484 2,364 900 5,802 175 2,537 6,094 8,007 15.......... 288,182 11,531 10,445 725 272 89 194,387 83,309 2,372 1,118 6,270 186 2,550 6,531 8,173 22.......... 287,254 11,475 10,350 670 228 227 193,952 83,261 2,393 869 6,183 174 2,538 6,343 8,203 29.......... 288,161 11,892 10,988 490 240 174 194,777 83,627 2,396 683 6,152 169 2,516 6,399 8,307 Apr. 290,346 12,173 11,315 491 193 174 195,803 83,789 2,401 639 6,546 170 2,520 6,595 8,271 12.......... 290,101 11,358 10,171 843 194 150 195,826 83,929 2,408 607 6,303 167 2,524 6,638 8,296 19.......... 291,360 11,442 10,143 887 234 178 197,540 84,604 2,436 656 6,696 166 2,528 6,626 8,446 287,885 10,091 9,206 616 157 112 197,182 84,664 2,456 466 6,258 194 2,520 6,524 8,400 May 291,808 11,134 10,032 652 325 125 199,494 85,283 2,468 894 7,004 184 2,542 6,426 8,484 10.......... 290,364 10,165 8,589 923 265 388 198,854 85,223 2,478 913 6,680 163 2,554 6,283 8,432 291,419 11,088 9,926 617 244 301 198,910 85,177 2,491 745 6,395 163 2,534 6,302 8,447 290,014 10,237 9,379 473 199 186 198,633 84,823 2,504 678 6,557 194 2,545 6,043 8,438 291,126 9,992 9,008 672 207 105 199,975 84,637 2,519 811 6,951 149 2,566 6,269 8,629 June 292,065 11,134 10,084 575 401 74 199,744 84,536 2,528 784 6,903 155 2,567 6,201 8,655 293,270 10,917 9,896 667 279 75 200,985 84,593 2,542 836 7,095 154 2,585 6,433 8,856 295,384 11,377 10,239 657 317 164 203,112 85,512 2,563 809 7,380 158 2,607 6,701 9,067 294,596 11,138 10,079 521 389 149 203,393 184,954 2,577 645 7,122 156 f2,665 f6,680 t9,363 July 298,175 12,901 11,683 638 359 221 205,460 85,427 2,594 589 7,397 158 2,703 7,148 9,619 297,303 12,250 9,566 2,228 269 187 205,099 85,268 2,597 1,319 7,118 160 2,687 6,572 9,614 296,351 11,951 10,916 536 287 212 205,108 85,300 2,603 653 7,129 155 2,680 6,718 9,642 295,960 11,559 10,555 597 250 157 204,812 85,151 2,597 717 7,088 167 2,687 6,504 9,683 Aug. 298,432 11,804 10,692 682 252 178 206,666 85,307 2,595 892 7,631 176 2,724 6,400 9,879 297,297 11,523 10,326 718 300 179 205,947 85,016 2,590 750 7,249 165 2,733 6,377 9,908 298,465 12,069 11,073 583 259 154 206,756 85,261 2,593 862 7,176 165 2,719 6,314 10,043 298,912 12,171 10,278 1,496 216 181 206,878 85,158 2,589 970 7,074 185 2,730 6,184 10,167 297,748 10,757 9,872 489 226 170 206,960 85,011 2,575 849 7,108 184 2,783 6,284 10,243 Sept. 302,765 13,018 10,647 1,909 292 170 209,019 85,340 2,575 1,415 7,370 193 2,802 6,573 10,417 304,308 13,376 11,557 1,220 352 247 209,323 85,682 2,576 1,734 7,273 182 2,796 6,366 10,481 302,728 11,551 10,085 865 291 310 210,400 86,366 2,584 1,166 7,582 183 2,800 6,363 10,593 303,182 11,433 9,703 1,255 291 184 210,736 86,631 2,602 932 7,336 185 2,826 6,324 10,706 Oct. 305,207 11,314 10,231 630 295 158 212,792 87,518 2,622 802 7,412 204 2,852 6,554 10,920 11.......... 306,019 12,088 11,144 507 289 148 213,206 87,722 2,626 893 7,164 189 2,845 6,735 10,881 304,480 11,333 10,201 589 392 151 213,688 87,762 2,652 1,041 7,526 188 2,834 6,386 11,035 304,690 9,497 8,716 427 262 92 214,258 87,528 2,676 863 7,501 189 2,837 6,417 11,167 Nov. 1................ 309,042 10,825 9,752 567 292 214 216,602 88,014 2,687 853 8,337 190 2,838 6,716 11,518 309,824 11,837 10,933 489 308 107 216,639 88,356 2,699 808 7,721 193 2,820 6,614 11,522 15.......... 313,429 13,615 11,117 1,973 353 172 218,311 88,496 2,712 1,459 7,940 190 2,832 6,707 11,736 311,490 11,865 10,728 463 378 296 217,670 88,501 2,730 1,003 7,585 193 2,825 6,507 11,619 314,146 12,480 11,445 626 284 125 218,272 88,642 2,745 1,265 7,551 203 2,849 6,539 11,710 Dec. 316,846 12,817 11,571 791 295 160 220,018 88,794 2,737 1,649 7,790 205 2,843 6,617 11,842 318,315 13,212 12,054 658 348 152 220,695 89,374 2,781 887 7,715 207 2,858 6,992 12,155 322,157 12,778 11,230 827 464 257 225,178 90,794 2,788 1,154 8,767 220 2,890 7,481 12,513 325,375 13,356 11,054 1,424 541 337 227,414 91,103 2,841 1,663 8,615 264 2,911 7,753 12,697 Dec. 27 . ... — 311 -11 -11 — 189 -92 4 -11 —6| For notes see p. A-l 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ WEEKLY REPORTING BANKS A 107 LIABILITIES OF LARGE COMMERCIAL BANKS, 1972— Continued (In millions of dollars) Investments U.S. Treasury securities Notes and bonds maturing— Wednesday For­ All Certif­ eign other Total Bills icates govts.2 Within 1 to After 1 yr. 5 yrs. 5 yrs. 894 15,548 28,968 4,368 3,909 16,564 4,127 924 15,419 28,148 3,675 3,968 16,432 4,073 ............................................12 887 15,274 27,843 3,873 3,913 16,215 3,842 ............................................19 39 912 15,129 27,821 3,877 3,899 16,210 3,835 .............................................26 39 910 15,308 27,881 3,909 4,024 16,199 3,749 39 905 15,043 27,497 3,488 4,030 16,199 3,780 ..............................................9 39 886 15,156 27,156 3,237 4,551 15,639 3,729 .............................................16 39 910 15,317 27,455 3,612 4,609 15,535 3,699 ............................................23 39 919 15,432 27,927 4,160 4,758 15,468 3,541 39 889 15,344 28,862 5,188 4,824 15,375 3,475 ..............................................8 39 908 15,536 28,431 4.858 4,836 15,232 3,505 .............................................15 39 912 15,504 27,989 4,582 4,824 15,209 3,374 ............................................22 39; 943 15,559 27,749 4,483 4,801 15,190 3,275 ............................................29 40. 955 15.710 28,628 4,889 4,836 15,683 3,220 40; 931 15,738 28,460 4,796 4,776 15,695 3,193 .............................................12 40; 934 15,910 28,170 4,652 4,738 15,682 3,098 ............................................19 40; 949 15,834 26,776 3,295 4,762 15,627 3,092 .............................................26 40. 933 16,198 27,076 3,615 4,840 15,525 3,096 40; 962 16,024 27,294 3,970 4,831 15,558 2,935 .............................................10 41, 952 15,989 27,326 4.072 4,619 15,550 3,085 .............................................17 41, 949 15,999 27,024 3.859 4,619 15,509 3,037 .............................................24 41, 942 16,455 26,958 3,844 4,941 15,192 2,981 .............................................31 41, 947 16,190 26,811 3,884 5,034 14,951 2,942 41, 976 16,249 26,943 4,040 5,065 14,985 2,853 .............................................14 41, 999 16,363 26,612 4,083 4,800 14,864 2,865 .............................................21 41, 1,032 16,354 26,009 3,625 4,786 14,928 2,670 .............................................28 42, 1,023 16,761 26,225 3,901 4,823 14,728 2,773 42, 1,018 16,429 25,696 3,523 4,780 14,694 2,699 ............................................12 42, 1,020 16,565 25,581 3,422 4,841 14,714 2,604 ............................................19 42, 1,011 16,423 25,795 3,497 5,010 14,663 2,625 ............................................26 42, 1,029 16,777 25,770 3,268 5,328 14,489 2,685 42, 1,050 16,657 25,466 3.072 5,308 14,415 2,671 ..............................................9 43, 1,043 16,774 25,246 2,997 4,281 14,860 3,108 43, 1,034 16,621 25,417 3,131 4,529 14,489 3,268 ............................................23 43, 1.078 16,511 25,651 3,566 4,581 14,324 3,180 .............................................30 43, 1.093 16,752 26,404 4,396 4,522 14,390 3,096 43, 1.079 16,510 26,861 4,925 4,555 14,340 3,041 .............................................13 43, 1,102 16,781 26,617 5,027 4,454 14,159 2,977 .............................................20 44, 1.093 16,874 26,307 4,772 4,439 14,112 2,984 ............................................27 44, 1,124 17,257 26,347 4,982 4,397 14,020 2,948 44, 1,117 17,319 26,026 4,814 4,359 13,941 2,912 ............................................11 44, 1,122 17,132 25,228 4,176 4,364 13,793 2,895 44, 1,128 17,324 25,955 4,052 4,353 14,668 2,882 ............................................25 44, 1,119 17,498 25,985 4,148 4,324 14,582 2,931 45, 1.131 17.710 25,669 3,838 4,369 14,540 2,922 ..............................................8 45, 1.132 17,587 26,313 3,703 4,268 15,377 2,965 ............................................15 45, 1,128 17,712 26,597 4,126 4,288 15,224 2,959 ............................................22 45, 1.146 17,545 27,925 5,568 4,458 15,077 2,822 ............................................29 45, 1.146 18,054 28,357 6,110 4,495 15,042 2,710 45, 1.146 17,825 28,185 5,957 4,514 15,005 2,709 45, 1,158 18,123 28,201 6,343 4,335 14,958 2,565 .............................................20 45, 1,161 18,726 28,645 6,808 4,413 14,874 2,550 .............................................27 14 3 12 ..................................Dec. 27 4 - 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 108 WEEKLY REPORTING BANKS □ MARCH 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1972— Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other Total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants 3 other partici­ other5 pation4 Jan. 5.................................. 52,589 8,483 36,604 1,608 5,894 33,802 19,747 3,744 7,578 826 16,191 367,822 52,846 8,489 37,024 1,574 5,759 32,925 20,438 3,959 7,345 885 15,986 364,250 19.................................. 52,367 8,201 36,813 1,560 5,793 34,370 21,173 3,795 7,333 890 15,762 363,938 26.................................. 52,310 8,242 36,664 1,548 5,856 33,094 19,897 3,796 6,902 923 15,723 360,006 Feb. 2.................................. 52,667 8,489 36,837 1,533 5,808 32,493 19,477 3,488 7,043 937 16,294 360,769 52,531 8,438 36,703 1,546 5,844 29,959 19,413 3,488 8,862 933 16,021 359,140 16.................................. 52,648 8,408 36,706 1,542 5,992 33,385 21,013 3,519 8,658 933 15,786 364;838 23................................... 52,632 8,412 36,667 1,516 6,037 32,783 19,509 3,742 9,399 933 15,881 363,497 Mar. 1.................................. 53,074 8,523 36,801 1,549 6,201 35,276 19,403 3,429 10,403 934 16,409 369,823 8.................................. 53,254 8,648 36,927 1,552 6,127 31,469 19,727 3,377 9,351 919 16,225 364,845 15.................................. 53,833 9,031 37,051 1,549 6,202 33,101 19,781 3,475 9,521 920 16,724 371,704 53,838 9,251 36,902 1,521 6,164 28,400 20,044 3,612 8,597 920 16,493 365,320 29.................................. 53,743 9,144 36,946 1,567 6,086 27,114 21,726 3,667 8,790 922 16,632 367,012 Apr. 5................................... 53,742 9,190 36,921 1,547 6,084 30,202 21,013 3,372 9,169 933 16,646 371,681 12.................................. 54,457 9,428 37,220 1,553 6,256 30,341 19,796 3,650 8,240 933 16,498 369,559 54,208 9,196 37,076 1,558 6,378 30,447 20,352 3,699 7,919 933 16,489 371,199 26................................... 53,836 9,188 37,004 1,567 6,077 29,413 23,252 3,760 8,118 943 16,635 370,006 May 3................................... 54,104 9,284 37,076 1,593 6,151 30,198 20,142 3,446 8,387 945 17,071 371,997 10.................................. 54,051 9,055 37,242 1,614 6,140 28,386 20,107 3,572 8,031 949 16,700 368,109 17................................... 54,095 9,117 37,289 1,594 6,095 30,125 21,814 3,633 8,609 951 16,616 373,167 24.................................. 54,120 9,041 37,408 1,577 6,094 27,629 20,079 3,743 8,447 952 16,417 367,281 31................................... 54,201 9,066 37,357 1,588 6,190 32,686 22,696 3,792 9,276 954 16,599 377,129 June 7................................... 54,376 9,329 37,326 1,552 6,169 27,720 20,593 3,500 8,633 968 16,336 369,815 14.................................. 54,425 9,195 37,350 1,603 6,277 30,664 20,753 3,780 9,151 954 16,447 375,019 21................................... 54,283 8,973 37,360 1,580 6,370 30,705 19,974 3,782 9,421 965 16,257 376,488 28................................... 54,056 8,795 37,361 1,572 6,328 29,235 20,568 3,943 8,803 965 16,434 374,544 July 53,589 8,449 37,301 1,556 6,283 35,552 21,326 3,456 10,428 961 16,471 386,369 12.................................. 54,258 8,856 37,584 1,553 6,265 30,062 17,799 3,894 8,872 986 16,275 375,191 19.................................. 53,711 8,534 37,401 1,527 6,249 29,879 21,005 3,775 9,212 992 16,533 377,747 53,794 8,881 37,084 1,532 6,297 27,844 20,500 3,893 8,756 991 16,484 374,428 Aug. 2.................................. 54,192 8,946 37,276 1,568 6,402 30,039 21,966 3,651 8,389 992 17,074 380,543 9.................................. 54,361 9,081 37,285 1,569 6,426 27,030 21,326 3,686 8,112 991 16,639 375,081 16.................................. 54,394 9,267 37,182 1,541 6,404 29,385 21,532 3,703 8,505 992 16,450 379,032 23.................................. 54,446 9,179 37,347 1,547 6,373 26,076 19,877 3,851 8,334 997 16,357 374,404 30.................................. 54,380 9,104 37,273 1,496 6,507 27,023 21,457 3,950 8,554 1,004 16,531 376,267 Sept. 6.................................. 54,324 9,089 37,151 1,496 6,588 30,900 18,419 3,664 9,820 1,007 16,787 383,362 13.................................. 54,748 9,175 37,456 1,495 6,622 29,215 18,701 3,952 8,824 1,007 16,577 382,584 20.................................. 54,160 9,059 36,971 1,515 6,615 30,052 21,819 3,898 8,865 1,010 16,688 385,060 27.................................. 54,706 9,479 37,052 1,553 6,622 27,680 19,415 4,003 9,271 1,010 16,752 381,313 Oct. 4.................................. 54,754 9,371 37,198 1,533 6,652 31,252 22,191 3,464 9,602 1,017 17,077 389,810 11.................................. 54,699 9,358 37,276 1,517 6,548 30,962 20,212 3,824 10,090 1,016 16,949 389,072 18.................................. 54,231 9,255 36,972 1,522 6,482 30,502 20,488 3,896 9,709 1,028 16,870 386,973 54,980 9,292 37,445 1,588 6,655 31,029 24,087 4,021 9,342 1,064 17,267 391,500 Nov. 1.................................. 55,630 9,383 37,651 1,565 7,031 33,089 20,173 3,818 9,457 1,067 17,601 394,247 8................................... 55,679 9,087 37,909 1,662 7,021 32,951 21,528 3,654 10,198 1,071 17,492 396,718 15.................................. 55,190 8,833 37,594 1,741 7,022 29,628 17,322 3,836 10,009 1,072 16,946 392,242 55,358 8,828 37,772 1,712 7,046 28,708 19,109 3,734 8,861 1,073 16,716 389,691 29.................................. 55,469 8,769 37,878 1,763 7,059 29,136 17,809 4,402 10,023 1,076 16,871 393,463 Dec. 6.................................. 55,654 8,898 37,907 1,771 7,078 28,841 18,423 3,837 10,309 1,084 17,295 396,635 13.................................. 56,223 8,969 38,382 1,800 7,072 28,178 21,174 4,275 9,766 1,084 17,239 400,031 20.................................. 56,000 9,039 38,100 1,766 7,095 31,299 19,927 4,184 10,535 1,094 17,379 406,575 27................................... 55,960 8,971 38,142 1,760 7,087 34,192 16,452 4,689 11,291 1,096 17,493 410,588 ^ Dec. 27.................................. -116 -113 -9 6 32 -9 -5 -21 -314 For notes see p. A-l 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ WEEKLY REPORTING BANKS A 109 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1972— Continued (In millions of dollars) Deposits Demand Time and savings1 Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc.2 cial checks ings sions banks 152,453106,524 7,083 4,120 22,819 834 764 2,549 7,760 141,316 55,190 61,054 17,484 2,140 4,980 ...........Jan. 5 148,690104,767 6,761 3,443 22,270 798 75C 2,495 7,406 142,098 55,388 61,440 17,567 2,282 4,988 ......................12 149,096103,490 6,500 4,584 21,816 663 756 2,454 8,833 142,432 55,605 61,571 17,551 2,287 4,930 ......................19 146,780 99,505 6,492 5,854 22,417 688 701 2,411 8,712 142,834 55,719 61,716 17,636 2,286 4,987 ......................26 146,564 99,963 7,714 4,531 22,211 739 716 2,488 8,202 142,532 55,870 61,364 17,534 2,262 4,993 ............Feb. 2 143,520 97,979 6,436 4,765 23,783 687 666 2,414 6,790 142,933 56,032 61,442 17,607 2,328 5,038 ........................9 145,910101,714 6,403 3,193 23,677 686 690 2,325 7,222 143,205 56,218 61,570 17,544 2,318 5,060 ......................16 146,174100,311 6,323 4,471 24,809 643 753 2,527 6,337 144,122 56,422 62,044 17,717 2,313 5,131 ......................23 151,788102,735 7,311 3,518 26,500 683 687 2,586 7,768 144,286 56,579 62,077 17,686 2,310 5,151 144,988 99,463 6,209 3,899 24,357 665 654 2,504 7,237 144,740 56,879 62,261 17,644 2,291 5,194 .......................8 152,257105,652 6,205 6,127 22,597 669 778 2,618 7,611 143,659 57,104 61,209 17,482 2,253 5,151 ......................15 144,487100,849 6,593 6,296 20,953 625 667 2,555 5,949 144,026 57,382 61,527 17,291 2,251 5,151 ......................22 143,920100,608 6,575 5,599 20,190 653 822 2,627 6,846 144,863 57,616 61,916 17,488 2,270 5,133 ......................29 149,108104,431 6,622 5,061 22,083 917 757 2,559 6,678 144,190 57,811 61,408 17,197 2,183 5,146 147,023 106,145 6,466 2,938 20,750 832 766 2,516 6,610 144,928 57,633 61,671 17,929 2,193 5,067 ......................12 148,943105,148 6,275 6,675 19,983 775 746 2,505 6,836 145,770 57,315 61,736 18,996 2,150 5,141 ......................19 146,768102,707 6,347 7,472 19,941 735 732 2,585 6,249 146,743 57,272 61,870 19,871 2,150 5,134 ......................26 148,502101,536 7,165 8,614 20,694 738 721 2,565 6,469 147,113 57,294 62,598 19,410 2,110 5,224 143,851 99,253 6,700 6,538 20,273 697 884 2,632 6,874 147,520 57,401 62,840 19,433 2,205 5,157 ......................10 147,349 102,291 6,606 7,513 20,650 655 798 2,653 6,183 148,124 57,523 63,323 19,359 2,264 5,173 ......................17 141,693 99,231 6,353 5,792 19,679 618 745 2,657 6,618 148,951 57,590 63,936 19,428 2,310 5,208 ......................24 150,176105,300 7,200 5,027 21,541 698 723 2,926 6,761 149,081 57,624 64,405 19,081 2,303 5,199 ......................31 140,989 100,936 6,213 3,284 20,221 721 730 2,644 6,240 149,683 57,722 64,813 19,048 2,363 5,280 146,084105,671 6,137 2,851 20,698 667 753 2,691 6,616 149,223 57,642 64,895 18,633 2,327 5,263 ......................14 147,987103,273 6,698 5,589 20,164 639 677 2,819 8,128 149,167 57,735 64,846 18,582 2,265 5,272 ......................21 146,199102,356 6,872 5,726 20,034 694 902 2,886 6,729 149,647 57,844 65,476 18,310 2,233 5,318 .....................28 157,680108,396 6,801 4,350 24,532 920 1,175 3,157 8,349 149,325 58,014 65,242 18,035 2,261 5,304 ...........July 5 146,908 105,801 6,312 3,242 20,729 846 958 2,773 6,247 149,863 58,004 65,645 18,092 2,323 5,335 ......................12 148,812104,317 5,882 6,326 21,691 728 1,038 2,898 5,932 150,871 57,983 66,483 18,204 2,442 5,286 ......................19 145,159102,608 5,889 5,332 20,396 694 893 2,988 6,359 151,296 57,918 66,882 18,174 2,482 5,375 ......................26 147,378104,095 6,744 4,472 20,957 747 953 2,959 6,451 152,111 57,892 67,564 18,334 2,474 5,375 140,911 101,382 5,994 3,401 20,140 700 800 2,926 5,568 152,984 57,924 68,458 18,331 2,433 5,371 ........................9 143,100104,684 6,261 1,981 20,195 688 774 2,984 5,533 153,472 57,901 68,933 18,297 2,480 5,394 ......................16 138,860102,011 5,806 2,048 19,350 632 715 2,719 5,579 154,459 57,867 69,792 18,458 2,501 5,368 ......................23 140,450102,374 6,038 1,715 20,357 682 864 2,999 5,421 155,495 57,827 70,796 18,488 2,542 5,335 148,159106,879 6,542 2,119 22,449 757 800 2,950 5,663 155,340 57,899 70,768 18,289 2,532 5,347 144,824106,646 5,990 1,739 20,933 698 791 2,760 5,267 155,706 57,873 70,860 18,388 2,624 5,462 .....................13 148,000105,517 6,176 5,687 20,249 650 790 3,035 5,896 155,173 57,895 70,215 18,281 2,847 5,433 146,133103,334 6,491 6,479 20,010 692 744 3,077 5,306 156,270 58,069 70,841 18,483 2,913 5,449 ......................27 150,884105,842 6,595 5,152 22,325 920 774 3,298 5,978 156,476 58,197 70,967 18,414 2,857 5,455 ...........Oct. 4 148,866107,553 6,115 2,119 22,395 846 898 3,058 5,882 156,838 58,182 71,399 18,301 2,823 5,618 ......................11 146,782106,323 5,890 3,109 21,162 775 879 3,230 5,414 157,373 58,207 72,051 18,211 2,742 5,641 149,977107,281 6,031 4,381 21,690 804 780 3,147 5,863 157,369 58,160 72,085 18,131 2,795 5,667 155,144109,379 7,403 3,888 21,947 992 849 3,328 7,358 156,686 58,113 71,778 17,780 2,800 5,696 ...........Nov. 1 151,842106,703 6,555 2,784 23,394 864 836 3,233 7,473 157,864 58,218 72,462 18,085 2,835 5,701 151,763110,154 6,931 3,200 20,819 757 818 2,994 6,090 157,575 58,179 72,271 17,785 2,853 5,846 147,861 108,163 6,506 3,831 19,054 700 773 3,095 5,739 158,586 58,237 72,916 18,007 2,914 5,869 ......................22 152,024108,876 6,483 4,824 20,620 657 829 2,849 6,886 158,858 58,184 73,103 18,008 2,945 5,955 154,028109,290 6,505 4,384 22,542 724 1,018 3,205 6,360 158,633 58,259 72,878 17,875 2,985 6,017 152,099111,905 6,751 1,615 20,698 662 983 3,078 6,407 159,867 58,162 73,162 18,767 2,997 6,161 160,530114,452 6,718 5,980 21,062 695 932 3,284 7,407 160,440 58,091 73,199 19,253 3,050 6,226 166,145 119,052 7,043 5,073 22,652 744 1,005 3,486 7,090 161,395 58,284 73,567 19,512 3,067 6,329 -174 -191 25 -6 -1 -1 -84 10 -94 2 -2 1 ...........Dec 27 For notes see p. A-l 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 110 WEEKLY REPORTING BANKS □ MARCH 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1972— Continued (In millions of dollars) Bo f r r r o o m w — ings Re fo se r— rves Memoranda Fed­ Large negotiable Wednesday c f e h p u e t a u r n c s a r . d e l ­ 7 s d B F a . n R k . s Others l O i e t a i t t b e c h s i . e l , 8 i r ­ Loans S i e t c ie u s r­ c c T a o a o p u c t i n ­ a t t a l s l j ( u T l g o a s r o a t o d t e n s a ­ d s s l ) 9 ( i u m T l n g o s a a v r o e t a n o d e e n t n d s - a s d t s s t s l 9 ) ­ j d u m e s D p a t a e o d e n d s ­ ­ d it s T a o n t d a i n l s c a l t v u im i d I n s e g e s t d o s u C e i d D n d e p ’ t s i o m I s s e i s t t u s o 1 e 1 d b f l t b G o i i r t a e a h a r r t b s e n n e o o i i k c i o s l g r i s h s f n ­ ­ IPC’s others es Jan. 5. 27.085 1,050 14,859 072 26,895 191,775 273,332 91.712 33,316 20,637 12.679 1,208 12. 26,208 1,069 15,007 097 27,002 190,943 271,937 90,052 33,715 20.947 12,768 1,721 19. 24,752 1,044 15,290 098 27,150 190,509 270,719 88,326 33,744 21,027 12,717 1,568 26. 22,795 1,032 15.165 103 27,221 189,475 269,606 85,415 33,850 21,031 12,819 1,419 Feb. 2. 23.653 2 1,060 15,401 106 27.366 190,047 270,595 87,329 33,356 20,572 12,784 1,301 9. 24,856 155 1,086 15,010 119 27,385 189,467 269,495 85,013 33,465 20,498 12,967 1,062 16. 27,302 1,086 15,783 120 27,348 189,912 269,716 85,655 33,436 20,518 12,918 1,006 23. 25,483 1,093 15,063 122 27,364 190,814 270,901 84,111 34,012 20.852 13,160 1,068 Mar. 1. 25,358 52 1,212 15,325 138 27,587 192,320 273,321 86,494 33,765 20,550 13.215 954 25,710 695 1,319 15,557 139 27,620 191,757 273,873 85,263 33,989 20,678 13,311 1,164 15. 26,609 15 1,365 16,041 135 27.546 194,446 276.710 90,432 32,810 19,651 13.159 1,263 22. 26,699 721 1,415 16,199 134 27,562 194,012 275,839 88.838 32,996 19,896 13,100 1,346 29. 28,232 991 1.119 16,012 148 27,656 194.545 276,037 91,017 33,456 20,132 13,324 1,532 Apr. 5. 29,691 41 1,192 15,437 132 27,820 195,388 277,758 91,762 32.845 19,839 13,006 1,130 12. 28,846 1,248 15,450 130 27,864 195,915 278,832 92,994 33,379 20,163 13.216 1,052 19. 27,237 238 1,211 15,812 132 27,786 197,749 280,127 91.838 33,964 20.480 13,484 1,279 26. 25,736 1,679 1,199 15,861 139 27,811 196,978 277,590 89,942 34,334 20,627 13,707 1.374 May 3. 26,683 446 1,141 15,889 143 28,009 199.546 280,726 88,996 34,306 20,949 13,357 1,240 10. 27,416 477 1.119 15,476 146 28,033 199,430 280,775 88,654 34,611 21,194 13,417 1,323 17. 28.362 181 1,089 15,882 137 27,972 198,955 280,376 89,061 34.927 21.553 13,374 1.544 24. 27,198 292 1,238 15,712 145 27,981 198,422 279,566 88,593 35,470 21.947 13,523 1,599 31. 27,209 1,516 1,254 15,481 154 28,187 199,954 281,113 90,922 35,498 22,090 13,408 1,465 June 2 3 9 0 , , 7 0 2 9 5 0 1 3 09 7 1 1 , , 4 4 5 8 5 2 1 1 5 5 , , 4 7 1 1 7 5 1 1 5 5 0 7 2 2 8 8 , , 2 1 1 6 6 0 2 1 0 9 0 9 , , 8 7 8 1 6 3 2 2 8 8 0 2 , , 9 2 0 5 0 4 8 91 9 , , 8 7 7 6 1 4 3 35 6 , , 8 1 1 0 3 6 2 2 2 2 . , 4 4 8 1 1 5 1 1 3 3 , , 6 3 2 9 5 8 1 1 , ,5 1 2 9 5 2 29,535 145 1,518 15,792 157 28,116 203,130 284,025 91,529 35,452 22,130 13,322 1,740 28,934 383 1,621 15,361 162 28,166 203,086 283,151 91,204 35.846 22,395 13,451 1,442 July 30,696 420 1,527 14,132 159 28,359 205,310 285,124 93,246 35,694 22,330 13.364 824 29.362 58 1,651 14,780 148 28,350 206,385 286,339 92,875 36,358 22,798 13,560 1.375 29,495 47 1,646 14,382 142 28,281 204,752 284,044 90,916 37,047 23,344 13,703 974 28.653 593 1,551 14,601 159 28,345 204,514 284,103 91,587 37,705 23,766 13,939 1,342 Aug. 2. 30,164 1,200 1,494 15,440 171 28,514 206,437 286,399 91,910 38,227 24,067 14.160 1,829 9. 31,162 777 1,530 14,933 166 28.547 205,802 285,629 90,340 38,936 24,862 14,074 1,250 16. 31,997 439 1,486 15.810 168 28,489 206.425 286,065 91,539 39,401 25,254 14,147 1,778 23. 30,285 809 1,555 15,661 167 28,537 207.339 287.202 91,386 40,312 26,047 14,265 1,845 30. 29,623 1,178 1,479 15,182 183 28,606 206,401 286,432 91,355 41,212 26,835 14,377 1,262 Sept. 6. 29.475 44 1,544 15.810 196 28,723 209,945 290,673 92,691 40.927 26,599 14,328 1,508 13. 31,991 80 1.513 15,479 184 28,736 209,742 291,351 92,937 41,164 26,597 14,567 1,187 20. 30,297 1,647 1.513 15,519 180 28,659 210.426 291.203 92,012 40,527 25.853 14,674 1,417 27. 27,735 687 1,410 16,142 189 28,676 211,016 292,029 91,964 41,219 26,314 14,905 2,023 Oct. 4. 31,083 935 1,760 15,554 176 28,871 212,356 293,457 92,155 41,183 26,348 14.835 1,639 11. 32,929 326 1,825 15.165 175 28,877 212,616 293,341 93,390 41,672 26,828 14,844 1.544 18. 31.476 351 1,914 16,048 170 28,788 213,252 292.711 92,009 42,035 27,355 14.680 1,890 25. 30,155 2,998 2,162 15,765 168 28,835 213,291 294,226 92,877 42,277 27,447 14,830 1,415 Nov. 1. 30,375 410 2,109 16,232 191 29,029 215,876 297,491 96,220 41,792 27,170 14,622 1,387 8. 34,436 1,332 2,181 15,702 192 29,098 215,705 297,053 92.713 42,919 27,879 15,040 1,338 15. 32,252 25 2,068 15,314 191 28,983 218,970 300,473 98,116 42,884 27,756 15,128 1,841 22. 32,744 118 2,026 14,981 199 29,106 216,883 298,838 96,268 43,701 28,400 15,301 1,464 29. 31,365 525 2,157 15,071 208 29,184 217,337 300,731 97,444 43,898 28,462 15,436 1,745 Dec. 6. 32,768 150 2,237 15,201 207 29,339 219,221 303,232 98,261 43,665 28,300 15.365 1,618 13. 36,026 898 2,128 15,372 202 29.367 219,727 304,135 101,608 44,173 28.554 15,619 1,705 20. 32,866 1,238 2,023 15,922 170 29,315 224,413 308,614102,189 44,355 28,520 15.835 1,807 27. 31.085 1,293 1,878 15,151 139 29,431 227.340 311,945 104,228 44,911 28,822 16,089 1,400 Dec. 27. -13 -1 -42 -189 -300 -199 f A reclassification of loans by a large bank on June 28, 1972, has re­ 1 Includes securities purchased under agreements to resell. sulted in a reduction of $357 million in commercial and industrial loans 2 Includes official institutions and so forth. and $18 million in real estate loans. These reductions were offset primarily 3 Includes short-term notes and bills. by increases in following types of loans (in millions): 4 Federal agencies only. To nonbank financial institutions: 5 Includes corporate stock. Personal finance, etc. $ 60 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. Other 187 7 Includes securities sold under agreements to repurchase. For purchasing or carrying securities 22 8 Includes minority interest in consolidated subsidiaries. To foreign govts., etc. 20 9 Exclusive of loans and Federal funds transactions with domestic com­ Other 81 mercial banks. I o All demand deposits except U.S. Govt, and domestic commercial >> These amounts represent accumulated adjustments originally made banks, less cash items in process of collection. to offset the cumulative effect of mergers. II Certificates of deposit issued in denominations of $100,000 or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ BUSINESS LOANS OF BANKS, 1972 A 111 “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) 1972 Industry Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Durable goods manufacturing: Primary metals................................................ 1,317 1,331 1,343 1,368 1,383 1,370 1,355 1,314 1,303 1,282 1,278 1,268 Machinery........................................................ 2,174 1,997 2,067 2,000 1,981 1,954 1,931 1,963 1,905 1,907 2,034 2,154 Transportation equipment............................. 1,604 1,551 1,492 1,388 1,368 1,359 1,243 1,265 1,307 1,201 1,256 1,205 Other fabricated metal products................... 696 681 686 693 682 675 710 713 679 680 707 720 Other durable goods....................................... 1,116 1,118 1,145 1,162 1,144 1,182 1,130 1,147 1,188 1,193 1,196 1,239 Nondurable goods manufacturing: Food, liquor, and tobacco............................. 985 935 907 903 941 926 1,029 1,079 1,079 1,182 1,191 1,234 Textiles, apparel, and leather........................ 555 568 639 655 635 654 690 677 711 731 699 723 Petroleum refining........................................... 848 818 757 714 727 694 685 653 679 658 681 698 Chemicals and rubber..................................... 1,320 1,303 1,214 1,228 1,235 1,224 1,190 1,178 1,159 1,190 1,143 1,153 Other nondurable goods................................. 1,008 972 978 959 927 872 856 879 918 939 913 894 Mining, including crude petroleum and natural gas................................................................ 2,927 2,891 2,872 2,870 2,785 2,667 2,723 2,724 2,679 2,748 2,726 2,685 Trade: Commodity dealers......................................... 119 132 126 126 128 109 110 107 107 123 121 121 Other wholesale.............................................. 891 858 905 867 888 883 886 845 864 876 880 894 Retail................................................................ 1,352 1,354 1,342 1,329 1,335 1,298 1,346 1,376 1,444 1,497 1,588 1,592 Transportation, communication, and other public utilities: Transportation................................................. 4,388 4,305 4,374 4,391 4,276 4,305 4,234 4,188 4,086 4,078 4,070 4,180 426 410 434 454 420 497 511 510 561 537 549 682 Other public utilities....................................... 1,280 1,166 1,137 1,138 1,195 1,406 1,455 1,623 1,688 1,759 1,825 1,975 Construction........................................................ 1,261 1,331 1,421 1,380 1,375 1,408 1,397 1,456 1,550 1,520 1,528 1,558 Services................................................................ 3,559 3,563 3,674 3,611 3,573 3,719 3,760 3,826 3,862 3,951 3,999 4,026 All other domestic loans.................................... 1,528 1,584 1,683 1,782 1,764 1,423 1,532 1,471 1,554 1,459 1,532 1,597 Foreign commercial and industrial loans......... 2,000 1,902 1,944 1,986 2,000 2,038 2,033 2,069 2,143 2,177 2,264 2,366 Total loans................................................... 31,354 30,770 31,140 31,004 30,762130,663 30,806 31,063 31,466 31,688 32,180 32,964 Note.—Figures are for the last Wednesday of the month. COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) 1972 Industry 1 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Durable goods manufacturing: Primary metals................................................ 2,006 2,028 2,066 2,081 2,140 2,138 2,059 1,985 1,989 2,032 2,021 2,021 Machinery........................................................ 4,231 4,118 4,186 4,335 4,285 4,255 4,196 4,170 4,119 4,036 4,222 4,512 Transportation equipment............................. 2,574 2,627 2,638 2,609 2,482 2,363 2,247 2,221 2,268 2,177 2,128 2,055 Other fabricated metal products................... 1,635 1,627 1,693 1,718 1,698 1,703 1,698 1,702 1,767 1,783 1,746 1,745 Other durable goods....................................... 2,476 2,503 2,599 2,716 2,767 2,815 2,818 2,826 2,922 2,923 2,858 2,873 Nondurable goods manufacturing: Food, liquor, and tobacco............................. 2,814 2,799 2,723 2,608 2,606 2,559 2,703 2,732 2,747 2,944 3,100 3,325 2,189 2,271 2,472 2,607 2,753 2,821 2,934 2,993 3,054 3,012 2,870 2,741 1,138 1,140 1,086 1,051 1,062 998 982 939 932 895 902 977 Chemicals and rubber..................................... 2,137 2,122 2,136 2,148 2,155 2,113 2,019 1,906 1,885 1,889 1,809 1,774 1,735 1,704 1,757 1,741 1,706 1,665 1,667 1,667 1,703 1,733 1,727 1,693 Mining, including crude petroleum and natural gas................................................................ 3,731 3,628 3,657 3,692 3,662 3,670 3,620 3,672 3,651 3,677 3,642 3,640 Trade: Commodity dealers......................................... 1,644 1,568 1,483 1,476 1,405 1,255 1,173 1,230 1,299 1,372 1,562 1,725 4,324 4,264 4,290 4,347 4,363 4,423 4,452 4,421 4,507 4,629 4,594 4,614 4,075 4,090 4,252 4,377 4,505 4,565 4,602 4,635 4,720 5,075 5,320 5,196 Transportation, communication, and other public utilities: Transportation................................................ 5,614 5,564 5,588 5,648 5,576 5,583 5,533 5,412 5,346 5,400 5,392 5,520 1,394 1,353 1,243 1,328 1,373 1,376 1,600 1,583 1,678 1,784 1,734 1,797 Other public utilities...................................... 2,683 2,622 2,488 2,511 2,675 2,664 2,762 2,938 3,078 3,203 3,325 3,502 3,744 3,906 3,970 4,030 4,095 4,236 4,323 4,398 4,561 4,613 4,615 4,630 7,946 8,009 8,178 8,360 8,343 8,522 8,584 8,531 8,536 8,720 8,837 9,032 All other domestic loans.................................... 5,419 5,528 5,708 5,814 5,960 5,752 5,776 5,760 5,641 5,661 5,603 5,701 Bankers’ acceptances.......................................... 2,109 1,916 1,833 1,658 1,661 1,494 1,415 1,288 1,243 1,315 1,331 1,454 Foreign commercial and industrial loans......... 3,245 3,204 3,257 3,269 3,334 3,365 3,433 3,445 3,484 3,518 3,644 3,805 68,863 68,591 69,303 70,124 70,606 70,335 70,596 70,454 71,130 72,391 72,982 74,332 Total commercial and industrial loans of large 82,352 82,037 83,008 84,247 85,029 184,899 85,287 85,151 86,005 87,633 88,402 90,016 For Wednesday figures and notes, see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 BUSINESS LOANS OF BANKS, 1972 □ MARCH 1973 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Wednesday Industry Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. Mar. 5 12 19 26 2 9 16 23 1 15 22 29 Durable goods manufacturing: Primary metals.................................. 2,035 1,994 1,995 1,999 2,040 2,017 2,024 2,032 2,050 2,047 2,082 2,081 2,068 Machinery.......................................... 4,215 4,257 4,275 4,177 4,073 4,116 4,184 4,100 4,070 4,096 4,234 4,248 4,283 Transportation equipment................ 2,586 2,583 2,566 2,561 2,603 2,565 2,653 2,689 2,626 2,602 2,648 2,644 2.670 Other fabricated metal products ... 1,661 1,643 1,630 1,606 1,619 1,627 1,631 1,630 1,665 1,663 1,713 1,699 1,723 Other durable goods......................... 2,496 2,500 2,463 2,451 2,452 2,503 2,528 2,528 2,526 2,570 2,611 2,639 2,650 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,821 2,812 2,835 2,789 2,826 2,797 2,773 2,801 2,770 2,768 2,729 2,687 2,662 Textiles, apparel, and leather........... 2,210 2,174 2,185 2,187 2,218 2,239 2,301 2,326 2,325 2,386 2,531 2,541 2,578 Petroleum refining............................. 1,183 1,119 1,122 1,129 1,151 1,149 1,127 1,135 1,127 1,107 1,070 1,047 1,077 Chemicals and rubber....................... 2,190 2,147 2,125 2.084 2,108 2,105 2,140 2,134 2,145 2,117 2,134 2,144 2,139 Other nondurable goods................... 1,757 1,731 1,743 1,708 1,700 1,698 1,714 1,705 1,739 1,760 1,766 1,762 1,758 Mining, including crude petroleum and natural gas.................................. 3,734 3,743 3,778 3,669 3,669 3,632 3,607 3,604 3,641 3,642 3,657 3,675 3.670 Trade: Commodity dealers.................. 1,641 1,672 1,641 1,623 1,646 1,621 1,536 1,469 1,461 1,477 1,501 1,500 1,475 Other wholesale........................ 4,320 4,319 4,337 4,320 4,286 4,283 4,227 4,261 4,262 4,247 4,277 4,332 4,333 Retail......................................... 4,049 4,073 4,093 4.085 4,016 4,040 4,135 4,169 4,191 4,204 4,270 4,210 4,387 Transportation, communication, & other public utilities: Transportation................................... 5,728 5,609 5,569 5,548 5,547 5,551 5,594 5,563 5,570 5,591 5,568 5,607 5,602 Communication................................. 1,437 1,456 1,355 1,326 1,361 1,350 1,357 1,342 1,251 1,245 1,222 1,257 1,240 Other public utilities......................... 2,737 2,734 2,687 2,575 2,656 2,628 2,626 2,578 2,580 2,534 2,486 2,444 2,396 Construction.......................................... 3,712 3,748 3,771 3,745 3,840 3,894 3,950 3,938 3,909 3,947 4,032 3,985 3,976 Services.................................................. 7,973 7,950 7,913 7,948 7,974 7,944 8,057 8,061 8,076 8,111 8,188 8,240 8,274 All other domestic loans...................... 5,405 5,370 5,457 5,443 5,473 5,538 5,544 5,556 5,662 5,641 5,732 5,768 5,735 Bankers’ acceptances............................ 2,268 2,160 2,072 1,938 1,930 1,911 1,926 1,897 1,917 1,899 1,890 1,710 1,751 Foreign commercial & industrial loans 3,251 3,258 3,262 3,207 3,206 3,220 3,213 3,178 3,226 3,233 3,277 3,245 3,306 Total classified loans....................... 69,409 69,052 68,874 68,118 68,394 68,428 68,847 68,696 68,789 68,887 69,618 69,465 69,753 Total commercial & industrial loans of large commercial banks............... 83,016 82,555 82,325 81,512 81,782 81,819 82,320 82,228 82,363 82,484 83,309 83,261 83,627 Wednesday Industry Apr. Apr. Apr. Apr. May May May May May June June June June 5 12 19 26 3 10 17 24 31 7 14 21 28 Durable gooas manufacturing: Primary metals................................. 2,076 2,081 2,088 2,078 2,145 2,140 2,148 2,138 2,130 2,138 2,149 2,169 2,097 Machinery......................................... 4,263 4,318 4,391 4,366 4,348 4,292 4,276 4,245 4,264 4,281 4,225 4,305 4,208 Transportation equipment............... 2,658 2,638 2,609 2,529 2,532 2,540 2,485 2,441 2,412 2,376 2,358 2,368 2,352 Other fabricated metal products. .. 1,718 1,722 1,727 1,705 1,702 1,712 1,709 1,687 1,680 1,688 1,707 1,717 1,702 Other durable goods........................ 2,674 2,720 2,744 2,726 2,773 2,776 2,776 2,751 2,758 2,797 2,808 2,821 2,835 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,672 2,578 2,596 2,585 2,670 2,612 2,619 2,570 2,562 2,534 2,479 2,602 2,620 Textiles, apparel, and leather.......... 2,606 2,574 2,612 2,634 2,704 2,766 2,777 2,748 2,771 2,785 2,803 2,836 2,860 Petroleum refining............................ 1,104 1,054 1,022 1,025 1,077 1,081 1,067 1,068 1,020 1,030 1,034 936 991 Chemicals and rubber..................... 2,127 2,187 2,141 2,138 2,134 2,145 2,190 2,150 2,158 2,100 2,102 2,133 2,119 Other nondurable goods.................. 1,750 1,718 1,756 1,738 1,758 1,707 1,690 1,685 1,688 1,658 1,668 1,669 1,664 Mining, including crude petroleum and natural gas................................. 3,698 3,700 3,691 3,681 3,648 3,657 3,639 3,685 3,680 3,678 3,702 3,698 3,604 Trade: Commodity dealers................. 1,494 1,482 1,484 1,444 1,439 1,436 1,403 1,391 1,355 1,311 1,278 1,258 1,172 Other wholesale....................... 4,347 4,325 4,354 4,362 4,356 4,371 4,371 4,352 4,363 4,381 4,384 4,488 4,438 Retail........................................ 4,317 4,321 4,418 4,452 4,471 4,483 4,523 4,528 4,518 4,509 4,574 4,649 4,527 Transportation, communication, & other public utilities: Transportation................................. 5,656 5,619 5,642 5,674 5,615 5,594 5,595 5,521 5,556 5,558 5,555 5,58* 5,632 Communication................................ 1,293 1,328 1,344 1,346 1,416 1,394 1,387 1,381 1,285 1,301 1,353 1,414 1,435 Other public utilities........................ 2,453 2,429 2,532 2,632 2,743 2,670 2,679 2,678 2,604 2,639 2,615 2,756 2,647 Construction......................................... 3,978 4,024 4,056 4,062 4,062 4,085 4,084 4,115 4,130 4,187 4,192 4,264 4,300 Service................................................... 8,293 8,342 8,414 8,392 8,359 8,369 8,346 8,334 8,307 8,402 8,439 8,609 8,638 All other domestic loans..................... 5,760 5,798 5,856 5,844 6,002 5,952 5,988 5,917 5,942 5,791 5,789 5,831 5,596 Bankers’ acceptances........................... 1,762 1,652 1,601 1,618 1,685 1,703 1,639 1,646 1,634 1,552 1,522 1,449 1,451 Foreign commercial & industrial loans. 3,249 3,242 3,280 3,307 3,287 3,300 3,332 3,378 3,370 3,357 3,356 3,357 3,389 Total classified loans............................ 69,948 69,852 70,358 70,338 70,926 70,785 70,723 70,409 70,187 70,053 70,092 70,918 70,277 Total commercial & industrial loans of large commercial banks.............. 83,789 83,929 84,604 84,664 85,283 85,223 85,177 84,823 84,637 84,536 84,593 85,512184,954 For notes see facing page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1973 □ BUSINESS LOANS OF BANKS, 1972 A 113 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Wednesday Industry July July July July Aug. Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. 5 12 19 26 2 9 16 23 30 6 13 20 27 Durable goods manufacturing: Primary metals................................. 2,073 2,053 2,060 2,050 2,012 1,980 1,977 1,978 1,977 2,006 1,989 1,962 1,998 Machinery......................................... 4,166 4,193 4,231 4,196 4,127 4,131 4,203 4,193 4,194 4,083 4,110 4,176 4,107 Transportation equipment............... 2,346 2,246 2,216 2,179 2,227 2,197 2,210 2,238 2,230 2,254 2,256 2,296 2,267 Other fabricated metal products---- 1,687 1,701 1,708 1,696 1.679 1,677 1.735 1,709 1,711 1,719 1,766 1,801 1,783 Other durable goods........................ 2,821 2,855 2,805 2,793 2,808 2,781 2,837 2,841 2,862 2,909 2,935 2,929 2,917 Nondurable goods manufacturing: Food, liquor, and tobacco............. 2,740 2,680 2,720 2,672 2,717 2,721 2.736 2,756 2,729 2,683 2,718 2,779 2,807 Textiles, apparel, and leather.......... 2,906 2,950 2,944 2,938 2,965 2,988 3,021 3,005 2,988 3,043 3,065 3,064 3,045 Petroleum refining........................... 1,010 977 964 977 967 960 906 944 916 894 939 926 967 Chemicals and rubber..................... 2,042 2,038 2,024 1,972 1,905 1,890 1,907 1,902 1,923 1,892 1,910 1,873 1,866 Other nondurable goods................. 1,690 1,659 1,639 1,679 1.679 1,661 1,659 1,663 1,675 1,677 1,686 1,690 1,759 Mining, including crude petroleum and natural gas................................. 3,619 3,603 3,612 3,645 3,649 3,672 3,669 3,692 3,679 3,625 3,659 3,658 3,662 Trade: Commodity dealers................. 1,144 1,174 1,171 1,202 1,183 1,241 1,226 1,246 1,253 1,261 1,325 1,298 1,313 Other wholesale....................... 4,465 4,460 4,438 4,445 4,421 4,436 4,435 4,404 4,413 4,441 4,493 4,502 4,593 Retail........................................ 4,524 4,529 4,626 4,730 4,686 4,584 4,638 4,613 4,653 4,651 4,632 4,761 4,834 Transportation, communication, & other public utilities: Transportation................................. 5,586 5,579 5,516 5,449 5,461 5,398 5,390 5,382 5.429 5,362 5,314 5,352 5,355 Communication................................ 1,630 1,572 1,598 1,601 1,594 1,591 1,593 1,570 1,569 1,657 1,659 1,682 1,712 Other public utilities........................ 2,743 2,772 2,791 2,742 2,883 2,884 2,926 2,989 3,007 3,116 3,039 3,102 3,055 Construction......................................... 4,307 4,331 4,315 4,340 4,345 4,335 4,440 4.443 4.429 4,459 4,556 4,603 4,626 Services.................................................. 8,634 8,615 8,578 8,507 8,527 8,528 8,559 8,565 8,478 8,496 8,494 8,580 8,574 All other domestic loans..................... 5,761 5,753 5,752 5,837 5,903 5,874 5,763 5,657 5,603 5,639 5,628 5,630 5,667 Bankers’ acceptances........................... 1,458 1,434 1,417 1,352 1,355 1,333 1,288 1,243 1,220 1,241 1,228 1,254 1,249 Foreign commercial & industrial loans 3,413 3,420 3,449 3,448 3,452 3,463 3,435 3.444 3,433 3,478 3,482 3,511 3,466 Total classified loans......................... 70,765 70,594 70,574 70,450 70,545 70,325 70,553 70,477 70,371 70,586 70,883 71,429 71,622 Total commercial and industrial loans of large commercial banks............ 85,427 85,268 85,300 85,151 85,307 85,016 85,261 85,158 85,011 85,340 85,682 86,366 86,631 Wednesday Industry Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. 4 11 18 25 1 8 15 22 29 6 13 20 27 Durable goods manufacturing: Primary metals................................. 2,008 2,044 2,047 2,029 2,020 2,022 2,030 2,001 2,032 2,022 2,019 2,024 2,018 Machinery........................................ 4,047 4,055 4,066 3,975 4,133 4,174 4,233 4,284 4,285 4,399 4,481 4,565 4,603 Transportation equipment............... 2,222 2,232 2,152 2,104 2,133 2,122 2,124 2,128 2,135 2,057 2,010 2,058 2,094 Other fabricated metal products---- 1,785 1,799 1,789 1,760 1,759 1,749 1,758 1,737 1,730 1,709 1,734 1,779 1,759 Other durable goods........................ 2,924 2,960 2,912 2,895 2,853 2,880 2,884 2,843 2,830 2,853 2,840 2,894 2,904 Nondurable goods manufacturing: 2,882 2,922 2,973 2,998 2,997 3,078 3,078 3,168 3,178 3,220 3,233 3,402 3,447 Textiles, apparel, and leather.......... 3,052 3,058 2,991 2,947 2,924 2,915 2,894 2,828 2,788 2,768 2,757 2,746 2,694 Petroleum refining........................... 907 894 894 884 893 889 897 902 928 950 946 1,036 977 Chemicals and rubber..................... 1,926 1,916 1,871 1,844 1,831 1,827 1,817 1,801 1,772 1,734 1,754 1,752 1,857 Other nondurable goods................. 1,743 1,726 1,727 1,736 1,723 1,753 1,739 1,732 1,690 1,705 1,693 1,682 1,694 Mining, including crude petroleum and natural gas................................. 3,677 3,645 3,680 3,708 3,634 3,645 3,657 3,640 3,632 3,578 3,596 3,755 3,629 Trade: Commodity dealers................. 1,320 1,342 1,386 1,441 1,517 1,550 1,540 1,581 1,621 1,660 1,668 1,777 1,794 Other wholesale....................... 4,626 4,630 4,626 4,632 4,621 4,602 4,605 4,562 4,581 4,582 4,591 4,630 4,654 Retail........................................ 4,948 4,944 5,157 5,252 5,175 5,294 5,352 5,420 5,359 5,255 5,286 5,242 5,000 Transportation, communication, & other public utilities: Transportation................................. 5,425 5,383 5,403 5,388 5,363 5,404 5,374 5,394 5,423 5,434 5,515 5,541 5,590 Communication................................ 1,827 1,808 1,763 1,736 1,738 1,727 1,740 1,727 1,736 1,756 1,765 1,809 1,859 Other public utilities........................ 3,241 3,263 3,163 3,147 3,371 3,324 3,304 3,301 3,326 3,457 3,437 3,526 3,586 Construction........................................ 4,584 4,617 4,650 4,602 4,635 4,612 4,628 4,601 4,601 4,603 4,608 4,644 4,664 Services.................................................. 8,652 8,722 8,743 8,762 8,812 8,822 8,794 8,856 8,899 8,965 8,967 9,064 9,132 All other domestic loans..................... 5,717 5,667 5,644 5,616 5,631 5,593 5,659 5,601 5,529 5,550 5,693 5,726 5,835 Bankers’ acceptances........................... 1,302 1,298 1,349 1,310 1,344 1,333 1,306 1,328 1,344 1,394 1,392 1,479 1,551 Foreign commercial & industrial loans 3,503 3,532 3,504 3,533 3,568 3,624 3,664 3,650 3,715 3,697 3,777 3,867 3,880 Total classified loans........................... 72,318 72,457 72,490 72,299 72,675 72,939 73,077 73,085 73,134 73,348 73,762 74,998 75,221 Total commercial and industrial loans of large commercial banks.............. 87,518 87,722 87,762 87,528 88,014 88,356 88,496 88,501 88,642 88,794 89,374 90,794 91,103 1 Loan reclassification at a large bank on June 28, 1972, resulted in a For description of series see article “Revised Series on Commercial and reduction of $357 million in total commercial and industrial loans and of Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. $464 million in “term” commercial and industrial loans. Commercial and industrial “term” loans are all outstanding loans with Note.—About 160 weekly reporting banks are included in this series; an original maturity of more than 1 year and all outstanding loans granted these banks classify, by industry, commercial and industrial loans amount­ under a formal agreement—revolving credit or standby—on which the ing to about 90 per cent of such loans held by all weekly reporting banks original maturity of the commitment was in excess of 1 year. and about 70 per cent of those held by all commercial banks. Monthly figures are averages of figures for Wednesday dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 114 LOAN SALES BY BANKS □ MARCH 1973 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—Jan. 5................................................................................. 2,858 1,596 1,262 1,654 371 1,283 12................................................................................. 2,827 1,603 1,224 1,629 362 1,267 2,773 1,583 1,190 1,622 362 1,260 26................................................................................. 2,994 1,725 1,269 1,601 350 1,251 Feb. 3,003 1,731 1,272 1,615 345 1,270 2,951 1,753 1,198 1,664 347 1,317 2,872 1,735 1,137 1,624 347 1,277 2,909 1,718 1,191 1,640 340 1,300 Mar. 1................................................................................. 2,942 1,717 1,225 1,641 347 1,294 2,896 1,741 1,155 1,660 363 1,297 2,807 1,709 1,098 1,658 360 1,298 2,801 1,717 1,084 1,623 358 1,265 2,779 1,792 987 1,617 361 1 ,256 Apr. 2,806 1,737 1,069 1,620 358 1,262 2,750 1,695 1,055 1,624 363 1,261 2,648 1,653 995 1,645 373 1,272 2,688 1,677 1,011 1,654 369 1 ,285 May 2,610 1,618 992 1,654 368 1,286 2,571 1,612 959 1,659 357 1,302 2,485 1,557 928 1,670 362 1,308 2,446 1,564 882 1,662 366 1,296 2,450 1,472 978 1,675 362 1,313 June 2,413 1,513 900 1,702 374 1,328 2,346 1,499 847 1,694 366 1,328 2,268 1,439 829 1,685 357 1,328 2,296 1,422 874 1,680 353 1,327 July 2,238 1,298 940 1,671 336 1,335 2,217 1,347 870 1,667 331 1,336 2,304 1,384 920 1,715 368 1,347 2,327 1,426 901 1,692 340 1,352 Aug. 2,381 1,433 948 1,693 334 1,359 2,481 1,516 965 1,694 320 1,374 2,430 1,522 908 1,705 316 1,389 2,520 1,518 1,002 1,706 317 1,389 2,372 1,543 829 1,693 303 1,390 Sept. 2,439 1,530 909 1,707 303 1,404 2,412 1,496 916 1,722 312 1,410 2,327 1,487 840 1,712 301 1,411 2,264 1,466 798 1,709 299 1,410 Oct. 2,176 1,386 790 1,718 295 1,423 2,224 1,390 834 1,717 295 1,422 2,249 1,446 803 1,750 307 1,443 2,247 1,448 799 1,743 304 1,439 Nov. 2,414 1,514 900 1,715 296 1,419 2,387 1,566 821 1,700 297 1,403 2,442 1,591 851 1,748 296 1,452 2,412 1,652 760 1,755 301 1,454 2,489 1,641 848 1,774 308 1,466 Dec. 2,567 1,670 897 1,774 309 1,465 2,563 1,639 924 1,787 309 1,478 2,653 1,726 927 1,787 309 1,478 2,598 1,674 924 1,783 306 1,477 Note.—Amounts sold under repurchase agreement are excluded. Fig­ ures include small amounts sold by banks other than large weekly report­ ing banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. Mitchell J. Dewey Daane Andrew F. Brimmer John E. Sheehan J effrey M. Bucher Robert C. Holland, Executive Director J. Charles Partee, Adviser to the Board * Robert Solomon, Adviser to the Board Howard H. Hackley, Assistant to the Board Robert L. Cardon, Assistant to the Board Edwin J. Johnson, Assistant to the Board Joseph E. Kelleher, Assistant to the Board Joseph R. Coyne, Assistant to the Board Frank O’Brien, Jr., 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 William W. Layton, Director of Equal James L. Pierce, Adviser Employment Opportunity Stanley J. Sigel, Adviser Brenton C. Leavitt, Program Director for Murray S. Wernick, Adviser Banking Structure Kenneth B. Williams, Adviser James B. Eckert, Associate Adviser Joseph S. Zeisel, Associate Adviser OFFICE OF THE SECRETARY Edward C. Ettin, Assistant Adviser Tynan Smith, Secretary Eleanor J. Stockwell, Assistant Adviser Murray Altmann, Assistant Secretary Stephen P. Taylor, Assistant Adviser Normand R. V. Bernard, Assistant Secretary Louis Weiner, Assistant Adviser Arthur L. Broida, Assistant Secretary Levon H. Garabedian, Assistant Director Elizabeth L. Carmichael, Assistant Secretary **Chester B. Feldberg, Assistant Secretary DIVISION OF INTERNATIONAL FINANCE Ralph C. Bryant, Director John E. Reynolds, Associate Director LEGAL DIVISION A. B. Hersey, Senior Adviser Thomas J. O’Connell, General Counsel Robert F. Gemmill, Adviser Paul Gardner, Jr. , Assistant General Counsel Reed J. Irvine,Adviser Pauline B. Heller, Assistant General Counsel Samuel I. Katz, Adviser John Nicoll, Assistant General Counsel Bernard Norwood, Adviser Robert S. Plotkin, Assistant General Counsel Samuel Pizer, Adviser Andrew F. Oehmann, Special Assistant to the Ralph C. Wood, Adviser General Counsel 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 Griffith L. Garwood, Adviser Charles L. Marinaccio, Adviser *On leave of absence. Digitized for FRASER* *On loan from the Federal Reserve Bank of New York. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 117 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER Ronald G. Burke, Director John Kakalec, Controller John J. Hart, Assistant Director DIVISION OF DATA PROCESSING Jerold E. Slocum, Director Charles L. Hampton, Associate Director Glenn L. Cummins, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Benjamin R. W. Knowles, Jr., Assistant Director Walter W. Kreimann, Director Henry W. Meetze, Assistant Director Donald E. Anderson, Assistant Director Edward K. O’Connor, Assistant Director John D. Smith, Assistant Director Richard S. Watt, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 118 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman John J. Balles J. Dewey Daane Frank E. Morris Andrew F. Brimmer Darryl R. Francis J. L. Robertson Jeffrey M. Bucher Robert P. Mayo John E. Sheehan George W. Mitchell Robert C. Holland, Secretary *Robert Solomon, Economist Arthur L. Broida, Deputy Secretary (International Finance) Murray Altmann, Assistant Secretary Leon all C. Andersen, Associate Economist Normand R. V. Bernard, Assistant Ralph C. Bryant, Associate Economist Secretary Robert W. Eisenmenger, Associate Economist Howard H. Hackley, General Counsel George Garvy, Associate Economist Thomas J. O’Connell, Assistant General Lyle E. Gramley, Associate Economist Counsel A. B. Hersey, Associate Economist J. Charles Partee, Senior Economist John E. Reynolds, Associate Economist Stephen H. Axilrod, Economist Karl A. Scheld, Associate Economist (Domestic Finance) Kent O. Sims, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account Peter D. Sternlight, Deputy Manager, System Open Market Account David E. Bodner, Deputy Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL G. Morris Dorrance, Jr., third federal reserve district, President Harry Hood Bassett, sixth federal reserve district, Vice President James F. English, Jr., first federal David H. Morey, eighth federal RESERVE DISTRICT RESERVE DISTRICT Gabriel Hauge, second Chester C. Lind, ninth federal FEDERAL RESERVE DISTRICT RESERVE DISTRICT Clair E. Fultz, fourth federal Morris F. Miller, tenth federal RESERVE DISTRICT RESERVE DISTRICT Thomas I. Storrs, fifth federal Lewis H. Bond, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Allen P. Stults, seventh federal H. A. Rogers, twelfth federal RESERVE DISTRICT RESERVE DISTRICT Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 119 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 Frank R. Milliken William F. Treiber Buffalo.............. 14240 Rupert Warren A. A. Maclnnes, Jr. Philadelphia ........ 19101 John R. Coleman David P. Eastburn Edward J. Dwyer Mark H. Willes Cleveland ............. 44101 Horace A. Shepard Willis J. Winn J. Ward Keener Walter H. MacDonald Cincinnati ......... 45201 Graham E. Marx Fred O. Kiel Pittsburgh ......... 15230 Robert E. Kirby James H. Campbell Richmond..................23261 Robert W. Lawson, Jr. 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 Hiram J. Honea^ Jacksonville ....... 32203 Henry Cragg Edward C. Rainey Nashville............ 37203 James W. Long Jeffrey J. Wells New Orleans....... 70160 Fred Adams, Jr. George C. Guynn Miami Office....... 33101 W. M. Davis Chicago................. 60690 William H. Franklin Robert P. Mayo Peter B. Clark Ernest T. Baughman Detroit............... 48231 W.M. Defoe 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 William H. Stroube Donald L. Henry Memphis............ 38101 Alvin Huffman, Jr. Laurence T. Britt Minneapolis ......... 55480 David M. Lilly Bruce K. MacLaury Bruce B. Dayton M. H. Strothman, Jr. Helena............... 59601 William A. Cordingley Howard L. Knous Kansas City........... 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boy sen Denver .............. 80217 Maurice B. Mitchell George C. Rankin Oklahoma City .... 73125 Joseph H. Williams William G. Evans Omaha .............. 68102 A. James Ebel Robert D. Hamilton Dallas................... 75222 Chas. F. Jones Philip E. Coldwell John Lawrence T. W. Plant El Paso.............. 79999 Herbert M. Schwartz Frederic W. Reed Houston............. 77001 M. Steele Wright, Jr. James L. Cauthen San Antonio....... 78295 Irving A. Mathews Carl H. Moore San Francisco....... 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi A. B. Merritt Los Angeles....... 90051 Edward A. Sloan Paul W. Cavan Portland............. 97208 Frank Anderson William M. Brown Salt Lake City..... 84110 Theodore C. Jacobsen Arthur L. Price Seattle............... 98124 Thomas T. Hirai William R. Sandstrom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 120 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—1971 edition. 383 pp. per annum or $.50 each. Elsewhere, $7.00 per $4.00 a copy; 10 or more sent to one address, annum or $.70 a copy. $3.50 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 June 30, 1972. $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 121 SURVEY OF CHANGES IN FAMILY FINANCES. 1968. Summaries only printed in the BULLETIN. 321 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. (Limited supply of mimeographed copies of full text available upon request for single copies) REPORT OF THE JOINT TREASURY-FEDERAL RE­ SERVE STUDY OF THE U.S. GOVERNMENT SE­ OPERATING POLICIES OF BANK HOLDING COMPA­ CURITIES MARKET. 1969. 48 pp. $.25 a copy; NIES—PART 1, by Robert J. Lawrence. Apr. 10 or more sent to one address, $.20. 1971, 82 pp. (Limited supplies, in mimeographed or simi­ PRIVATE HOUSING COMPLETIONS—A NEW DIMEN­ lar form, of staff papers listed on p. 48 of SION IN CONSTRUCTION STATISTICS, by Bernard report above (other than those contained in N. Freedman. Jan. 1972. 20 pp. Parts 1 and 2) are available upon request POLICY VARIABLES, UNEMPLOYMENT AND PRICE for single copies.) LEVEL CHANGES, by Peter S. Rose and Lacy H. JOINT TREASURY-FEDERAL RESERVE STUDY OF Hunt II. Jan. 1972. 11 pp. THE GOVERNMENT SECURITIES MARKET: STAFF OPTIMAL DISTRIBUTED LAG RESPONSES AND EX­ STUDIES—PART 1 (papers by Cooper, Bernard, PECTATIONS, by Roger Craine. Feb. 1972. 9 pp. and Scherer). 1970. 86 pp. $.50 a copy; 10 or more sent to one address, $.40 each. PART 2 THE EFFECT OF HOLDING COMPANY ACQUISITIONS (papers by Ettin, Peskin, and Ahearn and Pes- ON BANK PERFORMANCE, by Samuel H. Talley. kin). 1971. 153 pp. $1.00 a copy; 10 or more Feb. 1972. 25 pp. sent to one address, $.85 each. INTERNATIONAL MONEY MARKETS AND FLEXIBLE OPEN MARKET POLICIES AND OPERATING PROCE­ EXCHANGE RATES, by Stanley W. Black. Mar. DURES—STAFF STUDIES (papers by Axilrod, 1972. 74 pp. Davis, Andersen, Kareken et al., Pierce, Fried­ man, and Poole). 1971. 218 pp. $2.00 a copy; EXPLAINING CHANGES IN EURO-DOLLAR POSI­ 10 or more sent to one address, $1.75 each. TIONS: A STUDY OF BANKS IN FOUR EUROPEAN COUNTRIES, by Rodney H. Mills, Jr. May 1972. REAPPRAISAL OF THE FEDERAL RESERVE DIS­ 34 pp. COUNT MECHANISM, Vol. 1 (papers by Steering Committee, Shull, Anderson, and Garvy). 1971. CREDIT RATIONING: A REVIEW, by Benjamin M. 276 pp. Vol. 2 (papers by Boulding, Chandler, Friedman. June 1972. 26 pp. Jones, Ormsby, Modigliani, Alperstein, Melichar, and Melichar and Doll). 1971. 173 pp. REGULATION Q AND THE COMMERCIAL LOAN MAR­ Vol. 3 (papers by Staats, Willis, Minsky, KET IN THE 1960’s, by Benjamin M. Friedman. Stackhouse, Meek, Holland and Garvy, and June 1972. 38 pp. Lynn). 1972. 220 pp. Each volume $3.00 a copy; 10 or more sent to one address, $2.50 THE REGULATION OF SHORT-TERM CAPITAL each. MOVEMENTS IN MAJOR COUNTRIES, by Rodney H. Mills, Jr. Nov. 1972. 53 pp. THE ECONOMETRICS OF PRICE DETERMINATION CONFERENCE, October 30-31, 1970, Washing­ FEDERAL RESERVE DEFENSIVE BEHAVIOR AND THE ton, D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 REVERSE CAUSATION ARGUMENT, by Raymond a copy; 10 or more sent to one address, $4.50 Lombra and Raymond Torto. Nov. 1972. 15 pp. each. Paper ed. $4.00 a copy; 10 or more sent to one address, $3.60 each. EXAMINATION OF THE MONEY STOCK CONTROL APPROACH OF BURGER, KALISH, AND BABB, by FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­ Fred J. Levin. Mar. 1973. 18 pp. ERATE FLUCTUATIONS IN HOUSING CON­ STRUCTION, Dec. 1972, 487 pp. $4.00 a copy; 10 or more sent to one address, $3.60 each. Printed in full in the BULLETIN. (Staff Economic Studies are included in list of reprints below.) STAFF ECONOMIC STUDIES REPRINTS Studies and papers on economic and financial subjects that are of general interest in the field ADJUSTMENT FOR SEASONAL VARIATION. June of economic research. 1941. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 122 FEDERAL RESERVE BULLETIN □ MARCH 1973 SEASONAL FACTORS AFFECTING BANK RESERVES. MONETARY RESTRAINT, BORROWING, AND CAPITAL Feb. 1958. 12 pp. SPENDING BY SMALL LOCAL GOVERNMENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. THE CHANNELS OF MONETARY POLICY, Staff Economic Study by Frank de Leeuw and Edward INTEREST RATES AND MONETARY POLICY, Staff Gramlich. June 1969. 20 pp. Paper by Stephen Axilrod. Sept. 1962. 28 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL MEASURES OF MEMBER BANK RESERVES. July BANKS. Aug. 1969. 5 pp. 1963. 14 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 20 pp. 1963. 8 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ REVISION OF BANK DEBITS AND DEPOSIT TURN­ CIAL BANKING. Mar. 1970. 16 pp. OVER SERIES. Mar. 1965. 4 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND TIME DEPOSITS IN MONETARY ANALYSIS, Staff STATISTICS. May 1970. 4 pp. Economic Study by Lyle E. Gramley and Sa­ muel B. Chase, Jr. Oct. 1965. 25 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. 11 pp. RESEARCH ON BANKING STRUCTURE AND PER­ FORMANCE, Staff Economic Study by Tynan MONETARY AGGREGATES AND MONEY MARKET Smith. Apr. 1966. 11 pp. CONDITIONS IN OPEN MARKET POLICY. Feb. 1971. 26 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with BANK FINANCING OF MOBILE HOMES. Mar. 1971. Frank E. Hopkins and Michael D. Sherman. 4 pp. Nov. 1966. 11 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS REVISED SERIES ON COMMERCIAL AND INDUS­ TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. pp. EVIDENCE ON CONCENTRATION IN BANKING MAR­ INTEREST RATES, CREDIT FLOWS, AND MONETARY KETS AND INTEREST RATES, Staff Economic AGGREGATES SINCE 1964. June 1971. 16 pp. Study by Almarin Phillips. June 1967. 11 pp. TWO KEY ISSUES OF MONETARY POLICY. June THE PUBLIC INFORMATION ACT—ITS EFFECT ON 1971. 4 pp. MEMBER BANKS. July 1967. 6 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June INTEREST COST EFFECTS OF COMMERCIAL BANK 1971. 12 pp. UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. BANK RATES ON BUSINESS LOANS—REVISED SERIES. June 1971. 10 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. INDUSTRIAL PRODUCTION—REVISED AND NEW MEASURES. July 1971. 26 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL REVISED MEASURES OF MANUFACTURING CAPAC­ GOVERNMENTS IN 1966. July 1968. 30 pp. ITY UTILIZATION. Oct. 1971. 3 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 18 pp. pp. BUSINESS FINANCING BY BUSINESS FINANCE COM­ PANIES. Oct. 1968. 13 pp. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. Dec. 1971. MANUFACTURING CAPACITY: A COMPARISON OF 11 pp. TWO SOURCES OF INFORMATION, Staff Eco­ nomic Study by Jared J. Enzler. Nov. 1968. ASSETS AND LIABILITIES OF FOREIGN BRANCHES 5 pp. OF U.S. BANKS. Feb. 1972. 16 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 123 WAYS TO MODERATE FLUCTUATIONS IN THE CON­ YIELDS ON NEWLY ISSUED CORPORATE BONDS. STRUCTION OF HOUSING. Mar. 1972. 11 pp. Sept. 1972. 2 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT PO­ CHANGES IN TIME AND SAVINGS DEPOSITS AT SITION. Apr. 1972. 15 pp. COMMERCIAL BANKS, APRIL-JULY 1972. Oct. 1972. 11 pp. OPEN MARKET OPERATIONS AND THE MONETARY AND CREDIT AGGREGATES—1971. Apr. 1972. 23 RECENT ACTIVITIES OF FOREIGN BRANCHES OF pp. U.S. BANKS. Oct. 1972. 11 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. REVISION OF CONSUMER CREDIT STATISTICS. Oct. 1972. 5 pp. 1972. 21 pp. CONSTRUCTION LOANS AT COMMERCIAL BANKS. June 1972. 12 pp. SURVEY OF FINANCE COMPANIES, 1970. Nov. 1972. 15 pp. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. June 1972. 5 pp. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 AMENDMENTS. Dec. 1972. 13 pp. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. June 1972. 10 pp. EVOLUTION OF THE PAYMENTS MECHANISM. Dec. 1972. 4pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ OVER—REVISED SERIES. July 1972. 5 pp. FINANCIAL DEVELOPMENTS IN THE FOURTH RECENT REGULATORY CHANGES IN RESERVE RE­ QUARTER OF 1972. Feb. 1973. 10 pp. QUIREMENTS AND CHECK COLLECTION. July 1972. 5 pp. REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK RESERVES AND DEPOSITS. Feb. BANKING AND MONETARY STATISTICS, 1971. Se­ 1973. 19 pp. lected series of banking and monetary statistics for 1971 only. Feb., Mar., and July 1972. 20 TREASURY AND FEDERAL RESERVE FOREIGN EX­ pp. CHANGE OPERATIONS. March 1973. 22 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 411-A hguorht 4-A segap o t era secnerefeR( A 124 FEDERAL RESERVE BULLETIN □ MARCH 1973 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 14, 33, 35, 100 Agricultural loans of commercial banks, 24, 26, 106 Demand deposits: Arbitrage, 95 Adjusted, banks and the monetary system, 19 Assets and liabilities (See also Foreigners): Adjusted, commercial banks, 15, 18, 25 Banks, by classes, 20, 24, 25, 26, 39, 106 Banks, by classes, 11, 20, 25, 29, 109 Banks and the monetary system, 19 Ownership by individuals, partnerships, and Federal Reserve Banks, 12 corporations, 32 Nonfinancial corporations, current, 50 Subject to reserve requirements, 18 Automobiles: Turnover, 15 Consumer instalment credit, 56, 57, 58 Deposits (See also specific types of deposits): Production index, 60, 61 Accumulated at commercial banks for payment of per­ sonal loans, 32 Bank credit proxy, 18 Adjusted, and currency, 19 Bankers’ balances, 25, 28, 108 Banks, by classes, 11, 20, 25, 29, 39, 109 (See also Foreigners, claims on, and liabilities to) Euro-dollars, 90 Banking and monetary statistics for 1972, 100-14 Federal Reserve Banks, 12, 90 Banking offices: Postal savings, 19, 25 Changes in number, 98 Subject to reserve requirements, 18 Par and nonpar offices, number, 99 Discount rates (See Interest rates) Banks and the monetary system, 19 Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 40 Dividends, corporate, 50 Bonds (See also U.S. Govt, securities): Dollar assets, foreign, 77, 83 New issues, 47, 48, 49 Yields and prices, 36, 37, 101 Earnings and hours, manufacturing industries, 67 Branch banks: Employment, 64, 66, 67 Assets, foreign branches of U.S. banks, 88 Euro-dollar deposits in foreign branches of U.S. banks, 90 Liabilities, U.S. banks to foreign branches, 30, 89, 90, 110 Farm mortgage loans, 51, 52 Brokerage balances, 87 Federal agency obligations, 12, 13, 14, 15 Business expenditures on new plant and equipment, 50 Federal finance: Business indexes, 64 Cash transactions, 42 Business loans (See Commercial and industrial loans) Receipts and expenditures, 43 Treasury operating balance, 42 Capacity utilization, 64 Federal funds, 8, 24, 26, 30, 35, 100, 106, 110 Capital accounts: Federal home loan banks, 40, 41, 53 Banks, by classes, 20, 25, 30, 110 Federal Home Loan Mortgage Corporation, 55 Federal Reserve Banks, 12 Federal Housing Administration, 51, 52, 53, 54, 55 Central banks, 94, 96 Federal intermediate credit banks, 40, 41 Certificates of deposit, 30, 110 Federal land banks, 40, 41 Coins, circulation, 16 Federal National Mortgage Assn., 40, 41, 54 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 18, 24, 33, 111, 114 Condition statement, 12 Weekly reporting banks, 26, 31, 106 U.S. Govt, securities held, 4, 12, 15, 44, 45, 102 Commercial banks: Federal Reserve credit, 4, 6, 12, 15, 102, 104 Assets and liabilities, 18, 20, 24, 25, 26, 106 Federal Reserve notes, 12, 16 Banking offices, changes in number, 98 Federally sponsored credit agencies, 40, 41 Consumer loans held, by type, 57 Finance companies: Deposits at, for payment of personal loans, 32 Loans, 26, 56, 57, 59 Loans sold outright, 33, 114 Paper, 33, 35, 100 Number, by classes, 20 Financial institutions, loans to, 24, 26, 106 Real estate mortgages held, by type, 52 Float, 4, 102 Commercial paper, 33, 35, 100 Flow of funds, 72 Condition statements (See Assets and liabilities) Foreign: Construction, 64, 65 Currency operations, 12, 14, 77, 83 Consumer credit: Deposits in U.S. banks, 5, 12, 19, 25, 29, 90, 103, 109 Instalment credit, 56, 57, 58, 59 Exchange rates, 93 Noninstalment credit, by holder, 57 Trade, 75 Consumer price indexes, 64, 68 Foreigners: Consumption expenditures, 70, 71 Claims on, 84, 85, 90, 91, 92 Corporations: Liabilities to, 30, 78, 79, 81, 82, 83, 90, 91, 92, 110 Profits, taxes, and dividends, 50 Security issues, 48, 49 Gold: Security yields and prices, 36, 37, 101 Certificates, 12, 13, 16 Cost of living (See Consumer price indexes) Earmarked, 90 Currency and coin, 5, 10, 25, 103 Net purchases by United States, 76 Currency in circulation, 5, 16, 17, 103 Production, 97 Customer credit, stock market, 38, 98 Reserves of central banks and govts., 96 Stock, 4, 19, 77, 102 Debits to deposit accounts, 15 Government National Mortgage Assn., 54 Debt (See specific types of debt or securities) Gross national product, 70, 71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 125 Hours and earnings, manufacturing industries, 67 Production, 60-63, 64 Housing permits, 64 Profits, corporate, 50 Housing starts, 65 Income, national and personal, 70, 71 Real estate loans: Industrial production index, 60-63, 64 Banks, by classes, 24, 27, 39, 52, 107 Instalment loans, 56, 57, 58, 59 Delinquency rates on home mortgages, 55 Insurance companies, 39, 44, 45, 52, 53 Mortgage yields, 37, 53, 54, 55 Insured commercial banks, 22, 24, 32, 98 Type of holder and property mortgaged, 51-55 Interbank deposits, 11, 20, 25 Reserve position, basic, member banks, 8 Interest rates: Reserve requirements, member banks, 10 Business loans by banks, 34 Reserves: Federal Reserve Banks, 9 Central banks and govts., 96 Foreign countries, 94, 95 Commercial banks, 25, 28, 30, 108, 110 Money market rates, 35, 100 Federal Reserve Banks, 12 Mortgage yields, 53, 54, 55 Member banks, 5, 6, 11, 18, 25, 103, 104 Prime rate, commercial banks, 34 U.S. reserve assets, 77 Time and savings deposits, maximum rates, 11 Residential mortgage loans, 37, 51, 52, 53, 54, 55 Yields, bond and stock, 36, 101 Retail credit, 56 International capital transactions of U.S., 78-92 Retail sales, 64 International institutions, 76, 77, 94, 96 Inventories, 70 Saving: Investment companies, issues and assets, 49 Flow of funds series, 72 Investments (See also specific types of investments): National income series, 71 Banks, by classes, 20, 24, 27, 28, 39, 107, 108 Savings and loan assns., 40, 45, 53 Commercial banks, 18 Savings deposits (See Time deposits) Federal Reserve Banks, 12, 15 Savings institutions, principal assets, 39, 40 Life insurance companies, 39 Securities (See also U.S. Govt, securities): Savings and loan assns., 40 Federally sponsored agencies, 40, 41 International transactions, 86, 87 Labor force, 66 New issues, 47, 48, 49 Life Insurance companies (See Insurance companies) Silver coin, 16 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 13, 19, 74, 77 Banks, by classes, 20, 24, 26, 27, 39, 106, 107 State and local govts.: Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34, 106, Deposits, 25, 29, 109 107, 111, 114 Holdings of U.S. Govt, securities, 44, 45 Federal Reserve Banks, 4, 6, 9, 12, 13, 15, 102, 104 New security issues, 47, 48 Insurance companies, 39, 52, 53 Ownership of securities of, 24, 28, 39, 108 Insured or guaranteed by U.S., 51, 52, 53, 54, 55 Yields and prices of securities, 36, 37, 101 Savings and loan assns., 40, 53 State member banks, 22, 32, 98 Stock market credit, 38, 98 Manufacturers: Stocks: Capacity utilization, 64 New issues, 48, 49 Production index, 61, 64 Yields and prices, 36, 37, 101 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 20, 24 Tax receipts, Federal, 43 Banking offices, changes in number, 98 Time deposits, 11, 18, 19, 20, 25, 29, 109 Borrowings at Federal Reserve Banks, 6, 12, 104 Treasury cash, Treasury currency, 4, 5, 16, 19, 102, 103 Deposits, by classes, 11 Treasury deposits, 5, 12, 42, 103 Number, by classes, 20 Treasury operating balance, 42 Reserve position, basic, 8 Reserve requirements, 10 Unemployment, 66 Reserves and related items, 4, 18, 102 U.S. balance of payments, 74 Mining, production index, 61, 63 U.S. Govt, balances: Mobile home shipments, 65 Commercial bank holdings, 25, 29, 109 Money market 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, 103 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 19, 20, 24, 27, 39, 44, 45, 107 Mutual savings banks, 19, 29, 39, 44, 45, 52, 98, 109 Dealer transactions, positions, and financing, 46 Federal Reserve Bank holdings, 4, 12, 15, 44, 45, 102 National banks, 22, 32, 98 Foreign and international holdings, 12, 83, 86, 90 National defense expenditures, 43, 70 International transactions, 83, 86 National income, 70, 71 New issues, gross proceeds, 48 Nonmember banks, 22, 24, 25, 32, 98 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Open market transactions, 14 Ownership, 44, 45 Yields and prices, 36, 37, 101 Par and nonpar banking offices, number, 99 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, 106 Security, 37 Prime rate, commercial banks, 34 Yields (See Interest rates) )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 411-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Chicago j Omafia* KansasCttyf it. Louis 'CfuirCotU Oklahoma Citt) Birm»sb\tfan ta Dallas Jiouston San Antonio* Miami January 1972 :Pram byH.W. Qalvin, Cart A (P THE FEDERAL RESERVE SYSTEM g) a ALASKA HAWAII Legend Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities • Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis