Federal Reserve Bulletin, 1973-05

F e d e r a l R e s e r v e Bulletin BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 MAY 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 5 □ VOLUME 59 □ MAY 1973 317 Financial Developments in the First Quarter of 1973 327 Staff Economic Studies: Summary 329 Member Bank Income, 1972 336 Yields on Recently Offered Corporate Bonds 339 The Structure of Reserve Requirements 345 Record of Policy Actions of the Federal Open Market Committee 353 Law Department 375 Announcements 381 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 72 International Statistics A 112 Board of Governors and Staff A 114 Open Market Committee and Staff; Federal Advisory Council A 115 Federal Reserve Banks and Branches A 116 Federal Reserve Board Publications A 120 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

F inancial D ev elo p m en ts in th e First Q uarter o f 1 973 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in finan­ cial markets during the winter and early spring. A monetary policy of restraint was pursued during the first quarter in an effort to help curb inflationary pressures. With the Federal Reserve holding back on the provision of nonborrowed reserves to the banking system, with growth in both the narrowly and the broadly defined money stock slowing, and with short-term credit demands continuing strong, short-term interest rates rose markedly over the quarter, and the rise continued in April. Demands on longer-term credit markets were relatively moderate, and long-term interest rates showed a considerably less marked rise. The Federal Reserve discount rate was adjusted upward in several stages from AV2 per cent early in the year to 6 per cent in early May. There was a large increase in bank credit during the first quarter. This in part reflected a shift of credit demands to banks from the commercial paper market as the prime loan rate was low relative to market rates. In addition, there were credit demands on banks— particularly from foreign commercial banks—in connection with the large outflow of dollars from the United States. It is difficult to identify completely the means of financing the dollar outflow. Apart from bank loans, much of the outflow was probably financed by liquidation of dollar securities and to a minor extent by reduction of cash balances. These funds came back to the United States mainly in the form of purchases of U.S. Treasury securities by foreign official accounts. Thus, the international currency crisis was associated with considerable churning in domestic money markets, some expansion in bank credit, and transitory effects on the struc­ ture of interest rates; impacts on the general level of interest rates and the money stock appear to have been minor. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN □ MAY 1973 MONETARY AGGREGATES Nonborrowed reserves declined at about a 7 per cent annual rate in the first quarter, following a period of slow growth in the second half of last year. As bank credit demands continued strong, banks sought to acquire reserves in the Federal funds market. The Federal funds rate—the rate banks pay for reserve funds borrowed overnight from other banks—rose from an average of 5.33 per cent in December to 7.09 per cent in March and rose further in the course of April. With market rates rising, banks also increased their borrowings from Federal Reserve Banks, though at a higher cost as the discount rate was adjusted upward. 1 BANK RESERVES BILLIONS OF DOLLARS, SEASONALLY ADJUSTED * Break in series due to reserve requirement change. Monthly averages of daily figures for member banks. Nonborrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. The increased indebtedness to the Federal Reserve and the rising interest rates that had to be paid on day-to-day money in the Federal funds market placed bank reserve positions under increasing pres­ sure as the quarter progressed. This pressure was associated with reduced bank participation in securities markets, some tightening of lending terms, particularly to large business borrowers, and a reduced rate of expansion in money stock aggregates. The narrowly defined money stock, Mu slowed to a 1.7 per cent annual rate of growth in the first quarter of 1973, tending thereby to offset the relatively rapid 8.6 per cent growth rate in the fourth quarter of 1972. For the 6 months together, Mx increased at a 5.2 per cent annual rate. In the first quarter, demands for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1973 319 money may have been reduced by the cumulative impact of rising interest rates and possibly by growing concern over inflation leading to at least some temporary substitution of goods for cash. In addition, several special factors may have had an influence on growth of Mx in the first quarter. In January, for example, there was some indication that demand deposits were reduced as State and local governments shifted revenue-sharing funds, received in December, out of demand balances into time deposits. Also, in March the unusually light volume of business borrowing over the midmonth tax period suggests that corporations relied more heavily than usual on demand deposits as a source of funds for their tax payments. And finally, in the midst of the international disturb­ ances, as noted earlier, there could have been some minor move­ ment of funds abroad directly out of demand deposits in February and early March. Seasonally adjusted monthly averages. M, is currency plus private demand deposits adjusted. A/2 is Mx plus commercial bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings capital at savings and loan associations. The broader measures of the money stock, M2 and M3, also slowed significantly from the strong rates of growth maintained in 1972—expanding in the first quarter of 1973 at annual rates of 5.7 per cent and 8.6 per cent, respectively. These slowdowns reflected not only the tapering off of growth in Mx but also, beginning in February, a further reduction in inflows of consumertype time and savings deposits at both commercial banks and nonbank thrift institutions. Consumer-type time deposits, with their lower offering yields, became considerably less attractive to inves­ tors later in the quarter as interest rates on competing market assets rose considerably. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 FEDERAL RESERVE BULLETIN □ MAY 1973 TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES1 In per cent, quarterly figures are seasonally adjusted annual rates 1972 1973 Item 11 0y* 7/1 1 1972 II III IV I Member bank reserves: Total .................................................. 7.2 10.6 12.6 3.6 14.2 8.8 Nonborrowed ................................... 8.1 7.1 13.1 -.8 4.8 -7.1 Available to support private non­ bank deposits * ........................... 7.2 9.7 6.6 9.9 10.6 10.5 Concepts of money:3 M, ....................................................... 6.6 8.3 6.1 8.2 8.6 1.7 M2 ....................................................... 11.4 10.8 8.5 10.3 10.2 5.7 Ma ....................................................... 13.5 13.0 10.7 12.4 11.5 8.6 Bank credit proxy, adjusted4 ......... 9.4 11.6 11.5 9.8 12.1 15.0 MEMO (change in billions of dol­ lars, seasonally adjusted): Large CD’s ...................................... 7.7 10.1 3.7 2.4 3.3 11.7 U.S. Govt, demand deposits at member banks ........................... -.3 .4 .5 -1.1 1.4 .9 *Data for the money stock and other monetary aggregates have recently been revised to reflect changes in seasonal adjustment factors, corrections to the latest benchmark levels available for nonmember banks, and to adjust for discontinuity associated with the November 9 implementation of changes in Regulation J. A complete description of these revisions was published in the Federal Reserve Bulletin for February 1973. 2Total reserves less required reserves for U.S. Government and interbank deposits. 3Af, is currency plus private demand deposits adjusted. M2 is Mx plus bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings capital at savings and loan associations. 4Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter. There was, however, a sharp increase in outstanding large negotiable time certificates of deposit issued by banks, which offset the slowing in demand deposits and consumer-type time deposits. This led to rapid expansion in the adjusted bank credit proxy, which grew at an annual rate of about 15 per cent in the first quarter, somewhat higher than in 1972. Much of this increase in bank credit reflected shifts in credit flows resulting from the relatively low prime loan rate and from borrowing to finance fund flows abroad. As banks aggressively bid for funds to meet these shifting credit demands, net sales of CD’s increased by a record $11.8 billion in the first quarter, and offering rates on these instruments rose by more than 1 Vi percentage points. Moreover, since by February most banks were already offering the maximum rate allowed under Regulation Q on CD’s with maturity in excess of 90 days, an increasing proportion of the CD’s sold during the first quarter was in shorter-term issues on which regulatory ceilings had been sus­ pended in 1970. Offering rates on these latter issues rose as high as 1XA per cent at some of the larger New York City banks in April before declining slightly in mid-April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1973 321 Accompanying this sharp expansion in bank credit demands, total reserves of banks rose by almost a 9 per cent annual rate in the first quarter and reserves to support private nonbank deposits (RPD’s) at about a IOV2 per cent rate. Much of the increase in RPD’s reflected reserves that were absorbed by the unusually large rise in large negotiable CD’s and hence were not available to support expansion in Mx and M2. BANK USES OF FUNDS Bank credit transactions in the first quarter were dominated by a sharp expansion in business loans. At the same time real estate and consumer loans continued to rise at rates close to their strong 1972 pace, so that total loans expanded at a particularly rapid rate in the first quarter. Consequently, even though the expansion in loans was offset in part by a reduction in bank holdings of U.S. Government securities, total loans and investments expanded at close to a 20 per cent rate in the first quarter, nearly V/2 times the 1972 growth rate. TABLE 2 CHANGES IN BUSINESS LOANS AND COMMERCIAL PAPER, 19731 Business Dealerloans placed at all commercial Total commercial paper Annual per­ banks2 centage rate Quarter of change of total Billions of dollars, seasonally adjusted (Average monthly changes) 1972—1 1.0 1.0 9.9 II .8 .3 1.1 10.0 III .... 1.3 -.4 .9 8.0 IV .... 1.6 .2 1.8 14.8 1973_I 4.3 -1.3 3.0 24.6 Changes are based on last-Wednesday-of-month data. 2 Adjusted for outstanding amounts of loans sold to affiliates. The first-quarter surge in business borrowing from commercial banks was basically related to the continuing cyclical needs of corporations for working capital and inventory investment. In addition, however, bank credit demands were temporarily bolstered by unusual circumstances leading to changes in the structural composition of financial portfolios during the quarter. For example, as commercial paper rates rose above the prime rate, corporations found it more advantageous to finance short-term credit needs through banks. Thus, as shown in Table 2, the increase in business short-term credit demands in the first quarter was significantly lower when measured by the sum of business loans from banks plus borrowing in commercial paper markets, due to the substitution Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN □ MAY 1973 BANK CREDIT-components of one type of financing for the other. However, short-term business CHANGE, BILLIONS OF d6lLA^S credit demands, when measured by the two types of lending 4 U.S. GOVT. SECURITIES together, were strong by historical standards, as economic activity expanded sharply. Although other interest rates were rising rapidly in the first OTHER SECURITIES quarter, commercial banks-limited increases in the prime rate in response to requests by the Committee on Interest and Dividends. JZL In April, the CID issued guidelines to permit closer alignment TOTAL LOANS between the prime rate that banks charge their large corporate customers and rates on other money market instruments. Under the two-tier system proposed by the CID, however, rates charged small businesses are to remain reasonably stable. The prime rate charged large business borrowers rose, subsequent to this CID action, in two steps of lA of a percentage point each to 7 per cent in early May. In addition to the increase in business borrowing in the first quarter, total bank lending was buoyed by a sharp expansion in loans to foreign commercial banks. Apparently, these banks responded to international developments by drawing on lines of credit with U.S. banks in order to take advantage of both changing 02 03 Ql 1972 1973 exchange rates and the relative interest rate differentials in the U.S. and the Euro-dollar market. During February and March loans ♦Adjusted for $800 million matched sale-purchase transactions at the end of to foreign banks rose by about $2 billion, but by late March and September. Seasonally adjusted. Business loans early April some repayment of these loans had begun to develop. adjusted for transfers between banks and The high level of consumer credit demands in the first quarter—a their holding companies, affiliates, sub­ sidiaries, or foreign branches. continuation of the 1972 trend—was evidenced not only in the strong growth rate in direct bank loans to consumers, but also by BANK LOANS-major components mm, iilliaui it mm a step-up in bank loans to finance companies. Similarly, borrowing at banks by other nonbank financial institutions—including mort­ gage bankers and real estate investment trusts—was unusually large. Although banks accommodated the growth in credit demands in the first quarter primarily through sales of negotiable CD’s, they j h also acquired funds by reducing their holdings of U.S. Government REAL ESTATE a securities—especially Treasury bills. On a seasonally adjusted basis, Treasury securities declined more than $1.4 billion during the first quarter. Furthermore, after increasing by less than $1 billion n in January, bank holdings of securities other than Treasury issues showed almost no growth during February and March. SrECnURIT Y — ._R___*. i i The sharp over-all rise in bank credit demands over the last year, [III]*, i v- 9 Ql Q2 Q3 Q4 Ql along with continual tightening of reserve positions, has caused 1972 1973 banks to alter somewhat their lending practices. The results of a ♦Adjusted for $800 million matched sale-purchase transactions at the end of survey taken in January indicate that there has been a significant September. tightening of nonprice terms and conditions of bank lending since Seasonally adjusted. Loans adjusted for transfers between banks and their November of last year: compensating balance requirements are holding companies, affiliates, subsidiaries, or foreign branches. higher, maturity policies on loans are tighter, and standards of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1973 323 creditworthiness are more strict. Moreover, many banks in the survey indicated a growing reluctance to make term loans, which in prior months had represented an increasingly significant propor­ tion of new loans granted by banks. NONBANK On balance, the rate of growth of deposit inflows to nonbank thrift INTERMEDIARIES AND institutions during the first quarter of 1973 remained about the same MORTGAGE MARKETS as in the previous quarter. While the over-all rate of expansion remained historically strong, the quarterly performance was bol­ stered by the sharp increase in deposits during January; as the quarter progressed deposit growth slowed, especially at mutual NONBANK SAVINGS ACCOUNTS savings banks. Contributing to this slower rate of growth in deposits ANNUAL RATE OF CHANGE, PER CENT of nonbank depositary intermediaries were the increasing relative attractiveness of yields on competitive market instruments and a decline in the rate of personal saving, which apparently in part reflected the unusual strength in consumer demand, especially for durable goods. To some extent, savings balances may have been drawn down in the first quarter in anticipation of larger refund checks to be paid by the Treasury on 1972 personal income tax returns. Mortgage debt outstanding increased at a seasonally adjusted quarterly rate of about $20 billion in the first quarter of 1973. Accumulation of both nonresidential and residential mortgage debt 1972____________1973 reached new highs, but the increase for the residential sector was Seasonally adjusted. particularly striking, at a quarterly rate of approximately $15 billion, compared with $11.3 billion a year earlier. TABLE 3 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly rates 1972 1973 Type of debt I II III IV Ie Total ............................................................ 15.6 16.2 16.3 17.1 20.1 Residential ........................................... 11.3 11.8 11.8 12.6 14.9 Other1 ................................................... 4.3 4.4 4.5 4.5 5.2 ‘Includes commercial and other nonresidential as well as farm properties. ePartly estimated. Savings and loan associations accounted for about half the increase in net mortgage debt during the first quarter. However, the net contributions from commercial banks and mutual savings banks were also exceptionally large for this time of year; and net activity by the Federal National Mortgage Association and related agencies operating in the secondary market expanded further on the average. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN □ MAY 1973 FUNDS RAISED IN With the exception of the mortgage sector, credit demands on the SECURITIES MARKETS long-term market moderated appreciably during the first quarter of 1973. Corporate sales of long-term securities declined by more than 20 per cent, primarily as a consequence of the large volume of internally generated funds and the strong liquidity position of many firms. Because of the virtual absence of industrial borrowers from the long-term market and the continued tendency for utilities to do much of their financing in the equity market, public bond sales dropped 40 per cent below the October-December total. Takedowns of privately placed bonds were also down substantially from the record volume of the fourth quarter. Investment funds appear to have been readily available, but prospective borrowers were relatively few. New gross stock issues in the first quarter of 1973 rose by about 18 per cent. Much of this volume represented preferred stock offerings by public utilities, and the total included the largest such offering on record—a $500 million issue. TABLE 4 OFFERINGS OF NEW SECURITY ISSUES Quarterly totals in billions of dollars, not seasonally adjusted 1972 1973 Type of issue I II III IV Ie Corporate securities—Total ............. 9.8 11.2 9.2 10.6 8.3 Bonds ..................................................... 7.0 7.4 6.1 7.3 4.4 Stocks ................................................... 2.9 3.8 3.1 3.3 4.0 State and local government bonds ..................................................... 6.0 6.3 5.5 5.9 5.6 e Estimated. Note.—Details may not add to totals because of rounding. Long-term debt offerings by State and local governments de­ clined a little in the first quarter, with most of the decline occurring in sales of general obligation bonds. State and local governments had received $5.1 billion in revenue-sharing payments over the period from early December through the end of March, and rising tax revenues resulted in relatively comfortable fiscal positions for local governments in the aggregate, but these developments have not yet had a marked effect on long-term borrowing. However, State and local governments did retire about $1.5 billion of short­ term securities, which are not shown in Table 4, in the first quarter. Federal expenditures continued to exceed receipts during the first quarter, but the $9.5 billion deficit was $1 billion less than that registered either in the preceding quarter or in the comparable period a year earlier. Net cash borrowing by the Treasury amounted to $8.4 billion, more than twice as much as in the same quarter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q1 1973 325 TABLE 5 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals in billions of dollars, not seasonally adjusted 1972 1973 Item I II III IV Ie Budget surplus or deficit .................. -10.5 5.6 -2.0 -10.5 -9.5 New cash borrowings, or repay­ ments ( —) ....................................... 3.9 -6.0 5.0 12.3 8.4 Other means of financing1 .............. 3.0 2.8 -3.3 -.5 2.9 Change in cash balance .................... -3.6 2.4 -.3 1.3 1.8 MEMO. Net borrowings by Federally sponsored credit agencies2 .4 rl .4 .7 1.0 1.7 1 Checks issued less checks paid and other accrued items. 2Includes debt of Federal home loan banks, the.Federal Home Loan Mortgage Corporation, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and bonds guaranteed by the Government National Mortgage Association). e Estimated. r Revised. of 1972. However, $7.7 billion of this represented sales of special issues to foreign central banks, in connection with the international exchange market difficulties in the first quarter. Because of the large first-quarter borrowing and with tax receipts also strong, the Treasury cash balance at the end of March was almost $13 billion, or $2 billion higher than at the end of December. Net borrowings by Federally sponsored credit agencies rose substantially in the first quarter, reflecting large issues by the Federal land banks, Federal intermediate credit banks, and the banks for cooperatives. INTEREST RATES In response to demands for short-term credit and the pressure of loan demands on the commercial banking system that resulted in unusually strong sales of CD’s and some liquidation of Government securities, short-term interest rates advanced sharply over the first quarter of the year, bringing money market rates back to the levels of late 1970. Treasury bill rates rose by 1 percentage point, and the Federal funds rate jumped almost 2 points. Yields on commer­ cial paper were 140 basis points higher in March than they had been in December, while the prime rate had advanced by a much smaller amount. Reflecting these advances in other money market rates, the Federal Reserve discount rate was raised in two steps from AVi to 5l/z per cent, and then in two steps to 6 per cent early in May. Given the rapid rise in short-term rates, the rise in long-term security yields was comparatively moderate. Yields on Treasury bonds showed little change, and the lack of new issues in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3 INTEREST RATES SHORT-TERM LONGTERM CONVENTIONAL MORTGAGEShud i C4-O6 MMMONETRHCIAL PAPER Aaa UTILITY NEW ISSUE U.S. GOVT. STATE AND LOCAL GOVT. T3-RMEOANSTHURY BILLS ♦Level of series was affected by issue of new 20-year U.S. Government bond in January. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commer­ cial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept, of Housing and Urban Development; corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to a Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. corporate debt area helped to restrain the rise in high-grade cor­ porate bond rates to about V3 of a percentage point. The increase of almost 1 percentage point in the yield on long-term Treasury bonds, shown in Chart 3, reflects a discontinuity in the calculation of the series resulting from the rare issuance of a 20-year bond in January. Tax-exempt yields rose by only lA of a percentage point. Although volume remained high, the supply of funds to the market remained ample. Since a high proportion of the new issues were revenue bonds or offerings of units with lower ratings—types of municipal bonds that generally carry higher yields—tax-exempt securities were particularly attractive to fire and casualty companies. Mortgage rates edged up only slightly during the quarter. □ 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 B ulletin 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 B ulletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies’9 that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve B ulletin. currently available in that form. Study Summary OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS James L. Kichline, P. Michael Laub, and Guy V. G. Stevens—Staff, Board of Governors Presented in earlier form at the Econometric Society meetings in December 1971; revised in early 1973 This study describes a model and associated Furthermore, the market valuation of some of empirical results that are used to calculate a these characteristics varies over time, in partic­ weekly index of yields on newly issued cor­ ular for the call option and the default risk. In porate bonds. The index provides a sensitive order to track accurately the level and changes measure of interest rates on corporate bonds and in a “pure” yield on a newly issued corporate aids in analyzing current market developments. bond over time, it is necessary to measure the It is also expected that the yield series will yield on a bond with invariant characteristics—a provide, in many instances, a preferred substi­ standard bond. The standard bond in this paper tute for the corporate yield series on seasoned is defined as a new straight-debt, long-term (20 bonds that are now widely used in research years or longer) issue by a utility, rated Aaa efforts. The index is published in the Federal both by Moody’s Investors Service, Inc., and Reserve B ulletin. by Standard and Poor’s, Inc., that carries 5-year There are relatively few new offerings of call protection and is underwritten by a process corporate bonds in a given week; on occasion of competitive bidding. These characteristics there may be none. Moreover the small number were found to be empirically significant in de­ of observations are for bonds with substantially termining yield differentials among various cor­ heterogeneous characteristics. Newly issued porate new issues. bonds in any week may be from any industry A nonlinear regression model was developed group and may have different default risks, call to adjust the observed yields and to compute options, call schedules, maturities, and so forth. the implied yield on the standard bond. Call- 327 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

protection adjustments are calculated by using are tracked by taking advantage of the fact that theoretical models developed by Gordon Pye the spreads between a given rating category for and presented in articles published in the Jour­ companies and a long-term Government bond nal of Finance. The rating spreads among dif­ tend to move together. ferent categories of corporate issues are assumed The results indicate that bonds that are un­ to be a linear function of the spread between derwritten by competitive bidding in general the yield on the standard bond and the yield yield less than those underwritten by negotia­ on a long-term Government bond that is as­ tion. The study discusses several reasons for this sumed to have no default risk. For the model phenomenon, as well as reasons why smaller that was finally selected, the slope coefficients and larger issues might yield more than those in this function are positive and significantly of intermediate sizes. However, the empirical different from zero. Thus, the rating spreads results did not indicate that size of issue was among different categories of corporate bonds an important variable. □ 328 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Bank Income, 1972 Net income of member banks continued to in­ banks—rose at a somewhat less rapid pace than crease in 1972, but the rate of growth was in 1971, as inflows of these deposits moderated slower than in 1971 and was well below the somewhat. Salaries and wages also rose less rates in 1969 and 1970. The increase repre­ than in 1971. However, the rise in interest costs sented a substantial rise in after-tax profits from associated with the issuance of capital notes and operations but a smaller net gain on securities debentures accelerated in 1972, and interest transactions than in 1971. costs on Federal funds purchased and securities Member banks were able to add significantly sold under repurchase agreements rose sharply to their earning assets in 1972. However, the following a marked decline in 1971. Provision over-all rate of return on such assets and the for loan losses increased, but actual net loan average cost of funds to banks were less than losses were much less in 1972 than in 1971. in the previous year. Both operating earnings And with total loans up substantially, the ratio and operating expenses increased substantially, of net loan losses to average loans outstanding with the rate of increase being slightly greater decreased sharply. for expenses. Nevertheless, net income reached Member banks in 1972 again recorded net a record level. gains on securities transactions. Also, extraor­ dinary charges or credits after taxes added SUMMARY slightly to income. Although operating profits (income before income taxes and securities Operating income at member banks rose con­ gains or losses) expanded appreciably, applica­ siderably more in 1972 than in 1971, reflecting ble income taxes showed only a negligible rise. increases in revenues on both loans and invest­ As a result, net income of member banks rose ments. Although short-term market interest to a new high of $4,400 million, an increase rates rose appreciably over the year and long­ of 6.9 per cent over the 1971 level. This rate term rates changed little on balance, average of increase, however, was smaller than that of yields on bank portfolios were somewhat lower the previous year and also less than the rate of than in the previous year. These declines were growth in net worth (equity capital plus re­ more than offset by increases in holdings of both serves). Thus, the ratio of net income to equity loans and investments. Outstanding loans rose capital plus reserves declined slightly. Cash considerably in nearly all major loan categories dividends declared fell for the first time since in response to the rapid upsurge in economic the early 1940’s, and the ratio of dividends to activity. With deposit inflows also remaining net income also declined. rapid, banks were able to meet expanding loan Among large banks in money market centers • demands and at the same time to add to their and other areas, those in New York City (which holdings of investments. have extensive foreign operations and a smaller Operating expenses of member banks, while proportion of their total deposits in savings and rising only slightly faster than operating income consumer-type time deposits) recorded the fas­ in 1972, increased almost twice as fast as in test rate of growth in net income. All other the previous year. Interest paid on time and banks, while posting strong increases in loan savings deposits—the largest single expense for income during the year, were faced with sharply rising interest expenses on time and savings Note.—This article was prepared by Anthony W. Cyrnak of the Board’s Division of Research and Statis­ deposits, and their net income increased more tics. slowly. 329 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN □ MAY 1973 OPERATING INCOME funds sold and securities purchased under resale agreements) in 1972 amounted to $20,791 mil­ Member bank operating income rose to $31,335 lion. This represents an increase of $1,797 mil­ million in 1972 (Table 1), an increase of $2,665 lion, or 9.5 per cent, for the year and contrasts million or 9.3 per cent compared with increases sharply with the 2.5 per cent decline in 1971. of 2.7 per cent in 1971 and of 11.7 per cent The average rate of return on loans declined in 1970. Unlike other recent years, the propor­ again in 1972, but less than in 1971, due in tion of bank revenue derived from securities part to some shifting of the loan mix toward decreased slightly, whereas there was an in­ higher-yield categories, particularly real estate crease in the contribution of loan revenue to and consumer loans. But this decline was more operating income. than offset by the increase in total loans out­ Interest and fees on loans (including Federal standing. TABLE 1 CONSOLIDATED REPORT OF INCOME FOR 1969-72 FOR ALL MEMBER BANKS Amount Change, in millions of dollars 1971-72 Item In millions Per 1972 1971 1970 1969 of cent dollars Operating income—Total ........................................................................................... 31,335 28,670 27,913 24,991 2,665 9.3 Loans: Interest and fees ...................................................................................................... 19,997 18,317 18,706 17,104 1,680 9.2 Federal funds sold and securities purchased under resale agreement 794 677 781 649 117 17.3 Securities: Excluding trading account income—total ..................................................... 6,086 5,662 4,832 4,263 424 7.5 U.S. Treasury securities ................................................................................. 2,412 2,434 2,208 2,041 -22 -.9 U.S. Govt, agencies and corporations ....................................................... 730 578 415 322 152 26.3 States and political subdivisions ................................................................. 2,709 2,468 2,090 1,794 241 9.8 Other securities .................................................................................................... 234 182 118 106 52 28.6 Trust department .......................................................................................................... 1,269 1,182 1,075 972 87 7.4 Service charges on deposit accounts .................................................................... 904 896 868 835 8 .9 Other charges, fees, etc............................................................................................... 864 795 681 557 69 8.7 Other operating income: On trading account (net) ...................................................................................... 254 340 346 137 -86 -25.3 Other ............................................................................................................................ 1,168 802 625 473 366 45.6 Operating expenses—Total ........................................................................................ 25,639 23,346 22,193 19,525 2,293 9.8 Salaries and wages of officers and employees .................................................. 6,020 5,666 5,282 4,690 354 6.2 Officer and employee benefits ................................................................................. 1,073 973 876 749 100 10.3 Interest on— Time and savings deposits .............................................................................. 10,513 9,426 8,139 *7,059 1,087 11.5 Federal funds purchased and securities sold under repurchase agreements......................................................................................................... 1,387 1,073 1,365 1,177 314 29.3 Other borrowed money...................................................................................... 102 127 444 562 -25 -19.7 Capital notes and debentures........................................................................... 184 123 90 89 61 49.6 Net occupancy expense ............................................................................................. 1,259 1,130 1,013 867 129 11.4 Furniture, equipment, etc........................................................................................... 848 797 722 615 51 6.4 Provision for loan losses ........................................................................................... 767 681 534 381 86 12.6 Other operating expenses .......................................................................................... 3,486 3,348 3,728 3,336 138 4.1 Income before income taxes and securities gains or losses .............................. 5,696 5,325 5,720 5,467 371 7.0 Applicable income taxes ................................................................................................ 1,356 1,349 1,775 1,813 7 .5 Income before securities gains or losses ................................................................. 4,340 3,976 3,945 3,653 364 9.2 Net securities gains or losses (-) after tax ............................................................. 46 144 -107 -209 -98 Extraordinary charges (-) or credits after taxes ................................................... 14 -3 -15 5 17 Less minority interest in consolidated subsidiaries ............................................. (2) (2) (2) (2) (2) Net income ........................................................................................................................... 4,400 4,117 3,823 3,450 283 6.9 Cash dividends declared3 .............................................................................................. 1,839 1,908 1,754 1,523 -69 -3.6 *This item excludes, and “interest on other borrowed money” 2Less than $500,000. and “other operating expenses” include, $101 million of interest 3On common and preferred stock. on Euro-dollar borrowing incorrectly reported as interest on time and savings deposits. Note.—Figures may not add to totals because of rounding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK INCOME, 1972 331 TABLE 2 internally generated funds available to corpora­ CHANGES IN MEMBER BANK AVERAGE LOANS, tions from improved profits and liberalized de­ INVESTMENTS, DEPOSITS, AND CAPITAL OUTSTANDING IN 1972 preciation rules. The bank prime rate on busi­ ness loans increased steadily during 1972 after Amounts shown in millions of dollars declining in 1971, but was down somewhat on Average Change average. amount1 Real estate loans outstanding at member Item 1971 1972 Amount Per­ banks in 1972 increased $9,371 million, or 16.3 centage per cent; such loans accounted for about onefourth of the growth of total loans during the Total loans and investments, gross2 .............................. 383,620 431,505 47,885 12.5 year. Reflecting a strong increase in the demand Federal funds sold and securi­ for new housing, this increase was nearly IVi ties purchased under resale times as large as that recorded in 1971. Instal­ agreement .......................... 13,359 16,964 3,605 27.0 Other loans ............................. 250,902 284,128 33,226 13.2 ment credit for auto purchases accounted for Commercial and industrial 99,336 106,003 6,667 6.7 Agricultural ....................... 6,981 7,910 929 13.3 much of a $7,410 million, or 14.1 per cent, Real estate ......................... 57,542 66,913 9,371 16.3 For purchasing and carry­ increase in consumer loans of member banks ing securities ................. 9,137 12,177 3,040 33.3 during 1972. To financial institutions ... 18,379 23,090 4,711 25.6 Other loans to individuals. 52,568 59,978 7,410 14.1 Interest and dividends earned on portfolio All other ............................. 6,960 8,058 1,098 15.8 investments (excluding trading account) were U.S. Treasury securities3...... 43,380 44,543 1,163 2.7 higher in 1972 than in 1971 as the rise in U.S. Govt, agency and cor­ poration securities3............ 9,320 12,000 2,680 28.8 holdings of these securities more than offset the States and political subdivi­ sion securities3 ................. 59,126 65,837 6,711 11.4 decline in the average rate of return. Member Other securities3.................... 2,563 3,503 940 36.7 Trading account securities.... 4,970 4,529 -441 -8.9 bank earnings derived from portfolio securities rose by $424 million, or 7.5 per cent, in 1972. Total deposits......................... 404,182 447,454 43,272 10.7 Time deposits ......................... 197,571 227,592 30,021 15.2 With loan demands stronger and deposit inflows Savings .............................. 82,002 90,163 8,161 10.0 Other time I.P.C................. 87,655 102,814 15,159 17.3 somewhat reduced, average holdings of securi­ All other time .................... 27,915 34,615 6,700 24.0 ties rose $ 11,494 million, or about one-third less Equity capital4 ....................... 33,502 36,222 2,720 8.1 than in 1971. As in 1971, however, member Total capital accounts5 ......... 35,734 39,322 3,588 10.0 Reserves on loans and banks added longer-term securities to their securities ............................ 5,323 5,518 195 3.7 Total equity capital and portfolios, which tended to cushion the decline reserves .............................. 38,825 41,739 2,914 7.5 in average yield. Average holdings of U.S. Treasury securities Averages of figures for three call dates—the end of the preceding year and the June 30 and December 31 call dates for the calendar year, by member banks increased by $1,163 million, includes securities held in trading account. 3Excludes securities held in trading account. or 2.7 per cent, in 1972, substantially less than includes common stock, preferred stock, surplus, undivided profits, in 1971. In addition, the average rate of return and reserves for contingency and other capital reserves, includes equity capital plus capital notes and debentures. on these securities declined 20 basis points to 5.41 per cent during the year (Table 3). As a The increase in average holdings of loans by result, earnings from this source decreased 1 per member banks in 1972 was $36,831 million, cent, in contrast to an increase of 10 per cent or 13.9 per cent—substantially above that of the in 1971. previous year (Table 2). Some change in the Income from securities of States and political composition of loan portfolios at member banks subdivisions rose nearly 10 per cent in 1972 continued to occur. Despite the upsurge in eco­ compared with 18 per cent in 1971. Although nomic activity, commercial and industrial loans the average rate of return on these securities also rose only 6.7 per cent in 1972, about half the fell, average holdings increased more than rate of increase in total loans, although growth enough to offset this decline. Income from obli­ accelerated considerably after midyear. The rel­ gations of U.S.Government agencies and of “all atively moderate demand for these loans re­ other” securities rose rapidly—26.3 and 28.6 flected in large part the expanding volume of per cent, respectively—for the most part in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN □ MAY 1973 response to greatly expanded holdings of these Interest paid on time and savings deposits investments. rose $1,087 million, or 1K5 per cent. Member Income from other sources in the aggregate banks expanded their average holdings of these increased in 1972, although less rapidly than deposits by 15.2 per cent, but interest rates paid, in 1971 and 1970. Trust department income rose on the average, declined by 16 basis points to $87 million, or 7.4 per cent. Service charges 4.61 per cent. on deposit accounts increased by $8 million (1 As in 1971, much of the increase in these per cent) and other charges and fees by $69 expenses reflected the large inflows of regular million (8.7 per cent). “Other operating in­ savings and consumer-type time deposits. While come” includes several items, among them net most banks did not change their offering rates income from trading account, foreign branches, on consumer-type deposits during the year, some large banks holding substantial amounts TABLE 3 of these deposits reduced their offering rates in SELECTED MEMBER BANK INCOME RATIOS early 1972 and maintained these reductions In per cent throughout the year. Rates paid on large negotiable CD’s—a rate- Ratios 1972 1971 1970 1969 sensitive money market instrument issued in Ratios to equity capital denominations of $100,000 and over—fluc­ (including reserves)— tuated during the first half of 1972 before post­ Income before securities gains or losses ....................... 10.38 10.22 10.75 10.70 ing steady increases in the second half, but were Net income ................................... 10.54 10.60 10.44 10.10 Cash dividends declared1 4.40 4.91 4.79 4.46 lower on average than in 1971. The amount of these deposits outstanding rose somewhat more Rates of return on— Loans, gross ................................ 6.90 7.18 7.91 7.57 in 1972 than in 1971. U.S. Treasury securities2 ...... 5.41 5.61 5.62 4.95 U.S. Govt, agencies and Interest expenses on Federal funds purchased corporations2 ........................... 6.08 6.20 6.55 5.81 State and local govt. and securities sold under repurchase agreements obligations2 ............................ 4.11 4.17 4.23 3.87 increased $314 million, or 29.3 per cent, fol­ Other securities2 ......................... 6.67 7.10 6.30 5.59 lowing a decrease of roughly this amount in Interest on time deposits to total time deposits ................ 4.61 4.77 4.98 4.47 1971. The volume of these funds used rose substantially, while the average rate paid de­ 'On common and preferred stock. 2Excludes securities held in trading account. clined from 4.66 to 4.44 per cent. Interest expenses on other borrowed money, however, Note.—These ratios were computed from aggregate dollar amounts of income and expense items. The capital, deposits, declined $25 million, reflecting in part a further loans, and securities items on which the ratios were based were averages for two call dates in the calendar year and the last call reduction in the volume of Euro-dollar borrow­ date in the preceding year. ing and a decline of more than 2 percentage points in average rates paid on such borrowings. and Edge Act subsidiaries. Income from trading Salary and wage expenses (including bene­ account decreased substantially during 1972— fits) at member banks increased $454 million, $86 million, or 25.3 per cent. Earnings from or 6.8 per cent, during 1972. This was less than foreign branches showed a significant in­ the 8 per cent increase in the preceding year, crease—$201 million, or more than twice the and it reflected a successful attempt on the part increase in 1971. This growth reflected the con­ of member banks to hold down these expenses tinuing expansion of foreign operations by despite a 3 per cent growth in the total number member banks. of employees. Provision for loan losses totaled $767 million OPERATING EXPENSES in 1972; this was 12.6 per cent more than in Total operating expenses in 1972 rose 9.8 per 1971, and it compared with an increase of 13.9 cent to a total of $25,639 million. Virtually all per cent in loans outstanding. Nearly all banks expense items showed increases except interest operate on a reserve-accounting method, and for on other borrowed money. most of these banks, the provision for loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK INCOME, 1972 333 losses is an estimate of the losses that the bank INCOME TAXES may reasonably expect to incur on the current Provision for income taxes at all member banks loan portfolio (determined by methods pre­ amounted to $1,260 million in 1972. Although scribed by supervisory authorities).1 For ac­ operating income (that is, income before income counting purposes, this item is a current operat­ taxes and security gains or losses) rose 7 per ing expense and, therefore, affects net income cent, applicable taxes on operating income rose in the current year. only $7 million or less than 1 per cent, reflecting Actual net loan losses reported by member the significant contribution of interest on taxbanks in 1972 totaled $717 million, 21.6 per exempt securities to 1972 income growth. In cent less than the $914 million (a record for 1972, tax-free transfers from capital accounts recent years) posted in 1971 when a few large to reserves for loan losses reduced Federal in­ banks experienced sizable losses. The decline come taxes of member banks by $153 million, in losses, coupled with the general expansion approximately the same amount as in 1971. in loans outstanding, caused the ratio of net loan losses to average loans outstanding to drop to NET INCOME AND CASH DIVIDENDS 0.23 per cent in 1972—substantially below the 0.34 and 0.32 per cent recorded in 1971 and Net income of member banks rose $283 million, 1970, respectively. or 6.9 per cent, in 1972 to $4,400 million. This With long-term rates in 1972, as in 1971, was slightly below the 7.7 per cent rise in 1971. appreciably below the record highs of 1970 and With equity capital plus reserves rising slightly with needs for capital expanding, member banks faster than net income, the rate of return on net added substantially to their outstanding capital worth at member banks declined very slightly notes and debentures. Interest expense from this to 10.54 per cent. source rose nearly 50 per cent from the 1971 Despite the increase in net income, cash div­ level to a total of $184 million. idends declared during 1972 were $69 million, Furniture and equipment expenses rose $51 or 3.6 per cent, less than in 1971. Relative to million or 6.4 per cent during 1972. Net net income, dividends declined 4 percentage occupancy expenses amounted to $1,259 mil­ points from the preceding year to 42 per cent. lion—$129 million, or 11.4 per cent, more than The ratio of dividends declared to equity capital in 1971. All other expenses (except for Euro­ plus reserves (net worth) also fell—from 4.91 dollar interest expenses, which some banks per cent in 1971 to 4.40 per cent. report in this figure) increased slightly during NET INCOME BY SIZE OF BANK the year. As in other years there were differences in OTHER TRANSACTIONS earnings between large money market banks and all other banks in the United States. At large Member banks again realized capital gains on banks in New York and Chicago, net income sales of investment securities in 1972. Such rose 11.6 per cent and 6.9 per cent, respec­ gains totaled $46 million, considerably below tively. These figures compare with increases of the $144 million recorded in 1971, when market 3.8 per cent for large banks in “other” cities values of these assets had increased consid­ and 7.4 per cent at “all other” banks (Table erably. Extraordinary charges or credits after 4). taxes were, for the first time in a number of Net income at large New York City banks years, a slight “plus” factor in net income. rose faster in 1972 than in 1971 despite rela­ tively weak loan demand over most of the year. 1 All member banks that do.not provide for loan losses Loan income at these banks increased only 3.9 on a reserve basis must use their actual net loan losses per cent as compared with 9.5 per cent for all each year as a minimum “provision for loan losses.” member banks. Income from foreign branches Other banks may use this method if they do so on a regular basis. of these banks, however, rose much more than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN □ MAY 1973 TABLE 4 CONSOLIDATED REPORT OF INCOME FOR 1972 AND 1971 FOR MEMBER BANKS GROUPED BY CLASS In millions of dollars Large banks All member All other banks banks Item New York City City of Chicago Other 1972 1971 1972 1971 1972 1971 1972 1971 1972 1971 Operating income—Total ................. 31,335 28,670 4,992 4,725 1,285 1,175 11,679 10,678 13,378 12,093 Loans: Interest and fees ............................ 19,997 18,317 3,180 3,053 804 727 7,609 6,937 8,403 7,601 Federal funds sold and securities purchased under resale agreement .............................. 794 677 48 55 45 31 390 294 310 298 Securities: Excluding trading-account in­ come: U.S Treasury securities ........ 2,412 2,434 260 272 77 87 757 768 1,318 1,307 U.S. Govt, agencies and cor­ porations ............................... 730 578 31 40 10 11 160 122 529 406 States and political subdivi­ sions ........................................ 2,709 2,468 341 308 122 101 915 865 1,332 1,194 Other securities ......................... 234 182 34 32 9 7 73 65 117 77 Trust department ................................ 1,269 1,182 374 368 97 89 507 461 291 264 Service charges on deposit ac­ counts ............................................... 904 896 74 68 7 6 335 334 488 487 Other charges, fees, etc.................... 864 795 107 120 28 25 411 377 317 274 Other operating income: On trading account (net) ............ 254 340 103 112 22 56 112 151 16 21 Other .................................................. 1,168 802 439 297 63 35 409 305 257 164 Operating expenses—Total ............. 25,639 23,346 3,915 3,700 1,021 922 9,679 8,822 11,023 9,901 Salaries and wages of officers and employees ................................... 6,020 5,666 989 956 207 195 2,295 2,141 2,530 2,375 Officer and employee benefits ....... 1,073 973 217 200 41 39 396 359 419 376 Interest on— Time and savings deposits ........ 10,513 9,426 1,262 1,145 418 362 3,794 3,475 5,039 4,444 Federal funds purchased and se­ curities sold under repur­ chase agreements................. 1,387 1,073 361 299 129 102 732 568 165 104 Other borrowed money ............. 102 127 21 39 12 11 51 61 18 15 Capital notes and debentures ... 184 123 50 38 4 2 90 56 41 26 Net occupancy expense .................. 1,259 1,130 251 218 50 46 451 403 508 463 Furniture, equipment, etc................. 848 797 109 102 26 25 317 302 396 368 Provision for loan losses ................. 767 681 158 128 36 34 294 255 279 263 Other operating expenses ............... 3,486 3,348 497 575 100 106 1,260 1,201 1,629 1,466 Income before income taxes and se­ curities gains or losses — 5,696 5,325 1,077 1,025 264 252 2,000 1,856 2,355 2,191 Applicable income taxes ...................... 1,356 1,349 296 318 58 71 513 467 488 493 Income before securities gains or losses ...................................... 4,340 3,976 781 706 205 182 1,487 1,388 1,867 1,699 Net securities gains or losses( —) after taxes ........................................ 46 144 -2 7 -4 7 -5 38 58 93 Extraordinary charges ( —) or credits after taxes .............................. 14 -3 9 -7 (i) -1 2 3 2 2 Less minority interest in consolidated subsidiaries............................ (i) (i) (i) (i> (i) (i) Net income ................................................ 4,400 4,117 788 706 201 188 1,484 1,429 1,927 1,794 Cash dividends declared ...................... 1,839 1,908 310 466 122 78 719 716 688 648 Ratios (per cent): To equity capital (incl. reserves): Income (after taxes) before se­ curities gains or losses .......... 10.38 10.22 9.72 9.51 9.89 9.58 10.24 10.18 10.86 10.66 Net income ...................................... 10.54 10.60 9.81 9.51 9.68 9.88 10.23 10.48 11.24 11.29 ^ss than $500,000. Note.—Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEMBER BANK INCOME, 1972 335 in other recent years. Chicago banks experi­ Net income at other large banks rose nearly enced a more rapid increase in income from 3 percentage points less in 1972 than in 1971 loans than New York banks, but interest ex­ while that of “all other banks,” a group that penses on time and savings accounts and Federal includes many small banks, rose at close to the funds purchased (which are a greater proportion same rate in both years. A major factor contri­ of operating expenses for Chicago banks) rose buting to the reduced earnings growth at other even more rapidly. As a result, net income for large banks was the turnaround from sizable net large banks in Chicago was up about 10 per­ gains on securities transactions in 1971 to net centage points less in 1972 than in 1971. losses in 1972. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Yields On Recently Offered Corporate Bonds A series of yields on recently offered corporate Kichline, P. Michael Laub, and Guy V. G. bonds has been developed as a companion series Stevens; a summary of this study appears on to the index of yields on newly issued corporate pages 327 and 328. bonds (see Bulletin for September 1972). There are several differences between the two Monthly and quarterly data for 1965 to 1973 yield series. First, bonds that meet the criteria and weekly data for 1973 are shown in Table for inclusion in the newly issued series are l.1 Data for this series will be published in the employed in the calculation of that series only statistical section of the Bulletin. in the week in which they are initially offered The yield series on recently offered bonds to investors; bonds in the recently offered series relies on the procedures and the model underly­ are the same as those in the newly issued series, ing the companion series of yields on newly but they are employed in calculating the series issued bonds. That series is estimated for a for each of the first 4 weeks after termination standard bond, which is defined as a new, of underwriter price restrictions.2 Second, yields straight-debt, long-term (20 years or longer) on bonds in the newly issued series are based utility issue, rated Aaa both by Moody’s In­ on prices asked by underwriting syndicates; vestors Service, Inc., and by Standard and yields on recently offered bonds, on the other Poor’s, Inc., that carries 5-year call protection hand, are based on prices determined in the free and is underwritten by a process of competitive market and hence approximate market clearing bidding. New corporate debt issues with char­ prices. Third, yields on recently offered bonds acteristics other than those of the standard bond are derived from quotes at the close of trading are included in determining the newly issued on Friday, while new issues may be offered on yield series by using a nonlinear regression model any day of the week. Fourth, no adjustment is to calculate the basis-point values of the heter­ made for type of underwriting in the recently ogeneous characteristics. Details of the model, offered series because such differences as may the estimation procedures, and a discussion of exist due to the underwriting process are as­ the results are presented in a Federal Reserve sumed not to exist in market-determined yields. Staff Economic Study, “Obtaining the Yield on a Standard Bond from a Sample of Bonds with 2During the 4-week interval trading is generally active Heterogeneous Characteristics,” by James L. and reliable quotes are usually available. In addition, coupons on the bonds in the series do not differ appre­ ciably from coupons on bonds in the new issue market. xThis series was developed by James L. Kichline, In contrast, bonds outstanding for significantly longer P. Michael Laub, and Beryl Deck. periods of time often have thin markets and may carry Weekly data beginning January 1965 are available noncurrent coupons. Both of these factors influence the upon request from Capital Markets Section, Division yield and often make seasoned yield indices less sensi­ of Research and Statistics, Board of Governors of the tive to current market developments and, at times, less Federal Reserve System, Washington, D.C. 20551. representative of the underlying market situation. 336 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE 1 RECENTLY OFFERED AAA UTILITY BONDS In per cent 1965 1966 1967 1968 1969 1970 1971 1972 1973 Period Monthly and quarterly, 1965-73 Jan................................................. 4.44 4.78 5.26 6.31 6.90 8.64 7.61 7.24 7.37 Feb................................................ 4.42 4.93 5.18 6.25 7.02 8.54 7.43 7.34 7.42 Mar............................................... 4.41 5.16 5.32 6.40 7.21 8.60 7.61 7.27 7.54 Apr................................................ 4.37 5.08 5.42 6.46 7.16 8.71 7.52 7.43 7.47 May ............................................ 4.43 5.22 5.66 6.63 7.15 8.98 7.91 7.42 June ............................................ 4.44 5.36 5.81 6.68 7.65 9.15 7.98 7.38 July ............................................ 4.51 5.43 5.88 6.51 7.66 8.87 8.00 7.39 Aug............................................... 4.56 5.71 5.96 6.26 7.66 8.85 7.89 7.38 Sept............................................... 4.59 5.74 5.96 6.27 8.05 8.69 7.64 7.42 Oct................................................ 4.54 5.73 6.15 6.48 8.17 8.70 7.61 7.41 Nov............................................... 4.69 5.75 6.36 6.52 8.38 8.59 7.42 7.21 Dec............................................... 4.74 5.64 6.49 6.84 8.67 8.18 7.29 7.21 Q i ............................................ 4.42 4.96 5.25 6.32 7.04 8.59 7.55 7.28 7.44 Q2 ............................................ 4.41 5.22 5.63 6.59 7.32 8.95 7.80 7.41 Q3 ............................................ 4.55 5.63 5.93 6.35 7.79 8.80 7.84 7.40 Q4 ............................................ 4.66 5.71 6.33 6.61 8.41 8.49 7.44 7.28 Weekly, 1973 Jan. 5 7.28 Feb. 2 7.44 Mar. 2 7.47 Apr. 6...... 7.50 May 4............7.42 12 7.37 9 7.45 9 7.50 13 7.47 19 7.38 16 7.41 16 7.59 20 7.52 26 7.43 23 7.38 23 7.59 27 7.42 30 7.50 337 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Structure of Reserve Requirements It is a pleasure for me, both as a citizen and one of those issues—namely, the structure of as a Government official, to join in the deliber­ reserve requirements. ations of this Council. We share many common This is a subject of substantial interest to the objectives and we face common problems. Of managers of commercial banks. It is also a course, our views have not always agreed in matter of considerable importance to those of the past, and I doubt if the future can or will us concerned with the Nation’s economic and be entirely different. It is important, never­ financial policy. For reserve requirements can theless, that we make a conscientious effort to influence in fundamental ways the effectiveness understand one another’s perceptions of the of monetary policy, the cost of financial inter­ problems we face. If we do so, we will generally mediation, and the allocation of savings among find a path to fair and constructive solutions. competing financial institutions. One gratifying demonstration of that fact has Let me begin by considering the role and taken place in recent weeks. The Committee on purpose of reserve requirements in the func­ Interest and Dividends recently issued guide­ tioning of monetary and credit policies. lines on the so-called “dual prime rate.” In Before the Federal Reserve System was response to my invitation, bankers from all over founded, reserve requirements were imposed by the country met with the committee and its staff legislation at the national and State levels as to ponder the difficulties surrounding the prime a means of protecting bank liquidity. That phi­ rate in the current environment and to seek a losophy was retained in the original structure solution that could best serve the public interest. of reserve requirements established for Federal I am especially grateful to two of your leaders, Reserve member banks. Higher requirements Eugene Adams and Rex Morthland, for giving were set for reserve city banks than for country so generously of their time and wisdom to make members, and still higher requirements were the lending rate guidelines fair and workable. imposed on central reserve city banks. Vestiges And I also want to note that the banking industry of that initial structure remain even today. has acted prudently in complying with the com­ Required reserves, however, are not really an mittee’s request to move gradually and cau­ important source of bank liquidity. The reserves tiously in adjusting the prime loan rate for large required to back deposits cannot be withdrawn businesses. Such a moderate response adds to to finance a rise in loan demand, and they can national confidence in the public responsibility supply only a small portion of the funds needed of banking leaders. to accommodate deposit losses. The true and Today, however, I shall say no more of the basic function of reserve requirements is not to Committee on Interest and Dividends, but turn provide liquidity, but to permit the Federal instead to my responsibilities as Chairman of Reserve to control the supply of money and the Federal Reserve Board. You and I have a credit so that monetary policy can effectively number of pressing problems demanding our promote our national economic objectives. immediate attention. But it is also essential that To achieve good management over the supply we focus on longer-range issues from time to of money and credit, reserve requirements must time. I want to discuss with you this morning be met by holding assets whose aggregate vol­ ume is under the control of the Federal Reserve. Note.—Address by Arthur F. Burns, Chairman, Whatever their role may be in protecting bank Board of Governors of the Federal Reserve System, liquidity, the reserve requirements set by the before the Governing Council Spring Meeting, Ameri­ can Bankers Association, White Sulphur Springs, West various States do not meet this test. This is a Virginia, April 26, 1973. serious defect, since the principal reason for 339 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN □ MAY 1973 reserve requirements is their contribution to introducing a graduated reserve requirement— effective monetary policy. that is, by relating the reserve against demand Judged by this criterion, the present structure deposits of each bank to the size of the bank. of reserve requirements leaves much to be de­ Under the new system, all member banks of sired. Reforms are needed to increase the preci­ a given size, whatever their location, are subject sion and the certainty with which the supply to identical reserve requirements. of money and credit can be controlled. Reforms This reform was a major step forward in the are needed to permit more variation in reserve creation of a more rational and equitable struc­ requirements as an instrument of monetary pol­ ture of reserve requirements. Yet, much more icy. Reforms are also needed to distribute the remains to be done. burden of monetary controls more equitably One of the principal steps needed is to apply among the financial institutions that participate equivalent reserve requirements to member and in the payments mechanism. nonmember banks. At present, nonmember The Federal Reserve Board has been con­ banks are not required to hold reserves in the cerned for some time with inequities in the form of deposits at the Federal Reserve Banks, structure of reserve requirements. Last No­ as member banks do. vember, we finally used our authority under In many States, percentage reserve require­ Regulation D to carry out substantial improve­ ments for nonmember banks are comparable to ments in the structure of reserves that are re­ those for Federal Reserve members. However, quired to be held against the demand deposits the reserves required of nonmember banks of member banks. usually may be carried as correspondent bal­ As you know, the Federal Reserve Act speci­ ances, or even in the form of Government fies that the Board must distinguish between securities. When reserves are held as corre­ reserve city banks and other members in the spondent balances at a member bank, that bank establishment of reserve requirements. Until is of course required to support these balances November 1972, the principal determinant of with reserves that consist either of vault cash a bank’s reserve status was its geographic loca­ or cash at the Federal Reserve. But in such a tion. Banks in principal financial centers were case the size of the cash reserve held by the generally classified as reserve city banks; those member bank is quite small relative to the initial in other locations fell into the country member deposit at the nonmember bank. category. A bank could, however, have its The consequence of these differential reserve classification changed by appealing for special requirements is that shifts of deposits between treatment based on the nature of its banking member and nonmember banks alter the quan­ business. tity of deposits at all commercial banks that can With the passage of time, this system of be supported by a given volume of bank re­ reserve classification became increasingly out­ serves. Thus, the links between bank reserves, moded and inequitable. Some large banks in on the one hand, and bank credit and the money cities of substantial size enjoyed the lower re­ supply, on the other, are loosened, and the serve requirement on demand deposits applica­ Federal Reserve’s control over the monetary ble to country members. At the same time, there aggregates becomes less precise than it can or were some small banks in major financial should be. centers that had to carry the higher reserve The magnitude of this problem is difficult to requirement imposed on reserve city members. assess, since nonmember banks submit statisti­ Over the years, exceptions had been granted in cal reports to supervisory authorities infre­ so many cases—each of them probably justified quently. Annual data, however, suggest a sub­ but different from most others—that the princi­ stantial variability in the relative growth rates ples underlying the reserve classification of of member and nonmember banks. Over the past member banks could no longer be readily dis­ decade, increases in the volume of checking cerned. deposits at nonmember banks accounted for The Board moved last year to eliminate these around 40 per cent of the total rise in checking capricious elements in reserve classification by deposits. But the proportion was as low as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STRUCTURE OF RESERVE REQUIREMENTS 341 one-tenth in 1962 and as high as three-fourths against demand deposits—particularly for small in 1969. Variations of this magnitude add to member banks that compete actively with non­ uncertainty about the effects of open market members. Recently, a seasonal borrowing priv­ operations on bank credit and deposits, on the ilege at the discount window was established cost and availability of loanable funds, and for member banks that have insufficient access hence also on the level of aggregate demand to the national money markets. This, too, should for goods and services. make membership more attractive. Never­ This source of imprecision in monetary con­ theless, there are limits to measures of this kind trol has become more worrisome as the propor­ that can be taken under existing legislation. tion of bank deposits held at member banks has The erosion of membership in the Federal declined. In 1945, 86 per cent of total commer­ Reserve System is therefore a serious problem. cial bank deposits was held by member banks. It reduces the precision of monetary control, as The ratio had fallen to 80 per cent by 1970 and I have already noted. It may, in time, also to 78 per cent by the end of last year. weaken public confidence in the Nation’s central In part, this trend reflects the relatively rapid bank and in its ability to maintain a stable growth of population in areas served by non­ currency and a sound banking system. And it member banks, particularly suburban areas. The has already reduced the potential for using major causal factor, however, is the competitive changes in reserve requirements as an effective disadvantage that is imposed on member banks instrument of monetary policy. When a large by requiring them to hold reserves against de­ and increasing proportion of total bank deposits posits in the form of vault cash or as deposits is left untouched by changes in the reserve at the Federal Reserve. For nonmember banks, requirements prescribed by the Board, that alone required reserves are, in effect, earning assets is a fact of some significance. The greater loss, even when they are held as demand balances however, arises because the Board must use with other commercial banks, since these bal­ changes in reserve requirements sparingly as an ances normally also serve as a form of payment instrument of monetary policy, since an increase for services rendered by city correspondents. in required reserves would worsen the competi­ One consequence of this inequity is an incen­ tive disadvantage of member banks and thereby tive for member banks to withdraw from the threaten a further erosion of membership. Federal Reserve System, or for newly chartered This inhibition has been unfortunate, for there State banks to avoid Federal Reserve member­ have been times v, hen .the prompt and pervasive ship. Since 1960, about 700 banks have left the impact of a higher reserve requirement would System through withdrawal or mergers. Just have been the best way to signal that monetary over 100 State-chartered banks have elected to policy is moving toward added restraint on the join the System since 1960; nearly 1,500 others availability of money and credit. In view of the receiving new charters chose to remain outside divergence in reserve requirements between the System. member and nonmember banks, the Federal And the trend continues. During 1972, five Reserve has sometimes had to turn to other, banks with deposits of $100 million or more perhaps less effective, measures to achieve its withdrew from Federal Reserve membership. Of objectives. the 212 new commercial banks receiving State These considerations argue persuasively, I charters last year, only 13 elected Federal Re­ believe, that reserve requirements on demand serve membership. deposits at nonmember banks should be the Over the years, efforts have been made to same as those faced by Federal Reserve reduce the competitive disadvantage faced by members. Continuation of the present state of member banks and thereby make System mem­ affairs is inequitable, and it also weakens mon­ bership more attractive. Permission to count etary control. These difficulties will become vault cash in meeting reserve requirements more acute in the years to come if corrective clearly improved matters. The changes made in legislative action is not forthcoming. Regulation D last November were also helpful, The proposal to treat member and nonmember because they reduced reserve requirements banks alike for reserve purposes is not new. Its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN □ MAY 1973 substance was embodied in the recom­ subject to a negotiable order of withdrawal—a mendations of a congressional committee “NOW account”—that resembles closely an chaired by Senator Douglas in 1950, repeated interest-bearing checking account. In Califor­ in 1952 in the recommendations of a congres­ nia, savings and loan associations are seeking sional committee chaired by Congressman Pat- direct access to an electronic money transfer man, endorsed by the Commission on Money system operated by California banks. Access to and Credit in 1961, reaffirmed by the President’s the system would enable these associations to Committee on Financial Institutions in 1963, charge and credit the savings accounts of their and restated again in the 1971 report of the customers in much the same way that checking President’s Commission on Financial Structure deposits are handled at commercial banks. Other and Regulation. Since 1964, the Federal Re­ forms of third-party transfers are likely to spring serve has repeatedly urged the Congress to bring up here and there. all insured commercial banks under the same The Board believes, and has so indicated in reserve requirements, and to provide all these testimony to the Congress, that Federal regula­ banks with equal access to the discount window. tion should permit developments such as these I am aware that this proposal is not viewed to flourish, so that the range of services of with favor by many segments of the banking depositary institutions to American families may community, and that is the major reason why be extended. The Board believes, however, that this needed reform has been delayed. The pro­ present trends could have significant adverse posal would be more palatable to bankers if effects on monetary control unless reserve re­ some part of the Board’s reserve requirement quirements established by the Federal Reserve against demand deposits could be held in the are applied to all deposit accounts involving form of an earning asset, such as U.S. Govern­ money-transfer services. Failure to do so would ment securities. I do not want to rule out that also have damaging effects on competitive rela­ possibility categorically. Simple honesty, how­ tions between commercial banks and nonbank ever, compels me to state that, however attrac­ thrift institutions. tive reserve requirements in that form may be Universal application of reserve requirements from the standpoint of bank earnings, they can­ to all deposits providing money-transfer services not serve a useful function in monetary man­ need not mean a uniform percentage require­ agement. As I noted earlier, satisfactory control ment on all these deposits. There may be a over the supply of money and credit requires reasonable basis for lower reserve requirements that bank reserves be held in the form of assets on savings accounts with third-party transfer whose aggregate volume is directly controlled privileges than for deposits that carry fullby the Federal Reserve. checking-account powers. There may also be a The principle that underlies the Board’s rec­ reasonable basis for retaining the principle of ommendation is simple and straightforward— reserve requirements graduated by size of the namely, that equivalent reserve requirements depositary institution. Lack of uniformity of should apply to all deposits that effectively serve reserve requirements on similar deposits does, as a part of the public’s money balances. Recent however, pose potential problems for monetary efforts of nonbank depositary institutions to control. evolve new modes of money transfer make There are other aspects of present reserve adoption of this principle a matter of some requirements that also deserve careful and con­ urgency. If legislative action is delayed, we may tinuing review in the light of our evolving soon find a much larger share of money transfers financial structure. taking place at institutions outside the reach of The appropriateness of reserve requirements the Board’s reserve requirements. on commercial bank time and savings deposits As you know, participation in third-party has been a subject of debate over the years. It transfers by nonbank financial institutions has has been argued that cash reserves against time already commenced. In Massachusetts and New deposits are not essential for purposes of mone­ Hampshire, mutual savings banks have begun tary control and therefore should be abolished to offer depositors an interest-bearing account as an unnecessary impediment to interme­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STRUCTURE OF RESERVE REQUIREMENTS 343 diation. Yet, some observers take the position an advantage in bidding for time and savings that reserve requirements for commercial bank deposits—an advantage that probably still re­ time deposits should be increased to the same mains after the costs of holding cash reserves level as the requirements for demand deposits, are taken into account. so that shifts of funds between the two deposit However, if recent trends continue, the in­ classes would not alter the relationship of bank creasing provision of money-transfer services by reserves to bank credit and the money supply. nonbank thrift institutions will blur the distinc­ The merits of these conflicting arguments are tion between commercial banks and nonbank difficult to evaluate. At present, there is no intermediaries, just as it blurs the distinction convincing evidence of frequent or large-scale between checking and savings accounts. As shifts of funds between demand and time de­ nonbank depositary institutions become more posits of the sort that could be disruptive to like commercial banks, the basis for differences financial markets and to the management of in reserve requirements will be weakened and aggregate demand. Still, the potential for such so too will the justification for differences in shifts may be increasing with the proliferation tax and regulatory treatment. of new financial services that facilitate transfers Public policy must take account of the com­ from one type of deposit to another. petitive forces that are altering the structure of Removal of reserve requirements against time our Nation’s depositary institutions and the deposits would, therefore, seem unwise at this character of the services they supply. The need time. And in any event, elimination of statutory for legislation authorizing identical reserve re­ authority to impose reserve requirements against quirements on demand deposits at member and time and savings deposits would take away a nonmember banks is of long standing. The time weapon of monetary policy that is potentially for bringing NOW accounts and any other de­ useful for containing increases in bank credit posits offering money-transfer services under at a time when inflationary pressures are already the Board’s reserve requirements is clearly at strong and threaten to become still stronger. hand. And if the distinctions between commer­ As long as commercial banks are required to cial banks and nonbank financial institutions hold cash reserves against time and savings gradually fade away, regulatory authority to deposits, questions will persist about the desira­ equalize the treatment of time and savings de­ bility of similar requirements against savings posits for reserve purposes will also be needed. accounts at nonbank thrift institutions. At Enabling legislation to accomplish these ends present, extension of reserve requirements to should allow flexibility in implementation. The savings accounts at nonbank intermediaries does transition to a new and more appropriate system not appear to be needed for reasons of monetary of reserve requirements should be designed so control. There have been times when shifts of as to minimize the adjustment problems of indi­ funds between banks and nonbank interme­ vidual institutions, and also to permit the regu­ diaries have had a disturbing influence on the latory authorities to monitor the effects of mortgage market. But those shifts have not changing reserve requirements on financial produced serious problems for monetary con­ markets and on economic activity. Abrupt trol, and they would not have been prevented changes in the structure of reserve requirements by comparable reserve requirements at the two are unnecessary and would probably be unwise. classes of institutions. The need, as I see it, is for a gradual transition From the viewpoint of equity, the case for to a reserve structure that will accomplish two equal reserve requirements on time and savings objectives: first, ensure adequate control over deposits at all financial institutions is stronger. the supply of money and credit in the years to Even on this ground, however, it should be kept come; and second, establish an equitable shar­ in mind that the diversified services that com­ ing among financial institutions of the costs of mercial banks offer their customers give them monetary control. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve Bulletin. The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the Bulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The record for the first meeting held in 1973 was published in the Bulletin for April, pages 286-92. The record for the meeting held on February 13, 1973, follows: 345 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN □ MAY 1973 MEETING HELD ON FEBRUARY 13, 1973 Current econom ic policy directive Estimates of the Commerce Department indicated that real output of goods and services had grown at an annual rate of 8.5 per cent in the fourth quarter of 1972, and growth appeared to be continuing at a substantial, although less rapid, rate in the first quarter of 1973. Staff projections suggested that real growth in the second quarter would remain close to the first-quarter rate. In January retail sales rose sharply, according to the advance report, after having increased considerably more in December than had been indicated by earlier data. Industrial production continued to expand—reflecting gains in consumer goods and business equip­ ment—and nonfarm payroll employment rose further; however, the pace of expansion in output and employment in both December and January was less rapid than over the four preceding months. The unemployment rate declined slightly further to 5.0 per cent. Labor costs per unit of output in the private nonfarm economy— which had changed little in the second and third quarters of 1972—turned up in the fourth quarter as the advance in output per manhour slowed and the rise in wage rates accelerated. Average hourly earnings of production workers continued to rise at a relatively rapid rate in January. In December the rise in over-all consumer prices slowed; while retail prices of nonfood commodities and of services advanced at a faster pace than earlier in the year, average retail prices of foods were about stable. In wholesale markets, however, prices of meats, eggs, and some other foods and foodstuffs rose sharply in December, and the rise continued in January. The latest staff projection of real growth in the first half of 1973 was about unchanged from that of 4 weeks earlier, but now the expected rise in average prices was somewhat larger, in part because of the substantial increases that had already occurred in prices of foods and foodstuffs. It was still expected that expansion in consumption expenditures, business fixed investment, and State and local government purchases of goods and services would remain strong and that business inventory investment would in­ crease further. It was also anticipated that outlays for residential construction would level off and then turn down. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 347 In foreign exchange markets the relative calm that had prevailed for a number of months was shattered in late January by a series of developments, including a decision by the Italian Government to create a dual market for the lira in response to capital outflows, a decision by the Swiss Government to float the franc in response to large capital inflows, and release of U.S. foreign trade statistics revealing that the deficit—which had worsened in November after having improved gradually from June through October—had re­ mained large in December. Heavy speculative flows out of dollars into the German mark and some other currencies developed, cul­ minating in very large purchases of dollars by many central banks in the process of maintaining their exchange rates within the internationally agreed limits. On February 12, after consultations with other major countries, the Secretary of the Treasury announced that the United States would devalue the dollar by 10 per cent. At U.S. commercial banks, credit demands—which had eased in December—expanded substantially in January in all major in­ dustrial categories and in all regions of the country, and outstanding business loans rose at a record pace. Real estate and consumer loans continued to grow at rapid rates, while bank holdings of securities increased little. In association with the strong demand for loans and further advances in market interest rates, some banks announced increases in their prime rates from 6 to 6lA per cent at the beginning of February, but in cooperation with the Govern­ ment’s stabilization program, the banks rescinded the increases pending evaluation of data on costs and earnings. The narrowly defined money stock (Mx)x changed little in January after having increased sharply in December, and growth over the 2 months combined was at an annual rate of about 6.5 per cent—about the same as the rate over the whole 6-month period from July 1972 to January 1973.2 Part of the recent fluctuation in the growth rate was attributable to a temporary increase in demand deposits of State and local governments in association with initial distributions of funds under the Federal revenue-sharing 1 Private demand deposits plus currency in circulation. 2 Growth rates are calculated on the basis of the daily-average level in the last month of the period relative to that in the last month preceding the period. Moreover, they are based on revised series for the monetary aggregates, which were released to the public in early February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN □ MAY 1973 program and subsequent shifts of some of these funds into earning assets, including time deposits. Inflows of time and savings deposits other than large-denomination CD’s increased from December to January, moderating the deceleration in growth in the more broadly defined money stock (M2).3 Growth in M2 over both the Decem­ ber-January and the July-January periods was at an annual rate of about 9.5 per cent. Inflows of savings funds to nonbank thrift institutions also rose substantially from December to January. Contract interest rates on conventional mortgages apparently changed little in January and yields in the secondary market for Federally insured mortgages also remained stable. On January 31 the Treasury announced that in its mid-February financing it would offer holders of maturing notes an opportunity to exchange their holdings for a 3y2-year, 6V2 per cent note priced to yield about 6.60 per cent and that it would auction about $1 billion of 63/4-year, 6% per cent notes. As had been expected in the market, a relatively large part—$2.2 billion, or 47 per cent—of the $4.8 billion of maturing notes held by the public was redeemed for cash. System open market operations since the January 16 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions that would support slower growth in monetary aggregates over the months ahead than the rates recorded over the second half of 1972. Operations had been directed toward fostering growth in reserves available to support private nonbank deposits (RPD’s) at an annual rate in a range of 4.5 to 10.5 per cent in the January-February period, while avoiding marked changes in money market conditions and taking account of Treasury financing operations. The System had acted early in the inter-meeting period—prior to announcement of the terms of the Treasury financing—to restrain expansion in reserves provided through open market operations, and money market conditions had firmed. The Federal funds rate, which had been about 5% per cent in the days before the January meeting, rose to about 6% per cent in the latter part of the month and then fluctuated around that level. Member bank borrowings 3 Mt plus commercial bank time and savings deposits other than large-denomination CD’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 349 averaged about $1,235 million in the 4 weeks ending February 7, compared with about $1,200 million in the preceding 4 weeks. At the time of this meeting it appeared that in the January-February period RPD’s would grow at a rate near the middle of the specified range. Market interest rates had continued to rise since the Committee’s January meeting, reflecting the further tightening in money market conditions, widespread expectations of vigorous economic expan­ sion, and uncertainty about the effectiveness of Phase III of the economic stabilization program. Short-term rates had risen consid­ erably. In early February, however, the market for Treasury bills was strengthened by actual and expected purchases of bills by foreign central banks in association with the speculative outflows from dollars into other currencies. On February 9, the last market day before this meeting, the rate on 3-month bills was 5.44 per cent, down from 5.76 per cent on February 1 but up from 5.27 per cent on the day before the January meeting. The rise in interest rates was more moderate for long-term than for most short-term securities. The volume of new public offerings of corporate bonds, which had been reduced in December by the holidays, failed to rebound in January and appeared likely to remain at a reduced level in February. The volume of new State and local government bonds also changed little in January, and it appeared likely to decline in February. The Committee agreed that the economic situation called for growth in the monetary aggregates over the months ahead at somewhat slower rates than had occurred on average in the past 6 months. The members took note of a staff analysis suggesting that the sharp further advance in short-term interest rates that had occurred in recent months would probably retard growth in the demand for money over the months ahead. The analysis also suggested that in the February-March period the Committee’s objectives for monetary growth might be fostered by pursuing growth in RPD’s at an annual rate within a range of 0.5 to 2.5 per cent and that attainment of RPD growth in that range probably would be associated with some additional firming of money market conditions and some upward pressure on long-term interest rates. The Committee concluded that active reserve-supplying opera­ tions should be avoided unless RPD’s in the February-March period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN □ MAY 1973 appeared to be declining at an annual rate of more than 2.5 per cent. Specifically, the members decided that operations should be directed at fostering RPD growth during that period within a range of —2.5 to +2.5 per cent, while continuing to avoid marked changes in money market conditions. They also agreed that in the conduct of operations account should be taken of possible credit market developments and international developments, and that allowance should be made in operations if growth in the monetary aggregates appeared to be deviating from an acceptable range. It was understood that the Chairman might consider calling upon the Committee to appraise the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objec­ tives and constraints. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests continued substantial growth in real output of goods and services in the current quarter, although at a rate less rapid than in the fourth quarter of 1972. The unemployment rate has declined slightly further. In recent months wage rates have increased at a relatively rapid pace, and unit labor costs turned up in the fourth quarter of 1972. The rise in consumer prices slowed in December when retail prices of foods changed little, but prices of foods and foodstuffs at earlier stages of distribution rose sharply in both December and January. The excess of U.S. merchandise imports over exports remained large in December. Heavy speculative movements out of dollars into German marks and some other currencies developed in late January and early February. On February 12 the Government announced that the United States would devalue the dollar by 10 per cent. The narrowly defined money stock changed little in January after having increased sharply in December, and growth over the 2 months combined was at an average annual rate of about 6V2 per cent. Growth in the more broadly defined money stock slowed less abruptly from December to January as inflows of consumer-type time and savings deposits to banks accelerated. A sharp and perva­ sive increase has taken place in bank loans to businesses. In recent weeks market interest rates generally have risen further, with in­ creases substantial for short-term rates and relatively moderate for long-term rates. Most recently, however, Treasury bill rates have moved back down under the influence of foreign official buying. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 351 In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ sonant with the aims of the economic stabilization program, includ­ ing further abatement of inflationary pressures, sustainable growth in real output and employment, and progress toward equilibrium in the country’s balance of payments. To implement this policy, while taking account of possible domestic credit market and international developments, the Com­ mittee seeks to achieve bank reserve and money market conditions that will support somewhat slower growth in monetary aggregates over the months ahead than occurred on average in the past 6 months. Votes for this action: Messrs. Burns, Hayes, Brimmer, Bucher, Coldwell, Eastburn, MacLaury, Mitchell, Robertson, Sheehan, and Winn. Votes against this action: None. Absent and not voting: Mr. Daane. Developments subsequent to the meeting made it appear that RPD’s would grow in the February-March period at an annual rate in excess of 2.5 per cent, even though money market conditions had firmed and the Federal funds rate had averaged close to 6% per cent for two successive weeks. On March 1, 1973, the members agreed that the weekly average Federal funds rate should be permitted to rise somewhat further if necessary to limit growth in RPD’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions have an important bearing on overall monetary and EXTENSIONS OF CREDIT BY FEDERAL RESERVE BANKS credit conditions. (c) Short-term adjustment credit. Federal The Board has revised Regulation A, “Ad­ Reserve credit is available on a short-term basis vances and Discounts by Federal Reserve Banks” , to a member bank, under such rules as may be effective April 19, 1973. prescribed, to such extent as may be appropriate The heading of Part 201 is changed to read “Ex­ to assist such bank in meeting temporary require­ tensions of Credit by Federal Reserve Banks” , and ments for funds or to cushion more persistent §§ 201.0 through 201.6 are revised to read as set outflows of funds pending an orderly adjustment forth below. of the bank’s assets and liabilities. (d) Seasonal credit. Federal Reserve credit is SECTION 201.1—AUTHORITY AND SCOPE available for longer periods to assist a member bank that lacks reasonably reliable access to na­ This Part is issued under section 13 and other tional money markets in meeting seasonal needs provisions of the Federal Reserve Act and relates for funds arising from a combination of expected to extensions of credit by Federal Reserve Banks. patterns of movement in its deposits and loans. Such credit will ordinarily be limited to the amount SECTION 201.2—GENERAL PRINCIPLES by which the member bank’s seasonal needs ex­ ceed 5 per cent of its average total deposits in (a) Accommodation of credit needs of indi­ the preceding calendar year and will be available vidual banks. Extending credit to member banks if (1) the member bank has arranged in advance to accommodate commerce, industry, and agricul­ for such credit for the full period, as far as possi­ ture is a principal function of Reserve Banks. ble, for which the credit is expected to be required, While open market operations and changes in and (2) the Reserve Bank is satisfied that the member bank reserve requirements are important member bank’s qualifying need for funds is sea­ means of affecting the overall supply of bank sonal and will persist for at least eight consecutive reserves, the lending function of the Reserve weeks. In making such arrangements for seasonal Banks is an effective method of supplying reserves credit, a Reserve Bank may agree to extend such to meet the particular needs of individual member credit for a period of up to 90 days,1 subject to banks. compliance with applicable requirements of law (b) Effect on overall monetary and credit at the time such credit is extended. However, in conditions. The lending functions of the Federal the event that a member bank’s seasonal needs Reserve System are conducted with due regard to should persist beyond such period, the Reserve the basic objectives of the Employment Act of Bank will normally be prepared to entertain a 1946 and the maintenance of a sound and orderly request by the member bank for further credit financial system. These basic objectives are pro­ extensions under the seasonal credit arrangement. moted by influencing the overall volume and cost (e) Emergency credit for member banks. of credit through actions affecting the volume and Federal Reserve credit is available to assist cost of reserves to member banks. Borrowing by member banks in unusual or emergency circum­ individual member banks, at a rate of interest stances such as may result from national, regional, adjusted from time to time in accordance with or local difficulties or from exceptional circum­ general economic and money market conditions, stances involving only a particular member bank. has a direct impact on the reserve positions of the borrowing banks and thus on their ability to meet 1 As provided in the law and in this Part, the maturity of the needs of their customers. However, the effects advances to member banks is limited to 90 days, except as of such borrowing do not remain localized but provided in § 201.3(b) of this Part. 353 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN □ MAY 1973 (f) Emergency credit for others. Federal Re­ proceeds of which have been or are to be used serve credit is available to individuals, partner­ (1) in producing, purchasing, carrying, or market­ ships, and corporations that are not member banks ing goods in the process of production, manufac­ in emergency circumstances in accordance with § ture, or distribution, (2) for the purchase of serv­ 201.7 of this Part if, in the judgment of the ices, (3) in meeting current operating expenses of Reserve Bank involved, credit is not practicably a commercial, agricultural, or industrial business, available from other sources and failure to obtain or (4) for the purpose of carrying or trading in such credit would adversely affect the economy. direct obligations of the United States; provided (g) Credit for capital purposes. Federal Re­ that (i) such paper has a period remaining to serve credit is not a substitute for capital and maturity of not more than 90 days, except that ordinarily is not available for extended periods. agricultural paper (including paper of cooperative (h) Compliance with law and regulation. All marketing associations) may have a period re­ credit extended pursuant to this Part must comply maining to maturity of not more than nine months with applicable requirements of law and of this and (ii) the proceeds of such paper have not been Part. Among other things, the law requires each and are not to be used merely for the purpose of Reserve Bank (1) to keep itself informed of the investment, speculation, or dealing in stocks, general character and amount of the loans and bonds, or other such securities, except direct obli­ investments of its member banks with a view to gations of the United States. ascertaining whether undue use is being made of (b) Bankers’ acceptances. A banker’s accept­ bank credit for the speculative carrying of or ance (1) arising out of an importation or exporta­ trading in securities, real estate, or commodities tion or domestic shipment of goods or the storage or for any other purpose inconsistent with the of readily marketable staples or (2) drawn by a maintenance of sound credit conditions and (2) to bank in a foreign country or dependency or insular give consideration to such information in deter­ possession of the United States for the purpose mining whether to extend credit. of furnishing dollar exchange; provided that such acceptance complies with applicable requirements SECTION 201.3—ADVANCES TO MEMBER of section 13 of the Federal Reserve Act. BANKS (c) Construction paper. A note representing a loan made to finance construction of a residential (a) Advances on obligations or eligible paper. or farm building, whether or not secured by a lien Reserve Banks may make advances to member upon real estate, which matures not more than nine banks for not more than 90 days if secured by months from the date the loan was made and has obligations or other paper eligible under the Fed­ a period remaining to maturity of not more than eral Reserve Act for discount or purchase by 90 days, if accompanied by an agreement requiring Reserve Banks. some person acceptable to the Reserve Bank to (b) Advances on other security. A Reserve advance the full amount of the loan upon comple­ Bank may make advances to a member bank for tion of such construction. not more than four months if secured to the satis­ faction of the Reserve Bank, whether or not se­ SECTION 201.5—GENERAL REQUIREMENTS cured in conformity with § 201.3(a), but the rate on such advances shall be at least one-half of one (a) Information. A Reserve Bank shall require per cent per annum higher than the rate applicable such information as it deems necessary to insure to advances made under § 201.3(a). that paper tendered as collateral or for discount is acceptable and meets any pertinent eligibility SECTION 201.4—DISCOUNTS FOR MEMBER requirements and that the credit granted is used BANKS consistently with this Part. (b) Amount of collateral. A Reserve Bank shall If a Reserve Bank should conclude that a require only such amount of collateral as it deems member bank would be better accommodated by necessary or advisable. the discount of paper than by an advance on the (c) Indirect credit for nonmember banks. security thereof, it may discount for such member Except with the permission of the Board of Gov­ bank any paper endorsed by the member bank and ernors, no member bank shall act as the medium meeting the following requirements: or agent of a nonmember bank (other than a (a) Commercial or agricultural paper. A note, Federal Intermediate Credit bank) in receiving draft, or bill of exchange issued or drawn or the credit from a Reserve Bank and, in the absence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 355 of such permission, a member bank applying for In order to accomplish this delegation § 265.2(f) credit shall be deemed to represent and guarantee (28) is added and § 265.2(f) (22) and (24) are that it is not so acting. amended to read as follows, effective with respect (d) Limitation as to one obligor. Except as to applications accepted by the Reserve Banks to credit granted under § 201.3(b), a member bank after April 23, 1973: applying for credit shall be deemed to certify or guarantee that as long as the credit is outstanding SECTION 265.2— SPECIFIC FUNCTIONS no obligor on paper tendered as collateral or for DELEGATED TO BOARD EMPLOYEES AND discount will be indebted to it in an amount ex­ FEDERAL RESERVE BANKS ceeding the limitations in section 5200 of the Revised Statutes (12 U.S.C. § 84), which for this (f) Each Federal Reserve Bank is authorized, purpose shall be deemed to apply to State member as to member banks or other indicated organizations as well as national banks. headquartered in its district, or under subparagraph (25) of this paragraph, as to its officers: SECTION 201.6—FEDERAL INTERMEDIATE CREDIT BANKS (22) Under the provisions of section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. A Reserve Bank may discount for any Federal 1842), to approve the formation of a bank holding Intermediate Credit bank (1) agricultural paper, or company through the acquisition by a company (2) notes payable to and bearing the endorsement of a controlling interest in the voting shares of of such Federal Intermediate Credit bank covering one or more banks, if all of the following condi­ loans or advances made under subsections (a) and tions are met: (b) of § 2.3 of the Farm Credit Act of 1971 (12 (i) no member of the Board has indicated an U.S.C. § 2074) which are secured by paper eligi­ objection prior to the Reserve Bank’s action. ble for discount by Reserve Banks. Any paper so (ii) all relevant departments of the Reserve Bank discounted shall not have a period remaining to recommend approval. maturity of more than nine months or bear the (iii) no substantive objection to the proposal has endorsement of a nonmember State bank. been made by a bank supervisory authority, the United States Department of Justice, or a member SECTION 201.7—EMERGENCY CREDIT FOR of the public. OTHERS (iv) no significant policy issue is raised by the proposal as to which the Board has not expressed In emergency circumstances a Reserve Bank its view. may extend credit for periods of not more than (v) any offer to acquire shares of the bank or 90 days to individuals, partnerships, and corpora­ banks involved will be extended to all shareholders tions (other than member banks) on the security of the same class on a substantially equal basis.2 of direct obligations of the United States or any (vi) considerations relating to the convenience obligations which are direct obligations of, or fully and needs of the communities to be served are guaranteed as to principal and interest by, any consistent with or lend weight toward approval of agency of the United States, at such rate in excess the application. of the rate in effect at the Reserve Bank for (vii) in the event any debt is incurred by the advances under § 201.3(a) as its board of directors holding company to purchase shares of any bank may establish subject to review and determination involved in the proposal: of the Board of Governors. (a) an agreed plan for amortization of the debt within a reasonable time exists, such period nor­ RULES REGARDING DELEGATION OF mally not exceeding 12 years. AUTHORITY The Board has delegated to the Reserve Banks 2Less than all of the outstanding shares of the bank may be acquired provided that where a greater number of shares the authority to approve bank holding company are tendered than are proposed to be purchased, the offeror formations involving more than one bank and will purchase the shares* tendered on a pro rata basis (except acquisitions by bank holding companies of existing for fractional interests) according to the number of shares tendered by each shareholder. Where an offer is not identical banks and bank mergers, and has set forth stand­ to all shareholders, the burden is on the applicant to demon­ ards within which this authority may be exercised. strate the substantial equivalence of the offers extended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN □ MAY 1973 (b) the interest rate on any loan to purchase the (b) the Applicant will control no more than 15 bank shares will be comparable with other stock per cent of total deposits in commercial banks in collateral loans by the lender to persons of com­ the State. parable credit standing. (c) no compensating balances, specifically at­ (24) Under the provisions of section 3(a)(3) of tributable to the loan, will be deposited in the the Bank Holding Company Act (12 U.S.C. lending institution and the amount of any corre­ 1842), to approve the acquisition by a bank hold­ spondent account which the proposed subsidiary ing company of a controlling interest in the voting bank will maintain with the lending institution shares of an additional bank, if all of the following should not exceed the amount necessary to com­ conditions are met: pensate the lending bank for correspondent serv­ (i) no member of the Board has indicated an ices rendered by it to the proposed subsidiary objection prior to the Reserve Bank’s action. bank. (ii) all relevant departments of the Reserve Bank (viii) the Reserve Bank determines that the recommend approval. managerial and financial resources, including the (iii) no substantive objection to the proposal has equity to debt relationships, of Applicant, its ex­ been made by a bank supervisory authority, the isting subsidiaries, and any proposed subsidiary United States Department of Justice, or a member bank, are adequate, or will be adequate within a of the public. reasonable period of time after consummation of (iv) no significant policy issue is raised by the the proposal, and any debt service requirements proposal as to which the Board has not expressed to which the holding company may be subject are its view. such as to enable it to maintain the capital ade­ (v) any offer to acquire shares of the bank or quacy of any existing or proposed subsidiary bank banks involved will be extended to all shareholders in the foreseeable future. of the same class on a substantially equal basis.3 (ix) if Applicant or any of Applicant’s existing (vi) considerations relating to the convenience or proposed nonbanking subsidiaries compete in and needs of the communities to be served are the same geographic and product market as any consistent with or lend weight toward approval of proposed subsidiary bank, the resulting organi­ the application. zation will control no more than 10 per cent of (vii) in the event any debt is incurred by the that product or service line after consummation holding company to purchase shares of any bank of the proposal. involved in the proposal: (x) total nonbank gross revenues of Applicant (a) an agreed plan for amortization of the debt and its subsidiaries do not exceed 10 per cent of within a reasonable time exists, such period nor­ total operating income of the proposed banking mally not exceeding 12 years. subsidiaries. (b) the interest rate on any loan to purchase the (xi) if Applicant engages, or is to engage, in bank shares will be comparable with other stock nonbanking activities requiring the Board’s ap­ collateral loans by the lender to persons of com­ proval under section 4(c)(8) of the Act, the Re­ parable credit standing. serve Bank must also have delegated authority to (c) no compensating balances, specifically at­ approve the section 4(c)(8) activities. tributable to the loan, will be deposited in the (xii) if the proposal involves the acquisition of lending institution and the amount of any corre­ the controlling stock of only one bank, and any spondent account which the proposed subsidiary debt is incurred by the holding company to pur­ bank will maintain with the lending institution chase shares of the bank, the amount of the loan should not exceed the amount necessary to com­ does not exceed 75 per cent of the purchase price pensate the lending bank for correspondent serv­ of the shares of the proposed subsidiary bank. ices rendered by it to the proposed subsidiary (xiii) if the proposal involves the acquisition of bank. the controlling stock of more than one bank, the following additional conditions must be met: 3 Less than all of the outstanding shares of the bank may be acquired provided that where a greater number of shares (a) in the event any debt is incurred by the are tendered than are proposed to be purchased, the offeror holding company to purchase shares of any will purchase the shares tendered on a pro rata basis (except proposed subsidiary banks, the total amount of the for fractional interests) according to the number of shares tendered by each shareholder. Where an offer is not identical debt does not exceed 10 per cent of the equity to all shareholders, the burden is on the applicant to demon­ capital accounts of the holding company. strate the substantial equivalence of the offers extended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 357 (viii) the Reserve Bank determines that the ket area and Applicant will not be one of the managerial and financial resources, including the dominant banking organizations in the State. equity to debt relationships, of Applicant, its ex­ (xvii) Applicant has a proven record of furnish­ isting subsidiaries, and any proposed subsidiary ing to its subsidiaries, when needed, special serv­ bank, are adequate, or will be adequate within a ices, management, capital funds and general guid­ reasonable period of time after consummation of ance. the proposal, and any debt service requirements to which the holding company may be subject are (28) Under the provisions of section 18(c) of such as to enable it to maintain the capital ade­ the Federal Deposit Insurance Act (12 U.S.C. quacy of any existing or proposed subsidiary bank 1828(c)), to approve a merger, consolidation, ac­ in the foreseeable future. quisition of assets or assumption of liabilities, (ix) if Applicant or any of Applicant’s existing where the resulting bank is a State member bank, or proposed nonbanking subsidiaries compete in if all of the following conditions are met: the same geographic and product market as any (i) no member of the Board has indicated an proposed subsidiary, the resulting organization objection prior to the Reserve Bank’s action. will not control more than 10 per cent of that (ii) all relevant departments of the Reserve Bank product or service line after consummation of the recommend approval. proposal. (iii) no substantive objection to the proposal has (x) total nonbank gross revenues of the Appli­ been made by a bank supervisory authority, the cant and its subsidiaries do not exceed 10 per cent United States Department of Justice, or a member of total operating income of the company’s exist­ of the public. ing or proposed bank subsidiaries. (iv) no significant policy issue is raised by the (xi) if Applicant engages, or is to engage, in proposal as to which the Board has not expressed nonbanking activities requiring the Board’s ap­ its view. proval under section 4(c)(8) of the Act, the Re­ (v) if the banks do not have offices in the same serve Bank must also have delegated authority to market, the bank to be acquired has no more than approve the section 4(c)(8) activities. $25 million in deposits or controls no more than (xii) in the event any debt is incurred by Appli­ 15 per cent of market deposits.4 cant to purchase shares of the bank, the resulting (vi) if the banks compete in the same banking total acquisition debt of the holding company will market, the resulting bank will control no more not exceed 10 per cent of the company’s equity than 10 per cent of market deposits.5 capital accounts after consummation of the pro­ (vii) if a parent holding company or any of its posal. subsidiaries competes in the same geographic and (xiii) unless the proposed subsidiary is a product market as the bank to be acquired, or any proposed new bank, Applicant will control no of its subsidiaries, the holding company will con­ more than 15 per cent of deposits in the State after trol no more than 10 per cent of that product or consummation of the proposal. service line after consummation of the proposal. (xiv) if the bank to be acquired is an existing (viii) the Reserve Bank determines that the bank and if no banking offices of Applicant’s managerial and financial resources, including the existing subsidiary banks are located in the same equity capital accounts of the resulting bank, are market as the proposed subsidiary, the proposed adequate, or will be adequate within a reasonable subsidiary has no more than $25 million in depos­ period of time after the proposal is consummated. its or controls no more than 15 per cent of market (ix) considerations relating to the convenience deposits. and needs of the communities to be served are (xv) if the bank to be acquired is an existing consistent with, or lend weight toward, approval bank and if any of Applicant’s existing subsidiary of the application. banks compete in the same market as the proposed subsidiary, Applicant will control no more than 10 per cent of market deposits after consumma­ 4 If either of the proponent banks is a subsidiary of a holding tion. company, and the parent company has another bank subsidiary (xvi) if the bank to be acquired is a proposed operating in the market of the bank to be acquired, deposits of such offices should be included in the computation of market new bank, bank subsidiaries of Applicant will not shares. hold in the aggregate more than 20 per cent of the commercial bank deposits in the relevant mar­ 5See footnote 4, above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDERAL RESERVE BULLETIN □ MAY 1973 INTERPRETATIONS OF REGULATION T “funds on hand” basis and in the case of payment by check, would have to include the collection of such check. It is understood from industry INDEPENDENT BROKER/DEALERS AR­ sources, however, that few if any independent RANGING CREDIT IN CONNECTION WITH broker/dealers engage solely in a “funds on hand” THE SALE OF INSURANCE PREMIUM type of operation. FUNDING PROGRAMS The Board’s September 5, 1972 clarifying TREATMENT OF SIMULTANEOUS LONG amendment to section 220.4(k) set forth that cred­ AND SHORT POSITIONS IN A MARGIN AC­ itors who arrange credit for the acquisition of COUNT WITH RESPECT TO OPTIONS mutual fund shares and insurance are also permit­ ted to sell mutual fund shares without insurance The Board was recently asked whether under under the provisions of the special cash account. Regulation T, “Credit by Brokers and Dealers” It should be understood, of course, that such (12 C.F.R. 220), if there are simultaneous long account provides a relatively short credit period and short positions in the same security in the same of up to seven business days even with so-called margin account (often referred to as a short sale cash transactions. This amendment was in accor­ “against the box” ), such positions may be used dance with the Board’s understanding in 1969, to supply the place of the deposit of margin ordi­ when the insurance premium funding provisions narily required in connection with the guarantee were adopted in section 220.4(k), that firms en­ by a creditor of a put or call option or combination gaged in a general securities business would not thereof on such stock. also be engaged in the sale and arranging of credit The applicable provisions of Regulation T are in connection with such insurance premium fund­ § 220.3(d)(3) and (5) and § 220.3(g)(4) and (5) ing programs. which provide as follows: (d) . . . the adjusted debit balance of a general The 1972 amendment eliminated from section account . . . shall be calculated by taking the sum 220.4(k) the requirement that, to be eligible for of the following items: the provisions of the section, a creditor had to be the issuer, or a subsidiary or affiliate of the issuer, (3) the current market value of any securities (other of programs which combine the acquisition of both than unissued securities) sold short in the general mutual fund shares and insurance. Thus the account plus, for each security (other than an amendment permits an independent broker/dealer exempted security), such amount as the Board to sell such a program and to arrange for financing shall prescribe from time to time in § 220.8(d) in that connection. In reaching such decision, the (the Supplement to Regulation T) as the margin Board again relied upon the earlier understanding required for such short sales, except that such that independent broker/dealers who would sell amount so prescribed in such § 220.8(d) need not such programs would not be engaged in transacting be included when there are held in the general a general securities business. account . . . the same securities or securities In response to a specific view recently ex­ exchangeable or convertible within 90 calendar pressed, the Board agrees that under Regulation days, without restriction other than the payment T: of money, into such securities sold short; ... a broker/dealer dealing in special insurance premium funding products can only extend credit in connection with (5) the amount of any margin customarily required such products or in connection with the sale of shares of by the creditor in connection with his endorsement registered investment companies under the cash accounts . . . or guarantee of any put, call, or other option; [and] cannot engage in the general securities business or sell any securities other than shares . . . [in] registered investment (g) . . . (4) Any transaction which serves to meet companies through a cash account or any other manner involv­ the requirements of paragraph (e) of this section ing the extension of credit. or otherwise serves to permit any offsetting trans­ There is a way, of course, as has been indicated, action in an account shall, to that extent, be that an independent broker/dealer might be able unavailable to permit any other transaction in such to sell other than shares of registered investment account. companies without creating any conflict with the (5) For the purposes of this Part (Regulation T), regulation. Such sales could be executed on a if a security has maximum loan value under para­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 359 graph (c)(1) of this section in a general account, the margin required in connection with the credi­ or under § 220.4(j) in a special convertible debt tor’s endorsement of a call option on such security. security account, a sale of the same security (even A situation was also described in which a cus­ though not the same certificate) in such account tomer has purported to establish simultaneous off­ shall be deemed to be a long sale and shall not setting long and short positions by executing a be deemed to be or treated as a short sale.” “cross” or wash sale of the security on the same Rule 431 of the New York Stock Exchange day. In this situation, no change in the beneficial requires that a creditor obtain a minimum deposit ownership of stock has taken place. Since there of 25 per cent of the current market value of the is no actual “contra” party to either transaction, optioned stock in connection with his issuance or and no stock has been borrowed or delivered to guarantee of a put, and at least 30 per cent in accomplish the short sale, such fictitious positions the case of a call (and that such position be would have no value for purposes of the Board’s “marked to the market”), but permits a short margin regulations. Indeed, the adoption of such position in the stock to serve in lieu of the required a scheme in connection with an overall strategy deposit in the case of a put and a long position involving the issuance, endorsement or guarantee to serve in the case of a call. Thus, where the of put or call options or combinations thereof appropriate position is held in an account, that appears to be manipulative and may have been position may serve as the margin required by § employed for the purpose of circumventing the 220.3(d)(5). requirements of the regulations. In a short sale “against the box,” however, the customer is both long and short the same security. He may have established either position, properly INTERPRETATION OF REGULATION Z margined, prior to taking the other, or he may have deposited fully paid securities in his margin REFUND OF UNEARNED FINANCE account on the same day he makes a short sale CHARGE; PREPAYMENT PENALTY of such securities. In either case, he will have directed his broker to borrow securities elsewhere Under § 226.8(b)(7) a creditor must provide an in order to make delivery on the short sale rather identification of the method of computing any than using his long position for this purpose (see unearned portion of the finance charge in the event also 17 C.F.R. 240.3b-3). of prepayment of an obligation, as well as a Generally speaking, a customer makes a short statement of the amount or method of computation sale “against the box” for tax reasons. Regulation of any charge that may be deducted from the T, however, provides in § 220.3(g) that the two amount of any rebate. Section 226.8(b)(6) requires positions must be “netted out” for the purposes the creditor to provide “a description of any pen­ of the calculations required by the regulation. alty charge that may be imposed by the creditor Thus, the Board concludes that neither position or his assignee for prepayment of the principal of would be available to serve as the deposit of the obligation . . .” A question arises whether margin required in connection with the endorse­ the computation of certain rebates of unearned ment by the creditor of an option. finance charges on contracts with precomputed A similar conclusion obtains under § finance charges involves a “prepayment penalty.” 220.3(d)(3). That section provides, in essence, A second question concerns the disclosures re­ that the margin otherwise required in connection quired to identify the method of computing any with a short sale need not be included in the finance charge rebate. account if the customer has in the account a long Section 226.8(b)(6) relates only to charges as­ position in the same security. In § 220.3(g)(4), sessed in connection with obligations which do not however, it is provided that “ [A]ny transaction involve precomputed finance charges included in which . . . serves to permit any offsetting transac­ the obligation. It applies to transactions in which tion in an account shall, to that extent, be unavail­ the finance charge is computed from time to time able to permit any other transaction in such ac­ by application of a rate to the unpaid principal count.” Thus, if a customer has, for example, a balance. Prepayment penalties which require dis­ long position in a security and that long position closure under this section (which principally arise has been used to supply the margin required in in connection with prepayment of real estate connection with a short sale of the same security, mortgages) occur when the obligor in such a then the long position is unavailable to serve as transaction is required to pay separately an addi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN □ MAY 1973 tional amount for paying all or part of the obliga­ Section 226.8(b)(7) requires “ identification” of tion before maturity. On the other hand, § the rebate method used on precomputed contracts. 226.8(b)(7) is designed to encompass the disclo­ Many State statutes provide for rebates of un­ sures necessary with regard to the prepayment of earned finance charges under methods known as an obligation involving precomputed finance the “Rule of 78’s” or “ sum of the digits” or charges which are included in the face amount of other methods. In view of the fact that such the obligation. Therefore, although in a precom­ statutory provisions involve complex mathematical puted obligation the finance charge rebate to a descriptions which generally cannot be condensed customer may be less when calculated according into simple accurate statements, and which if to the “Rule of 78’s,” “sum of the digits,” or repeated at length on disclosure forms could de­ other method than if calculated by the actuarial tract from other important disclosures, the re­ method, such difference does not constitute a pen­ quirement of rebate “ identification” is satisfied alty charge for prepayment that must be described simply by reference by name to the “ Rule of 78’s” pursuant to § 226.8(b)(6). or other method, as applicable. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3(a) OF BANK HOLDING mation of the proposed acquisition of Bank ($20 COMPANY ACT million of deposits) would increase Applicant’s share of deposits of commercial banks in Colorado THE FIRST NATIONAL BANCORPORATION, by less than .5 percentage points and would not INC., result in a significant increase in concentration of DENVER, COLORADO bank resources in Colorado. Order Approving Acquisition of Bank Bank operates one office and is the only bank in Steamboat Springs, Routt County, Colorado, The First National Bancorporation, Inc., a sparsely populated rural community located in Denver, Colorado, a bank holding company within northwestern Colorado. Bank is located approxi­ the meaning of the Bank Holding Company Act, mately 150 road miles northwest of Applicant’s has applied for the Board’s approval under § lead bank (First National Bank, Denver, deposits 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to ac­ of $615 million) which is located in Denver, quire 80 per cent or more of the voting shares Colorado, and is the largest commercial bank in of The Routt County National Bank of Steamboat the State. Consummation of this proposed acqui­ Springs, Steamboat Springs, Colorado (“Bank” ). sition would constitute Applicant’s initial entry Notice of the application, affording opportunity into an area west of the Rocky Mountains. No for interested persons to submit comments and competition exists between Bank and any of Ap­ views, has been given in accordance with § 3(b) plicant’s subsidiaries. In view of distances of the Act. The time for filing comments and views separating Bank from Applicant’s present subsi­ has expired, and the Board has considered the diaries, geographical barriers and Colorado’s re­ application and all comments received in light of strictive branching laws, it is unlikely that any the factors set forth in § 3(c) of the Act (12 U.S.C. significant competition would develop in the future 1842(c)). between Bank and any of Applicant’s subsidiary Applicant, the largest banking organization in banks that would be eliminated by consummation Colorado, controls eight banks with deposits of of the proposed acquisition. $787.2 million, representing 14.7 per cent of total Considerations relating to the financial and deposits of commercial banks in the State. (All managerial resources and prospects of Applicant, banking data are as of June 30, 1972, and reflect its subsidiaries and Bank are regarded as satis­ holding company formations and acquisitions ap­ factory and consistent with approval of the appli­ proved through December 31, 1972.)1 Consum- cation. The United States Department of Justice in *On June 9, 1970 and November 3, 1970, respectively, the commenting on the proposal stated that if multiple Board announced the approval of Applicant’s applications to acquire The First National Bank of Greeley, Greeley, Colorado acquisitions were made in western Colorado by ($40 million of deposits) and The Security State Bank of the few leading Colorado bank holding companies, Sterling, Sterling, Colorado ($24 million of deposits). Con­ such a course might have serious competitive summation of these acquisitions has been delayed by litigation instituted by the Department of Justice. effects by deterring the formation of local alterna­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 361 tives. While stating that it was difficult to assess or by the Federal Reserve Bank of Kansas City, the weight of these anticompetitive effects in the pursuant to delegated authority. context of any single acquisition, the Department By order of the Board of Governors, effective felt that the proposal would have adverse effects. April 20, 1973. The Board agrees that developments such as Voting for this action: Governors Mitchell, Sheehan, and those cited by the Department would have serious Bucher. Voting against this action: Vice Chairman Robertson competitive effects. However, the Board evaluates and Governor Brimmer. Absent and not voting: Chairman each proposal as to the merits of that proposal. Burns and Governor Daane. As stated above, consummation of this proposal (Signed) Tynan Smith, would eliminate no existing or likely potential [seal] Secretary of the Board. competition with present subsidiaries of Applicant. A recent charter application for Steamboat Springs Dissenting Statement of was denied by the Colorado Banking Board on Governors Robertson and Brimmer the basis that the need for the new bank had not been demonstrated. This determination was re­ We dissent from the majority’s action approving versed by the Routt County District Court and is the entry of Applicant, the largest banking organi­ currently on appeal. In the interim, two other State zation in Colorado, into Steamboat Springs charter applications have been filed, including one through acquisition of the only bank in that com­ by a multibank holding company. In view of the munity. Acquisition of Bank by Applicant very above, and the low population density of Steam­ likely would have significant adverse effects on boat Springs, it appears unlikely that Applicant the development of effective competition in the would attempt to enter the market de novo. Steamboat Springs area. On the basis of the record before it, the Board On numerous occasions, we have expressed our concludes that consummation of the proposed ac­ objection to the now familiar practice of the largest quisition would not adversely affect competition bank holding companies in their respective states in any relevant area. The Board further concludes expanding statewide into new markets through the that consummation of the proposal would not have acquisition of the largest—or most viable—inde­ a significantly adverse effect on the development pendent banks in smaller communities. The ma­ of a new bank in Steamboat Springs were a charter jority’s action, authorizing Applicant’s acquisition to be granted. of Bank, will result in Applicant acquiring a virtual Development of the Steamboat Springs area into monopoly position in Steamboat Springs. Such a year-round vacation area has increased the de­ action will transfer control over the banking re­ mand for banking services beyond local capabil­ sources of Steamboat Springs to a single large ities, particularly for business enterprise and com­ banking organization so that prospects for the mercial real estate lending. Affiliation with Appli­ development of effective competition in the area cant would facilitate loan participations with re­ will be materially reduced. spect to larger real estate loans and other business Although situated in the remote northwestern loans as well as giving bank access to real estate portion of the State, Steamboat Springs is not a lending expertise. It would also allow Bank to dormant little mountain town. While its population aggressively encourage the development of recre­ is small, its rate of growth has kept pace with ational enterprises and to service the growing trust the rest of the State, and it is an area of increasing needs of the area which are presently going un­ development and growth. Within the last few served locally. Considerations relating to the con­ years, through the efforts of developers and inves­ venience and needs of the communities to be tors, the area has become a major winter and served, therefore, lend considerable weight toward year-round recreation center. Bank ($20 million approval of the application. It is the Board’s judg­ of deposits) has benefited significantly from the ment that the transaction would be in the public area’s growth and it is now the largest bank in interest and should be approved. the northwestern sector of Colorado—having dou­ On the basis of the record, the application is bled its deposits since 1968. Bank has played an approved for the reasons summarized above. The active role in encouraging local economic devel­ transaction shall not be consummated (a) before opment. It has been serving well other banking the thirtieth calendar day following the effective needs of the residents of Steamboat Springs, and date of this Order, or (b) later than three months it appears capable of continued beneficial service after the effective date of this Order, unless such to the community without affiliation with Appli­ period is extended for good cause by the Board, cant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 FEDERAL RESERVE BULLETIN □ MAY 1973 In our opinion, Applicant should be required Pompano Beach, Florida, a bank holding company to enter Steamboat Springs through the formation within the meaning of the Bank Holding Company of a new bank rather than through acquisition of Act, has applied for the Board’s approval under Bank. Applicant is the State’s largest bank holding § 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) to company with approximately 15 per cent of the acquire 90 per cent or more of the voting shares deposits of commercial banks in the State. Un­ of the following four Florida banks: (1) The Indian doubtedly, it has the financial and managerial River Citrus Bank, Vero Beach (“ Indian River resources necessary to support its entry de novo Bank” ); (2) The Westside Bank of Vero Beach, into Steamboat Springs. The majority points to the Vero Beach (“Westside Bank” ), a newly char­ fact that three separate groups have applied for tered bank, (3) The Beach Bank of Vero Beach, charters to organize new banks in Steamboat Vero Beach (“Beach Bank” ); and (4) The Sebas­ Springs as support for the proposition that it is tian River Bank, Sebastian, (“Sebastian Bank” ). unlikely that Applicant would attempt to enter Notice of the applications, affording opportunity Steamboat Springs de novo. The fact that groups for interested persons to submit comments and other than Applicant have applied for bank charters views, has been given in accordance with § 3(b) in Steamboat Springs (possibly making Appli­ of the Act. The time for filing comments and views cant’s prospects for being granted a new charter has expired, and the Board has considered the less likely) in no way justifies approval of Appli­ application and all comments received in light of cant’s request to acquire a monopoly position in the factors set forth in § 3(c) of the Act (12 U.S.C. Steamboat Springs through acquisition of Bank. 1842(c)). The very fact that numerous groups are attempting Although each of the applications has been to organize new banks in that community serves separately considered by the Board, because of the as strong indication of the present or potential facts and circumstances common to the four ap­ ability of the area to support at least one other plications, this Order contains the Board’s findings bank. and conclusions with respect to all four applica­ In commenting on this case, the Department of tions. Justice observed that permitting the large Denver- Applicant controls four banks with aggregate based holding companies to expand to the western deposits of approximately $145 million, repre­ slope in Colorado through acquisition of the senting 0.8 per cent of total deposits in commercial strongest independent banks in that area would banks in Florida and it is the twenty-first largest serve to deter the development of additional bank­ banking organization in the State.1 Applicant’s ing alternatives in these local markets. We concur acquisition of Indian River Bank (deposits of $52 with that view. Any new bank that may be organ­ million), Westside Bank (a newly chartered bank), ized in Steamboat Springs will have an uphill Beach Bank (deposits of $13 million), and Sebas­ struggle in the face of Bank’s already dominant tian Bank (deposits of $4.4 million) would in­ position. Upon acquisition of Bank by Applicant, crease its share of Statewide deposits to slightly Bank’s present dominance will be greatly rein­ more than 1 per cent and change its rank among forced, thus making even more uncertain the banking organizations in Florida to eighteenth. prospects for meaningful competition developing Applicant’s acquisition of only Indian River Bank in the foreseeable future in Steamboat Springs and Westside Bank would increase its share of from a newly established bank. Statewide deposits to approximately 1 per cent and In our judgment, these potential adverse effects it would rank nineteenth among Florida banking are not outweighed by any public benefits that have organizations. Approval of all the proposed acqui­ been cited as likely to result from the affiliation sitions would not result in any significant increase of Bank with Applicant. We believe this applica­ in the concentration of banking resources in tion should be denied. Florida. The four banks involved are located in and serve the Indian River County banking market. Appli­ FIRST NATIONAL BANKSHARES OF cant’s closest existing subsidiary bank is located FLORIDA, INC., approximately 100 miles from the market area POMPANO BEACH, FLORIDA involved and none of Applicant’s present subsi­ Order Approving Acquisition of Two Banks and Denying Acquisition of Two Banks 1 Banking data are as of June 30, 1972, adjusted to reflect holding company acquisitions and formations approved through First National Bankshares of Florida, Inc., December 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 363 diary banks compete to any significant extent with four banks and result in a deconcentration of any of the proposed subsidiary banks. Due to the banking resources in the market. Since Applicant distances separating the institutions, the number is presently the twenty-first largest of twenty-five of banks in the intervening area, and Florida’s existing holding companies in Florida, it would restrictions on branch banking, it is unlikely that appear preferable, from a competitive standpoint, any significant competition between Applicant’s to permit a relatively small bank holding corppany existing subsidiary banks and the proposed subsi­ to acquire Indian River Bank and thereby foster diaries would develop in the future. competition in the market and on a Statewide Beach Bank, controlling 14.4 per cent of de­ basis. Further, Applicant has committed that it will posits in the relevant market, and Sebastian Bank, increase Indian River Bank’s capital by $1 million controlling approximately 5 per cent of deposits within six months from consummation of the in the relevant market, are, respectively, the third proposed acquisition and, therefore, banking fac­ and fourth largest of four existing banks in that tors lend weight toward approval of such acquisi­ market. Beach Bank, Sebastian Bank and West- tion. side Bank were all organized under the auspices Applicant’s acquisition of Beach Bank and Se­ of Indian River Bank, which is the largest of the bastian Bank, in addition to its acquisition of four existing banks in the relevant market, con­ Indian River Bank, would have significant anti­ trolling approximately 58 per cent of deposits. Due competitive consequences. The existing affiliation to common share ownership, common manage­ among the banks would become more permanent ment, and interlocking director relationships within a holding company structure, deconcentra­ among Indian River Bank, Beach Bank, and Se­ tion of banking resources in the relevant market bastian Bank, there is little competition among the would become very unlikely, since it appears thatj three banks. Indian River Bank and its affiliates there are significant barriers for entry into tfie are the dominant banking organization in the mar­ market by other banking organizations, and'lhe ket which is highly concentrated. Together, they possibility of significant competition developing control approximately 77 per cent of deposits in among the three banks would be foreclosed. The the market. There is only one other bank in the acquisition by Applicant of Westside Bank, in market. addition to Indian River Bank, would not involve In addition to the four existing banks in the significant anticompetitive effects, since Westside relevant market and Westside Bank, another hold­ Bank is a recently chartered bank that has not yet ing company has received approval to establish competed in the market. a de novo bank in the market. Two applications The financial and managerial resources of Ap­ by holding companies to charter de novo national plicant, its existing subsidiary banks, and Banks banks in the market have recently been denied by are consistent with approval of all four applica­ the Comptroller of the Currency. Accordingly, de tions, particularly in view of Applicant’s commit­ novo entry into the market by other banking orga­ ment to increase Indian River Bank’s capital by nizations seems foreclosed at present. Therefore, $1 million within six months from consummation Applicant’s acquisition of all four banks would of such acquisition. However, financial and mana­ preclude entry by other banking organizations into gerial considerations do not outweigh the anti­ the Indian River County banking market, would competitive effects involved in Applicant’s pro­ make permanent the near monopoly that the Indian posals to acquire Beach Bank and Sebastian Bank. River Bank and its affiliates enjoy in the market, Considerations relating to the convenience and and would foreclose the possibility of potential needs of the communities to be served are also competition developing among any one or more consistent with approval of all four applications, of the four banks involved. Under these circum­ but do not outweigh the previously cited adverse stances, the Board does not believe that approval effects with respect to Beach Bank and Sebastian of all four of the proposed acquisitions would be Bank. justified, under the standards of the Act, absent In summary, it is the Board’s conclusion that compelling considerations bearing upon the con­ approval of all four applications would have the venience and needs of the communities involved. effect of substantially foreclosing future competi­ Although Applicant’s acquisition of Indian tion in the Indian River County banking market. River Bank would result in Applicant controlling However, acquisition of Indian River Bank and the largest bank in the market, such acquisition Westside Bank would be in the public interest would also break the existing affiliation among the since it would result in disaffiliation of a near Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 FEDERAL RESERVE BULLETIN □ MAY 1973 monopoly in the market and promote deconcen­ (September 25, 1972, The Wall Street Journal and tration of banking resources in the market. Ac­ September 26, 1972, West Palm Beach Commer­ cordingly, it is the Board’s judgment that con­ cial Record) in accordance with § 225.4(b)(1) of summation of the proposed acquisitions of Indian the Board’s Regulation Y. The time for filing River Bank and Westside Bank would be in the comments and views has expired, and all those public interest and that those two applications received, including those of the Comptroller of should be approved; and that consummation of the Florida, the Florida Bankers Association, and the proposed acquisitions of Beach Bank and Sebas­ Palm Beach County Bankers Association, Inc., tian Bank would not be in the public interest and have been considered in light of the factors set that those two applications should be denied. forth in § 4(c)(8) of the Act (12 U.S.C. On the basis of the record, the applications to 1843(c)(8)). Among those letters commenting on acquire Beach Bank and Sebastian Bank are denied the proposal were requests for a hearing; those and the applications to acquire Indian River Bank persons seeking a hearing were asked what sub­ and Westside Bank are approved for the reasons stantial issues of material fact, if any, were pre­ summarized above. The transactions involving In­ sented by the instant proposal and why any issues dian River Bank and Westside Bank shall not be raised could not be resolved by the submission consummated (a) before the thirtieth calendar day of written comments. Prior to receipt of responses following the effective date of this Order or (b) to these questions, the Board was apprised that, later than three months after that date, and (c) The on November 30, 1972, the Florida Legislature Westside Bank of Vero Beach, Vero Beach, enacted legislation1 that became effective on De­ Florida, shall be opened for business not later than six months after the effective date of this Order. Each of the periods described in (b) and (c) may *The legislation amended section 659.141 of the Florida Statutes. Section 659.141, as amended, provides, in pertinent be extended for good cause by the Board, or by part: the Federal Reserve Bank of Atlanta pursuant to 659.141(1) Control; ownership.— (1) Except as provided in subsection (3) of this section, no delegated authority. bank, trust company, or holding company, the operations of By order of the Board of Governors, effective which are principally conducted outside this State, shall ac­ April 19, 1973. quire, retain, or own, directly or indirectly, all or substantially all the assets of, or control over, any bank or trust company having a place of business in this State where the business Voting for this action: Chairman Burns and Governors of banking, or trust business or functions are conducted, or Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. acquire, retain or own all or substantially all of the assets of, (Signed) Tynan Smith, or control over, any business organization having a place of business in this State where or from which it furnishes invest­ [seal] Secretary of the Board. ment advisory services in this State. However, if a bank, trust company, or holding company directly or indirectly owning ORDERS UNDER SECTION 4(c)(8) all or substantially all the assets of, or having control over, a bank or a trust company or business organization to which OF BANK HOLDING COMPANY ACT the restrictions and prohibitions of this section apply, having acquired such assets or control prior to becoming disqualified BANKERS TRUST NEW YORK hereunder, shall, on or after the effective date of this section, be or become disqualified hereunder to acquire, retain or own CORPORATION, the same, the restrictions and prohibitions of this section shall NEW YORK, NEW YORK not be enforced against it for a period which, under all the circumstances, is determined by the department to be reas­ Order Denying Proposal to Act as an onable, not exceeding two years from the effective date of Investment Adviser this Act or from the date it becomes disqualified hereunder, whichever is later, unless said period of two years is extended by the department as herein provided. The department is Bankers Trust New York Corporation, New authorized, upon a showing of undue hardship, to extend said York, New York (“ BTNYC” ), a bank holding period of two years from time to time if the department company within the meaning of the Bank Holding determines that any such extension would not be detrimental to the public interest, but any such extension shall not exceed Company Act, has proposed under § 4(c)(8) of one year and all thereof shall not in the aggregate exceed three the Act and § 225.4(b)(1) of the Board’s Regula­ years. * * * tion Y, to engage indirectly de novo in the per­ (2) . . . formance of certain investment advisory activities, (c) A business organization provides investment advisory through B T Investment Managers, Inc., Palm services if, in this State for compensation, it engages in the business of advising persons, as defined in § 1.01(3), Florida Beach, Florida (“BTIM” ), a wholly-owned sub­ Statutes, either directly or indirectly or through publications sidiary of BTNYC. or writings, as to the value of securities or as to the advisability Notice of the proposal, affording opportunity for of investment in or purchasing securities, or if, not being a certified public accountant, in this State and for compensation, interested persons to express or submit comments it issues or distributes to persons, as defined in § 1.01(3), and views on the proposal, has been published Florida Statutes, analyses or reports concerning securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 365 cember 21, 1972. Subsequently, the Board enter­ tended that the “grandfather” benefit, conferred tained briefs and written argument on the issue by the newly-enacted legislation, is not available of the applicability and effect of the amended to BTNYC or BTIM. However, assuming, without statute on the instant proposal from those persons deciding, that the construction given the “grand­ that had requested to be heard. father” provision by BTNYC is correct, the Board Absent the recent enactment of amendments to perceives, as a possible adverse effect of the in­ section 659.141 and any evidence indicating that stant proposal, the indefinite and temporary nature de novo entry in this case would have the purpose of BTlM’s performance of investment advisory or effect of foreclosing future competition or services. The public is ill-served by a firm offering would otherwise be contrary to the public interest,2 investment advisory services that may, by law, it appears likely that the Board would have ap­ have to be terminated within a relatively short time proved the instant proposal. The Board recognizes, period. Customers entering into contracts for such as has Congress, “that an activity commenced de services would generally do so in reliance upon novo will tend to have pro-competitive effects, and the continuing and long-term nature of such serv­ consequently should be viewed more favorably ices. In another sense, one may question the vigor than the commencement of an activity through the with which an entrant into a market will compete acquisition of an existing concern”3 and “where and the quality of the services it will offer, if its a bank holding company enters a new market de employees are burdened by the realization that, novo . . . , its desire to succeed in its new endeavor irrespective of their performance, their duty is only is more likely to be competitive.”4 However, temporary and the office may be closed at any while the instant proposal was pending before the time. However, in view of the disposition of the Board, the Florida Statutes were amended to gen­ instant proposal on other grounds, the Board is erally prohibit the provision of investment advi­ not required to decide at this time whether the sory services in Florida by non-Florida-based bank possibility of such an adverse effect is of sufficient holding companies through control of business weight as to outweigh the public benefits that may organizations having offices in Florida. The legis­ reasonably be expected to derive from the instant lation further provides however that the restrictions proposal, notably the increased competition prob­ and prohibitions contained therein shall not be ably resulting from de novo entry. enforced for a period of time ranging up to five In addition to the factors that the Board is, by years against any holding company which, prior statute, required to consider, the Board, in any to the effective date of such legislation, acquired particular case, must determine whether the pro­ control over a business organization to which the posal would be prohibited by State law. If the restrictions or prohibitions of the statute apply. proposal would be so prohibited, the Board may There appears to be tacit agreement that the not approve it.5 In making such a determination, recently-enacted legislation was intended to, and the Board will presume the constitutional validity does, prohibit the performance of investment ad­ of any pertinent State statute.6 The interpretation visory services in Florida by non-Florida bank and construction of controverted State statutes is holding companies. However, BTNYC has con­ a task that is not eagerly undertaken by the Board. tended that, under the “grandfather” provision in Certainly, the courts of Florida are a more appro­ the statute, BTIM may open for business and priate forum for the resolution of disputed ques­ engage in the provision of investment advisory tions of Florida law, than is the Board. Never­ services for a period of approximately two years. theless, the Board believes that the principle laid The protestants to the proposal, with the concur­ down by the Supreme Court in the Whitney case rence of the Comptroller of Florida, have con­ requires the Board to initially resolve the legal issue presented here. The issue which is determinative of the instant 2See the Board’s Order of March 6, 1973, denying the proposal is whether the “grandfather” provision application of First at Orlando Corporation to acquire shares of Citrus First National Bank of Leesburg, 38 Federal Register 6317 (March 8, 1973) and the Board’s Statement accompany­ ing its Order of March 9, 1973 approving, to the extent 5 Whitney National Bank in Jefferson Parish v. Bank of New permitted by State law, the proposal of NCNB Corporation Orleans & Trust Co., 379 U.S. 411 (1965). to engage in certain trust activities in South Carolina through 6See Statement accompanying the Board’s Order of March American Trust Company, 1973 Federal Reserve Bulletin 9, 1973, approving, to the extent permitted by State law, the 305. proposal of NCNB Corporation, Charlotte, North Carolina, to 35. Rep. No. 91-1084, 91st Cong., 2d Sess. 16 (1970). operate a trust company in South Carolina through American 4H. R. Rep. No. 91-1747, 91st Cong., 2d Sess. 17 (1970). Trust Company, 1973 Federal Reserve Bulletin 305. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 FEDERAL RESERVE BULLETIN □ MAY 1973 of the recently-enacted legislation effectively per­ 1972, triggered the action of the Florida Legisla­ mits BTNYC to initiate investment advisory serv­ ture in this case and that the newly-enacted legis­ ices from a Florida office, albeit for an indefinite lation was primarily motivated by the threat of and temporary period of time. BTNYC states, and, BTNYC’s entry into the Florida investment advi­ the Board finds that BTIM was incorporated in sory markets and was intended to prevent such the State of Delaware on November 24, 1972, at entry. Accordingly, the Board concludes that, the the direction of BTNYC, and that, on November “grandfather” provision was not intended to per­ 27, 1972, BTIM qualified with the Secretary of mit the instant proposal, even for a limited period State of Florida to do business in Florida. How­ of time. ever, BTNYC has not alleged that BTIM, at any BTNYC, besides contending that the Board time, has had a place of business in Florida or should refrain from construing the newly-enacted that BTIM has furnished investment advisory Florida legislation, contends that they are entitled services in Florida. Nor could BTIM legally have to “grandfather” benefits because the “grandfa­ done so, the prior approval of the Board not having ther” provision, which authorizes the Florida been secured by BTNYC. It is not contended that Banking Department to determine the length of BTIM is either a bank or trust company. time during which the statute shall not be enforced On the basis of these facts, BTNYC contends, against a company entitled to “grandfather” ben­ and the protestants do not contend otherwise, that efits, constitutes an unconstitutional delegation of BTIM is a “business organization” ; that BTNYC authority to that agency. As the Board has pre­ has “control” over BTIM and had acquired that viously indicated, it will presume the consti­ control prior to becoming disqualified under the tutional validity of State statutes. BTNYC’s chal­ newly-enacted legislation. The protestants, on the lenge to the constitutionality of any provision of other hand, contend that, irrespective as to whether the recently-enacted Florida legislation is properly BTIM is a “business organization” or whether cognizable only by the judiciary. In brief, since BTNYC controlled BTIM prior to the effective the Board is of the opinion that the proposal is date of the amendment, BTNYC is not entitled prohibited by State law, it believes that, under the to “grandfather” benefits because BTIM did not doctrine set forth by the U.S. Supreme Court in furnish investment advisory services in Florida Whitney, it must deny the proposal. from a place of business in Florida on the effective The Board is not unsympathetic with BTNYC date of the legislation. In the Board’s opinion, the when that holding company questions “the conclusion is inescapable that the “grandfather” fairness and legality of a procedure whereby pro­ provision of the legislation only applies to a bank, ponents of this legislation could prevent [its] pro­ trust company or business organization “having posal from becoming effective by filing objections a place of business in [Florida] where or from with the Board and requesting a hearing and then, which it furnishes investment advisory services in after hasty enactment of legislation, argue that this [Florida]” on the effective date of the legislation. very legislation should be the basis for the Board Since BTIM is neither a bank or a trust company, to bar approval of [its] proposal.” There is sub­ and did not have on that date a place of business stantial evidence that the celerity with which the in Florida where or from which it furnished or legislation was enacted is directly attributable to provided investment advisory services, the Board the pendency of the instant proposal before the concludes, as a matter of law, that BTNYC is not Board. However, section 77 of the Act expressly entitled to the benefits of the “grandfather” pro­ reserves to the States the authority to adopt legis­ vision in section 659.141. lation in the exercise of their powers and juris­ Furthermore, the legislative history of the legis­ diction with respect to banks, bank holding com­ lation evidences a legislative intent to exclude panies, and their subsidiaries, and the U.S. Su­ BTNYC from engaging in the provision of invest­ preme Court in Whitney expressly instructed the ment advisory services in Florida from a Florida Board to consider the applicability and effect of office. In view of the conflicting constructions any such legislation. Accordingly, irrespective of given the “grandfather” provision, the Board be­ lieves that an examination of the legislative history 7Section 7 of the Act provides: of the legislation is appropriate to ascertain the The enactment by the Congress of the Bank Holding Company legislative intent. It is beyond question, and Act of 1956 shall not be construed as preventing any State from exercising such powers and jurisdiction which it now BTNYC and the protestants are in agreement, that has or may hereafter have with respect to banks, bank holding the notice that BTNYC published in September, companies, and subsidiaries thereof. (12 U.S.C. 1846) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 367 any doubt the Board may entertain as to the Applicant, a one bank holding company, con­ wisdom or desirability of a particular State enact­ trols The Oregon Bank, Portland, Oregon ment, the Board must, and will, respect, and act (“Bank”), the third largest banking organization in the light of, pertinent State legislative judg­ in Oregon with deposits of about $164 million, ments. representing less than 4 per cent of total deposits Based upon the record and for the reasons in commercial banks in the Statfe.2 (The two largest expressed herein, the proposal of BTNYC Cor­ banking organizations in Oregon together control poration to provide investment advisory services approximately 78 per cent of all commercial bank in Florida through the instrumentality of BTIM, deposits.) Applicant, through Bank and its newlyis hereby denied. established mortgage banking subsidiary, Colum­ By order of the Board of Governors, effective bia, engages in the same line of business activity April 26, 1973. as Far West; Bank operates 23 offices throughout the State of Oregon while Columbia limits its Voting for this action: Vice Chairman Robertson and Gov­ ernors Daane, Brimmer, Sheehan, and Bucher. Absent and mortgage activities to the Portland area. With three not voting: Chairman Burns and Governor Mitchell. offices, Far West serves Spokane, Benton, and (Signed) Chester B. Feldberg, Franklin Counties in eastern Washington State. In [seal] Assistant Secretary of the Board. 1971, Far West held $19 million in mortgage originations in Spokane County, or almost 8 per cent of the total mortgages originating in the ORBANCO, INC., County; during the first eight months of 1972, the PORTLAND, OREGON total amount of mortgages originated by Far West Order Approving Acquisition of Far West amounted to about $10 million. As of September Securities Co. 30, 1972, Far West serviced a mortgage loan portfolio of $31 million. Orbanco, Inc., Portland, Oregon, a bank hold­ On the basis of the facts of record, it appears ing company within the meaning of the Bank that neither Applicant nor Far West is a major Holding Company Act, has applied for the Board’s competitor in the mortgage markets of Oregon and approval, under section 4(c)(8) of the Act and § Washington, respectively; that the service areas 225.4(b)(2) of the Board’s Regulation Y, to ac­ of each do not overlap, and that there is no direct quire (through its wholly owned subsidiary, Co­ competition between them. Consummation of the lumbia Mortgage Co., Portland, Oregon (“Co­ proposed transaction would not eliminate any ex­ lumbia”)) all of the voting shares of Far West isting competition in either Washington or Oregon. Securities Co., Spokane, Washington (“Far Moreover, Applicant and Far West are not likely West”), a company that engages in mortgage to compete in the near future due to their relatively banking activities. Such activities have been de­ small sizes and the intervening distances. Further, termined by the Board to be closely related to the it does not appear that consummation herein would business of banking (12 CFR 225.4(a)(1)). add significantly to the existing level of market Notice of the application, affording opportunity concentration or result in an undue concentration for interested persons to submit comments and of financial resources in any market. views on the public interest factors, has been duly In analyzing the financial condition of Appli­ published (37 Federal Register 2439Q). The time cant, the Board notes that Applicant has incurred for filing comments and views has expired, and substantial debt in order to support the lending the Board has considered all comments received operations of its non-bank subsidiaries, primarily in light of the public interest factors set forth in those of Northwest Acceptance Corporation, Port­ section 4(c)(8) of the Act (12 U.S.C. 1843(c)).1 land, Oregon, a finance company engaged in capi­ tal goods financing. Although Applicant’s overall debt level is relatively high in relation to other *Far West also sells insurance directly related to extensions bank holding companies, Applicant’s subsidiaries of credit in its mortgage banking activities. Applicant sought to acquire the mortgage banking activities of Far West as well appear to be in satisfactory financial condition and as the related insurance activities; however, in light of objec­ Applicant’s earnings appear to be sufficient to tions to these insurance activities, Applicant requested that the Board split the application into two separate parts. Accord­ service the debt. ingly, the Board’s Order herein deals only with the proposed acquisition of Far West’s mortgage banking activities. Appli­ cant’s request for Board approval to engage in the aforemen­ 2 All banking data are as of June 30, 1972, unless otherwise tioned insurance activities is still pending. indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 FEDERAL RESERVE BULLETIN □ MAY 1973 It is anticipated that affiliation with Applicant poses of the Act and the Board’s regulations and will provide Far West with access to the capital orders issued thereunder, or to prevent evasion resources of Applicant, enhance its ability to pro­ thereof. vide larger mortgage loans, permit expansion of By order of the Board of Governors, effective its range of services, and thereby enable it to April 26, 1973. compete more effectively in the competitive mar­ Voting for this action: Chairman Burns and Governors ket it serves. The Board concludes that these Daane, Sheehan, and Bucher. Voting against this action: Governors Robertson, Mitchell, and Brimmer. public benefits are a positive factor in terms of the convenience and needs of the public. (Signed) Chester B. Feldberg, In its consideration of Applicant’s proposal, the [seal] Assistant Secretary of the Board. Board has considered the question whether a cov­ enant not to compete contained in a proposed Dissenting Statement of employment contract between a bank holding Governors Robertson and Brimmer company and a principal executive and shareholder of a company (engaged in permissible activities) We would disapprove the application by Orabout to be acquired by the bank holding company banco, Inc., to acquire Far West Securities Com­ is contrary to the public interest standards the pany. Our decision is based on the existence of Board is required to consider under the Bank covenants not to compete contained in the Holding Company Act. Historically, in the busi­ proposed employment contracts (which would be­ ness community, covenants not to compete have come effective upon the acquisition of Far West represented a legitimate business requirement of by Orbanco) between Far West and two of its parties to contracts for the purchase of a business, principal executives and shareholders. Essentially, and, after having met the general test of reas­ the contracts provide that these two individuals onableness of duration, scope, and geographic agree that, for what amounts to a period of ten area, have been sustained by courts as legally valid years, each of them will not be associated with and enforceable. In view of the long history of another mortgage firm that might be in competition acceptability enjoyed by such covenants, as well with Far West. In effect, the agreement precludes as the position of such covenants under the law, the possibility that the individuals in question the Board finds that such covenants are not con­ might form a new mortgage company that would trary per se to the public interest. However, the provide an alternative source of mortgage services Board shall examine the details of all employment and serve as an additional competitor to Far West. contracts that come before it in connection with In our view, such agreements are inconsistent with applications under the Bank Holding Company Act the promotion of competition—as required under in order to determine under the facts and circum­ the Bank Holding Company Act—and should not stances of each case whether a particular covenant be sanctioned by the Board. not to compete is consistent with the public inter­ In acting on an application by a holding com­ est. Having reviewed the details of the covenants pany to expand into an area that is closely related not to compete in the employment contracts in­ to banking such as mortgage banking, the Board volved in this case, the Board finds that their is directed by the Act to determine whether the provisions are consistent with the public interest, acquisition can reasonably be expected to produce and the existence of such covenants does not benefits to the public, such as greater convenience, require denial of the application. increased competition, or gains in efficiency, that Based upon the foregoing and other consid­ outweigh any possible adverse effects. In other erations reflected in the record, the Board has words, under the law, as well as under the Board’s determined that the balance of the public interest Regulation Y, an application may not be approved factors the Board is required to consider under unless it is in the public interest. section 4(c)(8) is favorable. Accordingly, the ap­ The majority has presented no evidence to show plication is hereby approved. This determination that these covenants are in the public interest. On is subject to the conditions set forth in section the contrary, even the title accorded to the agree­ 225.4(c) of Regulation Y and to the Board’s au­ ments, “covenant not to compete” , makes it unthority to require such modification or termination mistakeably clear that their primary purpose is to of the activities of a holding company or any of restrict the development of competition and to its subsidiaries as the Board finds necessary to protect the market position that Applicant is ac­ assure compliance with the provisions and pur­ quiring. While these covenants may be widely Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 369 accepted in the business community, and even the Board has considered all comments received sanctioned by some courts, such agreements are in the light of the public interest factors set forth rarely, if ever, scrutinized prior to the time of in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). becoming effective by an agency such as the Board On the basis of the record, the application is that has as one of its responsibilities the promotion approved for the reasons set forth in the Board’s of competition in areas closely related to banking. Statement, which will be released at a later date. Given this plainly stated statutory responsibility, This determination is subject to the conditions set we cannot condone, nor perceive how the public forth in § 225.4(c) of Regulation Y and to the interest is served by, approving agreements which Board’s authority to require such modification or by their very nature retard the development of termination of the activities of the holding com­ competition by restricting entry into a business by pany or any of its subsidiaries as the Board finds individuals who should be free to compete if they necessary to assure compliance with the provisions so desire. and purposes of the Act and the Board’s regula­ Under the circumstances of this case, we con­ tions and orders issued thereunder, or to prevent clude that, upon weighing the factors the Board evasion thereof. is required to consider under § 4(c)(8) of the Act, By order of the Board of Governors, effective consummation of the Applicant’s proposal as now March 30, 1973. constituted would be contrary to the public inter­ Voting for this action: Vice Chairman Robertson and Gov­ est. For these reasons, we would deny the appli­ ernors Mitchell, Daane, and Brimmer. Absent and not voting: cation. Chairman Burns and Governors Sheehan, and Bucher. (Signed) Tynan Smith, PATAGONIA CORPORATION [seal] Secretary of the Board. TUCSON, ARIZONA Order Approving Acquisition of Creditel Statement Corporation Patagonia Corporation, Tucson, Arizona, a Patagonia Corporation, Tucson, Arizona, a bank holding company within the meaning of the bank holding company within the meaning of the Bank Holding Company Act, has applied for the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to § 225.4(b)(2) of the Board’s Regulation Y, to acquire through its subsidiary, Model Finance acquire through its subsidiary, Model Finance Company, all of the voting shares of Creditel Company, all of the voting shares of Creditel Corporation of Nebraska No. 1, Omaha; Creditel Corporation of Nebraska No. 1, Omaha; Creditel Corporation of Nebraska No. 2, Omaha; and Cre­ Corporation of Nebraska No. 2, Omaha; and Cre­ ditel Corporation of Nebraska No. 4, Columbus; ditel Corporation of Nebraska No. 4, Columbus; all located in the State of Nebraska and each of all located in the State of Nebraska and each of which is a wholly owned subsidiary of Creditel which is a wholly-owned subsidiary of Creditel Corporation, Omaha, Nebraska. Creditel Cor­ Corporation, Omaha, Nebraska. Creditel Cor­ poration through these subsidiaries engages in the poration, through these subsidiaries, engages in activities of making, acquiring, or servicing loans the activities of making, acquiring, or servicing or other extensions of credit for personal, family, loans or other extensions of credit for personal, or household purposes, and acts as insurance agent family, or household purposes, and acts as insur­ or broker in selling credit life, accident and health ance agent or broker in selling credit life, accident insurance, and property damage insurance for col­ and health insurance, and property damage insur­ lateral supporting loans to borrowers from these ance for collateral supporting loans to borrowers finance subsidiaries. Such activities have been from these finance subsidiaries. Such activities determined by the Board to be closely related to have been determined by the Board to be closely the business of banking (12 CFR 225.4(a)(1), (3) related to the business of banking (12 CFR and (9)(ii)(a)). 225.4(a)(1), (3) and (9)(ii)(a)). Notice of the application, affording opportunity Notice of the application, affording opportunity for interested persons to submit comments and for interested persons to submit comments and views on the public interest factors, has been duly views on the public interest factors, has been duly published (38 Federal Register 1964). The time published (38 Federal Register 1964). The time for filing comments and views has expired, and for filing comments and views has expired, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 FEDERAL RESERVE BULLETIN □ MAY 1973 the Board has considered all comments received Based upon the foregoing and other consid­ in the light of the public interest factors set forth erations reflected in the record, the Board has in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). determined that the balance of the public interest Applicant’s banking subsidiary, Great Western factors the Board is required to consider under § Bank and Trust Company, is the fourth largest 4(c)(8) is favorable. Accordingly, the application banking organization in Arizona. Its deposits of is hereby approved. This determination is subject $177 million represent 3.9 per cent of total depos­ to the conditions set forth in § 225.4(c) of Regu­ its in the State.1 Great Western makes consumer lation Y and to the Board’s authority to require installment loans through its headquarters office in such modification or termination of the activities Phoenix and in branch offices throughout Arizona. of a holding company or any of its subsidiaries Model Finance Company, Patagonia’s consumer as the Board finds necessary to assure compliance finance holding company, has offices operating in with the provisions and purposes of the Act and Arizona, Nevada, New Mexico, and Colorado. the Board’s regulations and orders issued Creditel Corporation, operating through its three thereunder, or to prevent evasion thereof. subsidiaries, Creditel Corporation of Nebraska Nos. 1, 2 and 4, is a small consumer finance Concurring Statement of Governor Daane company with installment receivables of $3.3 mil­ lion.2 It has three offices, two in Omaha and one I concur in the Board’s approval of this appli­ in Columbus, about 80 miles west of Omaha. cation.1 However, I wish to express my views on Creditel makes small consumer loans and sells the Board’s statement that it has taken into account credit insurance in connection with its lending Applicant’s commitment to drop the covenant not activities. The local markets for consumer loans to compete which had been entered into with in which Creditel competes include a number of Creditel’s principal shareholder. The “taken into offices of the largest finance companies in the account” phraseology simply means that the other country. Board members’ approval in fact is contingent on Consummation of the proposal would eliminate Applicant’s dropping said covenant. no existing competition between any of Appli­ Such covenants have a long history of use in cant’s existing subsidiaries and Creditel, nor, in connection with the sale of basically ownerview of the distances involved, is it likely that operated businesses, and their validity has been any such competition would develop in the ab­ sustained by the courts so long as they are reason­ sence of the proposal. There is no evidence in the able in scope, duration, and geographic area. Such record indicating that consummation of the por- covenants perform a useful economic function by posed transaction would result in any undue con­ rendering the goodwill of a business saleable. centration of resources, unfair competition, con­ They assure to the buyer the value of what he flicts of interests, unsound banking practices, or has bought. other adverse effects on the public interest. In my judgment, the covenant not to compete It is anticipated that Creditel Corporation’s in this instance meets the tests of being reasonable affiliation with Applicant will give Creditel Cor­ in scope, duration, and geographic area. The con­ poration access to the greater resources of Appli­ sumer finance industry is characterized by low cant, and enable it to compete more effectively barriers to entry and the covenant appears reason­ with other consumer finance companies in the area ably necessary to assure Applicant of the value in which it operates. On balance, the Board con­ of his purchase. Further, in this case, payment for cludes that the public benefits factors the Board the covenant does not appear to be a device to is required to consider under § 4(c)(8) outweigh avoid any Board policy, such as that requiring an any possible adverse effects that might result from equal offer to all shareholders. the proposed acquisition. In its consideration of Under these circumstances, it is my belief that this matter, the Board has taken into account the Board should not have taken the covenant, or Applicant’s commitment not to enforce or rely the Applicant’s expressed willingness to drop it upon a covenant not to compete obtained from in order to obtain approval, into account, in the Creditel’s majority stockholder in connection with sense of a condition of approval, in acting on the this transaction. application. Governor Sheehan, who was absent and not voting on this 1 All banking data are as of June 30, 1972. action, wishes to express his agreement with this concurring 2 All nonbanking data are as of September 30, 1972. position. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 371 BOARD REVIEW UNDER THE GRANDFATHER by virtue of Registrant’s ownership of 100 per cent PROVISO IN SECTION 4(a)(2) OF THE BANK of the voting shares (less directors’ qualifying HOLDING COMPANY ACT shares) of Whitney National Bank of New Orelans (“Bank”), New Orleans, Louisiana (assets of ap­ WHITNEY HOLDING CORPORATION, proximately $736 million, as of December 31, NEW ORLEANS, LOUISIANA 1970). Bank, control of which was acquired by “Grandfather” Privileges Registrant in May, 1962, had total deposits of Under Bank Holding Company Act approximately $708 million as of June 30, 1972, representing a little less than 30 per cent of the Section 4 of the Bank Holding Company Act aggregate deposits in commercial banks located in (12 U.S.C. 1843) provides certain privileges Orleans Parish, and is the largest of nine banks (“grandfather” privileges) with respect to non­ located in the Orleans Parish area. 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 satisfactory, and the Board has found Company Act, became subject to the Bank Hold­ no evidence of unsound banking practices. ing Company Act. Pursuant to § 4(a)(2) of the It appears that Registrant does not engage di­ Act, a “company covered in 1970” may continue rectly in any business activity other than holding to engage, either directly or through a subsidiary, stock of, or providing services to its subsidiaries. in non-banking activities that such a company was Registrant has four nonbanking subsidiaries, lawfully engaged in on June 30, 1968 (or on a namely, Berwick Land Company, Inc. (“Ber­ date subsequent to June 30, 1968, in the case of wick”), Common Street Corporation (“Common activities carried on as a result of the acquisition Street”), Gravier Street Corporation (“Gravier”), by such company or subsidiary, pursuant to a and Louisiana Maintenance, Inc. (“Mainte­ binding written contract entered into on or before nance”), all of New Orleans, Louisiana. June 30, 1968, of another company engaged in Berwick owns approximately 2900 acres of land, such activities at the time of the acquisition), and some of which is leased to farmers for raising has been continuously engaged in since June 30, sugar cane. The land was originally acquired, on 1968 (or such subsequent date). August 15, 1928, through debts previously con­ Section 4(a)(2) of the Act provides, inter alia, tracted by Whitney Trust & Savings Bank and was that the Board of Governors of the Federal Reserve assumed by Bank on April 26, 1933, when Whit­ System may terminate such grandfather privileges ney Trust & Savings Bank was merged into Bank. if, having due regard to the purposes of the Act, The land was shifted from Bank to Berwick on the Board determines that such action is necessary March 6, 1970. Inasmuch as Berwick did not to prevent undue concentration of resources, de­ engage in this activity on June 30, 1968, and the creased or unfair competition, conflicts of interest, holding company did not engage in this activity or unsound banking practices. With respect to a other than through Bank, the Board concludes that company that controls a bank with assets in excess no grandfather benefits accrue to Registrant with of $60 million on or after December 31, 1970, regard to Berwick activities. An activity engaged the Board is required to make such a determination in directly by a bank is regarded by the Board within a two year period. as not being an activity within the meaning and Notice of the Board’s proposed review of the intent of the grandfather proviso in § 4(a)(2) of grandfather privileges of the Whitney Holding the Act. Corporation, New Orleans, Louisiana, and an op­ Common Street and Gravier are inactive cor­ portunity for interested persons to submit com­ porations and have no activities entitled to grand­ ments and views or request a hearing, has been father privileges. given (37 F.R. 22414). The time for filing com­ Maintenance, which provides building mainte­ ments, views, and requests has expired, and all nance services to Bank on a cost basis, became those received have been considered by the Board a subsidiary of Bank on March 22, 1967. Under in light of the factors set forth in § 4(a)(2) of the § 4(c)(1)(C),1 the activities of Maintenance seem Act. On the evidence before it, the Board makes the following findings. Whitney Holding Corporation ‘Section 4(c)(1)(C) of the Act enables a bank holding (“Registrant”), New Orleans, Louisiana, became company to acquire (without the approval of the Board) “(1) shares of any company engaged . . . solely in . . . (C) a bank holding company on December 31, 1970, furnishing services to or performing services for such bank as a result of the 1970 Amendments to the Act, holding company or its banking subsidiaries. ...” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 FEDERAL RESERVE BULLETIN □ MAY 1973 to be exempt from the general prohibition of § Board of Governors, April 27, 1973. 4 against nonbanking activities. Voting for this action: Vice Chairman Robertson and Gov­ On the basis of the foregoing and the facts ernors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: Chairman Burns and Governor Mitchell. before the Board, it appears that Registrant is not entitled to grandfather benefits within the meaning (Signed) Chester B. Feldberg, of the proviso of § 4(a)(2) of the Act. [seal] Assistant Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During April 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 Dearborn Financial Corporation, Upper Avenue National Bank of 4/20/73 38 F.R. 10675 Chicago, Illinois Chicago, Chicago, Illinois 4/30/73 The Farmers & Merchants Insurance The Farmers and Merchants State 4/3/73 38 F.R. 9122 Agency, Inc., Colby, Kansas Bank, Colby, Kansas 4/10/73 Florida Bankshares, Inc., First National Bank of Hollywood, 4/20/73 38 F.R. 10678 Hollywood, Florida Hollywood, Florida 4/30/73 First National Bank of Hallandale, Hallandale, Florida Second National Bank of West Hollywood, Hollywood, Florida United Michigan Corporation, Genesee Merchants Bank & Trust 4/6/73 38 F.R. 9268 Flint, Michigan Co., Flint, Michigan 4/12/73 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 Alabama Bancorporation, The Commercial National Bank of 4/11/73 38 F.R. 10045 Birmingham, Alabama Anniston, Anniston, Alabama 4/23/73 BancOhio Corporation, The Peoples National Bank of 4/10/73 38 F.R. 10046 Columbus, Ohio Greenfield, Greenfield, Ohio 4/23/73 Barnett Banks of Florida, Inc., First State Bank of Lakeland, 4/12/73 38 F.R. 9683 Jacksonville, Florida Lakeland, Florida 4/19/73 Central Bancshares of the South, The First National Bank of Auburn, 4/19/73 38 F.R. 10511 Inc., Birmingham, Alabama Auburn, Alabama 4/27/73 The Deposit National Bank of Mo­ bile County, Prichard, Alabama Charter New York Corporation, The Bank of Lake Placid, 4/10/73 38 F.R. 10046 New York, New York Lake Placid, New York 4/23/73 First Alabama Bancshares, Inc., First National Bank of Bay Minette, 4/23/73 38 F.R. 10676 Birmingham, Alabama Bay Minette, Alabama 4/30/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 373 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation First Amtenn Corporation, Farmers-Peoples Bank, 4/26/73 38 F.R. 11134 Nashville, Tennessee Milan, Tennessee 5/4/73 First National Financial Corpora­ Cheboygan Bank, 4/10/73 38 F.R. 10047 tion, Kalamazoo, Michigan Cheboygan, Michigan 4/23/73 First Security National Corporation, Bank of Lancaster 4/26/73 38 F.R. 11135 Beaumont, Texas Lancaster, Texas 5/4/73 First Tennessee National Corpora­ The Fountain City Bank, 4/30/73 38 F.R. 12169 tion, Memphis, Tennessee Knoxville, Tennessee 5/9/73 First United Bancorporation, Inc., Cleburne National Bank, 4/30/73 38 F.R. 12168 Fort Worth, Texas Cleburne, Texas 5/9/73 Globe Corporation, Upper Avenue National Bank of 4/20/73 38 F.R. 10678 Scotsdale, Arizona Chicago, Chicago, Illinois 4/30/73 Tennessee Valley Bancorp., Inc., Citizens Bank, 4/26/73 38 F.R. 11137 Nashville, Tennessee Elizabethton, Tennessee 5/4/73 The First National Bank of Greene- 38 F.R. 11138 ville, Greeneville, Tennessee 5/4/73 Texas Commerce Bancshares, Inc., Inwood Commerce Bank, N.A., 4/26/73 38 F.R. 11012 Houston, Texas Houston, Texas 5/3/73 Kingwood Commerce Bank, N.A., Houston, Texas Virginia National Bankshares, Inc., Virginia Trust Company, 4/12/73 38 F.R. 9686 Norfolk, Virginia Richmond, Virginia 4/19/73 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal (effective Register Applicant Bank(s) date) citation Dominion Bankshares Corporation, The Fitton Company, 4/23/73 38 F.R. 10675 Roanoke, Virginia Alexandria, Virginia 4/30/73 The Farmers & Merchants Insurance The Farmers and Merchants State 4/3/73 38 F.R. 9122 Agency, Inc., Colby, Kansas Bank, Colby, Kansas 4/10/73 Fidelity Corporation of Pennsyl­ Commercial Capital Corporation, 4/12/73 38 F.R. 9684 vania, Rosemont, Pennsylvania New York, New York 4/19/73 Fidelity Union Bancorporation, Suburban Finance Company of 4/30/73 38 F.R. 12166 Newark, New Jersey Newark, Newark, New Jersey 5/9/73 First Jersey National Corporation, Atlantic City Loan Company, 4/30/73 38 F.R. 12168 Jersey City, New Jersey Atlantic City, New Jersey 5/9/73 First National Holding Corp., Fairlane Finance Co., 4/30/73 38 F.R. 12167 Atlanta, Georgia Easley, North Carolina 5/9/73 First Security National Corporation, First Security Financial Systems, 4/12/73 38 F.R. 9685 Beaumont, Texas Houston, Texas Third National Corporation, Mobilehome Guaranty Corporation, 4/13/73 38 F.R. 9686 Nashville, Tennessee Miami, Florida 4/19/73 Virginia National Bankshares, Inc., Atlantic Discount Corp., 4/30/73 38 F.R. 12169 Norfolk, Virginia Elizabeth City, North Carolina 5/9/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 FEDERAL RESERVE BULLETIN □ MAY 1973 ORDER UNDER BANK MERGER ACT APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank(s) date) citation Cheboygan State Bank, Cheboygan Bank, 4/10/73 38 F.R. 10047 Cheboygan, Michigan Cheboygan, Michigan 4/23/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements RESIGNATION OF MR. ROBERTSON AS VICE CHAIR­ DESIGNATION OF MR. MITCHELL MAN OF THE BOARD OF GOVERNORS AS VICE CHAIRMAN OF THE BOARD Governor James Louis Robertson, Vice Chairman President Nixon on May 17, 1973, designated Mr. of the Board of Governors of the Federal Reserve George W. Mitchell as Vice Chairman of the System, resigned at the end of April. Board of Governors to serve for a term of 4 years Mr. Robertson’s letter of resignation and the from May 1, 1973, unless and until his services President’s letter of acceptance follow: as a Member of the Board shall have sooner terminated. Mr. Mitchell, first appointed to the March 29, 1973 Board in 1961, was appointed to a full 14-year Dear Mr. President: term in 1962. I hereby tender my resignation as a member of the Board of Governors of the Federal Re­ CHANGES IN BOARD STAFF serve System, effective as of the close of busi­ The Board of Governors has announced the fol­ ness April 30, 1973, or any earlier date that lowing appointments: Ronald G. Burke, Director might better suit your convenience. of the Division of Personnel Administration, to Needless to say, I deeply appreciate the op­ succeed James A. McIntosh (see appointment of portunity and privilege of serving the public Reserve Bank officer below), as Director of the during so many different Administrations— Division of Federal Reserve Bank Operations, nearly forty-six years in the Federal public service, over twenty-one years as a member of effective at the end of May; and Chester B. Feldthe Board of Governors, and a third of that berg as Secretary of the Board effective July 1, period as its Vice Chairman. 1973, to succeed Tynan Smith, who is retiring. Mr. Feldberg, formerly Secretary of the Federal Sincerely, Reserve Bank of New York, has been on loan to J. L. Robertson the Board since January and has served as an THE WHITE HOUSE Assistant Secretary since March. He is a graduate April 25, 1973 of Union College, Schenectady, New York, and Dear Mr. Robertson: the Harvard Law School. It is with special appreciation for your many The Board has also announced the retirement contributions to the economic well-being of our of Howard H. Hackley, effective May 31, 1973. country that I accept your resignation as a Member and Vice Chairman of the Board of APPOINTMENT OF RESERVE BANK OFFICER Governors of the Federal Reserve System, as The Board of Directors of the Federal Reserve you have requested, effective April 30, 1973. Bank of Boston has appointed James A. McIntosh For more than two decades, your foresight, as First Vice President to succeed Earle O. integrity, and banking expertise have signifi­ Latham, who will retire on June 15, 1973. cantly helped maintain and strengthen this country’s banking system, a system which has BANK CREDIT ACTIONS furnished the capital for unparalleled national growth in the post-war years. Few men in the The Board of Governors announced on May 16, history of the “Fed” have served with such 1973, a series of actions designed to curb the rapid distinction and dedication, and on behalf of all expansion in bank credit and help moderate infla­ our fellow citizens, I want you to know of my tionary pressures, and at the same time to assure lasting gratitude and admiration for your superb the availability of credit on a reasonable scale. work. The measures will: As you prepare to leave government service, 1. Impose an 8 per cent marginal reserve re­ I welcome this occasion to extend my very best quirement (the regular 5 per cent plus a supple­ wishes to you and your family for every happi­ mental 3 per cent) on further increases in the total ness in the years ahead. of (a) outstanding certificates of deposit of $100,- Sincerely, 000 and over issued by member banks, and on Richard Nixon (b) outstanding funds obtained by a bank through 375 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 FEDERAL RESERVE BULLETIN □ MAY 1973 issuance by an affiliate of obligations subject to this expansion. Recent growth in bank credit to the existing reserve requirement on time deposits. major business corporations has been financed in The 8 per cent marginal reserve would not apply large part by increases in the issuance of money to banks whose obligations of these types aggre­ market-type instruments of the kinds covered by gate less than $10 million. the action taken today by the Board. 2. Reduce from 20 per cent to 8 per cent the Business borrowing from commercial banks in­ reserve requirement on certain foreign borrowings creased by about $15 billion during the first 4 of U.S. banks, primarily Euro-dollars, thus af­ months of this year. This increase was only par­ fording roughly parallel treatment at present with tially offset by the reduced use of commercial the marginal reserve requirement on large-denom­ paper by businesses to obtain funds. Commercial ination certificates of deposit and bank-related banks obtained funds to meet the demand for a commercial paper. The Board also acted to elimi­ rising volume of business loans largely through nate gradually the reserve-free bases still held by the sale of large negotiable CD’s, which also some banks subject to this measure. increased by about $15 billion over this period. 3. Suspend the ceilings that apply to the rate of interest commercial banks may pay on certifi­ Marginal Reserve on Large Denomination CD’s cates of deposit of $100,000 and over (large CD’s) The new 8 per cent marginal reserve requirement that mature in 90 days or more, effective immedi­ will apply to the total of single-maturity, large-deately. nomination CD’s and bank-related commercial 4. At the same time, the Board proposed a paper issued by a member bank beginning June regulatory amendment that would apply reserve 7, to the extent that this volume exceeds the requirements to funds raised by banks through average amount outstanding in the statement week sales of finance bills (sometimes called working ending May 16. In no case will the marginal capital acceptances). If adopted, the amendment reserve apply to an amount outstanding of less than would subject the amount of finance bills currently $10 million. outstanding to a 5 per cent reserve requirement. For example, if a member bank had outstanding (There is presently no reserve requirement on a total of $20 million of large CD’s and bankfinance bills.) In addition, under this proposal, related commercial paper on average during the finance bills would be part of the total obligations week ending May 16, 1973, and increased that subject to the 8 per cent marginal reserve require­ amount to $25 million by the week ending June ment. 13, the bank would be subject to an 8 per cent * * * reserve requirement on the additional $5 mil­ For purposes of computing the 8 per cent reserve lion—or a $400,000 reserve. Without this change requirement, a bank would compare its daily in the regulation, the reserve requirement on the average outstanding amount of finance bills, large additional $5 million would be 5 per cent—or CD’s, and bank-related commercial paper to the $250,000. daily-average amount outstanding on the base The base for computing the marginal reserve date—the week ending May 16, 1973, or to $10 requirement will remain the same for each indi­ million, whichever is larger. Under the present vidual bank—the week ending May 16, 1973, or regulation as amended, however, marginal reserve $10 million, whichever is greater—regardless of requirements will be based on the total amount the level of its CD and commercial paper holdings of large CD’s and bank-related commercial paper. in the future. The marginal reserve requirement on large time Under the lagged reserve system now in effect, deposits and covered commercial paper issued by a member bank is required to hold reserves during affiliates will apply to the excess of deposits over any given week based on the level of its deposits the base period beginning in the statement week 2 weeks earlier. Thus, a bank in this instance will starting June 7. These reserves will have to be be required to hold the 8 per cent marginal reserve held in the week starting June 21. during the week of June 21-27, based on the level The actions were taken against the background of its deposits during the week of June 7-13. It of an unusually strong expansion in bank credit, will hold the 8 per cent marginal reserve only to stimulated to a considerable extent by increased the extent that its aggregate total of large CD’s business spending for capital investment and in­ and bank-related commercial paper exceeds the ventory accumulation. The actions will help the total amount outstanding during the week ending present policy of monetary restraint to moderate May 16, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 377 Euro-dollar Reserve Requirement in goods would continue to be exempt from reserve requirements and eligible for discount by a Federal Last September 7, the Board proposed to reduce Reserve Bank. its marginal reserve requirement on certain foreign Under the proposal, the Board would treat the borrowings of U.S. banks, primarily Euro-dollars, sale of finance bills as equivalent to deposits sub­ from 20 per cent to 10 per cent and to eliminate ject to reserve requirements. At present, about the reserve-free bases available to banks subject $1.1 billion in such bills are outstanding. Under to this reserve requirement. A reserve requirement the.proposal, funds received by a bank would be on Euro-dollar transactions was first imposed in treated as a deposit if the member bank (1) makes 1969 to moderate short-term dollar flows between an acceptance that is not eligible for discount at the United States and other countries. a Federal Reserve Bank, (2) then sells the accep­ Reduction of this reserve requirement to 8 per tance, and (3) uses the proceeds in its banking cent will provide roughly parallel treatment at the business. present time—so far as reserve requirements are In a related matter, the Board said only accept­ concerned—among Euro-dollars, large CD’s, and ances eligible for discount at a Federal Reserve bank-related commercial paper. At some future Bank would be subject to limitations on amounts time, of course, it may be desirable to depart from outstanding set forth in Section 13 of the Federal such parallel treatment. Reserve Act. The Board also decided to phase out the re­ * * * serve-free bases available to banks subject to this marginal reserve requirement. Bases will be re­ The Board urged all banks to observe the spirit, duced by 10 per cent in each 4-week computation as well as the letter, of the Board’s actions in a period beginning with the period starting July 5. concerted effort to curb bank credit expansion and This schedule will result in elimination of the bases to moderate inflationary pressures. In this connec­ in the computation period beginning March 14, tion, a letter was sent to about 190 of the largest 1974. nonmember banks seeking their assistance and cooperation in ensuring the effectiveness of this Suspension of Large CD Ceilings program. The Board suspended interest rate ceilings on large CD’s maturing in 90 days or more, in order to CHANGES IN THE DISCOUNT RATE permit member commercial banks to maintain a The Board of Governors approved actions by the balanced structure of deposits. Ceilings previously directors of the Federal Reserve Banks of Phila­ had been suspended on CD’s issued for 30 to 89 delphia, Cleveland, Richmond, Atlanta, Min­ days, and had ranged from 63A per cent to IVi neapolis, Kansas City, and San Francisco increas­ per cent on longer-maturity deposits of $100,000 ing the discount rates of those banks from per and over. Because of recent advances in market cent to 53A per cent, effective April 23. A similar rates, the ceiling rates on longer-maturity depos­ increase was approved for the Federal Reserve its now practically preclude banks from using Banks of Chicago, St. Louis, and Dallas effective long-term CD’s, and the great bulk of large CD’s April 27, for the Federal Reserve Bank of Boston being issued mature in less than 90 days. Ceilings effective May 1, and for the Federal Reserve Bank on large CD’s with maturities of less than 90 days of New York effective May 4. At that time the were suspended in June of 1970. rate was 53A per cent at all Federal Reserve Interest rate ceilings will remain in place on all Banks. other types of bank deposits, including passbook In announcing the action, the Board took note accounts and consumer-type certificates of deposit of developments in the money markets that have (those of less than $100,000). occurred since the discount rate was raised to 5V2 per cent, effective on February 26. Proposed Amendment on Finance Bills The Board subsequently approved actions by the The proposed amendment would apply reserve directors of the Federal Reserve Banks of Boston, requirements against funds obtained by the bank New York, Philadelphia, Cleveland, Richmond, for use in its banking business through sale of bank Atlanta, Chicago, St. Louis, Minneapolis, Dallas, acceptances that are not eligible for discount at and San Francisco increasing the discount rate of a Federal Reserve Bank. The traditional type of those banks from 53A per cent to 6 per cent, bank acceptances that apply to specific transactions effective May 11. A similar increase was approved Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 FEDERAL RESERVE BULLETIN □ MAY 1973 for the Federal Reserve Bank of Kansas City, when he sold them to the next purchasing effective May 18, at which time the rate was 6 NBFI. per cent at all Reserve Banks. Brokers sometimes do, and sometimes do not, The action was in recognition of increases that pay the Interest Equalization Tax (IET) when they had already taken place in other short-term inter­ acquire such securities directly from a foreigner. est rates and is intended to bring the discount rate Payment by a broker of the IET (which would into better alignment with short-term rates gener­ ordinarily entitle him to obtain a validation certifi­ ally. cate of prior American ownership or would other­ The discount rate is the rate charged member wise entitle him to issue a brokerage confirmation banks for borrowings from their district Federal of prior American ownership—he being the “prior Reserve Banks. American owner” in either case) is not sufficient to establish an exemption from VFCR restraint for VOLUNTARY FOREIGN CREDIT RESTRAINT the benefit of the NBFI who purchases the securi­ PROGRAM—INTERPRETATIONS ties from the broker. As the Guidelines state: “Securities acquired from a broker who purchases The following are summaries of the recent inter­ them from a foreigner in anticipation of early pretations of the Voluntary Foreign Credit Re­ resale are not deemed to be acquisitions from a straint (VFCR) Guidelines that have been issued, prior American investor.” If the purchasing NBFI under authority delegated to Governor Andrew F. wishes the exemption, he has the responsibility Brimmer, to the Federal Reserve Banks. (For text for ascertaining whether the broker charged the of Guidelines, see the Bulletins for November securities against his VFCR ceiling and thereupon 1971, pp. 906-16; for March 1972, p. 321; for reduced his ceiling when selling those securities November 1972, p. 995-96; and for December to that NBFI. In the absence of firm knowledge 1972, p. 1037.) A consolidated text of the Guide­ that the broker handled the transaction in that lines as amended is available from Federal Reserve manner, the purchasing NBFI should assume that Banks and from the Board. the broker was not the “prior American owner” for purposes of the exemption provision of the Nonbank Financial Institutions’ Acquisition of Certain Guidelines. Foreign Equities from American Investors An American Depositary Receipt (section III- Guideline provision D-6) is evidence of the physical retention abroad Equity securities (including those represented by of a foreign security. An ADR should not be American Depositary Receipts (ADR)) of foreign confused with a certificate indicating prior Ameri­ corporations established in developed countries can ownership of a foreign security. other than Canada are generally subject to restraint (section III-D-6). Independent Financial REITs and Other Independent As an exception, restraint does not apply if such Nonbank Financial Institutions Managed by Banks or securities were acquired after September 30, 1965, Bank Holding Companies in U.S. markets from American investors (section III-E-5). Guideline provision Real estate investment trusts (REIT’s) that are Interpretation financial in character, and other nonbank financial Where a nonbank financial institution (NBFI) pur­ institutions (NBFI’s), and that are not subsidiaries chases such equity securities after September 30, of banks or of bank holding companies are subject 1965, from an American broker, the purchasing to the NBFI part of the VFCR Guidelines (section NBFI may treat them as exempt from its own III-A). ceiling only if: (1) the broker had acquired them directly Interpretation from a foreigner; had taken them under Questions have been asked as to the applicability his VFCR ceiling; and had reduced his of the Guidelines to U.S. financial institutions that ceiling when he resold those securities, are not subsidiaries of banks or of bank holding or companies but that are advised or managed by (2) the broker had acquired them from an­ banks or by subsidiaries of bank holding com­ other American investor; had not taken panies. The typical case has been that of an REIT them under his (the broker’s) VFCR ceil­ that is not owned substantially or at all by a bank ing; and did not reduce his VFCR ceiling or bank holding company but that is advised or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 379 managed by a subsidiary of a bank holding com­ A credit of 3 years’ maturity to finance the sale pany. of U.S. wheat to a foreigner may be considered A financial institution that is unrelated to a bank, an export credit. to a bank holding company, or to a bank holding A credit of 5 years’ maturity to finance the sale company subsidiary other than through a manage­ of U.S. wheat abroad would substantially exceed ment or advisory arrangement should be treated the customary term and, therefore, should not be as an NBFI for the purposes of the Guidelines. treated as an export credit. Also, it would not be (Conversely, bank holding company subsidiaries, consistent with the Guideline exemption for the as defined in the Bank Holding Company Act of lending bank or NBFI to divide the credit into two 1956, as amended, are to be treated under the bank credits for 3 years and for 2 ensuing years with part of the Guidelines in accordance with II-D-1 a view to treating the early maturity of the over-all and 3b.) credit as an export credit. Such an independent NBFI would either already Credits of between 15 and 17 years to finance have a VFCR ceiling (section III-C) or would be sales, or financial lease, abroad of large U.S.-made entitled to use the automatic minimum ceiling of jet aircraft (McDonnell-Douglas DC-9’s and DC- $500,000 (III-J-2). In addition, such an NBFI may 10’s and Boeing 747’s) should be treated as export hold “covered” foreign assets in excess of $500,- credits. 000 to the extent it offsets those assets by out­ standing foreign borrowings (III-J-1), as inter­ FEDERAL OPEN MARKET COMMITTEE MINUTES preted in the Federal Reserve Bulletin, May 1972, pp. 509-10. The Federal Reserve has announced that minutes Such an NBFI may use, as the case may be, of discussions and actions at the meetings of the its regular ceiling or its automatic minimum ceiling Federal Open Market Committee during 1967 have for foreign lending and investment: (1) under­ been transferred to the National Archives. taken at its own initiative and not at the initiative, These minutes are contained in approximately or for the convenience, of a bank or bank holding 1,500 pages of typed material. Their transfer has company to which it is related through a manage­ been arranged on the understanding that the Na­ ment or advisory arrangement; (2) for which the tional Archives will make them available for NBFI assumed the principal burden of judging the inspection by interested persons under its usual creditworthiness of the borrower; and (3) bore rules and procedures. responsibility for the administrative details con­ Similar records for earlier years are already cerning the extension and the repayment of the available at the National Archives on the same credit. Conversely, the NBFI should refrain from basis; minutes of the Committee for 1936 through making any nonexport loans or investments, cov­ 1960 were transferred in 1964, those for 1961 were ered as well as uncovered, that appear to be transferred in 1967, those for 1962 through 1965 inconsistent with the U.S. balance of payments were transferred in 1970, and those for 1966 were program. Among other things, it should not ac­ transferred last year. The National Archives will quire noncovered credits—such as loans of over furnish complete microfilm copies of these earlier 10 years’ maturity to developing countries—that minutes for a fee, and will be prepared later to substitute directly for loans that commercial banks furnish similar copies of the 1967 minutes. would have made in the absence of the Guidelines Copies of the minutes for 1967 also will be as they apply to those banks (III-B-5). made available later for public inspection at the Board’s offices in Washington and at each Federal Export Credit—Customary Maturity Reserve Bank and Branch, the same procedure Guideline provision followed with respect to earlier records. Mean­ “A credit that is of substantially longer maturity while, a work copy is available for inspection at than is customary in international export financing the Board’s offices, and another at the Federal practice for the type of transaction in question Reserve Bank of New York. should not be regarded as an export credit” (sec­ Release of the minutes from 1962 on has pre­ tion IV-3-last paragraph). sented special problems involving international Interpretation financial relationships, an area in which Federal The following interpretations were based on infor­ Reserve activity has increased considerably in re­ mation concerning practices prevailing at the time cent years. As in the case of the 1962--66 minutes, (early 1973). a number of passages have been deleted from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 FEDERAL RESERVE BULLETIN □ MAY 1973 1967 minutes, with a footnote in each case indi­ accompanied by checks made payable to the cating the general nature or subject of the deleted Board. Copies of individual reports of State matter. member banks may be obtained by writing to the Board of Governors of the Federal Reserve System BANKING DATA ON REPORTS OF CONDITION AND or to the appropriate Federal Reserve Bank. INCOME Requests for individual reports of national banks should be addressed to the Comptroller of On April 20, 1973, the Board of Governors an­ the Currency, Treasury Department, Washington, nounced availability to the public of data reported D.C. 20220; those for insured nonmember banks quarterly by individual banks to Federal banking should be addressed to the Federal Deposit Insur­ agencies in their official Reports of Condition and ance Corporation, Washington, D.C. 20429. annually in their Income and Dividends report, beginning with data for December 1972. Pre­ CHANGES IN OTC MARGIN STOCKS viously, only data from the face of the Report of Condition had been available. Data now include The Board of Governors has announced several both the face of the Report of Condition and changes, effective April 23, 1973, in its “List of supporting schedules for loans, cash assets, and OTC Margin Stocks” that was issued in revised demand and time deposits, as well as all data on form on May 15, 1972. The list was subsequently the Income and Dividends report. amended on July 3, 1972, and November 2, 1972. The Board will furnish upon request magnetic Changes are available in mimeographed form from tapes, including documentation of the data. The Publications Services, Division of Administrative 9-track, 800-BPI tapes identify by name, location, Services, Board of Governors of the Federal Re­ and supervisory charter-class all commercial banks serve System, Washington, D.C. 20551. in the United States that are insured by the Federal Deposit Insurance Corporation. PUBLICATION OF ANNUAL REPORT The prices for these tapes of data are as follows: The Fifty-Ninth Annual Report of the Board of Governors of the Federal Reserve System, cover­ Reports of Condition ing operations for the calendar year 1972, is 1. Face of Report of Condition, semiannual available for distribution. Copies may be obtained dates from June 1960 to June 1972. upon request to Publications Services, Division of June 1960-June 1971 (a set) ............. $150.00 Administrative Services, Board of Governors of Dec. 1971 (one tape) ................ 50.00 the Federal Reserve System, Washington, D.C. June 1972 (one tape) ................ 50.00 20551. 2. Face and back of Report of Condition with detailed schedules for December 1972 and quar­ ADMISSION OF STATE BANKS TO MEMBERSHIP IN terly thereafter—$50.00 per tape for each date. THE FEDERAL RESERVE SYSTEM Reports of Income and Dividends The following banks were admitted to membership December 1972 and annually thereafter— in the Federal Reserve System during the period $50.00 per tape for each date. April 16, 1973, through May 15, 1973: The Board also will make available individual Florida copies of original reports for specified State Tampa...............................Interbay Citizens Bank member banks at 10 cents per standard page, plus a fee of $5.00 an hour for locating the requested Virginia reports. Baileys Crossroads ... Hamilton Bank and Requests for tapes should be made in writing Trust Company to the Board of Governors of the Federal Reserve Stafford.............................Aquia Bank and Trust System, Washington, D.C. 20551, and should be Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication May 15 Industrial production advanced strongly in April, EMPLOYMENT nonfarm employment rose further, and the unem­ Nonfarm payroll employment rose further in April, ployment rate was unchanged. Retail sales de­ with large gains reported in manufacturing and clined. The wholesale price index again increased State and local government employment. The fac­ substantially. Commercial bank credit, the money tory workweek increased by 0.2 hour, and at 41.1 stock, and time and savings deposits rose. Be­ hours was at its highest level since the end of 1966. tween mid-April and mid-May, yields on U.S. The unemployment rate was unchanged at 5.0 per Government notes and bonds rose, while corporate cent as the civilian labor force and total employ­ and municipal yields declined somewhat. ment showed little change. INDUSTRIAL PRODUCTION RETAIL SALES Industrial production increased 1.0 per cent further The value of retail sales declined 1.5 per cent in in April following an 0.6 per cent rise in March. April following a sharp rise in March and was At 123.0 per cent of the 1967 average, the April 14 per cent above a year earlier, according to the index was 9.0 per cent above a year earlier. advance report. WHOLESALE AND CONSUMER PRICES The wholesale price index, after seasonal adjust­ ment, rose 1.0 per cent between March and April largely as a result of widespread increases in prices of industrial commodities. The index of industrial commodities increased 1.3 per cent, but the index of farm and food products rose only 0.1 per cent. The consumer price index rose 0.8 per cent, seasonally adjusted, in March as food prices climbed for the third successive month. Prices of other commodities and of services were up 0.3 per cent. AGRICULTURE F.R. indexes, seasonally adjusted. Latest figures: April. Heavy rains have delayed the planting of cotton, corn, and soybeans, but substantial portions of The gains in output were widespread and rather spring wheat and other small grains are in the evenly distributed among consumer goods, busi­ ground. Flooding in the Mississippi Delta and ness equipment, and materials. Production of fur­ soggy bottom lands elsewhere have caused some niture, room air conditioners, some household shifts in cropping plans from cotton -and corn to appliances, and nondurable consumer goods rose soybeans. further in April. Output of television sets was Prices received by farmers fell 1.5 per cent maintained at advanced levels. Auto assemblies during the month ending April 15, the first monthly were at an annual rate of 9.9 million units com­ decline in a year, mainly because of lower live­ pared with a 10.1 million rate in March. May stock prices. schedules are at about the March-April level. Gains in production of business equipment contin­ BANK CREDIT, DEPOSITS, AND RESERVES ued large and were widespread. Output of steel and most other durable and nondurable industrial Commercial bank credit, after adjustment for materials increased further. transfers of loans between banks and their affili­ 381 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 FEDERAL RESERVE BULLETIN □ MAY 1973 ates, rose at an annual rate of about 6 per cent million over the 4 weeks ended April 25, some­ in April in contrast with the very rapid 20 per what below the $1,660 million average in March. cent rate of the first quarter. Growth in business Member bank borrowings declined and excess loan demands moderated but still remained strong. reserves rose. Real estate and consumer loans continued to in­ crease at a substantial pace but most other loan SECURITIES MARKETS categories were somewhat weaker in April than Treasury bill rates were about unchanged on bal­ in other recent months. Holdings of U.S. Treasury ance between mid-April and mid-May, with the securities were unchanged and banks reduced their increases occurring in the longer maturities. The holdings of other securities. 3-month bill was bid at around 6.15 per cent in The narrowly defined money stock increased at the middle of May, about unchanged from a month an annual rate of 8 per cent in April, or consid­ earlier. Yields on U.S. Government notes and erably faster than in the first quarter. Time and bonds rose by some 10 to 25 basis points over savings deposits other than large negotiable CD’s the same period. remained moderately strong increasing at an an­ Yields on new and recently offered debt securi­ nual rate of about 9 per cent, little different from ties declined steadily from mid-April to mid-May, the first quarter pace. Net sales of negotiable CD’s and yields on long-term municipal bonds declined continued large in April but below the record on balance. levels of February and March. Common stock prices declined on balance on Net borrowed reserves averaged about $1,420 moderate volume over the same period. PRICES INTEREST RATES Wholesale 1967=100 Consumer PER CENT - j ~130- . - ALL ITEMS^/^ _120 - ALL COMMODITIES. 110 - ' s' 100 1 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, March; Wholesale, April. years or more and for 90-day Treasury bills. Latest figures: week ending May 12. 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 7 Federal funds—Major reserve city banks A 8 Reserve Bank interest rates A 9 Reserve requirements A 10 Maximum interest rates; margin requirements A 11 Open market account A 12 Federal Reserve Banks A 14 Bank debits A 15 U.S. currency A 16 Money stock A 17 Bank reserves; bank credit A 18 Commercial banks, by classes A 24 Weekly reporting banks A 29 Business loans of banks A 30 Demand deposit ownership A 31 Loan sales by banks A 31 Open market paper A 32 Interest rates A 35 Security markets A 36 Stock market credit A 37 Savings institutions A 39 Federally sponsored credit agencies A 40 Federal finance A 42 U.S. Government securities A 45 Security issues A 48 Business finance A 49 Real estate credit A 54 Consumer credit Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 U.S. STATISTICS—Continued A 58 Industrial production A 62 Business activity A 62 Construction A 64 Labor force, employment, and earnings A 66 Consumer prices A 66 Wholesale prices A 68 National product and income A 70 Flow of funds INTERNATIONAL STATISTICS: A 72 U.S. balance of payments A 73 Foreign trade A 74 U.S. gold transactions A 75 U.S. reserve assets; position in the IMF A 76 International capital transactions of the United States A 91 Foreign exchange rates A 92 Central bank rates A 93 Open market rates; arbitrage on Treasury bills A 94 Gold reserves of central banks and governments A 95 Gold production TABLES PUBLISHED PERIODICALLY: Insured commercial banks, 1972: A 96 Income, expenses, and dividends Member banks, 1972: Income, expenses, and dividends: A 96 By class of bank A 98 By Federal Reserve district A 104 By size of bank A 106 Income ratios, by class of bank and Federal Reserve district A 120 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities S Sources of funds I, II, U Uses of funds III, IV Quarters * 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 Banks and branches, number, Banking offices: by class and State ....................... Apr. 1973 A-96—A-97 Analysis of changes in number Mar. 1973 A-98 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 Flows: Annually 1965-71 data ............................ Nov. 1972 A-72—A-73.9 Bank holding companies: Income and expenses: List, Dec. 31, 1971 ................... June 1972 A-98 Federal Reserve Banks .............. Feb. 1973 A-98—A-99 Banking offices and deposits of Insured commercial banks ........ May 1973 A-96—A-97 group banks, Dec. 31, 1971 .. Aug. 1972 A-101 Member banks: Calendar year .......................... May 1973 A-96—A-105 Banking and monetary statistics: Income ratios .......................... May 1973 A-106—A- 111 1971 Mar. 1972 A-98—A-110 Operating ratios ...................... July 1972 A-102—A-107 July 1972 A-98—A-101 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 □ MAY 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 Bought u r H e n p e d u l e d r 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 r c r t a c i i g f w o i h u c i t n a n s t g t e r s e c o ta n u u n c r t d y ­ ­ ­ Total out­ chase ing right agree­ ment Averages of daily figures 1939_Dec............................. 2,510 2,510 8 83 2,612 17,518 2,956 1941 _Dec............................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec............................. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec............................. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 I960—Dec............................. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 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—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 1973—Jan.............................. 72,194 71,711 483 1,165 3,267 1,329 78,063 10,410 400 8,321 Feb............................. 72,307 72,082 225 1,593 2,556 1,004 77,600 10,410 400 8,353 Mar............................. 74,019 73,624 395 1,858 2,387 839 79,219 10,410 400 8,406 Apr.p.......................... 75,353 74,914 439 1,721 2,328 1,043 80,551 10,410 400 8,444 Week ending— 1973—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 1,672 2,783 662 77,931 10,410 400 8,352 28...................... 72,629 72,457 172 1,482 2,683 694 77,611 10,410 400 8,371 Mar. 7...................... 73,415 73,183 232 1,688 2,595 749 78,565 10,410 400 8,387 14...................... 73,710 73,339 371 1,491 2,809 790 78,916 10,410 400 8,402 21...................... 74,083 73,783 300 2,139 2,598 876 79,816 10,410 400 8,408 28...................... 74,258 73,889 369 2,013 1,787 908 79,064 10,410 400 8,420 Apr. 4...................... 75,223 74,404 819 1,754 1,860 938 79,908 10,410 400 8,427 11...................... 74,700 74,586 114 1,502 2,352 968 79,602 10,410 400 8,437 18^.................... 75,420 74,866 554 1,848 2,329 1,025 80,728 10,410 400 8,444 25 p.................... 75,654 74,907 747 1,646 2,863 1,139 81,438 10,410 400 8,448 End of month 1973—Feb............................. 73,947 6 73,286 661 1,564 2,795 735 79,274 10,410 400 8,378 Mar............................. 75,650 6 74,381 1,269 2,048 1,845 915 80,623 10,410 400 8,420 Apr.p.......................... 76,785 6 75,895 890 1,709 1,232 1,128 80,990 10,410 400 8,462 Wednesday 1973_Feb. 7 .................... 70,399 6,7 70,399 967 3,265 1,304 76,016 10,410 400 8,347 14...................... 72,519 6 71,884 635 2,766 2,423 1,397 79,335 10,410 400 8,347 21...................... 72,116 6,7 71,928 188 391 2,882 671 76,239 10,410 400 8,355 28...................... 73,947 6 73,286 661 1,564 2,795 735 79,274 10,410 400 8,378 Mar. 7...................... 72,086 6,7 72,086 1,132 3,542 794 77,632 10,410 400 8,390 14...................... 74,257 6 73,559 698 1,823 3,282 878 80,406 10,410 400 8,407 21...................... 73,103 6,7 73,103 2,984 2,742 901 79,805 10,410 400 8,412 28...................... 75,193 6 74,050 1,143 2,028 2,122 949 80,436 10,410 400 8,422 Apr. 4?................... 74,493 6 74,493 1,082 3,268 949 79,867 10,410 400 8,436 Up.................... 74,350 6,774.350 1,241 2,943 1,010 79,619 10,410 400 8,440 18*>.................... 76,953 6 75,033 1,920 3,159 3,182 1,088 84,547 10,410 400 8,445 25^.................... 75,393 6,774,714 679 1,521 2,794 1,134 80,955 10,410 400 8,453 1 Includes Federal agency issues held under repurchase agreements as 4 Includes industrial loans and acceptances until Aug. 21, 1959, when of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, industrial loan program was discontinued. For holdings of acceptances 1971. 2 Beginning with 1960 reflects a minor change in concept; see on Wed. and end-of-month dates, see tables on F.R. Banks on following Feb. 1961 Bulletin, p. 164. pages. See also note 2. 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. liabilities and capital” are shown separately; formerly, they were Notes continued on opposite page. netted together and reported as “Other F.R. accounts.*’ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 o i 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 O a F i a l p l t . i n i h a R t i d i t ­ e e . a r s l B F W a . n R it k h . s re c r C s e a o e n n u i r n c d v r * y ­ es Totals 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. 33,019 522 250 495 1,029 16,688 2,595 19.283 .1960—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. 60,717 405 1,688 200 615 2,313 27,144 5,421 32,565 .1972--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 5,813 131,774 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 25,432 6,031 31,742 ...........Feb. 65,072 384 3,598 338 666 2,530 25,848 5,856 31,973 ...........Mar. 66,068 414 3,471 275 666 2,622 26,290 5,822 32.284 ...........Apr.? Week ending— 64,277 378 3,018 277 639 2,598 25,175 6,380 31,834 .1973—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 26,107 5,656 32,042 21 64,565 389 3,071 372 671 2,506 25,219 5,788 31,286 28 64,683 385 177 343 692 2,609 25,873 5,906 32,058 .Mar. 7 65,157 376 129 335 670 2,405 25,057 6,219 31,555 ..........14 65,250 380 731 365 650 2,499 26,158 5,525 31,962 ..........21 65,130 388 625 304 643 2,559 25,645 5,747 31,671 .........28 65,381 409 3,117 318 672 2,662 26,586 5.861 32,619 .Apr. 4 65,906 413 3,438 279 649 2,639 25,527 6,060 31,759 .........11 66,335 413 3,104 272 687 2,529 26,643 5,814 32,629 .........18* 66,296 416 3,641 258 663 2,624 26,799 5,481 32,452 ..........25p End of month 64,696 379 2,073 455 633 2,574 27,653 5,788 33,720 .1973—Feb. 65,180 407 2,881 327 696 2,648 27,713 5,865 33,750 ...........Mar. 66,091 424 4,163 328 773 2,753 25,730 5,949 31,851 ............Apr.p Wednesday 64,612 385 3,253 245 651 2,612 23,415 6,380 30,074 .1973—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 23,365 5,656 29,300 .....................21 64,696 379 2,073 455 633 2.574 27,653 5,788 33,720 .....................28 65,093 381 3,799 296 635 2,615 24,013 5,906 30,198 .Mar. 7 65,409 378 4,321 311 665 2,442 26,098 6,219 32,596 .........14 65,318 394 4,424 287 633 2,493 25,479 5,525 31,283 ...........21 65,354 396 3,382 359 709 2,596 26,873 5,747 32,899 .........28 65,832 421 3,596 271 636 2,691 25,665 5,861 31,698 . Apr. 4 p 66,348 414 3,533 267 703 2,453 25,152 6,060 31,384 ..........11 p 66,519 421 2,787 263 658 2.574 30,580 5,814 36,566 .........18 p 66,339 424 3,696 240 682 2,632 26,205 5,481 31,858 .........25p 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 8 Beginning with week ending Nov. 15, 1972, includes $450 million of thereafter. Beginning with Jan. 1963, figures are estimated except for reserve deficiencies on which F.R. Banks are allowed to waive penalties weekly averages. Beginning Sept. 12, 1968, amount is based on close- for a transition period in connection with bank adaptation to Regulation J of-business figures for reserve period 2 weeks previous to report date. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies ® Includes securities loaned—fully secured by U.S. Govt, securities included are (beginning with first statement week of quarter): Ql, $279 pledged with F.R. Banks. 7 Reflects securities sold, and scheduled to million; Q2, $172 million. be bought back, under matched sale/purchase transactions. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ MAY 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All other banks Period Reserves Borrowings New York City City of Chicago Other Total Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess Borrow­ held1 quired sonal ings ings ings ings 1939—Dec............ 11,473 6,462 5,011 3 2,611 540 1,188 671 1941—Dec............ 12,812 9,422 3,390 5 989 295 1 303 1 804 1945—Dec............ 16,027 14.536 1,491 334 48 192 14 418 96 1,011 1950—Dec............ 17,391 16,364 1,027 142 125 58 8 5 232 50 663 1960—Dec............ 19.283 18,527 756 87 29 19 4 8 100 20 623 1965—Dec............ 22,719 22,267 452 454 41 111 15 23 67 228 330 1967—De c 25,260 24,915 345 238 18 40 8 13 50 105 267 1968—De c 27,221 26,766 455 765 100 230 15 85 90 270 250 1969—De c 28,031 27,774 257 1,086 56 259 18 27 6 479 177 1970—De c 29,265 28,993 272 321 34 25 7 4 42 264 189 1971—De c 31,329 31,164 165 107 25 35 1 8 -35 22 174 1972—Ap r 32,565 32,429 136 109 -2 48 6 5 16 22 116 May.......... 32,812 32,708 104 119 14 50 9 12 -24 31 105 June.......... 32,539 32,335 204 94 34 6 -1 7 40 164 July........... 33,021 32,874 147 202 32 15 8 6 -41 64 148 Aug........... 33,148 32,893 255 438 6 116 10 11 72 134 167 Sept........... 33,003 32,841 162 514 29 136 -1 12 -2 195 136 Oct............. 33,803 33,556 247 574 61 59 22 45 24 240 140 Nov........... 31,774 31,460 314 606 4 64 -14 19 -1 248 -5 Dec............ 31,353 31,134 219 1,049 -20 301 13 55 -42 429 -160 1973—Ja...............n 32,962 32,620 342 1,165 95 193 2 108 -33 578 -1 Feb............ 31,742 31.537 205 1,593 -13 324 105 -33 693 -28 Mar........... 31,973 31,678 295 1,858 72 176 -6 102 7 857 -47 Apr.p 32.284 32,128 156 1,721 26 146 5 9 -95 829 48 Week ending— 1972—Apr. 5.. 32.604 32,230 374 141 58 86 49 86 181 12.. 32,345 32,179 166 14 10 -36 35 157 19.. 32,565 32.624 -59 43 -108 23 9 -87 8 127 26.. 32,666 32,448 218 279 89 124 -15 23 38 86 106 Oct. 4.. 33,731 33,501 230 436 47 47 26 39 1 125 156 11.. 33,710 33,352 358 535 12 36 23 77 141 229 182 18.. 34,098 33,977 121 434 17 -31 17 -36 233 171 25.. 33.555 33,405 150 765 -39 185 25 62 68 272 96 Nov. 1.. 33,704 33,499 205 555 38 2 -15 7 19 261 163 8.. 33,694 33,570 124 959 -32 192 20 31 -40 447 176 15.. 32,132 31,346 786 494 196 -11 11 91 192 60 22.. 30,539 30,350 189 419 -18 1 26 15 -87 136 -182 29.. 30,728 30,388 340 572 26 80 -30 23 -6 226 -100 Dec. 6. 31.009 30,673 336 589 21 43 33 75 -42 118 -126 13.. 31,068 30,824 244 805 24 206 -24 13 -34 300 -172 20. 31,408 31,202 206 1,221 17 422 34 21 -80 514 -215 27.. 31,441 31,252 189 1,118 -37 278 1 -81 654 -144 1973—Jan. 3. 32.604 32,044 560 1,751 149 713 10 279 83 525 39 10. 32,506 32,380 126 688 -21 66 -10 19 -107 420 -15 17. 34.009 33,668 341 1,298 46 201 17 189 -24 635 23 24. 32,511 32,545 -34 1,097 -82 260 -26 19 -165 511 -40 31. 32.556 32,103 453 1,309 204 15 110 -10 806 -35 Feb. 7. 31,834 31,687 147 1,232 -78 221 -7 16 -23 584 -24 14. 31,813 31.625 188 1,991 -1 709 17 178 -75 664 -32 21. 32,042 31,537 505 1,672 156 155 11 104 47 928 12 28. 31,286 31,300 -14 1,482 -128 211 -21 121 - 4 599 -70 Mar. 7. 32,058 31,717 341 1,688 92 242 43 99 -58 695 -15 14. 31,555 31,532 23 1,491 -48 178 -25 113 -112 623 -71 21. 31,962 31,713 249 2,139 56 225 3 104 -3 1,077 -86 28. 31,671 31,578 93 2,013 -46 28 1 130 -66 951 -75 Apr. 4. 32,619 32,082 537 1,754 169 144 18 8 99 865 79 11. 31,759 31,845 -86 1,502 -184 24 -14 13 -90 775 30 18^ 32,629 32,397 232 1,848 145 306 -1 l -74 843 -10 25v 32,452 32,064 388 1,646 35 45 13 18 46 796 122 1 Beginning with week ending Nov. 15, 1972, includes $450 million of parallel the previous “reserve city” and “country” categories, respectively reserve deficiencies on which F.R. Banks are allowed to waive penalties (hence the series are continuous over time). for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies Note.—Averages of daily figures. Monthly data are averages of daily included are (beginning with first statement week of quarter): Ql, $279 figures within the calendar month; they are not averages of the 4 or 5 million; Q2, $172 million. . weeks ending on Wed. that fall within the month. Beginning with Jan. 2 Beginning Nov. 9, 1972, designation of banks as reserve city banks 1964 reserves are estimated except for weekly averages. for reserve-requirement purposes has been based on size of bank (net Borrowings at F.R. Banks: Based on closing figures. demand deposits of more than $400 million), as described in the Bulletin Effective Apr. 19, 1973, the Board’s Regulation A, which governs lend­ for July 1972, p. 626. Categories shown here as “large” and “all other” ing by Federal Reserve Banks, was revised to assist smaller member banks to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks week a e n n d ding— s E e x r r v c e e e ­ s ss 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N a d t n n e e e d r r t k s a ­ l S d u e r o f p i r c lu it s r P r e e e q a s r o u e v c r i g f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w n a s l s a ­ y 2 b c o b P u h a f y a u n n s i r k n e e ­ s s g t s b o S e a f l a n l l n i e k n e s g s t d L ea o t l o a e n rs s 3 de f r B i a r o n o l o w g e m r s r ­ ­ s4 lo N a e n t s trans. Total—46 banks 1973—Mar. 7......... 104 614 9,485 -9,995 71.7 14,915 5,431 4,082 10,833 1,349 1,978 382 1,596 14......... 127 494 10,465 -10,835 78.4 16,613 6,147 4,164 12,449 1,983 1,828 613 1,216 21......... 115 900 10,609 -10,794 77.4 15,782 5,772 4,095 11,687 1,677 1,729 330 1,400 28......... 2 595 8,738 -9,331 67.9 15,153 6,416 4,202 10,951 2,214 1,495 468 1,027 Apr. 4......... 250 554 9,206 -9,510 67.2 15,528 6,322 4,412 11,116 1,910 1,509 402 1,107 11......... -34 448 10,839 -11,320 80.6 15,699 4,860 3,829 11,870 1,032 1,534 243 1,291 18......... 87 738 10,146 -10,797 75.1 15,252 5,106 3,730 11,522 1,376 1,482 371 1,111 25......... 226 389 9,137 -9,300 66.6 14,695 5,558 4,679 10,016 878 1,663 433 1,230 8 in New York City 1973—Mar. 7......... 41 193 3,608 -3,760 66.5 4,507 899 817 3,690 82 1,226 255 971 14......... 117 171 4,828 -4,883 86.6 5,494 666 550 4,944 116 1,113 236 877 21......... 40 208 4,551 -4,719 82.5 5,338 786 653 4,684 133 924 217 706 28......... -2 4,059 -4,062 73.7 5,103 1,044 748 4,355 296 805 201 605 Apr. 4......... 135 100 3,612 -3,577 62.4 4,798 1,186 893 3,904 292 939 224 715 11......... -83 4,144 -4,227 74.6 4,773 628 599 4,174 30 995 145 850 18......... 83 293 3,911 -4,121 70.8 4,593 682 593 4,000 89 1,016 226 790 25......... 134 21 2,504 -2,392 42.6 4,001 1,497 1,391 2,611 106 892 268 624 38 outside New York City 1973—Mar. 7......... 63 422 5,877 -6,235 75.3 10,408 4,532 3,266 7,143 1,266 752 127 625 14......... 10 322 5,637 -5,950 72.8 11,119 5,482 3,614 7,504 1,867 715 377 338 21......... 75 692 5,458 -6,075 73.9 10,444 4,986 3,442 7,002 1,544 806 112 694 28......... 4 595 4,679 -5,269 64.1 10,050 5,372 3,454 6,596 1,918 690 267 423 Apr. 4......... 114 454 5,594 -5,933 70.4 10,730 5,136 3,519 7,211 1,618 570 178 392 11......... 49 448 6,694 -7,093 84.7 10,926 4,232 3,230 7,696 1,002 539 98 441 18......... 4 445 6,235 -6,676 78.1 10,659 4,424 3,137 7,522 1,287 466 146 321 25......... 92 368 6,632 -6,908 82.7 10,694 4,061 3,289 7,405 772 771 165 607 5 in City of Chicago 1973—Mar. 7......... 16 86 2,145 2,214 153.9 2,807 662 660 2,146 1 373 373 14......... 3 102 2,327 -2,426 168.9 3,004 677 674 2,330 2 408 30 377 21......... 6 86 2,014 -2,093 145.9 2,724 710 666 2,058 44 378 30 348 28......... -3 114 1,873 -1,990 140.3 2,485 612 613 1,873 380 30 350 Apr. 4......... 14 2,335 -2,321 156.9 2,856 521 512 2,343 9 304 26 278 11......... -6 2,467 -2,473 169.4 3,093 626 610 2,483 16 250 14 236 18......... 8 2 2,258 -2,252 150.7 3,001 743 734 2,267 9 243 19 224 25......... 19 2,141 -2,122 149.7 2,876 735 722 2,154 13 238 35 203 33 others 1973—Mar. 7......... 47 336 . 3,732 -4,021 58.7 7,602 3,870 2,605 4,996 1,265 379 127 252 14......... 7 220 3,310 -3,523 52.3 8,114 4,805 2,940 5,174 1,865 307 346 -39 21......... 69 607 3,444 -3,982 58.6 7,720 4,276 2,775 4,945 1,500 428 82 346 28......... 7 481 2,806 -3,279 48.2 7,565 4,759 2,842 4,723 1,918 310 237 73 Apr. 4......... 101 454 3,259 -3,612 52.0 7,875 4,615 3,006 4,868 1,609 266 153 113 11......... 55 448 4,228 -4,621 66.8 7,833 3,606 2,620 5,213 986 290 84 206 18......... -4 443 3,977 -4,424 62.7 7,658 3,681 2,403 5,255 1,278 224 127 97 25......... 73 368 4,491 -4,786 69.0 7,818 3,327 2,567 5,251 759 533 130 403 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

A 8 F.R. BANK INTEREST RATES a MAY 1973 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 A R p a 1 r 9 te . 7 3 3 o 0 n , Ef d fe a c t t e ive Pr r e a v t i e ous A R p a 1 r t 9 e . 7 3 3 o 0 n • , Ef d fe a c t t e ive Pr r e a v t i e ous A R p a 1 r t 9 e . 7 3 3 o 0 n , Ef d fe a c t t e ive Pr r e a v t io e us Boston.............................................. 5% Feb. 28, 1973 5 6 Feb. 28, 1973 51/2 47i/2 Feb. 28, 1973 7 New York........................................ 5V4 Feb. 26, 1973 5 6 Feb. 26, 1973 51/2 71/2 Feb. 26, 1973 7 Philadelphia.................................... 5V4 Apr. 23, 1973 51/2 6V4 Apr. 23, 1973 6 m Apr. 23, 1973 71/2 Cleveland......................................... 5V4 Apr. 23, 1973 5% 61/4 Apr. 23, 1973 6 7% Apr. 23, 1973 71/2 Richmond........................................ 5V4 Apr. 23, 1973 5% 6V4 Apr. 23, 1973 6 47V4 Apr. 23, 1973 71/2 Atlanta............................................ 5V4 Apr. 23, 1973 5% 6V4 Apr. 23, 1973 6 *1V4 Apr. 23, 1973 m Chicago............................................ 5% Apr. 27, 1973 5% 6V4 Apr. 27, 1973 6 Apr. 27, 1973 71/2 St. Louis......................................... 5V4 Apr. 27, 1973 5% 6V4 Apr. 27, 1973 6 47% Apr. 27, 1973 71/2 Minneapolis..................................... 5V4 Apr. 23, 1973 5% 6V4 Apr. 23, 1973 6 Apr. 23, 1973 71/2 Kansas City..................................... 5V4 Apr. 23, 1973 5Vz 6V4 Apr. 23, 1973 6 47% Apr. 23, 1973 71/2 Dallas............................................. 53/4 Apr. 27, 1973 5V2 6V4 Apr. 27, 1973 6 «7% Apr. 27, 1973 71/2 San Francisco.................................. 53A Apr. 23, 1973 5*4 6V4 Apr. 23, 1973 6 734 Apr. 23, 1973 71/2 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, a rate bankers’ acceptances and of agricultural paper may have maturities not of 5 y-i per cent was approved, for the Boston Reserve Bank, and a rate of over 6 months and 9 months, respectively. 5% per cent was approved, for the seven other Reserve Banks so desig­ 2 Advances secured to the satisfaction of the F.R. Bank. Maximum nated, on advances to nonmember banks, to be applicable in special maturity: 4 months. circumstances resulting from implementation of changes in Regulation J, 3 Advances to individuals, partnerships, or corporations other than which became effective on Nov. 9, 1972. See “Announcements” on p. 942 member banks secured by direct obligations of, or obligations fully of the Oct. 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. 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. IVz lVi 1959—Mar. 6.................... 21/2-3 3 1969—Apr. 4.................... 51/2-6 6 16.................... 3 3 8.................... 6 6 1955—Apr. 14.................... 11/2-13^ I1/2 May 29.................... 3 -31/2 31/2 A M u a g y . 1 2 5 4 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l 1 1V 1 3 / /4 2 i 4 y - - -2 2 4 1 V i 34 4 4 2 1 i 1 3 3 3 4 4 4 J S u ep n t e . 1 1 1 1 2 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31/ 4 3 2 1 - / 4 2 4 4 31/2 1970—Nov. 1 1 1 3 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 53 3 / 5 4 4 - 3 - 4 6 6 5 6 5 3 34 4 12.................... 2 -214 2 31/2-4 4 Dec. 1.................... 51/2-534 534 Sept. 9.................... 2 -2% 21/4 10.................... 31/2-4 31/2 4.................... 51/2-534 5i/i 13.................... 2Va 21/4 14.................... 31/2 31/2 11.................... 51/2 51/2 Nov. 18.................... 21/4-21/2 21/2 Aug. 12.................... 3 -31/2 3 23.................... 21/2 21/2 Sept. 9.................... 3 3 1971—Jan. 8.................... 514-51/2 514 1956— A A u p g r. . 2 2 3 1 0 4 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 3 3 / ^ ^ 3 2 - - - 3 3 3 2 2 3 3 3 3 4 4 1 1 9 9 6 6 3 4 — —N Ju o ly v . 2 2 1 4 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 31 - /2 3 /2 - 1 4 /2 4 3 3 1 1 / / 2 2 2 2 1 1 9 2 5 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 5 5 5 5 1 - - 5 5 4 1 1 4 4 5 5 5 5 1 1 4 4 30.................... 4 4 Feb. 13................... 434-5 5 1957—Aug. 9.................... 3 -31/2 3 19................... 434 434 N D o ec v . . 2 1 2 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 -3 /2 V4 3 3 3 1/2 1965—Dec. 1 6 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 - / 4 2 1/2 4 4 1 1 / /2 2 23................... 4 5 34-5 5 5 1967—Apr. 7.................... 4 -41/2 4 Nov. 11................... 434-5 5 1958—Jan. 22.................... 234-3 3 14.................... 4 4 19................... 43/4 434 Mar. 2 1 7 4 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 3 1 1 /4 4 4 - - - 2 3 3 34 2 2 2 3 1 1 / / 4 4 4 Nov. 2 2 0 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 - / 4 2 1/2 4 4 1 1/ / 2 2 Dec. 1 17 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 i/ / 2 2 - - 4 4 3 3 / 4 4 4 41 3 / 4 2 21.................... 214 21/4 1968—Mar. 15.................... 41/2-5 41/2 24................... 41/2 41/2 A S A M e p u a p r g y t . . . 2 1 1 1 9 8 3 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l l l 3 3 3 / 4 4 4 2 l - - - 34 2 2 2i/4 2 2 1 1 1 3 3 3 4 4 4 A A p u r g . . 2 2 1 1 3 2 6 9 6 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 14 5 5 5 1 - - 1 5 5 / 4 2 1 1/ / 2 2 5 5 5 5 5 1 1 1 1 / / / / 2 4 2 2 1973—J M F A a e p a n b r r . . . . 2 2 1 2 6 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1/ 5 5 2 1 - - / 5 5 2 1 3 / 4 2 5 5 5 5 1 1 % / / 2 2 O No ct v . . 2 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 - i/ 2 2 1/2 2 2 1/2 Dec. 2 1 0 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 5 4 1 - / 5 2 1/2 5 5 1 1 / / 2 2 In effect Apr. 30, 1973 .... 51/2-534 51/2 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

MAY 1973 □ RESERVE REQUIREMENTS A 9 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 6I6I/2 171/2 73 73 75 Jan. 1, 1963............ 16^/2 12 4 Nov. 16 13 1966—July 14, 21 ... 4 4 5 In effect Sept. 8, 15... 6 Apr. 30, 1973. .. 8 10 12 13 17i/2 3 3 5 1967—Mar. 2........... 31/2 31/2 Mar. 16........... 3 3 1968—Jan. 11, 18... 16y2 17 12 121/2 1969—Apr. 17........... 17 171,1 121/2 13 Present legal requirement: Minimum Maximum 1970—Oct. 1.............. 5 Net demand deposits, reserve city banks................ 10 22 Net demand deposits, other banks.......................... 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 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ MAY 1973 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits............... 4 Vi 12 months or more.. 4 4 Other time deposits:2 Less than 12 months. 3% 3% Multiple maturity:3 30-89 days.................. 4 90 days-1 year.... S* 1 year to 2 years... 5 5Vi 2 years and over... 5% Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year..., 5 12 months or more.... 4 1 year to 2 years.... 5 Vi 5 Vi 6 months to 12 months, 31/2 4Vi 2 years and over.... 5V4 90 days to 6 months.. . 2* $100,000 and over: Less than 90 days........ 4 30-59 days............. 5 Vi (4) (30-89 days) 60-89 days............. 534 90-179 days........... 5% 5% 6 6 180 days to 1 year.., 7 1 year or more..... W/4 7Vi 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member banks are estab­ Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, lished by the Board of Governors under provisions of Regulation Q; p. 167. however, a member bank may not pay a rate in excess of the maximum 3 Multiple-maturity time deposits include deposits that are automati­ rate payable by State banks or trust companies on like deposits under cally renewable at maturity without action by the depositor and deposits the laws of the State in which the member bank is located. Beginning that are payable after written notice of withdrawal. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6*4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6 Vi per cent on maturities of those in effect for member banks. MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4, 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31 . 100 100 1947—Feb. 1 1949—Mar. 29, 75 75 1949—Mar. 30 1951—Jan. 16, 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 15, 70 70 1958—Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 15. 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5, 50 50 1963—Nov. 6 1968—Mar. 10 70 70 1968—Mar. 11 June 7 70 50 70 June 8 1970—May 5 80 60 80 1970—May 6 1971—Dec. 3 . 65 50 65 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

MAY 1973 □ OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r u a o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f m r t r s i p , ty ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o i u c f r r h ts i . ty tions 1972—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 -411 Dec.. 5,083 4,640 135 5,083 4,640 -135 1973-Jan... 3,060 1,735 3,060 1,735 Feb.. 6,275 5,216 200 6,079 5,216 200 25 -1,408 61 3,476 Mar.. 3,510 2,201 200 3,510 2,201 200 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers' agreements Federal agency acceptances (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s u r h x r i m c i f t h t y a s . ­ c G 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 u r h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s s G e it c o ie u v s r t ­ , r O ig u h t­ t R a m c g e h e r p a e n s u e t e s r ­ ­ r O i n g u e h t t t ­ , m r a c e g n h e p r a e n e u s t t e r s e ­ ­ , change1 1972—Mar.. 31 47 2,695 2,022 2,229 83 16 19 61 2,408 Apr.. 126 23. 2,625 3,298 380 169 -16 1 -61 472 May. 1,115 1,299 25 -4 65 1,386 June. 109 20 211 i,326* -251 **1*27* -25 -6 -65 -221 July . 1,736 1,736 -533 -26 -10 -570 Aug.. ‘*23* 166 *15* 250 3,171 2,459 -82 -3 74 4 ‘30* 22 Sept.. 1,132 1,844 -866 -35 -74 -4 -30 -1,009 Oct.. *32* 3,594 3,594 220 -22 7 206 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 2,197 Feb.. 79 -2,068 32 2,774 3,034 599 -18 -28 -3 95 644 Mar. 6,024 5,478 1,656 -14 61 -1 -66 1,636 i 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 P st o e u rl n in d g s s A ch u i s l t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a il t n d h d e e s r r s ­ f S r w an is c s s 1969—Dec. 1,967 1,575 199 60 125 1970—Dec. 257 154 98 1971—Dec. 18 3 2 1972—Jan.. 17 3 2 8 Feb. 17 3 2 8 Mar. 17 3 2 8 Apr. 17 3 2 8 May 57 3 2 50 June 18 2 9 5 July. 7 1 1 7 Aug. 34 24 3 Sept. 122 85 35 Oct.. 211 164 16 21 Nov 200 164 20 7 Dec. 192 164 20 6 1973—Jan.. 92 67 20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ MAY 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 Apr. 25 Apr. 18 Apr. 11 Apr. 4 Mar. 28 Apr. 30 Mar. 31 Apr. 30 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..................................................... 320 331 339 343 352 323 358 334 Loans: Member bank borrowings............. 1,521 3,159 1,241 1,082 2,028 1,709 2,048 60 Other.............................................. Acceptances: Bought outright............................. 82 79 75 75 75 84 77 83 Held under repurchase agreements. 31 86 69 52 88 Federal agency obligations: Bought outright.............................. 1,272 1,272 1,272 1,280 1,280 1,261 1,280 979 Held under repurchase agreements. 95 251 59 29 94 U.S. Govt, securities: Bought outright: Bills.......................... 32,895 33,421 32,738 32,873 32,430 34,087 32,761 30,319 Certificates—Special. Other.. Notes........................ 36,976 36,839 36,839 36,839 36,839 36,976 36,839 36,448 Bonds....................... 3,571 3,501 3,501 3,501 3,501 3,571 3,501 3,540 Total bought outright.................... i,273,442 173,761 1,273,078 173,213 172,770 174,634 173,101 170,307 Held under repurchase agreements. 584 1,669 1,084 861 1,175 Total U.S. Govt, securities. 74,026 75,430 73,078 73,213 73,854 75,495 74,276 70,307 Total loans and securities.................. 77,027 80,277 75,666 75,650 77,365 78,630 77,863 71,429 Cash items in process of collection... *9,089 *10,139 8,591 9,257 7,704 *6,370 6,637 10,530 Bank premises................................... 199 200 199 199 197 199 197 163 Other assets: Denominated in foreign currencies. 4 4 4 4 4 4 4 17 All other........................................ 931 884 807 746 748 925 714 906 Total assets. *98,273 *102,538 96,309 96,902 97,073 *97,154 96,476 93,254 Liabilities F.R. notes........................................ 58,523 58,719 58,553 58,054 57,572 58,269 57,419 53,208 Deposits: Member bank reserves................. *26,205 *30,580 25,152 25,665 26,873 *25,730 27,713 27,415 U.S. Treasurer—General account. 3,696 2,787 3,533 3,596 3,382 4,163 2,881 1,871 Foreign......................................... 240 263 267 271 359 328 327 228 Other: All other................................... 682 658 703 636 709 773 696 631 Total deposits. *30,823 *34,288 29,655 30,168 31,323 *30,994 31,617 30,145 Deferred availability cash items........... 6,295 6,957 5,648 5,989 5,582 5,138 4,792 7,555 Other liabilities and accrued dividends. 729 752 716 709 685 793 709 552 Total liabilities.................................... *96,370 *100,716 94,572 94,920 95,162 *95,194 94,537 91,460 Capital accounts Capital paid in.......................................................... 813 813 809 808 807 814 807 763 Surplus...................................................................... 793 793 793 793 793 793 793 742 Other capital accounts.............................................. 297 216 135 381 311 353 339 289 Total liabilities and capital accounts........................ *98,273 *102,538 96,309 96,902 97,073 *97,154 96,476 93,254 Contingent liability on acceptances purchased for foreign correspondents.......................................... 351 345 311 285 282 344 282 265 Marketable U.S. Govt, securities held in custody for foreign and international accounts.......................... 30,850 31,385 31,605 31,461 32,120 30,184 31,529 28,792 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)... 62,188 62,142 61,859 61,609 61,591 62,330 61,615 57,,351 Collateral held against notes outstanding: Gold certificate account.......................... 2,300 2,300 2,200 2,291 2,191 2,300 2,291 1,,945 U.S. Govt, securities.............................. 61,665 61,635 61,585 61,380 61,380 61,665 61,331 56;,900 Total collateral. 63,965 63,935 63,785 63,671 63,571 63,965 63,622 58,,845 i 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

MAY 1973 a FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON APRIL 30, 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 10,303 448 2,731 538 800 1,026 577 1,736 348 191 456 308 1,144 Special Drawing Rights certificate account........................................... 400 23 93 23 33 36 22 70 15 7 15 14 49 1,145 130 204 47 63 94 248 63 26 19 30 51 170 323 17 23 6 39 35 41 39 23 5 43 12 40 Loans: Secured by U.S. Govt, and agency obligations.................................. 1,706 72 333 102 78 281 181 170 66 17 83 152 171 3 3 Acceptances: Bought outright............................. 84 84 Held under repurchase agreements.. 52 52 Federal agency obligations: Bought outright.............................. 1,261 59 324 69 93 89 69 203 49 28 51 57 170 Held under repurchase agreements.. 29 29 U.S. Govt, securities: Bought outright.............................. 174,634 3,499 19,194 4,085 5,516 5,228 4,101 12,017 2,889 1,643 3,034 3,382 10,046 Held under repurchase agreements.. 861 861 78,630 3,630 20,877 4,256 5,687 5,598 4,354 12,390 3,004 1,688 3,168 3,591 10,387 Cash items in process of collection... 8,111 285 1,260 575 460 752 844 990 335 258 615 447 1,290 199 32 7 5 27 14 15 16 14 32 17 12 8 Other assets: Denominated in foreign currencies.. 4 22 1 1 All other......................................... 925 44 233 51 71 67 49 141 34 23 37 50 125 Total assets...................................... 100,040 4,609 25,430 5,501 7,180 7,622 6,150 15,446 3,799 2,223 4,381 4,485 13,214 Liabilities F.R. notes.......................................... 59,414 3,064 14,788 3,680 4,686 5,284 3,041 9,916 2,337 1,082 2,346 2,265 6,925 Deposits: Member bank reserves................... 25,730 667 7,489 1,005 1,525 1,196 1,803 3,611 694 587 1,050 1,315 4,788 U.S. Treasurer—General account.. 4,163 392 686 238 170 378 359 398 322 231 250 377 362 Foreign.......................................... 328 12 3117 14 26 15 20 45 10 6 12 15 36 Other: All other.................................... 777 1 617 16 15 12 87 2 2 2 4 19 Total deposits.................................... 30,998 1,072 8,909 1,273 1,721 1,604 2,194 4,141 1,028 826 1,314 1,711 5,205 Deferred availability cash items......... 6,875 355 1,011 412 545 568 740 957 339 250 611 371 716 Other liabilities and accrued dividends 793 37 213 40 57 54 42 122 28 21 30 34 115 Total liabilities................................. 98,080 4,528 24,921 5,405 7,009 7,510 6,017 15,136 3,732 2,179 4,301 4,381 12,961 Capital accounts Capital paid in................................... 814 33 208 39 73 44 59 128 28 19 34 45 104 Surplus............................................... 793 34 207 39 72 42 55 124 27 18 33 43 99 Other capital accounts........................ 353 14 94 18 26 26 19 58 12 7 13 16 50 Total liabilities and capital accounts.. 100,040 4,609 25,430 5,501 7,180 7,622 6,150 15,446 3,799 2,223 4,381 4,485 13,214 Contingent liability on acceptances purchased for foreign correspond- 344 15 485 17 32 18 24 55 12 8 15 19 44 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).......................................... 62,330 3,252 15,625 3,781 4,896 5,483 3,318 10,164 2,473 1,107 2,461 2,427 7,343 Collateral held against notes out­ standing: Gold certificate account................. 2,300 280 400 350 410 700 155 5 U.S. Govt, securities...................... 61,665 3,010 15,850 3,500 4,700 5,115 3,500 9,900 2,380 1,130 2,500 2,480 7,600 Total collateral................................... 63,965 3,290 15,850 3,900 5,050 5,525 3,500 10,600 2,535 1,130 2,500 2,485 7,600 1 See note 6 to table at bottom of p. A-5. 4 After deducting $259 million participations of other Federal Reserve 2 After deducting $2 million participations of other Federal Reserve Banks. Banks. 3 After deducting $211 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 FEDERAL RESERVE BANKS; BANK DEBITS □ MAY 1973 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 April 25 April 18 April 11 April 4 Mar. 28 April 30 Mar. 31 April 30 1,521 3,159 1,243 1,082 2,028 1,709 2,049 58 1,516 3,140 1,203 1,071 2,011 1,688 2,018 58 16 days to 90 days........................................................... 5 19 40 11 17 21 31 91 days to 1 year.............................................................. Acceptances—T otal............................................................. 113 165 75 75 144 136 165 83 Within 15 days.................................................................. 45 100 18 17 84 65 102 23 16 days to 90 days........................................................... 68 65 57 58 60 71 63 60 U.S. Government securities—Total................................. 74,026 75,430 73,078 73,213 73,854 75,495 74,276 70,307 Within 15 days1............................................................... 5,284 7,078 4,335 4,626 6,199 9,186 5,013 3,471 21,506 21,359 21,773 21,685 20,890 18,170 22,524 18,362 13,361 13,275 13,252 13,184 13,047 14,264 13,021 14,775 28,148 28,021 28,021 28,021 28,021 28,148 28,021 26,665 4,138 4,119 4,119 4,119 4,119 4,138 4,119 5,804 Over 10 years.................................................................... 1,589 1,578 1,578 1,578 1,578 1,589 1,578 1,230 Federal agency obligations—Total.................................. 1,367 1,523 1,272 1,280 1,339 1,290 1,374 979 Within 15 days*............................................................... 111 267 8 68 34 102 16 days to 90 days........................................................... 42 36 52 52 51 42 52 74 91 days to 1 year.............................................................. 231 214 214 214 214 231 214 217 Over 1 year to 5 years..................................................... 545 568 568 568 568 545 568 450 Over 5 years to 10 years................................................. 247 247 247 247 247 247 247 134 Over 10 years................................................................... 191 191 191 191 191 191 191 104 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts I Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S 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—Mar.r............................. 12,785.2 5,631.4 2,932.9 7,153.8 4,220.9 83.2 195.2 83.3 57.3 47.1 Apr.r.............................. 13,167.5 5,801.4 3,053.1 7,366.1 4,313.0 85.7 202.1 87.3 59.0 47.9 May r.............................. 13,399.3 5,939.2 3,148.8 7,460.0 4,311.2 85.6 200.8 89.8 58.8 46.9 Juner.............................. 13,280.6 5,780.8 3,096.4 7,499.7 4,403.4 84.8 199.9 88.1 58.7 47.6 July r............................... 12,994.0 5,633.0 2,996.3 7,361.0 4,364.7 82.4 194.4 84.2 57.2 46.9 Aug.r.............................. 13,969.4 6,151.8 3,233.0 7,817.6 4,584.6 87.6 206.9 90.2 60.2 48.8 Sept................................. r14,022.7 6,285.1 3,191.0 7,737.6 r4,546.5 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.................................. 14,783.6 6,604.8 3,495.4 8,178.7 4,683.4 90.7 215.7 r95.6 61.8 48.9 1973—Jan.r............................... 15,504.4 6,855.4 3,671.0 8,649.0 4,978.0 94.2 224.0 98.8 64.5 51.4 Feb.T.............................. 16,023.5 7,227.0 3,775.7 8,796.5 5,020.8 97.6 238.0 102.3 65.8 51.8 Mar................................. 15,933.7 6,844.8 3,856.3 9,088.9 5,232.6 97.0 228.3 104.1 67.7 53.8 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939. 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950. 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1959. 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 I960, 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961. 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965 , 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968. 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970. 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 1971. 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--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 Feb........... 64,696 43,431 7,290 2,370 135 3,213 9,330 21,091 21,266 5,755 15,089 192 224 2 4 Mar.......... 65,180 43,699 7,320 2,368 135 3,209 9,352 21,314 21,482 5,787 15,274 191 223 2 4 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin, overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 Total, out­ Held by standing, As security For F.R. 1973 1972 Kind of currency Mar. 31, against Treasury F.R. Banks 1973 gold and cash Banks and silver and Agents Mar. Feb. Mar. certificates Agents 31 28 31 Gold............................................................................. 10,410 (10,303) 107 Gold certificates.......................................................... (10,303) 2 10,302 1 Federal Reserve notes................................................. 61,616 168 4,197 57,251 56,796 52,914 Treasury currency—Total............................................ 8,420 132 358 7,930 7,901 7,474 Standard silver dollars............................................. 766 41 40 685 681 611 Fractional coin........................................................ 7,041 88 318 6,635 6,610 6,249 United States notes.................................................. 323 3 320 320 320 In process of retirement 3........................................ 290 290 290 293 Total—Mar. 31, 1973.................................................. 4 80,446 (10.303) 407 10.302 4,557 65,180 Feb. 28, 1973................................................... 4 80,264 (10.303) 379 10.302 4,887 64,696 Mar. 31, 1972.................................................. 474,511 (9,475) 402 9,474 4,248 60,388 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

A 16 MONEY STOCK □ MAY 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 Mi Mi M2 Mi Composition of measures is described in the Note below. 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—Ma r 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 '775.0 243.2 498.8 775.6 July....... 247.7 504.5 784.0 246.6 503.6 784.3 Aug........ 248.6 508.4 791.6 245.5 505.1 788.3 Sept....... 250.1 512.1 r799.0 248.7 510.4 796.9 Oct......... 251.6 516.4 807.0 251.2 515.2 805.2 Nov....... 252.7 519.8 '813.6 254.3 518.7 811.2 Dec........ 255.5 525.1 822.0 262.9 530.3 '826.5 1973—Ja n 255.4 527.9 '828.7 262.6 534.1 '834.6 Feb........ 256.7 530.5 '834.9 254.0 527.8 '831.6 Mar....... '256.6 r532.6 '839.7 '254.1 '531.4 '838.8 Apr.*.... 258.3 536.3 845.5 259.6 539.6 849.7 Week ending— 1973—Apr. 4. 257.5 534.1 257.0 536.0 11. 257.5 534.1 260.4 539.2 18. 258.9 537.9 262.4 543.2 25* 257.0 535.6 258.0 538.2 May 2* 259.5 538.5 257.5 538.4 Note.—Composition of the money stock measures is as follows : posits open account, and time certificates other than negotiable CD’s of $100,000 of large weekly reporting banks. Mi: Averages of daily figures for (1) demand deposits of commercial M3: M2 plus the average of the beginning- and end-of-month figures banks other than domestic interbank and U.S. Govt., less cash items in for deposits of mutual savings banks and for savings capital of savings process of collection and F.R. float; (2) foreign demand balances at F.R. and loan associations. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of For description and back data, see “Revision of the Money Stock Meas­ commercial banks. ures and Member Bank Reserves and Deposits” on pp. 61-79 of the Feb. Mu Averages of daily figures for Mi plus savings deposits, time de­ 1973 Bulletin. 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 3 rency mand deposits institu­ rency mand deposits institu­ depos­ tions 2 depos­ tions 2 its its CD’s 1 Other Total Other Total 1969—De c . 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—De c 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—De c 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—Ma r . 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 Apr........ 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 June....... 54.4 190.7 37.5 254.2 291.7 275.7 54.4 188.8 35.8 255.6 291.4 276.8 6.9 July....... 54.6 193.1 38.3 256.8 295.0 279.6 55.1 191.5 37.0 257.0 294.0 '280.6 7.3 Aug....... 54.8 193.8 39.1 259.8 298.9 '283.2 55.1 190.5 39.9 259.6 299.5 283.2 5.3 Sept....... 55.3 194.8 39.8 262.0 301.9 286.9 55.2 193.5 41.0 261.7 302.7 286.5 5.9 Oct........ 55.7 195.9 40.0 264.8 304.8 290.6 55.7 195.5 41.9 264.0 305.9 290.0 6.6 Nov....... 56.2 196.5 41.2 267.1 308.4 '293.8 56.7 197.7 43.3 264.4 307.7 292.5 6.2 Dec........ 56.8 198.7 43.2 269.6 312.8 296.9 57.8 205.0 44.3 267.5 311.7 296.1 7.3 1973—Ja n 57.0 198.4 44.4 272.5 316.9 300.8 56.7 205.9 45.1 271.5 316.6 '300.5 8.0 Feb........ 57.5 199.3 48.8 273.8 322.6 '304.4 56.7 197.3 48.6 273.8 322.5 '303.8 9.6 Mar....... 57.9 '198.7 54.9 276.0 330.9 '307.0 57.3 '196.7 54.0 277.3 331.4 '307.4 10.1 Apr.*.... 58.6 199.7 58.7 278.0 336.7 309.2 58.2 201.5 56.1 280.0 336.1 310.1 8.2 Week ending— 1973—Apr. 4. 58.2 199.3 57.7 276.6 334.3 57.6 199.4 55.7 279.0 334.6 10.1 11. 58.7 198.9 59.0 276.6 335.6 58.6 201.8 56.6 278.8 335.4 6.1 18. 58.7 200.2 58.1 279.0 337.1 58.4 204.0 55.6 280.8 336.4 6.0 25* 58.8 198.1 58.8 278.7 337.5 58.1 199.9 56.2 280.3 336.5 9.2 May 2* 58.6 200.9 59.3 279.0 338.3 57.8 199.7 56.5 280.9 337.4 11.4 1 Negotiable time certificates of deposit issued in denominations of 3 At all commercial banks. $100,000 or more by large weekly reporting commercial banks. 2 Average of the beginning and end-of-month figures for deposits of See also Note above. mutual savings banks and savings capital at savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves,S.A.1 Deposits subject to reserve requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. 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—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 , , , 31.65 29.79 31.44 29.30 410.2 248.5 154.5 7.2 409.0 248.5 152.4 8.1 414.8 413.5 Mar.... 32.00 29.53 31.77 29.62 416.7 256.0 153.2 7.5 416.3 256.2 151.6 8.5 421.6 421.2 Apr p. .. 32.34 30.18 32.08 29.87 421.3 261.8 153.6 5.8 422.5 260.5 155.1 6.8 426.4 427.7 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 M P s o o l a 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 u re . 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 a r 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—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 , 521.3 347.8 350.1 121.5 122.9 62.3 111.3 521.4 350.3 352.6 122.3 123.7 59.6 111.5 Aug. 30 529.1 355.3 357.7 123.9 125.4 61.4 112.5 525.8 353.7 356.0 122.2 123.7 59.3 112.8 Sept. 27 535.6 360.1 362.4 124.6 126.1 62.0 113.5 535.0 360.7 363.0 124.2 125.7 60.3 114.0 Oct. 25 540.5 366.9 369.2 126.7 128.1 59.9 113.6 540.3 365.2 367.5 125.8 127.2 60.9 114.2 Nov. 29 549.8 373.6 376.1 128.2 129.8 60.6 115.6 549.9 371.8 374.3 127.6 129.2 63.2 114.9 Dec. 31 557.5 378.2 380.8 129.3 131.0 62.4 116.9 571.4 387.3 389.9 132.7 134.4 67.0 117.1 1973—Jan. 31 p.. . 564.6 385.5 388.2 133.2 134.9 61.9 117.1 564.9 383.3 385.9 132.0 133.7 65.4 116.2 Feb. 28*. . . 573.7 396.2 399.3 138.1 140.2 60.2 117.2 569.7 392.0 395.1 136.6 138.7 61.3 116.4 Mar. 28p.... 582.6 404.9 408.0 141.8 143.8 60.6 117.2 578.3 400.6 403.8 141.7 143.7 60.7 117.0 Apr. 25p... 585.3 408.0 411.6 144.1 146.4 60.6 116.6 584.1 406.8 410.5 144.5 146.8 59.8 117.5 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-l09. For description of series, see July 1972 Bulletin, net of valuation reserves as was done previously. For a description of the p. 683. Data are for last Wednesday of month except for June 30 and revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in that table Dec. 31; data are partly or wholly estimated except when June 30 and Dec. have been revised to include valuation reserves. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS □ MAY 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 U.S. capital De­ Treas­ Other ac­ mand Time Time 5 ury 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 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31... 124.019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 6. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 35,360 65 10,059 14,181 1966—Dec. 31... 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30... 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 31 7. 421,597 295,547 54,709 71,341 89,984 530,665 435,577 27,174 735 5,054 208,870 193,744 18,360 39,978 13,661 1970—Dec. 31... 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—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—Apr. 26.. 525,660 354.120 61,860109, 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, 100,910 659,070 544.720 28,240 3,020 8,430 215,360 289,670 33,270 48,310 13,838 June 30... 542,689 370,910 60,258111, 99,472 667,126 552,543 28,782 3,114 9,083 219,050 292,513 33,214 50,117 13,875 July 26 r., 542,940 371,820 59,580111. 91.610 660,300 544.860 27,210 3,260 8,320 211,100 294,970 34,440 49,380 13,877 Aug. 30 r., 547,880 375,780 59,300112; 91,830 665,870 546.720 27,090 3,350 3,820 211,020 301,440 36,070 49,820 13,898 Sept. 27.. 556,380 382,100 60,290113; 91,660 674,780 556,490 26,880 3.890 9,470 213,070 303,180 33.530 50,140 13.910 Oct. 25.. 561,280 386,190 60.930 114; 102,830 691,880 567,620 29,040 3,760 7,520 221,440 305,860 39,680 50,700 13.911 Nov. 29.. 574,230 396,160 63,210 114; 91,460 694,050 572,160 27,060 3,920 7,760 224,990 308,430 38,350 51.160 13,924 Dec. 31.. 598, 414,696 67,028117; 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973—Jan. 31*.. 590,220 408,590 65,410116,220 96,560 715,670 588.860 29,250 3.890 10,390 227,580 317,750 42,730 52,280 13,939 Feb. 28 * 597,890 420.210 61,330116,350 99.610 727,520 596,440 29,510 4,170 11.350 226,290 325,120 45.530 52,670 13,952 Mar. 28*.. 605,040 427,320 60,730116,990 91,210 726,010 593,590 25,900 4,530 11.350 218,980 332,830 45,500 53.160 13.974 Apr. 25*.. 612.020 434,750 59,810117,460 91,880 734,480 600,420 26.140 4,i 10,850 223,380 335,170 45,920 53,440 13.974 Members 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—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 26 422,079 295,250 42,932 83,897 79,081 522,579 426,141 25,825 2,867 6,954 165,390 225,105 32,845 38,896 5,705 Aug. 30 425,369 297,828 42,727 84,814 79,058 526,089 426,716 25,742 2,954 2,966 164,851 230,203 34,409 39,226 5.702 Sept. 27 r.. 432,150 303,049 43,506 85,595 78,504 532,741 434,554 25,502 3,495 8,033 166,353 231,171 31,962 39,437 5.703 Oct. 25 r. 435,460 305,996 43,691 85,773 88,220 546,642 442,792 27,528 3,360 6,172 172,615 233,117 37,857 39,824 5,699 Nov. 29 r. 446,621 314,463 45,799 86,359 78,554 548,333 446,441 25,759 3,520 6,463 175,739 234,960 36,480 40,219 5,701 Dec. 31.. 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561 9,024 197,817 239,763 36,357 41,228 5.704 1973—Jan. 31 r. 458,760 324,637 47,333 86,790 82,499 565,071 458,943 27,757 3,260 8.461 177,677 241,788 40,256 40,994 5,690 Feb. 28.. 465,065 334,609 43,698 86,758 85,264 575,222 465,395 28,037 3,537 9,364 176,525 247,932 42,912 41,309 5,688 Mar. 28.. 471,067 340,667 43,259 87,141 77,728 573,531 463,004 24,488 3,895 9,407 170,560 254,654 42,649 41,578 5.683 Apr. 25*.. 476.739 346,865 42,517 87,357 78,219 580,412 468,385 24,744 4,242 9,167 173,671 256,561 43,076 41,806 5.683 Large member banks: New York City:8,9, 1941—Dec. 31. 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 12,051 807 1,648 36 1945—Dec. 31... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31.. 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30.. 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 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—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. 31.. 75,034 58,713 5,696 10,625 26,416 107,603 82,446 15,094 1,833 1,418 35,373 28,728 9,502 8,042 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 Mar. 28.. 76,368 62,584 4,498 9,286 20,133 103,402 77,435 11,744 1,951 1,789 29,032 32,919 9,938 8,047 13 Apr. 25.. 76,834 63,395 4,254 9,185 19,710 103,622 77,295 11,935 2,229 1,732 29,068 32.331 9,891 8,093 13 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 p COMMERCIAL BANKS A 19 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 Class of bank lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets3 and Demand ings counts banks l U.S. capital Total3 Treas­ Other ac­ De­ Time Times ury 2 counts4 mand U.S. Govt. Other Large member banks (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—Apr. 26........... 17,761 12,998 1,510 3,253 3,207 21,858 16,017 1,344 191 465 6,381 7,636 2,972 1,829 9 May 31........... 18,147 13,283 1,665 3,199 3,538 22,697 16,509 1,412 182 282 6,631 8,002 3,280 1,836 9 June 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 14,130 1,398 3,054 3,070 22,727 16,695 1,447 194 310 6,157 8,587 3,187 1,850 9 Aug. 30........... 19,20C 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........... 19,270 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. 31........... 21,362 16,294 1,873 3,195 3,580 26,009 19,851 1,615 160 509 7,387 10,179 3,008 1,891 9 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 9 Feb. 28........... 21,982 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 Mar. 28........... 22,660 17,980 1,470 3,210 3,092 26,821 19,854 1,326 266 461 6,439 11,362 3,910 1,878 9 22,800 18,253 1,414 3,133 3,277 27,170 20,020 1,304 333 426 6,639 11,318 3,971 1,899 9 Other large member: 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 15,036i 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 14,700I 22,860i 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—Apr. 26........... 149,586 107,362 14,434■ 27,790i 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 T......... 154,528 113,172 13,873 27,483 30,738 193,595 153,678 9,593 1,098 2,868 58,980 81,139 17,626 14,011 157 Aug. 30 r......... 153,957 112,638 13,501 27,818 31,452 193,592 152,570 9,458 1,150 1,015 58,564 82,383 18,450 14,062 156 Sept. 27. r....... 156,822 115,352 13,692, 27,778; 31,640 196,672 156,023 9,509 1,285 3,512 58,956 82,761 17,816 14,132 157 Oct. 25. T....... 157,630 115,642 13,699' 28,289' 35,635 201,551 158,214 10,202 1,239 2,374 61,147 83,252 20,500 14,193 156 Nov. 29........... 163,011 119,961 14,734• 28,316i 29,350 200,829 159,305 8,844 1,156 2,828 62,229 84,248 18,629 14,331 156 Dec. 31........... 171,549 126,661 16,316i 28,572: 36,729 217,170 173,913 11,133 1,173 3,860 71,376 86,372 19,392 14,687 156 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 32,397 211,296 165,050 9,365 1,210 3,942 62,627 87,906 22,434 14,760 156 Mar. 28........... 172,681 129,991 13,615 29,075: 29,634 211,358 165,250 8,355 1,283 3,761 60,676 91,175 22,182 14,819 156 Apr. 25........... 175,754 133,253 13,414 29,087 30,111 215,262 168,360 8,470 1,285 4,069 61,487 93,049 22,606 14,905 156 All other 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........... 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1971—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—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 5,535 179,450 113,382 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 5,535 182,638 116,540 22,707 43,391 25,756 215,010 186,260 3,205 263 2,606 71,857108,329 4,601 15,423 5,526 Aug. 30 r......... 184,859 118,458 22,613 43,788 25,574 217,303 187,669 3,118 263 1,595 72,564110,129 4,786 15,578 5,524 Sept. 27 r......... 187,134 119,949 22,901 44,284 25,865 220,106 190,396 3,173 395 2,693 73,244110,891 4,517 15,732 5,524 Oct. 25 r......... 189,164 121,498 23,512 44,154 28,205 224,720 194,272 3,485 395 2,509 76,158111,725 5,242 16,000 5,521 Nov. 29 '......... 191,533 123,590 23,756 44,187 24,989 224,472 194,565 3,014 395 2,390 76,235112,531 5,379 16,089 5,523 Dec. 31........... 197,843 127,881 24,830 45,132 29,841 234,342 205,914 4,116 395 3,238 83,681114,483 4,455 16,608 5,526 1973—Jan. 31'......... 195,468 126,055 24,488 44,925 25,931 229,209 199,603 3,235 395 3,376 76,769115,828 5,752 16,406 5,512 Feb. 28........... 197,603 128,535 23,894 45,174 26,295 231,780 201,349 3,199 395 3,474 76,587117,694 6,082 16,516 5,510 Mar. 28........... 199,358 130,112 23,676 45,570 24,869 231,950 200,465 3,063 395 3,396 74,413119,198 6,619 16,834 5,505 Apr. 25p......... 201,351 131,964 23,435 45,952 25,121 234,358 202,710 3,035 395 2,940 76,477119,863 6,608 16,909 5,505 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS □ MAY 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits i Total | assets— Classification by Securities Total Interbank3 Other FRS membershin Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Loans and Total3 Demand ings ac­ of l U.S. Other capital De­ Time counts banks Treas­ 2 ac­ mand Time 5 i ury counts4 G U o .S v . t . I 1 Other 1 i Insured banks: Total: 1941 _Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,i654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,!883 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 1971—Dec. 31.. 514,097 345,386 64,691104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 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 Dec. 31.. 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166'13,721 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 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 Dec. 31.. 350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096 2,155 6,646 146,800 184,622 26,706 30,342 4,612 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,' 411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 307. 88,346 64,007 9,902 14,437 26,344 119,358 93,858 9,773 285 1,341 45,152 37,307 4,104 8,689 1,236 Dec. 31.. 90,088 65,560 10,257 14,271 24,313 119,219 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 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 Dec. 31.. 115,426 82,889 11,530 21,008 29,176 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695| 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 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 16,155 14,020 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—June 307. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 34,070 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—June 30.. 116,317 73,126 16,276 26,915 11,822 131,774 115,992 1,088 316 1,432 45,222 67,934 1,076 10,265 7,955 Dec. 31.. 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 '8,017 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ 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— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ a in n s d u F ra D nc IC e Total Loa l ns T U u re r .S a y s . ­ Ot 2 her assets3 c c b o a i a u l a p i n n c t i i d ­ t t e s a s l 4 Total3 m D a e n ­ d Time U. D S. emand Tim 5 e r i o n w gs ­ c co a a p u c i n ­ ta ts l ba b o n e f k r s Other Govt. Noninsured nonmember: 1941—Dec. 31......... 1,457 455 761 241 763 2,283 1,872 3;.9 1,291 253 13 329 852 1945—Dec. 31......... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 316........ 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec.20......... 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31......... 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31......... 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30......... 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31......... 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June30 7....... 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dec. 31......... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 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 Dec. 31........ 4,865 3,731 349 785 1,794 7,073 3,775 488 81 55 1,530 1,620 527 491 206 Total nonmember: 1941—Dec. 31......... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 45>7 5,i!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—June30 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 1971—Dec. 31........ 111,674 69,411 17,297 24,966 13,643129,100112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—June 120,510 76,357 16,550 27,603 13,042137,658119,145 1,472 397 1,453 46,631 69,192 1,462 10,759 8,161 Dec. 31........ 133,198 85,325 18,313 29,559 16,562154,085134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 r8,223 1 Beginning June 30, 1966, loans to farmers directly guaranteed by the previous “reserve city” and “country” categories, respectively (hence CCC were reclassified as securities, and Export-Import Bank portfolio the series are continuous over time). fund participations were reclassified from loans to securities. This reduced 9 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, Total loans and increased “Other securities” by about $1 billion. Total p. 993. For various changes between reserve city and country status in loans include Federal funds sold, and beginning with June 1967 securities 1960-63, see note 6, p. 587, May 1964 Bulletin. (See also note 8.) purchased under resale agreements, figures for which are included in 10 Beginning May 6, 1972, two New York City country banks, with “Federal funds sold, etc.,” on p. A-22. deposits of $1,412 million, merged and were reclassified as a reserve city Beginning June 30, 1971, Farmers Home Administration notes are bank. (See also note 8.) classified as “Other securities” rather than “Loans.” As a result of this change, approximately $300 million was transferred to “Other securities” Note.—Data are for all commercial banks in the United States (includ­ for the period ending June 30, 1971, for all commercial banks. ing Alaska and Hawaii, beginning with 1959). Commercial banks represent See also table (and notes) at the bottom of p. A-30. all commercial banks, both member and nonmember; stock savings 2 See first two paragraphs of note 1. banks; and nondeposit trust companies. 3 Reciprocal balances excluded beginning with 1942. For the period June 1941—June 1962 member banks include mutual 4 Includes items not shown separately. See also note 1. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 5 See third paragraph of note 1 above. and one through June 1962. Those banks are not included in insured 6 Beginning with Dec. 31, 1947, the series was revised; for description, commercial banks. see note 4, p. 587, May 1964 Bulletin. Beginning June 30, 1969, commercial banks and member banks exclude 7 Figure takes into account the following changes beginning June 30, a small national bank in the Virgin Islands; also, member banks exclude, 1969: (1) inclusion of consolidated reports (including figures for all bank- and noninsured commercial banks include, through June 30, 1970, a small premises subsidiaries and other significant majority-owned domestic member bank engaged exclusively in trust business. subsidiaries) and (2) reporting of figures for total loans and for individual Comparability of figures for classes of banks is affected somewhat by categories of securities on a gross basis—that is, before deduction of changes in F.R. membership, deposit insurance status, and the reserve valuation reserves—rather than net as previously reported. classifications of cities and individual banks, and by mergers, etc. 8 Beginning Nov. 9,1972, designation of banks as reserve city banks for Data for national banks for Dec. 31, 1965, have been adjusted to make reserve-requirement purposes has been based on size of bank (net demand them comparable with State bank data. deposits of more than $400 million), as described in the Bulletin for Figures are partly estimated except on call dates. July 1972, p. 626. Categories shown here as “large” and “all other” parallel For revisions in series before June 30, 1947, see July 1947 Bulletin, pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ MAY 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans * Investments b C a l n a k s s a o nd f lo T a a o n n t d s a l * f F e u r e n a d d l ­ s C m o e m r­ ­ Agri- o p s u r e r c c c F u a h r o r a r i r y t s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot t h o er, U s . e S c . u T ri r t e i a e s s u 6 ry S a t n a d te call date invest­ sold, Total cial cul- es­ in- Other local Other ments etc.2 3.4 a i n n d ­ t a u l r- s b T ro o ­ tate v d i i d - - 5 Bills g se o c v u t ­ . r s it e i c e u s 5 ­ d tr u ia s l ­ k a e n r d s ot T h o ers BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total:2 1947—Dec. 31.. 116.284 38,05718,1671,660 8301,220 115 9,393 5,723 94769,221I 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io 422,728 9,928286,750108,44310,3295,739 4,027 2,488 15,06270,02063,2567,388 )......... 59,18312,158 1972—June 30. 543.285 20,598350,910123,162 13,6108,6084,012 5,041 18,35389,22780,2438,651 }......... 86,59824,923 Dec. 31.599,36726,662388,593132,701 14,31411,3164,491 6,58523,40298,38287,23210,171 }......... 89,50427,579 All insured: 1941—Dec. 31. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 i 988 3,15916,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 5 21,526 16,04551,342 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,0121,610 8231,190 114 9,266 5,654 914 1 9,676 5,91852,347 5,1293,621 1969—Dec. 31 io 419,746 9,693284,945107,68510.3145,6443,991 2,425 14,89069,669 63,008 7,319 > ... 58,84011,869 1972—June 30. 539,09319,568348,707122,06413,5938,491 3,998 4,761 18,26689,048 79,933 8,553 ^......... 86,28624,547 Dec. 31.594,50225,584385,941 131,422 14,28711,1654,460 6,11523,27798,204 86,91210,099 > .. . 89,17327,125 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 ► 971 3,00715,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 ! 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,9621,046 8111,065 113 7,130 4,662 839 7,803 4,81545,295 4,1993,105 1969—Dec. 31 io 337,613 7,356235,63996,0956,1875,4083,286 2,258 14,03553,20748,3886,776 47,2277,558 1972—June 30. 422,775 15,561279,588104,419 7,9248,2603,477 4,52017,10466,51859,6037,765 67,77716,141 Dec. 31.466,169 19,961309,969112,110 ,49510,8633,870 5,78322,02673,13164,4909,201 69,64017,884 New York City:11 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 3,910 3,325 10,339 606 629 1947—Dec. 31 20,393 7,179 5,361 545 267 93 111 564 238 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,50328,189 3,695 776 1,047 4,547 3,835 3,595 1,807 6,192 788 1972—June 30. 66,597 649 50,98725,972 5,665 768 1,834 4,936 5,288 4,561 1,930 8,491 ,132 Dec. 31. 75,034 812 57,90127,864 7,057 841 2,271 6,413 5,789 5,2252,390 9,107 1,518 City of Chicago:11 1941—Dec. 31.. 2,760 954 732 6 48 52 22 95 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 3 73 87 46 149 26 367 248 2,274 213 185 1969—Dec. 31 io 14,365 215 10,556 6,444 50 337 262 186 1,219 842 862 354 1,837 192 1972—June 30. 18,541 783 12,999 7,179 66 666 225 242 2,015 1,011 1,054 542 2,771 325 Dec. 31. 21,362 718 15,576 7,851 1401,330 282 341 2,780 1,066 1,138 648 1,873 2,820 375 Other large banks:11 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 4271,503 17 1,459 855 387 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 2,731 1,901 15,563 1,3421,053 1969—Dec. 31 io 121,628 3,021 88,18037,701 1,386 8781,300 876 6,00619,70617,5692,757 16,625 1,859 1972—June 30. 155,158 8,272105,01441,770 1,8031,5631,566 2,136 7,77124,35820,7723,275 14,141 23,510 4,222 Dec. 31. 171,618 9,927116,80244,483 1,9772,024 1,707 2,716 10,26827,01422,6693,943 16,316 24,049 4,523 All other menber:u 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,2221,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,54416,722 1,342I,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,10817,687 2,0061,262 1969—Dec. 3110 141,286 3,318 89,40123,762 ,739 498 947 148 2,26328,82426,3621,85821,278 22,5724,718 1972—June 30. 182,479 5,857110,58729,498 ,023 366 917 308 2,38135,85933,2152,01922,568 33,00510,463 Dec. 31. 198,156 8,504119,69031,911 ,327 4521,040 455 2,56539,26235,4582,22024,830 33,664II,468 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 1,02816,81314,868 61214,875 11,9564,600 1972—June 30. 120,510 5,037 71,31918,7435,686 348 535 521 1,24922,71120,640 88616,550 18,8208,782 Dec. 31. 133,198 6,701 78,62420,591 5,819 453 622 803 1,37725,25022,741 96918,313 19,8649,695 t 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-30. not entirely comparable with prior figures. See also note 10. Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ COMMERCIAL BANKS A 23 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 d f 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 o i c a s k t 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 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 . v S t . . g S l a o o t n c a v d a t t e l . c C c h o a f e e e i f n e f r r c d i d s t k ­ i ’ ­ s, IPC I b n a t n er k ­ G P S U a o o a n . s v v S d t ­ t a . . l g S l a o o t n c a v a d 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 n l ­ i t ­ s etc. ings Total: s 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1969—Dec. 31 io.. 21,449 7,320 20,314172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 21113,221 181,44318,36039,978 1972—June 30... 27,119 6,799 25,764184,468 25,522 3,261 9,083 17,687 10,652 190,710 3,114 49233,110259,50633,21450,117 Dec. 31... 26,070 8,666 32,185212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 60637,161277,68338,08352,658 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. 31io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 21113,166180,86018,02439,450 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 49133,027258,33232,82849,623 Dec. 31... 26,070 8,637 30,734210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 60637,086276,13837,55652,166 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. 31io.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,30817,39532,047 1972—June 30... 27,119 5,093 15,822138,566 24,363 2,947 7,630 13,177 8,859 150,382 2,717 38725,668197,86131,75239,358 Dec. 31... 26,070 6,582 19,396158,464 28,521 3,437 9,024 13,544 9,503 174,770 3,562 46828,553211,12436,35741,228 New York City:11 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 io 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. 311°.. 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 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 Dec. 31... 5,695 508 4,854 23,271 12,532 2,562 1,418 741 3,592 31,040 1,833 10 2,522 26,1969,502 8,042 City of Chicago:11 1941—Dec. 31___ 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1969—Dec. 3110.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 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 Dec. 31... 1,496 152 173 5,783 1,516 99 509 223 264 6,899 160 95 847 9,2373,008 1,891 Other large banks:11 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 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 Dec. 31.. . 10,085 2,114 4,688 52,813 10,426 707 3,860 3,854 3,075 64,447 1,173 18111,811 74,44919,39214,687 All other member: 11 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. 3110.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,7681,82012,766 1972—June 30... 9,084 3,042 8,176 67,101 3,329 72 2,804 8,144 2,255 63,080 395 18211,480 95,9834,208 15,831 Dec. 31... 8,794 3,807 9,681 76,597 4,047 70 3,238 8,726 2,571 72,384 395 18113,373 101,2434,455 16,608 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 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 1,46210,759 Dec. 31 2,084 12,789 53,658 1,449 446 1,851 5,044 2,182 47,180 633 138 8,608 66,559 1,72611,429 7 Beginning with 1942, excludes reciprocal bank balances. parallel the previous “reserve city” and “country” categories, respectively 8 Through 1960 demand deposits other than interbank and U.S. (hence the series are continuous over time). Govt., less cash items in process of collection; beginning with 1961, demand deposits other than domestic commercial interbank and U.S. Note.—Data are for all commercial banks in the United States; member Govt., less cash items in process of collection. banks in U.S. possessions were included through 1968 and then excluded. 9 For reclassification of certain deposits in 1961, see note 6, p. 589, For the period June 1941—June 1962 member banks include mutual May 1964 Bulletin. savings banks as follows: three before Jan. 1960, two through Dec. 1960, 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports and one through June 1962. Those banks are not included in all insured or (including figures for all bank-premises subsidiaries and other significant total banks. majority-owned domestic subsidiaries) and (2) reporting of figures for A small noninsured member bank engaged exclusively in trust business total loans and for individual categories of securities on a gross basis—that is treated as a noninsured bank and not as a member bank for the period is, before deduction of valuation reserves. See also notes 1 and 6. June 30, 1969—June 30, 1970. 11 Beginning Nov. 9,1972, designation of banks as reserve city banks for Comparability of figures for classes of banks is affected somewhat by reserve-requirement purposes has been based on size of bank (net demand changes in F.R. membership, deposit insurance status, and the reserve deposits of more than $400 million), as described in the Bulletin for classifications of cities and individual banks, and by mergers, etc. July 1972, p. 626. Categories shown here as “large” and “all other” For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 WEEKLY REPORTING BANKS □ MAY 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 Apr. 5............. 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 26.............. 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 1973 Mar. 7.............. 333,110 15,117 13,177 1,180 528 232 237,107 97,531 3,046 1,083 7,220 265 2,935 7,780 13,448 14.............. 332,122 12,848 11,495 933 322 98 238,627 98,547 3,056 641 7,254 239 2,937 7,863 13,776 21.............. 333,801 12,983 10,681 1,412 796 94 240,053 99,771 3,058 880 6,942 243 2,926 7,714 14,052 28.............. 333.755 12,561 11,436 837 171 117 240,541 99,872 3,073 712 6,792 241 2,926 7,926 14,320 Apr. 4*........... 334,632 12,912 11,658 849 214 191 241,461 100,316 3,094 1,148 6,584 242 2,919 7,892 14,533 11*........... 335,088 12,746 11,317 967 261 201 241,820100,833 3,108 856 6,584 210 2,925 7,842 14,530 18*........... 334,864 11,851 10,857 711 143 140 243,372101,931 3,124 570 6,177 211 2,932 7,943 14,768 25*............ 337.755 14,639 12,730 1,494 138 277 243,377101,901 3,119 497 6,220 212 2,964 7,902 14,646 New York City 1972 Apr. 5............. 61,456 1,026 917 109 46,227 25,291 28 532 4,365 48 615 2,177 2,017 12............. 60,340 487 465 22 45,562 25,182 28 482 4,147 45 615 2,031 2,016 19............. 61,125 1,166 1,115 43 45,815 25,197 27 510 4,393 45 625 1,892 2,034 26............. 59,949 1,414 1,365 10 31 45,254 25,110 28 349 4,138 49 627 1,889 1,999 1973 Mar. 7............. 70,302 1.164 1,090 43 56,098 28,183 55 950 4,395 43 658 2,359 4,041 14............. 70,230 1,029 905 103 56,428 28,556 57 498 4,555 42 658 2,371 4,196 21............. 71,266 1,535 1,459 50 56,508 28,850 56 714 4,235 43 649 2,196 4,236 28............. 70,687 1,509 1,433 60 56,378 28,688 56 589 4,124 45 649 2,397 4,363 Apr. 4*........... 70,913 1,438 1,324 45 56,683 28,846 53 1,004 3,848 43 650 2,331 4,512 11*........... 69,783 686 606 45 56,037 28,633 52 708 3,930 44 652 2,236 4,498 18*........... 69,641 1.164 997 146 55,842 28,729 55 463 3,660 46 652 2,276 4,508 25*........... 71,119 2,950 2,863 67 55,734 28,650 54 415 3,741 47 654 2,319 4,530 Outside New York City 1972 Apr. 5. 228,890 11,147 10,398 491 193 65 149,576 58,498 2,373 107 2,181 122 1,905 4,418 6,254 12. 229,761 10,871 9,706 843 194 128 150,264 58,747 2,380 125 2,156 122 1,909 4,607 6,280 19. 230,235 10,276 9,028 887 226 135 151,725 59,407 2,409 146 2,303 121 1,903 4,734 6,412 26. 227,936 8,677 7,841 606 149 81 151,928 59,554 2,428 117 2,120 145 1,893 4,635 6,401 1973 Mar. 7. 262,808 13,953 12,087 1,137 528 201 181,009 69,348 2,991 133 2,825 222 2,277 5,421 9,407 14. 261,892 11,819 10,590 830 322 77 182,199 69,991 2,999 143 2,699 197 2,279 5,492 9,580 21. 262,535 11,448 9,222 1,362 796 68 183,545 70,921 3,002 166 2,707 200 2,277 5,518 9,816 28. 263,068 11,052 10,003 777 171 101 184,163 71,184 3,017 123 2,668 196 2,277 5,529 9,957 Apr. 4*. 263,719 11,474 10,334 804 214 122 184,778 71,470 3,041 144 2,736 199 2,269 5,561 10,021 11*. 265,305 12,060 10,711 922 259 168 185,783 72,200 3,056 148 2,654 166 2,273 5,606 10,032 18*. 265,223 10,687 9,860 565 143 119 187,530 73,202 3,069 107 2,517 165 2,280 5,667 10,260 25*. 266,636 11,689 9,867 1,427 138 257 J187,643 73,251 3,065 82 2,479 165 2,310 5,583 10,116 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ WEEKLY REPORTING BANKS A 25 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 hanks— Total 1972 40,031 1,273 2,503 24,400 955 15,710 28,628 4,889 4,836 15,683 3,220 . Apr. 5 40,197 1,098 2,532 24,458 931 15,738 28,460 4,796 4,776 15,695 3,193 .........12 40,396 1,090 2,484 24,568 934 15,910 28,170 4,652 4,738 15,682 3,098 .........19 40,578 1,089 2,557 24,693 949 15,834 26,776 3,295 4,762 15,627 3,092 .........26 1973 47,052 3,208 28,484 1,238 18, £ 25,348 4,454 3,622 15,071 2,201 . Mar. 7 47,230 3,350 28,548 1,235 18,884 25,180 4,431 3,607 14,968 2,174 ..........14 47,379 3,379 28,581 1,253 18,615 25,267 4,608 3,778 14,768 2,113 .........21 47,501 3,358 28,709 1,263 18,701 25,373 4,900 3,816 14.608 2,049 .........28 47,489 3,269 4,789 28,808 1,216 19,162 25,960 5,513 3,861 14.609 1,977 .Apr. 4* 47,744 3,191 4,887 28,901 1,223 18,986 25,424 5,177 3,821 14,382 2,044 .........11* 47,997 3,303 4,915 29,051 1,234 19,216 24,840 4,687 3,790 14,310 2,053 .........18* 48,112 3,292 4,891 29,161 1,216 19,244 24,743 4,745 3,774 14,194 2,030 .........25 v New York City 1972 4,254 439 1,077 1,912 559 2,913 5,561 1,751 1,034 2,506 270 .............................Apr. 5 4,268 260 1,060 1,913 562 2,953 5,434 1,601 1,021 2,525 287 ........................................12 4,293 255 1 ,114 1 ,913 556 2,961 5,272 1,483 1,038 2,529 222 ........................................19 4,307 260 1,175 1,912 565 2,846 4,629 818 1,033 2,533 245 ........................................26 1973 5,221 1,195 2,211 738 3,899 4,032 959 508 2,280 285 .............................Mar. 7 169 1,311 2,268 739 3,853 4,078 1,125 479 2,214 260 ........................................14 217 1,282 2,398 739 3,734 4,237 1 ,275 525 2,242 195 ........................................21 239 1,299 2,287 741 3,737 4,204 1,410 560 2,087 147 ........................................28 140 1,318 2,099 2,161 717 3,961 4,646 1,838 571 2,148 .............................Apr. 4?’ 169 1,293 2,131 2,169 708 3,814 4,481 1,700 524 2,048 209 ........................................11* 232 1,325 2,165 2,176 707 3,848 4,191 1,523 494 1,980 194 ........................................18 p 225 1,309 2,127 2,181 707 3,775 3,947 1,390 528 1,860 169 ........................................25* Outside New York City 1972 35,777 834 1,426 22,488 396 12,797 23,067 3,138 3,802 13,177 2,950 .............................Apr. 5 35,929 838 1,472 22,545 369 12,785 23,026 3,195 3,755 13,170 2,906 .........................................12 36,103 835 1 ,370 22,655 378 12,949 22,1 3,169 3,700 13,153 2,876 .........................................19 36,271 829 1,382 22,781 384 12,988 22,147 2,477 3,729 13,094 2,847 .........................................26 1973 41,931 2,013 2,717 26,334 500 14,990 21,316 3,495 3,114 12,791 1,916 .............................Mar. 7 42,061 2,039 2,799 26,393 496 15,031 21,102 3,306 3,128 12,754 1,914 .........................................14 42,162 2,097 2,862 26,422 514 14,881 21,030 3,333 3,253 12,526 1,918 ..........................................21 42,262 2,059 2,860 26,545 522 14,964 21,169 3,490 3,256 12,521 1,902 ..........................................28 42,349 1 951 2,690 26,647 499 15,201 21,314 3,675 3,290 12,461 1, .............................Apr. 4 p 42,575 1 2,756 26,732 515 15,172 20,943 3,477 3,297 12.334 1,835 ..................................II* 42,765 1,978 2,750 26,875 527 15,368 20,649 3,164 3,296 12,330 1,859 ..................................18 * 42,887 1,983 2,764 26,980 509 15,469 20,796 3,355 3,246 12.334 1,861 ..........................................25 p For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ MAY 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 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 others pation4 Large banks— Total 1972 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 19......................... 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 1973 Mar. 7......................... 55,538 8,622 38,204 1,730 6,982 28,431 17,895 3,649 9,287 1.170 18,846 412,388 14......................... 55,467 8,632 38,133 1,765 6,937 29,482 20,192 3,920 9,050 1.172 18,941 414,879 21......................... 55,498 8,516 38,303 1,744 6,935 26,882 19,178 3,926 8,571 1.170 18,516 412,044 28......................... 55,280 8,349 38,328 1,738 6,865 26,867 20,321 4,037 9,272 1.172 18,853 414,277 Apr. 4*........................ 54,299 7,344 38,389 1,686 6,880 28,890 19,428 3,575 9,653 1,181 19,322 416,681 11?........................ 55,098 7,886 38,470 1,813 6,929 27,957 18,984 3,873 8,910 1.159 19,207 415,178 18*........................ 54,801 7,587 38,319 1,831 7,064 28,561 24,431 3,991 9,302 1.159 19,088 421,396 25 *........................ 54,996 7,671 38,361 1,802 7,162 28,072 19,239 4,152 9,399 1.160 19,406 419,183 New York City 1972 Apr. 5......................... 8,642 2.256 5,288 274 824 10,172 5,150 411 3,662 434 5,303 86,588 12......................... 8,857 2,324 5,386 270 877 10,481 5,410 436 2,650 435 5,222 84,974 19......................... 8,872 2.256 5,363 269 984 10,714 4,586 420 2,677 435 5,293 85,250 2 6 8,652 2,320 5,197 284 851 11,478 5,511 429 2,911 443 5,327 86,048 1973 Mar. 7......................... 9,008 2,166 5,331 510 1,001 9,367 4,966 451 3,858 609 6,030 95,583 14......................... 8,695 2,052 5,136 525 982 10,341 4,955 483 3,670 611 6,073 96,363 21......................... 8,986 2,060 5,446 510 970 8,810 4,334 466 3,213 609 5,972 94,670 28......................... 8,596 1,927 5,248 510 911 9,824 4,958 478 3,869 611 6,165 96,592 Apr. 4*........................ 8,146 1,344 5,350 478 974 9,003 4,878 446 3,768 618 95,990 11*........................ 8,579 1,727 5,288 524 1,040 8,961 5,093 475 3,355 592 94,491 18*........................ 8,444 1,586 5,231 540 1,087 8,515 7,370 460 3,777 591 96,516 25*........................ 8,488 1,598 5,258 536 1,096 9,342 4,851 475 4,012 590 6,401 96,790 Outside New York City 1972 Apr. 5......................... 45,100 6,934 31,633 1,273 5,260 20,030 15,863 2,961 5,507 499 11,343 285,093 12......................... 45,600 7,104 31,834 1.283 5,379 19,860 14,386 3,214 5,590 498 11,276 284,585 19......................... 45,336 6,940 31,713 1,289 5,394 19,733 15,766 3,279 5,242 498 11,196 285,949 26......................... 45,184 6,868 31,807 1.283 5,226 17,935 17,741 3,331 5,207 500 11,308 283,958 1973 Mar. 7......................... 46,530 6.456 32,873 1,220 5,981 19,064 12,929 3,198 5,429 561 12,816 316,805 14......................... 46,772 6,580 32,997 1,240 5,955 19,141 15,237 3,437 5,380 561 12,868 318,516 21......................... 46,512 6.456 32,857 1,234 5,965 18,072 14,844 3,460 5,358 561 12,544 317,374 28......................... 46,684 6.422 33,080 1,228 5,954 17,043 15,363 3,559 5,403 561 12,688 317,685 Apr. 4*....................... 46,153 6,000 33,039 1,208 5,906 19,887 14,550 3,129 5,885 563 12,958 320,691 11*....................... 46,519 6,159 33,182 1,289 5,889 18,996 13,891 3,398 5,555 567 12,975 320,687 18*....................... 46,357 6,001 33,088 1,291 5,977 20,046 17,061 3,531 5,525 568 12,926 324,880 25*....................... 46,508 6,073 33,103 1,266 6,066 18,730 14,388 3,677 5,387 570 13,005 322,393 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 o WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts. 2 divi­ mer­ sav­ Govts., mer­ cers* Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1972 149,108 104,431 6,622 5,061 22,083 917 757 2,559 6,678 144,190 57,811 61,408 17,197 2,183 5,146 .Apr. 5 147,023 106,145 6,466 2,938 20,750 832 766 2,516 6,610 144,928 57,633 61,671 17,929 2,193 5,067 .........12 148,943 105,148 6,275 6,675 19,983 775 746 2,505 6,836 145,770 57,315 61,736 18,996 2.150 5,141 ........19 146,768 102,707 6,347 7,472 19,941 735 732 2,585 6,249 146,743 57,279 62,264 19,467 2.150 5,140 , ........26 1973 150,278 106,553 6,420 6,287 20,240 698 864 3,084 6,132 170,276 58,213 79,895 21,436 2,990 7,075 .Mar. 7 150,969 109,812 5,880 4,991 19,733 674 909 2,711 6,259 172,379 58,299 81,633 21,735 2,954 7,109 .........14 147,836 105,659 6,393 6,961 18,777 679 799 3,061 5,507 173,107 58,426 81,708 21,825 3,175 7,324 .........21 149,421 105,786 6,582 7,258 19,059 653 858 3,123 6,102 174,302 58,591 82,599 21,789 3,336 7,316 ..........28 153,559 109,277 6,455 6,064 20,926 957 759 3,019 6,102 174,788 58,669 82,803 21,791 3,538 7,315 , .Apr. 4* 148,971 110,114 6,727 2,144 18,933 879 817 3,103 6,254 176,005 58,506 83,149 22,453 3,851 7,335 .........11* 152,923 110,686 6,373 6,389 18,729 795 918 3,097 5,936 175,340 58,150 82,498 22,904 3,711 7,350 .........18* 151,302 107,715 6,215 7,399 19,241 726 953 3,138 5,915 176,056 58,092 83,008 23,120 3,682 7,442 . .........25* New York City 1972 40,208 22,735 507 1,112 9,513 530 619 1,797 3,395 24,171 5,778 12,443 1,874 1,119 2,846 , .Apr. 5 38,746 22,816 520 487 8,748 473 621 1,753 3,328 24,647 5,765 12,745 2,097 1,141 2,808 .........12 39,802 23,156 388 1,690 8,279 419 607 1,726 3,537 24,929 5,725 12,880 2,258 1,109 2.859 . .........19 40,655 23,192 313 1,963 9,094 406 593 1,819 3,275 24,938 5,727 12,881 2,274 1,094 2.860 . .........26 1973 39,378 23,000 463 1,203 8,619 360 726 2,139 2,868 30,957 5,497 18,000 2,190 1,622 3,541 .Mar. 7 40,104 24,059 338 888 8,814 341 774 1,873 3,017 31,654 5,499 18,637 2,249 1,620 3,543 .........14 38,291 22,461 468 1.725 8,143 356 656 2,160 2,322 31,551 5,482 18,344 2,298 1,727 3,609 .........21 40,227 22,941 516 1.726 8,849 346 709 2,245 2,895 31,850 5,494 18,581 2,213 1,869 3,597 .........28 40,255 23,534 556 1,326 9,219 562 616 2,111 2,331 32,141 5,459 18,655 2,294 2,065 3,570 . .Apr. 4* 38,078 23,398 588 329 7,773 487 676 2,198 2,629 32,289 5,431 18,598 2,259 2,304 3.599 . .........11* 39,415 23,342 482 1,735 8,066 424 772 2,168 2,426 31,362 5,389 18,061 2,019 2,187 3.600 . .........18* 40,339 23,185 289 1,671 9,075 378 800 2,211 2,730 31,530 5,372 18,199 2,034 2,141 3,679 . .........25* Outside New York City 1972 108,900 81,696 6,115 3,949 12,570 387 138 762 3,283 120,019 52,033 48,965 15,323 1,064 2,300 .Apr. 5 108,277 83,329 5,946 2,451 12,002 359 145 763 3,282 120,281 51,868 48,926 15,832 1,052 2,259 , .........12 109,141 81,992 5,887 4,985 11,704 356 139 779 3,299 120,841 51,590 48,856 16,738 1,041 2,282 .........19 106,113 79,515 6,034 5,509 10,847 329 139 766 2,974 121,805 51,552 49,383 17,193 1,056 2,280 .........26 1973 110,900 83,553 5,957 5,084 11,621 338 138 945 3,264 139,319 52,716 61,895 19,246 1,368 3,534 .Mar. 7 110,865 85,753 5,542 4,103 10,919 333 135 838 3,242 140,725 52,800 62,996 19,486 1,334 3,566 .........14 109,545 83,198 5,925 5,236 10,634 323 143 901 3,185 141,556 52,944 63,364 19,527 1,448 3,715 . .........21 109,194 82,835 6,066 5,532 10,210 307 149 878 3,207 142,452 53,097 64,018 19,576 1,467 3,719 .........28 113,304 85,743 5,899 4,738 11,707 395 143 908 3,771 142,647 53,210 64,148 19,497 1,473 3,745 . • Apr. 4* 110,893 86,716 6,139 1,815 11,160 392 141 905 3,625 143,716 53,075 64,551 20,194 1,547 3,736 . .........11* 113,508 87,344 5,891 4,654 10,663 371 146 929 3,510 143,978 52,761 64,437 20,885 1,524 3,750 . .........18* 110,963 84,530 5,926 5,728 10,166 348 153 927 3,185 144,526 52,720 64,809 21,086 1,541 3,763 . .........25* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS a MAY 1973 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits 11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed 10 Total to to foreign justed9 IPC's others bran­ ches Large banks— Total 1972 Apr. 5........................ 29,691 41 1,192 15,437 4.132 27,820 195,388 277,758 91,762 32,845 19,839 13,006 1,130 12........................ 28,846 1,248 15,450 4,130 27,864 195,915 278,832 92,994 33,379 20,163 13,216 1,052 19........................ 27,237 238 1,211 15,812 4.132 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 4,139 27,811 196,978 277,590 89,942 34,332 20,800 13,532 1,374 1973 Mar. 7........................ 37,772 884 2,217 16,495 4.397 30,006 235,839 316,725 95,320 52,052 33,827 18,225 1,465 14........................ 36,816 1,588 2,383 16,335 4.400 29,946 236,630 317,277 96,763 53,864 35,468 18,396 1,419 21........................ 34,674 2,639 2,418 17,006 4,409 29,892 238,976 319,741 95,216 54,244 35,467 18,777 1,290 28........................ 35,705 1,598 2,329 16,539 4,391 29,929 238,308 318,961 96,237 55,183 36,284 18,899 1,127 Apr. 4?...................... 34,415 716 2,299 16,273 4,379 30,188 239,446 319,705 97,679 55,654 36,488 19,166 1,011 11^...................... 35,459 907 2,468 16,713 4.398 30,193 240,058 320,580 99,937 56,588 36,930 19,658 1,209 18?...................... 36,375 2,722 2,742 16,742 4.401 30,087 241,063 320,704 99,244 55,609 36,361 19,248 1,193 25p...................... 36,006 1,052 2,907 17,267 4,403 30,123 241,994 321,733 96,590 56,203 36,862 19,341 1,123 New York City 1972 Apr. 5........................ 7,799 192 5,944 1.205 7,069 45,897 60,100 19,411 11,365 7,286 4,079 732 12........................ 7,229 198 5,883 1.205 7,066 45,324 59,615 19,030 11,866 7,554 4,312 701 19........................ 5,r~ 161 196 6,037 1,209 7,028 45,611 59,755 19.119 12,292 7,806 4,486 981 26........................ 5,114 840 199 6,071 1,212 7,019 45,043 58,324 18.120 12,307 7,850 4,457 981 1973 Mar. 7........................ 9,002 148 845 6,372 1.264 7,617 54,977 68,017 20,189 18,195 12,663 5,532 915 14........................ 7,820 490 1,003 6,429 1.264 7,599 55,241 68,014 20,061 18,880 13,301 5,579 828 21........................ 7,271 1,080 976 6,651 1,272 7,578 55,302 68,525 19,613 18,716 12,997 5,719 996 28........................ 8.359 906 6,433 1,251 7,566 55,155 67,955 19,828 19,045 13,210 5,835 728 Apr. 4®...................... 7.360 924 6,407 1,236 7,667 55,479 68,271 20,707 19,218 13,105 ,113 638 \\p...................... 7,738 986 6,488 1,256 7,656 54,824 67,884 21,015 19,414 13,065 ,349 848 ISP...................... 8,406 800 1,242 6,424 1,260 7.607 54,684 67,319 21,099 18,554 12,560 ,994 909 25p...................... 7,887 1,383 6,779 1.264 7.608 54,512 66,947 20,251 18,711 12,724 ,987 869 Outside New York City 1972 Apr. 5........................ 21,892 1,000 9,493 2.927 20,751 149,491 217,658 72,351 21,480 12,553 8,927 398 12........................ 21,617 1,050 9,567 2,925 20,798 150,591 219,217 73,964 21,513 12,609 8,904 351 19........................ 21,349 77 1,015 9,775 2,923 20,758 152,138 220,372 72,719 21,672 12,674 8,998 298 26........................ 20,622 839 1,000 9,790 2.927 20,792 151,935 219,266 71,822 22,025 12,950 9,075 393 1973 Mar. 7........................ 28,770 736 1,372 10,123 3,133 22,389 180,862 248,708 75,131 33,857 21,164 12,693 550 14........................ 28,996 1,098 1,380 9,906 3.136 22,347 181,389 249,263 76,702 34,984 22,167 12,817 591 21........................ 27,403 1,559 1,442 10,355 3.137 22,314 183,674 251,216 75,603 35,528 22,470 13,058 294 28........................ 27,346 1,598 1,423 10,106 3.140 22,363 183,153 251,006 76,409 36,138 23,074 13,064 399 Apr. 4 p...................... 27,055 716 1,375 9,866 3,143 22,521 183,967 251,434 76,972 36,436 23,383 13,053 373 11 p...................... 27,721 907 1,482 10,225 3,142 22,537 185,234 252,696 78,922 37,174 23,865 13,309 361 18 p...................... 27,969 1,922 1,500 10,318 3.141 22,480 186,379 253,385 78,145 37,055 23,801 13,254 284 25 p...................... 28,119 1,052 1,524 10,488 3,139 22,515 187,482 254,786 76,339 37,492 24,138 13,354 254 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

MAY 1973 □ BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— Industry 1973 1973 1973 1972 1972 Apr. Apr. Apr. Apr. Mar. 2nd 1st 25 18 11 4 28 Apr. Mar. Feb. IV III half half Durable goods manufacturing: Primary metals................................. 2,133 2,125 2,116 2,106 2,140 -7 21 67 122 20 -99 -79 Machinery......................................... 5,731 5,759 5,559 5,483 5,411 320 378 321 808 496 -101 395 -172 Transportation equipment.............. 2,211 2,279 2,249 2,178 2,126 85 -44 -35 32 -173 -85 -258 -310 Other fabricated metal products... 2,108 2,128 2,069 2,018 1,995 113 161 68 236 -24 81 57 -14 Other durable goods........................ 3,604 3,602 3,561 3,479 3,453 151 258 304 549 -13 82 69 340 Nondurable goods manufacturing: Food, liquor, and tobacco........ 3,579 3,537 3,513 3,560 3,618 -39 129 130 171 640 187 827 -273 Textiles, apparel, and leather.......... 3,246 3,285 3,238 3,181 3,149 97 206 263 455 -351 185 -166 567 Petroleum refining........................... 1,202 1,227 1,145 1,151 1,195 7 117 -14 218 10 -24 -14 -183 Chemicals and rubber..................... 2,691 2,736 2,719 2,657 2,603 88 281 190 746 -9 -253 -262 -135 Other nondurable goods................. 1,944 1,934 1,922 1,892 1,897 47 83 75 203 -65 95 30 -158 Mining, including crude petroleum and natural gas........................... 3,993 3,959 3,843 3,939 3,960 33 121 -26 331 -33 58 25 -203 Trade: Commodity dealers................. 1,631 1,682 1,765 1,803 1,857 -226 -178 100 63 481 141 622 -504 Other wholesale...................... 5,113 5,117 5,106 5,114 5.038 75 122 266 384 61 155 216 5 Retail........................................ 5,821 5,821 5,697 5,642 5,635 186 345 378 635 166 307 473 405 Transportation..................................... 5,616 5,596 5,543 5,627 5,601 15 -24 66 11 235 -277 -42 -14 Communication................................... 2,177 2,182 2,168 2,105 2.038 139 -73 132 179 147 277 424 121 Other public utilities........................... 4,046 3,923 3,910 3,882 3,877 169 -31 257 291 531 408 939 -79 Construction........................................ 5,157 5,154 5,046 5,019 4,968 189 113 93 304 38 326 364 483 Services................................................. 9,826 9,825 9,775 9,689 9,674 152 341 263 542 558 -64 494 764 All other domestic loans..................... 7,119 7,067 7,034 6,968 6,807 312 330 498 972 168 71 239 -58 Bankers' acceptances........................... 1,144 1,181 1,212 1,256 1,321 -177 66 -15 -230 302 -202 100 -843 Foreign commercial and industrial loans.............................................. 4,333 4,370 4,357 4,496 4,460 -127 448 74 580 414 77 491 164 Total classified loans........................... 84,425 84,489 83,547 83,245 82,823 1,602 3,170 3,455 7,602 3,599 1,345 4,944 -9 Total commercial and industrial loans of large commercial banks*........ 101,901 101,931 100,833 100,316 99,872 2,029 3,622 3,936 8,769 4,472 1,677 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 1973 1972 1972 Industry Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. 2nd 25 28 28 31 27 29 25 27 30 I IV III II half Durable goods manufactur­ ing: Primary metals..................... 1,315 1,335 1,305 1,331 1,268 1,278 1,282 1,303 1,314 67 -35 -67 27 -102 Machinery............................ 2,555 2,313 2,300 2,264 2,154 2,034 1,907 1,905 1,963 159 249 -49 -113 200 Transportation equipment. 1,180 1,174 1,218 1,247 1,205 1,256 1,201 1,307 1,265 -31 -102 -52 -133 -154 Other fabricated metal products............................ 842 785 765 749 720 707 680 679 713 65 41 4 -11 45 Other durable goods........... 1,614 1,520 1,462 1,346 1,239 1,196 1,193 1,188 1,147 281 51 6 37 57 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,355 1,350 1,322 1,300 1,234 1,191 1,182 1,079 1,079 116 155 153 19 308 Textiles, apparel, and leather................................ 978 892 840 766 723 699 731 711 677 169 12 57 15 69 Petroleum refining............... 858 842 778 781 698 681 658 679 653 144 19 -15 -63 4 Chemicals and rubber........ 1,459 1,479 1,438 1,357 1.153 1,143 1,190 1,159 1,178 326 -6 -65 10 -71 Other nondurable goods.. 1,108 1,100 1,062 1,004 '894 913 939 918 879 206 -24 46 -106 22 Mining, including crude pe­ troleum and natural gas. 2,895 2,872 2,821 2,895 2,685 2,726 2,748 2,679 2,724 187 6 12 -205 18 Trade: Commodity dealers.. 136 150 125 125 121 121 123 107 107 29 14 -2 -17 12 Other wholesale..... 1,068 1,055 1,004 979 894 880 876 864 845 161 30 -19 -22 11 Retail............................ 1,947 1,823 1,733 1,663 1,592 1,588 1,497 1,444 1,376 231 148 146 -44 294 Transportation......................... 4,202 4,234 4,281 4,252 4,180 4,070 4.078 4,086 4,188 54 94 -219 -69 -125 Communication....................... 738 746 771 748 682 549 '537 561 510 64 121 64 63 185 Other public utilities............... 2,343 2,234 2,244 2,060 1,975 1,825 1,759 1,688 1,623 259 287 282 269 569 Construction............................ 1,800 1,709 1,626 1,622 1,558 1,528 1,520 1,550 1,456 151 8 142 -13 150 Services...................................... 4,417 4,339 4,173 4,106 4,026 3,999 3,951 3,862 3,826 313 164 143 45 307 All other domestic loans .... 2,061 1,871 1,779 1,698 1,597 1,532 1,459 1,554 1,471 274 43 131 -260 174 Foreign commercial and in­ dustrial loans................... 2,410 2,567 2,327 2,356 2,366 2,264 2,177 2,143 2,069 201 223 105 94 328 Total loans................................ *37,281 36,390 35,374 34,649 32,964 32,180 31,688 31,466 31,063 3,426 1,498 803 -477 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 and industrial loans amount­ an original maturity of more than 1 year and all outstanding loans granted ing to about 90 per cent of such loans held by all weekly reporting banks under a formal agreement—revolving credit or standby—on which the and about 70 per cent of those held by all commercial banks. original maturity of the commitment was in excess of 1 year. For description of series see article “Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 DEMAND DEPOSIT OWNERSHIP □ MAY 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 in in a e n s c s ial Consumer Foreign o A th U er IPC All commercial banks: 1970—June................................................................................. 17.1 85.3 49.0 1.6 9.6 162.5 17.0 88.0 51.4 1.4 10.0 167.9 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................. 18.3 86.3 54.4 1.4 10.5 170.9 18.1 89.6 56.2 1.3 10.5 175.8 17.9 91.5 57.5 1.2 9.7 177.9 18.5 98.4 58.6 1.3 10.7 187.5 1972—Mar................................................................................. 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 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar.®............................................................................. 18.7 102.9 65.1 1.7 11.7 200.1 Weekly reporting banks: 1971—Dec.................................................................................. 14.4 58.6 24.6 1.2 5.9 104.8 1972—Mar................................................................................. 14.0 55.9 25.0 1.2 6.0 102.1 14.3 56.9 27.0 1.2 5.9 105.4 13.7 56.2 25.4 1.2 5.7 102.1 June................................................................................ 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 13.6 57.4 26.0 1.3 5.7 104.0 13.7 59.0 26.2 1.3 6.2 106.4 14.1 60.0 26.2 1.3 6.1 107.8 14.5 60.5 26.7 1.3 6.2 109.2 14.7 64.4 '27.1 1.4 6.6 114.3 1973—Jan.................................................................................. 15.0 63.1 27.8 1.4 6.8 114.1 Feb.................................................................................. 14.3 60.3 26.3 1.6 6.5 109.0 Mar.p............................................................................. 14.4 59.0 26.5 1.6 6.4 107.9 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1969 1971 1972 1972 bank 1969 1971 1972 1972 All commercial......................... 1,131 680 595 559 All member—Cont. Insured................................... 1,129 677 592 554 Other large banks 1........... 304 112 73 69 National member.................. 688 387 340 311 All other member 1............ 571 371 346 313 State member......................... 188 95 79 71 All nonmember...................... 255 197 177 177 All member............................... 876 482 419 381 253 195 173 172 Noninsured......................... 2 2 3 5 i Beginning Nov. 9,1972, designation of banks as reserve city banks for Note.—These hypothecated deposits are excluded from Time deposits reserve-requirement purposes has been based on size of bank (net demand and Loans at commercial banks, as shown in the tables on pp. A-18, A-19, deposits of more than $400 million), as described in the Bulletin for and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as “large” and “all other” parallel bottom of p. A-17. These changes resulted from a change in Federal the previous “reserve city” and “country” categories, respectively (hence Reserve regulations. See June 1966 Bulletin, p. 808. the series are continuous over time). These deposits have not been deducted from Time deposits and Loans for commercial banks as shown on pp. A-20 and A-21 and on pp. A-22 and A-23 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 31 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 1973—Jan. 3.......... 2,736 1,774 962 1,858 365 1,493 10........... 2,750 1,818 932 1,790 307 1,483 17........... 2,690 1,803 887 1,775 296 1,479 24........... 2,690 1,774 916 1,819 299 1,520 31........... 2,608 1,733 875 1,824 298 1,526 Feb. 7........... 2,640 1,710 930 1,841 308 1,533 14........... 2,695 1,753 942 1,839 308 1,531 21........... 2,946 2,050 896 1,841 304 1,537 28........... 3,116 2,072 1,044 1,848 296 1,552 Mar. 7........... 3,013 1,985 1,028 1,879 310 1,569 14 , 3,136 1,958 1,178 1,869 288 1,581 21.......... 3,000 1,882 1,118 1,863 290 1,573 28 *■ 3,161 1,997 1,164 1,872 295 1,577 Apr. 4........... 3,428 2,065 1,363 1,838 285 1,553 11........... 3,553 2,241 1,312 1,846 279 1,567 18 3,566 2,357 1,209 1,823 286 1,537 25........... 3,614 2,319 1,295 1,816 284 1,532 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 comoanv Daoer 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 "*3jo78 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—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 Nov................ 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................. 34,721 930 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 21,380 6,564 2,384 1,825 560 141 198 3,841 2,337 1,948 2,279 Feb................. 35,196 956 9,968 2,160 22,112 6,734 2,328 1,765 563 233 239 3,934 2,311 2,113 2,310 Mar................ 34,052 993 8,366 2,463 22,230 6,859 2,269 1,777 492 165 282 4,143 2,091 2,399 2,368 ^ 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 32 INTEREST RATES □ MAY 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1956— A Ap u r g . . 2 1 1 3. . . . . .. .. .. .. . . . . . . . . . 4 33/4 1970—M Se a p r t. . 2 2 1 5 8 7}i 1972—Feb. 28, 434/83^^1«/2- 1972—Oct. 4 2 , . 5 5V V i i - - 5 - 3 5 / 3 4 4 - Nov. 12 IVa Mar. 13, 4%-4%- 11, 53/4- 1957—Aug. 6........... 4% 23 7 23, 4Ya* 16. 534--57/8 Dec. 22 6Va 27. 434*^7/8-5 1958—Jan. 22........... 4 Nov. 6, 53/4- Apr. 21........... 3 Vi 1971—Jan. 6, 6Vi Apr. 3, 43/4«-5 20. 53/4--57/8 Sept. 11............ 4 15 6Va 5, 5- 18 6 17. 5--5V4 Dec. 26. 534 m~6 1959—May 18........... 4Vi Feb. 16 5Va 27, 534-6- Sept. 1............. 5 Mar. 11 514-5 Vi May 1. 5--51/8-5U 19 5Va 30. 5m 1973—Jan. 4 1960—Aug. 23........... 4Vi Apr. 23, 51/4-5 Vi June 12. 5--5K Feb. 2 6--614 1965—Dec. 6........... 5 May 11 5Vi 26. 5-5V4* 14. 6- July 6, 5Vi-6 26. 6--614 1966—Mar. 10........... 5Vi 7, 6 July 3. 51/4--53/8 27. 61/4- June 29........... 534 Oct. 20 5Va 10, 51/4--53/8- 6 51/2 Mar. 19 6V4--634 Nov. 1 5VA*-5y8 17. 5i/4--5Vi 26 61/2- 1967—Jan. 26-27.... 514-534 4, 5Vl»-5% 31, 5V4--53/8- Mar. 27........... 5Vi 8, 5Vi* 51/2 April 18 61/2-634 . Nov. 20........... 6 22 53/g-5Vi- Aug. 11 5V4--53/8 19, 634- 29 5^-5^- 14 514- 1968—Apr. 19........... 6Vi 21, 5V&--53/8 Sept. 25........... 6-6V4 Dec. 6 51,4-53/8- 25, 51/4--53/8- D N e o c v . . 1 2 3. . . . . . . . . . . . . . . . . . . . . . 6 6 V V4 i 27 5% 5 V -5 i* % - 29, 514 51-/2 53/8- 18........... 634 31 5V4- 51/2- 1969—Jan. 7........... 7 1972—Jan. 3 5-51/8-51/4- Sept. 4 51/4-51/2- Mar. 17........... m 17 43/4-5-5i/4« 5 51/2* June 9............. 8 Vi 24 4%~434-5- 11 51/2--55/8 31 41/2-434.-5 25, 51/2--55/8- 534 Note.—Beginning Nov. 1971, several banks adopted a floating prime Effective April 16, 1973, with the adoption of a two tier or “dual prime rate keyed to money market variables. ■ denotes prime rate charged by the rate,” this table shows only the “large-business prime rate,” which is the major commercial banks. range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing. RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1--9 10-99 100-499 500-999 1,000 and over Center Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1973 1972 1973 1972 1973 1972 1973 1 1972 1973 1972 1973 1972 Short-term 35 centers......................................... 6.52 6.33 7.63 7.52 7.29 7.10 6.83 6.60 6.52 6.24 6.30 6.14 New York City.......................... 6.22 6.09 7.39 7.34 7.08 6.79 6.59 6.27 6.33 6.01 6.13 6.05 7 Other Northeast..................... 6.89 6.61 8.00 7.78 7.53 7.35 7.04 6.78 6.93 6.41 6.65 6.39 8 North Central......................... 6.45 6.27 7.26 7.22 7.16 6.96 6.83 6.57 6.35 6.17 6.27 6.11 7 Southeast.................................. 6.76 6.56 7.73 7.64 7.33 7.15 6.89 6.74 6.65 6.38 6.41 6.21 8 Southwest................................. 6.63 6.36 7.48 7.38 7.16 6.97 6.72 6.52 6.53 6.27 6.38 6.04 4 West Coast............................... 6.56 6.41 7.88 7.79 7.42 7.31 6.82 6.71 6.38 6.30 6.32 6.24 Revolving credit 35 centers......................................... 6.40 6.11 7.24 6.87 7.03 6.81 6.58 6.47 6.41 6.27 6.40 6.05 New York City.......................... 6.53 6.01 7.07 7.51 6.87 6.35 6.56 6.27 6.40 6.19 6.53 5.99 7 Other Northeast..................... 6.38 6.22 7.51 6.26 7.09 6.92 6.69 6.23 6.47 6.09 6.32 6.21 8 North Central......................... 6.25 6.12 8.50 8.14 7.14 6.86 6.54 6.42 6.29 6.35 6.18 6.03 7 Southeast.................................. 7.24 6.20 6.00 5.97 5.95 6.55 6.41 7.93 5.84 7.67 5.75 8 Southwest................................. 6.83 6.50 7.65 6.98 7.17 6.76 6.74 6.75 ' 6.86* 6.55 6.82 6.36 4 West Coast.............................. 6.37 6.14 7.25 7.14 7.13 6.90 6.57 6.42 6.36 6.29 6.32 6.08 Long-term 35 centers......................................... 7.11 6.67 7.50 7.43 7.49 7.15 7.31 6.82 7.13 6.76 7.06 6.61 New York City.......................... 6.90 6.26 6.64 7.14 7.00 7.03 7.09 6.08 6.47 5.78 6.91 6.29 7 Other Northeast..................... 7.08 6.74 7.28 7.37 7.66 7.10 7.49 6.70 6.89 6.66 6.94 6.73 8 North Central......................... 7.04 7.35 7.34 6.94 7.60 7.09 7.24 7.29 7.02 7.90 6.98 7.30 7 Southeast.................................. 8.29 7.79 7.38 9.67 7.05 7.15 8.67 7.51 7.76 7.88 8.71 8.25 8 Southwest................................. 7.88 6.72 8.20 6.81 7.97 7.14 7.37 7.20 6.62 6.17 8.45 6.76 4 West Coast.............................. 7.17 6.38 7.73 7.42 7.22 7.44 6.98 6.67 8.24 6.77 7.06 6.27 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

MAY 1973 □ INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities4 Prime Finance commercial CO. Prime Fed­ paper i paper bankers’ eral 3-month bills5 6-month bills5 9- to 12-month issues 5 Period placed accept­ funds 3- to 5directly, ances, rate3 year 90-119 4- to 6- 3- to 6- 90 days 1 Rate Market Rate Market 1-year issues7 days months months2 on new yield on new yield bill (mar­ Other 6 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—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 Mar.. 6.76 6.85 6.45 6.82 7.09 6.054 6.09 6.430 6.51 6.53 6.81 6.85 Apr.. 7.13 7.14 6.76 6.97 7.12 6.289 6.26 6.525 6.52 6.51 6.79 6.74 Week ending- 1973—Jan. 6.. 5.63 5.63 5.38 5.38 5.61 5.163 5.16 5.396 5.42 5.44 5.61 6.16 13.. 5.63 5.63 5.40 5.43 5.66 5.155 5.19 5.412 5.47 5.45 5.70 6.22 20.. 5.78 5.78 5.53 5.58 5.86 5.277 5.40 5.540 5.63 5.52 5.80 6.27 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 10.. 6.50 6.53 6.23 6.65 7.02 5.879 5.85 6.272 6.29 6.35 6.56 6.84 17.. 6.75 6.85 6.38 6.83 7.13 5.997 6.05 6.440 6.56 6.56 6.84 6.90 24.. 6.95 7.08 6.60 7.00 6.96 6.334 6.31 6.759 6.70 6.69 7.02 6.91 31.. 7.00 7.13 6.75 7.00 7.11 6.251 6.29 6.632 6.67 6.66 6.99 6.79 Apr. 7., 7.13 7.18 6.78 7.00 7.18 6.531 6.45 6.814 6.68 6.63 6.98 6.77 14. 7.13 7.13 6.78 6.98 6.84 6.187 6.20 6.268 6.40 6.41 6.77 6.67 21. 7.13 7.13 6.75 6.88 7.23 6.187 6.16 6.389 6.43 6.42 6.70 6.73 28. 7.13 7.13 6.75 7.00 7.14 6.251 6.23 6.630 6.56 6.56 6.70 6.79 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

A 34 INTEREST RATES □ MAY 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total 1 States ( t l e o r n m g ) ­ Total i Aaa Baa New ce R n e tl ­ y 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 Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 196 3 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 5.68 196 4 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 5.54 196 5 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 196 9 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.51 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—Ap r 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—Ja...........n 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 Mar.. . . 6.20 5.30 5.07 5.58 7.49 7.62 7.29 8.03 7.43 7.94 7.64 7.03 2.83 Apr........ 6.11 5.17 4.95 5.42 7.46 7.47 7.62 7.26 8.09 7.43 7.98 7.64 7.11 2.90 Week ending— 1973—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 10. 6.18 5.29 5.05 5.55 7.59 7.27 7.99 7.38 7.94 7.63 6.97 2.79 17. 6.22 5.34 5.10 5.65 7.52 7.61 7.29 8.01 7.41 7.95 7.64 7.04 2.78 24. 6.24 5.35 5.10 5.65 7.45 7.63 7.31 8.05 7.46 7.96 7.64 7.06 2.89 31. 6.18 5.30 5.10 5.60 7.65 7.31 8.08 7.48 7.94 7.66 7.06 2.87 Apr. 7. 6.16 5.26 5.05 5.50 7.51 7.50 7.63 7.27 8.11 7.46 7.96 7.65 7.16 2.94 14. 6.09 5.09 4.85 5.35 7.47 7.63 7.25 8.10 7.44 7.98 7.63 7.09 2.84 21. 6.07 5.13 4.90 5.40 7.52 7.62 7.25 8.10 7.42 8.00 7.63 7.11 2.87 28. 6.10 5.20 5.00 5.45 7.45 7.42 7.62 7.26 8.05 7.40 8.00 7.63 7.09 2.96 Number of issues2........... 10 20 5 5 121 20 30 41 30 40 14 500 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; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample of non- Note.—Annual yields are averages of monthly or quarterly data. callable issues—12 industrial and 2 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: 1 Begins June 30, 1965, at 10.90. On that day the average price of a share 1 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 2 Series revised beginning Jan. 1973; hence data are not strictly com­ computed as follows: U.S. Govt, bonds, derived from average market parable with earlier figures. yields in table on p. A-33 on basis of an assumed 3 per cent, 20-year bond. Municipal and corporate bonds, derived from average yields as Note.—Compiled by Federal Home Loan Bank Board in cooperation computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20- with Federal Deposit Insurance Corporation. Data are weighted averages year bond; Wed. closing prices. Common stocks, derived from com­ based on probability sample survey of characteristics of mortgages ponent common stock prices. Average daily volume of trading, normally originated by major institutional lender groups (including mortgage conducted 5 days per week for 5% hours per day, or 27 % hours per week. companies) for purchase of single-family homes. Data exclude loans for In recent years shorter days and/or weeks have cut total weekly trading refinancing, reconditioning, or modernization; construction loans to to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- homebuilders; and permanent loans that are coupled with construction Mar. 1,20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- loans to owner-builders. Series beginning 1965, not strictly comparable 22.5; 1970—Jan. 2-May 1, 25. with earlier data. See also the table on Home-Mortgage Yields, p. A-5 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ SECURITY MARKETS A 35 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 change ( G t l U e o o r . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d 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 i NYSE AMEX 1963............................ 86.31 111.3 96.8 69.87 73.39 37 58 64.99 8.52 4,573 1,269 1964............................ 84.46 111.5 95.1 81.37 86.19 45 46 69.91 9.81 ■4* 888 11570 1965............................ 83.76 110.6 93.9 88.17 93.48 46 78 76.08 12.05 6,174 2,120 1966............................ 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 1967............................ 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 1968............................ 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 1969............................ 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 1970............................ 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 1971............................ 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—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—Jan.................. 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 25.35 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 Mar................ 63.59 84.1 65.2 112.42 126.05 39.29 55.94 60.15 66.20 40.92 39.13 72.32 24.59 15,564 2,966 Apr................. 64.39 85.7 64.9 110.27 123.56 35.88 55.34 58.67 64.41 40.57 38.97 69.42 24.02 13,900 2,981 Week ending— 1973—Apr. 7 63.95 84.8 65.0 109.20 122.31 39.18 54.89 58.26 63.95 40.58 38.50 69.76 24.16 12,415 2,889 14, .. 64.56 86.2 65.0 112.08 125.70 39.56 55.58 59.65 65.57 41.92 39.16 70.90 24.17 15,235 3,103 21, .. , 64.70 86.0 64.9 111.52 124.99 39.26 55.82 59.29 65.10 41.48 39.45 69.81 24.08 13,157 2,692 28......... 64.44 85.9 64.7 109.20 122.32 37.94 55.26 57.97 63.63 39.07 38.95 67.98 23.77 14,461 3,159 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 t a u r r s i ) ty L r c p ( a o e p r t i n a e i c n o t r e ) / (t d h c o p o P h l r u u l 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 & i s M (y a e t a u r r s i ) ty L c r p ( a o e p r t n i a e i c t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o s a a u . r n n s o ) t f 1965.......................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966.......................... 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967.......................... 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968.......................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969.......................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970.......................... 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1971.......................... 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 1972......................... 7.45 .88 27.2 76.8 37.3 28.1 7.38 .81 25.7 76.0 33.4 25.0 1972—Mar.............. 7.38 .84 27.2 76.2 37.7 28.2 7.31 .77 25.1 75.6 32.7 24.4 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............... 7.51 .92 27.5 78.0 37.9 29.0 7.45 .86 26.4 76.8 34.0 25.7 1973—Jan. 2........... 7.52 1.03 25.7 76.6 35.8 27.0 7.53 .94 23.2 75.2 30.5 22.6 Feb.r........... 7.52 1.15 26.8 78.6 35.9 27.6 7.55 1.03 23.6 77.5 29.2 22.0 Mar.............. 7.52 1.09 26.9 78.5 35.7 27.5 7.53 1.00 23.9 77.2 29.5 22.4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT □ MAY 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—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 Feb................ '8,620 7,753 '867 7,480 '800 248 '50 25 '17 '1,954 1,508 431 1,770 Mar............... 8,344 7,465 879 7,197 813 244 48 24 18 1,917 1,566 442 1,719 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 Federal Reserve System’s list of OTC margin Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data stocks. At banks, loans to purchase or carry nonmargin stocks are un­ for member firms of the NYSE. June data for banks are universe totals; regulated; at brokers, such stocks have no loan value. all other data for banks represent estimates for all commercial banks 4 Includes loans to purchase or carry margin stock if these are unsecured based on reports by a reporting sample, which accounted for 60 per cent or secured entirely by unrestricted collateral (see Dec. 1970 Bulletin). of security credit outstanding at banks on June 30, 1971. 5 Free credit balances are in accounts with no unfulfilled commitments 2 In addition to assigning a current loan value to margin stock generally, to the brokers and are subject to withdrawal by customers on demand. Regulations T and U permit special loan values for convertible bonds and 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 a o la ta n l c 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 1972—Mar........................ 35.8 56.0 8.1 5,990 1972—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 35.8 49.8 14.4 5,770 Feb.. 7,480 5.3 7.8 14.7 23.9 22.5 25.6 36.3 47.9 15.7 5,790 Mar.. 7,200 5.7 7.5 15.9 23.1 22.7 25.1 Note.—Special miscellaneous accounts contain credit balances that 1 See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 a SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 End of period M ga o g r e t­ Other G U o .S vt . . S 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 li T a a t b o i n e i t d s l a i l ­ D i e t p s o 2 s­ l O ia t t i b e h i s e li r ­ G r c e o e s a u n e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 general 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................ 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................. 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 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.... 67,563 2,979 3,510 873 21,906 1,644 2,117 100,593 91,613 2,024 6,956 1,593 713 609 1,624 4,539 1973—Feb.... 68,352 4,030 3,419 986 22,389 1,331 2,070 102,577 92,949 2,540 7,088 1,729 862 732 1,480 4,803 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross of organizations and nonguaranteed issues of U.S. Govt, agencies. valuation reserves basis. The data differ somewhat from balance sheet 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits data previously reported by National Assn. of Mutual Savings Banks accumulated for payment of personal loans” were excluded from “Time which were net of valuation reserves. For most items, however, the dif­ deposits” and deducted from “Loans” at all commercial banks. These ferences are relatively small. changes resulted from a change in Federal Reserve regulations. See table (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30. Note.—NAMSB data; figures are estimates for all savings banks in 3 Commitments outstanding of banks in New York State as reported to the United States and differ somewhat from those shown elsewhere in the Savings Banks Assn. of the State of New York. Data include building the Bulletin; the latter are for call dates and are based on reports filed loans beginning with Aug. 1967. with U.S. Govt, and State bank supervisory agencies. LIFE INSURAN<;e companies (In millionsof dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total United State and Foreign 1 Total Bonds Stocks gages estate loans assets States local Statement value: 1963 , 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964 , 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965., 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966.. 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 1967, 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 1968. 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 1966.. 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967., 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968. 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. 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* 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 12,720 223,768 11,102 4,546 3,366 3,190 101,734 80,487 21,247 75,493 6,932 17,130 11,377 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 Oct.................................. 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 1973- 241,022 11,191 4,389 3,358 3,444 114,526 88,371 26,155 77,481 7,366 18,080 12,378 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book Note.—Institute of Life Insurance estimates for all life insurance values are not made on each item separately but are included in total, in companies in the United States. “Other assets.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 SAVINGS INSTITUTIONS □ MAY 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o g r e t s ­ I s n i m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other2 lia T b o il t i a ti l e s S c a a v p i i n ta g l s R a d p n e i r v s d o e i f d r u i v e t n s e d ­ s m ro B o w n o e e r y ­ d 3 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 1 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. ^ 206,387 *21,821 *2,670 12,693 243,571 207,305 *14,740 9.847 6,225 *5,454 3,169 11,333 ^ Table is not being updated in this issue pending changes in composi­ 4 Insured savings and loan assns. only. Data on outstanding commit­ tion of component items expected to be shown in the Bulletin for June. ments are comparable with those shown for mutual savings banks (on 1 U.S. Govt, securities only through 1967. Beginning 1968 the total preceding page) except that figures for loans in process are not included reflects liquid assets and other investment securities. Included are U.S. above but are included in the figures for mutual savings banks. Govt, obligations, Federal agency securities, State and local govt, securi­ 5 Balance sheet data for all operating savings and loan associations ties, time deposits at banks, and miscellaneous securities, except FHLBB were revised by the FHLBB for 1969 and 1970. stock. Compensating changes have been made in “Other assets.” 2 Includes other loans, stock in the Federal home loan banks, other Note.—FHLBB data; figures are estimates for all savings and loan investments, real estate owned and sold on contract, and office buildings assns. in the United States. Data are based on monthly reports of insured and fixtures. See also note 1. assns. and annual reports of noninsured assns. Data for current and 3 Consists of advances from FHLBB and other borrowing. preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a b A n t e e o d c m rs ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s 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 a o g n r ) e s t­ D n t a e u ( o L n b r t e e d e ) s s n­ c L a o t ( o o i t A v o a p ) e n e s s r­ D t e u (L b re e ) s n­ c L o a d ( o u A n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1967, 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968. 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972--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 Feb... 7,944 2,421 106 7,220 1,323 1,891 20,181 19,402 2,936 2,188 6,179 5,969 9,387 8,280 Mar.. 8,420 1,938 108 7,220 1,291 1,943 20,571 19,985 2,896 2,188 6,414 6,076 9,591 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 on opposite page. Loans are gross of valuation reserves Bonds, debentures, and notes are valued at par. They include only publicly and represent cost for FNMA and unpaid principal for other agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 o FEDERALLY SPONSORED CREDIT AGENC A ISSUES OF FEDERALLY SPONSORED AGENCIES, MARCH 31, 197 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: 400 Debentures: 10/2/72-4/2/73... 5.40 380 450 6/10/71 -9/10/73......... 6.13 350 11/1/72-5/1/73... 5.45 336 600 12/10/70 - 12/10/73. . 5.75 500 12/4/72 - 6/4/73... 5.30 360 300 8/10/71 - 12/10/73.... 7.15 500 1/2/73 - 7/2/73.... 5.60 443 250 12/11/72 - 12/10/73 .. 6.00 200 2/1/73 - 8/1/73.... 5.95 569 300 12/1/71 - 3/11/74___ 5.45 400 10/1/70 - 10/1/73. 7.30 100 300 4/10/70 - 3/11/74___ 7.75 350 700 8/5/70 - 6/10/74........ 7.90 400 180 11/10/71 -6/10/74.... 5.70 350 credit banks 400 9/10/69 - 9/10/74.... 7.85 250 Debentures: 225 2/10/71 - 9/10/74......... 5.65 300 7/3/72 - 4/2/73. 4.80 489 250 5/10/71 - 12/10/74.... 6.10 250 8/1/72- 5/1/73.. 5.05 563 265 9/10/71 - 12/10/74.... 6.45 450 9/5/72-6/4/73.. 5.00 508 300 11/10/70 - 3/10/75... 7.55 300 10/2/72- 7/2/73. 5.60 373 350 10/12/71 - 3/10/75... 6.35 600 9/1/70-7/2/73.. 5.55 200 400 4/12/71 -6/10/75......... 5.25 500 11/1/72-8/1/73. 5.65 540 300 10/13/70 - 9/10/75... 7.50 350 12/4/72 - 9/4/73. 5.45 491 200 3/12/73 -9/10/75......... 6.80 650 1/2/73 - 10/1/73. 5.70 591 300 3/10/72 - 12/10/75... 5.70 500 2/1/73 - 11/1/73. 6.00 544 350 3/11/71 - 3/10/76......... 5.65 500 3/1/73 - 12/3/73. 6.15 529 200 6/10/71 -6/10/76......... 6.70 250 7/1/71 - 1/2/74.. 6.85 212 200 2/10/72 - 6/10/76......... 5.85 450 1/4/71 - 7/1/74. 5.95 224 11/10/71 -9/10/76.... 6.13 300 5/1/72 - 1/2/75.. 6.05 240 6/12/72-9/10/76......... 5.85 500 1/3/72-7/1/75. . 5.70 302 7/12/71 - 12/10/76.... 7.45 300 3/1/73 - 1/5/76. . 6.65 261 12/11/72- 12/10/76... 6.25 500 2/13/62 - 2/10/77. 41/2 198 1 9/11/72- 3/10/77......... 6.30 500 Bonds: 150 12/10/70 - 6/10/77. . . 6.38 250 2/20/63 - 2/20/73-78. 4K 148 200 5/10/71 -6/10/77......... 6.50 150 4/20/72-4/23/73......... 5.20 433 350 9/10/71 -9/12/77......... 6.88 300 1/20/70 - 7/20/73___ 8.45 198 140 10/12/71 - 12/11/78.. 6.75 300 8/20/73 - 7/20/73........ 7.95 350 150 6/12/72-9/10/79......... 6.40 300 4/20/70 - 10/22/73... 7.80 300 150 12/10/71 - 12/10/79.. 6.55 350 10/23/72- 10/23/73... 5.80 462 2/10/72 - 3/10/80......... 6.88 250 7/20/72 - 1/21/74___ 5.55 450 2/16/73 - 7/31/80......... 5.19 1 2/20/72 - 2/20/74.... 155 2/16/73 - 7/31/80........ 3.18 9 10/20/70 - 4/22/74. .. 7.30 354 1/16/73 - 10/30/80.... 5.47 5 9/15/72-4/22/74......... 5.85 350 12/11/72- 12/10/80... 6.60 300 10/21/71 - 7/27/74... 5.85 326 3/14/73 - 1/15/81......... 3.58 53 4/20/71 - 10/21/74.... 5.30 300 3/14/73 - 1/15/81......... 5.48 6 2/20/70 - 1/20/75___ 220 1,435 6/29/72 - 1 /29/81......... 6.15 156 4/20/65 - 4/21/75.... 200 3/12/73 - 3/10/81......... 7.05 350 2/15/72-7/21/75......... 5.70 425 250 3/21/73 - 5/1/81........... 4.50 18 7/20/71 - 10/20/75.... 7.20 300 200 3/12/73 - 5/1/81........... 5.77 2 4/20/72 - 1/20/76......... 6^ 300 249 1/21/71 - 6/10/81____ 7.25 250 2/21/66 - 2/24/76.... 5.00 123 250 9/10/71-9/10/81........ 7.25 250 1/22/73 - 4/20/76......... 6% 373 6/28/72-5/1/82............ 5.84 58 7/20/66 - 7/20/76.... 5H 150 2/10/71 - 6/10/82......... 6.65 250 10/27/71 - 10/20/77.. 6.35 300 9/11/72-9/10/82......... 6.80 200 5/2/66 - 4/20/78......... 5^ 150 3/11/71 -6/10/83......... 6.75 200 7/20/72 - 7/20/78 6.40 269 250 11/10/71 -9/12/83.... 6.75 250 2/20/67- 1/22/79......... 5.00 285 200 4/12/71 -6/11/84......... 6.25 200 9/15/72-4/23/79......... 6.85 235 146 12/10/71 - 12/10/84. . , 6.90 250 10/23/72- 10/23/79... 6.80 400 350 3/10/72 - 3/10/92.... 7.00 200 1/22/73 - 1/21/80......... 6.70 300 550 6/12/72-6/10/92......... 7.05 200 2/23/71 -4/20/81......... 6.70 224 300 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 40 FEDERAL FINANCE □ MAY 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public : 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 notes3 ing ing Special Other balance issues Fiscal year: 1969........................... 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 1970........................... 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 1971........................... 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 1972........................... 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—Mar............... '15,224 r20,329 -5,105 3,312 -100 -683 97 r3.797 591 84 1,983 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 16,748 21,165 -4,4P 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 Feb................ 18,067 20,227 -2,160 4,770 -9 780 119 3,863 408 -212 -1,507 Mar............... 15,987 20,806 -4,820 3,768 27 584 206 3,005 1,152 -83 2,883 Selected balances Treasury operating balance Federal securities Memo: pe E o r n i f o d d B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S is p G I s e n u c o v e i v a s e t l s L , t m e a s c e s c n : o t O u s n t o h ts f e r S n L p o e e t s c e s i s a : 3 l E p T h q u b o e u b y t l l a d a i l l c s : s c p p D o G o r N r e i n o p v b o s v s a t w o . t t — . r o e - e 6 f d Fiscal year: 1969.......................... 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 1970........................... 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 1971........................... 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 1972........................... 2,344 7,934 5 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41,044 Calendar year: 1971........................... 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 39,860 1972........................... 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 42.640 Month: 1972—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 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 42.640 1973—Jan................ 2,749 8,317 310 11,376 450,068 11,787 95,024 23,332 825 342,674 43,057 Feb................ 2,073 9,401 310 11,784 454,838 11,779 95,804 23,451 825 346,537 43,472 Mar.............. 2,882 9,744 309 12,935 458,606 11,806 96,413 23,632 825 349,542 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

MAY 1973 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o ta n x s es Period Employment Total W he i l t d h­ w N 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 co P ro t n a a y l t x l r ­ i e b s u a t S i n e o d l n f - s1 i e n U m s n u p - r l . . c O e n r i t 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 . 3 taxes empl. Fiscal year: 1969........................................ 187,78470,18227,25810,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 1970....................................... 193,74377,41626,236 13,24090,41235,037 2,208 37,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 1971....................................... 188,39276,49024,262 14,52286,23030,320 3,535 39,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 1972........................................ 208,64983,20025,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,437 53,914 15,477 3,287 5,436 3,633 Half year: 1971—Jan.-June................. 100,808 39,02518,693 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—Mar............................ '15,224 '7,784 1,323 5,200 '3,906 4,995 273 3,787 167 71 325 4,350 1,130 264 602 '250 Apr............................ 24,534 6,599 8,650 3,284 11,985 5,145 250 3,877 1,153 343 283 5,655 1,091 215 372 342 May.......................... 17,275 8,141 1,413 2,997 6,557 967 234 5,281 223 1,636 303 7,443 1,371 235 461 475 June........................... 25,589 8,020 3,704 670 11,054 8,452 185 3,682 64 92 285 4,122 1,363 252 388 144 July........................... 15,207 7,052 548 245 7,355 1,258 187 3,727 260 289 4,277 1,442 237 334 492 Aug............................ 18,213 8,175 362 157 8,380 855 190 5,367 1,175 307 6,849 1,351 278 423 266 Sept............................ 22,183 7,305 3,794 95 11,005 5,289 324 3,529 145 63 302 4,038 1,327 237 316 295 Oct............................. 14,738 7,187 469 61 7,595 1,287 323 3,225 15 210 311 3,759 1,387 281 409 343 Nov............................ 16,748 8,425 257 69 8,613 853 294 4,044 637 287 4,969 1,452 284 487 383 Dec............................. 18,972 7,915 353 61 8,206 5,772 140 2,601 5 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 Feb............................. 18,067 8,404 768 1,104 8,067 865 193 5,900 167 684 278 7,029 1,186 255 568 289 Mar............................ 15,987 8,748 1,494 6,833 3,409 5,208 342 4,771 186 63 320 5,340 1,244 278 489 360 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 ' 6................... 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 72,617 -4,039 Month: 1972—Ma r '20,329 '7,160 '360 310 16 265 '878 342 933 7,111 1.045 '1,800 '402 -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 7 2,617 -2,474 1973—Ja................n 23,630 6,633 82 271 994 -1,053 1,546 483 808 8,130 1,157 1,777 586 2,514 -297 Feb............. 20,227 6,265 280 241 431 230 567 368 904 7,907 1.046 2,002 374 9 -397 Mar............ 20,806 6,963 323 301 -77 310 1,072 270 786 7,565 1,064 2,097 462 -329 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 42 U.S. GOVERNMENT SECURITIES □ MAY 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 ss p u 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 F is o su re e i s g n 4 b S o 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—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 Mar. 458.6 360.4 269.8 105.0 120.2 44.6 2.3 88.3 28.3 59.0 96.4 Apr. 457.1 358.9 267.8 103.2 120.2 44.5 2.3 88.7 28.5 59.3 96.4 1 Includes non-interest-bearing debt (of which $620 million on Apr. 30, 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 io o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u .S v c d s 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 d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 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 24.4 51.9 23.9 14.3 22.4 1969—Dec................. 368.2 89.0 57.2 222.0 56.8 2.9 7.1 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—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 61.0 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 60.5 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 60.0 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 Feb.................. 454.8 117.1 72.6 265.1 62.4 2.6 5.8 12.7 29.0 58.3 16.6 61.1 16.7 Mar................. 458.6 117.9 74.3 266.4 61.6 2.5 5.9 13.0 28.9 58.6 16.6 63.1 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

MAY 1973 o U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 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—Feb. 28............................................................. 269,881 130,205 105,008 25,197 95,423 22,357 16,114 5,783 Mar. 31............................................................. 269,775 130,187 104,991 25,196 95,425 22,356 16,059 5,748 U.S. Govt, agencies and trust funds: 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—Feb. 28.................................................... 19,779 1,756 552 1,204 7,096 4,956 4,487 1,484 Mar. 31.................................................... 20,040 1,751 554 1,197 7,207 4,992 4,592 1,498 Federal Reserve Banks: 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—Feb. 28.................................................... 72,620 38,668 31,901 6,767 28,209 4,143 1,490 109 Mar. 31.................................................... 74,276 40,268 33,539 6,729 28,288 4,133 1,477 110 Held by private investors: 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—Feb. 28..................................................... 177,482 89,781 72,555 17,226 60,118 13,258 10,137 4,190 Mar. 31..................................................... 175,459 88,168 70,898 17,270 59,930 13,231 9,990 4,140 Commercial banks: 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—Feb. 28............................................ 48,691 15,023 7,570 7,453 28,559 3,996 1,045 69 Mar. 31............................................ 47,837 14,807 7,640 7,167 28,010 4,018 928 74 Mutual savings banks: 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—Feb. 28............................................ 2,556 518 225 293 1,232 308 350 148 Mar. 31............................................ 2,517 503 234 269 1,231 294 352 136 Insurance companies: 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—Feb. 28............................................ 5,037 746 287 459 1,188 849 1,648 607 Mar. 31............................................ 5,106 828 371 457 1,188 857 1,661 574 Nonfinancial corporations: 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—Feb. 28............................................ 5,644 4,282 3,154 1,128 1,210 95 54 3 Mar. 31............................................ 5,850 4,446 3,190 1,256 1,258 85 59 1 Savings and loan associations: 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—Feb. 28............................................ 2,925 912 548 364 1,314 387 238 74 Mar. 31............................................ 2,838 849 496 353 1,309 388 219 74 State and local governments: 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—Feb. 28............................................ 11,234 6,562 5,596 966 2,157 729 1,236 551 Mar. 31............................................ 11,195 6,635 5,727 908 2,103 711 1,217 529 All others: 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—Feb. 28............................................ 101,395 61,738 55,175 6,563 24,458 6,894 5,566 2,738 Mar. 31............................................. 100,116 60,100 53,240 6,860 24,831 6,878 5,554 2,752 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 5,617 commercial banks, 480 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 738 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 466 nonfinancial corporations and 486 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 44 U.S. GOVERNMENT SECURITIES □ MAY 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 securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1972—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 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 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 Feb.................................. 4,155 2,975 721 370 89 r888 r808 1,360 '1,099 '645 Mar................................. 3,077 2,311 508 201 57 713 585 987 792 664 Week ending— 1973—Mar. 7......................... 3,133 2,436 410 221 66 736 565 995 837 527 14......................... 3,084 2,234 538 248 64 693 637 995 759 497 21......................... 3,061 2,198 604 213 47 734 650 970 708 725 28......................... 2,804 2,193 437 122 53 709 432 914 749 841 Apr. 4......................... 3,503 2,808 480 166 49 676 677 1,208 943 649 11......................... 3,594 2,739 573 224 58 890 760 1,184 761 1,182 18......................... 2,968 2,237 518 173 40 643 666 1,042 616 606 25......................... 2,917 2,543 252 83 39 612 474 962 869 576 i Since Jan. 1972 has included transactions of dealers and brokers in They do not include allotments of, and exchanges for, new U.S. Govt, securities other than U.S. Govt. securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), Note.—The transactions data combine market purchases and sales of or similar contracts. Averages of daily figures based on the number of U.S. Govt, securities dealers reporting to the F.R. Bank of New York. trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1972—Mar................. 4,933 4,710 228 -32 27 489 1972—Mar............. 4,662 1,347 907 949 1,458 Apr.................. 3,573 3,713 20 -131 -29 422 3,400 1,044 746 657 953 May................. 4,257 4,089 84 102 -18 551 May............ 4,073 1,107 931 755 1,280 June................. 3,733 3,903 -55 -99 -16 532 June............ 3,804 1,056 838 804 1,108 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 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 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 Feb.................. 3,394 3,365 -9 -1 39 '202 3,415 1,063 455 490 1,408 Mar................. 2,702 3,130 -274 -143 -11 180 Mar............ 2,799 903 292 281 1,323 Week ending— Week ending— 1973—Feb. 7......... 3,729 4,051 -81 -318 77 139 1973—Feb. 7... 3,792 1,336 462 534 1,461 14 , 4,238 3,615 256 304 64 221 14... 3,663 1,025 739 531 1,368 21......... 2,735 2,650 -33 113 5 266 21... 2,899 868 216 400 1,416 28......... 2,910 3,051 -130 -20 9 199 28... 3,307 1,025 401 495 1,387 Mar. 7......... 2,477 2,827 -245 -90 -15 150 Mar. 7... 2,665 869 222 342 1,233 14......... 2,399 2,834 -284 -140 -11 135 14. .. 2,557 900 205 326 1,125 21......... 2,688 3,169 -315 -149 -18 182 21... 2,677 1,000 184 156 1,338 28......... 3,040 3,523 -296 -178 -9 235 28. .. 2,910 857 354 277 1,423 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

MAY 1973 □ U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, APRIL 30, 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 May 3, 1973. 4.303 Oct. 4, 1973.... 1,801 Dec. 31, 1974.. ...57/8 2,102 Aug. 15, 1973.....4 3,894 M M M a a a y y y 2 1 1 4 7 0 , , , 1 1 1 9 9 9 7 7 7 3 3 3 . . . 4 4 4 . . . 3 3 3 0 0 0 1 3 4 O O O c c c t t t . . . 2 1 1 3 8 1 , , , 1 1 1 9 9 9 7 7 7 3 3 3 . . . . . . . . . . . . 1 1 1 , , , 8 8 8 0 0 0 1 2 0 A F F e e p b b r . . . 1 1 5 5 1 , , , 1 1 9 9 7 7 5 5 . .. . . . . . . . . . 5 5 .1 7 3 % / 4 8 4 1 , , 0 2 1 2 5 2 8 N F M e o a b v y . . 1 1 1 5 5 5 , . , 1973....• • . 4 4 4 1 1 1/ / 4 s s 2 4 2 , , , 4 3 8 6 3 5 7 7 0 May 31, 1973. 6,005 Oct. 25, 1973.... 1.799 May 15, 1975.....57/8 1,776 Nov. 15, .37/8 1,214 June 7, 1973. 4,287 Nov. 20, 1973 1,802 May 15, 1975... . .6 6,760 May 15, 1975-85..414 1,204 June 14, 1973. 4.302 Dec. 18, 1973.... 1.800 Aug. 15, 1975.....57/8 7,679 June 15, 1978-83..314 1,497 June 21, 1973. 4,306 Jan. 15, 1974.... 1,804 Oct. 1, 1975.., 30 Feb. 15, 1980.....4 2,578 J Ju u n ne e 2 2 8 2, , 1 1 9 9 7 7 3 3 f . 2 4. , 3 5 0 1 5 0 F M e a b r . . 1 1 2 2 , , 1 19 9 7 7 4 4 . . . . . . . . 1 1 , , 8 7 0 9 1 0 F N e o b v . . 1 1 5 5, , 1 1 9 97 7 6 5 . . , . , . .. . . . 6 7 14 3 3 , , 7 1 3 1 9 5 N Au o g v . . 1 1 5 5, , 1 19 9 8 8 1 0. , .. , . , • 3Vi 1,8 8 9 0 8 7 June 30, 1973. 1.701 Apr. 9,1974.... 1,802 Feb. 15, 1976.. ...57/8 4,945 Feb. 15, 1982....•63/8 2,702 July 5, 1973. 4.303 Apr. 1, ...1% 27 Aug. 15, .63/8 2,353 July 12, 1973. 4.303 May 15, 1976.. ...534 2,802 May 15, 1985.....314 981 July 19, 1973. 4.304 May 15, 1976......6i/i 2,697 Nov. 15, 1986.....61/8 1,216 July 26, 1973. 4,300 Aug. 15, 1976......71/4 4,194 Aug. 15, 1987-92..414 3,742 July 31, 1973. 1.702 Treasury notes Aug. 15, 1976., ...61/2 3,883 Feb. 15, 1988-93..4 237 Aug. 2, 1973. 1,801 May 15, 1973..........7*/4 5,844 Oct. 1, 1976..,...1% 11 May 15, 1989-94..41/8 1,498 Aug. 9, 1973. 1,801 May 15, 1973..........4*4 3,792 Nov. 15, 1976..,,..614 4,325 Feb. 15, 1990,, ,• 31,4 4,164 Aug. 16, 1973. 1.803 Aug. 15, 1973..........8H 1,839 Feb. 15, 1977...,. .8 5,163 Feb. 15, 1993 ,. ,•634 627 Aug. 23, 1973. 1,801 Oct. 1, 1973............m 30 Apr. 1,1977..,...1% 5 Feb. 15, 931 Aug. 28, 1973. 1.803 Feb. 15, 1974.........7% 2,960 Aug. 15, 1977.....734 2,264 Nov. 15, .31/2 3,288 Aug. 30, 1973. 1,800 Apr. 1, 1974............U£ 34 Oct. 1, 1977... • • Wi 17 S S e e p p t t . . 1 6 3 , , 1 1 9 9 7 7 3 3 . . 1 1, , 8 8 0 0 1 0 A M u a g y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 . . . . . . . . . . . . . . . . . . 5 7 5 V / a s 1 4 0 , , 3 2 3 8 4 4 A Fe p b r . . 15 1, , 1 19 9 7 7 8 8 . .. . .. .. . . . 1 6 V 1/ 4 4 8,3 * 89 onvertiblebonds Sept. 20, 1973. 1,801 Sept. 30, 1974.........6 2,060 Nov. 15, 1978... . .6 8,207 Investment Series B Sept. 25, 1973. 1,801 Oct. 1, 1974............11/2 42 Aug. 15, 1979...,..614 4,559 Apr. 1, 1975-80..234 2,290 Sept. 27, 1973. 1,807 Nov. 15, 1974..........534 5,442 Nov. 15, 1979..,...65/g 1,604 + Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. * Less than $500,000. 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 deliv­ Special ered5 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State d s i 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 tie ti s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1964................. 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965................. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966................. 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967................. 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968................. 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969................. 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 1970................. 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971................. 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972—Mar.. . 2,239 1,289 720 225 5 434 954 851 2,110 463 134 348 329 838 Apr___ 1,989 1,382 601 6 472 549 969 1,950 490 229 434 10 788 May... 2,017 990 1,023 3 374 850 792 1,950 657 214 306 67 705 June... 2,270 989 1,064 209 8 246 1,226 799 2,000 347 150 533 393 576 July. .. 1,805 1,322 481 2 647 467 690 1,796 327 121 223 154 971 Aug.. . 1,966 820 1,138 8 468 897 600 1,931 444 111 429 162 784 Sept.. . 1,726 663 803 257 4 298 1,016 414 1,609 238 107 590 270 404 Oct.. .. 2,200 1,662 533 5 487 689 1,025 2,147 444 162 409 52 1,082 Nov.. . 1,862 1,147 711 5 425 572 866 1,762 312 215 365 56 814 Dec__ 1,797 872 653 268 4 147 754 895 1,507 351 21 204 332 599 1973—Jan.r.. 1,978 1,149 826 3 602 452 924 1,847 369 215 418 117 729 Feb.. 1,481 766 714 1 47 552 824 1,381 365 63 399 10 544 Mar.. . 2.353 1,217 821 310 5 613 872 868 2,100 371 152 426 355 797 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 46 SECURITY ISSUES □ MAY 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o .S vt . . an S d t a lo te c al Others Total Govt.2 agency3 (U.S.)* 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 1972—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 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............ 9,505 2,530 1,141 1,970 74 3,791 2,336 1,772 565 421 1,033 Nov........... 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 1973—Jan.r........ 6,563 1,199 993 1,889 99 2,384 1,333 989 344 137 913 Feb............ 7,247 1,603 2,261 1,445 45 1,894 923 641 282 150 204 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e l r la 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 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967................................................... 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 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 1972—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......................................... 269 114 192 326 152 12 522 758 313 58 887 187 Nov....................................... 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 1973—Jan.'..................................... 110 63 88 105 134 1 526 371 30 3 445 509 Feb........................................ 169 65 13 110 83 4 319 277 55 84 284 461 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

MAY 1973 □ SECURITY ISSUES A 47 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--I................... 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 IV................. 10,944 2,932 8,012 6,998 2,207 4,790 3,946 725 3,220 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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 IV................. 116 290 575 479 179 47 1,056 1,735 944 89 1,920 580 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- teraal 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 i 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—Mar... 472 667 -195 58,740 3,251 55,489 Apr.. . 405 655 -250 58,870 2,827 56,043 1961............... 2,951 1,160 1,791 22,789 980 21,809 May.. 378 585 -207 59,736 2,763 56,973 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 June.. 393 544 -151 57,708 3.015 54,693 1963............... 2,460 1,504 952 25,214 1,341 23,873 July .. 398 424 -26 56,932 3,219 53,713 Aug... 391 582 -191 58,186 3.375 54,811 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Sept... 310 442 -132 57,193 3,395 53,798 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Oct... 384 411 -27 57,525 3,719 53,806 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Nov... 387 645 -258 59,854 3,549 56,305 Dec.. . 449 619 -170 59,831 3,035 56,796 1967................ 4,670 2,745 1,927 44,701 2,566 42,135 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 1973—Jan. .. 535 666 -131 56,946 3.015 53,931 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Feb... 327 530 -203 54,083 3.375 50,708 Mar... 519 531 -12 53,377 3,774 49,603 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 48 BUSINESS FINANCE □ MAY 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 s r ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a n a t l i l s 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 i l s o l 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—1.... 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 1972................ 94.3 41.3 53.0 26.4 26.6 67.7 III... 95.7 41.8 53.9 26.5 27.3 68.4 IV'.. 101.5 44.3 57.2 26.7 30.5 69.5 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 . .1 Other taxes 1968................................ 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 1969................................ 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—1........................... 187.0 477.8 46.1 10.4 4.7 195.0 189.6 32.1 290.8 7.2 191.0 13.3 79.3 II......................... 185.6 481.8 45.6 8.7 4.4 197.9 191.8 33.4 296.2 7.0 196.0 10.8 82.4 Ill....................... 185.3 484.6 46.5 7.1 4.2 201.0 193.5 32.3 299.3 6.8 196.7 11.5 84.3 IV....................... 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971—1........................... 192.0 494.1 48.5 7.8 4.2 201.3 198.5 33.8 302.1 6.1 195.7 13.7 86.6 II......................... 196.5 498.2 51.1 7.7 3.9 203.3 199.2 33.1 301.7 5.3 195.8 12.4 88.3 Ill....................... 200.9 507.2 52.4 7.8 3.9 206.5 201.6 34.9 306.3 5.0 197.4 13.8 90.1 IV....................... 204.9 516.7 55.3 10.4 3.5 207.5 203.1 36.8 311.8 4.9 202.8 14.5 89.7 1972—1........................... 209.6 526.0 55.3 9.9 3.4 211.4 207.2 38.9 316.4 4.9 202.5 15.7 93.3 II......................... 215.2 534.3 55.7 8.7 2.8 216.3 210.7 40.1 319.1 4.9 204.0 13.4 96.8 Ill........................ 219.3 545.5 57.3 7.6 2.9 222.5 215.2 39.8 326.2 4.7 207.6 15.0 98.9 IV........................ 224.3 561.1 60.3 9.7 3.4 228.9 218.2 40.7 336.8 4.0 216.9 16.7 99.2 Note: Based on Securities and Exchange Commission estimates. 1 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 Period Total Durable d N ur o a n bl ­ e Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other1 A T (S o . . R t A a . . ) l 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......................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 19732....................... 100.62 18.70 18.31 2.64 1.68 2.38 1.52 16.87 2.95 13.40 22.16 1971—1................... 17.68 3.11 3.58 .49 .34 .34 .28 2.70 .41 2.50 3.94 79.32 II................... 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 Ill................. 20.14 3.40 3.91 .55 .42 .39 .37 3.35 .71 2.62 4.42 80.75 IV................. 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—1................... 19.38 3.29 3.32 .58 .48 .50 .32 3.19 .44 2.72 4.55 86.79 II................. 22.01 3.71 3.92 .61 .48 .73 .39 3.61 .62 2.95 4.98 87.12 Ill................. 21.86 3.86 3.87 .59 .38 .61 .35 3.67 .72 2.84 4.97 87.67 IV................. 25.20 4.77 4.61 .63 .47 .63 .40 4.01 .73 3.39 5.57 91.94 1973—12................. 21.56 3.91 3.99 .61 .45 .54 .35 3.45 .48 7.77 96.97 112................ 25.27 4.69 4.64 .67 .45 .74 .44 4.02 .72 8.89 100.13 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

MAY 1973 □ REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p i r ly o p a e n r d ti es5 M t o y r p tg e a 6 ge End of All Finan­ All Finan­ Other All period h e o r l s d­ tu i t n c i i o s a t n l i ­ s 1 a U c g i . e e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h e o r l s d­ tu i t n c i i o s a t n l i ­ s 1 h e o r l s d 3 ­ h e o r l s d­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ w u F V n r H i d A t A t e e - r n - - t C v io 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—1*... 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 III*. 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 29.4 123.7 259.2 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 30.3 126.6 269.2 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 31.4 129.0 279.9 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 agencies—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) Governmenit- All residential Multifamily i u;nderwritte;n Con­ E pe n r d io o d f Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i c n in i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in re A - d - an g V t u e A a e r - d ­ i ti v o e n n a ­ l tutions tutions 18.6 4.3 4.1 .2 14.3 1941................. 24.2 14.9 9.4 5.9 3.6 2.2 182.2 65.9 35.0 30.9 116.3 1945................. 24.3 15.7 8.6 5.7 3.5 2.2 1964.................................. 197.6 69.2 38.3 30.9 128.3 1963................ 211.2 176.8 34.5 29.0 20.7 8.3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 1965.................................. 212.9 73.1 42.0 31.1 139.8 1966.................................. 223.6 76.1 44.8 31.3 147.6 1965................. 250.1 213.2 36.9 37.2 29.0 8.2 236.1 79.9 47.4 32.5 156.1 1966................. 264.0 223.7 40.3 40.3 31.5 8.8 251.2 84.4 50.6 33.8 166.8 1967................. 280.0 236.6 43.4 43.9 34.7 9.2 266.8 90.2 54.5 35.7 176.6 1968................. 298.6 250.8 47.8 47.3 37.7 9.7 280.2 97.2 59.9 37.3 182.9 1969................. 319.0 265.0 54.0 52.2 41.3 10.8 1970................. 338.2 277.1 61.1 58.0 45.8 12.2 1970—IV.......................... 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 37.3 185.3 290.9 100.4 62.8 37.6 190.5 1971—1*......... 343.3 281.4 61.8 59.7 47.1 12.6 Ill*....................... 299.7 102.9 64.4 38.5 196.8 II*.... 353.1 289.9 63.2 62.1 49.2 12.9 IV*........................ 307.8 105.2 65.7 39.5 202.6 Ill*... 364.0 298.4 65.6 64.3 50.4 13.9 IV*.... 374.7 306.1 68.6 66.8 52.0 14.9 314.1 107.5 66.8 40.7 206.6 II*......................... 324.6 109.6 67.6 42.0 215.0 1972—I*......... 382.9 312.9 70.0 68.8 53.3 15.4 335.8 111.5 68.4 43.1 224.3 II*.... 395.8 324.1 71.7 71.3 55.3 16.0 III*. .. 408.9 335.6 73.3 73.8 57.3 16.5 i Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. i Structures of five or more units. Note.—Based on data from same source as for “Mortgage Debt Out­ est N im o a t t e e . s — . F F o o r r c t o o n ta v l e n d ti e o b n t a l, o u fi t g s u ta r n es d i a n r g e , de fi r g iv u e re d s . are FHLBB and F.R. standing** table. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT □ MAY 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 24 196 4 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40.556 36,487 12,287 11,121 13,079 4,016 53 196 5 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12.033 19,146 6,592 117 196 9 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—III. 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21.654 7,671 103 IV.. 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—1... 74,424 46,343 7,971 2,595 35,777 23,595 4,486 58,680 50,553 16,157 12,010 22,386 8,014 113 11.. 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 8,174 107 III. 79,936 50,280 8,246 2,806 39,228 25,500 4,156 60,625 51,989 16,216 12.033 23,740 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 11.. 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 III. 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV* 99,314 62.782 8,495 3,203 51,084 31,751 4,781 67.556 57,140 16,013 12,622 28,505 10,354 62 1 Includes loans held by nondeposit trust companies, but not bank Note.—Second and fourth quarters, Federal Deposit Insurance Corpo­ trust depts. ration series for all commercial and mutual savings banks in the United 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. States and possessions. First and third quarters, estimates based on special F.R. interpolations after 1963 or beginning 1964. 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 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 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 1971................................................... 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 1972—Jan.'..................................... 469 441 39 16 386 28 75,493 69,947 10,722 4,985 54,240 5,546 Feb........................................ 436 392 26 12 354 44 75,456 69,940 10,674 4,952 54,314 5,516 Mar....................................... 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 Nov....................................... 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 1973—Jan........................................ 711 649 16 20 613 62 77,481 71,856 9,901 4,630 57,325 5,625 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

MAY 1973 □ REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period N of u l m oa b n e s r ( c m o ( a i d m m l o l m i l o o la u i n t r n s t s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t r n a e t c t r r e e e a s n c t t t ) (y M rs a ./ t m ur o it s y .) (p t L o e ra r - o v t c a i a e n o l n - u t e ) C ( a p t p e io i r t n a c l e r i n z a t a t ) e ­ co D r v a e e ti r b o a t ge P co e n r s c t e a n n t t 1968............................. 2,569 3,244.3 1,263 7.66 22/11 73.6 9.0 1.30 9.5 1969............................. 1,788 2,920.7 1,633 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 10.4 146 257.3 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 9.6 246 399.6 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 o e m w e Home FHA VA- Con­ Total t S e h rm or t 1 ­ t L e o rm ng ­ 2 period) con­ pur­ Total 2 in­ guar- ven­ struc­ chase sured 3anteed 3 tional tion 278 213 195 176 19 46 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 1,036 196 4 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1,527 4,076 4,386 3,985 401 1,432 196 5 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968......................... 2,734 1,861 5,259 4,867 392 1,382 196 6 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 2,331 196 7 20,122 4,243 9,604 121,805 5,791 6,351 109,663 2,714 5,392 7,936 3,002 4,934 1,789 196 8 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 2,104 196 9 21,847 4,757 11,254 140,347 7,917 7,658 124,772 197 0 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1972—Mar............. 165 689 5,992 2,125 3,867 2,008 197 1 39,472 6,835 18,811 174,385 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 June............. 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 12,010 158,543 Oct............... 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 1973—Jan............... 332 480 7,831 2,805 5,025 1,306 Oct... 4,522 761 2,423 200,554 15,378 13,334 171,842 Feb.............. 415 302 7,944 2,774 5,170 1,321 Nov.. 4,393 714 2,307 203,266 15,490 13,544 174,232 Mar............. 764 288 8,420 2,975 5,446 1,290 Dec.r 4,591 667 2,167 206,387 15,639 13,764 176,964 1973—Jan... 3,705 592 1,971 208.145 29,571 178,574 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 1958, includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaran­ teed by the Federal Home Loan Mortgage Corporation and certain other related items. 3 Beginning 1973, data for these groups available on combined basis only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ MAY 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 (during Date of auction Mortgage Average Mortgage Average End of period) amounts yield amounts yield period (short­ (short­ Total F su H in re A ­ d - a g n V u t A e a e r - - d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Offered ce A p c te ­ d c m o te e m r n m m ts i ) t­ Offered ce A p c te ­ d c m o te m e r n m m ts i ) t­ 196 7 5,522 4,048 1,474 1,400 12 1.732 501 In millions of In In millions of In 196 8 7,167 5,121 2,046 1,944 2,696 1,287 dollars per cent dollars per cent 196 9 10,950 7,680 3,270 4,121 6,630 3,539 197 0 15,502 11,071 4,431 5,078 8,047 5,203 1 1 9 9 7 7 2 1 1 1 9 7 . . 7 7 9 9 1 1 14.624 5'iii* 3 3 , , 5 6 7 8 4 4 2 3 1 3 3 6 4,986 5,694 1972—Nov. 1 6 3 . . 78.7 49.2 7.72 75.0 68.0 7.90 27. 60.8 36.2 7.70 1972-Mar.. 18,342 13,654 4,687 316 79 469 5,608 Apr.. 18,403 13,744 4,659 246 70 617 5,851 Dec. 4.. 36.4 30.9 7.87 May. 18,599 13,923 4,674 321 7 1,054 6,153 11.. 82.2 42.4 7.68 June. 18,628 13,952 4,670 223 29 610 6,362 26.. 108.7 66.3 7.69 July.. 18,740 14,013 4,714 258 3 515 6,471 Aug.. 19,023 14,188 4,816 427 466 6,309 1973—Jan. 2. 39.3 25.5 7.84 Sept.. 19,295 14,380 4,888 401 755 6,451 74.2 61.3 7.69 Oct. . 19,438 14,462 4,939 265 887 6,654 22... 107.0 92.1 7.70 Nov.. 19,619 14,558 5,016 315 388 6,562 Dec.. 19.791 14.624 5,112 307 1,086 5,440 Feb. 5., 128.7 65.4 7.71 6. 100.9 62.9 7.89 1973-Jan... 19,982 r14,743 r5,170 225 29 392 6,943 20. 110.3 71.6 7.73 Feb.. 20,181 14,872 5,223 218 493 6,911 21., 66.0 49.6 7.92 Mar.. 20,571 15,201 5,259 326 708 6,993 Mar. 5.. 170.8 107.7 7.75 6.. 60.3 44.3 7.95 Note.—Federal National Mortgage Assn. data. Total holdings include 19.. 297.3 168.7 7.81 conventional loans. Data prior to Sept. 1968 relate to secondary market 21.. 86.8 56.4 8.02 portfolio of former FNMA. Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Mortgage commitments made during Apr. 2. 234.6 145.9 145.9 the period include some multifamily and nonprofit hospital loan commit­ 3. 111.9 81.6 8.11 ments in addition to 1- to 4-family loan commitments accepted in FNMA’s 16. 216.6 190.7 190.7 free market auction system, and through the FNMA-GNMA Tandem 17. 111.0 Plan (Program 18). Note.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commit­ ment fees and FNMA stock purchase and holding requirements. Begin­ ning Oct. 18, 1971, the maturity on new short-term commitments was extended from 3 to 4 months. Mortgage amounts offered by bidders are total eligible bids received. GOVERNMENT NATIONAL MORTGAGE 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 F su H in re A ­ d - a g n V u t A e a e r - ­ d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ received issued 197 0 1,126.2 452.4 1,315.0 197 1 4,373.6 2,701.9 300.0 196 7 3,348 2,756 592 860 1,045 1,171 197 2 3,854.5 2,661.7 196 8 4,220 3,569 651 1,089 1 867 1,266 196 9 4,820 4,220 600 827 615 1,131 1972—Mar. 528.3 322.5 197 0 5,184 4,634 550 621 897 738 Apr., 187.8 275.1 197 1 5,294 393 May. 216.4 212.9 500.0 197 2 5.113 June. 245.8 193.2 July. 135.5 145.8 1972-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 Feb., 167.2 216.8 Nov.. 5,152 Mar. 339.4 139.9 Dec.. 5.113 1973-Jan.. 5,117 Note.—Government National Mortgage Assn. data. Under the Mort­ Feb.. 4,984 gage-Backed Security Program, GNMA guarantees the timely payment Mar.. 4,663 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 i . o r T t o o t a S l e h p o t. l d 1 in 96 g 8 s T Fe o d e d r a a t l e H , o b m on e d L -t o y a p n e M se o c r u t r g i a ti g e e s C h o av rp e or b a e t e io n n . 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 Reconstruction Finance Corporation Mortgage company, 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

MAY 1973 □ REAL ESTATE CREDIT A 53 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 e B ct B iv e s e r r a i t e e s ) i ( H s F e H U ri A e 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 om ew es h is o E t m i x n ­ e g s jects i m pr i e m o n v ­ t e s ­ 2 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 1,776 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 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 1971............. 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 1972—Mar.............. 7.52 7.44 7.55 7.45 1972............. 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 Apr.............. 7.51 7.42 7.60 7.50 May............. 7.53 7.46 7.60 7.53 1972—Mar.. 1,293 349 449 441 54 667 235 432 June............. 7.55 7.49 7.60 7.54 Apr.. 945 272 381 241 51 516 173 343 July............. 7.58 7.50 7.65 7.54 May. 913 259 369 229 56 613 189 424 Aug.............. 7.59 7.52 7.65 7.55 June. 1,077 271 372 363 71 858 243 615 Sept.............. 7.57 7.55 7.70 7.56 July.. 900 261 374 218 47 675 183 492 Oct........ 7.62 7.57 7.70 7.57 Aug.. 1,018 310 440 201 67 776 224 552 7.64 7.57 7.70 7.57 Sept.. 949 245 340 287 77 758 212 546 Dec.............. 7.66 7.59 7.70 7.56 Oct... 862 255 343 170 94 720 204 516 Nov.. 985 261 331 312 97 790 246 544 1973—Jan.'........... 7.68 7.68 7.70 7.55 Dec.. 964 190 245 444 85 715 220 495 Feb.'........... 7.70 7.72 7.75 7.56 Mar............. 7.69 7.69 7.80 7.63 1973—Jan. . 821 254 324 184 59 681 218 463 Feb 162 235 233 592 187 405 Mar.. 195 268 426 596 185 411 Note.—Annual data are averages of monthly figures. The HUD(FHA) data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding 1 Monthly figures do not reflect mortgage amendments included in annual month. Yields on FHA-insured mortgages are derived from totals. weighted averages of private secondary market prices for Sec. 2 Not ordinarily secured by mortgages. 203, 30-year mortgages with minimum downpayment and an 3 Includes refinancing loans, mobile home loans and also a small amount of assumed prepayment at the end of 15 years. Gaps in data are alteration and repair loans, not shown separately, only such loans in amounts due to periods of adjustment to changes in maximum permis­ of more than $1,000 need be secured. sible contract interest rates. The HUD (FHA) interest rates on conventional first mortgages in primary markets are un­ Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured weighted and are rounded to the nearest 5 basis points. The loans represent gross amount of insurance written; VA-guaranteed loans, FHLBB effective rate series reflects fees and charges as well gross amounts of loans closed. Figures do not take into account principal as contract rates (as shown in the table on conventional first- repayments on previously insured or guaranteed loans. For VA-guaranteed mortgage terms, p. A-35) and an assumed prepayment at end loans, amounts by type are derived from data on number and average of 10 years. amount of loans closed. DELINQUENCY RATES ON HOME MORTGAGES FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— Loans in Mortgage Mortgage Mortgage fore­ holdings transactions commitments End of period closure (during period) Total 30 days 60 days o 9 r 0 m da o y r s e End of period 1965................. 3.29 2.40 .55 .34 .40 Total 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'.................. '1,790 1,503 '287 1,298 408 198 1971................. 3.93 2.82 .65 .46 .46 1972—Mar 988 928 60 98 258 373 1970—1........... 2.96 2.14 .52 .30 .31 Apr......... 1,110 1,040 70 126 232 455 II......... 2.83 2.10 .45 .28 .31 May .... 1,324 1,239 86 220 165 398 Ill----- 3.10 2.26 .53 .31 .31 June........ 1,415 1,344 71 194 97 117 313 IV........ 3.64 2.67 .61 .36 .33 July......... 1,475 1,374 100 74 11 75 298 Aug......... 1,498 1,394 104 107 75 109 263 1971—1........... 3.21 2.26 .56 .39 .40 Sept......... 1,545 1,408 137 66 13 136 318 II.......... 3.27 2.36 .53 .38 .38 Oct.......... 1,631 1,439 192 102 9 189 371 Ill........ 3.59 2.54 .62 .43 .41 Nov......... 1,744 1,491 253 128 10 89 293 IV........ 3.93 2.82 .65 .46 .46 Dec.......... '1,790 '1,503 '287 143 87 93 198 1972—1........... 3.16 2.21 .58 .37 .50 1973—Jan.......... 1,761 1,517 244 76 99 142 226 II......... 3.27 2.38 .53 .36 .48 Feb.......... 1,677 1,535 142 76 150 166 300 Ill........ 3.82 2.74 .65 .43 .52 Mar......... 1,790 1,503 287 143 87 141 295 tI\V7 .i1 e•. J \4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . . 7 7 9 8 . . 4 4 6 5 . . 5 48 0 Note.—Federal Home Loan Mortgage Corp. data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. 1 First line is old series; second line is new series. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by Note.—Mortgage Bankers Association of America data from GNMA. Commitment data cover the conventional and Govt.-underwritten reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ loan programs. ventional mortgages held by more than 400 respondents, including 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 54 CONSUMER CREDIT □ MAY 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--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 8,549 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 152,968 124,325 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- 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 Feb.................................. 157,582 127,959 44,817 39,795 6,239 37,108 29,623 12,409 7,646 9,568 Mar................................. 159,320 129,375 45,610 39,951 6,328 37,486 29,945 12,540 7,702 9,703 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- 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 13,068 114,183 100,840 53,624 29,310 15,395 2,511 13,343 237 13,106 116,365 102,909 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 13,662 122,505 108,405 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 Feb........................................................ 127,959 112,630 60,582 32,431 16,973 2,644 15,329 266 15,063 129,375 114,190 61,388 32,750 17,239 2,813 15,185 272 14,913 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

MAY 1973 □ CONSUMER CREDIT A 55 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 1,253 159 193 673 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—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 Feb.. 60,582 16,680 10,977 5,932 5,283 5,158 3,515 13,037 32,431 10,267 2,909 3,752 562 14,941 Mar.. 61,388 16,951 11,216 6,035 5,243 5,289 3,538 13,116 32,750 10,419 2,943 3,796 581 15,011 1 Finance companies consist of those institutions formerly classified as See also Note to table at top of 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 6,768 1,576 245 3,291 76 1,580 1966................................... 9,315 3,411 588 980 4,336 9,924 2,635 367 4,579 216 2,127 1967................................... 10,216 3,678 654 1,085 4,799 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 18,990 6,690 981 5,724 706 4,889 19,994 6,946 1,026 5,812 874 5,336 1970................................... 15,088 5,116 1,177 1,800 6,995 21,355 7,478 1,080 6,041 1,029 5,727 1971................................... 17,021 5,747 1,472 1,930 7,872 23,025 8,374 1,158 5,966 1,227 6,300 1972................................... 19,511 6,598 1,690 2,160 9,063 24,041 8,553 1,194 5,936 1,437 6,921 1972—Mar....................... 17,436 5,842 1,499 1,975 8,120 25,099 8,469 1,206 6,163 1,805 7,456 Apr........................ 17,555 5,898 1,512 1,984 8,161 27,099 9*316 1,269 6,397 1,953 8,164 May...................... 17,906 6,019 1,543 2,020 8,324 30,232 10,857 1,399 7,055 1,947 8,974 June...................... 18,304 6,166 1,580 2,055 8,503 July....................... 18,379 6,204 1,589 2,062 8,524 1972—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 Feb........................ 19,617 6,627 1,698 2,162 9,130 Nov.... 28,643 10,527 1,390 6,081 1,929 8,716 Mar....................... 20,052 6,752 1,732 2,209 9,359 Dec__ 30,232 10,857 1,399 7,055 1,947 8,974 1973—Jan.... 29,859 10,825 1,379 6,402 1,955 9,298 Note.—Other financial lenders consist of credit unions and miscel­ Feb.... 29,623 10,989 1,420 5,735 1,911 9,568 laneous lenders. Miscellaneous lenders include savings and loan associa­ Mar.... 29,945 11,074 1,466 5,825 1,877 9,703 tions and mutual savings banks. i 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 table at top of preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ MAY 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.1 N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 196 5 78,661 27,208 22,857 2,270 26,326 196 6 82,832 27,192 26,329 2,223 27,088 196 7 87,171 26,320 29,504 2,369 28,978 196 8 99,984 31,083 33,507 2,534 32,860 196 9 109,146 32,553 38,332 2,831 35,430 197 0 112,158 29,794 43,873 2,963 35,528 197 1 124,281 34,873 47,821 3,244 38,343 197 2 142,951 40,194 55,599 4,006 43,152 1972—Mar.. 11,741 11,746 3,176 3,363 4,453 4,337 323 303 3,789 3,743 Apr.. 11,374 11,224 3,162 3,269 4,370 4,158 331 326 3,511 3,471 May. 11.687 12,556 3,274 3,699 4,393 4,593 334 399 3,686 3,865 June. 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 Feb.. 13,434 11,214 3,972 3,407 5,245 4,252 364 300 3,853 3,255 Mar.. 13,852 13,681 4,001 4,164 5,349 5,169 406 377 4,096 3,971 Repayments 196 5 70,463 23,706 20,707 2,112 23,938 196 6 77,480 25,619 24,080 2,118 25,663 196 7 83,988 26,534 27,847 2,202 27,405 196 8 91,667 27,931 31,270 2,303 30,163 196 9 99,786 29,974 34,645 2,457 32,710 197 0 107,199 30,137 40,721 2,506 33,835 197 1 115,050 31,393 44,933 2,901 35,823 197 2 126,914 34,729 49,872 3,218 39,095 1972—Mar.. 10,427 10,999 2,831 3,026 3,944 4,221 262 269 3,390 3,483 Apr.. 10,384 10,042 2,867 2,774 3,986 3,872 268 259 3,263 3,137 May. 10.355 10,812 2,819 2,984 3,981 4,135 287 299 3,268 3,394 June. 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 Feb.. 11,437 10,623 3,145 2,943 4,627 4,409 275 254 3,390 3,017 Mar.. 11,808 12,265 3,225 3,371 4,755 5,013 286 288 3,542 3,593 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—Mar.. 314 747 345 337 509 116 61 34 399 260 Apr.. 990 1,182 295 495 384 286 63 67 248 334 May. 332 1,744 455 715 412 458 47 100 418 471 June. 386 2,182 490 956 413 602 68 113 415 511 July.. 094 1,337 381 584 435 429 49 80 229 244 Aug.. 643 2,209 595 720 595 718 101 153 352 618 Sept.. 286 1,282 495 321 469 557 77 99 245 305 Oct... 496 1,312 463 518 617 471 72 75 344 248 Nov.. 718 1,820 597 512 674 848 56 50 391 410 Dec.. 663 3,007 786 455 535 2,016 27 254 509 1973—Jan... 949 36 909 224 633 -128 62 345 -52 Feb.. 997 591 827 464 618 -157 89 46 463 238 Mar.. 044 1,416 776 793 594 156 120 89 554 378 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

MAY 1973 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.i 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—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 Feb.................................. 13,434 11,214 5,664 4,826 3,557 2,972 1,964 1,711 2,249 1,705 Mar................................. 13,852 13,681 5,853 5,890 3,654 3,598 2,131 2,083 2,214 2,110 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 1972—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 1973—Jan................................... 11,355 11,887 4,734 4,881 3,033 2,944 1,532 1,655 2,056 2,407 Feb.................................. 11,437 10,623 4,684 4,392 3,030 2,718 1,625 1,459 2,098 2,054 Mar................................. 11,808 12,265 4,870 5,084 3,141 3,279 1,665 1,648 2,132 2,254 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 1969............................................. 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 1972—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 1973—Jan................................... 1,949 36 1,028 365 484 89 174 -146 263 -272 Feb.................................. 1,997 591 980 434 527 254 339 252 151 -349 Mar................................. 2,044 1,416 983 806 513 319 466 435 82 -144 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-54. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: S.A. □ MAY 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* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. Total index...................................... 100.00 114.4 111.2 112.8 113.2 113.4 113.9 115.0 116.1 117.5 118.5 119.2 119.9 121.1 121.8 Products, total..................................... 62.21 113.1 110.1 111.4 112.1 112.0 112.2 113.3 114.4 115.9 117.3 117.5 118.6 119.5 120.0 Final products.................................. 48.95 111.2 108.2 109. 110.2 110.1 110.1 111 .3 112.4 113.9 115.0 115.3 116.4 117.3 117.9 Consumer goods......................... 28.53 123.1 119.6 122.0 122.2 122.1 122.0 123.1 124.4 125.6 126.8 126.7 127.5 128.2 129.1 Equipment................................... 20.42 94.5 92.4 92.7 93.4 93.3 93.4 94.8 95.8| 97.3 98.5 99.4 101.0 102.2 102.3 Intermediate products................... 13.26 120.5 117.3 117.3 119.3 119.1 120.5 121.2 121.7 123.4 125.9 125 126.5 127.7 127.5 Materials.............................................. 37.79 116.4 113.1 115.0 115.6 116.1 116.8 117.4 119.1 120.3 120.6 122.0 121.7 123.9 124.7 Consumer goods Durable consumer goods..................... 7.86 125.4 118.9 125.9 125.3 126.0 123.9 125. 125.4 128.3 130.7 133.9 134.6 137.3 139.7 Automotive products...................... 2.84 127.1 119.3 128.9 127.4 125.7 124.7 127.1 124.8 130.3 137.5 142.0 134.9 140.3 142.9 Autos............................................. 1.87 112.7 104.6 114.3 111.3 108.2 108.2 109.5 109.6 116.9 126.6 133.9 126.0 131.5 130.8 Auto parts and allied goods..., .97 154.7 147.5 157.0 158.3 159.3 156.9 160.9 153.9 156.1 158.6 158.0 151.9 157.4 166.2 Home goods......................................... 5.02 124.5 118.7 124.2 124.3 126.1 123.5 125.1 125.7 127.2 126.9 129.1 134.5 135.7 137.8 Appliances, TV, and radios.......... 1.41 127.1 115.1 132.2 129.3 125.9 121.6 119.7 123.1 124.0 121.8 133.0 140.7 138.6 143.3 Appliances and A/C............... .92 144.5 131.9 149.3 148.2 141.2 138.5 141.8 142.8 147.8 141.9 151.0 153.2 154.8 157.4 TV and home audio............... .49 87.5 84.0 100.1 93.7 97.2 89.9 78.6 86.1 79.4 83.9 99.9 Carpeting and furniture................. 1.08 132.6 127.1 131.3 132.0 134.0 132.6 138.4 134.5 137.6 137.6 139.0 142.1 143.7 144.7 Misc. home goods........................... 2.53 121.0 117.2 116.9 118.2 122.9 120.6 122.4 123.4 124.5 125.2 122.8 127.5 130.7 132.0 Nondurable consumer goods............... 20.67 122.2 119.9 120.5 121.0 120.6 121.3 122.1 123.9 124.5 125.3 123.9 124. 124 125.2 Clothing............................................. 4.32 107.8 105.0 105.0 106.2 106.8 108.0 109.1 110.0 110.3 110.4 109.0 108.0 109.9 Consumer staples............................ 16.34 126.0 123.9 124.6 124.9 124.3 124. 125.5 127.6 128.2 129.2 127. 129.2 128.7 1*28 .*9 Consumer foods and tobacco.. 8.37 117.4 116.3 116.8 117.2 116.8 116.4 117.6 118.5 118.5 120.3 117.7 118.2 119.2 118.7 Nonfood staples.......................... 7. 135.0 132.0 132.8 133.1 132.2 133.6 133 137.2 138.3 138.6 138.2 140.7 138.7 139.7 Consumer chemical products, 2.64 144.3 141.4 145.4 144.8 140.2 141.3 141.7 146.4 145.0 143.9 142.5 147.4 145.6 148.5 Consumer paper products..., 1.91 114.7 113.9 111.4 111.1 112.5 112.5 112.2 115.6 118.6 119.3 119.5 117.7 119.4 118.1 Consumer fuel and lighting.. 3.43 139.2 134.9 134.8 136.3 136. 139.4 139.8 141.9 144.0 145.1 145.2 148.3 143.9 144.9 Residential utilities............. 2.25 147.5 142.3 142.1 143.2 145.0 147.0 147.5 150.3 152.1 154.5 155.6 158.5 154.1 154.6 Equipment Business equipment............................... 12.74 104.3 101.3 101.3 102.5 102.4 102.1 105.0 106.7 108.5 110.1 111.1 114.2 115.4 116.0 Industrial equipment...................... 6.77 99.3 96.3 95.7 96.3 97.2 96.7 99.9 102.8 103.7 105.8 107.3 109.0 109.9 111.0 Building and mining equip. 1.45 101.9 101.2 98.4 97.0 98.3 98.0 104.8 105.7 105.4 104.2 108.0 108.6 109.2 110.5 Manufacturing equipment......... 3.85 88.6 84.5 84.9 85.9 86.7 87.1 89.4 92.6 94.0 96.9 98.5 100.9 101.9 103.0 Power equipment......................... 1.47 124.6 122.0 121.4 122.8 123.5 120.5 122.4 126.3 127.2 130. 129.6 130.6 131.4 132.3 Commercial, transit, farm eq...., 5.97 110.0 107.0 107.6 109.6 108.4 108.3 110.7 111.2 113.8 115.3 115.4 120.0 121.9 121.7 Commercial equipment............. 3.30 117.8 114.7 114.1 116.4 116.7 117.3 120.0 121.5 122.7 123.2 122.6 126.3 129.0 129.9 Transit equipment...................... 2.00 96.7 95.4 97.0 98.9 94.4 92.5 93.0 93.1 96.8 101.9 101.7 110.0 111. 110.3 Farm equipment.......................... .67 110.6 103.5 106.8 108.2 109.7 111.2 117.7 114.7 120.3 116.3 120.0 118.3 117.6 114.3 Defense and space equipment............ 7.68 78.2 77.6 78.5 78.2 78.3 78.9 77.9 77.7 78.6 79.3 80.1 79.1 80.3 79.8 Military products............................ 5.15 80.6 80.7 81.3 81.1 80.4 81.6 79.9 79.3 80.3 81.2 81.4 81.7 81.0 Intermediate products Construction products........................ 5.93 119.7 115.9 116.5 118.0 117.8 119.8 119.3 120.6 123.1 126.1 124.6 125.9 127.2 127.0 Misc. intermediate products.............. 7.34 121.1 118.5 118.0 120.4 120.2 121.1 122.8 122.6 123.6 125.6 126.7 127.0 128.2 127.9 Materials Durable goods materials..................... 20.91 112.1 107.8 110.4 111.1 111.1 111.5 112.6 116.0 117.4 117.7 120.1 120.1 122.6 123.5 Consumer durable parts............... 4.75 113.1 110.2 113.8 112.0 112.0 111.4 114.0 116.3 116.6 115.8 118.0 120. 122.7 124.9 Equipment parts............................. 5.41 97.1 91.0 95.4 95.3 95.3 98.2 97.8 100.7 102.6 103.6 105.7 104.3 107.5 109.1 Durable materials nec................... 10.75 119.3 115.2 116.5 118.6 118.6 118.2 119.5 123.6 125.2 125.7 128.5 127 130.2 130.1 Nondurable goods materials.............. 13.99 121.7 119.8 120.6 121.3 122.5 123.3 123.7 122.7 123.9 124.4 125.5 124.3 126.1 126.8 Textile, paper, and chem. mat... 8.58 128.0 125.0 125.9 127.1 128.5 130.1 131.1 129.2 130.7 132.7 134.8 133.0 134.8 137.0 Nondurable materials n.e.c...... 5.41 111.6 111.4 112.3 112.3 113.1 112.3 111.9 112.4 113.0 111.2 110.9 110.4 112.4 110.6 Fuel and power, industrial............... 2.89 121.2 118.9 121.6 120.7 121.7 123.5 121.5 125.0 124.3 122.5 118.7 120.7 123.2 124.2 Supplementary groups Home goods and clothing................ 9.34 116.8 112.3 115.3 115.9 117.2 116.3 117.7 118.5 119.4 119.2 119.8 122.2 123. 125.4 Containers............................................ 1.82 126.8 120.3 127.5 127.0 130.2 128.8 125.7 122.6 127.2 134.2 135.1 136.9 141.0 141.7 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 413.1 405.6 409.7 413.0 412.0 410.1 414.7 417.5 425.0 431. 431. 435.9 439.7 440.4 Final products............. 317.7 312.3 317.1 318.5 317.5 314.3 319.0 321.7 327.6 332.5 332.6 334.8 338.2 339.4 Consumer goods 223.7 220.4 224.8 225.1 224.6 222.5 225.5 226.9 231.0 233.9 233.8 233.7 235.3 236.5 Equipment................. 94.0 91.9 92.4 93.3 93.1 91.8 93.7 94.9 96.8 98.5 98.9 101.2 102.8 102.7 Intermediate products. 95.5 93.2 92.8 94.5 94.3 95.8 96.0 95.9 97.4 99.2 99.5 100.8 101.7 101.2 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY 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* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. 88.55 113.1 109.7 111.8 112.3 112.6 113.2 114.1 115.2 116.6 117.4 118.5 118.9 120.6 121.5 Durable................................................ 52.33 107.4 103.4 105.8 106.3 106.8 107.7 108.4 109.7 111.4 112.4 144.1 114.3 116.2 116.9 36.22 121.5 118.8 120.3 120.8 121.3 121.0 122.6 123.3 124.3 124.7 125.0 125.4 126.9 128.2 Mining and utilities................................ 11.45 123.8 122.3 122.9 122.6 122.7 123.2 123.8 125.9 126.2 127.2 126.2 127.7 127.4 126.9 6.37 108.3 108.5 109.0 107.9 108.2 107.9 107.7 110.2 110.0 110.1 108.3 108.4 109.1 107.8 Utilities................................................. 5.08 143.2 139.7 140.2 141.1 140.9 142.5 144.1 145.6 146.6 148.7 148.6 151.9 150.4 150.9 Durable manufactures 12.55 113.0 107.4 110.4 112.7 112.1 114.5 114.0 116.4 118.4 119.6 122.8 120.2 122.4 123.1 Primary metals.................................... 6.61 112.8 105.1 110.2 113.5 111.9 114.9 113.6 117.4 119.3 120.2 126.6 120.6 122.4 122.7 Iron and steel, subtotal................. 4.23 106.9 98.8 105.5 108.3 104.9 107.7 107.3 113.4 114.1 114.3 117.4 114.2 119.3 119.1 Fabricated metal products............... 5.94 113.3 110.1 110.8 111.9 112.3 114.1 114.4 115.2 117.5 118.8 118.6 119.9 122.5 123.6 32.44 102.1 98.4 101.1 101.0 101.6 102.0 103.1 104.1 105.7 107.0 108.7 109.5 110.9 111.8 Machinery............................................ 17.39 105.2 100.3 102.6 103.0 104.8 104.8 107.1 108.3 109.6 110.4 113.1 113.7 114.3 115.9 Nonelectrical machinery............... 9.17 103.1 97.6 98.6 100.4 101.8 102.9 106.1 107.0 108.8 110.6 110.5 112.3 112.9 114.0 Electrical machinery...................... 8.22 107.5 103.3 107.1 105.9 108.0 107.1 108.1 109.7 110.4 110.2 116.0 115.2 116.0 118.2 Transportation equipment............... 9.29 98.9 95.9 100.4 98.9 97.4 98.2 98.4 99.8 102.1 105.0 105.9 106.7 110.0 110.3 Motor vehicles and parts............. 4.56 122.8 118.8 125.6 122.6 119.3 121.4 121.6 123.0 127.6 132.0 135.3 137.4 141.5 141.0 Aerospace and misc. trans. eq... 4.73 75.8 73.9 76.1 76.1 76.4 75.9 76.0 77.3 77.5 79.0 77.6 77.1 79.7 80.8 Instruments.......................................... 2.07 118.7 114.2 116.1 117.3 119.3 119.9 120.9 122.4 122.9 123.3 122.6 127.2 129.2 130.8 3.69 86.6 86.4 87.3 87.6 87.8 88.0 86.2 84.8 86.3 86.9 87.3 86.6 87.1 86.4 Lumber, clay, and glass......................... 4.44 119.7 118.1 118.1 118.2 119.0 119.1 119.6 120.5 123.0 122.8 120.9 122.2 127.2 126.4 1.65 122.7 119.6 119.9 119.1 121.8 121.5 121.1 122.8 128.1 128.2 124.3 126.8 128.5 128.7 Clay, glass, and stone products.... 2.79 117.9 117.2 117.1 117.5 117.4 117.7 118.7 119.1 120.0 119.7 118.9 119.5 126.4 125.0 2.90 122.6 118.4 119.9 120.6 122.1 123.7 126.7 126.6 126.2 126.2 127.0 130.3 132.5 133.1 Furniture and fixtures....................... 1.38 113.1 108.7 111.7 110.7 112.8 115.5 117.6 116.7 116.1 117.4 118.5 119.1 122.3 123.0 Miscellaneous manufactures............ 1.52 131.2 127.2 127.4 129.6 130.6 131.0 135.1 135.6 135.4 134.0 134.5 140.5 142.1 142.6 Nondurable manufactures 6.90 106.2 103.7 106.1 104.9 105.9 104.8 106.8 108.0 109.1 109.1 110.7 107.7 109.7 111.5 Textile mill products......................... 2.69 114.5 110.9 113.5 112.8 113.9 112.7 116.5 116.6 118.5 118.4 119.9 118.4 119.9 121.1 Apparel products................................ 3.33 104.2 102.7 103.3 102.8 103.0 102.2 104.3 105.5 106.8 109.3 109.5 106.0 108.0 Leather and products........................ .88 88.1 85.4 94.4 89.2 92.2 90.2 86.5 91.6 88.6 80.1 87.4 81.3 85.1 **84.'7 Paper and printing.................................. 7.92 115.4 112.6 112.3 114.1 115.1 115.2 116.4 115.3 118.6 120.9 120.6 119.9 121.9 121.8 Paper and products............................ 3.18 126.7 122.5 124.4 127.2 126.7 126.9 127.8 124.1 127.9 133.3 134.4 132.4 135.0 136.4 Printing and publishing..................... 4.74 108.0 105.9 104.2 105.3 107.3 107.2 108.7 109.4 112.4 112.6 111.3 111.5 113.0 112.2 Chemicals, petroleum, and rubber.... 11.92 137.5 133.4 136.1 137.5 137.1 137.4 139.9 141.1 141.6 140.6 141.5 145.2 145.6 148.6 Chemicals and products................... 7.86 139.3 135.7 137.9 138.9 139.5 139.5 141.3 143.4 143.8 141.5 141.5 145.4 146.2 150.1 Petroleum products............................ 1.80 120.1 117.9 117.0 119.5 117.3 119.5 120.4 120.7 124.1 123.4 124.8 129.0 125.0 124.4 Rubber and plastics products.......... 2.26 145.0 138.1 144.7 146.5 145.0 144.1 150.4 149.6 148.2 151.3 154.4 156.7 160.1 162.6 Foods and tobacco................................... 9.48 117.4 116.3 117.6 117.1 117.6 116.8 117.6 118.8 117.8 118.9 118.3 118.2 120.3 119.7 Foods.................................................... 8.81 118.4 117.5 118.6 118.5 119.3 118.3 118.3 120.0 118.2 119.4 119.5 119.0 121.0 120.5 Tobacco products............................... .67 104.4 101.9 103.9 99.1 96.4 96.7 108.5 103.0 111.8 112.5 102.5 107.9 110.3 Mining Metal, stone, and earth minerals.......... 1.26 104.8 108.3 104.6 99.4 99.6 95.8 101.0 106.5 106.2 113.0 114.6 114.8 116.0 113.6 Metal mining....................................... .51 120.8 131.0 122.2 110.7 102.9 102.2 115.2 123.4 122.3 136.7 141.8 138.6 140.8 136.9 Stone and earth minerals.................. .75 93.9 92.7 92.6 91.7 97.4 91.6 91.4 94.9 95.2 97.0 96.0 98.4 99.1 97.7 Coal, oil, and gas.................................... 5.11 109.2 108.6 110.0 109.9 110.5 111.0 109.3 111.1 110.9 109.2 106.8 106.9 107.3 106.4 Coal....................................................... .69 103.2 104.1 112.9 105.0 109.1 114.4 97.2 104.2 99.3 101.0 97.1 95.8 101.9 106.0 Oil and gas extraction....................... 4.42 110.2 109.3 109.6 110.7 110.7 110.5 111.2 112.1 112.7 110.5 108.2 108.6 108.2 106.5 Utilities 3.91 149.1 144.8 145.6 147.1 146.8 148.6 150.2 152.0 152.8 155.2 155.2 159.1 156.9 157.6 (3<is 1.17 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. □ MAY 1973 MARKET GROUPINGS (1967 = 100) p 19 ro 67 ­ 1972 1972 1973 Grouping p ti o o r n ­ a a v g e e r * ­ Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.r Feb. Mar, Total index. 100.00 114.4 111.6 113.6 113.4 116.5 109.2 115.4 120.3 121.3 118.7 116.0 117.2 121.7 122.6 Products, total.................. 62.21 113.1 110.0 111.7 110.8 115.2 109.1 115.2 120.7 120.8 117.1 113.0 115.2 119.2 120.2 Final products........... 48.95 111.2 108.3 110.2 108.5 113.3 106.3 112.7 118.7 118.6 114.8 111.0 114.1 117.8 118.5 Consumer goods.... 28.53 123.1 119.2 122.4 119.6 126.0 117.0 126.5 133.5 132.7 126.0 119.7 124.3 128.4 129.6 Equipment................. 20.42 94.5 93.1 93.2 93.1 95.6 91.4 93.4 98.0 99.0 99.2 98.8 99.9 103.0 103.0 Intermediate products. 13.26 120.5 116.5 117 119.5 122.2 119.2 124.4 128.0 128.7 125.6 120.3 119.4 124.3 126.5 Materials............................ 37.79 116.4 114.5 116.6 117.7 118.7 109.4 115.8 119.6 122.1 121.4 120.9 120.6 125.9 126.6 Consumer goods Durable consumer goods................. 7.86 125.4 121. 128. 126.0 129.3 107.4 119.3 133.6 139 134.5 124.9 133.3 140.6 143.9 Automotive products................. 2.84 127.1 126.3 138. 132.6 133.5 92.8 107.5 136.5 146.3 141.2 123.2 138.5 149.1 151.6 Autos........................................ 1.87 112.7 115.1 128.0 121.3 120.1 61.0 78.4 120.6 135.6 132.9 109.8 134 144.6 143.9 Auto parts and allied goods. .97 154.7 147.8 157.8 154.3 159.3 153.9 163.3 167.1 166.9 157.0 149.0 145.7 157.7 166.5 Home goods........................................ 5.02 124.5 119.3 123.5 122.3 126.9 115.6 126.0 131.9 136.2 130.8 125.8 130.3 135.8 139.5 Appliances, TV, and home audio. 1.41 124.7 120.1 131.9 124.9 125.6 109.6 112.2 127.7 142.8 129.1 122.0 139.7 143.4 152.3 Appliances and A/C................. .92 144.5 139.3 156.6 146.9 147.4 134.9 128.9 143.5 165.0 143.5 134.6 153.7 158.1 171.1 TV and home audio................. .49 87.5 84.1 85 83.7 84. 62.2 80.9 98.2 101.2 102.2 98.4 Carpeting and furniture............... 1.08 132.6 130.8 131.8 128.3 132.8 114.4 138.7 139.6 139.7 140.8 140.0 141.0 149.7 148.9 Misc. home goods......................... 2.53 121.0 113.9 115.3 118.2 125.2 119.5 128.3 130.9 131.1 127.6 121.9 120.4 125.7 128.3 Nondurable consumer goods................. 20.67 122.2 118.2 119.9 117.1 124.7 120.6 129.2 133.4 130.0 122.7 117.7 120.9 123. 124.2 Clothing............................................... 4.32 107.8 108.1 113.2 102.7 113.2 97.2 113.5 116.9 114.7 108.2 100.1 102.9 114.1 Consumer staples................................ 16.34 126.0 120.9 121.7 120.9 127.8 126. 133.4 137.8 134.0 126 122.3 125.6 126.3 126.'3 Consumer foods and tobacco..., 8.37 117.4 113.0 114.8 114.7 120.8 115.8 123.9 128.7 125.4 118.7 111.0 111.9 115.0 116.2 Nonfood staples............................. 7.98 135.0 129.2 128.9 127.4 135.1 138.3 143.4 147.3 143.0 134.6 134.2 140.0 138.1 136.8 Consumer chemical products.. 2.64 144.3 135.0 142.3 143.9 152.3 146.9 148.4 159.3 158.3 143.8 132.5 138.6 138.9 141.8 Consumer paper products........ 1.91 114.7 110.8 110.3 107.9 116.2 114.2 120.4 122.8 124 118.5 113 112.3 116.2 114.9 Consumer fuel and lighting.., 3.43 139.2 135.0 129.0 125.5 132.4 145.1 152.4 151.6 141.3 136.4 147.2 156.6 149.7 145.2 Residential utilities................ 2.25 147.5 144.2 136.3 128.7 137.5 154.6 165.3 163.8 148.1 141.4 156.6 170.5 162.4 156.6 Equipment Business equipment........................ 12.74 104.3 102.2 102.3 102.2 105.6 99.5 103.2 110.2 111.2 110.7 109.3 112.1 116.7 116.8 Industrial equipment............... 6.77 99.3 96.4 95.7 95.7 99.0 96.0 99.5 105.2 105.5 106.3 106.4 107.7 111.3 110.9 Building and mining equip.. 1.45 101.9 97.9 99.0 96.3 101.4 98.0 102.3 107.5 107.1 108.4 109.9 107.6 110.3 106.1 Manufacturing equipment.. 3.85 88.6 86.2 84.8 85.5 88.2 85.2 89.2 93.6 94.9 96.6 97.7 99.7 104.5 105.1 Power equipment................. 1.47 124.6 121.4 121.2 121.8 124.9 122.3 123.7 133.2 131. 129.4 125.8 128.8 129.9 130.6 Commercial, transit, farm eq.. 5.97 110.0 108.7 109.8 109.6 113.0 103.4 107.4 115 117.7 115.6 112.5 117.0 122.8 123.6 Commercial equipment. 3.30 117.8 112.6 112.2 114.7 121.9 120.2 122.0 127.2 124.8 123.6 120.4 121.9 126.9 127.6 Transit equipment................ 2.00 96.7 99.5 104.8 100.9 97.9 78.2 85.2 95.2 104.0 104.6 99.2 108.1 114.8 115.0 Farm equipment.................... .67 110.6 117.2 113.2 110.0 114.4 95.2 101.0 120.8 123.2 109.0 113.2 118.9 126.2 129.4 Defense and space equipment. 7.68 78.2 77.9 78.0 78.1 78.9 77.9 77.1 77.7 78.7 80.0 81.3 79.6 80.3 80.0 Military products................. 5.15 80.6 81.0 81.1 81.3 81.7 81.0 79.3 79.2 80.0 81.4 82.0 81.0 81.6 81.3 Intermediate products Construction products.......... 5.93 119.7 116.9 118.9 120.6 121.9 117.9 120.5 125.5 128.4 124.5 118.0 117.1 124.9 128.1 Misc. intermediate products. 7.34 121.1 116.1 116.2 118.7 122.4 120.3 127.5 130.0 129.0 126.5 122.1 121.3 123.8 125.2 Materials Durable goods materials.... 20.91 112.1 110.2 112.4 113 114. 103.8 109.9 116. 118.7 118.1 119.5 118.5 124.9 126.5 Consumer durable parts. 4.75 113.1 111.6 112.9 113.3 112.5 98.5 107.8 117.2 119.4 120.9 125.5 125.0 127.9 127.7 Equipment parts............... 5.41 97.1 93.7 96.5 95.9 98.9 92.2 95.5 101.7 102.3 102.7 104.7 104.6 109.1 112.4 Durable materials n.e.c.. 10.75 119.3 117.8 120.1 123.1 123.9 111.9 118.1 124.3 126.6 124.7 124.4 122.6 131.6 133.1 Nondurable goods materials.......... 13.99 121.7 119. 121.8 123.0 124.2 116.6 123.3 122.8 126.7 126.0 123.0 123.4 127.6 126.9 Textile, paper, and chem. mat.. 8.58 128.0 126.0 128.5 129.6 130.9 120.9 130.1 129.1 133.4 134.2 130.6 132.1 137.9 138.1 Nondurable materials n.e.c.... 5.41 111.6 110.0 111.2 112.6 113.6 109.9 112.6 112.8 116.0 113.1 110.9 109.5 111.3 109.2 Fuel and power, industrial........... 2.89 121.2 119.6 121.8 120.7 120.8 115.2 121.7 124.0 124.4 123.5 120.4 122.8 125.0 125.1 Supplementary groups Home goods and clothing., 9.34 116.8 114.1 118.7 113.2 120.6 107.1 120.2 125.0 126.3 120.3 113.9 117.6 125.8 128.9 Containers............................. 1.82 126.8 120.3 127.9 128.9 134.2 123.1 130.0 128.0 134.4 133.0 125.0 129.4 140.6 141.7 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 100) p 19 ro 67 - a 1 v 9 e 7 r 2 ­ 1972 1973 Grouping tion age* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Mar. Manufacturing, total............................... 88.55 113.1 110.5 772.7 112.1r 115.7r 107. C) 113.5’ 118.9> 120.6> 118.1 114.8' 115.91 121.01 122.7 Durable................................................. 52.33 107.4 105.5 107.5 107.6i 109.4 100.2\ 105.1 111.9 114.4L 113.1 111.4 112.8: 118.3 119.7 Nondurable.......................................... 36.22 121.5 117.8 120.2 120.0I 124.9' 116.9> 125.7r 128.9 129.6i 125.4 119.7 120.3’ 125.01 127.0 11.45 123.8 120.7 120.4 120.0» 122.9' 124.6; 130.0> 130.81 126.3f 123.5 124.8 128.3' 126.9' 125.1 6.37 108.3 106.4 108.8 109.9 109.7 105.5 109.2: 110.8 110.7 109.5 108.0 105.8 107.2 105.6 Utilities................................................. 5.08 143.2 138.7 134.9 132.6 139.4 148.6 156.2 155.9 146.0i 141.1 146.0 156.6 151.6 149.7 Durable manufactures Primary and fabricated metals............. 12.55 113.0 112.6 114.3 115.7 115.0 105.1 109.1 116.0 119.7 119.0 120.2 118.8 127.01 129.0 Primary metals.................................... 6.61 112.8 113.5 117.2 118.9 116.5 101.6 106.9 114.8 119.4 117.6 121.7 118.9 129.5 132.5 Iron and steel, subtotal................. 4.23 106.9 107.4 113.2 114.3 108.6 98.3 101.2 108.1 113.4 110.9 114.2 112.4 126.0 129.5 5.94 113.3 111.5 111.1 112.2 113.3 109.0 111.5 117.4 120.1 120.5 118.6 118.6 124.3 125.2 Machinery and allied goods................... 32.44 102.1 100.2 102.3 101.7 104.0 94.4 98.7 106.7 108.9 107.9 106.4 109.4 113.2 114.3 Machinery............................................ 17.39 105.2 102.2 103.4 102.9 107.0 100.0 104.1 111.4 112.7 110.5 110.3 112.8 117.0 118.6 Nonelectrical machinery............... 9.17 103.1 100.2 99.8 100.9 104.7 100.5 103.3 109.4 109.6 109.1 109.2 110.8 116.6 117.1 Electrical machinery...................... 8.22 107.5 104.5 107.4 105.1 109.5 99.5 105.0 113.6 116.1 112.1 111.6 115.0 117.5 120.2 Transportation equipment............... 9.29 98.9 99.0 103.8 101.7 100.8 81.0 88.3 102.0 107.0 107.9 103.0 108.7 113.5 114.0 Motor vehicles and parts............. 4.56 122.8 123.8 131.8 128.1 126.0 87.8 102.3 127.1 137.2 137.9 128.9 142.6 148.6 147.3 Aerospace and misc. trans. eq. .. 4.73 75.8 75.0 76.8 76.3 76.6 74.5 74.9 77.8 77.9 78.9 78.1 76.0 79.6 82.0 Instruments.......................................... 2.07 118.7 112.3 112.5 116.1 121.8 119.9 123.4 127.3 126.5 123.9 122.5 123.5 125.5 128.6 Ordnance, private and Govt............ 3.69 86.6 87.1 87.3 87.8 88.2 87.3 85.2 84.5 85.7 87.0 87.7 87.1 87.4 87.1 Lumber, clay, and glass.......................... 4.44 119.7 115.9 118.5 120.4 124.1 119.2 125.7 126.3 129.0 122.6 112.9 112.1 121.0 124.0 Lumber and products........................ 1.65 122.7 121.5 122.1 121.8 126.5 120.5 125.9 128.8 132.8 124.7 111.6 115.5 128.2 130.8 Clay, glass, and stone products.... 2.79 117.9 112.5 116.3 119.6 122.7 118.4 125.6 124.8 126.7 121.4 113.7 110.1 116.8 120.0 Furniture and miscellaneous................... 2.90 122.6 118.8 119.1 118.1 123.7 114.5 127.5 131.0 131.1 130.7 126.7 126.1 134.0 133.8 Furniture and fixtures....................... 1.38 113.1 112.7 111.6 108.7 112.1 100.4 115.7 117.9 118.8 120.9 119.7 121.6 128.3 127.5 Miscellaneous manufactures............ 1.52 131.2 124.4 125.9 126.6 134.3 127.3 138.2 142.9 142.2 139.6 133.2 130.2 139.1 139.5 Nondurable manufactures Textiles, apparel, and leather............... 6.90 106.2 106.7 109.9 103.9 110.9 94.4 111.4 112.8 112.2 107.5 101.0 102.6 112.0 113.8 Textile mill products.......................... 2.69 114.5 114.0 115.9 115.8 119.0 102.0 120.7 120.4 120.9 118.4 112.4 111.3 119.9 122.3 Apparel products................................ 3.33 104.2 105.0 109.5 98.7 109.1 92.5 109.2 112.1 110.2 105.8 96.4 101.3 111.8 Leather and products......................... .88 88.1 90.4 93.3 87.3 92.8 78.2 91.3 92.0 92.8 80.7 83.3 80.6 88.7 * 89.6 7.92 115.4 111.2 112.9 114.1 117.9 111.5 120.0 120.7 124.9 122.6 114.1 113.4 119.0 120.5 3.18 126.7 125.3 128.1 128.5 130.2 116.1 127.5 123.7 134.5 134.4 124.3 130.8 138.4 139.5 Printing and publishing..................... 4.74 108.0 101.7 102.7 104.4 109.6 108.4 114.9 118.6 118.5 114.7 107.3 101.7 106.0 107.7 Chemicals, petroleum, and rubber........ 11.92 137.5 132.5 135.8 138.0 141.4 134.7 140.3 144.9 145.6 141.9 139.2 140.8 144.1 147.6 Chemicals and products................... 7.86 139.3 134.1 138.9 140.7 144.2 138.7 142.4 147.1 146.1 142.1 138.5 140.3 142.8 148.3 Petroleum products............................ 1.80 120.1 113.5 112.1 118.4 121.5 123.8 125.7 126.3 126.3 122.5 122.9 123.7 121.1 119.8 Rubber and plastics products.......... 2.26 145.0 142.2 144.1 144.0 147.6 129.3 144.4 152.3 156.9 156.7 154.7 156.4 167.0 167.5 Foods and tobacco................................... 9.48 117.4 112.9 114.2 114.1 120.1 115.2 122.7 127.5 126.0 120.0 113.3 113.2 115.5 116.1 Foods.................................................... 8.81 118.4 113.7 115.3 115.3 121.4 117.4 123.2 128.9 126.4 120.5 115.4 113.6 115.7 116.6 Tobacco products............................... .67 104.4 102.1 99.4 98.1 103.0 86.3 116.7 109.4 120.4 113.4 86.0 107.7 113.5 Mining Metal, stone, and earth minerals.......... 1.26 104.8 98.0 105.3 110.8 111.6 102.2 108.7 113.1 110.2 106.1 103.8 98.8 100.8 102.8 Metal mining....................................... .51 120.8 114.4 123.5 131.5 129.6 116.7 128.4 133.5 123.2 114.8 114.6 113.8 119.8 119.5 Stone and earth minerals................. .75 93.9 86.8 92.8 96.7 99.3 92.3 95.4 99.2 101.3 100.3 96.4 88.6 87.8 91.4 Coal, oil, and gas.................................... 5.11 109.2 108.5 109.7 109.7 109.2 106.3 109.3 110.3 110.8 110.3 109.1 107.5 108.8 106.3 .69 103.2 102.7 114.9 107.1 104.8 87.6 103.5 106.9 106.1 103.2 96.5 94.7 102.2 104.6 4.42 110.2 109.4 108.9 110.1 109.9 109.2 110.2 110.8 111.6 111.4 111.1 109.5 109.8 106.6 Utilities 3.91 149.1 143.5 138.5 136.4 144.9 156.5 166.0 165.4 152.0 145.3 151.6 165.1 158.5 156.0 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 62 BUSINESS ACTIVITY; CONSTRUCTION □ MAY 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry pacity Nonag­ Con­ ricul­ utiliza­ Products tion struc­ tural Total Period Total Total Final C p o r n o ­ ducts m In ed te ia r­ te M ri a a t ls e­ f M a i c a n t n g u u r­ ­ i o = n ( u 1 1 m 9 tp 0 6 f 0 u 7 g ) t . tr c t a i o o c n t n s ­ m T p e o e l m o t n a y t ­ l — ­ i p m E lo m en y ­ t ­ P ro a l y ls ­ s r a e l t e a s il 3 s C um on e ­ r m W c s o o a h m d l o e i l ­ t e y ­ Total sumerEquip­ prod­ goods ment ucts 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. i 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955....................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956....................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957....................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958....................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959....................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960....................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961....................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962....................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963....................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 , 86.1 86.1 87.8 76.0 79 91.7 94.5 1964....................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965....................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966....................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 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 '78.3 107.2 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 '75.0 i32‘6* 107.3 93.9 116.3 122 121.2 113.9 1Q12p.................... 114.4 113.2 111.2 123.1 94.6 120.4 116.5 113.2 77.9 110.5 96.7 130.2 142 125.3 119.8 1972-—Mar........... 111.2 110.1 108.2 119.6 92.4 117.3 113.1 109.7 5'75.4 159.0 '109.3 '95.2 '124.9 139 124.0 117.4 Apr............ 112.8 111.4 109.8 122.0 92.7 117.3 115.0 111.8 167.0 109.7 '95.8 '127.4 139 124.3 117.5 May.......... 113.2 112.1 110.2 122.2 93.4 119.3 115.6 112.3 '77.6 165.0 110.2 '96.4 '128.0 142 124.7 118.2 June.......... 113.4 112.0 110.1 122.1 93.3 119.1 116.1 112.6 154.0 '110.4 '96.8 '128.9 141 125.0 118.8 July........... 113.9 112.2 110.1 122.0 93.4 120.5 116.8 113.2 155.0 110.3 96.3 '127.7 143 125.5 119.7 Aug............ 115.0 113.3 111.3 123.1 94.8 121.2 117.4 114.1 78.4 180.0 110.8 96.8 '131.2 145 125.7 119.9 Sept........... 116.1 114.4 112.4 124.4 95.8 121.7 119.1 115.2 187.0 111.1 97.3 '133.8 144 126.2 120.2 Oct............ 117.5 115.9 113.9 125.6 97.3 123.4 120.3 116.6 171.0 111.7 98.4 '136.1 149 126.6 120.0 Nov........... 118.5 117.3 115.0 126.8 98.5 125.9 120.6 117.4 80.2 177.0 112.2 99.2 '139.0 148 126.9 120.7 Dec............ 119.2 117.5 115.3 126.7 99.4 125.7 122.0 118.5 163.0 112.4 99.8 '139.3 151 127.3 122.9 1973-—Jan............ 119.9 '118.6 116.4 '127.5 '101.0 '126.5 '121.7 '118.9 181.0 112.7 99.9 '139.8 156 127.7 124.5 Feb............ '121.1 '119.5 '117.3 '128.2 '102.2 '127.7 123.9 '120.6 81.3 191.0 '113.5 100.6 142.9 158 128.6 126.9 Mar........... '121.8 '120.0 '117.9 '129.1 102.3 '127.5 '124.7 '121.5 193.0 '113.8 100.9 '142.6 160 129.8 129.7 Apr.*........ 123.0 121.1 119.2 130.4 103.5 128.3 126.3 122.8 113.9 101.7 145.0 130.7 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Dept, of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. Latest figure is final. value of total construction contracts, including residential, nonresidential, 5 Figure is for first quarter 1972. 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 Mar.' Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total construction 1............................ 80,188 91,877 7,238 8,100 9,098 8,478 8,067 8,875 8,197 8,225 7,248 6,464 6,795 6,839 8,644 By type of ownership: Public............................................ 23,927 24,404 1,676 1,741 2,574 2,517 2,528 2,466 2,017 1,668 1,785 1,650 1,918 1,717 Private 1....................................... 56,261 67,473 5,562 6,359 6,524 5,960 5,538 6,409 6,181 6,557 5,462 4,814 4,877 5,122 By type of construction: Residential building 1............... 34,754 45,473 3,607 3,971 4,428 4,375 3,864 4,671 4,135 4,298 3,663 3,120 3,195 3,277 4,643 Nonresidential building............ 25,574 27,327 2,165 2,182 2,908 2,447 2,461 2,458 2,378 3,549 2,184 2,215 2,420 2,229 2,707 Nonbuilding................................ 19,282 19,077 1,466 1,947 1,762 1,655 1,741 1,746 1,684 1,544 1,402 1,132 1,180 1,333 1,294 Private housing units authorized... 1,925 2,130 2,007 1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 2,377 2,218 '2,191 2,093 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d R en e t s i i a ­ l Total In tr d i u al s­ B m u C e i o l r d c m i i n a ­ g l s b O u t i h l e d r ­ Other Total M ta i r l y i­ H w ig ay h­ d C v e m o a v n & t e e i s n l o e o t n r p ­ ­ Other 2 ings 1 1962 3 ......... 59,965 42,096 25,150 16.946 2,842 5,144 3,631 5,329 17,869 1,266 6,365 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 15,491 197 1 109,399 79,535 43,062 36,473 5,423 11,619 5,428 14,003 29,864 894 10,658 2,095 16,217 1972—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.. 119,847 91,564 53,509 38,055 4,592 12,979 5,670 14,814 28,283 1,360 1,417 Aug.. 122,857 93,654 54,325 39,329 4,814 13,406 5,942 15,167 29,203 867 1,676 Sept.. 124,816 94,205 55,465 38,740 4,432 13,490 5,723 15,095 30,611 978 1,666 Oct... 128,850 96,024 56,340 40,559 4,301 13,770 6,256 15,357 32,826 1,045 1,767 Nov.. 126,327 97,052 57,105 39.947 4,556 13,377 6,230 15,784 29,275 1,205 1,719 Dec.. 131,962 97,886 57,373 40,513 4,788 13,711 6,185 15,829 34,076 1,125 1,667 1973—Jan.r. 135,737 101,131 58,048 43,083 5,328 15,106 5,996 16,653 34.606 1,246 2.020 Feb. *■. 135,548 102,663 59,731 42,932 5,137 14,908 6,046 16,841 32,885 1,443 1,721 Mar.. 138,236 103,588 60,085 43.503 5,430 15,148 6,249 16,676 34,648 1,337 2,556 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 5;89 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—Mar................ 2,313 306 383 1,033 591 1,310 142 861 206 204 2 48 38 11 49 Apr................. 2,204 259 381 1,083 482 1,215 146 843 213 212 2 38 29 9 53 May............... 2,318 282 547 999 489 1,308 125 886 228 226 2 42 32 9 52 June............... 2,315 337 452 992 534 1,283 137 895 226 223 3 42 32 10 55 July................. 2,244 303 443 1,009 488 1,319 116 809 208 206 1 36 26 9 48 Aug................ 2,424 349 475 1,014 586 1,373 137 914 231 229 2 40 30 10 52 Sept................ 2,426 355 474 1,096 501 1,382 125 920 204 203 1 37 28 9 49 Oct.................. 2,446 372 469 1,125 480 1,315 153 978 218 217 2 34 25 9 54 Nov................ 2,395 353 400 1,106 536 1,324 134 937 187 186 1 29 21 8 50 Dec................. 2,369 486 330 1,080 473 1,207 128 1,034 153 151 2 48 42 6 38 1973—Jan.'.............. 2,497 348 599 1,086 464 1,450 163 884 147 147 1 18 12 7 41 Feb.r............. 2,457 358 579 1,090 430 1,377 124 956 140 138 2 21 14 7 43 Mar................ 2,259 306 404 1,143 406 1,239 121 899 201 200 2 28 20 8 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 64 EMPLOYMENT □ MAY 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 p t t i a u tu l l a t n i t o o io n n n a - l lab N o o r t f i o n r ce T l f a o o b r t c o a e r l Employed1 Une m r m a e t p e n 2 l t oy­ (N.S.A.) (N.S.A.) (S.A.) Total Total In c n u o lt n u a ra g l r i­ In U pl n o e y m ed ­ (pe S r .A ce .) nt; industries agriculture 1967 3......... 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2.975 3.8 196 8 135,562 53,291 82,272 7&,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 197 2 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1972—Apr. 145,227 57.440 88,647 86,184 81,209 77,896 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 Mar, 147,541 57,856 90,629 88.268 83,889 80,409 3,480 4,379 5.0 Apr. 147,729 57,906 90,700 88,350 83,917 80,606 3,311 4,433 5.0 1 Includes self-employed, unpaid family, and domestic service workers. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ T t l i i o r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 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 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 seasonally adjusted 1972—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..................................................... 74,245 19,469 610 3,502 4,574 15,989 3,999 12,621 13,481 Feb.................................................... 74,725 19,578 613 3,594 4,580 16,127 4,014 12,682 13,537 Mar.*............................................... 74,933 19,627 611 3,609 4,589 16,215 4,024 12,695 13,563 Apr.*................................................ 75,042 19,740 603 3,550 4,591 16,188 4,031 12,726 13,613 not seasonally adjusted 1972—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..................................................... 73,343 19,279 598 3,155 4,510 15,865 3,959 12,406 13,571 Feb.................................................... 73,724 19,420 598 3,184 4,507 15,776 3,978 12,530 13,731 Mar.*............................................... 74,255 19,520 598 3,299 4,543 15,895 4,000 12,619 13,781 Apr.*................................................ 74,826 19,590 598 3,429 4,554 16,108 4,019 12,739 13,789 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 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

MAY 1973 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1972 1973 1972 1973 Apr. Feb. Mar.* Apr.* Apr. Feb. Mar.* Apr.* 13,711 14,396 14,441 14,545 13,578 14,258 9 14,347 14,408 Durable goods........................................................................ 7,805 8,379 8,414 8,503 7,774 8,334 8,398 8,469 Ordnance and accessories.......................................... 91 103 102 103 90 102 102 101 Lumber and wood products...................................... 524 542 543 547 512 527 531 535 Furniture and fixtures................................................. 402 425 427 432 397 424 425 427 Stone, clay, and glass products................................ 519 547 550 551 515 527 537 546 Primary metal industries............................................ 965 1,031 1,026 1,032 977 1,032 1,037 1,045 Fabricated metal products........................................ 1,038 1,103 1,106 1,119 1,030 1,096 1,102 1,110 Machinery..................................................................... 1,200 1,328 1,340 1,354 1,210 1,341 1,354 1,365 1,214 1,337 1,348 1,366 1,203 1,333 1,342 1,354 Transportation equipment........................................ 1,252 1,324 1,331 1,357 1,250 1,331 1,340 1,354 Instruments and related products............................ 269 295 297 298 268 294 297 297 331 344 344 344 323 329 333 335 5,906 6,017 6,027 6,042 5,804 5,924 5,949 5,939 Food and kindred products...................................... 1,186 1,185 1,183 1,180 1,109 1,112 1,111 1,103 Tobacco manufactures............................................... 63 61 63 65 55 58 57 57 865 902 901 901 863 898 900 898 Apparel and related products................................... 1,173 1,173 1,174 1,189 1,166 1,175 1,183 1,182 Paper and allied products.......................................... 531 552 554 550 528 546 550 547 656 661 662 663 656 660 663 663 Chemicals and allied products.................................. 575 587 592 590 578 585 592 593 Petroleum refining and related industries............... 117 115 116 115 115 112 113 114 Rubber and misc. plastic products............................ 478 529 530 535 475 526 529 532 Leather and leather products.................................... 262 252 252 254 259 252 251 251 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 Apr. Feb. Mar.* Apr.* Apr. Feb. Mar.* Apr.* Apr. Feb. Mar.* Apr.* 40.8 40.9 40.9 41.1 152.28 161.18 162.38 163.61 3.76 3.97 3.98 4.01 41.4 42.0 41.6 42.0 165.21 175.97 175.97 177.64 4.01 4.23 4.23 4.26 Ordnance and accessories............................. 42.2 42.7 42.3 41.9 170.93 177.21 176.38 175.98 4.06 4.15 4.15 4.21 Lumber and wood products........................ 41.1 40.6 41.0 41.3 133.99 139.15 141.92 145.79 3.26 3.47 3.47 3.53 Furniture and fixtures.................................... 40.7 40.6 40.6 40.7 121.50 126.17 128.15 128.72 3.03 3.17 3.18 3.21 Stone, clay, and glass products................... 42.0 42.2 42.2 42.5 161 32 167.26 170.52 173.84 3.85 4.04 4.06 4.10 Primary metal industries.............................. 41.4 42.4 42.2 42.4 191.36 206.06 206.91 208.80 4.60 4.86 4.88 4.89 Fabricated metal products........................... 41.4 41.9 41.7 42.0 161.54 171.81 172.23 174.30 3.94 4.15 4.15 4.19 Machinery........................................................ 41.9 42.8 42.7 42.7 176.40 190.46 191.78 191.70 4.22 4.45 4.46 4.50 Electrical equipment and supplies.............. 40.8 41.1 40.6 40.9 146.25 153.47 153.87 154.31 3.62 3.78 3.79 3.81 Transportation equipment........................... 43.0 43.3 42.1 43.5 196.51 213.50 208.32 212.42 4.69 5.00 4.96 5.01 Instruments and related products............... 40.7 40.8 40.7 40.9 149.85 154.71 155.88 156.70 3.70 3.82 3.83 3.85 Miscellaneous manufacturing industries... 39.6 39.3 39.2 39.1 122.06 125.90 126.94 124.80 3.09 3.22 3.23 3.20 Nondurable goods................................................... 39.8 39.7 39.8 39.9 135.49 141.09 142.96 143.35 3.43 3.59 3.61 3.62 Food and kindred products......................... 40.7 40.2 40.2 40.2 143.60 148.50 149.29 149.29 3.59 3.75 3.77 3.77 Tobacco manufactures.................................. 34.1 35.6 36.0 36.4 114.53 126.29 128.76 134.87 3.46 3.65 3.70 3.81 Textile-mill products...................................... 41.7 41.1 41.3 41.9 111.92 117.79 119.07 120.35 2.71 2.88 2.89 2.90 Apparel and related products..................... 36.2 36.0 36.1 36.4 92.88 97.38 99.10 99.19 2.58 2.72 2.73 2.74 Paper and allied products............................ 42.9 43.0 43.0 43.0 164.44 173.38 173.79 175.50 3.86 4.07 4.07 4.11 Printing, publishing, and allied industries. 38.0 38.0 38.0 38.0 167.83 172.21 175.18 175.01 4.44 4.58 4.61 4.63 Chemicals and allied products..................... 41.7 42.0 42.0 41.7 172.63 181.83 183.12 183.52 4.12 4.35 4.36 4.38 Petroleum refining and related industries . 42.4 41.9 42.0 42.2 209.53 209.71 212.80 220.81 4.93 5.09 5.14 5.22 Rubber and misc. plastic products............. 41.3 41.5 41.6 41.5 145.55 153.68 153.64 153.68 3.55 3.73 3.72 3.73 Leather and leather products....................... 39.1 j 37.7 37.9 38.8 102.60 104.81 105.28 105.18 2.70 2.78 2.80 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 66 PRICES □ MAY 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 - - c F a o o n u i a e d l l l t e r G a i l c n e a i c d s t ­ y o n F i p a n i n 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 e d 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—Mar................. 124.0 122.4 127.9 trl18.0 138.2 118.7 119.7 120.1 121.3 118.4 125.0 131.4 118.7 121.7 124.6 Apr................. 124.3 122.4 128.2 trll8.4 138.5 118.6 120.2 120.5 121.8 118.6 125.5 131.7 119.1 122.3 125.1 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 trll9.0 139.6 117.8 120.3 121.0 122.1 119.8 126.1 132.4 120.0 122.9 125.6 July................. 125.5 124.2 129.5 trll9.2 140.7 117.7 120.3 121.1 121.1 120.3 126.3 132.7 120.0 123.0 125.8 Aug................. 125.7 124.6 129.9 J rl 19.6 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 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.................. 126.6 124.9 130.4 120.3 141.8 118.1 120.9 121.8 124.3 121.2 127.2 133.9 120.8 124.0 126.4 126.9 125.4 130.8 120.5 142.0 119.3 122.2 122.1 125.0 121.4 127.4 134.1 121.0 124.1 126.4 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 Feb................. 128.6 131.1 132.0 122.1 142.9 127.2 124.5 122.6 123.6 121.1 128.1 135.3 122.4 124.3 127.1 Mar................ 129.8 134.5 132.3 122.6 143.2 127.8 125.0 123.0 124.8 121.5 128.6 135.8 123.1 124.5 127.6 t Indexes affected by refunds of residential telephone series changes in Note.—Bureau of Labor Statistics index for city wage-eamers and California and retroactive rent increases in New York City. clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ c f f e P o a e s r n o e s o d d d e ­ s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c m M a q e h n e r u i a y n d n i ­ p t ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i l e n l n i ­ s c ­ ­ T e m p t q r o i e a o u r n n n i t p a s t1 ­ ­ ­ n c M e e o l i l u s a ­ s ­ 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—Apr..................... 117.5 119.1 117.7 117.3 112.6 127.2 116.9 104.1 108.7 141.1 112.8 123.5 117.6 111.0 125.6 113.7 114.1 May................... 118.2 122.2 118.6 117.6 113.3 129.5 117.5 104.4 108.8 142.7 113.2 123.6 117.9 111.1 125.9 113.8 114.1 June................... 118.8 124.0 119.6 117.9 113.6 130.9 118.2 104.3 108.9 144.2 113.5 123.6 118.1 111.2 125.8 114.2 114.2 July..................... 119.7 128.0 121.5 118.1 114.0 131.6 118.6 104.2 109.2 146.1 113.7 123.5 118.3 111.4 126.2 114.1 114.9 Aug..................... 119.9 128.2 121.0 118.5 114.1 134.6 119.7 104.4 109.5 148.1 114.1 123.7 118.3 111.7 126.7 114.2 115.1 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...................... 124.5 144.2 132.4 120.0 116.6 143.9 122.2 105.1 110.0 151.0 115.8 125.6 118.9 112.6 128.2 114.1 115.8 Feb..................... 126.9 150.9 137.0 121.3 117.4 144.9 126.0 105.6 110.1 161.0 116.5 126.9 119.4 113.1 128.4 114.2 117.1 Mar.................... 129.7 160.9 141.4 122.7 119.0 143.5 126.7 106.7 110.3 173.2 118.3 129.2 120.0 113.5 129.0 114.5 117.9 Apr..................... 130.7 160.6 139.8 124.4 120.8 145.0 131.8 107.7 110.6 182.0 119.8 130.5 120.8 114.1 130.0 114.9 118.6 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1972 1973 1972 1973 Group Group Apr. Feb. Mar. Apr. Apr. Feb. Mar. Apr. Farm products: Pulp, paper, and allied products: Fresh and dried produce..................... 117.6 146.9 158.5 ■176.0 Pulp, paper and products, excluding Grains...................................................... 96.0 128.2 126.1 130.9 building paper and board............. 113.1 116.9 118.6 120.2 Livestock................................................. 133.8 177.8 194.4 184.1 Woodpulp............................................ 111.5 111.5 111.5 122.2 Live poultry............................................ 94.1 137.0 164.8 185.8 Wastepaper.......................................... 131.0 135.8 136.9 149.3 Plant and animal fibers........................ 122.1 140.0 152.7 154.7 Paper..................................................... 115.9 118.5 119.2 120.2 Fluid milk............................................... 122.1 128.5 130.3 130.4 Paperboard.......................................... 105.6 109.7 110.7 113.0 Eggs.......................................................... 87.2 130.1 152.6 144.9 Converted paper and paperboard.. 112.7 117.3 120.0 120.4 Hay and seeds........................................ 118.5 178.1 188.1 186.9 Building paper and board................ 106.1 108.1 108.5 109.3 Other farm products............................. 118.0 140.5 143.3 142.1 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 112.8 120.8 121.3 123.7 Meat, poultry, and fish........................ 123.6 153.1 165.1 163.2 Iron and steel................................... 128.3 133.0 133.3 134.0 Dairy products...................................... 117.5 124.0 126.8 127.2 Steelmill products.......................... 130.9 132.7 133.2 133.7 Processed fruits and vegetables.......... 118.3 125.9 126.2 126.6 Nonferrous metals.......................... 117.6 121.0 128.3 131.4 Sugar and confectionery...................... 121.1 124.4 125.7 126.9 Metal containers............................. 127.3 130.8 135.7 135.7 Beverages and beverage materials... 117.2 120.0 120.8 121.4 Hardware......................................... 119.6 121.9 122.1 122.8 Animal fats and oils............................. 127.8 134.7 174.1 176.7 Plumbing equipment...................... 119.0 121.6 123.3 124.8 Crude vegetable oils.............................. 118.9 123.1 139.3 145.0 Heating equipment......................... 117.9 119.2 119.5 120.5 Refined vegetable oils........................... 120.9 120.3 132.5 136.1 Fabricated structural metal products 122.1 124.7 125.0 125.7 Vegetable oil end products................. 120.7 122.2 127.0 125.6 Miscellaneous metal products........... 124.3 125.8 126.7 127.3 Miscellaneous processed foods........... 113.8 117.3 118.7 118.7 Manufactured animal feeds................. 108.5 182.5 182.3 166.7 Textile products and apparel: Machinery and equipment: Cotton products.................................... 120.5 128.2 130.0 133.3 Agricultural machinery and equip... 122.1 124.4 124.7 124.7 Wool products....................................... 93.0 119.2 127.7 129.8 Construction machinery and equip.. 125.7 127.4 128.6 130.4 Manmade fiber textile products.... 107.2 111.8 115.2 118.7 Metalworking machinery and equip 119.7 122.5 123.4 124.5 Apparel.................................................... 114.2 116.8 117.0 117.7 General purpose machinery and Textile housefumishings...................... 108.7 110.3 110.5 110.5 equipment.......................................... 121.9 124.3 124.9 125.6 Miscellaneous textile products........... 131.1 120.4 120.4 121.9 Special industry machinery and equipment.......................................... 123.4 126.5 127.0 128.5 Hides, skins, leather, and products: Electrical machinery and equip......... 110.2 111.0 111.3 111.7 Miscellaneous machinery................... 119.6 121.5 122.4 123.1 Hides and skins...................................... 188.6 272.7 246.4 270.2 Leather..................................................... 138.1 162.9 164.5 161.1 Footwear................................................. 122.4 130.9 131.1 131.5 Other leather products......................... 113.7 129.4 129.4 129.9 Furniture and household durables: Fuels and related products, and power: Household furniture.......................... 116.9 119.4 120.0 121.8 Commercial furniture........................ 119.2 123.8 123.8 123.8 Coal.......................................................... 191.2 206.9 207.4 213.8 Floor coverings.................................. 98.2 100.9 101.1 101.7 Coke......................................................... 155.3 164.6 164.6 166.9 Household appliances....................... 107.5 108.2 108.4 108.3 Gas fuels.................................................. 112.5 118.6 118.9 120.1 Home electronic equipment............. 92.8 92.4 92.2 92.2 Electric power........................................ 120.5 125.9 126.8 127.6 Other household durable goods... 124.5 128.1 129.1 130.3 Crude petroleum.................................... 113.2 114.7 114.9 117.1 Petroleum products, refined................ 106.6 118.7 119.4 127.9 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals.............................. 101.5 101.8 101.9 102.6 Flat glass.............................................. 121.1 122.5 124.1 124.1 Prepared paint........................................ 118.3 119.4 119.9 120.3 Concrete ingredients.......................... 126.4 129.2 129.9 131.6 Paint materials....................................... 103.0 107.7 107.7 108.9 Concrete products.............................. 125.1 128.9 129.6 130.8 Drugs and pharmaceuticals................. 102.4 103.6 103.8 103.8 Structural clay products excluding Fats and oils, inedible.......................... 112.2 139.1 173.9 184.0 refractories....................................... 117.2 121.5 122.2 123.0 Agricultural chemicals and products. 92.2 93.1 93.6 94.5 Refractories......................................... 127.1 136.3 136.3 136.3 Plastic resins and materials................. 88.3 90.0 90.5 91.3 Asphalt roofing.................................. 131.2 131.2 131.2 134.1 Other chemicals and products........... 113.5 114.2 115.1 116.3 Gypsum products.............................. 114.9 115.8 118.1 119.6 Glass containers.................................. 136.2 136.4 136.4 136.8 Rubber and plastic products: Other nonmetallic minerals............. 126.4 128.0 128.3 128.5 Rubber and rubber products............. 112.9 115.1 115.5 115.7 Crude rubber...................................... 98.2 104.8 107.2 108.5 Tires and tubes.................................. 108.4 109.3 109.3 109.4 Transportation equipment: Miscellaneous rubber products.... 120.4 122.3 122.5 122.5 Plastic construction products (Dec. Motor vehicles and equipment. 118.1 118.2 118.6 119.0 1969 = 100)............................................. 93.6 94.3 93.9 93.8 Railroad equipment..................... 128.4 132.2 132.7 133.4 Unsupported plastic film and sheeting (Dec. 1970= 100)................................. 98.4 98.8 99.1 99.2 Laminated sheets, high pressure (Dec. 1970= 100)................................. 98.4 96.2 95.2 96.6 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, 114.0 116.5 117.1 117.2 ammunition....................................... 117.4 121.0 121.8 122.0 Lumber.................................................... 155.1 182.3 195.8 207.2 Tobacco products................................ 111.7 113.1 113.1 113.1 Mill work................................................. 126.6 133.4 134.8 141.2 Notions................................................... 106.2 107.5 108.5 108.4 Plywood................................................... 128.9 149.4 176.8 182.5 Photographic equipment and supplies Other wood products............................ 121.1 135.1 140.9 147.4 Other miscellaneous products........... 115.0 118.9 119.9 122.2 Note.—Bureau of Labor Statistics indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 NATIONAL PRODUCT AND INCOME □ MAY 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 1 ! I II I III IV I* ! 1 103.1 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,109.11,139.41,164.01,194.91,235.5 101.4 57.2 120.1 278.0 857.1 922.5! 971.51,046.71.145.91,108.61,134.41,156.01,184.61,227.6 77.2 45.8 80.6 191.0 536.2 579.5 616.8 664.9 721.0 696.1 713.4 728.6 745.7 773.7 Durable goods................................................... 9.2 3.5 9.6 30.5 84.0 90.8 90.5 103.5 116.1 111.0 113.9 118.6 120.8 130.1 Nondurable goods............................................ 37.7 22.3 42.9 98.1 230.8 245.9 264.4 278.1 299.5 288.3 297.2 302.0 310.4 322.9 30.3 20.1 28.1 62.4 221.3 242.7 261.8 283.3 305.4 296.7 302.4 308.0 314.5 320.7 Gross private domestic investment..................... 16.2 1.4 17.9 54.1 126.0 139.0 137.1 152.0 180.4 168.1 177.0 183.2 193.4 199.4 14.5 3.0 13.4 47.3 118.9 131.1 132.2 148.3 174.5 167.7 172.0 175.2 183.1 191.5 10.6 2.4 9.5 27.9 88.8 98.5 100.9 105.8 120.6 116.1 119.2 120.7 126.1 132.3 Structures................................................... 5.0 .9 2.9 9.2 30.3 34.2 36.0 38.4 42.2 41.3 42.0 41.8 43.7 46.3 Producers’ durable equipment.............. 5.6 1.5 6.6 18.7 58.5 64.3 64.9 67.4 78.3 74.8 77.2 79.0 82.3 86.0 Residential structures.................................. 4.0 . 6 3.9 19.4 30.1 32.6 31.2 42.6 54.0 51.6 52.8 54.4 57.0 59.2 3.8 .5 3.7 18.6 29.5 32.0 30.7 42.0 53.2 51.0 52.1 53.7 56.1 58.3 Change in business inventories..................... 1.7 -1.6 4.5 6.8 7.1 7.8 4.9 3.6 5.9 .4 5.0 8.0 10.3 7.9 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 7.5 1.1 .4 1.3 1.8 2.5 1.91 3.6 .7 -4.2 -4.6 -5.2 -3.4 -3.5 -4.4 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.1 73.7 70.7 70.0 74.4 79.6 86.6 5.9 2.0 4.6 12.0 48.1 53.6 59.3 65.4 77.9 75.3 75.2 77.8 83.1 91.0 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 199.6 210.0 219.0 232.8 254.6 249.4 254.1 255.6 259.3 266.8 Federal................................................................ 1.3 2.0 16.9 18.4 98.8 98.8 96.5 97.8 105.8 105.7 108.1 105.4 104.0 107.0 National defense.......................................... 13.8 14.1 78.3 78.4 75.1 71.4 75.9 76.7 78.6 75.1 73.2 75.0 Other............................................................... 3.1 4.3 20.5 20.4 21.5 26.3 29.9 28.9 29.6 30.2 30.8 32.1 7.2 6.0 7.9 19.5 100.8 111.2 122.5 135.0 148.8 143.7 146.0 150.2 155.2 159.8 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 706.6 725.6 722.1 741.7 789.5 766.5 783.9 796.1 811.6 827.1 i 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) 1972 1973 1929 1933 1941 1950 1968 1969 1970 1971 1972 Item I II III IV Ip National income.................................................... 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.2 Compensation oi employees............................... 51.1 29.5 64.8 154.6 514.6 566.0 603.8 644.1 705.3 682.7 697.8 710.2 730.3 757.3 Wages and salaries........................................... 50.4 29.0 62.1 146.8 464.9 509.7 541.9 573.5 626.5 606.6 620.0 630.6 648.8 668.4 Private........................................................... 45.5 23.9 51.9 124.4 369.2 405.6 426.8 449.7 491.9 475.8 487.1 494.8 510.0 524.9 Military......................................................... .3 .3 1.9 5.0 17.9 19.0 19.6 19.4 20.6 20.8 20.5 20.4 20.6 21.8 Government civilian................................... 4.6 4.9 8.3 17.4 77.8 85.1 95.5 104.4 114.0 110.0 112.4 115.4 118.1 121.6 Supplements to wages and salaries.............. .7 .5 2.7 7.8 49.7 56.3 61.9 70.7 78.8 76.1 77.8 79.6 81.5 88.9 Employer contributions for social in­ surance ...................................................... .1 .1 2.0 4.0 24.3 27.8 29.7 34.1 38.5 37.3 38.0 38.8 39.8 46.2 Other labor income.................................... .6 .4 .1 3.8 25.4 28.4 32.1 36.5 40.3 38.8 39.8 40.8 41.8 42.7 Proprietors’ income............................................. 15.1 5.9 17.5 37.5 64.2 67.2 66.8 70.0 75.2 73.3 73.2 75.3 79.0 81.2 Business and professional............................ 9.0 3.3 11.1 24.0 49.5 50.5 49.9 52.6 55.6 54.3 54.4 56.2 57.4 58.7 Farm.................................................................. 6.2 2.6 6.4 13.5 14.7 16.7 16.9 17.3 19.6 19.1 18.7 19.1 21.6 22.5 Rental income oi persons.................................. 5.4 2.0 3.5 9.4 21.2 22.6 23.3 24.5 25.6 25.2 24.2 26.2 26.9 26.5 Corporate profits and inventory valuation adjustment........................................................ 10.5 -1.2 15.2 37.7 84.3 79.8 69.9 78.6 88.2 81.8 86.1 89.6 95.6 Profits before tax........................................... 10.0 1.0 17.7 42.6 87.6 84.9 74.3 83.3 94.3 88.2 91.6 95.7 101.5 Profits tax liability...................................... 1.4 .5 7.6 17.8 39.9 40.1 34.1 37.3 41.3 38.8 40.1 41.8 44.3 Profits after tax.......................................... 8.6 .4 10.1 24.9 47.8 44.8 40.2 45.9 53.0 49.5 51.5 53.9 57.2 Dividends................................................. 5.8 2.0 4.4 8.8 23.6 24.3 24.8 25.4 26.4 26.0 26.2 26.5 26.7 27.2 Undistributed profits............................ 2.8 -1.6 5.7 16.0 24.2 20.5 15.4 20.5 26.6 23.5 25.3 27.3 30.5 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.4 -4.7 -6.0 -6.5 -5.5 -6.1 -5.9 -13.3 Net interest........................................................... 4.7 4.1 3.2 2.0 26.9 30.5 34.8 38.5 41.3 40.1 40.9 41.7 42.5 43.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 III IV Gross national product. 103.1 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,109.11,139.41,164.01,194.91,235.5 Less: Capital consumption allowances........ 7.9 7.0 8.2 18.3 74.5 81.6 86.3 93.8 103.7 99.7 105.3 104.1 105.6 107.2 Indirect business tax and nontax lia­ bility ..................................................... 7.0 7.1 11.3 23.3 78.6 85.9 93.4 101.9 110.1 106.7 108.7 111.4 113.7 116.3 Business transfer payments................. .6 .7 .5 .8 3.4 3.8 4.2 4.6 4.9 4.8 4.9 5.0 5.0 5.1 Statistical discrepancy........................... .7 .6 .4 1.5 -2.7 -6.1 -4.7 -4.8 -0.8 -4.1 -.1 2.3 -1.5 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 .7 1.0 1.5 .9 1.7 1.2 1.6 1.8 2.2 .7 Equals: National income. 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.2 Less: Corporate profits and inventory valu­ ation adjustment................................. 10.5 — 1.2 15.2 37.7 84.3 79.8 69.9 78.6 88.2 81.8 86.1 89.6 95.6 Contributions for social insurance---- .2 .3 2.8 6.9 47.1 54.2 57.7 65.3 74.0 71.9 73.1 74.6 76.3 88.9 Excess of wage accruals over disburse­ ments..................................................... .6 -.5 -1.4 -.5 -.2 .0 .0 Plus: Government transfer payments........... .9 1.5 2.6 14.3 56.1 61.9 75.2 89.0 99.1 94.4 95.7 97.7 108.5 109.3 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 31. 31.7 32.0 32.7 Dividends................................................... 5.8 2.0 4.4 8.8 23.6 24.3 24.8 25.4 26.4 26.0 26.2 26.5 26.7 27.2 Business transfer payments................... .6 .7 .5 3.4 3.8 4.2 4.6 4.9 4.8 4.9 5.0 5.0 5.1 Equals: Personal income.................................. 85.9 47.0 96.0 227.6 688.9 750.9 806.3 861.4 935.9 907.0 922.1 939.9 974.6 993.9 Less: Personal tax and nontax payments... 2.6 1.5 3.3 20.7 97.9 116.5 116.7 117.0 140.8 136.5 139.5 141.1 146.4 143.0 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 591.0 634.4 689.5 744.4 795.1 770.5 782.6 798.8 828.2 850.9 Less: Personal outlays...................................... 79.1 46.5 81.7 193.9 551.2 596.2 634.7 683.4 740.2 714.9 732.5 748.0 765.5 793.9 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 616.8 664.9 721.0 696.1 713.4 728.6 745.7 773.7 Consumer interest payments............. 1.5 .5 .9 2.4 14.3 15.8 16.9 17.6 18.2 17.8 18.0 18.2 18.6 19.0 Personal transfer payments to for­ eigners................................................ .3 .2 .2 .5 .9 1.0 1.0 1.1 1.0 1.1 1.2 1.2 1.2 Equals: Personal saving...................................... 4.2 -.9 11.0 13.1 39.8 38.2 54.9 60.9 54.8 55.7 50.1 50.8 62.8 56.9 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 499.0 513.6 533.2 554.7 578.5 565.7 571.4 579.6 597.3 605.9 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) 1972 1973 Item 1971 1972 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total personal income............................ 861.4 935.9 913.6 919.4 924.0 922.9 932.9 940.0 946.8 964.6 976.2 982.9 986.0 994.5 1,001.2 Wage and salary disbursements........... 572.9 627.0 612.4 617.6 619.9 624.0 625.7 630.6 636.0 643.0 648.5 654.9 662.7 668.4 674.1 Commodity-producing industries.. 206.1 224.6 220.1 221.7 222.5 223.5 222.4 225.2 227.8 231.0 233.3 235.8 237.7 240. 243.2 Manufacturing only........................ 160.3 175 171.3 173.3 173. 175.0 174.5 176.6 178. 181.5 183.9 186.2 187.0 189.5 191.3 Distributive industries....................... 138.2 151.5 148.0 149.4 149.4 151.4 151.9 152.3 153.0 155.0 156.3 158.0 159.5 160.2 161.4 Service industries................................ 105.0 116.1 112.8 113.9 114.7 115.5 116.9 117.3 118.2 119.3 119.9 121.5 123.0 124.1 125.0 Government......................................... 123.5 134.8 131.5 132.5 133.2 133.6 134.5 135.8 137.0 137.7 139.0 139.7 142.5 143.5 144.5 Other labor income................................ 36.5 40.3 39.1 39.5 39.8 40.1 40.5 40.8 41.1 41.4 41.8 42.1 42.4 42.7 43.0 Proprietors* income................................ 69.9 75.2 74.2 74.0 74.0 71.6 74.3 75.4 76.2 77.7 79.5 79.8 80.4 81.2 81.9 Business and professional................. 52.6 55.6 54.7 54.9 55.3 53.2 55.7 56.3 56.7 57.0 57.4 57.8 58.2 58.7 59.1 Farm...................................................... 17.3 19.6 19.5 19.1 18.7 18.4 18.6 19.1 19.5 20.7 22.1 22.0 22.2 22.5 22.8 Rental income......................................... 24.5 25.6 25.3 25.5 25.6 21.5 25. 26.3 26.5 27.0 26.7 26.9 26.6 26.6 26.3 Dividends................................................. 25.4 26.4 26.0 26.1 26.3 26.3 26.4 26.6 26.5 26.7 26.6 26.8 27.1 27.3 27.1 Personal interest income........................ 69.6 72.9 71.3 72.0 72.7 73.4 73.5 73.4 73.3 73.7 74.5 75.4 75.9 76.2 76.5 Transfer payments.................................. 93.6 104.0 100.1 99.7 100.9 101.3 102.2 102.8 103.2 111.6 115.2 113.6 113.3 114.8 115.2 Less: Personal contributions for social insurance...................................... 31.2 35.5 34.8 35.0 35.1 35.3 35.5 35.8 36.0 36.4 36.5 36.6 42.4 42.7 43.0 Nonagricultural income...................... 837.2 909.3 887.1 893.4 898.3 897.5 907.3 914.0 920.3 937.1 947.2 953.9 956.6 964.6 971.1 Agricultural income............................ 24.2 26.6 26.5 26.0 25.8 25.4 25.5 25.9 26.5 27.6 29.0 29.0 29.4 29.8 30.1 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 FLOW OF FUNDS □ MAY 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 HI 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 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 Commercial.......................... 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 21.1 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 Nonfinancial business..................... 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 Nonfarm noncorporate................ 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 2.1 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 outlaysi............... 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 Capital consumption....................... 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 Net physical investment................. 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 Corporate equity issues.................. 1 .2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 11.9 10 11 Excess net investment3................... 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 Net physical investment................. 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 Net debt funds raised..................... 24.0 27.4 31.6 35.9 33.0 35.1 38.6 33.2 34.9 31.2 34.7 35.6 38.8 45.0 15 16 Corporate equity issues................. 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 11.9 16 17 Excess net investment3................... 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 Net funds raised............................... 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-71, line 11. flows and annually in amounts outstanding. Requests for these statements Corporate share issues are net cash issues by nonfinancial and foreign should be 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* Digitized for FRinAgStoEn,R D .C., 20551. acceptances. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ FLOW OF FUNDS A 71 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 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 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 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 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 6.2 4.4 FHLB advances to S&L’s............ .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2 -.1 -5.8 .5 -2.7 2.8 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 By agency— 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 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 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 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 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 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 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 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 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 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 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 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 Private financial intermediation 19 Credit market funds advanced by pri­ vate financial institutions.......... 44.7 62. 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 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. 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. 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 Currency............... 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 posits, and currency................. 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 Total foreign funds......................... 2.1 4.3 2.9 9.0 1.8 23.1 11.8 6.2 4.9 -1.3 19.1 27.1 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 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 branches, and liabilities of foreign banking agencies to foreign af­ Line filiates. 1. Total funds raised (line 1 of p. A-70) excluding corporate equities. 29. Demand deposits at commercial banks. 2. Sum of lines 3-6 or 7-10. 30. Excludes net investment of these reserves in corporate equities. 6. Includes farm and commercial mortgages. 31. Mainly retained earnings and net miscellaneous liabilities. 11. Credit market funds raised by Federally sponsored credit agencies. 32. Line 12 less line 19 plus line 26. Included below in lines 13 and 33. Includes all GNMA-guaranteed 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 security issues backed by mortgage pools. includes mortgages. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 39+41. See line 25. Also sum of lines 27 through 41 excluding subtotals. 42. Mainly an offset to line 9. 17. Includes farm and commercial mortgages. 43. Lines 32 plus 38 or line 12 less line 27 plus line 42. 25. Lines 39 + 41. 44. Line 2/line 1. 26. Excludes equity issues and investment company shares. Includes 45. Line 19/line 12. line 18. 46. Lines 10 plus 28. 28. Foreign deposits at commercial banks, bank borrowings from foreign Corporate equities Digitized for FRASER Line 1 and 3 Includes issues by financial institutions. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ MAY 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1971 1972 Line Credits+, debits — 1970 1971 1972* IV I II III IV* Summary—Seasonally adjusted 1 Merchandise trade balance 1......................................................... 2,164 -2,666 -6,816 -1,534 -1,831 -1,777 -1,525 -1,683 2 Exports...................................................................................... 41,963 42,787 48,840 9,583 11,659 11,561 12,380 13,240 3 Imports...................................................................................... -39,799 -45,453 -55,656 -11,117 -13,490 -13,338 -13,905 -14,923 4 Military transactions, net............................................................... -3,374 -2,894 -3,541 -807 -884 -958 -850 -850 5 Travel and transportation, net..................................................... -2,061 -2,432 -2,583 -703 -667 -645 -613 -660 6 Investment income, net 2............................................................... 6,259 7,995 7,901 2,295 1,879 1,788 1,921 2,313 7 U.S. direct investments abroad............................................ 7,920 9,455 10,293 2,770 2,324 2,383 2,570 3,016 8 Other U.S. investments abroad............................................ 3,506 3,443 3,499 881 942 822 854 882 9 Foreign investments in the United States......................... -5,167 -4,903 -5,891 -1,356 -1,387 -1,417 -1,503 -1,585 10 574 748 819 172 200 192 203 224 11 3,563 750 -4,219 -577 -1,303 -1,400 -864 -656 12 Remittances, pensions, and other transfers.............................. -1,474 -1,529 -1,557 -404 -389 -383 -368 -416 13 Balance on goods, services, and remittances...................................... 2,089 -779 -5,776 -981 -1,692 -1,783 -1,232 -1,072 14 U.S. Government grants (excluding military)........................... -1,734 -2,045 -2,208 -588 -601 -535 -538 -534 15 356 -2,824 -7,983 -1,569 -2,293 -2,318 -1,770 -1,606 16 U.S. Government capital flows excluding nonscheduled repayments, net 4........................................................................ -1,829 -2,117 -1,708 -385 -330 -269 -509 -601 17 Nonscheduled repayments of U.S. Government assets........... 244 225 127 48 88 17 7 16 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. -433 -486 214 -196 -101 157 180 -22 19 Long-term private capital flows, net........................................... -1,398 -4,079 107 330 -1,081 750 -254 690 20 U.S. direct investments abroad............................................ -4,400 -4,765 -3,339 -788 -1,266 -100 -1,116 -857 21 1,030 -67 322 181 -360 350 237 95 22 Foreign securities.................................................................... -942 -909 -619 73 -393 -354 211 -84 23 U.S. securities other than Treasury issues......................... 2,190 2,282 4,502 921 1,067 956 611 1,868 24 Other, reported by U.S. banks............................................ 198 -814 -1,102 -165 22 -269 -408 -447 25 526 194 343 108 -151 167 211 115 26 Balance on current account and long-term capital 4.......................... -3,059 -9,281 -9,243 -1,772 -3,717 -1,663 -2,346 -1,523 27 Nonliquid short-term private capital flows, net....................... -482 -2,386 -1,634 -654 — 5Q8 592 -507 -1,211 28 Claims reported by U.S. banks............................................ -1,023 -1,807 -1,530 -685 -587 467 -370 -1,040 29 Claims reported by U.S. nonbanking concerns............... -361 -555 -243 -130 -17 103 -91 -238 30 Liabilities reported by U.S. nonbanking concerns.......... 902 -24 139 161 96 22 -46 67 31 Allocations of Special Drawing Rights (SDR’s).................... 867 717 710 179 178 178 177 177 32 Errors and omissions, net............................................................. -1,174 -11,054 -3,806 -2,082 942 -1,314 -1,825 -1,608 33 Net liquidity balance................................................................................ -3,851 -22,002 -13,974 -4,329 -3,105 -2,207 -4,501 -4,165 34 -5,988 -7,763 3,677 -1,619 -119 1,386 -173 2,583 35 Liquid claims............................................................................ 252 -1,072 -1,139 -340 -673 197 -613 -50 36 Reported by U.S. banks................................................ -99 -566 -733 -112 -533 312 -469 -43 37 Reported by U.S. nonbanking concerns................... 351 -506 -406 -228 -140 -115 -144 -7 38 Liquid liabilities..................................................................... -6,240 -6,691 4,816 -1,279 554 1,189 440 2,633 39 To foreign commercial banks...................................... -6,508 -6,908 3,905 -1,313 476 980 316 2,133 40 To international and regional organizations............. 181 682 102 55 25 -72 -31 180 41 To other foreigners......................................................... 87 -465 809 -21 53 281 155 320 42 -9,839 -29,765 -10,297 -5,948 -3,224 -821 -4,674 -1,582 Financed by changes in: 43 Liquid liabilities to foreign official agencies.............................. 7,637 27,615 9,676 5,774 2,294 1,027 4,617 1,742 44 Other readily marketable liabilities to foreign official agen­ cies................................................................................................... -810 -539 400 -5 221 27 34 118 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt................................................................... 535 341 189 366 280 -2 78 -167 46 2,477 2,348 32 -187 429 -231 -55 -111 47 Gold........................................................................................... 787 866 547 1 544 3 48 SDR’s........................................................................................ -851 -249 -703 -182 -178 -171 -177 -177 49 Convertible currencies........................................................... 2,152 381 35 2 64 -245 134 82 50 389 1,350 153 -8 -1 185 -15 -16 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)....................................................................... 2,586 3,153 4,284 939 1,205 797 1,323 959 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

MAY 1973 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1971 1972 Credits +, debits — 1970 1971 1972* IV I II III IV* Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance............................................................................ -4,718 -22,719 -14,684 -4,508 -3,283 -2,385 -4,678 -4,342 Official reserve transactions balance................................................. -10,706 -30,482 -11,007 -6,127 -3,402 -999 -4,851 -1,759 Balances not seasonally adjusted Balance on goods and services........................................................... 3,563 750 -4,219 300 -803 -1,457 -2,292 333 Balance on goods, services, and remittances.................................. 2,089 -779 -5,776 -100 -1,171 -1,853 -2,671 -80 Balance on current account................................................................ 356 -2,824 -7,983 -653 -1,801 -2,435 -3,169 -579 Balance on current account and long-term capital 4.................... -3,059 -9,281 -9,243 97 -3,615 -2,265 -3,781 414 Balances including allocations of SDR’s: Net liquidity................................................................................... -3,851 -22,002 -13,974 -3,466 -2,369 -3,043 -5,313 -3,249 -9,839 -29,765 -10,297 -5,882 -2,506 -741 -5,585 -1,465 Balances excluding allocations of SDR’s: Net liquidity................................................................................... -4,718 -22,719 -14,684 -3,466 -3,079 -3,043 -5,313 -3,249 Official reserve transactions....................................................... -10,706 -30,482 -11,007 -5,882 -3,216 -741 -5,585 -1,465 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 1971 1972 1973 1970 1971 1972 1973 1970 1971 1972 1973 Month : Jan.... 3,406 3,601 4,074 4,977 3,222 599 4,435 5,281 184 2 -361 -304 Feb... 3,546 3,695 3,824 5,065 3,279 564 4,473 5,541 267 130 -649 -476 Mar... 3,375 3,790 3,869 5,380 3,219 628 4,515 5,432 156 160 -646 -53 Apr... 3,410 3,631 3,817 3,262 774 4,413 148 -143 -596 May.. 3,661 3,746 3,885 3,367 908 4,482 324 -161 -597 June.. 3,727 3,672 3,971 3,265 037 4,468 462 -365 -497 July... 3,704 3,573 4,052 3,254 832 4,565 450 -259 -513 Aug... 3,591 3,667 4,200 3,346 913 4,726 245 -247 -527 Sept... 3,553 4,487 4,177 3,423 179 4,606 130 308 -428 Oct.. . 3,688 2,669 4,318 3,498 469 4,736 190 -800 -418 Nov... 3,499 3,196 4,473 3,428 456 5,136 71 -260 -664 Dec... 3,569 3,881 4,561 3,401 169 5,002 168 -288 -441 Quarter: 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 74 U.S. GOLD TRANSACTIONS □ MAY 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 -130 -32 -180 51 -81 -50 -2 -30 -50 -25 -50 -175 329 618 150 80 -879 -835 200 1 -6 -35 -49 16 -47 H -29 -13 Total.............................. -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada .................................... 200 150 50 Latin American republics: Argentina ............................ -30 -39 -1 -25 -25 -28 Brazil...................................... 72 54 25 -3 -1 • -23 Colombia.............................. 10 29 7 * -1 Venezuela.............................. -25 Other.................................... -11 -9 -13 -6 ii -40 -29 -80 -5 Total.............................. 32 56 17 -41 9 -65 -54 -131 -5 Asia: Iraq........................................ -10 -4 -21 -42 Japan.................................... -56 -il9 Lebanon................................ -11 -11 -1 -95 -35 Malaysia.............................. -34 -10 Philippines............................ 25 20 * -1 9 40 -4 -2 Saudi Arabia........................ -50 Singapore.............................. -81 11 -30 ...................................... -1O3ther -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^............ 6-225 177 22 -3 10 — 156 -22 -544 -544 Grand total.................. -392 -36 -1,547 -431 -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

MAY 1973 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 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 u e 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 n e t F i r o 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 e u C c r i r r e o 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 Apr.... 12 285 9 662 9 588 429 391 1 803 1961... 18,753 16,947 16,889 116 1,690 May... 9131345 910*490 910^410 469 9428 91 ^958 1962... 17,220 16,057 15,978 99 1,064 June... 13,339 10,490 10,410 457 434 1,958 1963... 16,843 15,596 15,513 212 1,035 July... 13,090 10,490 10,410 203 439 1,958 1964... 16,672 15,471 15,388 432 769 Aug---- 13,124 10,488 10,410 234 444 1,958 Sept.... 13,217 10,487 10,410 323 449 1,958 1965... 15,450 613,806 613,733 781 6 863 Oct.... 13,313 10,487 10,410 414 454 1,958 1966... 14,882 13,235 13,159 1,321 326 Nov.... 13,307 10,487 10,410 403 459 1,958 1967... 14,830 12,065 11,982 2,345 420 Dec.... 13,151 10,487 10,410 241 465 1,958 1968... 15,710 10,892 10,367 3,528 1,290 1969... 7 16,964 11,859 10,367 72,781 2,324 1973 Jan.... 13,054 10,487 10,410 140 469 1,958 1970... 14,487 11,072 10,732 629 1,935 851 Feb.... 12,926 10,487 10,410 8 473 1,958 1971... 812,167 10,206 10,132 8 276 585 1,100 Mar. .. 12,931 10,487 10,410 8 478 1,958 19729.. 13,151 10,487 10,410 241 465 1,958 Apr.... 12,904 10,487 10,410 8 460 1,949 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-l2 and A-l3. Note.—See Table 24 for gold held under earmark at F.R. Banks for 6 Reserve position includes, and gold stock excludes, $259 million gold foreign and international accounts. Gold under earmark is not included subscription to the IMF in June 1965 for a U.S. quota increase which in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by reserve other countries Period with IMF p in o s I i M tio F n P s t u a d io y b o n m s o ll c s f a e r r i i n s p n t ­ s by s g N I a o M l e l e d t s F 1 T t c f i r o c u o a i r r n e n e r s s i s e g a n 2 i n n c ­ ­ I i d M n o c F l o la m n rs e et 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 l i h n l e a a ­ r s s es c T ha o n ta g l e Amount P q e U r u o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4.834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 6 712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6,115 91 585 1972. ' 7*54i‘ 200 -47 694 6,810 94 465 1972—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 Mar.. -5 -5 6,796 93 478 Apr.. 18 18 6,814 94 460 For notes sec opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 End IMF Nonmar­ Liquid non­ pe o ri f od Total a a c t f r r g t r i a i o s o o n i l m n d n s g ­ s 1 Total t p l S i i t o e a h e s b r 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 v k T b o e e U o r n r t e n t a . c i S a b d b o s . l s l n . e e ­ m r l O e i 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 o l b b i e a a t r c i r b o n e o c i k s a i m l a i d s ­ l ­ 6 Total t p l S i i t o e a h e s b r r o t m i e r r l e t i d ­ ­ ­ M T U a a r b e r .S l k a e s . e . t ­ a o m g n r t i i g a o d o n a r n n t y r n i a e , 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 . n a o n te d s4 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 1 0,9 0 9 2 4 7 8 80 00 0 1 1 1 1 , , 0 0 8 7 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 3 0 0 5 5 5 43 0 1 1 , , 5 5 4 2 1 5 1961 1 [ 2 22 2 ,9 85 3 3 6 8 8 0 0 0 0 1 11 1 . . 8 8 3 3 0 0 1 1 0 0 . . 9 9 4 4 0 0 8 8 9 9 0 0 5 5, , 4 4 8 0 4 4 2 2 , , 8 8 7 7 1 3 2 2 , , 3 35 5 5 7 5 5 1 1 6 6 1 1 . . 9 94 4 8 9 1962 9............ 1 1 2 2 4 4 , , 2 2 6 6 8 8 8 8 0 0 0 0 1 1 2 2 , , 9 9 4 1 8 4 1 11 1 , , 9 9 6 9 3 7 7 75 5 1 1 2 2 0 0 0 0 5 5 . . 3 3 4 4 6 6 3 3 . . 0 0 1 1 3 3 2 2 . . 5 5 6 65 5 4 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1963 9............. J 1 2 2 6 6 , , 4 3 3 9 3 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 2 59 5 1 1 2 2 . . 4 4 6 6 7 7 1 1, , 1 2 8 1 3 7 7 7 0 0 3 3 6 6 3 3 9 9 5 5 . . 8 8 1 1 7 7 3 3 , , 3 3 9 8 7 7 3 3 . . 0 0 4 4 6 6 3 3 4 5 1 1 1 1, , 9 9 6 6 5 0 1964 9............. (29,313 800 15,790 13,224 1.125 1.079 204 158 7,271 3,730 3,354 376 1.722 129;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............. 1 /3 3 1 1 , ,0 14 2 5 0 1 1 , , 0 0 1 1 1 1 1 1 4 4 , , 8 8 4 9 1 6 1 12 2, ,5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4. . 2 2 7 7 1 2 3 3 . . 7 74 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 9............. J \3 35 5 , s , , 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............. / 1 3 3 8 8 , , 6 4 8 73 7 1 1. .0 03 3 0 0 1 17 7 , , 3 40 4 7 0 1 1 1 1 . . 3 3 1 1 8 8 4 52 6 9 2 7 7 0 0 1 1 2 2 . . 5 5 1 1 8 8 2 2 . . 3 3 4 4 1 1 1 1 4 4 . .4 47 7 2 2 4 5 , , 9 0 0 5 9 3 4 4 . . 4 4 4 4 4 4 4 6 6 0 5 9 7 72 2 5 2 1969 9............. 10 1 /4 4 5 5 ,, ; 7 9 5 1 5 4 1 1 . . 0 0 1 1 9 9 io 1 i5 5 , , 9 9 7 9 5 8 1 1 1 1 , , 0 0 5 7 4 7 3 3 4 4 6 6 10 5 5 5 5 5 5 0 2 2 , , 5 5 1 1 5 5 1 1 . . 5 5 0 0 5 5 2 2 3 3 , , 6 6 3 4 8 5 4 4, , 5 4 8 6 9 4 4 3, , 9 0 3 6 9 4 5 5 2 2 5 5 6 6 5 6 9 3 1970—Dec. 9. 1 1 4 4 6 7, , 0 9 0 6 9 0 5 5 6 6 6 6 2 2 3 3, .7 77 8 5 6 1 1 9 9 . . 3 3 3 3 3 3 3 2 0 95 6 4 4 2 29 9 3 3 . . 0 0 2 2 3 3 6 6 9 95 5 1 1 7 7, , 1 1 6 3 9 7 4 4 , , 6 6 7 0 6 4 4 4 , , 0 0 2 39 9 6 5 4 65 7 8 84 4 6 4 1971—Dec.11 J \6 6 7 7 , , 6 8 8 1 1 0 5 5 4 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 3 9 9 , , 6 01 7 8 9 1 1 . . 9 9 5 5 5 5 6 6. , 0 0 9 6 3 0 3 3, , 4 37 4 1 1 1 1 4 4 4 4 1 1 0 0 , , 2 9 6 5 2 0 4 4 , ,1 1 4 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—Mar.. . 71. 013 53,806 40,980 2,644 6.094 3.723 365 11,464 4,194 3,818 376 1,549 Apr— 12. 215 54,093 38,723 2,668 8.594 3.723 385 12,433 4,242 3,853 389 1,447 May. . 12. 115 53,579 37,850 3,018 8.594 3.723 394 12,822 4,285 3,890 395 1,429 June.. 74; 001 54,604 38,603 3,292 8.594 3.723 392 13,444 4,475 4,103 372 1,478 July... 11. 465 59,416 39,777 3,516 12.094 3.647 382 12,128 4,493 4,123 370 1,428 Aug... 19;454 60,601 40,611 3,881 12.094 3.647 368 12,911 4,419 4,041 378 1,523 Sept.. . 19,,731 60,070 39,628 4,117 12.095 3,804 426 13,585 4,630 4,241 389 1,446 Oct__ 8i: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;,902 61,503 39,976 5,236 12,108 3,639 544 14,821 4,951 4,526 425 1,627 1973—Jan.... 82,086 60,779 38,517 5,798 12,110 3,780 574 14,823 4,891 4,466 425 1,593 Feb.*. 87;,873 68,455 45,395 6,377 12,110 3,627 946 12,791 5,006 4,634 372 1,621 Mar.*. 1290,855 1271,289 46,882 6,917 1212,128 3,617 1 ,745 12,967 4,966 4,590 376 1,633 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. 12 Includes $15 million increase in dollar value of foreign currency 6 Includes short-term liabilities payable in dollars to commercial banks liabilities revalued to reflect market exchange rates. abroad and short-term liabilities payable in foreign currencies to commer­ cial banks abroad and to “other foreigners.” Note.—Based on Treasury Dept, data and on data reported to the 7 Includes marketable U.S. Treasury bonds and notes held by commer­ Treasury Dept, by banks and brokers in the United States. Data correspond cial banks abroad. generally to statistics following in this section, except for the exclusion 8 Principally the International Bank for Reconstruction and Develop­ of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign ment and the Inter-American and Asian Development Banks. From Dec. official nonreserve agencies, the inclusion of investments by foreign 1957 through Jan. 1972 includes difference between cost value and face official reserve agencies in debt securities of U.S. Federally-sponsored value of securities in IMF gold investment account. agencies and U.S. corporations, and minor rounding differences. Table 9 Data on the two lines shown for this date differ because of changes excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters in reporting coverage. Figures on first line are comparable with those of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 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 * Canada A re m p L u a e b t r i 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 \23,775 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—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.. 59,416 36,370 4,446 1,393 14,727 572 1,908 Aug... 60,601 36,612 4,463 1.415 15,352 652 2,107 Sept... 60,070 35,985 4,469 1,363 15,291 685 2,277 Oct.. . 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.. . 61,503 34,197 4,279 1,721 17,566 777 2,963 1973—Jan.. . 60,779 34,146 4,201 1,718 17,027 673 3,014 Feb.2>. 68,455 40,765 4.290 1,893 17,898 809 2,800 Mar.?7 6 71,289 6 45,193 4,221 1,750 16,557 823 2,745 1 Includes Bank for International Settlements and European Fund. 6 Includes $15 million increase in dollar value of foreign currency 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ liabilities revalued to reflect market exchange rates. 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. to official institutions of foreign countries have been increased in value by $ 110 million to reflect market exchange rates as of Dec. 31, 1971. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners T a o n n d o r n e m gi o o n n e a t l a o ry rg i a n n t i e z r a n t a io ti n o s n 6 al Payable in dollars IMF Deposits End of period Total 1 Total Deposits b T il r U l 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 re o a c n y r i u e c n a r i i b g ­ e l n s e in m g v o e e n l 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 b h m r . e 4 t 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 8............ /55,404 55,018 10,399 5,209 33,025 6,385 386 400 1,372 73 192 210 896 155,430 55,038 6,460 4,217 33,025 11,336 392 400 1,368 73 192 210 892 1972—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. . 55,830 55,330 6,570 4,653 31,498 12,609 499 1,268 84 186 198 800 June.. 57,467 56,947 7,217 4,830 31,871 13,029 519 1,316 85 238 212 782 July.., 57,294 56,813 7,320 4,746 32,881 11,866 481 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 63 210 204 804 Nov.., 60,654 60,112 7,012 5,379 32,774 14,946 543 1,512 95 242 380 794 Dec... 60,737 60,240 8,290 5,630 31,850 14,470 496 1,413 86 202 326 800 1973—Jan... 59,186 58,661 7,453 5,547 30,133 15,528 526 0 1,380 118 172 279 810 Feb.*. 64,239 63,726 7,794 5,585 36,551 13,796 513 0 1,419 133 145 303 838 Mar.* 65,860 65,312 7,639 5,613 37,971 14,089 548 0 1,421 114 135 279 893 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 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 i u e n c i r i g ­ e n s 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 c P u f a r o r y r e i a e n n b i c g l i e n es Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab.4 cates 3 cates 3 1969............... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 19707............ J 1 4 4 0 0 , ,5 4 4 9 1 9 1 15 5 , , 7 71 2 6 6 5 5 , , 7 8 6 0 5 2 1 1 3 3 . . 5 5 1 1 1 1 5 5 , , 1 1 3 3 8 3 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 52 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 19718........... \ ( 5 5 3 3, , 6 6 3 6 2 2 1 6 0 , , 3 32 8 6 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 , ,0 5 3 0 9 4 3 3 2 2 . . 3 3 1 1 1 1 3 3 , , 0 1 8 7 6 6 1972— Mar.., 56,262 5,903 4,242 34,654 10,947 516 40,980 1,128 2,148 34,548 2,990 Apr... 55,009 6,373 4,304 32,147 11,691 494 38,723 1,246 2,270 32,047 2,993 May., 54.562 6,486 4,468 31,300 11,810 499 37,850 1,224 2,379 31,209 2,871 June.. 56,150 7,132 4,592 31,659 12,248 519 38,603 1,536 2,469 31,573 2,858 July.. 56,028 7,219 4,485 32,738 11,106 481 39,777 1,521 2,377 32,655 3,054 Aug.. 57.563 6,566 4,600 33,573 12,368 455 40,611 1,308 2,412 33,499 3,220 Sept.. 57,454 6,851 4,716 32,569 12,840 478 39,628 1,239 2,454 32,497 3,268 Oct.. . 58,858 7,012 4,935 32,867 13,505 538 40,261 1,335 2,564 32,794 3,398 Nov.. 59,143 6,917 5,137 32,394 14,152 543 40,040 1,271 2,638 32,315 3,645 Dec.. , 59,323 8,204 5,428 31,523 13,671 496 39,976 1,589 2,858 31,453 3,905 1973—Jan... 57,806 7,335 5,375 29,854 14,717 526 38,517 1,405 2,857 29,779 4,304 Feb.*. 62,820 7,661 5,440 36,248 12,958 513 45,395 1,756 2,815 36,144 4,508 Mar.* 64,439 7,525 5,478 37,692 13,196 548 46,882 1,543 2,826 37,620 4,721 To banks10 To other foreigners To banks Payable in dollars and other foreigners: End of period Total Payable in Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h m r e t r ­ f r o e c r n u e c r i i g ­ e n s Demand Time2 certifi­ liab.4 Demand Time2 certifi­ liab.4 cates cates 1969............... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 19707 .......... J21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 19718........... (13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 \14,644 10,722 3,400 320 8 6,995 3,694 1,660 1,666 96 271 1972—Mar.. 15,283 11,115 3,093 359 4 7,658 3,818 1,682 1,735 102 299 Apr.. , 16,286 12,106 3,372 352 4 8,379 3,852 1,756 1,682 96 318 May. . 16,712 12,489 3,569 307 3 8,611 3,890 1,693 1,781 88 328 June. 17,547 13,091 3,797 309 5 8,981 4,104 1,800 1,815 81 409 July.. 16,251 11,816 3,877 285 5 7,649 4,123 1,821 1,822 77 402 Aug.. 16,951 12,626 3,555 336 6 8,729 4,040 1,702 1,852 67 419 Sept.. 17,826 13,277 3,837 353 5 9,083 4,241 1,776 1,909 68 489 Oct.. . 18,597 13,813 3,802 439 3 9,569 4,417 1,875 1,933 70 538 Nov.. 19,103 14,409 3,940 486 5 9,979 4,322 1,706 2,014 75 528 Dec.. , 19,347 14,496 4,661 545 5 9,284 4,525 1,954 2,025 65 481 1973—Jan... 19,290 14,468 4,157 448 5 9,858 4,467 1,773 2,070 69 555 Feb.* 17,425 12,450 4,086 500 8 7,855 4,634 1,818 2,124 96 595 Mar.* 17,557 12,590 4,176 518 9 7,887 4,590 1,805 2,134 63 588 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 ^Foreign 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

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 9. SHORT-TERM 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. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: Austria........................................................... 254 254 261 272 310 279 245 272 268 267 281 Belgium-Luxembourg................................. 701 962 1,159 1,188 1,175 1,159 1,070 1,092 974 1,166 1,285 Denmark....................................................... 168 215 216 209 194 217 254 284 321 364 400 Finland.......................................................... 160 148 176 165 163 161 157 163 152 158 142 France............................................................ 3,150 3,514 4,324 4,317 4,422 4,501 4,630 4,441 4,433 4,482 5,000 Germany....................................................... 6,596 6,483 6,601 6,459 5,819 5,809 5,514 5,346 5,034 10,494 12,963 Greece............................................................ 170 179 168 165 177 195 190 238 210 224 223 1,888 1,375 1,424 1,615 1,429 1,346 1,354 1,338 1,085 1,041 968 Netherlands................................................... 270 847 1,488 1,514 1,490 1,460 1,442 1,468 1,356 1,762 2,532 Norway.......................................................... 685 654 769 892 873 895 960 978 973 990 1,018 303 269 290 334 356 379 413 416 439 498 518 Spain.............................................................. 203 231 222 192 246 230 223 256 231 222 256 Sweden........................................................... 792 1,044 1,036 1,033 1,068 1,059 1,081 1,184 1,189 1,403 1,483 Switzerland................................................... 3,249 2,626 3,626 3,493 3,538 3,073 2,838 2,857 2,924 2,845 2,906 Turkey........................................................... 68 44 55 59 72 71 96 97 109 94 105 United Kingdom........................................ 7,379 7,914 4,945 5,893 5,692 5,683 5,430 5,011 5,510 4,542 4,657 Yugoslavia.................................................... 34 90 87 102 65 56 98 117 82 77 58 Other Western Europe i............................ 1,391 1,367 1,379 1,391 1,446 1,428 1,479 1,483 1,464 1,502 1,584 U.S.S.R.......................................................... 14 10 18 10 14 16 10 11 14 21 14 Other Eastern Europe................................ 53 68 58 57 71 63 58 81 71 65 71 Total...................................................... 27,530 28,293 28,302 29,360 28,618 28,080 27,541 27,134 26,839 32,216 36,461 Canada............................................................... 3,441 3,966 3,727 3,660 3,730 3,969 3,799 3,484 3,889 3,325 3,290 Latin America: Argentina...................................................... 441 459 457 500 523 532 547 631 631 689 687 Brazil............................................................. 342 628 620 550 591 601 564 605 643 658 671 Chile............................................................... 191 136 136 136 134 135 135 137 132 136 143 Colombia....................................................... 188 190 196 212 199 192 185 210 210 218 184 Cuba............................................................... 6 7 6 6 6 6 6 6 7 7 6 715 733 788 695 690 671 659 831 783 800 788 Panama......................................................... 154 154 165 154 156 151 150 167 193 200 171 Peru................................................................ 164 179 178 178 164 180 183 225 176 167 172 Uruguay......................................................... 108 117 121 136 137 125 133 140 140 138 132 Venezuela...................................................... 963 919 831 865 855 924 926 1,077 995 1,050 949 Other Latin American republics.............. 655 669 671 701 662 747 751 860 839 827 804 Bahamas 2..................................................... 656 486 384 416 461 576 576 539 290 260 198 Netherlands Antilles and Surinam.......... 87 94 88 83 88 82 89 86 81 84 83 Other Latin America.................................. 37 40 47 45 54 55 57 44 235 239 216 Total....................................................... 4,708 4,810 4,688 4,675 4,721 4,979 4,961 5,558 5,353 5,471 5,203 Asia: China, People’s Rep. of (China Mainland) 39 39 39 39 39 39 39 39 39 37 48 China, Republic of (Taiwan).................... 258 383 426 502 541 590 639 675 737 783 816 Hong Kong................................................... 312 311 341 325 315 313 310 318 336 319 337 India............................................................... 89 105 122 105 91 103 107 98 115 134 114 Indonesia...................................................... 63 113 98 117 115 114 107 108 101 96 89 Israel............................................................... 150 140 128 119 134 127 141 177 139 151 137 Japan............................................................. 14,295 14,096 13,963 14,156 14,412 15,485 16,152 15,843 14,570 14,733 12,344 Korea............................................................. 196 198 206 235 208 218 201 192 238 210 227 Philippines.................................................... 306 346 345 364 379 382 394 438 446 452 518 Thailand......................................................... 126 177 120 141 145 143 128 171 211 187 172 Other.............................................................. 595 706 733 802 797 1,016 965 1,071 951 897 862 Total....................................................... 16,429 16,613 16,521 16,904 17,175 18,529 19,182 19,131 17,882 17,998 15,664 Africa: Egypt.............................................................. 24 19 17 19 23 23 24 24 21 28 17 Morocco........................................................ 9 11 11 9 9 10 11 12 9 8 13 South Africa................................................. 78 76 92 65 71 57 83 115 111 104 125 Zaire............................................................... 12 18 27 15 18 14 17 21 18 23 22 Other.............................................................. 474 608 620 622 649 595 678 768 573 728 739 Total....................................................... 597 731 768 729 770 700 814 939 733 891 917 Other countries: Australia........................................................ 916 1,692 1,977 2,187 2,372 2,553 2,801 3,027 3,046 2,861 2,849 All other........................................................ 42 45 45 47 69 47 46 51 65 57 54 Total....................................................... 957 1,737 2,022 2,234 2,441 2,600 2,846 3,077 3,111 2,918 2,903 Total foreign countries.................................. 53,662 56,150 56,028 57,563 57,454 58,858 59,143 59,323 57,806 62,820 64,439 International and regional: International3............................................... 1,327 819 793 831 746 794 1,030 951 930 957 974 Latin American regional............................ 298 347 300 335 329 320 316 307 301 318 320 Other regional4............................................ 142 150 174 156 158 167 165 156 149 144 128 Total...................................................... 1,767 1,316 1,266 1,322 1,233 1,281 1,512 1,413 1,380 1,419 1,421 Grand total........................................... 55,430 57,467 57,294 58,884 58,687 60,138 60,654 60,737 59,186 64,239 65,860 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. □ MAY 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 54 36 20 16 39 Iceland................................................... 10 10 11 9 9 5 2 3 3 2 Ireland, Rep. of................................... 41 29 16 15 17 54 60 46 60 55 22 28 23 25 54 Other Latin American republics: 38 28 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 79 72 57 62 121 Sri Lanka (Ceylon)....................... 4 4 4 6 5 75 80 78 83 76 7 3 4 6 4 Guatemala............................................ 100 97 117 123 132 179 161 159 185 135 Haiti....................................................... 16 19 18 23 27 Honduras.............................................. 34 44 42 50 58 Other Africa: Jamaica................................................. 19 19 19 32 41 17 13 23 31 32 59 47 50 66 61 Ethiopia (incl. Eritrea)................. 19 12 11 29 57 Paraguay............................................... 16 15 17 17 22 8 6 8 11 10 10 14 10 15 20 38 13 9 14 23 22 21 23 25 30 Other Latin America: 195 91 274 296 393 British West Indies.............................. 33 38 32 23 36 17 25 46 56 (7) Southern Rhodesia........................ 1 2 2 2 2 Other Asia: 1 1 1 5 3 Afghanistan.......................................... 26 15 19 17 25 9 10 6 6 11 Bahrain.................................................. 32 35 21 18 (7) 7 6 9 7 10 Burma.................................................... 4 3 10 5 2 8 5 3 10 7 2 2 5 2 3 10 14 13 7 (7) 42 67 59 88 93 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—Mar..................... 1,085 629 456 127 252 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 87 167 68 35 135 * 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...................... 999 559 440 94 259 87 165 63 32 136 1 33 10 1973—Jan...................... 1,025 597 428 74 257 96 165 61 30 127 1 31 13 Feb.*.................. 1,254 593 661 302 258 100 164 59 233 119 1 71 13 Mar.*................. 1,374 679 695 328 263 103 164 66 233 120 1 95 16 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1972 1973 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden................................................. 16 16 16 19 19 17 15 35 85 85 110 135 135 53 52 52 52 49 45 45 45 45 45 45 44 43 United Kingdom................................ 268 280 288 264 265 280 293 308 326 327 327 276 278 Other Western Europe.................... 79 79 79 77 79 79 79 79 79 79 79 79 79 5 5 5 5 5 5 5 5 5 5 5 5 5 426 438 445 424 422 432 443 478 545 547 572 544 546 Canada..................................................... 178 179 166 313 313 372 432 479 559 558 558 559 561 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.................................................... 2,391 2,415 2,777 2,901 3,125 3,310 3,481 3,756 4,003 4,380 4,867 5,421 5,961 Other Asia.......................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................ 2,401 2,425 2,787 2,912 3,136 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 8 8 8 8 8 127 133 133 133 133 183 183 183 * * * * * * • * * 25 25 25 25 3,020 3,057 3,413 3,664 3,886 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 International and regional: International....................................... 126 136 136 136 136 176 186 186 186 186 186 176 186 Latin American regional................. 32 33 25 26 27 27 27 27 28 28 28 26 26 158 168 161 161 162 203 213 213 214 214 214 202 212 3,177 3,226 3,574 3,825 4,048 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 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 el m ­ a C d a a n ­ 1 ( R Ta e i p w . a o n f ) m G a e n r y ­ Italy 2Korea 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 43,181 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—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 Mar. 615,870 14,464 20 2.840 10 11.471 22 100 61,407 153 1,254 Apr. 616,015 14,459 20 2.840 5 11.471 22 100 61,556 172 1,384 1 Includes bonds issued in 1964 to the Government of Canada in connec­ June 1968 through Nov. 1972. The dollar value of these notes was increased tion with transactions under the Columbia River treaty. Amounts out­ by $10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971. standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through 4 Includes an increase in dollar value of $84 million resulting from Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million: and revaluation of the German mark in Oct. 1969. Oct. 1970 through Oct. 1971, $24 million. 5 Includes $106 million increase in dollar value of foreign currency 2 Notes issued to the Government of Italy in connection with mili­ obligations revalued to reflect market exchange rates as of Dec. 31, 1971. tary purchases in the United States. 6 Includes $15 million increase in Mar. and $145 million increase in 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 Apr. in dollar value of foreign currency obligations revalued to reflect million equivalent were held by a group of German commercial banks from market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: 11 15 16 33 8 15 10 8 7 13 9 Belgium-Luxembourg................................ 57 73 73 66 70 87 84 120 67 124 100 Denmark....................................................... 49 52 50 63 60 52 57 59 58 59 60 Finland........................................................... 135 126 124 128 120 119 123 118 127 122 131 263 316 306 349 317 274 274 331 275 312 424 Germany....................................................... 235 315 286 229 268 287 296 321 267 412 370 Greece............................................................ 30 24 25 27 28 27 27 29 34 23 29 Italy................................................................ 160 200 194 190 173 177 170 255 221 271 269 Netherlands................................................... 105 117 97 102 116 104 101 108 93 152 118 Norway.......................................................... 67 64 71 56 52 62 62 69 62 63 70 Portugal......................................................... 12 21 25 21 27 22 21 19 21 26 20 70 141 156 160 194 229 215 207 210 236 282 Sweden........................................................... 118 95 114 120 131 128 123 156 176 249 235 Switzerland................................................... 145 148 131 137 180 186 150 125 187 206 152 Turkey........................................................... 3 3 3 4 7 4 4 6 5 6 5 559 550 736 666 643 657 729 855 673 1,001 847 19 22 23 21 22 18 16 22 17 20 18 Other Western Europe............................... 12 24 23 25 24 23 19 20 23 26 22 U.S.S.R.......................................................... 28 57 62 64 55 30 32 41 44 55 54 Other Eastern Europe................................ 37 43 44 40 38 40 38 49 47 53 52 Total....................................................... 2,114 2,406 2,558 2,503 2,531 2,543 2,553 2,919 2,613 3,432 3,268 1,627 1,855 2,299 2,484 2,026 1,681 1,722 1,926 1,939 2,374 2,461 Latin America: Argentina....................................................... 305 325 323 339 352 363 357 379 389 417 406 Brazil.............................................................. 435 551 568 600 639 659 633 652 641 727 740 Chile............................................................... 139 78 77 71 79 58 53 52 54 49 51 Colombia....................................................... 380 404 396 384 378 384 396 418 407 412 380 13 13 13 13 13 13 15 13 12 13 13 934 1,151 1,180 1,163 1,123 1,127 1,168 1,202 1,202 1,213 1,320 Panama.......................................................... 125 130 132 137 150 145 179 246 219 220 212 Peru................................................................ 176 160 157 158 137 138 147 145 129 136 132 Uruguay......................................................... 41 35 38 40 43 36 38 40 40 43 40 Venezuela...................................................... 268 314 333 343 335 361 386 383 388 385 404 Other Latin American republics.............. 374 366 357 355 345 353 368 388 393 378 367 Bahamas 1..................................................... 262 319 389 425 426 369 401 474 412 515 461 Netherlands Antilles and Surinam.......... 18 16 16 16 15 15 13 14 15 15 20 Other Latin America.................................. 26 25 22 29 28 32 33 36 57 68 105 Total....................................................... 3,494 3,885 3,999 4,073 4,063 4,053 4,189 4,439 4,359 4,590 4,649 Asia: China, People’s Rep. of (China Mainland) 1 2 2 2 2 1 1 1 2 2 2 China, Republic of (Taiwah).................... 109 182 178 173 180 187 201 194 205 211 231 Hong Kong................................................... 70 111 100 85 85 76 76 93 84 103 111 India............................................................... 21 16 14 17 18 15 17 14 15 15 16 Indonesia....................................................... 41 45 44 60 66 74 74 87 87 103 127 Israel............................................................... 129 78 101 87 78 87 105 105 126 100 141 Japan.............................................................. 4,280 3,570 3,527 3,473 3,461 3,727 4,011 4,162 4,081 5,277 5,568 Korea.............................................................. 348 346 344 342 321 302 317 296 271 288 301 Philippines..................................................... 138 138 143 144 144 151 160 149 148 150 140 Thailand......................................................... 172 183 174 187 187 177 183 191 184 195 205 Other.............................................................. 252 221 245 230 229 244 262 301 288 335 272 Total....................................................... 5,560 4,891 4,871 4,800 4,773 5,042 5,408 5,594 5,490 6,780 7,115 Africa: Egypt.............................................................. 10 16 14 12 15 17 16 21 22 20 20 Morocco........................................................ 4 4 4 4 5 5 4 4 6 5 7 South Africa................................................. 158 160 149 142 139 134 145 143 150 155 155 Zaire............................................................... 21 14 12 12 12 14 10 13 15 13 11 99 124 121 114 124 113 116 127 116 113 133 Total....................................................... 292 318 300 283 294 283 290 308 309 305 325 Other countries: Australia........................................................ 158 176 210 184 205 229 271 291 272 256 244 All other........................................................ 28 34 38 41 44 36 36 40 50 44 47 Total....................................................... 186 211 248 225 249 265 308 330 322 300 291 Total foreign countries................................... 13,273 13,567 14,275 14,367 13,936 13,867 14,469 15,516 15,032 17,782 18,109 International and regional............................. 3 4 3 3 4 6 6 3 3 3 1 Grand total.......................................... 13,277 13,570 14,278 | 14,370 13,940 13,873 14,474 15,519 15,035 17,785 18,111 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

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c o t i s u a a ­ l ns t B o a — nks* 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 n a f c e d o c e e p c e r r s t ­ s t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c F a n o u c o n o v a r r d i n m t e t , i c i e f s l g 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........... f 1 1 1 3 3 , , 1 2 7 7 0 7 1 1 2 2 , , 3 3 8 2 1 8 4 3 , , 5 9 0 6 3 6 2 2 2 23 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—Mar.. 14,052 13.052 4,175 167 2,141 1,867 2.476 4,410 1,991 1,000 579 283 138 Apr.. , 13,788 13,003 4,451 163 2,354 1,935 2,469 4,252 1,830 785 498 177 111 May. . 13,465 12,630 4,602 169 2,518 1,915 2,541 3,838 1,650 835 530 187 118 June., 13,570 12,737 4,760 162 2,575 2,022 2,650 3,483 1,844 833 486 222 125 July. . 14,278 13,376 5,054 162 2,779 2,113 2,705 3,227 2,390 902 516 278 108 Aug.. 14,370 13,424 4,988 151 2,710 2,127 2,805 3,082 2,549 946 482 338 126 Sept.. 13,940 13.052 4,991 143 2,572 2,276 2,882 2,967 2,212 888 431 330 127 Oct... 13,873 13,098 5,161 146 2,666 2,348 2,987 2,961 1,989 775 408 209 158 Nov.. 14,474 13,705 5,354 160 2,700 2,495 3,130 3,139 2,082 769 412 219 138 Dec.. , 15,519 14,674 5,725 166 2,974 2,585 3,269 3,204 2,476 845 441 223 181 1973—Jan... 15,035 14,211 5,430 143 2,813 2,475 3,234 3,103 2,443 824 443 253 127 Feb.*. 17,785 16,717 6,458 166 3,675 2,617 3,515 3,321 3,423 1,067 595 312 160 Mar.* 18,111 17,160 6,537 141 3,696 2,700 3,697 3,463 3,463 951 524 262 165 1 Excludes central banks, which are included with “Official institutions.” branches, which were previously reported as “Loans”, are included in 2 Data on second line differ from those on first line because (a) those “Other short-term claims”; and (b) a number of reporting banks are included claims of U.S. banks on their foreign branches and those claims of U.S. in the series for the first time. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu­ 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—Mar, , , , 3,842 3,531 644 329 2,559 284 26 131 606 233 1,498 278 651 444 3,944 3,622 654 335 2,633 295 27 143 626 230 1,542 290 673 440 May.... 4,043 3,728 674 335 2,719 285 30 140 638 251 1,584 281 707 443 June.... 4,188 3,871 719 363 2,788 287 31 139 631 284 1,644 309 735 445 July___ 4,307 4,000 757 356 2,887 275 32 146 674 283 1,724 294 754 431 Aug....... 4,384 4,070 771 398 2,900 281 34 141 671 277 1,789 288 773 445 Sept... . 4,531 4,216 796 402 3,019 282 33 128 687 288 1,861 289 802 476 Oct........ 4,629 4,302 796 412 3,094 292 35 136 658 335 1,893 302 828 477 Nov.... 4,668 4,345 819 432 3,093 291 33 137 662 341 1,875 301 863 490 Dec........ 4,916 4,504 833 430 3,241 375 37 139 708 382 1,991 315 881 500 1973—Jan........ 4,956 4,535 833 440 3,262 379 41 144 728 403 1,957 324 897 503 Feb.*... 5,060 4,598 838 462 3,298 411 52 135 763 431 1,977 313 911 531 Mar.*.. 5,210 4,754 884 479 3,391 412 44 121 857 450 1,967 307 968 539 i Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t e l e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 197 0 56 —25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 197 1 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,434 -49 197 2 3,316 57 3,258 3,281 -23 18,922 14,958 3,964 1,898 2,954 -1,057 2,532 2,115 417 1973—Jan.-Mar.*----- 1,631 2 1,633 1,681 -48 5,845 3,272 2,573 474 593 -119 559 408 150 1972—Ma r 230 1 229 245 -16 2,030 1,527 503 188 278 -90 290 269 20 Apr.................... 48 11 38 25 13 1,678 1,420 258 162 150 11 197 181 16 May................... 348 -8 356 350 6 1,346 1,111 235 128 314 -186 245 141 104 June................... 251 1 251 274 -23 1,648 1,407 241 109 339 -230 226 269 -43 July................... 223 1 222 224 -2 1,151 1,152 * 188 100 88 155 163 -8 Aug.................... 413 40 373 365 9 1,495 1,217 278 129 98 30 242 179 63 Sept................... 258 10 247 237 11 1,154 841 314 173 161 12 173 142 32 Oct..................... 356 356 340 17 1,317 1,038 279 153 204 -51 188 115 74 Nov.................... 395 395 377 18 1,910 1,289 621 136 171 -35 192 110 82 Dec.................... 404 404 403 1 2,007 1,368 638 243 465 -222 233 178 55 1973—Ja........................n 562 562 562 1,855 1,118 737 191 323 -132 161 155 7 Feb.*................. 515 -12 527 579 -52 1,776 1,062 713 144 144 -1 190 143 47 Mar.*............... 554 10 544 540 3 2,215 1,092 1,123 139 125 13 207 110 97 1 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....................... 2,140 372 -51 297 639 561 92 1,911 -78 -32 256 — 1 -1 86 1973—Jan.-Mar.* 1,273 93 42 160 435 222 87 1,038 85 -25 152 1 2 21 1972—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........... -36 -6 -44 -14 56 15 -41 -34 4 -25 12 * * 7 Aug............ 252 60 -13 8 68 101 26 249 8 -16 4 * * 6 Sept........... 165 36 -7 15 51 56 11 162 -12 1 11 * * 3 Oct............. 160 65 6 24 83 -89 20 109 8 2 29 * -1 12 489 85 44 55 61 150 52 447 14 25 -8 * -1 12 Dec............ 350 48 -3 42 59 132 19 297 -1 8 42 * * 4 1973—Jan............. 489 32 29 47 142 118 24 392 24 -20 85 * 1 7 Feb.*........ 438 25 4 67 149 82 34 361 36 -10 46 1 * 4 Mar.*. . . . 347 35 8 47 144 21 29 284 26 5 21 * 1 10 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 197 0 956 35 48 37 134 118 91 464 128 28 -12 324 197 1 684 15 35 -1 197 327 39 612 37 -2 -21 39 197 2 1,824 336 77 65 134 320 315 1,246 82 323 148 1973—Jan.-Mar.^ 1,300 62 52 82 297 497 762 1972—Ma r 326 5 3 29 64 15 116 -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............ 289 56 30 14 49 60 210 8 3 29 38 1973—Ja...............n 248 12 -2 29 38 73 149 1 6 31 60 Feb.*......... 276 6 2 30 46 66 155 36 1 110 -26 Mar.p.... 777 45 -3 -7 -2 158 193 4 621 -42 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.................. -984 -310 -673 38 -275 -46 -366 -57 32 June............................. 334 182 1972.................. —640 -90 -550 476 -651 -67 -271 -66 29 Sept.............................. 291 203 349 281 1973—Jan.- Mar.*\. 31 30 1 27 7 -78 43 * 2 1971—Mar.............................. 511 314 June.............................. 419 300 1972—Mar.... -70 18 -88 58 -74 -2 -47 -33 10 Sept.............................. 333 320 Apr... . 28 7 21 65 13 -31 -33 3 5 311 314 May. .. -82 7 -89 75 -138 1 -21 -9 2 June... -273 10 -283 26 -201 -15 -94 * * 325 379 July.... 81 78 2 36 23 3 -62 * 2 312 339 Aug---- 93 -1 94 50 49 -1 -5 * 2 286 336 Sept.... 44 6 38 47 3 10 -24 ♦ 1 365 401 Oct. . .. 23 16 7 53 -73 2 23 * 2 Nov.... 47 11 36 39 -4 8 -8 * * Dec.... -167 9 -176 -16 -158 -29 23 2 1 Note.—Data represent the money credit balances and money debit balances appearing on the books of reporting 1973—Jan....... -126 9 -135 11 -67 -70 -9 * * brokers and dealers in the United States, in accounts of M Fe a b r . . p p . .. . 1 4 1 6 0 - 2 2 3 4 8 8 7 - 1 3 9 4 3 0 4 -16 8 2 2 5 6 * * * 1 f f o o r r e e i i g g n n e e r r s s . with them, and in their accounts carried by Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $12,058 million and $12,330 million, respectively, on Jan. 31, 1973. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange Note.—Components may not add to totals due to rounding. rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 1970—Dec............ 47 j 363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1,403 1971—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 Julyr......... 69,963 4,058 1,514 2,544 63,941 11,622 30,419 1,407 20,492 1,965 Aug............ 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 Nov............ 76,241 4,456 1,824 2,632 69,425 11,350 34,203 1,577 22,295 2,360 Dec............ 80,034 4,735 2,124 2,611 73,031 11,717 36,738 1,665 22,910 2,268 1973—Jan............. 81,200 4,926 2,327 2,600 74,007 11,946 36,797 1,621 23,643 2,267 1970—Dec............ 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—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 Julyr......... 45,034 3,811 1,488 2,324 40,523 7,260 21,666 984 10,613 700 Aug............ 47,175 4,263 1,741 2,523 42,184 7,320 22,717 1,063 11,085 728 Sept............ 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 Nov............ 49,631 4,173 1,803 2,371 44,664 7,439 24,123 1,083 12,019 793 Dec............ 54,058 4,473 2,102 2,371 48,768 8,083 26,907 1,128 12,651 817 1973—Jan............. 54,197 4,592 2,303 2,289 48,829 8,094 26,764 1,063 12,908 777 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—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 r.......... 39,463 1,876 810 1,066 36,741 5,742 20,946 546 9,507 847 Aug............ 40,596 2,117 1,078 1,039 37,538 5,688 21,411 595 9,844 941 Sept............ 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 Nov............ 41,600 1,939 907 1,032 38,643 5,490 22,671 584 9,898 1,018 Dec............ 43,684 2,234 1,138 1,096 40,430 5,659 23,983 609 10,179 1,020 1973—Jan............. 44,347 2,585 1,466 1,118 40,796 5,637 24,333 574 10,252 966 Payable in U.S. dollars.......................... 1970—Dec............ 22,574 6 5Q6 15,655 2 223 9,420 4 012 323 1971—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 4,621 366 July r......... 26,680 1,791 24,494 4,097 15,589 4,808 395 Aug............ 27,185 2,036 24,734 4,013 15,768 4,953 415 Sept.. 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 Nov............ 27,865 1,846 25,579 4,049 16,399 5,132 439 Dec............ 30,381 2,146 27,787 4,326 17,976 5,485 447 1973—Jan............. 30,652 2,468 27,778 4,184 18,069 5,526 405 IN THE BAHAMAS -------Y---------- Total, all currencies................................ 1970—Dec............ 4,815 1,173 455 717 3 583 2 119 1 464 59 1971—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 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 11,516 1,530 118 1,413 9,846 5,682 4,164 139 Sept............ 11,909 1,612 221 1,391 10,145 5,926 4,219 152 Oct............. 12,026 1,739 251 1,489 10,129 5,843 4,286 157 Nov............ 12,330 1,586 221 1,365 10,577 6,209 4,368 167 Dec............ 13,091 1,496 225 1,272 11,419 6,965 4,454 175 1973—Jan............. 113,065 1,387 182 1,206 11,496 6,754 4,742 181 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 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 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 .............1970—Dec. .. .Total, all currencies 61,336 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 .............1971—Dec. 2,934 654 2,280 54,991 10,324 29,733 5,858 9,075 1,996 61,816 3,167 776 2,391 56,632 10,645 30,694 6,208 9,085 2,018 65.033 3,046 635 2,411 59,925 10,363 33,710 6,331 9,521 2,062 63,755 2,978 621 2,356 58,726 10,097 32,379 6,617 9,635 2,051 64.374 2,819 562 2,256 59,648 10,055 33,114 6,649 9,830 1,908 69,622 3,086 646 2,440 64,592 11,069 36,113 7,223 10,187 1,944 69,963 3,212 736 2,476 64,712 11,283 35,860 7,176 10,393 2,039 72,855 3,263 680 2,583 67,392 11,510 37,327 7,841 10,714 2,200 73,413 3,262 727 2,535 67,892 11,123 38,331 8,039 10,400 2,258 74,804 3,256 716 2,539 69,206 11,204 38,477 8,236 11,289 2,342 76,239 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 80,035 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 81,200 3,414 836 2,578 75,273 11,746 42,260 9,236 12,032 2,S13 ............1973—Jan. 36,086 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 .............1970—Dec. .Payable in U.S. dollars 42.033 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 .............1971—Dec. 41,317 2,552 542 2,010 37,584 6,710 20,859 4,726 5,289 1,182 ............1972—Jan. 42,557 2,740 641 2,099 38,605 6,853 21,742 4,783 5,226 1,212 45,603 2,642 507 2,135 41,736 6,945 24,433 4,957 5,402 1,225 43,663 2,589 514 2,075 39,877 6,560 22,854 5,202 5,260 1,197 44,223 2,411 439 1,973 40,754 6,648 23,603 5,170 5,333 1,058 47,834 2,671 523 2,148 44,142 7,277 25,807 5,656 5,401 1,021 47,460 2,754 611 2,143 43,634 7,507 24,766 5,777 5,584 1,072 .......................'July 49,437 2,800 549 2,252 45,464 7,660 25,862 6,252 5,690 1,173 50,085 2,793 605 2,188 46,088 7,401 26,545 6,331 5,811 1,204 51,335 2,789 582 2,207 47,313 7,706 26,776 6,567 6,264 1,233 52,139 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 56.375 3,104 848 2,256 51,811 8,178 30,253 6,913 6,467 1,459 56,405 2,995 693 2,302 52,114 8,400 29,234 7,680 6,800 1,297 ............1973—Jan. 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 34,552 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 .............1971—Dec. 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 36,311 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 1,497 150 1,347 37,075 3,464 21,720 5,565 6,326 892 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 1,481 132 1,349 39,149 2,928 22,769 6,340 7,112 969 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 1,501 107 1,394 41,933 3,277 23,959 7,285 7,412 913 ............1973—Jan. 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 .............1970—Dec. .Payable in U.S. dollars 1,412 23 1,389 23,059 2,164 14,038 3,676 3,181 374 .............1971—Dec. 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 ) 1,294 103 1,190 25,393 2,197 15,000 4,641 3,554 444 .......................'July > 1,271 100 1,171 25,887 2,140 15,217 4,981 3,549 467 i 1,230 86 1,144 25,825 1,926 15,376 4,957 3,567 531 i 1,245 80 1,165 26,759 1,942 15,597 5,216 4,004 473 i 1,270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 \ 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 30,926> 1,335 72 1,264 29,091 2,234 16,205 6,162 4,490 500 ............1973—Jan. IN THE BAHAMAS 542 4,183 488 2,872 823 90 .............1970—Dec. . Total, all currencies 750 7,557 1,649 4,784 1,124 188 I 621 7,139 1,563 4,369 1,207 151 5 855 7,378 1,526 4,674 1,178 142 .........................Feb. S 832 7,868 1,429 5,134 1,305 128 1 959 7,538 1,471 4,926 1,140 125 5 812 8,141 1,454 5,356 1,330 144 5 997 8,943 1,809 5,903 1,231 136 ) 1,043 9,126 1,633 6,169 1,323 160 ........................July 5 1,121 10,238 1,885 6,898 1,455 156 ? 1,137 10,616 1,935 7,,188 1,493 156 5 1,053 10,801 1,928 7,422 1,452 171 9 934 11,230 1,982 7,862 1,386 166 I 1,220 11,703 1,964 8,395 1,344 168 113,0655 1,137 11,761 1,875 8,503 1,383 167 ............1973—Jan. For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 1973 Dec. Jan. Feb. 1967 1971 1972—Cont. Overnight............................ 2.08 1.61 2.30 J S D M u e e n a p c r e t . . . 2 2 2 2 8 9 7 7 , , . , 4 4 3 3 , , , , 2 0 4 1 4 5 1 6 1 9 2 6 J 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 5 5 7 0 8 8 0 Dec. 2 2 1 6 0 7 3 . . . . . . . . . . . . 1 1 1 1 , , , , 4 7 6 8 1 0 0 0 8 5 6 7 C Ot a i m d h n l a e l o . t r . e n . f . l : o . t i . h a . l . l b s . o . i . w l .. i . t i a . i . n e . f . g 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 .. 2.11 3.19 3.50 1972 16.86 12.56 14.11 J S D M u e e n a p c r e t . . . 2 2 2 31 5 7 6 . . . . . . ( . . . 1 . . . . . . / . . . 1 1 . . . . . . 9 . / . . . . . 6 6 . . . . . . 8 9 . . . . . . ) . . . 4 6 7 6 , , , , 2 9 0 1 3 2 0 0 9 2 0 4 J F M A J J M A a u u e p u n a l n a b y r g . r y e . . . . 2 2 3 3 2 2 2 2 6 8 1 0 6 3 9 6 . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 1 , , , , , , , , 4 5 0 3 4 3 4 2 1 3 6 6 7 4 4 7 9 8 5 2 3 4 5 0 Jan 1 . 97 2 3 1 1 3 3 4 1 0 7 . . . . . . . . . . . . . . . 1 1 1 1 1 , , , , , 1 6 4 4 8 2 2 1 1 0 1 5 9 3 0 1 2 4 5 6 7 9 3 8 0 t n t t t t r t t h h h h h h d h d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 2 3 5 . . . . . . . . . 9 2 6 2 5 2 3 9 7 1 3 8 3 8 4 7 2 7 2 6 6 3 3 . . . . . . . . . 2 6 6 1 7 4 4 5 7 8 5 8 3 6 5 4 6 4 2 2 7 5 3 . . . . . . . . . 9 9 8 3 4 5 7 8 5 1 9 3 6 4 9 5 2 4 1969 Sept. 1 6 3 . . . . 1 1 , , 1 5 8 0 7 8 Feb. 1 7 4 . . . . . . 1,3 6 9 9 1 4 1 1 1 2t t h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 5 9 2 . . 3 3 9 3 . .6 3 1 7 J M un ar e . 2 2 5 6 . . . . . . . . . . . . . . . ........ 1 9 3 , , 6 2 2 6 1 9 2 2 0 7. . . . 2 1 , , 0 4 2 9 3 7 2 2 1 8. . . . . . 1,1 7 5 9 7 0 Maturities of more than 1 1.43 1.56 1.63 Sept. 24............... 14,349 Dec. 31............... 12,805 Oct. 1 4 1 . . . . 1 1, , 5 61 4 9 4 Mar. 1 7 4 . . . . . . 1 1 , , 4 4 1 6 9 5 44.22 44.32 47.74 18.. 1,890 21... 1,290 1970 25.. 1,415 28... 1,127 Note.—Includes interest-bearing U.S. dollar J S D M u e e n a p c r e t . . . 2 2 3 3 0 4 0 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 7 1 2 , , , , 6 6 8 1 8 6 7 7 5 3 2 6 Nov. 2 2 1 8 2 9 1 5 . . . . . . . . . . 1 1 1 1 1 , , , , , 3 8 7 3 4 4 3 4 8 6 1 8 5 7 4 Apr. 2 1 1 4 5 1 1 . . . .. . . . . . . . 1 1 1 1 , , , , 0 2 1 1 1 0 9 1 1 3 3 6 d t f a h o m e e r p D o o e w B u s t n i h a a t t h i i s l c a s t h a o m n m a s d $ a u s 5 y d c 0 a h i n r m n e o d d c i t l e t l a o p i b o d o f o n d s r a i r t o l t o s l o r w o a t m i o t n n h o t d g a e r s l e r s d . o f i d r o f u e r a c e e l t i l t g o b b n r o r a b o r n r u r o c a n h w n d e c i i s n h n g e g in 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 incustody E p n er d i o o d f Deposits U se .S cu . r T it r i e e a s s 1 . Ear g m o a ld rked E pe n r d i o o d f Total Deposits i S n t h e v r o e m r s t t ­ ­ Deposits i S n t h e v r o e m r s t t ­ ­ U K d n i o n i m t g ed ­ Canada ments 1 ments 1 1970............... 148 16,226 12,926 1971............... 294 43,195 13,815 1968..................... 1,638 1,219 87 272 60 979 280 1972—Apr.. . 228 46,836 14,315 1Q£Q 2 / \ 1 1, , 4 3 9 1 1 9 1,0 9 6 5 2 2 1 16 1 1 6 1 18 7 3 4 8 76 6 6 6 6 1 3 0 4 5 6 3 9 4 May. . 157 46,453 215,542 1,141 697 150 173 121 372 436 June.. 257 47,176 15,542 J A u u l g y . . . . . . 1 1 9 6 2 0 5 51 1 , , 5 67 2 6 2 1 1 5 5 , , 5 5 3 42 0 l1y07i1l —UT\aC/> O2,. . . \ /l 1 , ,5 6 0 4 4 8 1 1, , 0 0 7 9 5 2 2 1 0 2 3 7 2 23 3 4 4 1 6 2 8 0 5 5 7 7 7 7 4 5 4 8 3 7 Sept... 193 50,997 15,531 Oct— 192 51,821 15,531 1972—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......... 2,084 1,517 194 318 55 753 565 Feb... 455 56,914 15,522 Aug.......... 2,279 1,608 217 392 61 761 709 Mar... 327 359,389 15,519 Sept.......... 2,106 1,533 170 359 45 690 604 Apr... 328 358,255 15,513 Oct........... 2,036 1,475 171 332 57 683 551 Nov.......... 2,085 1,510 178 343 55 657 593 fl,963 1,444 169 307 42 700 485 1 Marketable U.S. Treasury bills, certificates of in­ Dec. 2 r.. \1,996 1,575 51 328 42 724 485 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign 1973—Jan.r___ 2,163 1,681 71 346 65 799 605 currencies. Feb,........ 2,556 1,893 138 394 131 828 964 2 Increase results from change in par value of the U.S. dollar on May 8, 1972. 3 Includes $15 million increase in Mar. and $160 million 1 Negotiable and other readily transferable foreign obligations payable on demand increase in Apr. in dollar value of foreign currency obliga­ or having a contractual maturity of not more than 1 year from the date on which the tions revalued to reflect market exchange rates. obligation was incurred by the foreigner. 2 Data on the two lines for this date differ because of changes in reporting coverage. Note.—Excludes deposits and U.S. Treas. securities Figures on the first line are comparable in coverage with those shown for the preceding held for international and regional organizations. Ear­ date; figures on the second line are comparable with those shown for the following date. marked gold is gold held for foreign and international a U c n c i o t u ed n ts S ta a t n e d s. is not included in the gold stock of the the N U ot n e i . t — ed D S a t t a a t e r s e . p T re h s e e y n t a r t e h e a li p q o u r i t d io n as s o e f t s t h a e b r t o o a ta d l o cl f a i l m ar s g e o n n o f n o b re a i n g k n i e n r g s r c e o p n o c r e t r e n d s b i y n 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

MAY 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 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.r Mar.r June Sept. Dec.* Dec. Mar. June Sept. Dec.* Europe: 5 5 6 2 2 14 17 16 15 20 Belgium-Luxembourg........... 65 104 108 82 75 60 45 64 63 62 Denmark.................................. 2 3 5 5 9 15 18 20 19 28 2 2 2 3 4 18 19 19 16 23 France...................................... 136 123 139 145 165 202 196 207 188 221 Germany, Fed, Rep. of........ 117 88 104 130 136 192 197 191 200 176 Greece...................................... 4 5 5 14 24 34 36 36 30 39 Italy........................................... 103 107 99 108 118 18 6 181 184 174 193 Netherlands............................. 69 86 65 79 102 68 66 66 71 78 Norway.................................... 5 6 5 5 9 13 16 17 19 18 Portugal.................................... 16 9 2 3 4 16 23 21 20 21 Spain......................................... 65 65 70 63 83 124 102 117 130 138 Sweden...................................... 17 16 13 14 12 40 35 37 45 56 Switzerland.............................. 104 73 97 119 119 63 60 59 57 79 Turkey...................................... 2 2 3 2 3 9 9 11 8 47 United Kingdom.................... 885 929 981 943 932 940 954 985 984 1,042 Yugoslavia.............................. 3 4 6 5 7 13 10 10 11 15 Other Western Europe......... 2 1 2 2 2 13 13 10 11 14 Eastern Europe....................... 4 5 3 9 3 28 25 22 47 42 Total................................. 1,606 1,634 1,714 1,733 1,808 2,046 2,023 2,093 2,108 2,310 Canada......................................... 181 189 185 183 208 781 1,045 936 996 899 Latin America: Argentina................................. 18 18 18 16 19 54 48 50 52 59 Brazil........................................ 19 18 19 24 35 147 138 152 163 175 Chile.......................................... 14 21 16 17 18 46 39 41 33 33 Colombia................................. 7 7 6 6 8 45 40 38 39 41 Cuba.......................................... * « * 1 1 1 1 1 1 1 Mexico...................................... 22 17 18 21 27 151 134 144 154 180 Panama.................................... 5 8 6 5 8 21 19 22 20 19 Peru........................................... 7 8 6 5 5 34 31 32 36 40 Uruguay................................... 2 3 3 2 6 5 6 5 7 4 Venezuela................................ 16 18 17 17 17 81 77 75 74 89 Other L.A. republics............. 32 27 32 30 35 99 94 106 96 91 Bahamas 1............................... 289 351 352 288 303 366 313 442 519 520 Neth. Antilles and Surinam. 3 5 6 9 10 9 8 10 11 12 Other Latin America............. 5 12 6 6 7 24 22 18 23 23 Total................................. 439 513 506 448 499 1,083 969 1,134 1,226 1,289 Asia: China, Rep. of (Taiwan)___ 18 23 25 26 28 41 45 45 51 67 Hong Kong.............................. 11 11 11 10 12 23 21 23 22 24 26 13 7 7 7 35 28 32 36 32 Indonesia.................................. 10 6 5 6 12 28 29 25 32 33 Israel......................................... 10 9 9 11 12 22 21 17 18 31 Japan........................................ 173 189 188 223 149 405 442 451 452 456 Korea........................................ 13 12 16 16 20 68 56 61 57 63 Philippines............................... 5 8 6 7 15 48 62 67 63 49 Thailand................................... 3 4 4 5 5 15 18 15 14 15 Other Asia............................... 142 109 104 140 149 144 171 174 172 201 Total................................. 412 383 374 451 410 830 894 911 918 972 Africa: Egypt........................................ 1 1 1 1 25 9 9 6 7 7 South Africa............................ 31 26 37 17 7 41 42 46 45 51 Zaire......................................... 1 1 1 2 1 6 5 7 7 5 Other Africa............................ 35 30 31 37 59 99 76 74 64 78 Total................................. 67 59 71 57 92 155 129 133 122 140 Other countries: Australia.................................. 42 50 54 46 47 80 83 97 92 88 All other.................................. 8 9 11 11 13 17 26 18 18 20 Total................................. 50 58 66 57 60 98 109 116 110 108 International and regional. . .. * « * * # 4 2 5 8 5 Grand total..................... 2,756 2,836 2,917 2,929 3,075 4,997 5,171 5,328 5,489 5,722 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 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 l a a b r l s e cu P fo r a r r y i e e n a n i b g c l n i e es Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter’s name 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 1,797 1,450 346 3,874 3,222 386 267 i / 1,786 1,399 387 3,710 3,124 221 365 1 2,124 1,654 471 4,159 3,532 244 383 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 Juner..................... 2,375 1,937 438 4,708 4,057 303 348 Sept........................ 2,564 2,109 454 4,894 4,186 383 326 j r / 2,704 2,229 475 5,185 4,535 318 333 6 ......................... \ 2,756 2,294 463 4,997 4,459 290 247 1972—Mar.'..................... 2,836 2,399 437 5,171 4,551 318 302 June....................... 2,917 2,444 472 5,328 4,682 376 270 Sept........................ 2,929 2,430 498 5,489 4,827 432 230 Dec.P..................... 3,075 2,584 491 5,722 5,087 397 238 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) (Claims Country or area End of period Total liabilities Total K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 1968—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 De 1 / 1,725 2,215 152 433 496 172 73 388 141 249 69 42 ........................... 1 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970— Mar.......................... 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June......................... 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept.......................... 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec........................... 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar.......................... 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June......................... 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept.r....................... 2,939 3,019 135 672 765 178 60 597 133 319 85 75 / 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 3,120 3,112 128 705 767 174 60 653 136 319 86 84 1972—Mar.r....................... 3,076 3,184 129 713 787 175 59 665 137 353 81 85 Juner....................... 3,308 3,193 108 707 797 180 57 668 136 361 86 93 Sept........................... 3,479 3,226 128 690 809 176 62 659 132 383 93 96 Dec.P....................... 3,625 3,319 137 709 833 178 58 668 152 389 87 109 * 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

MAY 1973 □ EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Australia Austria Belgium Canada Ceylon Denmark Finland France (dollar) (schilling) (franc) (dollar) (rupee) (krone) (markka) (franc) 1968........................................................................................ 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 1969........................................................................................ 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 19.302 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 18.087 113.61 4.0009 2.0598 99.021 16.800 13.508 23.758 18.148 119.23 4.3228 2.2716 100.937 16.057 14.384 24.022 19.825 1972—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 19.944 119.10 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 14.388 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............................................................................. 120.74 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 Mar............................................................................ 141.29 4.8759 2.5378 100.333 15.774 16.275 25.628 22.191 Apr............................................................................. 141.50 4.8380 2.4895 99.928 15.777 16.099 25.872 21.959 Period ( G D m e e r u a m t r s k a c n ) h y e (r I u n p d e ia e) ( I p r o e u la n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o l l a l y a s r i ) a M (p e e x s i o c ) o ( e g N r u l i e a l t d n h e d ­ r s ) 1968........................................................................................ 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 1969........................................................................................ 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 1972....................................................................................... 31.364 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 1972—Apr............................................................................. 31.468 13.735 261.02 .17138 .32943 35.406 8.0000 31.142 May............................................................................ 31.454 13.763 261.24 .17175 .32854 35.446 8.0000 31.124 June........................................................................... 31.560 13.754 256.91 .17142 .33070 35.475 8.0000 31.296 July............................................................................ 31.634 13.072 244.47 .17208 .33219 35.918 8.0000 31.424 Aug............................................................................. 31.382 13.030 245.02 .17203 .33204 36.026 8.0000 31.158 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 .17421 .36041 37.679 8.0000 33.119 Mar............................................................................ 35.548 13.260 247.24 .17604 .38190 39.922 8.0000 34.334 Apr............................................................................. 35.252 13.255 248.37 .16971 .37666 40.307 8.0000 33.890 United Period Z (d e N o a l e 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 f a r u n i t c d h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( e S f r r w l a a i n t n z c d ­ ) (p K d o i o u n m n g d ­ ) 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969........................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1970........................................................................................ 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1971........................................................................................ 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1972........................................................................................ 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—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 26.320 256.91 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 124.47 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 26.820 235.62 Feb............................................................................. 126.87 16.038 3.8562 134.91 1.6355 21.935 29.326 242.75 Mar............................................................................ 132.21 16.954 4.1005 141.43 1.7183 22.582 31.084 247.24 Apr............................................................................. 132.99 16.428 3.9563 141.70 1.7217 22.161 30.821 248.37 Note.—Averages of certified noon buying rates in New York for cable transfers. For description of rates and back data, see “International Fi­ nance,” Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 CENTRAL BANK RATES □ MAY 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Apr. 30, 1972 Rate Country 1972 1973 as of Apr. 30, Per Month 1973 cent effective May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Argentina. 18.0 Feb. 1972 18.0 Austria.... 5.0 Jan. 1970 5.5 5.5 Belgium... 4.0 Mar. 1972 4.5 5.0 5.0 Brazil........ 18.0 Feb. 1972 20.0 Canada..., 4.75 Oct. 1971 5.25 5.25 Ceylon...................................... 6.5 Jan. 1970 6.5 Chile.......................................... 7.0 Jan. 1972 7.0 China, Rep. of (Taiwan).... 9.25 May 1971 9.25 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................................ 5.75 Apr. 1972 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.... 4.0 Apr. 1972 4.0 Jamaica. 5.0 Dec. 1971 6.0 7.0 7.0 Japan... 4.75 Dec. 1971 4.25 5.0 5.0 Korea... 13.0 Jan. 1972 13.0 Mexico............ 4.5 June 1942 4.5 Morocco......... 3.50 Nov. 1951 3.50 Netherlands.., 4.0 Mar. 1972 3.0 4.0 4.0 New Zealand. 6.0 Mar. 1972 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 5.5 4.0 South Africa. 6.5 Mar. 1971 6.0 5.5 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 Thailand.... 5.0 Oct. 1959 5.0 Tunisia................... 5.0 Sept. 1966 5.0 Turkey................... 9.0 Sept. 1970 8.0 8.0 United Kingdom. 5.0 Sept. 1971 6.0 7.50 9.0 8.75 18.75 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 t 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, 4Vi Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. per cent for advances against government bonds, and 5l/i 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

MAY 1973 o OPEN MARKET RATES; ARBITRAGE A 93 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 it n z d er­ Month 3 T m r b e o i a l n s ls u t , h ry s1 D m a o d y n a - y e t y o 2 - 3 m P b b r o a i i l n n m ls t k , h e s3 3 T m r b e i o a l n s ls u t , h ry s D m a d o y a n - y t e o y - C d b r l e e a a p a t n o e r k s s in s i 4 t ’ g D m a o d y n a - y e t y o s - Tr 6 d b e 0 a i a - y l s l 9 s s u 0 , 6 ry D m a o d y n a - y e t y o 7 - 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y t e o y - d P is r r c i a v o t a u e 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—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 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 6.33 3.75 5.71 3.13 3.31 4.75 Dec.............. 3.66 3.71 8.08 7.76 6.23 5.57 7.32 4.25 6.69 3.12 3.20 4.75 1973—Jan............... 3.79 3.72 8.76 8.49 7.66 6.55 7.23 4.75 5.58 3.16 2.78 5.00 Feb............... 3.91 3.93 9.34 8.14 8.31 7.30 7.71 2.18 2.33 1.55 5.00 Mar.............. 4.28 4.21 9.76 8.16 7.52 7.50 11.37 1.53 .61 Apr.............. 4.69 4.53 8.64 7.87 7.20 7.25 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers* acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers’ allowance on Note.—For description and back data, see “International Finance,* deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Date United P ( r + em ) i o u r m inc N en e t t ive Canada d ( i + sc ) o u o n r t inc N en e t t ive Kingdom Spread discount (favor Spread (-) on (favor q ( u a b o U d a t j . s a . S i t s . t i ) o o n U S n ta it te e s d L ( o f n a o v d f o o r n) f ( p o - r o w ) u a n o r d n d Lon o d f on) qu A i o n t s ed qu A o U d t j . a . S t . t i o o n U S n ta it te e s d C ( a fa n o v a f o d r a) C f d o a r o n w l a la d a r r ia s d n Can o a f da) Canada basis 1972 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 Mar. 2............... 8.01 5.68 2.33 -2.82 -.49 4.05 3.96 5.68 -1.72 2.06 .34 9............... 8.11 5.76 2.35 -3.78 -1.43 4.15 4.05 5.76 -1.71 2.35 .64 16............... 7.99 6.04 1.95 -3.73 -1.78 4.28 4.18 6.04 -1.86 2.31 .45 23............... 7.87 6.21 1.66 -3.32 -1.66 4.42 4.31 6.21 -1.90 2.31 .41 30............... 7.83 6.22 1.61 -2.77 -1.16 4.50 4.39 6.22 -1.83 r2.52 r.69 Apr. 6............... 7.77 6.34 1.43 -2.57 -1.14 4.48 4.37 6.34 -1.97 2.16 .19 13............... 7.35 6.12 1.23 -2.15 -.92 4.75 4.63 6.12 -1.49 1.48 -.01 20............... 27 i............ 7.56 6.13 1.43 -1.86 -.43 4.86 4.82 6.13 -1.31 1.68 .37 i No data because of holiday on Good Friday. bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. 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, Oct. 1964 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 GOLD RESERVES □ MAY 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 End of mated Mone­ United mated Argen­ Aus­ Aus­ Bel­ period total tary States rest of geria tina tralia tria gium Brazil Burma Canada Chile world i Fund world 1965. 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969. 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 47 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 63 791 47 1971. 41,180 4,732 10,206 26,240 192 90 259 729 1,544 46 22 792 47 1972—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.. 44,896' 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 50 16 834 Dec.. *44,965 5.830 10.487 *28^650 208 152 281 792 1,638 50 12 834 1973—Jan... . 5.830 10.487 208 152 281 793 1,621 12 834 Feb.... 5.830 10.487 208 281 793 1,621 834 Mar.p. 5.830 10.487 208 282 793 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—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 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 4,436 132 264 142 156 17 44 Dec................. 87 16 69 92 53 3,826 4,459 133 264 142 156 17 43 1973—Jan................... 87 16 69 92 53 3,834 4,344 133 142 156 17 41 Feb.................. 87 16 69 53 3*834 4*344 133 142 156 17 41 Mar.p............. 16 69 53 3,834 4*344 142 156 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 et n h d e s r­ N w o a r y ­ P st a a 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—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 63 188 23 2,059 36 60 41 71 Dec................. 3,130 801 94 350 93 63 188 23 2,059 37 60 41 71 1973—jan.................. 3,134 801 94 350 93 63 23 2,059 37 60 41 71 Feb.................. 3,134 801 94 350 93 63 23 2*059 37 60 41 71 Mar.p............. 3,134 801 94 307 2,059 37 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1973 o GOLD RESERVES AND PRODUCTION A 95 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 it n z d er­ T la h n a d i­ Turkey U K d n i o i n t m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l l e . ­ ments 4 1965................................ 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—Mar..................... 925 119 405 498 200 2,909 82 129 751 156 391 51 354 925 119 412 498 200 2,909 82 127 751 156 391 51 347 1,004 129 471 541 217 3,158 89 127 816 169 425 56 365 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...................... 1,022 129 706 542 220 3,162 89 136 425 56 218 Feb...................... 1,022 131 711 220 3,162 89 136 425 56 214 Mar.*................. 1,022 131 714 220 3,162 89 136 425 56 214 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 1 A So fr u i t c h a Ghana Zaire U S n ta i t t e e s d C a a d n a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h in ili e p s ­ t A ra u l s ia ­ ot A h l e l r1 1966................................ 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 1967................................ 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1968................................ 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969................................ 1.420.0 1.090.7 24.8 6.0 60.1 89.1 6.3 3.7 7.7 3.4 23.7 20.0 24.5 60.0 1970................................ 1.450.0 1,128.0 24.6 6.2 63.5 84.3 6.9 4.0 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 7.1 1972—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 2.5 July................... 94.4 6.4 .5 .4 2.8 2.6 Aug.................... 94.1 5.9 .6 .3 2.8 2.8 Sept................... 93.9 6.3 .6 .3 3.1 Oct..................... 94.2 6.3 .5 .3 2.7 Nov................... 91.5 6.0 .7 Dec.................... 84.3 6.3 .5 1973—Jan..................... 88.2 6.2 Feb..................... 86.5 6.1 1 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

INCOME, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1972 (Income, etc. in thousands, and asset and liability items in millions, of dollars) Reserve city All Insured All Item insured nonmember member All other banks banks banks Total New York City of Other City Chicago Operating income—Total.................................................................. 40,055,267 8,720,739 31,334,528 17,956,075 4,991,944 1,284,801 11,679,329 13,378,454 Loans: Interest and fees........................................................................ 25,441,739 5,444,681 19,997,058 11,593,657 3,180,040 804,364 7,609,253 8,403,401 Federal funds sold and securities purchased with resale agreement............................................................................ 1,022,955 229,087 793,868 483,508 48,486 44,813 390,208 310,361 Securities—Interest and dividends:1 U.S. Treasury securities........................................................... 3,375,749 963,710 2,412,040 1,094,181 260,061 77,316 756,804 1,317,859 Other U.S. Govt, securities (agencies and corporations) 1,142,498 412,665 729,834 201,313 30,766 10,216 160,332 528,520 Obligations of States and political subdivisions................. 3,488,847 779,919 2,708,928 1,377,236 340,937 121,566 914,733 1,331,692 All other securities.................................................................... 318,675 84,854 233,821 116,557 34,147 9,088 73,322 117,264 Trust department income........................................................... 1,366,160 97,270 1,268,890 977,733 373,959 96,909 506,865 291,157 Service charges on deposit accounts........................................ 1,255,423 351,242 904,182 415,853 73,917 7,016 334,921 488,328 Other charges, fees, etc................................................................. 1,078,369 214,809 863,560 546,881 107,436 28,489 410,956 316,679 Other operating income: On trading account (net)......................................................... 257,174 3,006 254,168 237,850 103,081 22,277 112,492 16,318 Other............................................................................................. 1,307,677 139,496 1,168,181 911,307 439,116 62,748 409,443 256,874 Operating expenses—Total.............................................................. 32,826,740 7,187,850 25,638,890 14,615,559 3,915,031 1,021,092 9,679,436 11,023,331 Salaries and wages of officers and employees......................... 7,713,325 1,693,028 6,020,297 3,490,588 989,136 206,552 2,294,900 2,529,709 Officer and employee benefits..................................................... 1,323,050 250,021 1,073,029 654,264 217,035 41,313 395,916 418,765 Interest paid on: Time and savings deposits....................................................... 13,776,156 3,263,234 10,512,922 5,473,758 1,261,787 418,367 3,793,604 5,039,164 Federal funds purchased and securities sold with re­ purchase agreement.......................................................... 1,424,763 37,496 1,387,267 1,221,944 361,172 128,534 732,238 165,323 Other borrowed money........................................................... 114,613 12,549 102,064 84,143 21,210 11,650 51,284 17,921 Capital notes and debentures................................................. 212,220 28,672 183,548 143,037 49,503 3,563 89,970 40,511 Occupancy expense of bank premises, net.............................. 1,573,976 314,572 1,259,404 751,610 250,563 49,968 451,080 507,794 Furniture, equipment, etc............................................................. 1,082,486 234,804 847,681 451,985 109,458 25,628 316,898 395,696 Provision for loan losses.............................................................. 962,808 195,941 766,868 487,539 158,330 35,617 293,592 279,329 Other operating expenses............................................................. 4,643,343 1,157,533 3,485,811 1,856,691 496,838 99,900 1,259,953 1,629,120 Income before income taxes and securities gains or losses........... 7,228,527 1,532,889 5,695,638 3,340,515 1,076,913 263,709 1,999,893 2,355,123 Applicable income taxes.............................................................. 1,707,342 351,732 1,355,609 867,180 296,216 58,377 512,587 488,430 Income before securities gains or losses.................................. 5,521,185 1,181,156 4,340,029 2,473,336 780,697 205,332 1,487,306 1,866,693 Net securities gains or losses ( —) after taxes......................... 90,061 43,586 46,475 -11,336 -1,586 -4,370 -5,378 57,812 Extraordinary charges ( —) or credits after taxes................... 17,899 4,151 13,748 11,303 9,310 -63 2,057 2,445 Less minority interest in consolidated subsidiaries............... 663 294 370 306 306 63 Net income............................................................................................ 5,628,482 1,228,600 4,399,882 2,472,995 788,421 200,897 1,483,678 1,926,886 Cash dividends declared: On common stock......................................................................... 2,186,666 350,317 1,836,349 1,148,928 308,967 121,907 718,055 687,421 On preferred stock........................................................................ 3,813 954 2,859 1,923 920 1,003 936 Memoranda items: Income taxes applicable to 1972 operating income............... 1,707,342 351,732 1,355,609 867,180 296,216 58,377 512,587 488,430 Tax effect of: Net securities gains or losses (—), etc.................................. 78,271 21,624 56,647 17,952 1,243 -4,044 20,753 38,695 Transfers—Capital accounts to IRS loan loss reserves 2. -187,465 -34,754 -152,711 -93,372 -21,609 -11,163 -60,601 -59,339 Total provision for income taxes, 1972...................................... 1,598,148 338,603 1,259,545 791,759 275,850 43,170 472,739 467,786 Federal......................................................................................... 1,288,649 289,939 998,710 601,430 183,149 42,716 375,565 397,280 State and local............................................................................ 309,499 48,664 260,835 190,329 92,701 454 97,174 70,506 A 96 INSURED AND MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Memoranda items (cont.): Occupancy expense of bank premises, gross........................... 1,913,757 358,238 1,555,519 955,963 296,273 62,981 596,709 599,555 Rental income from bank premises...................................... 339,781 43,666 296,15 204,353 45,711 13,013 145,630 91,762 Net security gains or losses (—) before income taxes........... 164,011 64,505 99,506 1,846 -4,035 -8,356 14,240 97,659 Extraordinary charges (—) or credits before income tax... 22,220 4,856 17,364 16,071 13,002 -122 3,192 1,293 Reserves for losses on loans:3 Balance at beginning of year................................................... 6,232,238 997,222 5,235,016 3,438,275 1,255,669 289,548 1,892,761 1,796,740 Additions due to mergers and absorptions..................... 21,351 5,436 15,915 9,205 7,258 1,947 6,711 Recoveries credited to reserves.......................................... 362,351 69,445 292,906 152,624 41,362 7,293 103,970 140,282 Transfers to reserves............................................................. 1,403,450 296,757 1,106,693 691,324 203,907 63,883 423,533 415,369 Losses charged to reserves.................................................. 1,240,330 232,850 1,007,480 616,210 192,480 29,086 394,645 391,269 Transfers from reserves..................................................... 59,193 11,276 47,917 27,337 4,819 7,989 14,529 20,580 Balance at end of year.............................................................. 6,719,867 1,124,735 5,595,132 3,647,880 1,311,194 323,649 2,013,037 1,947,253 Net loan losses (—) or recoveries4.......................................... -882,908 -166,387 -716,521 -463,585 -151,118 -21,792 -290,674 -252,934 Reserves on securities: Balance at beginning of year................................................... 175,887 52,662 123,225 56,029 6,832 49,198 67,196 Additions due to mergers and absorptions..................... 169 133 36 36 Recoveries credited to reserves.......................................... 6,236 3,921 2,315 411 411 1,905 Transfers to reserves............................................................ 18,782 5,132 13,649 5,648 411 5,237 8,002 Losses charged to reserves................................................. 4,332 639 3,693 1,059 1,059 2,635 Transfers from reserves....................................................... 23,453 9,346 14,108 4,135 4,135 9 972 Balance at end of year.............................................................. 173,288 51,863 121,425 56,894 7,243 49,651 64,531 Total net changes in capital accounts............................................ 5,628,553 1,434,762 4,193,791 2,395,741 670,442 206,296 1,519,003 1,798,050 Net income transferred to undivided profits........................... 5,628,482 1,228,600 4,399,882 2,472,995 788,421 200,897 1,483,678 1,926,886 Common stock sold (net)........................................................... 619,842 146,749 473,093 360,313 285,213 31,374 43,726 112,780 Preferred stock, capital notes, and debentures sold............. 1,085,339 227,463 857,876 571,069 -29,140 39,000 561,210 286,807 Premium received on new capital stock sold.......................... 536,641 206,936 329,705 183,020 49,723 93,812 39,485 146,685 Transfers from loan and securities reserves............................ 82,646 20,621 62,025 31,473 4,819 7,989 18,665 30,552 Other increases.............................................................................. 930,279 150,076 780,202 534,422 121,928 1,442 411,052 245,781 Dividends declared......................................................................... 2,190,479 351,272 1,839,208 1,150,851 309,887 121,907 719,057 688,357 Transfers to loan and securities reserve (net of tax effect).. 283,217 77,208 206,009 116,634 24,018 17,515 75,101 89,375 Other decreases............................................................................... 780,978 117,204 663,774 490,066 216,615 28,796 244,655 173,708 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and resale purchases)................................................................................ 375,062 73,970 301,093 182,638 53,021 14,130 115,486 118,455 U.S. Treasury securities1........................................................... 61,627 17,084 33,543 20,718 4,700 1,469 14,550 23,826 Other U.S. Govt, securities (agencies and corporations)1.. 19,084 7,084 12,000 3,444 535 149 2,760 8,556 Obligations of States and political subdivisions1................. 84,109 18,272 65,837 33,306 7,801 2,662 22,843 32,531 All other securities1..................................................................... 4,764 1,261 3,503 1,749 541 150 1,058 1,754 Cast assets....................................................................................... 102,622 12,894 89,728 61,806 23,871 3,179 34,756 27,922 Total assets5.................................................................................... 676,721 134,252 542,469 322,895 97,814 23,272 201,810 219,573 Time and savings deposits........................................................... 295,817 68,225 227,592 119,437 27,942 8,928 82,567 108,155 Total deposits................................................................................. 566,170 118,716 447,454 255,419 75,534 17,814 162,071 192,034 Total capital accounts plus total reserves............................... 56,125 11,319 44,806 27,021 8,939 2,126 15,956 17,786 Equity capital plus total reserves.............................................. 52,598 10,859 41,739 24,607 8,031 2,075 14,501 17,132 Number of officers and employees................................................ 1,020,154 246,958 773,196 407,417 97,709 22,384 287,324 365,779 Number of banks.............................................................................. 13,721 8,017 5,704 178 13 9 156 5,526 For numbered notes see p. A-103. MAY 1973 □ INSURED AND MEMBER BANKS, 1972 A 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT (Income, etc. in thousands, and asset and liability items in millions, of dollars) Item New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Operating income—Total................................................................................... 1,288,897 7,223,065 1,522,218 2,288,515 1,770,012 2,280,866 4,694,823 1,018,616 877,128 1,411,789 1,687,294 5,271,305 Loans: Interest and fees............................................................................................. 836,475 4,602,789 1,000,593 1,391,655 1,187,564 1,432,382 2,881,036 620,859 569,711 897,901 1,079,432 3,496,661 Fed. funds sold and securities purchased with resale agreement.................................................................................................. 24,113 85,310 28,266 84,889 34,740 68,010 154,814 35,331 16,100 46,543 73,260 142,493 Securities—Interest and dividends:1 74,222 437,922 114,896 239,059 127,815 184,939 428,669 107,373 87,486 133,948 124,133 351,579 Other U.S. Govt, securities (agencies and corporations). .. 21,881 111,489 36,150 51,222 53,880 68,488 131,940 39,828 26,066 33,309 49,307 106,275 Obligations of States and political subdivisions......................... 103,006 598,291 145,613 242,071 163,811 216,966 431,055 91,241 71,739 126,200 160,531 358,404 All other securities........................................................................................ 8,224 56,369 19,037 23,016 5,955 17,551 55,123 7,115 2,446 6,449 9,524 23,012 95,608 439,030 61,162 92,997 51,400 62,737 185,821 26,564 22,017 42,395 49,074 140,084 Service charges on deposit accounts....................................................... 38,793 153,286 37,551 55,203 56,791 91,001 101,273 27,856 26,044 49,325 52,588 214,470 35,931 144,417 42,386 57,118 47,623 79,192 111 ,753 27,785 34,842 46,332 42,159 194,021 Other operating income: On trading account (net)........................................................................... 4,419 109,332 4,009 17,142 8,470 8,750 26,754 10,111 4,518 3,533 12,934 44,195 Other...................................................................................................................... 46,226 484,830 32,553 34,143 31,963 50,851 186,586 24,553 16,160 25,359 34,846 200,112 Operating expenses—Total................................................................................ 1,055,766 5,780,868 1,257,243 1,861,995 1,432,729 1,841,778 3,888,020 828,601 703,296 1,125,865 1,350,623 4,512,106 Salaries and wages of officers and employees................................... 298,572 1,430,255 277,860 396,157 370,275 448,657 805,244 183,688 140,635 262,262 283,151 1,123,540 Officer and employee benefits...................................................................... 56,170 300,425 54,315 61,489 62,669 74,722 143,583 30,170 24,824 39,338 42,760 182,565 Interest paid on: Time and savings deposits....................................................................... 326,509 2,057,508 551,182 845,058 558,146 700,184 1,838,464 350,699 343,263 461,778 561,123 1,919,009 Federal funds purchased and securities sold with repur­ chase agreement.................................................................................... 61,254 422,015 52,363 89,060 38,554 72,911 221,406 41,483 30,499 44,544 95,513 217,664 Other borrowed money.............................................................................. 2,649 25,687 10,875 2,657 3,711 15,454 15,304 1,683 3,198 3,328 10,843 6,676 Capital notes and debentures................................................................. 4,731 58,357 15,099 5,760 9,707 7,453 21,986 3,399 6,156 6,340 2,838 41,722 Occupancy expense of bank premises, net.......................................... 68,962 354,196 56,329 79,476 70,021 77,063 177,932 35,421 22,271 43,901 39,939 233,893 Furniture, equipment, etc............................................................................... 42,825 167,212 40,906 64,128 55,071 77,722 122,400 32,291 23,416 43,013 50,608 128,089 Provision for loan losses................................................................................. 35,375 211,675 29,614 49,539 32,539 60,390 93,120 22,471 11,899 35,134 49,340 135,773 Other operating expenses............................................................................... 158,718 753,539 168,700 268,672 232,036 307,222 448,582 127,298 97,135 186,229 214,507 523,174 Income before income taxes and securities gains or losses.................. 233,131 1,442,196 264,975 426,520 337,282 439,088 806,803 190,015 173,832 285,429 337,167 759,200 Applicable income taxes................................................................................. 68,789 352,183 43,372 73,789 83,409 105,282 173,190 43,225 54,132 74,255 79,652 204,332 Income before securities gains or losses................................................ 164,343 1,090,014 221,603 352,732 253,873 333,806 633,613 146,790 119,700 211,174 257,515 554,868 Net securities gains or losses ( —) after taxes..................................... 1,826 3,593 5,975 10,275 4,151 7,857 -14,785 5,338 1,931 5,149 6,116 9,049 Extraordinary charges ( —) or credits after taxes............................ 112 8,712 -747 286 870 -87 -141 604 962 179 229 2,770 Less minority interest in consolidated subsidiaries . • • • 251 11 18 85 4 2 Net income................................................................................................................... 166,280 1,102,319 226,580 363,282 258,895 341,576 618,667 152,646 122,594 216,498 263,860 566,685 Cash dividends declared: On common stock.............................................................................................. 89,768 465,939 105,633 145,875 100,083 120,587 273,134 56,774 44,968 85,859 92,682 255,047 On preferred stock............................................................................................. 34 928 20 366 632 133 350 7 25 292 17 54 Memoranda items: Income taxes applicable to 1972 operating income...................... 68,789 352,183 43,372 73,789 83,409 105,282 173,190 43,225 54,132 74,255 79,652 204,332 Tax effect of: Net securities gains or losses (—), etc............................................... 1,930 3,699 2,523 11,325 2,620 5,580 7,829 4,008 962 3,427 3,313 9,433 Transfers—Capital accounts to IRS loan loss reserves2.... -6,647 -31,797 -6,476 -8,790 -11,376 -12,080 -20,670 -3,711 -6,591 -6,739 -8,036 -29,799 Total provision for income taxes, 1972................................................... 64,072 324,085 39,419 76,324 74,653 98,782 160,349 43,523 48,503 70,943 74,928 183,966 Federal................................................................................................................. 41,923 214,415 38,787 76,299 67,340 87,923 136,124 41,722 32,908 62,390 74,659 124,220 State and local................................................................................................ 22,149 109,669 632 24 7,313 10,859 24,225 1,800 15,595 8,553 269 59,747 A 98 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Memoranda items (cont.): 80,312 411,670 63,412 100,579 85,292 106,978 213,661 41,512 31,868 63,968 81,157 275,110 11,350 57,474 7,083 21,103 15,271 29,915 35,729 6,092 9,597 20,067 41,218 41,217 Net securities gains or losses (—) before income taxes................ 3,811 4,444 9,779 21,391 6,500 13,129 -6,633 8,873 3,169 8,665 9,635 16,743 Extraordinary charges (—) or credits before income tax............. 57 11,561 -2,028 495 1,141 220 -464 1,077 686 90 24 4,508 Reserves for losses on loans: 3 Balance at beginning of year............................................................ 210,8871,618,958 254,029 350,948 243,815 277,819 810,022 137,170 125,414 174,354 240,588 791,012 Additions due to mergers and absorptions............................... 1,021 10,638 956 470 852 868 58 3 16 79 255 699 Recoveries credited to reserves........................................................ 13,101 62,127 7,237 18,119 12,151 30,477 34,476 9,001 6,224 15,134 36,381 48,479 Transfers to reserves.............................................................................. 48,720 279,571 44,363 70,952 56,688 87,335 144,841 31,654 25,164 50,602 68,237 198,565 Losses charged to reserves................................................................. 51,941 275,851 42,431 63,684 36,481 82,708 106,819 26,758 18,057 45,103 75,451 182,198 Transfers from reserves....................................................................... 1,504 7,123 717 7,450 2,117 2,926 13,313 1 ,289 1,099 1,529 4,501 4,350 Balance at end of year........................................................................ 220,285 1,688,320 263,437 369,356 274,908 310,864 869,265 149,781 137,662 193,357 265,510 852,208 Net loan losses (—) or recoveries 4........................................................ -38,864 -213,721 -35,190 -45,935 -24,437 -52,232 -72,513 -17,839 -11,883 -30,316 -39,653 -133,928 Reserves on securities: Balance at beginning of year............................................................. 1,598 3,733 945 30,730 5,084 10,579 20,658 13,515 2,359 2,882 25,072 6,070 7 12 18 69 96 867 14 428 57 175 95 323 193 Transfers to reserves.............................................................................. 166 401 27 2,878 218 565 1,874 1,163 694 187 3,251 2,225 33 148 66 26 4 244 51 1,882 46 1,081 110 Transfers from reserves........................................................................ 350 347 24 4,382 496 594 1,443 803 374 26 1,447 3,821 1,450 3,734 1,749 29,221 4,818 10,546 21,290 13,880 971 3,092 26,117 4,557 Total net changes in capital accounts...................................................... 81,332 925,611 165,726 259,208 218,889 386,629 669,060 117,440 142,425 169,324 256,668 801,480 Net income transferred to undivided profits..................................... 166,280 1,102,319 226,580 363,282 258,895 341,576 618,667 152,646 122,594 216,498 263,860 566,685 Common stock sold (net)............................................................................. 2,183 311,817 3,195 3,112 7,192 29,855 62,655 7,595 2,980 3,338 11,933 27,238 Preferred stock, capital notes, and debentures sold....................... 5,529 25,859 64,955 30,207 20,496 73,429 158,242 5,086 60,489 32,138 70,015 311,432 Premium received on new capital stock sold..................................... 1,009 69,609 10,680 7,218 13,853 59,159 128,048 7,032 5,208 4,901 16,159 6,831 Transfers from loan and securities reserves........................................ 1,854 7,470 741 11,832 2,614 3,521 14,755 2,092 1,473 1 ,556 5,948 8,170 Other increases..................................................................................................... 12,312 165,881 42,763 16,627 55,820 50,393 63,988 11,374 7,768 17,021 33,974 302,283 Dividends declared............................................................................................ 89,802 466,867 105,654 146,241 100,715 120,720 273,484 56,781 44,993 86,152 92,699 255,101 Transfers to loan and securities reserves (net of tax effect).... 7,131 36,474 8,313 15,952 13,053 15,455 32,924 6,634 7,452 9,273 15,673 37,676 Other decreases.................................................................................................... 10,902 254,002 69,222 10,876 26,213 35,128 70,887 4,971 5,641 .10,703 36,848 128,381 Assets, deposits, and capital accounts: Loans gross (including Federal funds sold and resale pur- 12,281 73,808 14,955 21,314 16,093 19,465 45,969 9,546 8,042 12,806 16,302 50,513 U.S. Treasury securities 1............................................................................. 1,357 7,966 2,119 4,373 2,228 3,352 7,792 1,982 1,708 2,421 2,307 6,939 Other U.S. Govt securities (agencies and corporations) 1.......... 374 1 ,773 591 830 837 1,120 2,101 688 446 540 837 1,864 Obligations of States and political subdivisions 1........................... 2,738 14,378 3,613 5,800 3,962 5,068 10,127 2,246 1,696 3,001 4,075 9,133 All other securities 1........................................................................................ 131 876 307 317 101 275 789 115 40 105 153 294 Cash assets............................................................................................................. 3,530 28,328 3,454 5,300 4,298 6,215 11,279 3,023 1,938 3,887 5,489 12,989 21,402 135,711 26,032 39,367 28,475 36,907 81,397 18,260 14,497 23,498 30,455 86,466 Time and savings deposits........................................................................... 7,365 45,992 12,044 18,723 12,098 14,893 39,091 7,341 6,941 9,471 11,451 42,183 Total deposits....................................................................................................... 17,319 107,871 21,652 32,796 24,231 31,260 67,964 15,334 12,226 19,878 25,225 71,697 Total capital accounts plus total reserves............................................ 1,847 12,051 2,276 3,636 2,347 3,018 6,705 1,530 1,131 1,972 2,392 6,002 Equity capital plus total reserves.............................................................. 1,759 10,984 2,050 3,551 2,217 2,879 6,245 1,466 1,044 1,881 2,307 5,358 Number of officers and employees............................................................... 39,604 157,044 38,173 54,095 53,495 62,866 103,647 27,007 19,245 34,915 38,170 144,935 Number of banks.................................................................................................... 219 334 294 463 363 575 939 430 498 813 633 143 For numbered notes see p. A-105. MAY 1973 □ MEMBER BANKS, 1972 A 99 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME, EXPENSES, AND DIVIDENDS OF LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income etc., in thousands, and asset and liability items in millions, of dollars) Federal Reserve District Item New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Operating income—Total............................................. 461,168 5,236,237 711,670 1,249,668 831,368 826,297 2,349,069 467,144 261,871 467,141 729,718 4,364,722 Loans: Interest and fees..................................................... 270,372 3,359,459 484,619 740,830 560,337 548,984 1,490,522 293,877 170,859 310,086 477,673 2,886,040 Federal funds sold and securities purchased with resale agreement................................... 10,633 51,055 9,426 60,158 14,153 26,676 98,201 18,910 4,516 16,298 42,509 130,973 Securities—Interest and dividends:1 U.S. Treasury securities....................................... 27,367 275,883 31,795 103,344 50,863 49,282 159,698 31,934 12,925 28,151 36,553 286,386 Other U.S. Govt, securities (agencies and corps)................................................................ 9,996 31,019 3,588 19,111 15,101 5,534 20,054 7,293 3,400 1,388 4,797 80,034 Obligations of States and political subdivisions 30,048 361,299 55,944 136,700 78,669 59,948 209,616 38,515 16,287 37,767 68,664 283,778 All other securities................................................. 2,323 34,515 4,744 14,577 2,492 9,720 17,697 4,035 596 2,311 3,371 20,176 Trust department income........................................ 53,344 379,281 43,853 71,897 36,047 31,748 139,211 17,842 16,681 29,126 36,287 122,415 Service charges on deposit accounts..................... 5,858 81,431 17,588 24,046 27,845 27,146 33,821 11,903 3,172 7,314 7,744 167,987 Other charges, fees, etc............................................. 18,894 112,793 32,660 36.560 20,882 29,510 60,776 16,659 17,369 17,868 21,746 161,165 Other operating income: On trading account (net)..................................... 3,055 105,609 4,009 17,031 6,519 6,700 24,327 9,413 4,518 2,977 10,845 42,848 Other......................................................................... 29,279 443,894 23,444 25,414 18,460 31,049 95,147 16,765 11,550 13,857 19,531 182,919 Operating expenses—Total......................................... 361,466 4,123,034 586,405 1,012,238 672,143 668,752 1,935,021 384,994 195,143 377,324 572,101 3,726,939 Salaries and wages of officers and employees. .. 109,063 1,031,072 139,525 215,766 184,939 170,771 398,892 87,039 42,123 85,784 106,770 918,844 Officer and employee benefits................................. 19,407 225,231 29,676 33.561 32,137 30,717 75,898 15,537 7,749 13,393 18,147 152,810 Interest paid on: Time and savings deposits.................................. 91,289 1,353,438 200,613 427,969 230,653 206,340 826,242 130,708 65,047 125,597 215,940 1,599,922 Federal funds purchased and securities sold with repurchase agreement......................... 43,696 379,599 49,757 84,795 28,943 50,374 200,420 38,966 27,253 32,326 84,012 201,803 Other borrowed money....................................... 986 21,978 9,739 1,852 2,617 13,172 13,760 1,439 2,993 1,309 10,036 4,263 Capital notes and debentures............................. 2,727 50,375 13,684 3,974 6,613 4,484 15,284 2,628 3,466 3,757 993 35,055 Occupancy expense of bank premises, net.......... 24,512 259,802 27,701 45,322 37,225 29,121 94,541 16,861 4,986 14,517 5,752 191,271 Furniture, equipment, etc........................................ 15,717 113,583 19,376 32,703 25,059 30,179 57,781 15,803 5,248 15,952 22,178 98,408 Provision for loan losses.......................................... 12,185 165,333 18,792 30,588 14,701 25,601 53,766 14,229 3,714 14,882 21,358 112,390 Other operating expenses........................................ 41,885 522,625 77,542 135,709 109,256 107,993 198,437 61,785 32,564 69,807 86,917 412,172 Income before income taxes and securities gains or 99,702 1,113,203 125,265 237,430 159,226 157,545 414,049 82,150 66,728 89,817 157,617 637,783 Applicable income taxes........................................... 37,350 304,680 23,071 38,071 40,281 44,455 89,534 18,511 26,779 23,402 41,115 179,932 Income before securities gains or losses............... 62,352 808,524 102,194 199,359 118,945 113,090 324,515 63,639 39,950 66,416 116,503 457,852 Net securities gains or losses (—) after taxes... 412 -2,186 918 5,199 -12 2,175 -28,070 2,289 803 1,500 1,601 4,037 Extraordinary charges ( —) or credits after taxes 9,310 93 227 31 116 577 217 731 Less minority interest in consolidated subsi­ diaries ................................................................... 251 55 Net income.......................... 62,764 815,647 102,861 204,650 118,932 115,492 296,475 65,989 40,752 68,492 118,321 462,620 Ca O sh n d c i o v m id m en o d n s s d t e o c c la k r _ e _ d _ : _ 37,418 326,326 52,324 94,031 47,870 53,492 171,924 32,149 17,663 41,539 52,185 222,010 On preferred stock.... 920 632 125 196 17 32 Memoranda items: Income taxes applicable to 1972 operating in­ come ..................................................................... 37,350 304,680 23,071 38,071 40,281 44,455 89,534 18,511 26,779 23,402 41,115 179,932 Tax effect of: Net securities gains or losses (—), etc.............. 229 594 454 7,362 -137 1,527 -1,556 1,894 985 1,719 1,411 3,471 Transfers—Capital accounts to IRS loan loss Total p r r e o s v e is r i v o e n 2 f . o .. r .. .. i . n .. c .. o .. m ... e .. .. t . a .. x .. e .. s .. , . .. 1 .. 9 .. 7 ... 2 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 3 2 4 ,6 ,9 6 1 5 4 - 2 2 8 2 2 , , 9 3 6 0 7 6 - 2 2 0 ,6 ,9 1 1 5 1 - 4 3 1 , . 4 9 8 5 2 1 - 3 4 5 ,5 ,5 7 7 1 2 - 4 5 0 ,1 ,7 9 9 1 2 -1 7 2 5 , , 1 8 1 6 2 5 — 1 8 1 , ,4 9 7 2 5 9 - 2 4 3 ,2 ,4 8 7 7 7 - 2 3 1 ,1 ,9 9 2 4 6 - 3 6 6 ,2 .2 6 6 0 6 - 1 2 5 4 8 ,5 ,8 5 5 3 0 Federal...................................................................... 23,854 187,707 20,651 41.951 30,753 37,844 65,569 17,893 14,875 19,503 36.266 104,565 State and local......................................... 11,060 94,600 259 4,819 2,948 10,296 1,037 8,603 2,423 54,285 A 100 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Memoranda items (cont.): Occupancy expense of bank premises, gross.... 29,746 308,977 32,767 61,238 46,521 45,770 113,557 20,739 10,961 27,134 33,423 225,i33 Rental income from bank premises.................. 5,234 49,175 5,066 15,916 9,296 16,649 19,016 3,878 5,975 12,617 27,671 33,862 Net securities gains or losses (—) before income taxes...................................................................... 641 -5,284 1,373 12,523 -150 3,615 -29,668 4,133 1,788 2,765 2,958 7,157 Extraordinary charges (—) or credits before in­ come taxes........................................................... 13,002 131 315 73 166 1,030 271 1,083 Reserves for losses on loans:3 Balance at beginning of year................................ 89,256 1,310,691 131,716 219,549 128,006 110,307 474,224 69,697 42,115 66,123 112,121 684,471 Additions due to mergers and absorptions.. 893 7,258 650 241 163 Recoveries credited to reserves...................... 4,676 44,860 2,774 8,736 5,222 12,157 14,954 3,805 615 4,513 12,812 37,499 Transfers to reserves........................................ 17,311 213,184 24,256 39,665 24,033 36,202 85,943 17,291 11,495 21,300 34,815 165,829 Losses charged to reserves.............................. 20,424 205,254 26,240 37,916 16,063 36,738 51,233 15,237 6,020 18,248 31,826 151,014 Transfers from reserves.................................... 680 4,819 5,911 1,762 1,590 10,363 309 8 815 1,070 11 Balance at end of year.......................................... 91,033 1,365,919 132,507 224,124 140,086 120,339 513,525 75,247 48,197 72,873 127,093 736,937 Net loan losses (—) or recoveries 4..................... -15,746 -160,394 -23,464 -29,178 -10,840 -24,579 -36,278 -11,431 -5,404 -13,734 -19,013 -113,513 Reserves on securities: 65 70 24,000 279 3,137 6,832 9,017 12,600 30 68 153 190 53 2,166 15 411 579 2,414 10 33 916 110 98 2,166 279 254 456 880 3 100 25 24,000 2,897 7,243 9,139 13,373 117 Total net changes in capital accounts......................... 27,854 679,190 61,832 121,011 94,027 132,289 359,784 39,470 68,990 47,548 113,852 649,894 Net income transferred to undivided profits----- 62,764 815,647 102,861 204,650 118,932 115,492 296,475 65,989 40,752 68,492 118,321 462,620 Common stock sold (net)........................................ 285,213 570 47 1,817 50,325 3,449 856 51 2,799 15,187 Preferred stock, capital notes, and debentures sold*........................................................................ -29,140 51,000 10,000 15,000 56,150 104,665 45,000 24,304 56,015 238,077 Premium received on new capital stock sold.... 49,723 1,291 208 8,355 112,912 3,584 3,974 136 2,838 Transfers from loan and securities reserves......... 680 4,917 8,077 2,040 1,844 10,363 766 8 815 1,949 13 Other increases........................................................... 5,658 121,928 24,052 1,371 21,927 21,493 32,664 1,115 25 16 10,294 293,880 Dividends declared.................................................... 37,418 327,246 52,324 94,031 48,501 53,617 172,120 32,149 17,663 41,539 52,202 222,042 Transfers to loan and securities reserves (net of 2,530 24,985 2,850 7,761 4,760 5,425 20,476 2,165 3,494 3,223 10,014 28,952 Other decreases.......................................................... 1,301 216,865 60,907 3,157 10,866 13,821 55,026 1,117 467 1,504 16,147 108,889 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and re­ sale purchases)................................................... 4,227 55,456 7,213 12,059 7,823 7,541 25,462 4,769 2,692 4,619 8,021 42,755 U.S. Treasury securities1......................................... 469 4,961 587 1,876 888 933 3,039 613 331 559 733 5,729 Other U.S. Govt, securities (agencies and corporations)1.................................................... 167 541 59 314 231 97 317 125 58 24 80 1,430 Obligations of States and political subdivisions1 809 8,355 1,322 3,257 1,966 1,412 4,803 954 365 920 1,793 7,351 All other securities1................................................... 44 549 79 194 44 145 270 65 12 47 61 239 Cash assets.................................................................. 1,617 24,343 1,987 3,388 2,483 2,614 6,887 1,759 869 1,680 2,880 11,298 Total assets 5............................................................... 7,859 101,749 11,888 22,101 13,935 13,386 43,074 8,700 4,722 8,191 14,361 72,930 Time and savings deposits...................................... 1,974 29,798 4,258 9,484 5,210 4,460 17,593 2,720 1,410 2,644 4,480 35,404 Total deposits............................................................. 5,772 78,523 9,197 17,612 11,642 10,683 33,954 6,819 3,549 6,577 11,040 60,050 Total capital accounts plus total reserves............ 714 9,252 1,075 2,140 1,163 1,153 3,612 730 386 682 1,092 5,023 Equity capital plus total reserves.......................... 664 8,327 874 2,085 1,076 1,065 3,354 681 339 624 1,035 4,485 Number of officers and employees............................ 12,028 103,329 16,492 26,380 24,714 21,610 46,476 12,506 5,280 10,407 12,661 115,534 Number of banks........................................................... 4 16 6 16 15 20 24 15 8 18 17 19 , For numbered notes see p. A-103. MAY 1973 □ MEMBER BANKS, 1972 A 101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME, EXPENSES, AND DIVIDENDS OF ALL OTHER MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income, etc. in thousands, and asset and liability items in millions, of dollars) Item New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Operating income—Total..................................................................................... 827,730 1,986,827 810,548 1,038,847 938,643 1,454,569 2,345,754 551,472 615,257 944,153 958,071 906,583 Loans: Interest and fees............................................................................................. 566,103 1,243,330 515,974 650,825 627,227 883,398 1,390,514 326,983 398,852 587,816 601,760 610,620 Federal funds sold and securities purchased with resale agreement................................................................................................. 13,480 34,256 18,840 24,731 20,588 41,335 56,613 16,420 11,584 30,245 30,751 11,519 Securities—Interest and dividends:1 U.S. Treasury securities............................................................................ 46,856 162,039 83,101 135,716 76,952 135,656 268,971 75,439 74,560 105,797 87,580 65,193 Other U.S. Govt, securities (agencies and corporations)___ 11,886 80,469 32,563 32,111 38,779 62,954 111,886 32,536 22,667 31,922 44,510 26,241 Obligations of States and political subdivisions...................... 72,958 236,992 89,670 105,372 85,141 157,018 221,439 52,726 55,452 88,433 91,867 74,626 All other securities........................................................................................ 5,900 21,854 14,293 8,439 3,463 7,831 37,426 3,080 1,850 4,139 6,153 2,836 Trust department income.............................................................................. 42,264 59,748 17,309 21,100 15,353 30,989 46,610 8,723 5,337 13,268 12,788 17,669 Service charges on deposit accounts....................................................... 32,935 71,856 19,963 31,157 28,946 63,854 67,452 15,953 22,873 42,012 44,845 46,483 Other charges, fees, etc.................................................................................... 17,037 31,625 9,726 20,558 26,742 49,683 50,977 11,127 17,473 28,464 20,413 32,857 Other operating income: On trading account (net)............................................. 1 364 3,723 111 1,951 2,050 2,428 698 557 2,090 1,347 Other...................................................................................................................... 16,948 40,936 9,110 8,729 13,503 19,802 91,439 7,788 4,610 11,502 15,315 17,193 O perating expenses—Total................................................................................ 694,300 1,657,834 670,837 849,757 760,587 1,173,026 1,952,999 443,607 508,153 748,541 778,522 785,167 Salaries and wages of officers and employees................................... 189,509 399,183 138,335 180,391 185,336 277,887 406,352 96,649 98,511 176,478 176,381 204,697 Officer and employee benefits...................................................................... 36,763 75,194 24,638 27,928 30,532 44,005 67,685 14,633 17,075 25,945 24,613 29,754 Interest paid on: Time and savings deposits....................................................................... 235,220 704,070 350,569 417,089 327,494 493,843 1,012,222 219,990 278,216 336,181 345,183 319,087 Federal funds purchased and securities sold with repur­ chase agreement.................................................................................... 17,558 42,417 2,606 4,265 9,611 22,537 20,986 2,517 3,247 12,218 11,502 15,861 Other borrowed money.............................................................................. 1,663 3,709 1,136 805 1,094 2,282 1,544 244 206 2,018 807 2,414 Capital notes and debentures................................................................. 2,004 7,982 1,416 1,786 3,094 2,970 6,702 771 2,690 2,583 1,845 6,667 Occupancy expense of bank premises, net........................................... 44,451 94,395 28,628 34,154 32,796 47,942 83,391 18,559 17,286 29,384 34,187 42,622 Furniture, equipment, etc............................................................................... 27,109 53,629 21,530 31,425 30,013 47,543 64,619 16,489 18,169 27,061 28,430 29,681 Provision for loan losses................................................................................. 23,191 46,342 10,822 18,951 17,838 34,789 39,355 8,242 8,185 20,251 27,982 23,383 Other operating expenses............................................................................... 116,833 230,915 91,158 132,964 122,780 199,228 250,144 65,514 64,571 116,422 127,591 111,002 Income before income taxes and securities gains or losses................. 133,430 328,993 139,710 189,090 178,057 281,543 392,755 107,865 107,104 195,612 179,549 121,416 Applicable income taxes................................................................................. 31,439 47,503 20,301 35,717 43,129 60,827 83,656 24,715 27,353 50,854 38,537 24,400 Income before securities gains or losses............................................... 101,991 281,490 119,410 153,373 134,928 220,716 309,099 83,150 79,750 144,758 141,013 97,016 Net securities gains or losses (—) after taxes..................................... 1,414 5,780 5,057 5,077 4,165 5,682 13,285 3,049 1,129 3,649 4,515 5,012 Extraordinary charges (—) or credits after taxes............................ 112 -597 -747 194 870 -314 -172 488 962 -397 12 2,039 Less minority interest in consolidated subsidiaries.................... 11 18 30 4 2 Net income................................................................................................................... 103,517 286,672 123,719 158,632 139,963 226,084 322,192 86,657 81,841 148,006 145,540 104,065 Cash dividends declared: On common stock.............................................................................................. 52,350 139,613 53,310 51,844 52,213 67,096 101,210 24,625 27,306 44,320 40,496 33,038 On preferred stock............................................................................ 34 8 20 366 8 154 7 25 292 22 Memoranda items: Income taxes applicable to 1972 operating income....................... 31,439 47,503 20,301 35,717 43,129 60,827 83,656 24,715 27,353 50,854 38,537 24,400 Tax effect of: Net securities gains or losses (—), etc............................................... 1,701 3,105 2,069 3,963 2,758 4,052 9,386 2,114 -23 1,708 1,902 5,962 Transfers—Capital accounts to IRS loan loss reserves2... . -3,983 -8,830 -3,861 -5,307 -6,805 -6,890 -8,558 -2,235 -2,304 -3,545 -1 ,776 — 5,246 Total provision for income taxes, 1972..................................................... 29,158 41,778 18,508 34,373 39,082 57,990 84,484 24,593 25,026 49,016 38,662 25,117 Federal.................................................................................................................. 18,069 26,709 18,136 34,348 36,587 50,079 70,555 23,830 18,033 42,886 38,393 19,655 State and local................................................................................................. 11,089 15,070 373 24 2,495 7,911 13,929 764 6,993 6,130 269 5,462 A 102 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Memoranda items (cont.): 50,567 102,694 30,644 39,341 38,771 61,208 100,104 20,773 20,908 36,834 47,734 49,977 6,116 8,299 2,017 5,187 5,976 13,266 16,712 2,214 3,622 7,451 13,547 7,355 3,171 9,729 8,407 8,868 6,651 9,514 23,036 4,740 1,381 5,900 6,676 9,587 Extraordinary charges (—) or credits before income tax............ 57 -1,441 -2,028 365 1 ,141 -94 -538 911 686 -940 -247 3,426 Reserves for losses on loans:3 121,631 308,267 122,313 131,400 115,809 167,512 335,798 67,473 83,299 108,231 128,467 106,541 128 3,380 956 470 203 868 58 3 16 79 14 537 8,425 17,267 4,463 9,383 6,929 18,319 19,522 5,196 5,609 10,621 23,569 10,979 31,409 66,387 20,107 31,287 32,655 51,133 58,898 14,363 13,669 29,302 33,423 32,737 31,517 70,597 16,191 25,768 20,418 45,970 55,586 11,521 12,037 26,855 43,625 31,184 824 2,304 717 1,539 356 1,336 2,950 980 1,091 714 3,431 4,339 129,252 322,401 130,931 145,232 134,822 190,525 355,740 74,534 89,465 120,664 138,417 115,271 -23,117 -53,326 -11,725 -16,756 -13,596 -27,652 -36,234 -6,407 -6,478 -16,581 -20,639 -20,414 Reserves on securities: 1,533 3,663 945 6,730 4,806 7,443 13,826 4,498 2,359 2,882 12,471 6,040 7 12 18 1 96 867 14 428 57 175 95 170 3 166 348 27 712 218 551 1,463 584 694 187 837 2,215 148 66 26 4 244 51 1,882 46 166 350 249 24 2,216 218 340 1,443 347 374 26 568 3,818 1,350 3,709 1,749 5,221 4,818 7,649 14,048 4,741 971 3,092 12,744 4,439 Total net changes in capital accounts............................................................. 53,478 246,421 103,894 138,197 124,862 254,340 309,277 77,969 73,435 121,776 142,816 151,586 Net income transferred to undivided profits...................................... 103,517 286,672 123,719 158,632 139,963 226,084 322,192 86,657 81,841 148,006 145,540 104,065 Common stock sold (net).............................................................................. 2,183 26,605 3,195 2,542 7,145 28,038 12,330 4,146 2,125 3,287 9,134 12,051 Preferred stock, capital notes, and debentures sold....................... 5,529 55,000 13,955 20,207 5,496 17,279 53,577 5,086 15,489 7,835 14,000 73,355 Premium received on new capital stock sold...................................... 1,009 19,886 10,680 5,927 13,645 50,804 15,136 3,448 1,234 4,765 13,321 6,831 Transfers from loan and securities reserves........................................ 1 ,174 2,553 741 3,755 573 1,676 4,393 1 ,327 1,465 740 3,999 8,157 Other increases..................................................................................................... 6,653 43,953 18,711 15,256 33,893 28,901 31,324 10,260 7,743 17,005 23,680 8,403 Dividends declared............................................................................................ 52,384 139,621 53,330 52,211 52,213 67,103 101,364 24,632 27,331 44,613 40,496 33,060 Transfers to loan and security reserves (net of tax effect).... 4.601 11,489 5,463 8,192 8,293 10,030 12,449 4,469 3,957 6,050 5,660 8,724 Other decreases.................................................................................................... 9.601 37,137 8,314 7,719 15,347 21,308 15,862 3,854 5,174 9,199 20,701 19,492 Assets, deposits, and capital accounts: Loans gross (including Federal funds sold and resale pur­ chases) ............................................................................................................. 8,054 18,352 7,741 9,255 8,270 11,924 20,506 4,778 5,350 8,187 8,281 7,758 U.S. Treasury securities 1.............................................................................. 887 3,006 1,532 2,497 1 ,341 2,419 4,753 1,368 1,377 1 ,862 1,574 1 ,210 Other U.S. Govt securities (agencies and corporations) 1........... 207 1,233 532 516 606 1,023 1,784 563 388 515 756 434 Obligations of States and political subdivisions 1........................... 1,929 6,023 2,291 2,543 1,995 3,656 5,325 1,292 1,332 2,081 2,282 1,782 All other securities 1........................................................................................ 87 327 228 122 57 130 519 50 29 57 92 55 Cash assets............................................................................................................. 1,913 3,985 1,467 1,912 1,814 3,601 4,392 1 ,264 1,069 2,207 2,609 1 ,691 Total assets 5........................................................................................................ 13,543 33,962 14,144 17,266 14,540 23,521 38,324 9,561 9,775 15,307 16,094 13,536 Time and savings deposits........................................................................... 5,391 16,193 7,786 9,239 6,888 10,433 21,497 4,621 5,532 6,826 6,971 6,779 Total deposits....................................................................................................... 11,547 29,349 12,455 15,184 12,589 20,578 34,010 8,514 8,677 13,301 14,185 11,647 Total capital accounts plus total reserves............................................ 1,133 2,799 1,201 1,496 1,184 1,865 2,993 799 745 1 ,290 1,301 979 Equity capital plus total reserves.............................................................. 1,095 2,657 1,176 1,465 1,142 1,814 2,891 786 705 1,257 1,272 874 Number of officers and employees............................................................... 27,576 53,715 21,681 27,715 28,781 41,256 57,171 14,501 13,965 24,508 25,509 29,401 Number of banks.................................................................................................... 215 318 288 447 348 555 915 415 490 795 616 124 1 Excluding trading account securities. banks not on a reserve accounting method and the excess of cluded in the time deposit figures used in this table. The 2 Prior to 1969 transfers to IRS reserve for bad debt losses losses charged against reserve for losses on loans over re­ number of officers and employees is as of the end of year. on loans were deducted from operating income; beginning coveries credited to these reserves for banks on a reserve Cash assets comprise cash, balances with other banks (in­ in 1969, within prescribed limits, banks may deduct all or accounting method. cluding reserve balances), and cash items in process of col­ part of the transfers to this reserve from income and treat 5 Including trading account securities. lection. Equity capital and reserves include common and the balance, if any, as a transfer from capital accounts. (These Note.—Figures exclude one member bank located outside preferred stock, surplus, undivided profits plus reserves transfers are exempt from Federal income taxes.) the continental United States. Balance sheet figures shown for contingencies, other capital reserves, and reserves on 3 Includes reserve for bad debt losses and other reserves on were obtained by averaging the amounts shown in each bank’s loans and securities. Total capital accounts include equity loans. official condition reports submitted for December 31, 1971, capital and capital notes and debentures. Details may not 4 Sum of the expense item “provision for loan losses” for June 30 and December 31, 1972. Savings deposits are in­ add to totals because of rounding. MAY 1973 □ MEMBER BANKS, 1972 A 103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME, EXPENSES, AND DIVIDENDS, BY SIZE OF BANK (Amounts in thousands of dollars) Size group—Total deposits (in thousands of dollars) Total i Less than 2,000- 5,000- 10,000- 25,000- 50,000- 100,000- 500,000- 2,000 5,000 10,000 25,000 50,000 100,000 500,000 or more Operating income—Total........................................................................ 31,323,692 6,694 124,215 535,252 1,977,646 2,152,646 2,209,131 5,631,712 18,686,397 Loans: Interest and fees................................................................................ 19,990,336 3,925 72,569 320,670 1,211,931 1,344,581 1,382,840 3,511,655 12,142,165 Federal funds sold and securities purchased with resale agreement................................................................................... 792,708 337 5,104 20,551 66,919 57,206 51,480 128,430 462,682 Securities—Interest and dividends:2 U.S. Treasury securities.................................................................. 2,410,560 1,353 22,518 80,652 253,724 231,337 220,186 460,972 1,139,820 Other U.S. Govt, securities (agencies and corporations) 729,512 346 8,177 29,260 95,039 98,751 92,104 194,452 211,383 Obligations of States and political subdivisions..................... 2,708,545 171 6,436 41,203 185,334 216,356 224,543 539,514 1,494,988 All other securities........................................................................... 233,698 67 997 3,871 13,634 17,468 22,646 55,005 120,010 Trust department income.................................................................... 1,268,890 128 681 6,394 24,898 43,522 222,134 971,134 Service charges on deposit accounts................................................ 903,830 229 4,456 21,534 83,893 85,646 81,594 180,246 446,232 Other charges, fees, etc........................................................................ 863,389 127 2,265 9,410 36,567 45,547 46,063 175,465 547,946 Other operating income: On trading account (net)................................................................ 254,168 14 39 547 14,578 238,990 Other.................................................................................................... 1,168,058 140 1,566 7,407 24,172 30,858 43,606 149,262 911,048 Operating expenses—Total..................................................................... 25,626,124 5,471 103,504 438,239 1,613,971 1,764,424 1,827,521 4,650,130 15,222,864 Salaries and wages of officers and employees................................ 6,016,834 1,953 29,042 106,923 360,432 385,753 407,942- 1,090,067 3,634,722 Officer and employee benefits............................................................ 1,072,660 182 3,079 13,757 52,717 60,785 66,625 188,017 687,499 Interest paid on: Time and savings deposits............................................................. 10,509,706 1,671 44,514 206,801 790,080 852,259 865,294 1,964,715 5,784,372 Federal funds purchased and securities sold with repurchase agreement....................................................................................... 1,387,204 13 129 660 3,058 8,012 16,426 152,264 1,206,642 Other borrowed money................................................................... 102,062 4 108 214 1,438 2,057 2,272 9,066 86,903 Capital notes and debentures........................................................ 183,548 1 22 224 2,130 4,309 6,615 23,024 147,223 Occupancy expense of bank premises, net..................................... 1,258,420 239 3,774 15,877 63,898 75,317 85,423 225,344 788,548 Furniture, equipment, etc................................................................... 847,220 203 3,139 13,907 52,600 60,951 65,326 189,977 461,116 Provision for loan losses..................................................................... 766,297 181 3,347 12,166 40,614 44,393 40,460 119,509 505,627 Other operating expenses.................................................................... 3,482,173 1,023 16,351 67,710 247,005 270,587 271,138 688,147 1,920,213 Income before income taxes and securities gains or losses............... 5,697,569 1,224 20,711 97,013 363,675 388,222 381,610 981,582 3,463,532 Applicable income taxes...................................................................... 1,356,039 291 5,311 23,220 83,135 82,769 77,333 210,195 873,785 Income before securities gains or losses.......................................... 4,341,530 933 15,400 73,793 280,539 305,453 304,277 771,387 2,589,748 Net securities gains or losses (—) after taxes................................ 46,450 8 415 2,701 11,905 11,896 10,890 20,114 -11,477 Extraordinary charges (—) or credits after taxes......................... 13,781 -9 114 309 1,142 316 1,082 -1,308 12,138 Less minority interest in consolidated subsidiaries...................... 370 1 6 43 52 269 Net income................................................................................................... 4,401,392 931 15,929 76,802 293,580 317,622 316,250 790,140 2,590,138 Cash dividends declared: On common stock................................................................................. 1,836,289 317 4,942 19,692 76,203 95,763 102,988 317,694 1,218,692 On preferred stock................................................................................ 2,859 10 92 191 118 668 1,780 Memoranda items: Income taxes applicable to 1972 operating income..................... 1,356,039 291 5,311 23,220 83,135 82,769 77,333 210,195 873,785 Tax effect of: Net securities gains or losses (—), etc......................................... 56,602 23 143 1,201 6,687 7,289 7,757 13,635 19,869 Transfers—Capital accounts to IRS loan loss reserves 3.... -152,678 -4 -254 -1,609 -7,794 -9,661 -9,952 -26,182 -97,223 Total provision for income taxes, 1972............................................ 1,259,963 310 5,200 22,812 82,028 80,397 75,138 197,648 796,430 Federal................................................................................................ 999,107 285 4,716 20,486 73,121 70,897 63,977 166,038 599,587 State and local................................................................................... 260,856 25 484 2,326 8,907 9,500 11,161 31,610 196,843 A 104 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Memoranda items (cont.): 1,554,522 251 4,043 17,174 69,412 85,319 101,196 289,630 987,497 296,103 12 270 1,297 5,514 10,002 15,773 64,286 198,948 Net securities gains or losses (—) before income taxes.................. 99,455 10 505 3,961 18,203 19,042 19,131 36,677 1.925 Extraordinary charges (—) or credits before income tax................ 17,379 12 166 250 1,530 458 598 -4,237 18,603 Reserves for losses on loans:4 Balance at beginning of year....................................................................... 5,235,014 352 9,057 51,262 217,566 269,514 302,825 826,010 3,558,430 Additions due to mergers and absorptions................................... 15,915 881 426 391 1,240 3,773 9,205 Recoveries credited to reserves............................................................ 292,879 111 1,573 7,657 26,276 26,384 21,608 51,389 157,883 1,105,984 117 4,062 17,965 61,489 69,494 63,468 174,608 714,782 Losses charged to reserves...................................................................... 1,007,386 178 4,041 18,435 58,158 64,916 56,694 162,188 642,775 Transfers from reserves........................................................................... 47,917 59 78 1,364 2,439 3,489 3,787 10,798 25,905 5,594,490 341 10,572 57,965 245,161 297,378 328,660 882,794 3,771,620 Net loan losses (—) or recoveries 5............................................................ -716,452 -152 -2,830 -11,175 -32,982 -38,531 -35,085 -110,798 -484,891 Reserves on securities: Balance at beginning of year........................................................................ 123,225 3 251 2,953 8,918 16,558 9,339 35,510 49,694 36 18 1 12 2,315 178 84 27 282 643 844 258 13,649 4 267 826 1,834 1,047 3,947 5,724 3,693 87 188 858 1,496 21 1,044 14,108 8 157 861 1,663 866 6,948 3,605 Balance at end of year.................................................................................... 121,425 3 425 3,061 8,739 16,153 8,674 33,343 51,027 4,134,509 673 12,524 66,784 277,318 295,342 307,542 685,224 2,489,102 Net income transferred to undivided profits.......................................... 4,401,392 931 15,929 76,802 293,580 317,622 316,250 790,140 2,590,138 448,899 3 893 3,096 14,708 15,144 15,482 29,920 369,654 Preferred stock, capital notes, and debentures sold............................ 857,876 530 3,465 19,952 32,210 35,593 133,487 632,639 Premium received on new capital stock sold......................................... 311,973 1,083 5,714 24,202 27,817 25,780 44,125 183,251 62,025 59 86 1,521 3,300 5,152 4,653 17,746 29,509 760,725 105 1,841 11,355 38,614 40,844 45,373 93,573 529,020 Dividends declared............................................................................................... 1,839,148 317 4,942 19,701 76,295 95,954 103,106 318,361 1,220,472 Transfers to loan and securities reserves (net of tax effect).......... 205,906 -5 859 4,867 15,269 17,567 13,783 33,547 120,019 663,327 114 2,036 10,601 25,475 29,925 18,701 71,858 504,618 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and resale purchases).. 329,680,493 60,588 1,125,147 4,945,230 18,324,106 20,260,448 20,997,656 55,258,286 208,709,032 U.S. Treasury securities2.................................................................................. 46,085,943 26,790 428,614 1,502,372 4,690,164 4,222,872 4,044,563 8,907,313 22,263,255 Other U.S. Govt, securities (agencies and corporations)2............. 13,269,342 6,561 154,030 566,675 1,789,339 1,749,571 1,577,260 3,368,009 4,057,897 Obligations of States and political subdivisions 2............................. 67,778,658 4,225 157,898 1,016,672 4,632,551 5,273,488 5,650,425 13,920,771 37,122,628 All other securities2............................................................................................. 3,939,188 1,044 13,057 66,700 257,027 286,390 362,958 850,285 2,101,727 Cash assets................................................................................................................. 96,508,150 17,447 292,542 1,118,898 4,009,022 4,384,962 4,809,798 14,665,112 67,210,369 Total assets 6........................................................................................................... 585,088,428 119,206 2,205,189 9,386,630 34,451,762 37,202,075 38,576,461 100,317,894 362,829,211 Time and savings deposits............................................................................... 243,544,972 39,879 1,024,449 4,711,635 17,925,340 19,202,291 19,602,643 45,255,707 135,783,028 Total deposits........................................................................................................... 482,177,236 103,589 1,965,975 8,412,905 30,922,134 33,058,753 34,180,305 86,131,374 287,402,201 Total capital accounts plus total reserves............................................... 46,864,852 14,005 209,704 812,470 2,750,038 2,975,024 3,030,229 7,867,474 29,205,908 Equity capital plus total reserves................................................................. 43,353,914 13,989 208,889 806,930 2,709,569 2,893,624 2,909,311 7,459,074 26,352,528 Number of officers and employees................................................................... 772,336 382 4,477 15,439 53,547 57,543 60,062 150,582 430,304 Number of banks....................................................................................................... 5,639 69 535 1,128 1,924 939 492 403 149 1 Total is for banks operating during the entire year, except that one bank located outside 5 Sum of the expense item “provision for loan losses” for banks not on a reserve accounting the continental United States is excluded. method and the excess of losses charged against reserve for losses on loans over recoveries 2 Excluding trading account securities. credited to these reserves for banks on a reserve accounting method. 3 Prior to 1969 all transfers to IRS reserve for bad debt losses on loans were deducted from 6 Including trading account securities. i f n er c s o t m o e t ; h i b s e r g e i s n e n r i v n e g f r in om 1 9 in 69 c o w m it e h a in n d p r tr e e s a cr t i t b h e e d b l a im lan it c s e , , b i a f n a k n s y , m a a s y a d tr e a d n u s c f t e r a f ll r o o m r p c a a r p t i t o a f l t a h c e c o t u ra n n ts s­ . an N d o n t u e m .— be T r h o e f f b ig a u n r k e s s a fo r r e a a s s s e o t f s , t h d e e p en os d i t o s, f c t a h p e it y a e l a r a . ccounts, number of officers and employees, (These transfers are exempt from Federal income taxes.) 4 Includes reserve for bad debt losses and other reserves on loans. Details may not add to totals because of rounding. MAY 1973 □ MEMBER BANKS, 1972 A 105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME RATIOS BY CLASS OF MEMBER BANK, AND FOR ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Class of bank Federal Reserve district Large All Item member Phila­ Min­ Kan­ San All banks Bos­ New del­ Cleve­ Rich­ At­ Chi­ St. neap­ sas Dal­ Fran­ New City of other ton York phia land mond lanta cago Louis olis City las cisco York Chi­ Other City cago Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains 9.72 9.89 10.24 10.86 10.38 9.33 9.92 10.76 9.93 11.43 11.55 10.12 9.97 11.42 11.21 11.10 10.35 9.81 9.68 10.23 11.24 10.54 9.45 10.03 11.05 10.23 11.67 11.86 9.90 10.41 11.74 11.51 11.43 10.57 Cash dividends paid.......................................................... 3.85 5.87 4.95 4.01 4.40 5.10 4.25 5.15 4.11 4.54 4.19 4.37 3.87 4.31 4.58 4.01 4.76 Percentage of net income: Cash dividends paid.......................................................... 39.30 60.68 48.46 35.72 41.80 54.00 42.35 46.62 40.25 38.90 35.34 44.20 37.19 36.70 39.79 35.13 45.01 Sources and disposition of income: Percentage of total assets: Total operating expenses................................................. 4.00 4.38 4.79 5.02 4.72 4.93 4.25 4.82 4.72 5.03 4.99 4.77 4.53 4.85 4.79 4.43 5.21 Salaries, wages, and fringe benefits.......................... 1.23 1.06 1.33 1.34 1.30 1.65 1.27 1.27 1.16 1.52 1.41 1.16 1.17 1.14 1.28 1.07 1.51 Interest on time and savings deposits...................... 1.28 1.79 1.87 2.29 1.93 1.52 1.51 2.11 2.14 1.96 1.89 2.25 1.92 2.36 1.96 1.84 2.21 Occupancy expense of bank premises, net............. .25 .21 .22 .23 .23 .32 .26 .21 .20 .24 .20 .21 . 19 . 15 . 18 . 13 .27 All other operating expenses..................................... 1.24 1.32 1.37 1.16 1.26 1.44 1.21 1.23 1.22 1.31 1.49 1.15 1.25 1.20 1.37 1.39 1.22 Total operating income.................................................... 5.10 5.52 5.78 6.09 5.77 6.02 5.32 5.84 5.81 6.21 6.18 5.76 5.57 6.05 6.00 5.54 6.09 Income after taxes and before securities gains .79 .88 .73 .84 .79 .76 .80 .84 .89 .89 .90 .77 .80 .82 .89 .84 .64 Net income......................................................................... .80 .86 .73 .87 .81 .77 .81 .87 .92 .90 .92 .76 .83 .84 .92 .86 .65 Percentage of total operating income: Interest, fees, and other loan income2........................ 64.67 66.09 68.49 65.13 66.35 66.76 64.90 67.58 64.51 69.05 65.78 64.66 64.41 66.78 66.92 68.29 69.03 Securities—Interest and dividends:3 U.S. Treasury securities.............................................. 5.20 6.01 6.47 9.85 7.69 5.75 6.06 7.54 10.44 7.22 8.10 9.13 10.54 9.97 9.49 7.35 6.66 Other U.S. Govt, securities (agencies and cor­ porations) ................................................................... .61 .79 1.37 3.95 2.32 1.69 1.54 2.37 2.23 3.04 3.00 2.81 3.91 2.97 2.36 2.92 2.01 Obligations of States and political subdivisions. . 6.82 9.46 7.83 9.95 8.64 7.99 8.28 9.56 10.57 9.25 9.51 9.18 8.95 8.17 8.94 9.51 6.79 All other securities........................................................ .68 .70 .62 .87 .74 .63 .78 1.25 1.00 .33 .76 1.17 .69 .27 .45 . 56 .43 Service charges on deposit accounts............................ 1.48 .54 2.86 3.65 2.88 3.00 2.12 2.46 2.41 3.20 3.98 2.15 2.73 2.96 3.49 3.11 4.06 Trust department income............................................... 7.49 7.54 4.33 2.17 4.04 7.41 6.07 4.01 4.06 2.90 2.75 3.95 2.60 2.51 3.00 2.90 2.65 All other operating income............................................. 13.05 8.87 8.03 4.43 7.34 6.77 10.25 5.23 4.78 5.01 6.12 6.95 6.17 6.37 5.35 5.36 8.37 Total operating income...................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages............................................................ 19.81 16.07 19.64 18.90 19.21 23.16 19.80 18.25 17.31 20.91 19.67 17.15 18.03 16.03 18.58 16.77 21.31 Officer and employee benefits........................................ 4.34 3.21 3.38 3.13 3.42 4.35 4.15 3.56 2.68 3.54 3.27 3.05 2.96 2.83 2.78 2.53 3.46 Interest on: 25.27 32.56 32.48 37.66 33.55 25.33 28.48 36.20 36.92 31.53 30.69 39.15 34.42 39.13 32.72 33.24 36.40 Borrowed money.......................................................... 7.65 10.91 6.70 1.36 4.75 4.95 6.19 4.15 4.00 2.38 3.87 5.04 4.23 3.84 3.39 6.30 4.25 .99 .27 .77 .30 .58 .36 .80 .99 .25 .54 .32 .46 .33 .70 .44 . 16 .79 Occupancy expense of bank premises, net................. 5.01 3.88 3.86 3.79 4.01 5.35 4.90 3.70 3.47 3.95 3.37 3.78 3.47 2.53 3.11 2.36 4.43 3.17 2.77 2.51 2.08 2.44 2.74 2.93 1.94 2.16 1.83 2.64 1.98 2.20 1.35 2.48 2.92 2.57 All other operating expenses......................................... 12.19 9.81 13.54 15.18 13.87 15.68 12.79 13.81 14.58 16.27 16.92 12.21 15.71 13.78 16.28 15.75 12.39 Total operating expenses.................................... 78.43 79.48 82.88 82.40 81.83 81.92 80.04 82.60 81.37 80.95 80.75 82.82 81.35 80.19 79.78 80.03 85.60 Income before taxes and securities gains (losses)... 21.57 20.52 17.12 17.60 18.17 18.08 19.96 17.40 18.63 19.05 19.25 17.18 18.65 19.81 20.22 19.97 14.40 Income after taxes and before securities gains (losses)............................................................................. 15.63 15.98 12.73 13.95 13.85 12.75 15.09 14.55 15.41 14.34 14.63 13.49 14.41 13.64 14.96 15.25 10.52 Net securities gains or losses (—), after taxes........... -.02 -.35 -.05 .44 .15 .15 .05 .36 .45 .24 .34 -.32 .51 .23 .37 .37 .18 All other income (net) • • • • . 18 .02 .01 .04 .12 -.03 .01 .04 . 06 .10 .01 .01 .05 15.79 15.63 12.70 14.40 14.04 12.90 15.26 14.88 15.87 14.62 14.97 13.17 14.98 13.97 15.34 15.63 10.75 A 106 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return (per cent): On securities—Interest and dividends;3 U.S. Treasury securities.............................................. 5.53 5.26 5.20 5.53 5.41 5.47 5.49 5.42 5.46 5.73 5.51 5.50 5.41 5.12 5.53 5.38 5.06 Other U.S. Govt, securities (agencies and cor­ porations) ................................................................... 5.75 6.84 5.80 6.17 6.08 5.85 6.28 6.11 6.17 6.44 6.11 6.28 5.78 5.84 6.17 5.89 5.70 Obligations of States and political subdivisions.. 4.37 4.56 4.00 4.09 4.11 3.76 4.16 4.03 4.17 4.13 4.28 4.25 4.06 4.22 4.20 3.93 3.92 All other securities........................................................ 6.31 6.04 6.92 6.68 6.67 6.28 6.43 6.19 7.26 5.91 6.38 6.98 6.20 6.05 6.15 6.21 7.82 On loans:1 Interest, fees, and other loan income...................... 6.08 6.00 6.92 7.35 6.90 7.00 6.35 6.87 6.92 7.59 7.70 6.60 6.87 7.28 7.37 7.07 7.20 Net loan losses (—) or recoveries4.......................... -.28 -.15 -.25 -.21 — .23 -.31 -.28 -.23 -.21 -.15 -.26 -.15 -.18 -.14 -.23 -.23 -.26 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities......................................... 4.80 6.31 7.20 10.85 8.21 6.33 5.87 8.13 11.10 7.82 9.08 9.57 10.85 11.78 10.30 7.57 8.02 Other U.S. Govt, securities (agencies and cor­ porations) ............................................................... .54 .64 1.36 3.89 2.21 1.74 1.30 2.27 2.10 2.93 3.03 2.58 3.76 3.07 2.29 2.74 2.15 Obligations of States and political subdivisions 7.97 11.44 11.31 14.81 12.13 12.79 10.59 13.87 14.73 13.91 13.73 12.44 12.30 11.70 12.76 13.37 10.56 All other securities................................................... .55 .64 .52 .79 .64 .61 .64 1.18 .80 .35 .74 .96 .62 .27 .44 .50 .34 Gross loans2................................................................... 54.20 60.71 57.22 53.94 55.50 57.38 54.38 57.44 54.14 56.51 52.74 56.47 52.28 55.47 54.49 53.52 58.41 Cash assets..................................................................... 24.40 13.66 17.22 12.71 16.54 16.49 20.87 13.26 13.46 15.09 16.84 13.85 16.55 13.36 16.54 18.02 15.02 Real estate assets.......................................................... 1.01 1.48 1.80 1.79 1.64 1.96 1.17 1.48 1.50 1.88 2.23 1.53 1.65 1.50 1.71 2.19 2.00 Percentage of gross loans:2 Commercial and industrial loans............................. 50.52 50.44 36.55 25.21 35.20 39.23 43.62 32.82 29.87 29.88 31.47 32.43 29.79 29.81 27.34 36.84 33.88 Loans to farmers.......................................................... .07 .60 1.56 5.05 2.62 .28 .26 1.12 1.01 1.18 1.18 2.41 3.85 10.61 14.68 5.35 3.54 Real estate loans........................................................... 9.79 7.13 21.26 30.52 22.22 23.57 16.54 28.38 26.62 23.87 19.66 26.10 22.54 26.59 15.91 12.92 27.27 Loans to individuals for personal expenditures... 8.76 7.92 18.13 28.08 19.91 21.04 13.59 20.97 24.87 31.58 31.67 17.84 25.15 21.46 23.30 20.47 17.86 All other loans2............................................................ 30.86 33.91 22.50 11.14 20.05 15.88 25.99 16.71 17.63 13.49 16.02 21.22 18.67 11.53 18.77 24.42 17.45 Other ratios (per cent): Interest on time and savings deposits to time and savings deposits............................................................. 4.51 4.68 4.59 4.65 4.61 4.43 4.47 4.57 4.51 4.61 4.70 4.70 4.77 4.94 4.87 4.90 4.54 Income taxes to net income plus income taxes......... 25.91 17.68 24.16 19.53 22.25 27.81 22.72 14.81 17.36 22.38 22.43 20.58 22.18 28.34 24.68 22.11 24.50 Time and savings deposits to total deposits.............. 36.99 50.11 50.94 56.32 50.86 42.52 42.63 55.62 57.08 49.93 47.64 57.51 47.87 56.77 47.64 45.39 58.83 Total capital accounts and reserves to total assets 5. 9.13 9.13 7.90 8.10 8.25 8.63 8.87 8.74 9.23 8.24 8.17 8.11 8.37 7.80 8.39 7.85 6.94 Number of banks 6................................................................ 13 9 156 5,526 5,704 219 334 294 463 363 575 939 430 498 813 633 143 For notes see p. A-l 11. MAY 1973 □ MEMBER BANKS, 1972 A 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME RATIOS OF OTHER LARGE MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1 9.39 9.70 11.57 9.55 11.05 10.62 9.67 9.34 11.79 10.64 11.25 10.20 Net income.............................................................................. 9.45 9.79 11.76 9.81 11.05 10.84 8.83 9.69 12.03 10.97 11.43 10.31 Cash dividends paid............................................................... 5.63 3.92 5.98 4.50 4.50 5.03 5.13 4.72 5.21 6.65 5.04 4.95 Percentage of net income: Cash dividends paid. 59.61 40.12 50.86 45.94 40.78 46.42 58.05 48.71 43.34 60.64 44.11 47.99 Sources and disposition of income: Percentage of total assets: Total operating expenses...................................................... 4.59 4.05 4.93 4.58 4.82 4.99 4.49 4.42 4.13 4.60 3.98 5.11 Salaries, wages, and fringe benefits............................... 1.63 1.23 1.42 1.12 1.55 1.50 1.10 1.17 1.05 1.21 .86 1.46 Interest on time and savings deposits........................... 1.16 1.33 1.68 1.93 1.65 1.54 1.91 1.50 1.37 1.53 1.50 2.19 Occupancy expense of bank premises, net................... .31 .25 .23 .20 .26 .21 .21 .19 .10 .17 .04 .26 All other operating expenses........................................... 1.49 1.24 1.60 1.33 1.36 1.74 1.27 1.56 1.61 1.69 1.58 1.20 Total operating income......................................................... 5.86 5.14 5.98 5.65 5.96 6.17 5.45 5.36 5.54 5.70 5.08 5.98 Income after taxes and before securities gains (losses)1. .79 .79 .85 .90 .85 .84 .75 .73 .84 .81 .81 .62 Net income............................................................................... .79 .80 .86 .92 .85 .86 .68 .75 .86 .83 .82 .63 Percentage of total operating income: Interest, fees, and other loan income2...................................... 60.93 65.13 69.42 64.09 69.10 69.66 67.63 66.95 66.96 69.86 71.28 69.12 Securities—Interest and dividends:3.......................................... U.S. Treasury securities............................................................ 5.93 5.26 4.46 8.26 6.11 5.96 6.79 6.83 4.93 6.02 5.00 6.56 Other U.S. Govt, securities (agencies and corporations). 2.16 .59 .50 1.52 1.81 .66 .85 1.56 1.29 .29 .65 1.83 Obligations of States and political subdivisions................ 6.51 6.89 7.86 10.93 9.46 7.25 8.92 8.24 6.21 8.08 9.40 6.50 All other securities..................................................................... .50 .65 .66 1.16 .29 1.17 .75 .86 .22 .49 .46 .46 Service charges on deposit accounts........................................ 1.27 1.55 2.47 1.92 3.34 3.28 1.43 2.54 1.21 1.56 1.06 3.84 Trust department income............................................................. 11.56 7.24 6.16 5.75 4.33 3.84 5.92 3.81 6.36 6.23 4.97 2.80 All other operating income.......................................................... 11.14 12.69 8.47 6.37 5.56 8.18 7.71 9.21 12.82 7.47 7.18 8.89 Total operating income. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages........................................... 23.64 19.69 19.60 17.26 22.24 20.66 16.98 18.63 16.08 18.36 14.63 21.05 Officer and employee benefits....................... 4.20 4.30 4.16 2.68 3.86 3.71 3.23 3.32 2.95 2.86 2.48 3.50 Interest on: Time and savings deposits........................ 19.79 25.84 28.18 34.24 27.74 24.97 35.17 27.98 24.83 26.88 29.59 36.65 Borrowed money......................................... 9.68 7.66 8.36 6.93 3.79 7.69 9.11 8.64 11.54 7.20 12.88 4.72 Capital notes and debentures................... .59 .96 1.92 .31 .79 .54 .65 .56 1.32 .80 .13 .80 Occupancy expense of bank premises, net. 5.31 4.96 3.89 3.62 4.47 3.52 4.02 3.60 1.90 3.10 .78 4.38 Provision for loan losses................................ 2.64 3.15 2.64 2.44 1.76 3.09 2.28 3.04 1.41 3.18 2.92 2.57 All other operating expenses........................ 12.54 12.19 13.65 13.53 16.20 16.76 10.94 16.65 14.49 18.40 15.00 11.72 Total operating expenses. 78.39 78.75 82.40 81.01 80.85 80.94 82.38 82.42 74.52 80.78 78.41 85.39 Income before taxes and securities gains (losses)........... 21.61 21.25 17.60 18.99 19.15 19.06 17.62 17.58 25.48 19.22 21.59 14.61 Income after taxes and before securities gains (losses). 13.52 15.44 14.35 15.95 14.30 13.68 13.81 13.62 15.25 14.21 15.96 10.48 Net securities gains or losses (—), after taxes................ .08 -.04 .07 .42 .27 -1.19 .47 .31 .33 .23 .10 All other income (net).......................................................... .17 .03 .02 .03 .12 .02 .01 Net income. 13.60 15.57 14.45 16.37 14.30 13.97 12.62 14.12 15.56 14.66 16.21 10.59 A 108 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return: On securities—Interest and dividends:3 U.S. Treasury securities....................................................................... 5.83 5.56 5.41 5.50 5.73 5.28 5.25 5.20 3.90 5.03 4.98 4.99 Other U.S. Govt, securities (agencies and corporations).............. 5.97 5.73 6.06 6.08 6.53 5.68 6.32 5.82 5.82 5.74 5.96 5.59 Obligations of States and political subdivisions............................. 3.71 4.32 4.23 4.19 4.00 4.24 4.36 4.03 4.46 4.10 3.82 3.86 All other securities................................................................................. 5.30 6.28 5.98 7.49 5.72 6.69 6.54 6.24 5.15 4.86 5.50 8.44 On loans:2 Interest, fees, and other loan income................................................ 6.64 6.14 6.84 6.64 7.34 7.63 6.23 6.55 6.51 7.06 6.48 7.05 Net loan losses (—) or recoveries4.................................................... -.37 -.28 -.32 -.24 -.13 -.32 -.14 -.23 -.20 -.29 -.23 -.26 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities................................................................... 5.96 4.87 4.93 8.48 6.37 6.97 7.05 7.05 7.00 6.82 5.10 7.85 Other U.S. Govt, securities (agencies and corporations)........... 2.12 .53 .49 1.42 1.65 .72 .73 1.43 1.23 .29 .56 1.96 Obligations of States and political subdivisions......................... 10.29 8.21 11.11 14.73 14.10 10.54 11.14 10.96 7.72 11.23 12.48 10.07 All other securities............................................................................. .55 .53 .66 .87 .31 1.08 .62 .74 .24 .57 .42 .32 Gross loans2............................................................................................ 53.78 54.50 60.67 54.56 56.13 56.33 59.11 54.81 57.02 56.39 55.85 58.62 Cash assets............................................................................................... 20.57 23.92 16.71 15.32 17.82 19.52 15.98 20.22 18.40 20.51 20.05 15.49 Real estate assets.................................................................................... 1.91 1.02 1.24 1.39 1.62 2.55 1.49 1.66 1.40 1.89 2.40 1.93 Percentage of gross loans:2 Commercial and industrial loans........................................................ 54.27 49.71 45.21 37.72 35.09 35.66 40.50 38.67 45.61 31.26 40.50 34.94 Loans to farmers.................................................................................... .07 .09 .16 .04 .35 .36 .45 .48 .75 5.43 1.06 3.04 Real estate loans.................................................................................... 9.45 10.49 14.65 19.74 19.31 13.34 17.80 13.35 14.00 14.31 10.77 26.91 Loans to individuals for personal expenditures............................... 11.37 9.23 15.58 18.86 28.10 29.23 11.35 21.35 17.46 20.95 13.74 16.04 All other loans2...................................................................................... 24.84 30.48 24.40 23.64 17.15 21.41 29.90 26.15 22.18 28.05 33.93 19.07 Other ratios (per cent): Interest on time and savings deposits to time and savings deposits 4.62 4.54 4.71 4.51 4.42 4.62 4.69 4.80 4.61 4.74 4.81 4.51 Income taxes to net income plus income taxes................................... 35.74 25.71 16.89 17.01 23.02 26.10 20.37 22.29 36.55 24.24 23.45 25.56 Time and savings deposits to total deposits......................................... 34.19 37.94 46.29 53.84 44.75 41.75 51.81 39.89 39.71 40.20 40.58 58.95 Total capital accts. and reserves to total assets5................................. 9.08 9.09 9.03 9.68 8.34 8.61 8.38 8.39 8.16 8.32 7.60 6.88 Number of banks6........................................................................................... 4 16 6 16 15 20 24 15 8 18 17 19 For notes see p. A-lll. MAY 1973 □ MEMBER BANKS, 1972 A 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INCOME RATIOS OF ALL OTHER MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Pe C N I r n c a e e c s t n o h i t m n a d g e c i e v o a i m o d ft e f e e n r e .. d q . t . u s . a . . x i p . t . e y . a . s . i . c . d a . a . n . . p . . . d . i . . . t . . a . b . . . . l . e . . . p . f . . . o l . . . u . r . . . . s e . . . . . . a . . s . . l . . e . l . . c . . . r . u . . e . . . r . s . . . i e . . t . . r i . . . e . v . . . s e . . . . s . . g . : . . . a . . . . i . . . n . . . . s . . . . . . ( . . . l . . . o . . . . s . . . s . . . . e . . . . s . . . ) . . . 1 . . . . . . . . . . . . . . . 9 9 4 . . . 4 7 3 5 8 0 1 1 5 0 0 . . . 2 5 7 5 9 8 1 1 4 0 0 . . . 5 1 5 5 3 2 1 1 3 0 0 . . . 5 4 8 5 6 2 1 1 4 2 1 . . . 5 2 7 7 8 6 1 1 3 2 2 . . . 6 4 1 9 6 0 1 1 3 0 1 . . . 6 5 1 5 0 4 1 1 3 0 1 . . . 5 1 0 1 3 3 1 1 3 1 1 . . .6 8 2 1 5 7 1 1 3 1 1 . . . 5 4 7 9 7 4 1 1 3 0 1 . . . 1 9 4 8 7 3 1 1 3 1 1 . . . 9 7 0 1 8 9 Pe C rc a e s n h t a d g i e v i o d f e n n d et s i p n a c i o d m ... e .. : ................................................................ 50.60 48.70 43.10 32.91 37.30 29.68 31.46 28.42 33.39 30.14 27.82 31.76 Sources and disposition of income: Pe I T T N r n c o o e e c I O A S t t t n o n a a a l c m t i t l l l l a n c e a o o o u g r e c r p e p t e p i o a h e s e e a m f s t o e r r t n , r a a e f o e c w r t t n t . o y i i . o n n a . t p . t t a e . g g g a e i . x x . m e r l . p e i e . s a . n a e , x s . e t . c s p . i n a a . a n s o . e s n . n n e g m . e n d . d t d . s s . e o e . e : f . b x s . r f . s . a . e p . i . . b . n v . . f . e . . o . a . i . g . n . . n . r . n . e . . . s g . e . . k . . . e b . s . . . s . . s . . e p . e . d . . . . n . . . r c . . . . e . . . . e u e . . . . p . m . . . f r . . . . . i o . . . i . t . . . i t . . s . . s s . . i . . . i e . . . . e . . . t . . . s . s . . . s . . . . . * . . . . . . . . . . . g . . . . . . . n . . . . . a . . . . . . . . . . . e . i . . . . . . . n . . . . . t . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . ( . . . . . . . . . . . l . . . . . . . . o . . . . . . . . . . . . . . s . . . . . . . . . . . . . . s . . . . . . . . . . . e . . . . . . . . . . . . . s . . . . . . . . . . . . . ) . . . . . . . . . . . 1 . . . . . . . . . . . . . . . - . . . . . . . . . - . . . . . . . . . - . . . . . . . . . . - . . . . . . . . . . 5 6 1 1 1 . . . . . . . . 1 1 7 3 7 7 6 4 1 5 3 2 2 7 6 0 4 2 5 1 1 . . . . . . . . 8 8 0 1 8 2 8 3 5 5 8 7 7 2 9 4 2 4 5 1 . . . . . . . . 4 7 7 8 1 9 2 8 5 7 7 3 2 4 0 4 4 2 6 1 1 . . . . . . . . 4 0 9 9 1 8 1 2 1 1 1 2 9 8 2 0 6 2 5 1 1 . . . . . . . . 4 2 2 4 9 9 2 2 5 5 3 2 6 8 8 2 4 2 6 1 1 . . . . . . . . 9 0 1 9 9 3 3 2 9 8 8 3 3 6 6 0 5 6 2 1 1 . . . . . . . . 0 0 6 1 2 2 8 8 1 1 9 2 3 4 4 0 5 4 2 1 . . . . . . . . 7 6 3 8 1 1 9 9 3 6 6 9 6 0 8 0 5 6 2 1 1 . . . . . . . . 1 2 8 8 1 8 1 0 1 9 9 7 3 4 8 0 4 2 6 1 1 . . . . . . . . 8 1 1 9 3 1 1 9 9 9 6 6 9 2 9 4 5 4 2 1 1 . . . . . . . . 9 8 1 2 8 9 2 2 1 5 3 6 4 4 0 4 2 5 6 1 1 . . . . . . . . 3 4 7 6 8 7 3 7 1 1 1 5 9 3 6 0 Pe I r n c t e e n r t e a s g t e , f o ee f s t , o t a a n l d o p o e th ra e t r i n lo g a i n n c in om co e m : e2.................................... 70.02 64.30 65.98 65.02 69.01 63.57 61.69 62.27 66.70 65.46 66.01 68.62 Sec U u . r S i . t i T es r — ea I s n u t r e y r e s s e t c a u n r d it i d e i s v .. i . d ... e .. n .. d ... s .. : . 3 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.66 8.15 10.25 13.06 8.19 9.32 11.46 13.67 12.11 11.20 9.14 7.19 T A Se r l r A O O l u v s o l t b i t l h t c l h o e e d ig e r t e c a h r p h U t e a o i a r o . r p r S n t s e g m . e s r e c G a s e o u t n o o f i r t n v n i S t g i t i t n , d e a i c s s t n e e . e o p . c c s . m . o o u . a . s m . r e i . n i t . . . t e . d . . i a . . . e . . . . . c p . s . . . . . c . o . . . ( . . o . l . a . . . i . . u . . g t . . . . i . n . . e c . . . . . n . t a . . . . s . . c . l . . . . . . i . . . . s e . . . . . . . . u s . . . . . . . . b . . . . a . . . . . . . d . . n . . . . . . . i . . d . . . v . . . . . . . . . i . . c . . . s . . . . . o . . i . . . . . o . r . . . . . . . . n p . . . . . . . . o s . . . . . . . . . . r . . . . . . . . . a . . . . . . . . . . t . . . . . . . . . i . . . . . o . . . . . . . . . . n . . . . . . . . . . . . s . . . . . . . . ) . . . . . . 4 5 8 3 1 . . . . . . 8 3 9 1 7 4 1 1 7 0 0 3 1 4 3 3 3 1 1 . . . . . . 6 0 8 0 0 9 1 5 8 9 2 0 1 2 2 2 4 1 1 . . . . . . 0 3 1 4 7 0 1 5 3 6 6 6 1 2 2 2 3 0 . . . . . . 9 0 8 0 8 1 1 9 3 6 9 4 9 4 4 3 1 . . . . . . 0 5 1 0 6 3 3 7 3 3 8 6 1 4 4 4 2 0 . . . . . . 9 3 1 3 5 7 6 8 3 2 3 9 4 9 2 6 1 1 . . . . . . 7 4 8 2 5 9 6 3 7 2 9 8 9 5 2 3 1 . . . . . . 8 8 5 5 5 5 9 9 9 5 6 8 9 3 3 3 . . . . . . 0 7 6 6 8 3 1 1 3 8 6 0 9 4 4 3 1 . . . . . . 3 3 3 4 4 4 3 3 6 8 4 0 4 9 4 3 1 . . . . . . 5 6 6 9 3 6 8 8 3 8 4 4 2 5 5 8 1 . . . . . . 8 1 7 2 3 9 1 9 3 2 0 4 Total operating income.................................................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 O Sa f l f a ic r e i r e s a a n n d d e m wa p g lo e y s. e .. e .. . b .. e .. n ... e .. f . i . t .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 2 . .8 4 9 4 20 3 . . 0 7 9 8 1 3 7 . . 0 0 3 6 1 2 7 . . 6 3 8 6 1 3 9 . . 2 7 5 4 1 3 9 . . 0 1 2 0 1 2 7 . . 8 3 8 2 1 2 7 . . 6 5 5 2 1 2 6 . . 7 01 7 1 2 8 . . 7 6 4 9 1 2 8. . 4 5 1 6 2 3 2. . 5 28 7 I O P A n r l c t T B C l o e c v r i o o u a m e i r t p p s s h r e i i a t t o o e n a o a w r n c l n n e y o f n d : d o p o e r e s x t m r a e p l a v o s o e t i a n n i n a n n s n g e g e d s y l o . o e d . d s . x f . e s e . p . e b p b .. e s a o . e . . n n n . . s . . s . . i k t . . t e u . . s . . s . p . r . . . . . . . e . r . . . . . . . s . e . . . . . . . . m . . . . . . . . . . . . . . . . . i . . . . . . s . . . . . . . . e . . . . . . . . . . s . . . . . . . . . , . . . . . . . . . . . n . . . . . . . . . . . . . . e . . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2 8 5 2 7 . . . . . . 4 3 3 8 2 4 1 2 7 0 4 2 3 1 4 2 2 5 4 . . . . . . 7 3 3 4 3 4 5 2 3 5 3 0 4 1 3 3 1 3 . . . . . . 2 5 4 1 3 9 5 3 6 7 3 4 4 1 3 0 1 5 . . . . . . 2 1 4 8 8 1 8 7 8 4 7 2 3 1 3 1 6 4 1 . . . . . . 3 4 1 8 3 9 1 9 9 4 2 0 3 1 2 3 3 1 7 . . . . . . 3 2 9 7 0 2 5 9 9 0 0 0 4 1 3 3 1 3 . . . . . . 5 1 9 4 6 2 5 5 5 6 7 8 3 1 3 4 1 9 . . . . . . 9 3 5 8 4 1 1 6 3 9 9 0 4 1 5 2 1 3 . . . . . . 2 8 3 4 5 4 1 3 3 6 9 0 3 1 2 3 5 1 5 . . . . . . 1 1 6 2 2 5 1 4 7 4 0 0 3 1 3 2 6 1 6 . . . . . . 5 9 1 0 3 2 6 2 2 9 2 8 3 1 2 4 2 5 5 . . . . . . 0 5 7 1 7 5 1 7 9 3 0 6 Total operating expenses.............................................. 83.89 83.45 82.77 81.80 81.04 80.65 83.26 80.45 82.60 79.29 81.26 86.61 I I A N n n l e c c l t o o o m m s t e h c e e e u r b a r f e i i t t n f e i o c e r r s o e t m a g t x a a e e i x n s ( e n s s a e o n a t r d ) n . l . d b . o . . e s . s . s f e . o e . c . r s . u . e . r ( . . i s . — t . e . i . c e ) .. , u s . . r a . g . i f . a t . t i . e i . e n . r . s . s . t . g a . ( . a l . x o . i . e n . s . s s s .. . e . . ( . . s . . l . . o ) . .. . . s . . . . . . s . . . e . . . . . . s . . . . . . ) . . . . . . - . . . - . . . - . . . . . . - . . . - 1 1 6 2 . . . . 1 0 1 3 1 1 7 2 1 1 - 6 4 .0 . . . 5 2 1 3 5 9 6 1 1 - 7 4 .0 . . . 2 6 7 9 3 2 3 1 1 8 4 . . . . 0 4 2 7 1 9 6 0 1 1 8 4 . . . . 4 9 0 3 5 6 9 7 1 1 - 9 5 .0 . . . 3 3 1 2 5 9 7 1 13 6 . . . 1 5 7 7 6 4 1 1 9 5 . . . . 0 5 5 0 9 5 5 7 1 1 2 7 . . . . 1 1 9 4 5 6 9 0 2 1 - 0 5 .0 . . . 7 3 3 4 1 3 8 1 14 8 . . . 7 4 7 1 8 4 1 1 3 0 . . . . 5 2 3 7 5 2 9 0 Net income.................................................................................. 12.50 14.42 15.26 15.26 14.91 15.54 15.71 13.30 15.67 15.19 11.47 A 110 MEMBER BANKS, 1972 □ MAY 1973 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Rates of return: On securities—Interest and dividends:3 5.27 5.39 5.42 5.43 5.74 5.60 5.65 5.51 5.41 5.68 5.56 5.38 5.75 6.52 6.12 6.22 6.40 6.15 6.27 5.78 5.84 6.19 5.88 6.03 3.78 3.93 3.91 4.14 4.26 4.29 4.15 4.08 4.16 4.25 4.02 4.18 6.77 6.68 6.27 6.89 6.05 6.03 7.21 6.15 6.41 7.21 6.68 5.15 On loans:2 7.19 6.96 6.90 7.29 7.83 7.75 7.05 7.18 7.67 7.54 7.63 8.01 -.28 -.29 -.15 -.17 -.16 -.23 -.17 -.13 -.11 -.19 -.23 -.25 Ratios on selected types of assets: Percentage of total assets: Securities:3 6.55 8.85 10.83 14.46 9.21 10.28 12.40 14.31 14.09 12.16 9.77 8.93 1.52 3.62 3.76 2.98 4.16 4.34 4.65 5.88 3.96 3.36 4.69 3.20 Obligations of States and political subdivisions.......................................... 14.24 17.73 16.19 14.72 13.72 15.54 13.89 13.51 13.62 13.59 14.17 13.16 All other securities.............................................................................................. .64 .96 1.61 .70 .39 .55 1.35 .52 .29 .37 .57 .40 Gross loans2............................................................................................................. 59.46 54.03 54.72 53.60 56.87 50.69 53.50 49.97 54.72 53.48 51.45 57.31 Cash assets............................................................................................................... 14.12 11.73 10.36 11.07 12.47 15.31 11.45 13.22 10.93 14.41 16.20 12.48 Real estate assets.................................................................................................... 1.99 1.60 1.68 1.63 2.12 2.05 1.57 1.65 1.55 1.61 2.01 2.38 Percentage of gross loans:2 Commercial and industrial loans......................................................................... 31.34 25.19 21.27 19.65 24.95 28.82 22.40 20.91 21.86 25.13 33.30 28.03 Loans to farmers..................................................................................................... .39 .77 2.01 2.28 1.97 1.69 4.84 7.22 15.57 19.90 9.50 6.26 Real estate loans..................................................................................................... 30.98 34.83 41.17 35.59 28.19 23.65 36.41 31.71 32.92 16.81 15.01 29.25 Loans to individuals for personal expenditures................................................ 26.12 26.73 26.00 32.70 34.86 33.22 25.90 28.95 23.46 24.62 26.99 27.89 All other loans2....................................................................................................... 11.17 12.48 9.55 9.78 10.03 12.62 10.45 11.21 6.19 13.54 15.20 8.57 Other ratios (per cent): Interest on time and savings deposits to time and savings dep.......................... 4.36 4.34 4.50 4.51 4.75 4.73 4.70 4.76 5.02 4.92 4.95 4.70 Income taxes to net income plus income taxes.................................................... 21.97 12.71 13.01 17.80 21.82 20.41 20.77 22.10 23.41 24.87 20.98 19.44 Time and savings deposits to total deposits.......................................................... 46.68 55.17 62.51 60.84 54.71 50.69 63.20 54.26 63.75 51.32 49.13 58.20 Total capital accts. and reserves to total assets5.................................................. 8.36 8.24 8.49 8.66 8.14 7.92 7.81 8.35 7.62 8.42 8.08 7.23 Number of banks ®............................................................................................................ 215 318 288 447 348 555 915 415 490 795 616 124 1 Excludes minority interest in operating income, if any. 5 Includes capital notes and debentures and all valuation equally important influence on the result. In the ratios based 2 Loans include Federal funds sold and securities purchased reserves. on aggregates presented here, the experience of those banks in under agreements to resell. 6 Excludes one member bank located outside the continental each group whose figures are largest have a much greater in­ 3 Excludes trading-account securities. United States. fluence than that of the many banks with smaller figures. 4 Net losses on loans is the sum of the expense item “pro­ Note.—The ratios in this and the preceding two tables were Ratios based on aggregates show combined results for the vision for loan losses” for banks not on a reserve accounting computed from the dollar aggregates shown in preceding banking system as a whole, and, broadly speaking, are the method plus the excess of losses charged against reserves for tables. Many of these ratios vary substantially from the aver­ more significant for purposes of general analyses of credit losses on loans over recoveries credited to these reserves for age of individual bank ratios, (which will be published in a and monetary problems, while averages of individual ratios banks on a reserve accounting method. subsequent issue) in which each bank’s figures—regardless of are useful primarily to those interested in studying the financial size or amount—are weighted equally and in general have an results of operations of individual banks. MAY 1973 □ MEMBER BANKS, 1972 A 111 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman George W. M itchell J. Dewey Daane Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher Robert C. H olland, 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. K elleher, 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. H olland, Executive Director J. Charles Partee, Director David C. M elnicoff, Deputy Executive Stephen H. Axilrod, Associate Director Director Samuel B. Chase, Associate Director Gordon B. Grimwood, Assistant Director and Lyle E. Gramley, Associate Director Program Director for Contingency Planning Peter M. Keir, Adviser W illiam 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. W illiams, 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. Stockw ell, 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 DIVISION OF INTERNATIONAL FINANCE tCHESTER B. Feldberg, Assistant Secretary Ralph C. Bryant, Director John E. Reynolds, Associate Director LEGAL DIVISION A. B. Hersey, Senior Adviser Thomas J. O’C onnell, General Counsel Robert F. Gemmill, Adviser Paul Gardner, Jr. , Assistant General Counsel Reed J. Irvine,Adviser Pauline B. H eller, Assistant General Counsel Samuel I. Katz, Adviser John N icoll, 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 Ronald G. Burke, Director DIVISION OF SUPERVISION AND REGULATION John N. Kiley, Jr., Associate Director Frederic Solomon, Director W alter A. Althausen, Assistant Director Brenton C. Leavitt, Deputy Director Donald G. Barnes, Assistant Director Frederick R. Dahl, Assistant Director Harry A. Guinter, Assistant Director Jack M. Egertson, 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. M cClintock, Assistant Director E. Maurice McW hirter, Chief Federal Thomas A. Sidman, Assistant Director Reserve Examiner Griffith L. Garwood, Adviser Charles L. M arinaccio, Adviser *On leave of absence. Digitized for FRASER fOn loan from the Federal Reserve Bank of New York. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 113 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER John J. Hart, Assistant Director John Kakalec, Controller John M. Denkler, Assistant Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director Charles L. Hampton, Associate Director DIVISION OF ADMINISTRATIVE SERVICES Glenn L. Cummins, Assistant Director Benjamin R. W. Knowles, Jr., Assistant Director W alter W. Kreimann, Director Henry W. M eetze, Assistant Director Donald E. Anderson, Assistant Director Edward K. O’Connor, Assistant Director John D. Smith, Assistant Director Richard S. W att, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 114 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman John J. Balles J. Dewey Daane George W. M itchell Andrew F. Brimmer Darryl R. Francis Frank E. Morris Jeffrey M. Bucher Robert P. Mayo John E. Sheehan 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 115 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. Boysen 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 0. Meredith Wilson John J. Balles Joseph F. Alibrandi A. B. Merritt Los Angeles......... 90051 Edward A. Sloan Gerald R. Kelly Portland................ 97208 Frank Anderson William M. Brown Salt Lake City ,, ,. 84110 Theodore C. Jacobsen Arthur L. Price Seattle................... 98124 Thomas T. Hirai Paul W. Cavan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 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 December 31, 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 117 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, andGarvy). 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, Meli­ char, 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. March 1973. ERATE FLUCTUATIONS IN HOUSING CON­ STRUCTION, Dec. 1972, 487 pp. $4.00 a copy; OBTAINING THE YIELD ON A STANDARD BOND FROM 10 or more sent to one address, $3.60 each. A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS, by James L. Kichline, P. Michael Laub, and Guy V. G. Stevens. May 1973. 30 pp. STAFF ECONOMIC STUDIES Printed in full in the BULLETIN. Studies and papers on economic and financial subjects that are of general interest in the field (Staff Economic Studies are included in list of of economic research. reprints below.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 118 FEDERAL RESERVE BULLETIN □ MAY 1973 REPRINTS BUSINESS FINANCING BY BUSINESS FINANCE COM­ PANIES. Oct. 1968. 13 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. MANUFACTURING CAPACITY: A COMPARISON OF TWO SOURCES OF INFORMATION, Staff Eco- SEASONAL FACTORS AFFECTING BANK RESERVES. nomic Study by Jared J. Enzler. Nov. 1968. Feb. 1958. 12 pp. 5 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by MONETARY RESTRAINT, BORROWING, AND CAPITAL Stephen H. Axilrod. Oct. 1961. 17 pp. SPENDING BY SMALL LOCAL GOVERNMENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen Axilrod. Sept. 1962. 28 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ nomic Study by Frank de Leeuw and Edward MEASURES OF MEMBER BANK RESERVES. July Gramlich. June 1969. 20 pp. 1963. 14 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL CHANGES IN BANKING STRUCTURE, 1953-62. Sept. BANKS. Aug. 1969. 5 pp. 1963. 8 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. REVISION OF BANK DEBITS AND DEPOSIT TURN­ 20 pp. OVER SERIES. Mar. 1965. 4 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ TIME DEPOSITS IN MONETARY ANALYSIS, Staff CIAL BANKING. Mar. 1970. 16 pp. Economic Study by Lyle E. Gramley and Sa­ muel B. Chase, Jr. Oct. 1965. 25 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. May 1970. 4 pp. RESEARCH ON BANKING STRUCTURE AND PER­ FORMANCE, Staff Economic Study by Tynan MEASURES OF SECURITY CREDIT. Dec. 1970. 11 Smith. Apr. 1966. 11 pp. pp. A REVISED INDEX OF MANUFACTURING CAPACITY, MONETARY AGGREGATES AND MONEY MARKET Staff Economic Study by Frank de Leeuw with CONDITIONS IN OPEN MARKET POLICY. Feb. Frank E. Hopkins and Michael D. Sherman. 1971. 26 pp. Nov. 1966. 11 pp. BANK FINANCING OF MOBILE HOMES. Mar. 1971. REVISED SERIES ON COMMERCIAL AND INDUS­ 4 pp. TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS EVIDENCE ON CONCENTRATION IN BANKING MAR­ TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 KETS AND INTEREST RATES, Staff Economic pp. Study by Almarin Phillips. June 1967. 11 pp. INTEREST RATES, CREDIT FLOWS, AND MONETARY THE PUBLIC INFORMATION ACT—ITS EFFECT ON AGGREGATES SINCE 1964. June 1971. 16 pp. MEMBER BANKS. July 1967. 6 pp. TWO KEY ISSUES OF MONETARY POLICY. June INTEREST COST EFFECTS OF COMMERCIAL BANK 1971. 4 pp. UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. BANK RATES ON BUSINESS LOANS—REVISED SERIES. June 1971. 10 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND LOCAL INDUSTRIAL PRODUCTION—REVISED AND NEW GOVERNMENTS IN 1966. July 1968. 30 pp. MEASURES. July 1971. 26 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. REVISED MEASURES OF MANUFACTURING CAPAC­ 18 pp. ITY UTILIZATION. Oct. 1971. 3 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 119 REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 YIELDS ON NEWLY ISSUED CORPORATE BONDS. pp. Sept. 1972. 2 pp. PLANNED AND ACTUAL LONG-TERM BORROWING RECENT ACTIVITIES OF FOREIGN BRANCHES OF BY STATE & LOCAL GOVERNMENTS. Dec. 1971. U.S. BANKS. Oct. 1972. 11 pp. 11 pp. REVISION OF CONSUMER CREDIT STATISTICS. Oct. ASSETS AND LIABILITIES OF FOREIGN BRANCHES 1972. 21 pp. OF U.S. BANKS. Feb. 1972. 16 pp. SURVEY OF FINANCE COMPANIES, 1970. Nov. WAYS TO MODERATE FLUCTUATIONS IN THE CON­ 1972. 15 pp. STRUCTION OF HOUSING. Mar. 1972. 11 pp. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 OPEN MARKET OPERATIONS AND THE MONETARY AMENDMENTS. Dec. 1972. 13 pp. AND CREDIT AGGREGATES—1971. Apr. 1972. 23 pp. EVOLUTION OF THE PAYMENTS MECHANISM. Dec. 1972. 4 pp. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. 1972. 5 pp. REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK RESERVES AND DEPOSITS. Feb. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 1973. 19 pp. June 1972. 12 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ SOME ESSENTIALS OF INTERNATIONAL MONETARY CHANGE OPERATIONS. Mar. 1973. 22 pp. REFORM. June 1972. 5 pp. DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. CHARACTERISTICS OF FEDERAL RESERVE BANK Apr. 1973. 13 pp. DIRECTORS. June 1972. 10 pp. CHANGES IN TIME AND SAVINGS DEPOSITS AT BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ COMMERCIAL BANKS, JULY 1972-JAN. 1973. Apr. OVER—REVISED SERIES. July 1972. 5 pp. 1973. 15 pp. RECENT REGULATORY CHANGES IN RESERVE RE­ STATE AND LOCAL BORROWING ANTICIPATIONS QUIREMENTS AND CHECK COLLECTION. July AND REALIZATIONS. Apr. 1973. 4 pp. 1972. 5 pp. FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER BANKING AND MONETARY STATISTICS, 1971. Se­ OF 1973. May 1973. 10 pp. lected series of banking and monetary statistics for 1971 only. Feb., Mar., and July 1972. 20 YIELDS ON RECENTLY OFFERED CORPORATE pp. BONDS. May 1973. 2 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 11 l-A hguorht 4-A segap o t era secnerefeR( A 120 FEDERAL RESERVE BULLETIN □ MAY 1973 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 31, 33 Demand deposits—Continued Agricultural loans of commercial banks, 22, 24 Subject to reserve requirements, 17 Arbitrage, 93 Turnover, 14 Assets and liabilities (See also Foreigners): Deposits (See also specific types of deposits): Banks, by classes, 18, 22, 23, 24, 37 Accumulated at commercial banks for payment of Federal Reserve Banks, 12 personal loans, 30 Nonfinancial corporations, current, 48 Banks, by classes, 18, 23, 27, 37 Automobiles: Euro-dollars, 88 Consumer instalment credit, 54, 55, 56 Federal Reserve Banks, 12, 13, 88 Production index, 58, 59 Postal savings, 23 Subject to reserve requirements, 17 Bank credit proxy, 17 Discount rates (See Interest rates) Bankers’ balances, 23, 26 Discounts and advances by Reserve Banks (See Loans) (See also Foreigners, claims on, and liabilities to) Dividends, corporate, 48 Banks for cooperatives, 38 Dollar assets, foreign, 75, 81 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Earnings and hours, manufacturing industries, 65 Yields and prices, 34, 35 Employment, 62, 64, 65 Branch banks: Euro-dollar deposits in foreign branches of U.S. banks, 88 Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Farm mortgage loans, 49, 50 Brokerage balances, 85 Federal agency obligations, 11, 12, 13, 14 Business expenditures on new plant and equipment, 48 Federal finance: Business indexes, 62 Receipts and outlays, 40, 41 Business loans (See Commercial and industrial loans) Treasury operating balance, 40 Federal funds, 7, 22, 24, 28, 33 Capacity utilization, 62 Federal home loan banks, 38, 39, 51 Capital accounts: Federal Home Loan Mortgage Corporation, 53 Banks, by classes, 18, 23, 28 Federal Housing Administration, 49, 50, 51, 52, 53 Federal Reserve Banks, 12, 13 Federal intermediate credit banks, 38, 39 Central banks, 92, 94 Federal land banks, 38, 39 Certificates of deposit, 28 Federal National Mortgage Assn., 38, 39, 52 Coins, circulation, 15 Federal Reserve Banks: Commercial and industrial loans: Condition statement, 12 Commercial banks, 17, 22, 31 U.S. Govt, securities held, 4, 12, 14, 42, 43 Weekly reporting banks, 24, 29 Federal Reserve credit, 4, 6, 12, 14 Commercial banks: Federal Reserve notes, 12, 13, 15 Assets and liabilities, 17, 18, 22, 23, 24 Federally sponsored credit agencies, 38, 39 Consumer loans held, by type, 55 Finance companies: Deposits at, for payment of personal loans, 30 Loans, 24, 54, 55, 57 Loans sold outright, 31 Paper, 31, 33 Number, by classes, 18 Financial institutions, loans to, 22, 24 Real estate mortgages held, by type, 50 Float, 4 Commercial paper, 31, 33 Flow of funds, 70 Condition statements (See Assets and liabilities) Foreign: Construction, 62, 63 Currency operations, 11, 12, 13, 75, 81 Consumer credit: Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Instalment credit, 54, 55, 56, 57 Exchange rates, 91 Noninstalment credit, by holder, 55 Trade, 73 Consumer price indexes, 62, 66 Foreigners: Consumption expenditures, 68, 69 Claims on, 82, 83, 88, 89, 90 Corporations: Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Profits, taxes, and dividends, 48 Security issues, 46, 47 Security yields and prices, 34, 35 Gold: Cost of living (See Consumer price indexes) Certificates, 12, 13, 15 Currency and coin, 5, 9, 23 Earmarked, 88 Currency in circulation, 5, 15, 16 Net purchases by United States, 74 Customer credit, stock market, 36 Production, 95 Reserves of central banks and govts., 94 Debits to deposit accounts, 14 Stock, 4, 75 Debt (See specific types of debt or securities) Government National Mortgage Assn., 52 Demand deposits: Gross national product, 68, 69 Adjusted, commercial banks, 14, 17, 23 Banks, by classes, 18, 23, 27 Hours and earnings, manufacturing industries, 65 Ownership by individuals, partnerships, and Housing permits, 62 corporations, 30 Housing starts, 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 121 Income, national and personal, 68, 69 Production, 58-61, 62 Income and expenses: Profits, corporate, 48 Insured commercial banks, 96 Member banks, 96-111 Real estate loans: Industrial production index, 58-61, 62 Banks, by classes, 22, 25, 37, 50 Instalment loans, 54, 55, 56, 57 Delinquency rates on home mortgages, 53 Insurance companies, 37, 42, 43, 50, 51 Mortgage yields, 35, 51, 52, 53 Insured commercial banks, 20, 22, 30, 96 Type of holder and property mortgaged, 49-53 Interbank deposits, 18, 23 Reserve position, basic, member banks, 7 Interest rates: Reserve requirements, member banks, 9 Business loans by banks, 32 Reserves: Federal Reserve Banks, 8 Central banks and govts., 94 Foreign countries, 92, 93 Commercial banks, 23, 26, 28 Money market rates, 33 Federal Reserve Banks, 12, 13 Mortgage yields, 51, 52, 53 Member banks, 5, 6, 17, 23 Prime rate, commercial banks, 32 U.S. reserve assets, 75 Time and savings deposits, maximum rates, 10 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Yields, bond and stock, 34 Retail credit, 54 International capital transactions of U.S., 76-90 Retail sales, 62 International institutions, 74, 75, 92, 94 Inventories, 68 Saving: Investment companies, issues and assets, 47 Flow of funds series, 70 Investments (See also specific types of investments): National income series, 68 Banks, by classes, 18, 22, 25, 26, 37 Savings and loan assns., 38, 43, 51 Commercial banks, 17 Savings deposits (See Time deposits) Federal Reserve Banks, 12, 14 Savings institutions, principal assets, 37, 38 Life insurance companies, 37 Securities (See also U.S. Govt, securities): Savings and loan assns., 38 Federally sponsored agencies, 38, 39 International transactions, 84, 85 Labor force, 64 New issues, 45, 46, 47 Life insurance companies (See Insurance companies) Silver coin, 15 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 13, 72, 75 Banks, by classes, 18, 22, 24, 37 State and local govts.: Commercial banks, 17, 18, 22, 24, 29, 31, 32 Deposits, 23, 27 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Holdings of U.S. Govt, securities, 42, 43 Insurance companies, 37, 50, 51 New security issues, 45, 46 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Ownership of securities of, 22, 26, 37 Savings and loan assns., 38, 51 Yields and prices of securities, 34, 35 State member banks, 20, 30 Stock market credit, 36 Manufacturers: Stocks: Capacity utilization, 62 New issues, 46, 47 Production index, 59, 62 Yields and prices, 34, 35 Margin requirements, 10 Member banks: Tax receipts, Federal, 41 Assets and liabilities, by classes, 18, 22 Time deposits, 10, 17, 18, 23, 27 Borrowings at Federal Reserve Banks, 6, 12 Treasury cash, Treasury currency, 4, 5, 15 Income and expenses, 96-111 Treasury deposits, 5, 12, 13, 40 Number, by classes, 18 Treasury operating balance, 40 Reserve position, basic, 7 Reserve requirements, 9 Unemployment, 64 Reserves and related items, 4, 6, 17 U.S. balance of payments, 72 Mining, production index, 59, 61 U.S. Govt, balances: Mobile home shipments, 63 Commercial bank holdings, 23, 27 Money market rates (See Interest rates) Member bank holdings, 17 Money stock and related data, 16 Treasury deposits at Reserve Banks, 5, 12, 13, 40 Mortgages (See Real estate loans and Residential mortgage U.S. Govt, securities: loans) Bank holdings, 18, 22, 25, 37, 42, 43 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 44 Mutual savings banks, 27, 37, 42, 43, 50 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 Foreign and international holdings, 12, 81, 84, 88 National banks, 20, 30 International transactions, 81, 84 National defense expenditures, 41, 68 New issues, gross proceeds, 46 National income, 68, 69 Open market transactions, 11 Nonmember banks, 20, 22, 23, 30, 96 Outstanding, by type of security, 42, 43, 45 Ownership, 42, 43 Open market transactions, 11 Yields and prices, 34, 35 United States notes, 15 Payrolls, manufacturing index, 62 Utilities, production index, 59, 61 Personal income, 69 Postal savings, 23 Veterans Administration, 49, 50, 51, 52, 53 Prices: Consumer and wholesale commodity, 62, 66 Weekly reporting banks, 24 Security, 35 Prime rate, commercial banks, 32 Yields (See Interest rates) )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 111-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^ C hicago j OmaJta* Cincinnati cW% It.Lcmis 'CfuirCotteJ Oklahoma City ^ttanta Dallas Jiouston tan Antonio* Miami January 1972 'Drawn lyUW. Qatvin, Cart ☆ (p THE FEDERAL RESERVE SYSTEM ) * q ALAS KA HAWAII L e g e n d Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System © Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis