Federal Reserve Bulletin, 1973-06

Federal Reserve B ulletin BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 JUNE 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 6 □ VOLUME 59 □ JUNE 1973 383 Federal Fiscal Policy, 1965-72 403 Staff Economic Studies: Summary 405 Open Market Operations in 1972 417 Some Problems of Central Banking 420 Statements to Congress 433 Membership of the Board of Governors of the Federal Reserve System, 1913-73 435 Record of Policy Actions of the Federal Open Market Committee 445 Law Department 478 Announcements 480 Industrial Production 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 106 Board of Governors and Staff A 108 Open Market Committee and Staff; Federal Advisory Council A 109 Federal Reserve Banks and Branches A 110 Federal Reserve Board Publications A 117 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Joseph R. Coyne Robert Solomon Ralph C. Bryant Kenneth B. Williams Lyle E. Gramley Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial 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

Federal Fiscal Policy, 1 9 6 5 -7 2 The Federal budget for the fiscal year beginning in July signals a shift in fiscal policy, characterized by a determined effort to limit the growth in Federal expenditures. In addition, during the past year various reforms designed to improve legislative control over total appropriations and outlays have been actively considered by the Congress. This article reviews recent experience in fiscal policy covering the period beginning with 1965. The first part of the article briefly examines the over-all trends in expenditures and receipts for the entire period with particular emphasis on composition. In the second part Federal fiscal changes in the 1965-72 period are discussed in the context of economic stabilization. (For a detailed analysis of developments in the 1960-68 period, see the B u lletin for September 1968, pages 701-18.) TRENDS IN In the past decade the Federal Government has taken on many BUDGET ACTIVITY new responsibilities that have resulted in sharp changes in the size and composition of budget spending. At the same time a large number of tax changes have been implemented. These changes, which have included two major reforms of personal and corporate income taxes, as well as numerous increases in payroll taxes to finance social security, have led to a significant redistribution of tax burdens. The modifications in budget composition have gener­ ally reflected the evolution of national priorities, in particular the concern for the international situation and for the development of domestic social programs. In some instances the rapid changes in budget priorities were at odds with the needs of economic stabili­ zation; this was particularly evident in the unanticipated increase in defense spending related to the Vietnam war. However, much more often than in the past, Federal budget proposals were deliber­ ately designed to stabilize economic activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 FEDERAL RESERVE BULLETIN □ JUNE 1973 On a unified budget basis a Federal deficit was realized in all but one fiscal year (1969) in the 1965-73 period and in three of those years the deficit exceeded $20 billion. For the most part the deficits in this period came about because of the rapid growth in outlays, averaging 10.1 per cent a year in the 1965-72 period, and because of a series of tax cuts beginning in 1962. However, the considerable deficits recorded in 1971 and 1972 were attributa­ ble largely to the sluggish recovery from the 1970 recession. In the official full-employment budget (unified basis), which abstracts from cyclical changes in income, there was a surplus or a near-bal­ ance in 4 years during the 1965-72 period. The Federal debt. As shown in Table 1, the unified budget deficit is the principal determinant of net Treasury borrowing, although some differences arise from the change in the Treasury cash balance and other technical factors. However, the total debt outstanding (line G of Table 1) increased more than Treasury borrowing from the public because of Federal trust fund surpluses that were invested in Federal debt instruments. The trust funds, which are included in the unified budget, recorded surpluses each year in the 1965-73 period; these surpluses greatly reduced the size of the over-all budget deficits and of Treasury net borrowing from the public, and they were the major factor in the near-doubling of Federal debt held by Federal Government accounts. TABLE 1 UNIFIED BUDGET TOTALS Fiscal year figures, in billions of dollars Line Item 1965 1966 1967 1968 1969 1970 1971 1972 1973e 1974e A. Total receipts ........................... 116.8 130.9 149.6 153.7 187.8 193.7 188.4 208.6 232.0 266.0 B. Total outlays ............................ 118.4 134.7 158.3 178.8 184.5 196.6 211.4 231.9 249.8 268.7 C. Surplus, or deficit ( — ) ... -1.6 -3.8 -8.7 -25.2 3.2 -2.8 -23.0 -23.2 -17.8 -2.7 D. Treasury net borrowing from the public ............................ 4.1 3.1 2.8 23.1 -11.1 5.4 19.4 19.4 19.2 5.5 Composition of surplus, or deficit ( — ): E. Federal funds deficit ......... -3.9 -5.1 -15.0 -28.4 -5.5 -13.1 -29.9 -29.2 -27.9 -18.8 F. Trust fund surplus ............ 2.2 1.3 6.2 3.2 8.7 10.3 6.8 5.9 10.1 16.1 Federal debt:1 G. Total ..................................... 326.6 333.3 344.7 372.0 368.0 383.4 410.3 438.2 2470.0 2490.5 (change) ................................ (6.3) (6.7) (11.4) (27.3) (-4.0) (15.4) (26.9) (27.9) (31.8) (20.5) Major holders: H. Federal Govt, accounts ... 61.5 64.8 73.8 79.1 87.7 97.7 105.1 113.6 3120.0 n.a. I. Federal Reserve .................. 39.1 42.2 46.7 52.2 54.1 57.7 65.5 71.5 374.4 n.a. J. Foreign and international accounts ............................ 15.7 15.4 14.7 12.9 11.1 14.8 32.7 50.0 363.1 n.a. K. Other publicly held debt .. 210.3 210.9 209.5 227.8 215.1 213.2 207.0 203.1 3212.9 n.a. 1 End-of-year figures; includes both public debt securities and budget agency issues. 2Excludes non-interest-bearing public debt securities issued to the International Monetary Fund and international lending organizations ($825 million in 1972), which are included in figures for previous years. 3Amount outstanding, Mar. 31, 1973. e Estimates from Mid-Session Review of the 1974 Budget, issued on June 1, 1973. n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 385 Another part of the Treasury debt is held by the Federal Reserve System, but this portion is conventionally included in debt held by the public. Also, during this period the proportion of the Federal debt held by foreign accounts increased greatly. Due to the rapid accumulation of Federal debt held by Federal Government ac­ counts, by the Federal Reserve, and by foreign accounts, there has been very little increase over this period in the holdings of private domestic economic units, including State and local govern­ ments. Treasury borrowing established new post-World-War-II records in fiscal years 1968, 1971, and 1972, but a large proportion of the debt in the two latter years was absorbed by Federal trust funds and by foreign central banks, which accumulated dollar reserves resulting from large deficits in the U.S. balance of payments. At the end of March 1973 more than 22 per cent of the outstanding publicly held debt (other than that held by the Federal Reserve) was in the hands of foreigners. Size of Federal sector. One of the most controversial issues in recent years involves control of total Federal spending. The changing composition of the budget has tended to increase the importance of “relatively uncontrollable” budget items—those open-ended spending programs with permanent authorization (such as veterans’ benefits, interest, social security, and medicare) and spending under prior-year contracts and obligations. About 75 per cent of all outlays are classified as “relatively uncontrollable” in the budget for fiscal 1974, and about two-thirds of the controllable portion is for national defense. This situation leaves little scope for cutbacks. Thus when a special situation such as the Vietnam war arises or when new initiatives are proposed, the result tends to be an acceleration in the growth of spending and an increase in the relative size of the Federal sector. The unified budget concept adopted in 1968 includes (net) lending of budget agencies in total outlays. However, a number of lending agencies have since sold stock to the public and have become Government-sponsored agencies. As a result their lending activities are no longer reflected in the budget. An analysis of the growth of the Federal sector in the 1965-72 period should take into account the increased importance of operations of these non­ budget agencies, figures for which are shown in Table 2. There has also been a considerable increase in a related nonbud­ get activity—Federal guarantee of private loans. In addition to increases in nonbudget activities, year-to-year growth in outlays has been affected by variations in asset sales and proprietary receipts, which are recorded as negative items in unified budget outlays. The planned increase in these transactions in fiscal year 1973 (Table 2) is particularly noteworthy. Agency lending and most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 FEDERAL RESERVE BULLETIN □ JUNE 1973 TABLE 2 BUDGET AND NONBUDGET ACTIVITIES—NET LENDING AND TRANSACTIONS IN ASSETS Fiscal year totals, in billions of dollars Item 1965 1966 1967 1968 1969 1970 1971 1972 1973e 1974e Budget outlay activity: Net lending total ............................. 1.2 3.8 5.1 6.0 1.5 2.1 1.1 1.1 O O Financial asset sales2 ................. .9 .7 .9 .9 .9 1.3 2.2 2.3 5.5 4.0 Proprietary receipts including real asset sales2 ................................... n.a. n.a. 4.9 4.7 4.2 3.8 4.9 4.5 10.8 8.3 Nonbudget activity: Direct loans, sponsored agencies3 ....................................... 4.3 10.6 1.3 4.4 10.7 12.2 Increase in outstanding guaranteed and insured loans ....................... 4.9 5.6 3.7 8.6 9.7 8.5 15.0 18.8 20.0 17.6 'The separate lending account for budget agencies has been dropped from the budget. 2Recorded as negative items in the unified budget outlay account. ^Represents loans by the Federal National Mortgage Association, Federal home loan banks. Federal intermediate credit banks, banks for cooperatives. Federal land banks, the Federal Home Loan Mortgage Corporation (beginning fiscal year 1970) and the Export-Import Bank (beginning fiscal year 1972). Activities of the Export-Import Bank have been removed from budget outlays by statute even though this institution is Federally owned. eEstimate from The Budget of the United States Government, Fiscal Year 1974, issued in January 1973. n.a. Not available. asset transactions are excluded from the national income accounts (NIA) measure of Federal activity. Discussions of the size of the Federal sector usually relate the government sector to various components of gross national product and therefore employ NIA concepts. How changes in size of FEDERAL ACTIVITY relate to i total economic activity PER CENT 24 PURCHASES “Expenditures” are total Federal expenditures as a per cent of full-employment GNP; “Purchases” are Federal purchases of goods and services as a per cent of full-employment GNP. NIA data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 387 Federal proportion of GOVERNMENT PURCHASES declines in recent years PER CENT Purchases of goods and services (Federal, State, and local) as shown in NIA, 1958 dollars. In the 1965-72 period the size of the Federal sector increased rapidly. Federal expenditures including transfers and grants (NIA basis) as a percentage of full-employment GNP rose from about 17.5 per cent in the first half of 1965 to about 20.3 per cent in calendar year 1972. During 1968, at the height of the Vietnam war build-up, Federal spending exceeded 21 per cent of GNP (Chart 1). The recently proposed program (fiscal 1974 budget) of the administration to restrict growth in spending should reduce this ratio in 1973 but not to the level that existed prior to the Vietnam war build-up. Total resources absorbed directly by the Federal sector—reflected in purchases of goods and services—have declined relative to full-employment GNP. The proportion for defense purchases has been declining since the peak of the Vietnam activity, and this ratio is now at a lower level than in 1965. Thus Federal Government activity increasingly reflects transfers of funds to individuals and State and local governments rather than the direct purchase of goods and services in the marketplace. It is interesting to note that Federal purchases of goods and services have declined as a proportion of total government purchases (Federal, State, and local)—from 50.5 per cent in 1965 to 43.1 per cent in 1972 (Chart 2). Functional classification of outlays. The functional classifica­ tion of Federal unified budget outlays shown in Chart 3 indicates significant changes in the composition of spending in the 1965-74 period. As already mentioned, the proportion of outlays for national defense has declined sharply since 1968 and this ratio is now significantly less than in the pre-Vietnam period; however, in absolute terms outlays for defense were nearly $29 billion higher in fiscal year 1972 than in fiscal year 1965. The most important relative gains during this period were in outlays for income security, mainly social security and public assistance, and for health, which includes the medicare program that went into effect in July 1966. Outlays for income security, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 FEDERAL RESERVE BULLETIN □ JUNE 1973 Functional classification of budget outlays shows increasing importance of SOCIAL PROGRAMS INCOME SECURITY COMMERCE & TRANSPORTATION NATIONAL DEFENSE ;5 ■ 1964 1966 1968 1970 1972 1974 Fiscal year data from The Budget of the United States Government, Fiscal Year 1974 (Jan. 1973). which increased from 21.7 per cent of the total in fiscal year 1965 to 30.4 per cent (budget estimate) in fiscal 1973, are expected to exceed outlays for national defense for the first time in the fiscal year beginning this July. Another large relative increase, shown in the chart, was for education and manpower, which increased from 1.9 per cent of outlays in fiscal year 1965 to 4.2 per cent in fiscal year 1972. The largest component of the income security category—social security benefit payments—has risen very rapidly since 1965 be­ cause of statutory increases in benefits, expanded coverage, and growth in the number of eligible beneficiaries. In the past, social security benefits did not keep pace with inflation, but in the 1965-72 period increases in benefits greatly exceeded increases in the con­ sumer price index. A unique feature of the latest social security legislation is that it provides automatic cost-of-living benefit in­ creases, beginning in 1975. These changes in composition reflect the higher priority placed by the Government on social programs. And in turn there is some evidence that they have important stabilization consequences. Eco­ nomic theory, supported by most large econometric models, indi­ cates that Federal expenditures that directly absorb resources, such as procurement of defense goods, have a larger impact on aggregate economic activity than do Federal transfers. For example, according to a recent simulation using the Social Science Research Coun­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 389 cil-Massachusetts Institute of Technology-University of Pennsyl­ vania (SMP) quarterly econometric model, alternative $5 billion expenditure cuts would affect GNP by the amounts shown in Table 3 below. TABLE 3 CUMULATIVE EFFECTS ON NOMINAL GNP OF ALTERNATIVE $5 BILLION CUT IN FEDERAL SPENDING GNP impact, in billions of dollars Type of expenditure Q2 Q4 Q6 QB Nondefense goods .................................................. -6.9 -9.4 -10.3 -10.1 Military prime contracts1 .................................... -2.7 -6.3 - 9.1 -10.0 Federal employment ............................................. -9.0 -9.9 -10.2 -10.6 Federal compensation .......................................... -7.5 -8.4 - 8.6 - 8.5 Transfers to persons2 ............................................ -2.8 -4.4 - 5.4 - 6.0 Categorical grants .................................................. -5.2 -9.2 -11.9 -13.4 1In order to calculate the impact of the change in military prime contracts, it was necessary to assume a relationship describing the rate at which prime contract awards resulted in Federal purchases. 2Excludes unemployment insurance payments, which are endogenous in the model. Note—Initial conditions affect the measured multiplier in the model. This simulation, undertaken in December 1972, began with the first quarter of 1973, with actual values for the fourth quarter of 1972 as they were then perceived. In estimating these effects, monetary policy was assumed to be managed in such a way that the money stock was unaffected by changes in Federal expenditures. In this simulation the six-quarter expenditure multipliers (GNP effect -J- $5 billion) ranged from about 1.0 to nearly 2.5. It should be emphasized that the results are conjectural in that they depend on the particular structure of the model and on experience during its period of estimation. The high multiplier for categorical grants reflects in part the importance of matching highway grants during the period when the equation was estimated. The effects of general revenue sharing would clearly be lower than those of categorical grants, since general revenue sharing does not involve matching requirements, nor is the Federal payment directly related to the disbursing activity of the State or local authority as is the general case with categorical grants. The smaller impact of transfers is especially noteworthy, since transfers have become a much larger component of spending. In the model’s consumption equations, transfer payments enter as a component of disposable personal income and have the same savings rate as other types of disposable income. If savings out of transfer payments are less than savings out of other income, the transfer expenditure multiplier would be higher. Assuming that the relative impacts reflected in these expenditure-multiplier estimates are roughly applicable for the 1965-72 period, it appears that the altered composition of Federal spending has resulted in a significant reduction in the impact on GNP of a (representative) dollar change in Federal spending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 FEDERAL RESERVE BULLETIN □ JUNE 1973 Composition of receipts. The composition of Federal receipts, shown in Chart 4, has also changed markedly since 1965. Excise taxes have become less significant. Taxes on corporate profits have also declined in relative importance, in part because of accelerated depreciation and reductions in tax rates and in part because of a reduction in the corporate share of total income. At the same time, the proportion of total receipts accounted for by social insurance taxes has greatly increased. The proportion of taxes derived from personal income taxes rose sharply with the imposition of the surcharge in 1968; it reached a peak of 46.7 per cent in fiscal year 1970 and has gradually declined since enactment of the tax law changes in 1969 and 1971. Despite the huge individual income tax cuts since 1964, which are estimated to reduce 1973 tax liabilities by about $36 billion, individual income taxes still produce a larger proportion of revenues than in 1965. Because of the progressive feature of personal income taxes, the growth of personal tax receipts generally outpaces economic growth unless tax rates are reduced. Most of the recent changes in the income tax law are now fully effective; thus—assuming no further changes—personal tax receipts are expected to rise more rapidly than aggregate personal income in coming years. Chrono­ logical listings of selected tax law changes since 1965 appear in Tables 6 and 7 on pages 401—02. It is difficult to judge whether the net result of these tax changes has increased or reduced the automatic stabilizing effect of the budget. The conventional view would be that the increased reliance 4 | Components of TOTAL RECEIPTS vary in importance PER CENT ALL OTHER EXCISE TAXES SOCIAL INSURANCE TAXES CORPORATE INCOME TAXES INDIVIDUAL INCOME TAXES 1964___________1966 1968 1970 1972 1974 Fiscal year data from The Budget of the United States Government, Fiscal Year 1974 (Jan. 1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 391 on social insurance taxes and the decreased reliance on corporate profits taxes have reduced the automatic stabilizing effect of the budget. Equally difficult to determine is the distributional impact of these tax changes. Increased reliance on social insurance taxes is generally viewed as placing more burden on regressive taxes, but the large increases in the social security wage base during the period may have moderated this effect. And, of course, the distri­ bution of benefit payments also needs to be considered in evaluating the progressivity of the entire social security system. AL POLICY AND Change in the net surplus or deficit of the full-employment budget STABILIZATION provides a convenient summary indicator of the extent to which discretionary fiscal policy is moving toward contraction or expan­ sion. The difference between the full-employment budget position and the actual budget position reflects the additional automatic stabilizing effect of the budget associated with cyclical develop­ ments. Although the full-employment measure, like most summary measures, has a number of shortcomings that will be discussed later, it provides a starting point for analyzing the effects of fiscal policy on economic stabilization. The behavior of the actual and full-employment surplus or deficit (NIA basis) is sketched in Chart 5. Generally speaking, NIA accounts are preferred in measuring fiscal stimulus. Furthermore, the full-employment budget on a unified basis is available only by fiscal years. The years from 1965 to 1972 contain three successive periods that, in a rough way, mark turning points in realized fiscal stimulus. In the 1965-68 period the full-employment budget shifted from a surplus of $7.2 billion (at annual rates, NIA basis) in the first half of 1965 to a deficit of nearly $15 billion by the first half of 1968. This highly stimulative period of fiscal policy was followed FISCAL STIMULUS is recorded in two budget concepts BILLIONS OF DOLLARS I 20 FULL-EMPLOYMENT SURPMJS/OEFICIT ACTUAL SURPLUS/DEFICIT i f i i i t 1965 1967_________1969_________1971________731 “Full-employment" is as computed by the Federal Reserve Bank of St. Louis. “Actual' is Federal sector NIA account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 FEDERAL RESERVE BULLETIN □ JUNE 1973 by a period of restriction. The full-employment budget shifted toward surplus by more than $27 billion from the first half of 1968 to the second half of 1969. During 1970, the full-employment surplus, while shifting towards deficit, still averaged a sizable $7.6 billion surplus. The third period, from 1971 to mid-1973, continued and enlarged the shift toward stimulus. Fiscal year 1974 could mark the beginning of a new period; the budget calls for fiscal policy to move toward restriction as expenditures are planned to increase much more slowly than in the two preceding years (Chart 6). While these large shifts in the full-employment budget probably give a correct general indication of the underlying influence of fiscal policy on the economy, it should be realized that the fullemployment measure cannot tell the full story regarding shifts in fiscal stimulus or restrictiveness. In the 1965-68 period, for example, the shift toward fiscal stimulus probably occurred earlier than shown by the course of the full-employment deficit because Federal defense spending was rising rapidly and the actual stimulus often began when orders were placed rather than when Federal spending was recorded. This shortcoming arises in part from the practice of recording procure­ ment of national defense goods in NIA expenditures at the time the goods are delivered rather than at the time the goods are ordered and produced. Prior to delivery, output of such goods is included in the business inventories component of GNP and is not identified as production of the Government sector. Clearly this consideration is important in identifying the timing of fiscal stimulus during the Vietnam war build-up, and it may account, in part, for the failure in 1965 to recognize the degree of stimulus stemming from the war effort. The Department of Commerce series on “Defense Department military prime contract awards for work performed in the United States” records a sharp rise in 1965, two or three quarters before the increase became evident in defense purchases. Another shortcoming of the full-employment budget is that it gives equal weight to each dollar of change in revenues and expenditures regardless of the source of the change. In the 1965-68 period, substantial changes occurred in the composition of spend­ ing. There is evidence that some fiscal indicators, such as the full-employment budget, underestimated the change in fiscal stim­ ulus during the Vietnam war build-up because of the increased share of defense spending in total Federal outlays. The simulation results shown in Table 3 suggested that a shift in spending compo­ sition toward a greater share of direct Federal purchases would have a more stimulative effect than the same amount of spending if transfer payments and direct Federal purchases were expanding evenly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 393 To assess this situation, a SMP model simulation was used to approximate a fiscal situation in which the levels of total Federal spending and all other exogenous variables were those that actually occurred from mid-1965 to the end of 1968, but the ratios of major components of spending to the total were held at the initial values existing in the third quarter of 1965. The results were compared with a control simulation in which all the exogenous variables, including the components of Federal spending, were entered at their actual values. TABLE 4 RESULTS OF MODEL SIMULATION HOLDING CONSTANT THE RELATIVE SHARE OF MAJOR EXPENDITURE COMPONENTS BEGINNING IN 1965-Q31 Billions of dollars, selected quarters Categories affected 1966 1967 1968 Q2 Q4 Q2 Q4 Q2 Q4 Constant-share simulation less actual-share simulation GNP. Current dollars ........... -5.0 1958 dollars ................ -2.6 1 1 O' r^’ -15.5 -20.4 -23.1 -5.3 -3.8 2.4 1 (N 00 — ;r- 3-month Treasury bill rate .......................... — .2 -.4 -.4 -.6 -.8 -.9 Unemployment rate .7 1.2 1.5 1.5 1.3 1.2 Selected values used in constant-share simulation less actual values Purchases of goods and services3 ....................... - 1.4 - 1.2 -3.3 -2.8 - 1 5 -.7 Armed Forces4 ................ -.3 -.6 -.7 -.8 -.8 -.8 Military prime contracts .................. -7.4 -4.3 -4.4 -2.4 -1.7 -2.3 Transfers to persons __ 3.2 1.6 1.0 1.8 -.6 -1.0 Employee compensation -.6 .2 .7 .4 1.3 1.1 ’The ratio of defense to total expenditures reached a low point in 1965-Q3. 2The ratio of defense to total spending reached a peak in 1967-Q3 and declined thereafter. 3Includes defense and nondefense purchases. 4Millions of persons. As shown in Table 4, the simulation indicated that GNP and price inflation would have been substantially smaller given an unchanged composition of expenditures. Initially, compositional changes have a purely fiscal effect on GNP because Treasury borrowing and the Federal deficit are not directly affected. Of course, the impact of the compositional change on income does have a feed-back effect on budget revenues and Treasury borrow­ ing. While the simulation results should be viewed with caution, they do furnish a reminder that misleading signals are possible if too much reliance is placed on a single indicator when changes in major programs are occurring. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 FEDERAL RESERVE BULLETIN □ JUNE 1973 A more general problem of simple measures of net fiscal stimulus is that, depending on the particular type of fiscal action taken, different lags may occur between a policy change and its resulting effect on revenues (or expenditures) as compared with its resulting effect on the over-all economy. In the case of changes in tax legislation and some spending programs such as general revenue sharing, for example, the policy actions are likely to have their major impact on private spending at a later period than the one indicated by the recorded change in Federal receipts and outlays. With large structural models, estimates can be made of the lagged effect of a variety of changes in fiscal policy. If the model is a reasonable interpretation of the structure of the economy, these estimates can be quite useful. Examples of such measured lags are shown in Table 5. The timing of the computed economic effects on ultimate economic activity is compared with the timing of revenue effects recorded in the full-employment budget. The com­ parison shows that for both the 1968 surtax and the 1969 repeal of the investment tax credit the timing of the revenue effects (column 1) is fairly similar to the estimated timing of constant- TABLE 5 SELECTED TAX CHANGES1 Estimated Revenue Effects Compared with Estimated Economic Effects In billions of dollars Effect on— Full- Producers’ Quarter employment Nominal Real durable Unemploy­ GNP GNP ment rate revenues equipment (1) (2) (3) (4) (5) Of repeal of investment tax credit in December 19692 1970—Q2 ........... 1.9 -9.4 -5.6 -3.5 .3 Q4 1.9 -13.0 -6.7 -4.7 .3 1971—Q2 ........... 2.4 -17.1 -7.9 -7.8 .4 Q4 ........... 2.4 -19.4 -7.6 -9.7 .5 Of temporary surcharge on individual and corporate taxes enacted June 1968 1968—Q4 14.9 -14.2 -9.6 n.e. .6 1969—Q2 14.9 -22.0 -11.5 n.e. .8 Q4 ........... 11.3 -28.0 -10.7 n.e. .8 1970—Q2 ........... 36.5 -26.3 -4.7 n.e. .5 Q4 ........... 31.0 -16.6 5.4 n.e. .1 'The model assumes that these tax changes are permanent and unforeseen by those being taxed. Because the surcharge was announced as a temporary tax change, the simulation probably overstates the impact of the change. 2 Repealed retroactively to April 1969. 3Reflects decrease and expiration of surcharge, n.e. Not estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 395 dollar GNP effects (column 3) in the simulation. Revenue effects and real GNP effects of the investment credit, for example, are about 25 per cent greater in 1971 than in 1970. However, in both instances simulated price effects that show up in nominal GNP occur much later than the revenue effects. The investment tax credit applies to production of all equipment, not simply to the change in output resulting from the tax adjustment. Thus the impact on output of producers’ durable equipment (column 4) lags far behind the revenue effect. Full-employment revenue effects do not increase greatly after the second quarter of 1971, but the simulation indicates that the impact on output of producers’ durable equipment was largest in the fourth quarter of 1972 (not shown in table), 12 quarters after repeal of the credit. While this simulated impact must be viewed with some skepti­ cism, it does suggest that certain tax changes have very long-lagged impacts not reflected in such indicators as the full-employment budget. It also suggests that the reinstitution of the investment tax credit in December 1971 was a contributing factor to the fast economic growth that was experienced in 1972. Ideally, the full-employment budget would measure only the budget effect of discretionary fiscal policy actions. It should be noted, however, that full-employment receipts are calculated on the basis of the inflation rate that actually occurred. When prices rise, full-employment revenues increase immediately and the re­ sulting full-employment deficit is smaller. Generally, the effect of rising prices on Government expenditures occurs with a consid­ erable lag. Thus, given a rapid upward price movement, as in early 1973, the full-employment budget moves rapidly toward surplus. This price effect causes the full-employment budget to overstate the amount of restriction that is being exerted independently by policy actions. Finally, another uncertainty regarding the measurement of fiscal stimulus should be mentioned. In general, measures affecting full-employment tax receipts have been recorded at about the same time they are entered in the actual NIA (or budget) accounts. However, an exception was made for some measures pertaining to overwithholding of individual income taxes in calendar 1972. At the beginning of 1972 new withholding schedules were intro­ duced that, among other things, redefined the representative house­ hold as one in which there are two jobholders. Many other house­ holds were expected to change their declared exemptions to avoid having too much tax withheld. The failure of taxpayers to make the expected adjustments in exemptions resulted in an estimated $7 billion to $9 billion of overwithholding in calendar year 1972, and personal tax refunds increased sharply in the spring of 1973 to reach an estimated $22 billion for fiscal year 1973, $8 billion more than in the preceding year. In its presentation of the full- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 FEDERAL RESERVE BULLETIN □ JUNE 1973 employment budget, the Office of Management and Budget ex­ cluded overwithholding in 1972. One reason for doing this is that consumption is thought to depend mainly on permanent income and to that extent temporary changes in the timing of individual income tax collections do not reflect a change in fiscal stimulus. CONCLUSION Changes in national priorities during recent years have resulted in frequent adjustments in Federal spending and tax programs. The 1965-72 experience points out the need for careful analysis of the implications of these adjustments for the over-all posture of fiscal policy. Simple indicators such as the full-employment budget are useful, but because of compositional shifts in spending and varia­ tions in lagged economic effects such indicators have not always properly reflected the degree and timing of fiscal stimulus. Shifts in priorities and the rather rapid changes in the general economic outlook and economic activity that have characterized recent years highlight the need for increased flexibility in fiscal policy that will permit timely changes in expenditure and tax programs. ADDITIONAL NOTES The preceding analysis has considered the policy implications of ON FISCAL POLICY a number of broad trends evident in Federal fiscal experience since ACTIONS 1965. While it distinguishes three subperiods of policy change—fis­ cal stimulus from 1965 to 1968, restraint in 1969 and 1970, and stimulus again from 1971 to mid-1973—specific measures intro­ duced in these periods have not been identified. For those interested in such a review this section provides a chronology of the principal fiscal actions taken in each subperiod. In the 1965-68 period, expenditures increased rapidly as a result of both the war build-up in Vietnam and the sizable expansion in social outlays. A minor move toward fiscal restraint was made from the tax side in 1966 involving a one-time speed-up of tax collections and a rescinding of scheduled excise tax cuts. Then a major move was taken late that year when Congress voted a 15-month suspension of the 7 per cent investment tax credit on machinery and equipment and of the accelerated depreciation ap­ plicable to business structures. When a slowdown in economic expansion developed toward year-end 1966 and in early 1967, the administration asked for a quick restoration of the investment tax credit, and so the suspension actually lasted for only 5 months. Nevertheless, the temporary suspension of the investment tax credit appears to have contributed to the slowing of business investment in early 1967. In January 1967, the administration requested a 6 per cent surtax on personal and corporate income taxes to become effective by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 397 FEDERAL EXPENDITURES and DEFENSE PURCHASES show varying growth BILLIONS OF DOLLARS 30 20 ———.— DEFENSE PURCHASES I B H huBI 1974 Fiscal year data. Total Federal expenditures and defense purchases component are as shown in NIA. mid-1967. Fearing the renewal of inflationary pressures, the ad­ ministration in August 1967 asked again for prompt action on its request, and at the same time it recommended that the surtax rate be increased from 6 to 10 per cent. However, enactment of the surtax was delayed until mid-1968 as congressional debate centered on the relative merits of an expenditure cut versus a tax increase. As finally enacted, the Revenue and Expenditure Control Act of 1968 provided not only a 10 per cent surtax but also a ceiling of $180.1 billion on budget outlays for fiscal year 1969—$6 billion less than planned when the budget was issued in January 1968. The ceiling was flexible, however, in regard to spending above planned levels for interest, social security, veterans’ benefits, and outlays for the Vietnam war; thus, spending for the fiscal year totaled $184.5 billion. The Revenue and Expenditure Control Act of 1968 marked the beginning of a shift toward fiscal restraint. The growth of Federal spending slowed markedly from 10.9 per cent in calendar year 1968 to 4.2 per cent in 1969 (NIA basis). While the restrictive effects of the policy shift on the general economy, and especially on consumption, were not immediately apparent, a considerable slowdown in economic activity was achieved by late 1969. A tight monetary policy in 1969 was also a factor in the slowdown. Although growth in Federal spending picked up considerably in calendar year 1970 (increasing by 8.1 per cent), defense spending declined by $3.3 billion. The growth in 1970 was concentrated in the areas of transfer payments and grants, probably limiting the stimulative effect of the total increase in spending. On the tax side the surtax, which had originally been scheduled to expire in mid-1969, was extended at the full 10 per cent rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 FEDERAL RESERVE BULLETIN □ JUNE 1973 until the end of 1969 and then at a 5 per cent rate until June 1970 when it expired. Meanwhile, on December 30, 1969, Congress enacted a major tax bill, the Tax Reform Act of 1969. In addition to extending the surtax, this bill responded to an administration request, of April 1969, for repeal of the investment tax credit on all property ordered or acquired after April 8, 1969. The bill also contained a large number of tax relief and reform provisions affecting individual and corporate income taxes. The reform and relief provisions of the Act provided cuts in taxes, below levels that would otherwise have been received, of $0.4 billion in 1970 and $4.1 billion in 1971. Further cuts occurred in 1972 and 1973, resulting in a reduction in receipts of $9.5 billion by 1973. A gradual shift toward tax stimulus was thus legislated. This move toward stimulus later was reinforced by the reinstatement of the investment tax credit. The over-all fiscal posture—considering expenditures as well as receipts—became more stimulative in calendar year 1971. Federal spending increased by about 8 per cent, the same rate as in 1970, although defense spending continued to decline. A greater portion of the tax cuts that had been legislated in late 1969 became effective in 1971 than in the previous year. In addition, the administration announced a new regulation involving a liberalization of deprecia­ tion for tax purposes. This regulation, known as the Asset Depre­ ciation Range (ADR), allowed business the option of shorter guideline lives for assets. Additional fiscal policy actions were recommended with the announcement of the new economic policy on August 15, 1971. This policy suspended convertibility of the dollar into gold, im­ posed a temporary 10 per cent surcharge on dutiable imports, and froze wages, prices, and rents for 90 days. The fiscal package embodied in the new economic policy provided added stimulus to the private sector of the economy while temporarily slowing the growth of Federal expenditures. The tax changes recommended in the fiscal package included the following measures: (1) An investment tax credit, called the “Job Development Credit,” on machinery and equipment acquired after August 15, 1971, was to be allowed at a 10 per cent rate until August 1972 and 5 per cent thereafter; it was not to apply to used nor initially to foreign-produced property; (2) the 7 per cent excise tax on domestic and foreign autos was to be repealed effective August 15, 1971; and (3) increases in the standard deduction and in the personal income tax exemption, previously scheduled to go into effect in 1973, were to be accelerated to January 1972. These tax measures, all requiring congressional approval, were expected to reduce revenues by $5.8 billion in fiscal year 1972. However, depending on its duration, the 10 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 399 surcharge on imports, which did not require congressional approval, was expected to offset some of the revenue loss. In December Congress enacted the Revenue Act of 1971. The acceleration of the scheduled increases in the standard deduction and in the personal exemption was enacted and the auto excise tax was repealed retroactively to August 15, 1971, as proposed. The investment tax credit was also enacted effective August 16, 1971, but at a permanent 7 per cent rate. The ADR system became law, although the incentive was reduced somewhat by elimination of certain technical provisions. These tax actions provided consid­ erable stimulation in late 1971 and during 1972. A number of other tax law changes were included in the bill, some of which are shown in Table 6. Many households, however, may not have become aware of the cuts in individual income taxes because changes in withholding treatment were also made in early 1972, which resulted in large overwithholding. The expenditure changes proposed on August 15 included post­ ponement of general revenue sharing for 3 months and welfare reform for 1 year. A Federal pay raise scheduled for January 1972 was to be postponed for 6 months. In addition, there was to be a 5 per cent cut in Federal employment and a 10 per cent reduction in foreign aid. These proposed expenditure changes were expected to reduce fiscal 1972 outlays by $4.9 billion. Total Federal spending in fiscal year 1972 was about as projected in the August proposals, though many of the proposed changes were not made effective. The proposed welfare reform program was not enacted and general revenue sharing did not go into effect until the fourth quarter of 1972. Congress did not postpone the Federal pay raise scheduled for January 1972. Federal spending increased rapidly during 1972—at an 11.7 per cent rate. Defense spending accelerated in 1972 as a result of a speed-up in spending in the first half of the year and of the military pay raises. But it declined thereafter and for the year as a whole showed a 6.7 per cent gain. Nondefense expenditures grew more rapidly in the second half of the year than in the first largely because of the 20 per cent increase in social security benefits and the beginning of current as well as retroactive payments for general revenue sharing. Total receipts also increased rapidly during 1972. Part of the increase was a result of overwithholding of income taxes, which added an estimated $7 billion to $9 billion to Federal receipts during calendar year 1972. In early 1973 the overwithholding resulted in a large bulge of personal income tax refunds, but by this time the growth in Federal spending had begun to decelerate. As indi­ cated earlier the budget document issued in January 1973 projected a slowdown in the growth of Federal expenditures in fiscal year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN □ JUNE 1973 1974. The Mid-Session Review of the 1974 Budget, released on June 1, 1973, indicated some minor changes in the composition of spending but no change in the projection of total budget outlays made in January. However, the $17.8 billion and $2.7 billion budget deficits now projected for fiscal years 1973 and 1974, respectively, are $7 billion and $10 billion less than estimated in January due entirely to higher estimates for receipts. NOTES TO TABLE 7: 1 First full year of operation. ments beginning April 1 at an annual rate. In addition, a 2This amount shows the increase in OASDI benefits begin­ lump-sum retroactive payment was disbursed in late April in ning in October at an annual rate. In addition, a lump-sum the amount of $0.7 billion. retroactive payment was disbursed in September in the amount 5This amount shows the increase in OASDI benefits begin­ of $0.9 billion. ning June 1 at an annual rate. In addition, a lump-sum retroac­ 3 Medicare benefit payments did not reach a normal level tive payment was disbursed in late June in the amount of $1.1 of operation until after the first quarter of 1967—due to start-up billion. problems. Benefit payments for full year beginning April 1967 6P.L. 92-336 also provided for automatic cost-of-living amounted to $4.9 billion. benefit increases, the first of which will be possible in January 4This amount shows the increase in OASDI benefits pay­ 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL FISCAL POLICY, 1965-72 401 TABLE 6 MAJOR REVENUE ACTIONS BEGINNING IN 1965* Date Date Measure Nature of change recommended enacted Excise Tax Reduc­ January 1965 June 1965 Repealed Federal excise taxes on appliances, radios, televi­ tion Act of 1965 sion sets, jewelry, furs, and certain other items. Provided for systematic reductions in the rates on transportation equipment and communication services. Rate on automobiles was to be reduced from 10 to 7 per cent immediately and to 1 per cent by January 1969; that on telephone services from 10 to 3 per cent immediately and to 1 per cent by January 1969. Tax Adjustment Act January 1966 March 1966 Restored excise tax rates on transportation equipment and of 1966 telephone services to the rates in effect prior to January 1966. Introduced graduated withholding rates in an effort to put personal tax collections on a “pay-as-you-go” basis. Temporary Suspension September 1966 November 1966 As of October 10, 1966, temporarily suspended the 7 per of the Investment cent investment tax credit. Tax Credit Restoration of the March 1967 June 1967 As of March 10, 1967, restored the 7 per cent investment Investment Tax tax credit. Raised permissible ceiling on the credit from 25 Credit to 50 per cent of the tax liability in excess of $25,000, as provided in the November 1966 legislation. Revenue and Expen­ January 1967 June 1968 Levied 10 per cent surtax on personal income taxes effective diture Control April 1, 1968, and on corporate income effective January Act of 1968 1, 1968. The surtax was scheduled to expire on June 30, 1969. Postponed reduction in the respective 7 and 10 per cent excise tax rates on automobiles and telephone services, previously scheduled for April 1, 1968, until January 1970. Extension of Surtax April 1969 August 1969 Extended the 10 per cent surtax on personal incomes, pre­ viously scheduled to expire on June 30, 1969, to December 31, 1969. Tax Reform Act January 1969 December 1969 Increased the personal exemption from $600 to $625 in 1970, of 1969 to $650 in 1971, to $700 in 1972, and to $750 in 1973 and thereafter. The standard deduction was increased from 10 to 15 per cent over a 3-year period beginning in 1971. Introduced a maximum marginal rate of 50 per cent on earned income. The maximum rate on unearned income remained at 70 per cent. Extended the surtax from January 1, 1970, to June 30, 1970, at a 5 per cent rate. Postponed scheduled reductions in the excise tax rates on automobiles and telephone services until January 1, 1971. Generally repealed the investment tax credit for corporations for property constructed, reconstructed, or acquired after April 18, 1969. Excise, Estate and May 1970 December 1970 Extended the excise tax rates on automobiles and telephone Gift Tax Adjustment services, previously scheduled for repeal, at their respective Act of 1970 7 and 10 per cent levels until January 1972. Sped up collections of estate and gift taxes. Treasury’s Asset January 1971 June 19711 Gave firms the option of raising or lowering the “guideline Depreciation lives” of depreciable assets by up to 20 per cent. The reserve Range Guidelines ratio test was abandoned. Revenue Act of August 1971 December 1971 Accelerated by 1 year scheduled increases in personal ex­ 1971 emptions and the standard deduction. Repealed 7 per cent automobile excise tax retroactive to August 15, 1971, and the excise tax on small trucks and transit buses retroactive to September 22, 1971. Reinstated the 7 per cent investment tax credit. Defined and granted the Domestic International Sales Cor­ poration the option of indefinite deferral of the Federal tax due on “export related operations.” ^his administrative action was, in large part, incorporated in legislation when the Revenue Act of 1971 was enacted. * Excludes changes in social security tax rates shown in Table 7. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN □ JUNE 1973 TABLE 7 MAJOR CHANGES IN BENEFIT SCHEDULES OF, AND TAX RATES FOR, SOCIAL SECURITY TRUST FUNDS January 1965 to January 1974 Billions of Effective Increased benefits Increased tax rates dollars1 September 1965 7 per cent old-age, survivors, and disability insurance (OASDI) benefit increase and other liberalization .................................................................................................................................................... 21.3 January 1966 Combined rate increased from 7.25 to 8.40 per cent and maximum earnings base raised from $4,800 to $6,600 ................................................... 5.3 July 1966 Medicare health benefits began .................................................................................................................. 33.1 July 1966 Supplementary medicare insurance premiums ($3.00 per month) initiated on voluntary basis .6 January 1967 Combined rate increased to 8.80 per cent __ 1.5 January 1968 Maximum earnings subject to tax lifted to $7,800 ....................................................................... 2.0 March 1968 13 per cent OASDI benefit increase and other liberalization ..................................................................................................................................................... 3.5 April 1968 Voluntary supplementary medicare insurance premiums increased to $4.00 monthly ............ .2 January 1969 Combined tax rate increased to 9.60 per cent 3.0 April 1970 15 per cent OASDI benefit increase and other liberalization ..................................................................................................................................................... 44.4 July 1970 Voluntary supplementary medicare insurance premiums increased to $5.30 per month ......... .3 January 1971 Combined tax rate increased to 10.40 per cent 3.3 June 1971 10 per cent OASDI benefit increase ......................................................................................................... 53.6 July 1971 Supplementary medicare premiums increased to $5.60 per month ..................................................... .1 January 1972 Amount of earnings subject to tax was increased to $9,000 ................................................................. 3.0 July 1972 Supplementary medicare insurance premiums increased to $5.80 monthly ................................ .1 October 1972 20 per cent OASDI benefit increase6 ....................................................................................................... 8.4 January 1973 Substantial liberalization of social security ben­ efits, especially for widows and widowers...................................................................................... 2.3 January 1973 Maximum earnings subject to tax increased to $10,800 and combined rate increased to 11.70 per cent .................................................................... 11.0 July 1973 Medicare benefits increased, including liberali­ zation of benefits ............................................................................................................................................ 2.0 January 1974 Maximum earnings subject to tax scheduled to increase to $12,000 .............................................. 2.5 For notes, see page 400. 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 u lletin 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 u lletin includes a separate sion and to others are summarized—or they may section entitled “Staff Economic Studies” that be printed in full—in this section of the Federal enumerates the studies for which copies are Reserve B u lletin . currently available in that form. Study Sum m ary THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF FUNDS Frederic Brill Ruckdeschel—Staff, Board of Governors Prepared as a dissertation and submitted to the University of Pennsylvania in 1971 in partial fulfillment of the requirements for the degree of Doctor of Philosophy Whether capital outflows of U.S. direct inves­ Two alternative identities define the outflow as tors abroad increase or decrease as the U.S. the difference between the firm’s sources and economy expands or contracts is the general its uses of funds in either country. For example, problem addressed in the study. Presumably, if sources abroad are less than uses abroad, an faster growth in the United States not only outflow results. The firm’s single profit function increases rates of return on domestic investment includes costs of all domestic and foreign relative to rates of return abroad but also in­ sources and uses of funds. Variables determin­ creases the cash flow of U.S. parent companies. ing those costs are specified in supply-function Thus, the net impact of economic growth on constraints. direct investment outflows depends on whether Econometric tests of the aggregative model, the dominant factor is the increased demand for using data from 1952 through 1962, do not funds to finance domestic investments or the successfully identify the various demand and increased supply of funds available to finance supply parameters, apparently owing to severe investments at home and abroad. multicollinearity and the high degree of aggre­ In the study, an aggregative two-country the­ gation. A truncated model is then developed. oretical model is derived formally from a static, The independent variables of the estimated two-country microeconomic model of a firm. truncated model are quarterly cash flows of U.S. The microeconomic model places a direct in­ corporations and two dummy variables repre­ vestment outflow in an optimizing framework. senting identifiable outflows of such large mag­ 403 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

nitude that they may be considered as not part by increasing rates of return in the United States of the population under study. Cash flow enters relative to those abroad. through a first-degree Almon-lag transforma­ An alternative hypothesis explaining the rise tion. It represents “permanent” cash flow. The in direct investment outflows during the early first-degree structure is justified by the fact that 1960’s is that rates of return abroad rose relative the outflow is a financial, not a real, flow and to those in the United States. Neither the full by its empirical superiority. model nor the truncated model could be used The estimated quarterly truncated model had to confirm or reject this second hypothesis; good statistical properties and projected very however, examination of realized rates of return well the cumulative outflow for 2 years beyond and of price movements of common stocks at the estimation period of 1954-62 and before the home and abroad for the period 1960-64 sug­ Government’s voluntary control programs in gests that it would not be confirmed. 1965. The model indicated that U.S. outflows The few other quantitative-analytical studies would increase by about $55 million for each of direct outflows are reviewed analytically and $1 billion increase in corporate cash flow. related to the complete theoretical model. To The truncated model provides an explanation the extent that the empirical findings in these of why U.S. direct investment outflows rose by studies are comparable, they are less convincing 75 per cent between 1963 and 1965; the rise theoretically and empirically than those of the occurred in spite of U.S. Government programs truncated model. in the early 1960’s that had been designed to In conclusion, in theoretical work on interna­ increase the rate of growth in the United States tional adjustment, income-sensitive U.S. capital but, as it turned out, had an important secondary flows should be assumed to be positively related effect of inhibiting direct investment outflows to changes in U.S. income. □ 404 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Open Market Operations in 1972 This article is adapted from a report submitted likely to exceed its prescribed tolerance range, to the Federal Open Market Committee by Alan for example, the instructions called for the Desk R. Holmes, Manager of the System Open Mar­ to provide nonborrowed reserves more grudg­ ket Account and Senior Vice President of the ingly to the banking system so long as the Federal Reserve Bank of New York. average Federal funds rate did not move out of the tolerance range established by the Commit­ Federal Reserve policy during 1972 sought to tee. In consequence, nonborrowed reserves promote the moderate monetary growth deemed grew at a 6.0 per cent rate over the year, essential to a strong economic expansion and compared with growth rates of 9.7 per cent and to continued progress in dampening inflation. 9.5 per cent recorded for RPD’s and total re­ As in 1970 and 1971, the Federal Open Market serves, respectively. Committee (FOMC) included the rate of growth The economic recovery, which had seemed of the money stock—private demand deposits sluggish through much of 1971, gathered steam plus currency in the hands of the public—as one in 1972, reducing unemployment and the mar­ of its important policy objectives. Once again gin of unused capacity in the process. In 1970 Mj proved an elusive target. It grew at the and 1971 open market operations had pressed relatively rapid rate of 8.3 per cent over the reserves on the banks to spark the monetary and year, well above the rate of other recent years. credit creation needed to improve liquidity and M2—Mj plus time and savings deposits exclu­ to spur the credit-financed spending essential to sive of large negotiable certificates of deposit economic revival. But in 1972 the quickening (CD’s)—also grew rapidly, expanding at a 10.8 pace of the economy itself augmented the de­ per cent rate over the same period. The adjusted mands for money and credit falling on the bank credit proxy—a close approximation of banking system. The Federal Reserve’s role total member bank liabilities, exclusive of capi­ shifted to resisting the banking system’s demand tal—grew at an 11.6 per cent rate.1 for reserves as the banks sought to satisfy strong The Committee adopted in February a re­ loan demands from the housing, business, and serve-targeting procedure for guiding open consumer sectors while continuing to add to market operations. Under this procedure, which their investment in securities. is described more fully below, the Committee Open market operations began the year on formulated its operating instructions to the an expansive note as the Committee sought to Trading Desk in terms of tolerance ranges for make up for the sluggishness of M1 in the latter the growth of reserves available to support pri­ part of 1971. By early February the ready vate nonbank deposits (RPD’s). Typically, the availability of nonborrowed reserves had pushed Committee specified an expansion of this meas­ the Federal funds rate down to 3lA per cent from ure over a 2-month period that the staff believed 43A per cent in early December. In the latter would mesh with the growth desired for the part of February, however, both RPD’s and the monetary aggregates. If RPD growth appeared money stock began to grow rapidly. Under the new RPD procedures, the Desk promptly held back on the provision of nonborrowed reserves 1 Since the FOMC sought in early 1972 to make up relative to the growth of reserve requirements, for the slow Mx growth of the fourth quarter of 1971, the 15 months ending in December 1972 provide per­ and the Federal funds rate rose within 3 weeks haps a more appropriate time period for judging the to the upper limit of the Committee’s prescribed behavior of the aggregates. Over this interval, M2, tolerance range. Subsequent periods of strength and the credit proxy grew at rates of 7.0 per cent, 10.6 per cent, and 11.4 per cent, respectively. in RPD’s and Mx led to a further moderate shift 405 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN □ JUNE 1973 in operations, bringing the Federal funds rate about 5% per cent, 146 basis points above the about in line with the AV2 per cent Federal level 1 year earlier. Reserve discount rate at midyear. The growth In contrast, interest rates in the capital mar­ in Mj, in fact, slowed to 6.1 per cent in the kets were comparatively stable over the year, second quarter from 9.2 per cent in the first.2 as inflationary expectations diminished and de­ By midyear, the economy was clearly moving mands for long-term credit proved moderate. ahead strongly while a resurgence of speculative Corporate borrowing in the long-term bond international currency flows to Europe and Japan markets declined appreciably from the previous provided cause for concern. A burst of Mx year. Municipal borrowing also receded some­ growth in July elicited further System efforts what toward the end of the year, as tax collec­ to damp down the provision of nonborrowed tions and Federal revenue sharing helped rebuild reserves, and the Federal funds rate rose to liquidity at the State and local government about 5Vs per cent near the end of the third levels. Mortgage credit grew at a record clip, quarter. However, a sharp reaction in market but a good savings inflow, thrift industry li­ interest rates from mid-August to mid-Sep­ quidity, and the growth of real estate investment tember required the Manager of the System trusts sustained the high volume of activity with Account, under the FOMC’s instructions, to little increase in yields. U.S. Government avoid further reserve pressure. At about this coupon issues traded in a narrower range of point the growth of both RPD’s and Mx began yields than in many years, although heavy to mode ite so that no further adjustments in Treasury financing in the fourth quarter contrib­ reserve strategy were required under the RPD uted to a rise near the end of the year. procedure for a number of weeks. About mid- November Mi and RPD’s again began to grow THE COMMITTEE’S rapidly and open market operations again re­ RESERVE-TARGETING STRATEGY sisted the demand for reserves. The Federal The Committee’s choice of a reserve strategy funds rate rose to around 5% per cent at the for open market operations in February contin­ year-end, compared with 4 per cent a year ued the evolutionary search for more effective earlier. means of pursuing the Committee’s long-term System efforts to restrain the growth of non­ objectives for the monetary and credit aggre­ borrowed reserves over the year were reflected gates. As the year progressed, the Desk devel­ in the rise of member bank borrowings at the oped new operational procedures, and the Reserve Banks from a minimal level of $33 Committee modified its own formulation of in­ million in February to $1,050 million in De­ structions to the Desk. For the Manager of the cember. The Federal funds rate rose in parallel Open Market Account the reserve approach ne­ fashion from 3Va per cent to 5% per cent. Other cessitated formulating the Trading Desk’s short-term interest rates followed suit. The weekly operational targets explicitly in terms of banks aggressively expanded their negotiable reserves and changing the weekly reserve targets CD’s to meet their loan demands—with the rate in accordance with the FOMC’s new instruc­ on 60- to 89-day CD’s rising to 5% per cent tions. in December, up 1% percentage points over the The FOMC’s instructions to the Manager. year. Treasury bill rates increased as well, al­ The Committee embodied its reserve strategy though there were several times during the year in a set of interlocking instructions that together when foreign central bank demand depressed specified how the Manager should respond to bill rates relative to rates on other instruments. incoming information on reserves and the ag­ At the year-end, the 3-month bill rate was bid gregates between FOMC meetings. The Com­ mittee expressed its primary instruction in terms of RPD’s—that is, total reserves less 2 These data on the aggregates reflect the revisions reserves required for U.S. Government and of early 1973. The data used later in describing opera­ tions during the year are those available at the time. interbank deposits. Drawing on alternative Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1972 407 specifications, prepared by its staff for each credit proxy indicated a significant deviation meeting, the Committee established a tolerance from their respective tracking paths. The FOMC range for the growth of RPD’s from the calendar had prescribed generally modest changes in the month before the FOMC meeting to the calendar Federal funds rate, giving considerably more month after the meeting. This corresponded weight to Mx than to the other two aggregates.3 approximately to the deposit behavior required The intent of the new approach was to attempt in the 4 weeks after the FOMC meeting to move to achieve better control of the aggregates in the direction of the Committee’s longer-term through focusing on reserves as a handle for goals for the aggregates. those aggregates. At the same time use of the During much of 1972 the Committee was 2-month growth rate provided a procedure for concerned primarily with overly rapid growth smoothing out swings in weekly data, whereas of the money stock (Mx) and other aggregates. this had previously been done judgmentally by The Committee’s reserve instruction ensured the Manager. It also appeared to be part of the that, if the projected growth of RPD’s rose Committee’s intent to permit greater changes in toward the top of its tolerance range, or above the Federal funds rate than had been allowed it, between meetings, the Manager was to retard previously. the growth of nonborrowed reserves relative to The Manager’s operational strategy. In deposit growth. This process would bring up­ evolving practice the Manager and his staff ward pressure on the Federal funds rate and formulated each week’s reserve targets on Fri­ member bank borrowings at the Reserve Banks. day morning in the light of new information on In time the portfolio adjustments set in motion RPD’s and the other aggregates. At that time by higher short-term interest rates would be the staffs of both the Board of Governors and expected, ceteris paribus, to dampen the growth the New York Bank presented new estimates of private deposits and RPD’s. of how RPD’s might grow over the pre­ The Committee also stipulated, however, that scribed 2-month interval at current interest rates. it wished to avoid both sharp short-run fluctua­ Subordinate detail on expected weekly behavior tions in money market conditions and undesira­ of RPD’s was included. The two staffs also bly large cumulative deviations in money mar­ presented their projections of the behavior of ket conditions in either direction in the interval Mi, M2, and the credit proxy for the remainder between meetings. To this end, it chose a toler­ of the calendar quarter, and—near the end of ance range within which the Manager could the quarter—for the following quarter as well. move the Federal funds rate between meetings. Again there was subordinate weekly detail for The Committee also indicated that—even if the period leading up to the next FOMC meet­ RPD’s were on target—allowance should be ing. made for any significant deviations that devel­ The starting point for the weekly review of oped between the actual rates of growth in the strategy was the behavior of RPD’s them­ aggregates (mainly Ma) and the growth rates selves—both for the weeks on which hard data desired because of a shift of the multiplier from were available and for the 2-month interval. that expected by the staff. Finally, it was un­ Suppose RPD’s were running above their derstood that the Chairman might call upon the weekly path and were projected above the top Committee to consider the need for supple­ of their 2-month tolerance range. The Manager mentary instructions if serious problems arose would first examine whether this overrun re­ in the attempt to achieve the Committee’s mul­ sulted from such technical factors as higher tiple objectives. excess reserves or a shift in the distribution of These specifications of a response function for deposits toward banks with higher average re­ the Desk differed in a number of ways from serve requirements, both relative to the as­ those that had prevailed in 1971. In that year the FOMC had called for the Desk to respond 3 Alan R. Holmes and Paul Meek, “Open Market Operations and the Monetary and Credit Aggregates— by varying the Federal funds rate promptly when 1971,” Monthly Review (Federal Reserve Bank of New the most recent information on Mx, M2, and the York, Apr. 1972), pp. 79-94. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 FEDERAL RESERVE BULLETIN □ JUNE 1973 sumptions made by the FOMC staff in drawing Reserve targeting in operation. The up the RPD path. If RPD strength persisted after Desk’s experience immediately after the Febru­ allowance for these technical factors, the be­ ary 15 meeting provides a case study of the new havior of Mi and the other aggregates relative procedures in operation. The FOMC’s instruc­ to the Committee’s desires had to be considered. tions specified a 6 to 10 per cent range for the If these aggregates were also in excess of the growth of RPD’s from January to March. The desired levels, then the Manager would set a Federal funds rate was expected initially to weekly reserve target that involved scaling back average around 3lA per cent, well below the the level of nonborrowed reserves relative to the Federal Reserve discount rate of AV2 per cent. behavior of deposits. (If, on the other hand, Mx On February 18 the Desk learned that RPD’s were on track, the Desk would tend to give less for January had been revised downward suffi­ weight to RPD strength in setting its weekly ciently to add about 1 percentage point to the targets.) January-March growth rate. The Board staff’s As noted earlier the FOMC’s choice of a new estimate of that growth was 9 per cent— reserve-oriented strategy led to a recasting of about the middle of the range, allowing for the the Desk’s weekly operational targets. For the January revision—but the New York estimate first statement week after the FOMC meeting, was about 12 per cent because of stronger ex­ the Desk developed a reserve target that it pectations of growth in private nonbank deposits believed was consistent with the FOMC’s initial through mid-March. By February 25 incoming money market conditions. The Desk first esti­ data showing pervasive deposit strength led both mated the volume of excess reserves expected staffs to project RPD growth over the 2 months for the week under the given initial conditions, near the upper end of the FOMC’s tolerance allowing for historical patterns and the carry-in range. Moreover, the first-quarter growth rates from the preceding week of reserve excesses or of Mx, M2, and the bank credit proxy appeared deficiencies by the banks. It then arrived at an somewhat above what the Committee had ex­ estimate of total reserves for the week by adding pected. Some downward revision in weekly its estimate of the likely level of excess reserves nonborrowed reserve targets was therefore indi­ to required reserves, which were pre-established cated, carrying with it the likelihood that the under lagged reserve accounting. The week’s Federal funds rate would rise. nonborrowed reserve target was then calculated The reserve outlook on February 25 for the by subtracting the member bank borrowing level March 1 statement week is shown in Table 1. associated with the initial Federal funds rate With excess reserves estimated at $270 million, specified by the Committee. bank demand for total reserves for the week was The modification of weekly reserve targets in expected to approximate a daily average of accordance with actual RPD behavior was quite $31,795 million (line 3). Given the strength in straightforward under this procedure. If, for RPD’s, it appeared appropriate to scale the example, the behavior of RPD’s and the aggre­ nonborrowed reserve target down to around gates suggested the need to hold back on non­ $31,700 million (line 4) rather than to continue borrowed reserves, the Desk would increase the supplying sufficient nonborrowed reserves to borrowing level to be subtracted from estimated hold the Federal funds rate near VA per cent. total reserves to give the week’s nonborrowed Turning to prospective sources of reserves, a reserve target. (Typically, the Desk tended to rise in float and a decline in Treasury balances move in $50 million increments.) The Federal at the Reserve Banks were expected to combine funds rate could be expected to rise, and this with other market factors to provide a $1,091 was appropriate as long as it had not reached million rise in nonborrowed reserves (line 6). the upper end of the FOMC’s tolerance range. System open market operations undertaken prior This procedure provided for an orderly week- to Friday would more than offset this, draining to-week progression in the Federal funds rate $1,148 million of reserves (line 7). Even so, when RPD’s and the aggregates so indicated, projected nonborrowed reserves were still in but avoided sharp fluctuations in the rate. excess of the targeted level (line 10). The re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1972 409 TABLE 1 RESERVE ESTIMATES AND DATA, 1972 Daily average; in millions of dollars; not seasonally adjusted March 1 week March 8 week March 15 week Line Item as of— as of— as of— Feb. 25 Mar. 3 Mar. 3 Mar. 10 Mar. 10 Mar. 17 Bank demand for reserves: 1 Required reserves .............................................................. 31,525 31,525 31,323 31,323 31,713 31,713 2 Excess reserves ................................................................... 270* 213 200* 167 250* 405 3 Total reserves ...................................................................... 31,795* 31,738 31,523* 31,490 31,963* 32,118 4 Approximate Desk nonborrowed reserve target 31,700 31,400 31,850 Sources of nonborrowed reserves: 5 Nonborrowed reserves for preceding week ............... 31,855 31,855 31,668 31,668 31,387 31,387 Change in nonborrowed reserves in current week: 6 Market factors .................................................................... 1,091* 1,520 -456* -431 128* 347 7 System operations .............................................................. -1,148 -1,705 149 150 11 370 8 Total change ....................................................................... -57* -185 -307* -281 139* 717 9 Nonborrowed reserves* for current week (line 5 + line 8)................................................................................ 31,798* 31,670 31,361* 31,387 31,526* 32,104 10 Nonborrowed reserve target less projected nonborrowed reserves (line 4 — line 9) .............. -98* 39* 324* *Projected. Note.—Reserve data are those employed at the time; data do not reflect revisions made subsequently. serve projections indicated a need to absorb a On Friday, March 3, RPD’s continued to look moderate amount of reserves through open on the high side for the weeks ahead, and the market operations. aggregates remained strong. The Desk again In any event the Desk concluded that non­ undertook to hold nonborrowed reserves below borrowed reserves were even more abundant the estimated bank demand for total reserves, than the statisticians were estimating because expecting that this would cause the Federal reserves appeared to be abundant in the Federal funds rate to rise to around 3Vi per cent. The funds market. It acted on Friday, February 25, projections indicated that market factors and to lower the week’s average nonborrowed re­ previous System operations would drain $307 serves by $321 million. On Monday the million of nonborrowed reserves (line 8); so no reserve reports showed that market factors had further System action to absorb reserves was supplied far more reserves than expected on indicated. Upward pressure on the Federal funds Friday so that nonborrowed reserves still ap­ rate on Thursday and Friday indicated that non­ peared above target. On Monday, Tuesday, and borrowed reserves appeared to be behaving as Wednesday, System operations absorbed an ad­ desired. No System action turned out to be ditional $1,380 million of reserves, or about required during the statement week. Federal $200 million on a daily-average basis for the funds traded chiefly at 3% per cent before the statement week. Federal funds traded predomi­ weekend, and 3lh per cent thereafter. On the nantly at 3lA per cent on Tuesday and Wednes­ statement date, March 8, the banks bid up the day, with some trading as high as 3% per cent rate as the extent of the cumulative reserve on the final day of the statement week. On deficit became apparent. The rate rose as high balance, although nonborrowed reserves came as AVi per cent and member banks borrowed out close to target, the average Federal funds $704 million that night at the Reserve Banks. rate of 3.18 per cent was below what was In the afternoon, even though it was too late implied by Friday’s decision that nonborrowed to affect reserves that day, the Desk bought $76 reserves should be kept under a tighter rein. million of Treasury coupon issues for delivery Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN □ JUNE 1973 the next day, using the only channel open to The initial experience with reserve targeting it to indicate resistance to the sharp rise in the after the February 15 meeting underscored one Federal funds rate. important point. The new procedure was effec­ On Friday, March 10, the RPD estimates tive in prescribing the Desk’s response to in­ suggested a January to March growth rate of coming information, but that response did not 10 to 11 per cent, of which 1 per cent still assure that the RPD objective would be attained. reflected the downward revision of January’s The Desk’s management of nonborrowed re­ data since the FOMC meeting. However, these serves led to a 3A percentage point rise in the estimates included lower excess reserves than Federal funds rate within a month, a somewhat assumed in the construction of the tolerance larger change than the Committee had been ranges and there had also been an unexpected willing to contemplate in previous years. RPD shift of deposits toward country banks, which growth over the January-March interval turned lowered the average required reserve ratio. out to be 9.9 per cent, compared with the Growth in Mx for the first quarter was projected FOMC’s 6 to 10 per cent objective. However, at 2 percentage points higher than had been after allowing for the January revisions and the expected at the February 15 meeting, and M2 unexpected behavior of deposit distribution and and the credit proxy were similarly strong. Ac­ excess reserves, RPD’s, in fact, turned out to cordingly, the Manager again planned to be a be about 1.5 percentage points above the upper reluctant supplier of nonborrowed reserves. end of the Committee’s tolerance range. The reserve outlook on March 10 was such The episode indicated that 1 month was too that the interbank market for reserves—the short an interval for the System’s action to bring Federal funds market—should have experienced about the necessary change in private deposits, considerable demand pressure. Member bank and hence in RPD’s. This result was quite demand for total reserves in the March 15 state­ consistent with System research findings that the ment week was expected to rise by $473 million lag from Desk action through nonborrowed re­ from the previous week by virtue of a $390 serves and the Federal funds rate to the response million increase in required reserves for the of deposits is measured in months rather than week and the Desk’s estimate that excess re­ weeks. The mean lag from changes in the Fed­ serves would also rise. Since market factors and eral funds rate to changes in private demand previous System action were expected to supply deposits was about 4 to 5 months in the only a moderate amount of reserves, nonbor­ Pierce-Thomson 12-equation behavioral rowed reserves were estimated to be more than monthly model and in the Davis reduced-form $300 million below target. In this situation the equations.4 According to both of these formula­ Federal funds rate opened on Friday, March 10, tions the principal impact on deposits of Deskat 33A per cent and began to rise further. At initiated changes in reserve management occurs this point the Desk stepped in to supply re­ beyond the 4 to 5 weeks ahead and thus beyond serves, chiefly through repurchase agreements, the horizon of the FOMC’s tolerance ranges. adding $252 million on average to weekly non­ The RPD approach must be judged then on its borrowed reserves. After the weekend strong effectiveness in triggering a Desk response ap­ bank demand for reserves pushed the Federal propriate to the FOMC’s primary longer-run funds rate to 4 per cent. The Desk injected objective of controlling the aggregates them­ reserves on Monday and Tuesday, raising selves. One cannot expect the Desk to be able daily-average nonborrowed reserves for the to hit the FOMC’s stated RPD objectives within week by an additional $104 million. Market factors were also supplying an unexpectedly 4Thomas D. Thomson and James L. Pierce, “A Monthly Econometric Model of the Financial Sector” large volume of reserves (line 6). On Wednes­ (paper presented at the May 1971 meeting of the Federal day, March 15, member banks discovered be­ Reserve System Committee on Financial Analysis); and latedly that they had accumulated reserves sub­ Richard G. Davis, “Estimating Monthly Changes in Deposits with Reduced-Form Equations” (unpublished stantially in excess of their requirements, and manuscript, Federal Reserve Bank of New York, Apr. Federal funds traded as low as 3A per cent. 1972). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1972 411 the short period embraced by the FOMC’s in­ to be concentrated on Wednesdays, when the structions if deposits depart significantly from accumulated reserve deficiencies resulting from the staff’s estimates. the System’s reserve management had to be settled. New questions of interpretation of the RPD RESERVE TARGETING DURING 1972 targeting procedure arose in the interval after March-June. By the March 21 FOMC the FOMC’s April 18 meeting. The Committee meeting the Desk was managing reserves with established a 7 to 11 per cent tolerance range a view to maintaining the Federal funds rate at for the March to May growth in RPD’s at that 4 per cent. The rise in the Federal funds rate meeting. The major objective continued to be had exerted upward pressure on the other short­ a slower second-quarter growth rate for the term interest rates. Treasury financing had also aggregates than had prevailed in the first quarter. added $4.6 billion to the market supply of bills Through May 5 projections of RPD’s over the in the inter-meeting interval, and the 3-month 2-month interval tended to creep up. M1 and bill rate had risen by 87 basis points from M2 were close to the path, and the credit proxy February 14 to March 20. Interest rates on was running quite strong relative to expecta­ long-term securities had shown little change tions. The Desk continued to supply nonbor­ over the interval. The growth rates of the ag­ rowed reserves a step behind the banking sys­ gregates appeared quite strong. Mu after 3 tem’s demand for reserves. On May 12, how­ months of slow growth, appeared likely to ex­ ever, new data on Ml suggested much-weakerpand at a rapid rate in the first quarter. M2 and than-expected behavior, so that RPD growth for the credit proxy were expected to grow even the 2-month interval was scaled down to about more rapidly over the same interval. 8Vi per cent. Projected growth of Mu M2, and Against the background of a strengthening the adjusted credit proxy for the second quarter economic outlook the Committee agreed that remained quite strong. moderate growth in the aggregates was called The Manager felt at this point that discussions for over the second quarter—rates of growth less within the Committee and 3 months of experi­ rapid than appeared likely for the first quarter. ence had established that RPD’s were the handle The FOMC decided that a growth rate of 9 to through which the FOMC sought to control the 13 per cent in RPD’s would be appropriate for aggregates rather than an end in themselves. In the February-April period. The Committee was emerging practice, account had already been to be consulted if a marked rise in the weekly- taken of variations in excess reserves and in the average Federal funds rate seemed indicated. average reserve ratio. With the aggregates still Implementation of the Committee’s instruc­ expected to be quite strong for the second tions proved straightforward. Deposit growth quarter, it did not seem appropriate to become continued strong, and RPD’s gravitated above more generous in the provision of nonborrowed the FOMC’s tolerance range, albeit about 1 reserves. Member bank borrowings at the Re­ percentage point of the growth reflected allow­ serve Banks averaged $113 million in the 5 able technical factors. Mx, Af2, and the credit weeks ending May 17, about the same as in proxy rose above their tracking paths, although the four previous weeks. The Federal funds rate not dramatically so. Consequently, nonbor­ continued to fluctuate around the 4lA per cent rowed reserves were persistently held down, and level. average member bank borrowings at the Federal At both its May 23 and June 19-20 meetings, Reserve discount window rose to $106 million the Committee reiterated its desire to achieve in the 4 weeks ended April 12, compared with moderate rates of growth in the monetary ag­ $43 million in the preceding 5 weeks. The gregates over the months ahead. In each case Federal funds rate rose from 4 per cent to 4XA it was expected that the RPD tolerance ranges per cent over the inter-meeting period. The established might necessitate some firming of upward pressure on both borrowings at the dis­ money market conditions. Committee discus­ count window and the Federal funds rate tended sion, however, made clear that additional con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN □ JUNE 1973 sultation would be in order if the Federal funds take account of the Treasury financing then in rate were to rise sharply. prospect, as well as capital-market and interna­ After both meetings, the RPD and aggregate tional developments. estimates were initially on the strong side, but As the period unfolded, both private demand subsequently turned weak. The Manager re­ deposits and large CD’s came in quite strongly, sponded to strength in late May by supplying leading to a progressive increase in the projected nonborrowed reserves sparingly, pushing the growth of RPD’s over the 2-month interval. The Federal funds rate toward 4lA per cent. As Account Management became more grudging weakness appeared, he shaded upward his with respect to nonborrowed reserves, expecting weekly nonborrowed reserve targets, and the that money market conditions would become rate moved to around 4% per cent. Responding firmer and that a greater part of member bank to initial strength in RPD’s and the aggregates reserve needs would be met through the discount after the June meeting, the Manager became a window. The pace and extent of the System’s more reluctant supplier of nonborrowed re­ moves were constrained, however, by the major serves. Member bank borrowings at the Reserve Treasury financing under way during the period. Banks rose, and the Federal funds rate moved The Federal funds rate rose from about 45/s per up to trade around the 4 Vi per cent discount cent at the time of the July meeting to about rate. As weakness in RPD’s developed, the 43A per cent by mid-August. Average member Desk again planned to be a less reluctant sup­ bank borrowings at the Reserve Banks rose in plier of reserves. But reserves fell persistently the 4 weeks ended August 9 to $249 million short of expected levels, and member banks also from $182 million in the preceding 4 weeks. borrowed little on the June 30 statement pub­ At its August 15 meeting the FOMC’s staff lishing date. The resulting reserve deficiencies indicated that M1? M2, and the credit proxy led to strong upward pressure on the Federal appeared likely to grow quite rapidly in the third funds rate around the July 4 holiday despite quarter. The Committee agreed that the eco­ large System reserve injections. Banks re­ nomic outlook called for moderate growth in sponded by hoarding excess reserves in the fol­ the monetary aggregates over the months ahead. lowing week, and Federal funds continued to It decided that RPD growth in a 5 to 9 per cent trade at 4% per cent and 4% per cent before the range for July to September would be appro­ weekend despite an abundance of nonborrowed priate, expecting this rate to bring some moder­ reserves in the banking system. Thus, bank be­ ation in monetary growth. The Committee rec­ havior and the problems of projecting nonbor­ ognized that this goal might result in firmer rowed reserves resulted for a time in greater- money market conditions, but indicated that a than-desired stringency in the money market. marked firming should be avoided. July-September. By the time the Committee Soon after the meeting RPD estimates rose met on July 18, the unintended firming of rates to near the top of the range (after allowance appeared advantageous. Private deposits had for deposit distribution), and the monetary ag­ turned extraordinarily strong in the first 2 weeks gregates continued strong. Accordingly, mod­ of July, a development that had become clear erate additional pressure was put on the banking only on July 14. RPD growth was not projected system, with the Federal funds rate expected to at the top of the AV2 to W2 per cent growth move up to around 5 per cent. Extraordinary specified for May-July at the previous meeting. bank demands for excess reserves prior to the Reviewing these developments, the FOMC es­ Labor Day weekend pushed the Federal funds tablished a 3 to 7 per cent tolerance range for rate well above this level despite large reserve RPD’s over the following 2-month period. Ml5 injections by the Desk. which had risen at a 5.3 per cent rate in the Against a background of announced Treasury second quarter, was expected to grow somewhat borrowing in the bill market and expectations faster in the third quarter, while M2 and the of a strong economic advance, a substantial credit proxy were both expected to grow more reaction developed in the credit markets. The rapidly than M1. The Desk was instructed to 3-month Treasury bill rate increased from below Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1972 413 4 per cent in mid-August to 43A per cent by Desk did not strive to make up for the shortfalls. mid-September. Government issues with 3- to It sought instead to foster the moderating trend 5-year maturities were up by almost 40 basis by maintaining reserves only a touch more points in yield over the same interval. To avoid plentiful than at the beginning of the interval. disruption in the credit markets, the Manager October-December. At the October 17 had to temper any further adjustments of weekly meeting, the FOMC modified its general ap­ reserve targets. The task of reserve management proach to reserve targeting to distinguish more was further complicated by a sharp rundown in clearly between the Committee’s targets and the the Treasury’s balances at the Reserve Banks staff’s projections. It focused in a more formal before the September 15 corporate tax date. The fashion on the long-term targets for the mone­ credit markets gradually stabilized at higher tary and credit aggregates that it believed were interest rate levels. appropriate to the current economic outlook. When the Committee met on September 19, Consistent with these longer-term objectives it it appeared that RPD’s would be about at the would specify tolerance ranges for the growth upper end of the Committee’s 5 to 9 per cent not only of RPD’s but also of Mx and M2 over range for July to September, after allowance for a 2-month interval. It was agreed that the Desk deposit shifts and excess reserve levels. Mx should continue to put primary emphasis on growth appeared likely to be considerably faster RPD’s and to make allowance for unanticipated for the third quarter than the Committee had changes in excess reserves and the reserve-deoriginally envisioned. The FOMC agreed that posit multiplier. Attention should also continue slower growth in the aggregates would be ap­ to be given to the other aggregates. As for the propriate in the coming months. Such growth, tolerance range specified for the Federal funds staff analysis suggested, would involve an ex­ rate, the Committee clarified its view that the pansion rate of 9Vi to 13Vi per cent for RPD’s Desk should shade the funds rate slightly higher from August through October. The FOMC de­ (or lower) if the aggregates appeared to be close cided to seek RPD growth preferably in the to the upper (lower) limits of their ranges. If lower part of that range unless disturbances the aggregates should be outside the range of arose in financial markets or growth in the tolerance, the Desk should move with greater aggregates fell far short of expectations. In view vigor. The Committee agreed further that, if its of the sensitive state of financial markets and various operating constraints appeared signifi­ the uncertainties associated with prospective cantly inconsistent, the Manager should notify changes in Regulations D and J, the Committee the Chairman who would decide whether the also decided that the Manager should give more situation called for special supplementary in­ than customary attention to money market con­ struction by the FOMC. ditions while avoiding marked changes in such There was also some change in the Commit­ conditions. tee’s approach to the menu of alternative policy The Account Management’s initial goal was courses presented to it by its staff. In preparing to achieve reserve conditions consistent with a these, the staff seeks to develop two or three Federal funds rate of around 5 Vs per cent and mutually consistent sets of relationships among with member bank borrowings at the discount RPD’s, Mj, M2, the credit proxy, and short­ window of $450 million. During the period term interest rates over a 6-month period. This incoming deposit data indicated that growth in longer horizon allows adequate time for changes the aggregates was moderating considerably, in nonborrowed reserves and interest rates to with Mj growing only half as fast in September exert a substantial effect on Mx despite the lags as had been previously projected by the Board found by System research. The 2-month opera­ staff. A little later RPD growth was expected tional horizon used in giving instructions to the to be just below the Committee’s tolerance Desk is too short for much feedback from range. Since the slower growth in the aggregates operations to Mx. Accordingly, the near-term and RPD’s was seen as broadly consistent with projections of the aggregates are more heavily the Committee’s longer-term objectives, the influenced by staff judgments of other factors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN □ JUNE 1973 currently affecting them than by the impact of months Mx and M2 were expected to grow faster System operations within the next 4 to 5 weeks. than the tolerance ranges selected by the FOMC. At the October meeting the Committee re­ The Desk responded by choosing weekly non­ duced the lower end of the 2-month ranges for borrowed reserve targets to produce succes­ the aggregates that the staff had suggested were sively higher levels of member bank borrowings consistent with the FOMC’s long-term objec­ at the discount window, in the process allowing tives. For the September to November interval, the Federal funds rate to rise to about 5l/z per it specified a growth rate of 6 to 11 per cent cent. By December 15 the borrowing objective for RPD’s. Over the longer term the Committee had been lifted from $450 million at the begin­ envisioned growth objectives that were appre­ ning of the period to $650 million (including ciably more moderate than the growth rates a $50 million allowance for transitional bor­ experienced in the third quarter. rowing associated with the changes in Regula­ In any event, RPD’s and the aggregates re­ tions D and J). mained within the Committee’s tolerance ranges The Desk’s operations during the interval during the next 5 weeks.5 Slower-than-antici- were complicated by the difficulty of projecting pated growth in demand deposits at member market factors affecting reserves in the wake of banks kept RPD growth near the bottom of its the changes in Regulations D and J. In such range, and Mx growth was also acceptable. circumstances more reliance than usual had to Growth in consumer-type time and savings de­ be placed on the Federal funds market for indi­ posits led to moderate strength in M2, and the cations of reserve availability, but member credit proxy remained quite strong. Against this banks reacted initially to the increased pressure background the Trading Desk’s weekly nonbor­ on their reserve positions by rather heavy re­ rowed reserve targets continued to be chosen course to the discount window. Such borrowing to produce member bank borrowings at the rose more than desired, averaging $1,223 mil­ discount window of about $450 million with the lion in the statement week ending December 20. expectation that Federal funds would trade at The Federal funds rate gradually rose from 5 per cent or a shade above. around 5 per cent to an average of 5.38 per At its November 21 meeting the Committee cent in the week ending December 20. shaped its instructions to call for a prompt Desk The Committee at its December meeting based response should and M2 growth begin to pick its operational instructions to the Desk concern­ up. The RPD growth range was set at 6 to 10 ing RPD’s, Ml9 and M2 on the more restrictive of per cent for October to December, a rate in­ the options presented by the staff. On this occa­ tended to support more moderate growth than sion the staff expected fairly rapid growth in the annual rates of about 8V2 per cent for M1 RPD’s and Mx from November to January, and 9Vi per cent for M2 recorded over the third given the strength already indicated for the first quarter. 2 weeks in December. The Committee, in con­ In the next 4' weeks the growth of deposits sequence, reduced the lower end of the staff’s and RPD’s did accelerate, and the Desk became proposed tolerance range, making clear that it progressively more grudging in its management did not want any relaxation of pressure on the of nonborrowed reserves. By December 15 banks unless the aggregates were to turn very RPD’s were expected to grow at 12V2 to 13 per weak indeed. The 2-month RPD range was set cent over the interval, although deposit shifts at 4 to 11 per cent. It was understood that the toward banks with higher reserve requirements Treasury’s forthcoming sale of a long-term bond accounted for much of the excess above the might well constrain the Manager’s ability to FOMC’s 6 to 10 per cent range. For the 2 respond to incoming information on the money and credit aggregates. 5Following the Board’s decision on October 24 to After the meeting, new data on both Mx and implement the amendments to Regulations D and J as M2 suggested that both were turning out near of November 9, 1972, the range of tolerance for the the upper end of their respective tolerance RPD growth rate was modified to 9 to 14 per cent as a technical adjustment to the regulatory changes. ranges. Thus, the reins were tightened a bit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPEN MARKET OPERATIONS IN 1972 415 further on nonborrowed reserves. But member money market conditions presently needed to banks, confronted with the special uncertainties achieve the longer-term objectives. Accord­ that typically affect reserves during the holiday ingly, the Committee relied to a large extent season, turned heavily to the discount window. on tolerance ranges to trigger Desk responses This relieved the demands made on the Federal to undesired behavior on the part of the aggre­ funds market so that the Federal funds rate gates. averaged 5.34 per cent in the week of December There was growing appreciation during the 27, little changed from the previous week. year that this approach also involved important Pressures mounted in the following week, and problems. Specifying appropriate tolerance the rate averaged 5.61 per cent, about as in­ ranges implies an ability to discriminate in ad­ tended. vance between the underlying trend and the exogenous disturbances that appear to have a CONCLUDING COMMENTS large influence on monthly movements in pri­ As it functioned in 1972, reserve targeting vate demand deposits, in particular. At first proved a workable means of providing opera­ glance the use of a 2-month interval should help tional instructions to the Manager for conduct­ wash out some of the random variation. How­ ing System open market operations. The FOMC ever, the 2-month growth rate still depends established in advance the direction and magni­ primarily on the forecast of the single month tude of the Manager’s response to future devel­ following the FOMC meeting. The average ab­ opments in RPD’s and the aggregates. Its toler­ solute error in staff estimates of M1 for the ance ranges for the aggregates and Federal funds following month over the past 3 years was about rate constraints worked to produce a smooth 33A percentage points. Against this background System response to the strength that developed the Committee’s decision on occasion to base in Mx and the other aggregates during the year. its RPD’s, Mu and M2 tolerance ranges on the The Federal funds rate was no more volatile on more restrictive of the alternatives developed by a week-to-week basis than in other recent years. the staff seemed a useful way to help guard The new procedures caused no special problems against cumulative overruns in the aggregates. for financial markets. They also continued to There remains, of course, the possibility that generate clear signals of the System’s response exogenous influences will override for a time to the behavior of the aggregates, and to foster the fundamental behavior of the aggregates and thereby the portfolio adjustments consistent with cause an inappropriate System response. the System’s long-term objective of holding More fundamentally, the 1972 experience growth in them to moderate rates. again cast doubt on whether Mx alone was As experience with the reserve-targeting pro­ performing adequately as an indicator of the cedures accumulated, it became clearer that the thrust of monetary policy. Nonborrowed re­ Desk’s actions could not keep RPD’s within serves, of course, serve as the System’s point their tolerance ranges if deposits behaved quite of entry for influencing the dynamic portfolio differently than the staff had expected. The adjustments of both banks and the public. But tolerance ranges served as an important means these adjustments have an impact on various of prescribing the Desk’s response to new in­ components of bank balance sheets unevenly formation. The Committee’s emphasis on the over time. The three aggregates—Mu M2, and distinction between its tolerance ranges and the the credit proxy—frequently provide different staff’s projections gave a clearer definition to signals to open market operations for a number the response expected from the Manager. There of months. was widening recognition that the fairly long In 1972 the problem with Mx was that its lags between operations and the aggregates growth was quite lumpy, with big surges in called for the specification of desired growth February-March, July, and December. Even rates 6 months or so in advance. At the same changes over 3- and 6-month intervals showed time, skepticism continued about the System’s considerable instability over the past 2 years. ability to specify precisely either the reserve or This variability of Mx has probably tended to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

strengthen the Committee’s concern about the In an environment of strengthening demand for predictability of the relationships among Sys­ loans, banks were able to compensate for the tem-controlled variables, the economy, and the temporary slowing of other deposit inflows by aggregates over a longer time horizon. But issuing negotiable CD’s. During the second bimonthly tolerance ranges do not provide an quarter, for example, when demand and other escape from this handicap. Given the erratic time deposit inflows slackened noticeably, a monthly behavior of Mu the probability of $3.7 billion increase in CD’s kept proxy growth detecting a deviation from the desired long-term at above the 11 per cent first-quarter rate. growth rate during the inter-meeting period is The diverse behavior of Mu M2, and the likely to be low unless the deviation is quite credit proxy in 1972, as in 1971, provided the large. Even then such bulges are likely to be Committee with different signals at different considered unusual events and generate hopes times concerning the current thrust of monetary that they will be reversed quickly. policy. What is really needed, of course, is a Growth in the broad money stock, M2, was satisfactory specification of the interrelationship a bit more even over 1972 than that of Mx, among nonborrowed reserves, these aggregates, reflecting the greater stability of time deposit and the real economy. While this work goes growth relative to demand deposit behavior. In forward, the Committee is likely to continue the latter part of 1971 and early 1972 M2 showed relying on recent behavior of these aggregates little of the extraordinary weakness exhibited by to indicate departures from desired rates of Mx, which prompted aggressive System provi­ growth. On a monthly basis M2 and the credit sion of nonborrowed reserves. M2’s first-half proxy are about as erratic as M1? so that it is growth rate of 10.8 per cent suggested consid­ probably as difficult to specify meaningful 2erable monetary stimulus. Over the year as a month tolerance ranges for them as for M1. whole M2’s growth of 10.8 per cent was strong, However, both have been more stable over the compared with the 1971 growth of 11.4 per 3- and 6-month intervals than Mx in the past cent. 2 years, and they may give off better signals The expansion of the bank credit proxy re­ of undesired behavior over these somewhat mained consistently strong throughout most of longer time periods. This possibility deserves 1972. This measure of member bank liabilities further study in the System’s on-going efforts rose at an 11.6 per cent rate over the year, to improve its control over the monetary and compared with a 9.4 per cent increase in 1971. credit aggregates. □ 416 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Some Problems of Central Banking The advent of the 1970’s has not diminished contributed materially to the worldwide upward the range or the difficulty of the problems that trend of the price level and the persistence of central bankers face. In the international area, inflationary expectations. relationships among economies have been un­ Monetary and fiscal policies for managing dergoing rapid change, and our governments are aggregate demand now bear, and must continue now actively seeking to develop new interna­ to bear, the main responsibility for regulating tional rules to guide their future conduct in the the over-all performance of our national econo­ spheres of money and trade. As central bankers mies. At times the level or pace of total eco­ we have inevitably become involved in efforts nomic activity will continue to call for restrain­ to achieve urgently needed reforms of the inter­ ing policies, and at other times there will be national monetary system. We have also had need for stimulus. But I must caution that expe­ to wrestle anew with problems of recession, rience suggests that we will need to embark on economic overheating, and the stubborn per­ policies of active stimulation with greater care, sistence of inflation. unless we subdue the natural inclination to stay Today I want to focus my remarks on the too long with such policies. The ability and the problem of achieving greater stability in the will to make timely shifts in the thrust of fiscal performance of our domestic economies. There and monetary policies are of the utmost impor­ is no more crucial need for the stability and tance if these policy instruments are to play a welfare of our economies than to find more more constructive contracyclical role. effective methods for dealing with inflation and We need also to recognize that skillful, its causes. Restoration of international financial timely, and flexible use of demand management order also depends heavily on our handling of policies may not suffice to achieve satisfactory this problem. The policies that are needed to economic performance. To be sure, total halt inflation, without at the same time plunging spending in the economy can be slowed through our nations into economic stagnation or reces­ monetary and fiscal measures. But under the sion, extend beyond the normal province of institutional conditions that now prevail in many central banking. Skillful management of mone­ of our countries, shifts in these policies have tary matters nevertheless remains an indis­ a much stronger and more prompt effect on real pensable ingredient in reaching the objective of output and employment than on the pace of noninflationary growth that we all seek. inflation. The persistence of rapid advances of Since the end of World War II our economies wages and prices in the United States and other have developed a disconcerting bias toward in­ countries, even during recent periods of reces­ flation. A variety of influences—social, politi­ sion, has led me to conclude that governmental cal, and institutional—have been at work here. power to restrain directly the advance of prices But there can be no doubt that the speed and and money incomes constitutes a necessary ad­ vigor with which governments tend to deal with dition to our arsenal of economic stabilization recession, their considerable success in this en­ weapons, to be used occasionally—but never­ deavor, and their reluctance to act with similar theless vigorously—when needed. decisiveness to curb economic booms have There is another difficulty in relying exclu­ sively on broad monetary and fiscal policies for Note.—Remarks of Arthur F. Burns, Chairman, combatting cyclical fluctuations. Over-all re­ Board of Governors of the Federal Reserve System, straint, it is true, will in time slow any exuberant before the 1973 International Monetary Conference, Paris, France, June 6, 1973. expansion. It may not, however, curb suffi­ 417 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN □ JUNE 1973 ciently or in timely fashion the sectors of de­ or removed quickly and that will affect private mand that are leading to economic imbalance, spending decisions rather promptly. Many and thereby set the stage for later economic countries have recognized this need, and we at trouble. Over-all restraints that are sufficient to the Federal Reserve have sought to profit from curb expansion in aggregate economic activity their experience and studies, as well as from may do so by inducing sizable declines promptly our own research. in some areas, such as housing, and yet have Last year, for example, the Federal Reserve slight effect for some time in other areas, such Board completed a study of ways in which the as business investment. In particular, this is housing industry could be provided a degree of likely to be the case when reliance is placed insulation from the fluctuations brought on by mainly on monetary policy, and hence on sharp sharp changes in credit conditions. One of our changes in credit conditions, for purposes of major conclusions was that more stability in economic stabilization. residential construction would require less in­ Throughout business-cycle history the major stability in business investment. Toward this force making for economic instability has been end we proposed that consideration be given to the rather large fluctuation characteristic of the use of a variable investment tax credit. business investment. At times, of course, the When contracts or orders for new plant and spending and taxing policies of government equipment are advancing too rapidly, the tax have been a source of economic trouble, espe­ credit could be reduced, and when such invest­ cially in connection with wars and their financ­ ment is lagging, the tax credit could be raised, ing. On occasion, also, large changes in the thus providing a direct cost incentive for mod­ spending propensities of consumers have played erating cyclical movements in this area. their part in carrying aggregate activity to un- I continue to believe that the concept of a sustainably high, or unacceptably low, levels. variable tax incentive to business investment has But it is in the pronounced changes of the merit. Because of our need in the United States investment plans of business firms, with respect to encourage greater productivity, however, I both to their fixed capital and inventories, that would now recommend that the tax credit re­ much of the cyclical instability of advanced main in effect continuously and that it at no time industrial economies has originated. drop to zero. It could vary, perhaps, between Business investment is, of course, vital to the 3 or 4 per cent and 15 per cent, depending on growth in productivity, and the improvement in economic conditions. It would be important also material welfare, to which all nations aspire. to retain a decisive role for the Congress in Over the long run, incentives to invest therefore determining the specific rate of tax credit. This need to be enhanced. But it would be far better could be done by empowering the President to if a high average level of investment could be initiate changes in the investment tax credit, but achieved without the sizable fluctuations that making it subject to veto or approval—and have characterized the past. The general econ­ perhaps also to some modification—by the omy would benefit from a reduction of this Congress within a 45- or 60-day period. source of instability. Business enterprises would In recent months the Federal Reserve has also benefit from a more regular pace of invest­ faced the problem of dealing with a rapidly ment, since they would thus avoid a concentra­ escalating demand for bank credit, even though tion of expenditures at times when financing the monetary aggregates, by and large, have costs are high, when the capabilities of suppliers grown at a moderate pace. The upsurge in bank are strained, and when delivery and installation credit has been associated mainly with the de­ dates become more uncertain. mand for business loans, and it has been largely In view of our continuing problems in accommodated by the banks through the is­ achieving economic stability, we must persist suance of certificates of deposit in the money in the search for new and more refined tools market. Accordingly, the Board in mid-May of stabilization policy. Ideally, these measures announced a new restrictive action aimed spe­ should be of the kind that can be introduced cifically at this development. Since May 16 any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SOME PROBLEMS OF CENTRAL BANKING 419 further increase in bank issues of large certifi­ present need and of sound banking practice. I cates of deposit or similar money market instru­ repeat that appeal today. In doing so I recognize ments, over a base of $10 million or the amount that earnest efforts by commercial banks to then outstanding, whichever is larger, is to be moderate their rate of credit accommodation subject to an additional reserve requirement, will not, by itself, be a sufficient remedy. It presently set at 3 percentage points. At the same is no less important that our business leaders time any additional funds obtained abroad by recognize the need to limit their investment U.S. banks for domestic purposes became sub­ plans for the time being, and thus restrict their ject to reserve requirements on a comparable requirements for external finance, whether from basis, and the remaining interest rate ceilings the banks or the money and securities markets. on large certificates of deposit were suspended. Moderation in the growth of bank credit will The new marginal reserve requirement will be of little avail if the result is merely to raise the cost incurred by banks in obtaining augment open-market financing of an unsus­ additional funds through the money market for tainable increase in business spending. the financing of loan expansion. Banks doing In times like these it is also necessary that so will have the use of only 92 per cent of the public expenditure in the United States be re­ proceeds, rather than the 95 per cent that they strained to the maximum extent feasible. It is had before. The purpose of the marginal reserve necessary that our Government seek strenuously requirement is to restrain bank lending to busi­ to achieve balance, or actual surplus, in its ness on a market-oriented basis so that rationing income relative to its expenditure. And as far of funds by the banks to their large business as the Federal Reserve is concerned it is more customers may be accomplished through higher necessary than ever that we keep monetary costs, rather than by the imposition of arbitrary expansion down to a moderate pace, while we and inflexible interest rate controls. We expect at the same time avoid the kind of constriction that the result will be to moderate the will­ in credit markets that could lead to recession ingness of banks to accommodate their custom­ and the certainty of large stimulative measures ers through this source of financing. If it fails later on. We must avoid serious overheating of to do so sufficiently, we are prepared to consider the American economy now, and we must try additional actions that will limit further the to curb our inflation through methods that will availability of the funds that banks have at their not add to future economic instability. With disposal. reasonable cooperation by all leading groups in I have urged bankers in the United States to our society I am confident that we can achieve discipline the pace at which they are extending these goals. This is of critical importance to the credit in the interest both of our economy’s United States and also to the world at large. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Jeffrey M. Bucher, Member, eliminating impediments to competition among Board of Governors of the Federal Reserve suppliers of consumer credit and achieving, System, before the Subcommittee on Consumer insofar as is consistent with other policies, the Credit of the Committee on Banking, Housing broadest possible penetration by all credit and Urban Affairs, U.S. Senate, May 17, 1973. grantors in all fields of consumer credit. The Board shares the view stressed in the On behalf of the Board of Governors, I wish report that we should rely basically on vigorous to express our appreciation for having this op­ competition to provide optimal performance in portunity to comment on the report of the Na­ terms of the price and availability of consumer tional Commission on Consumer Finance enti­ credit. This was an important consideration in tled “Consumer Credit in the United States.” the shaping of the 1970 amendments to the Bank The Commission was created by Congress to Holding Company Act, and the Board has had “appraise the functioning and structure of the this principle very much in mind in carrying consumer finance industry” and to consider, out its responsibilities under that Act. among other things, the “adequacy of existing We have authorized bank holding companies arrangements to provide consumer credit at to establish subsidiary finance companies, and reasonable rates.” The subject is an important we have esatablished procedures that encourage one, and the report merits careful attention. de novo entry. Applications for such entry are Because of the breadth of the report, the processed by the Reserve Banks under delegated Board’s comments will focus on those issues authority. They are approved 45 days after the that appear of special importance or that bear Reserve Bank receives a copy of a notice of directly on the Board’s activities. The first sec­ the proposal published in newspapers in the tion of my testimony will deal with the report’s communities to be served, unless the Reserve recommendations aimed at strengthening com­ Bank determines that adverse factors require petition. Following this discussion will be suc­ more careful scrutiny of the application. In that cessive sections on interest rate ceilings, super­ event, the application is processed under the visory mechanisms, the electronic funds transfer procedures applicable to acquisition of going system, and Truth in Lending. concerns, which require more time to complete. As we read the report, it seems to suggest that where the possibility for de novo entry STRENGTHENING COMPETITION exists, as is now the case for bank holding Among the numerous recommendations in the companies, entry by acquisition of an existing report are several that are linked to the premise finance company should be prohibited. The that the best means of assuring adequate credit Board believes such an unequivocal prohibition for consumers at reasonable rates is to make would be unnecessarily restrictive and inconsist­ the markets for such credit more competitive. ent with the intent of Congress in enacting the The Commission concluded that some of the 1970 amendments to the Bank Holding Com­ laws and regulations designed to protect con­ pany Act. Although the Board’s procedures sumers, particularly at the State level, have had encourage de novoentry, we believe that acqui­ the unintended effect of inhibiting competition sition of an existing company in specific in­ in the granting of consumer credit and of need­ stances may also be pro-competitive. We have lessly segmenting credit markets. The Commis­ denied applications to acquire existing compa­ sion therefore urges a careful review of present nies that compete significantly with the applicant laws and regulations with a view toward in geographical areas they already serve. Per­ 420 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

haps because most applicants are aware of the Besides encouraging entry by savings and Board’s pro-competitive policies, however, loan associations, mutual savings banks, and most of the applications that have come before finance companies affiliated with banks, the the Board to acquire existing finance companies Commission recognizes the need to stimulate have involved companies that serve markets stronger interest on the part of banks themselves geographically separated from those served by in making small personal loans. Although some the applicant. In the few cases approved that banks are active in this market, the industry as did involve an overlap, the companies acquired a whole has a clear opportunity to improve had market shares so small as to rule out the services to consumers by making more loans possibility of an adverse effect on competition. of this type. This has been one reason why the When no significant amount of existing com­ Board has denied applications by bank holding petition would be eliminated, acquisitions of companies to acquire finance companies that existing companies can be pro-competitive. For would serve the same market as the subsidiary example, affiliation with the holding company banks. It should be recognized, however, that may assist the acquired company in raising the banks are likely to show only minimal interest funds it needs to compete more vigorously for in entering this business in States where appli­ additional customers and in recruiting and re­ cable rate ceilings are low relative to the cost taining competent, aggressive management. of making the loans. Moreover, once a bank holding company moves into new territory via an acquisition, it may start RATE CEILINGS de novo offices from the foothold it has ac­ quired. Thus, a bank holding company in North Throughout the report there is considerable em­ Carolina may gain the Board’s approval to ac­ phasis on the unfavorable effects of rate ceilings quire a consumer loan firm in Texas, and then in markets for consumer credit. The report’s might proceed to enlarge its subsidiary’s opera­ pro-competitive recommendations seek to tions in Texas through de novo expansion. Sub­ achieve, through a series of related steps, a stantial new competition can result from such market in which interest rates will be held to a process. The Board believes, therefore, that reasonable levels by competitive forces rather entry de novo and, under appropriate circum­ than by legal ceilings. The Board recognizes stances, entry by acquisition should continue to that judgments differ among Commission mem­ be allowed in order to achieve the Commission’s bers as to when or whether rate ceilings should goal of promoting competition. be raised or removed, but we agree with the The Board agrees with the Commission that Commission’s recommendation that “Policies competition in consumer lending markets should designed to promote competition should be be strengthened by permitting savings and loan given the first priority, with adjustment of rate associations and mutual savings banks to make ceilings used as a complement to expand the consumer loans. Relaxing restrictions on the availability of credit.” As has been amply lending powers of thrift institutions would also demonstrated in the mortgage market, rate ceil­ improve the stability of their earnings during ings tend to divert funds away from the con­ periods when rising market interest rates may trolled sector of credit if they are too low necessitate increases in the rates they must pay relative to other market rates. In implementing on deposits. But in expanding consumer lending the Bank Holding Company Act, the Board is powers for thrift institutions care must be taken encouraging entry of new lenders into the field, to avoid a serious shrinkage in the funds avail­ and we can hope that as the number of strong able for mortgage lending. This risk could be and viable competitors grows through this and lessened by limiting the percentage of assets other measures, rate ceilings ultimately will these institutions may devote to consumer loans become unnecessary in some States. If that along the lines suggested by the Commission, proves to be the case, perhaps other States will possibly with provisions for a gradual phasing- be moved to evaluate the competitiveness of in of the broader lending powers. their markets, as the report urges, and to con­ 421 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN □ JUNE 1973 sider whether modification or removal of their aspect of this assignment has been the drafting ceilings could strengthen competition. of appropriate regulations to implement the Act. Some of the Board’s actions have necessarily SUPERVISORY MECHANISMS produced disagreement and occasionally litiga­ The report of the Commission recognizes a tion. In one example of the latter, the Board growing public interest in obtaining fair and was extremely gratified recently when the U.S. effective remedies for abuses in the consumer Supreme Court upheld the “more-than-four-incredit field. Congress has responded to this stalment rule” issued under Truth in Lending. public interest by enacting measures such as the Recognizing that the Act contained a potential Truth in Lending Act. The Board of Governors loophole that permitted retail creditors to bury supported this initiative in the belief that it not credit costs in their cash prices and thereby only protected consumers but also helped to defeat the congressional purpose of the Act, the make credit markets more responsive to compe­ Board amplified the Act’s definition of consumer tition. Needless to say, congressional concern credit by requiring Truth in Lending disclosures about consumer problems is also reflected in the in any obligation repayable in more than four actions of agencies of Government, including instalments. The Board’s action in this regard our Board. The Board’s role in the conduct of was criticized by some persons as reflecting an monetary policy reflects our concern for con­ unduly paternalistic attitude toward the con­ sumers in a broad sense, but we are involved sumer. But the Board felt the rule was needed, in more direct efforts such as in prescribing and we are naturally pleased to see that view Truth in Lending regulations. Moreover, we vindicated. recognize the need to pay increasing attention Although our primary responsibility is the to the interests of consumers in connection with issuance of regulations implementing the Act, the supervision of banks. we have also felt that an important corollary The Commission questions whether an to the rule-making function is public education. agency that supervises banks, and thus tends to Two special educational efforts are worth men­ focus on issues of maintaining soundness and tioning here, one being the production and dis­ solvency, is capable of broadening its outlook tribution of the pamphlet, “What Truth in sufficiently to give proper consideration to con­ Lending Means to You.” Over three million sumers. The Board believes it is entirely possi­ copies of this pamphlet have been distributed ble to reconcile the need to maintain sound, in an English-language version, another half­ strong banks with the need to ensure that banks million in a Spanish-language edition. The are treating their customers fairly. We recog­ Board also has available for distribution without nize, however, that the Commission’s question charge an informational package on Truth in is a valid one, shared by others who are con­ Lending that has been extremely popular with cerned with consumer protection, and it there­ schools, at both the high school and the college fore deserves serious consideration. It may be level. useful in this connection to mention at this point Aside from Truth in Lending, however, there a few examples of actions by the Board to are other activities of the Board on behalf of protect consumers and to improve the financial consumers that I believe are too often over­ services available to them. These examples are looked. In acting on holding company forma­ not offered in a spirit of self-congratulation, tions and acquisitions, for example, one of the although we are proud of our record, but rather crucial decisional factors is the extent of public to indicate the strong similarities between the benefits that can be expected to flow from each goals of the Commission and those of the Board. application. The Board is very much aware of Let me first say a word about the Board’s the importance of such decisions in fostering implementation of the Truth in Lending Act. a competitive banking system that will serve We have been pleased over the years to have consumers better. learned from various members of Congress of It may be helpful, as well, to cite examples their satisfaction with the job the Board has done of specific Board actions to correct abuses or under that legislation. The most demanding improve financial services to the public. Re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 423 cently, the Board ruled (Bulletin, Jan. 1973, BCC, rather than extending the authority to an p. 19) that applications by a bank holding com­ agency with more diverse consumer protection pany to underwrite credit life and credit accident responsibilities such as the Federal Trade Com­ and health insurance will be approved only if mission. the applicant demonstrates that benefits to the The Board recommends against the Commis­ consumer or other public benefits will ensue. sion’s suggestions that the BCC be authorized Such a showing normally is made by a projected to “supervise all examination and enforcement reduction in rates or by an increase in policy functions under the Consumer Credit Protection benefits, due to bank holding company per­ Act, including Truth in Lending” and that the formance of this service. BCC be authorized to intervene in agency ac­ In 1970, in an action to help savers, the Board tions on mergers, acquisitions, and other appli­ issued an interpretation of its Regulation Q cations. Both of these proposals would be du­ (Bulletin, Mar. 1970, p. 279) requiring plicative of functions now being performed by member banks to inform their customers who the Federal bank supervisory agencies. The maintain time or savings accounts of the practical effect would be to slow down the methods used in the computation and payment decisional process and add to its cost. In addi­ of interest on those accounts. The interpretation tion, as you know, the Justice Department has provides that, if a member bank makes a change statutory authority to offer comments on bank in its methods that will be less favorable to the merger and holding company cases and thereby depositor, then notice of the change should be supplements the Board’s own strong interest in mailed to each depositor at his last known the questions of concentration and competition. address. Moving to the Commission’s recom­ HOLDER-IN-DUE-COURSE DOCTRINE mendations in the supervisory area, the report proposes that Congress create a Bureau of Con­ The Commission recommends that the holdersumer Credit (BCC) “to issue rules and regula­ in-due-course doctrine (HIDC) and waiver-oftions and supervise all examination and en­ defense clauses in consumer credit transactions forcement functions under the Consumer Credit be prohibited. It also proposes subjecting a Protection Act, including Truth in Lending.” lender to all claims and defenses of the borrower This proposal would entail overlapping respon­ arising from the purchase of goods with the sibilities, potentially burdensome to financial proceeds of a loan, if the borrower was referred institutions and troublesome for monetary policy to the lender by the vendor and he extended and the evolution of the payments mechanism. the credit pursuant to a continuing business As an alternative, the Board recommends that relationship with the vendor. a single bank supervisory agency be given the Although there are differences of view among responsibility to write consumer protection rules members of the Board on the broad issues raised affecting banks and other Federally supervised by these recommendations, we would like to financial institutions. Through their long expe­ comment on the narrower question of how they rience with the unique character of the institu­ should apply to credit cards. tions under their supervision, the Federal bank­ The Board is seeking to encourage develop­ ing agencies possess the necessary background ment of electronic transfer systems that will and expert knowledge to formulate rules sensi­ result in a more efficient payments mechanism, tive to the complex roles of these institutions reducing the need for costly check handling. in the national economy while still providing The credit card will probably play a key role protection for consumers. in such a transfer system, and any limitations If Congress disagrees with this approach, on the HIDC doctrine to protect consumers however, the Board believes it would be better should be adopted with care so as not to impair to place the consumer-protection rule-writing the usefulness of the credit card as a means of authority affecting banks in an agency that deals payment. Two general principles may be useful with credit problems exclusively, such as the in accomplishing this objective. First, for small Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN □ JUNE 1973 transactions where credit cards are used as a action is taken, the innovative capabilities of convenient substitute for cash, we should avoid banks and other financial institutions to improve enlarging the purchaser’s rights simply because money transfer services should be recognized he uses his card. Second, the liabilities of card and given opportunity for development. issuers should bear some reasonable relationship Finally, the costs of the transfer system and to their ability to monitor performance by mer­ the benefits of participating in it should be chants whose sales they finance. These princi­ equitably distributed among all of the institu­ ples suggest that credit-card issuers should be tions involved. The Board believes in compara­ subject to cardholders’ claims and defenses ble treatment for financial institutions having against merchants only where the transaction like powers, but the existing situation does not exceeds a dollar limit and takes place within meet this standard. Some institutions, namely, the market area served by the issuer. banks that are not members of the Federal Reserve System, have a competitive advantage because the reserves they may be required to ELECTRONIC FUNDS TRANSFER SYSTEM carry are, in effect, earning assets: Government (EFTS) obligations and correspondent balances. Re­ The Commission’s concern about the possibility serves maintained by member banks with the of restraints of trade emerging as the payments Federal Reserve, on the other hand, are non­ system evolves toward the electronic transfer of earning assets. Nevertheless, nonmember banks funds is well taken. The Board shares this are accorded certain Federal Reserve checkconcern and has taken positive steps to make clearing services deemed essential to the pub­ its views known to Congress and the public. lic’s need for prompt money payment. If, in The Board has outlined three general princi­ the future, extensive money transfer powers are ples it believes should apply. First, so far as developed for savings institutions, the extension public participation and support are concerned, of the benefits of the payments mechanism, the Board believes there should be a single, whether conventional or electronic, to such in­ integrated nationwide mechanism for efficient stitutions, without their assuming a fair share transfer of funds. The existing system, using of the costs, would increase existing inequities. checks and drafts and functioning through com­ mercial banks and the Federal Reserve Banks, TRUTH IN LENDING is substantially of that character. Second, even allowing for the existence of We are gratified that a number of the Commis­ private clearing arrangements, the Board be­ sion’s suggestions mirror recommendations lieves that the public system using check or made by the Board in its annual report to electronic transfers of funds from one institution Congress on Truth in Lending. For example, to another should be such as to insure that the the Board has recommended for some time that conditions of entry into a general clearing ar­ large extensions of credit for agricultural pur­ rangement are fair and that equitable treatment poses should be exempt, even though they in­ is assured for institutions with similar powers volve a security interest in real property. Other and responsibilities. The presence of a public business credit is exempt, and creditors argue agency, such as the Federal Reserve, in any that the very nature of many agricultural credit cooperative arrangement for transferring funds transactions (which often involve advances and between institutions is one way of insuring that payments for which both the time and amount the public interest will be taken into account are unknown at the time of the initial agreement) and that no private clearing arrangement may makes them unsuited for meaningful disclosure. be used to protect or enhance the market posi­ The Commission recommends, as the Board tion of the participating banks at the expense tentatively suggested, that amounts over $25,of others. 000 should be exempt. In taking this position the Board recognized, On the other hand, there are other recom­ as did the Commission, that whatever public mendations with which we disagree. For ex­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 425 ample, the Commission would permit those who An appendix to this statement comments fur­ offer open-end credit, such as revolving charge ther on the Commission’s proposals on Truth accounts, to advertise only the periodic in Lending.1 (monthly) rate and the annual percentage rate. The Board has outstanding a proposal that CONCLUSION would trim the requirements of disclosure for open-end credit, but there are differences be­ It is perhaps inevitable that judgments will differ tween the Board’s proposal and the Commis­ regarding any set of proposals as wide ranging sion’s recommendation. For example, the Board as those of the Commission. But disagreement thought the present statutory requirement that on specific proposals should not obscure the fact any “free-ride” period be shown is a good one, that the report represents a thoughtful and con­ but the Commission would not include this structive effort to achieve a goal on which requirement. Again, various revolving credit perhaps we can all agree—adequate flows of plans may feature the same annual percentage credit to consumers on terms that are fair and rate; yet, because of differences in the calcula­ reasonable. □ tion of finance charges, one plan may be more costly than another, and so the Board has reser­ Copies of the appendix referred to herein are avail­ able upon request to Publications Services, Division of vations about the value of disclosing the rate Administrative Services, Board of Governors of the alone. Federal Reserve System, Washington, D.C. 20551. Statement by J. Dewey Daane, Member, Board justment, which greatly improves the interna­ of Governors of the Federal Reserve System, tional competitiveness of U.S. goods. It is cer­ before the Subcommittee on International tain to have large effects even though the size Finance and Resources of the Committee on and timing of the expected increases in exports Finance, U.S. Senate, May 30, 1973. and the slowing of import growth cannot be foreseen with precision. I am pleased to be here today to testify on behalf The structure of our balance of payments is of the Board of Governors of the Federal Re­ such that we need to earn a substantial surplus serve System. It is useful to have these hearings on current international transactions— at this time. In recent weeks, as the chairman specifically on merchandise trade—in order to of this subcommittee has noted, there has been balance the net outflows of Government aid and some renewed uncertainty in foreign exchange private capital that are natural and desirable for markets about the future of the U.S. dollar. The a wealthy country with a well-developed capital restoration of confidence in the dollar requires, market. But the dominant tendency in our inter­ basically, a substantial improvement in our in­ national transactions from about 1965 through ternational balance of payments. These hearings 1972 was a persistent worsening in our current provide an opportunity to make clear that the balance—and especially our trade balance—to outlook for the U.S. international payments the point where these balances moved into position, and hence for the dollar, is consid­ deepening deficit. Last year, as you know, we erably better now than it has been for some time. had a trade deficit of almost $7 billion and a The outlook has been greatly improved by deficit on all current and long-term capital the exchange-rate realignments of 1970-71 and transactions combined of over $9 billion. early 1973. Altogether, the U.S. dollar has been World business-cycle conditions were ad­ effectively devalued against other currencies by verse from a U.S. balance of payments view­ about 17 per cent since mid-1970, and by sub­ point during 1972. Last year our economy and stantially more than that against some of our our imports were vigorously expanding while strongest competitors. This is a very large ad­ demand abroad, including demand for our ex­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN □ JUNE 1973 ports, was still rather slack. But even after been solid gains. The value of nonagricultural making a rough allowance for the adverse cy­ exports in January-April 1973 was 14 per cent clical position, the underlying trend-rate of our larger than it had been 6 months earlier, a trade deficit last year was probably at least $4 near-record rate of increase. New foreign orders billion. Compared with the mid-1960’s, when for machinery in the first quarter of 1973 were we had a trade surplus averaging more than $5 up by 16 per cent from the third quarter of last billion a year, there had been a deterioration year. Meanwhile the value of total imports, after on trade account of around $10 billion. U.S. rising sharply through January, has not risen at imports of finished manufactures in particular all since then, despite booming domestic de­ rose rapidly during this period, while the U.S. mand, a sharp rise in prices of imported raw share of world exports of manufactures declined materials, and a continuing rise in imports of steadily. petroleum. The adverse trend in our trade balance from Thus, the increased competitiveness of U.S. 1965 to 1972 is attributable to a variety of goods as a result of devaluation is beginning factors. First, after 1965 the United States ex­ to have perceptible beneficial effects on both our perienced greater increases in costs and prices, exports and our imports. The corresponding and lower rates of productivity growth, than opposite effects are beginning to be evident in most other industrial countries. Second, this the trade figures of other countries, notably occurred at a time when a number of other Japan, where import expansion has accelerated countries—European countries, Japan, and and export growth is slowing down. various other countries in Asia—were reaching Later this year and in 1974 we expect to see a point at which they had built up the capability further gains in our foreign trade balance, not to take advantage of existing price-cost dif­ only because of the cumulating effects of our ferentials. Third, and more recently, rapidly strengthened competitive position but also be­ rising imports of petroleum have added to our cause business-cycle conditions are likely to be foreign expenditures. moving in our favor. Growth in the U.S. econ­ Now, as a result of the exchange-rate omy will be slowing to a more moderate and changes, together with other factors, one can sustainable rate from now on, while expansion be cautiously optimistic. The worsening of the abroad is likely to be continuing vigorously. It trade balance was halted during the course of seems clear that there can be a substantial im­ 1972. The low point was reached early in that provement in the trade balance beginning in this year when the trade deficit approached $8 billion year and gathering momentum in 1974 and at an annual rate. The U.S. share in world 1975; by that time we should be experiencing exports of manufactures stopped declining in a sizable trade surplus for the first time since 1972. the late 1960’s. So far this year, there has been a marked The reallocation of resources that follows improvement in the trade balance. The annual upon sharp changes in exchange rates and com­ rate of deficit on trade in January-April 1973 petitive positions is, of course, not instant or decreased sharply to around $2 billion, com­ automatic. It takes time and it takes effort. pared with $6.8 billion for 1972 as a whole. Sellers must alter their marketing strategies. Much of this recent improvement reflects an Buyers must shift to new suppliers. New in­ exceptionally large bulge in agricultural exports vestment decisions have to be taken and imple­ that is likely to prove temporary, so that the mented. The lags in this process are consid­ underlying gain is not nearly so large as the raw erable. That is why we are only now beginning figures suggest. We should be prepared for some to experience substantial benefits from the temporary setback during the months ahead, as Smithsonian exchange-rate changes of 1971. the dollar prices of imports will be pushed up The benefits of the early 1973 exchange-rate further in delayed reaction to the devaluation changes will mainly become evident in 1974 and while the volume of imports will not yet have 1975. fully reacted to the price rise. But there have So far I have been discussing primarily the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 427 way we expect the trade balance to evolve in cannot rule out the possibility of occasional the period ahead. Of course, there will also be periods of uncertainty in foreign exchange mar­ changes in other current transactions and in kets, as the experience of recent weeks indi­ flows of private long-term capital. As to non­ cates. The present regime of floating exchange trade current transactions, the balance on these rates provides a useful buffer during such epi­ has tended to change rather slowly. We should sodes; surplus countries can avoid the massive be able to rely on further strong gains in returns inflows of funds that caused them serious do­ from U.S. investments abroad. In recent years, mestic difficulties for monetary management however, these gains in income receipts have earlier this year and thus can prevent the devel­ tended to be largely offset by mounting interest opment of a crisis that could induce large payments on our debts to foreigners—especially changes in currency par values. to foreign official holders of liquid dollar claims More importantly, the main impetus for very on the United States. large speculative movements has been removed Flows of investment capital are volatile and by the adjustment of exchange rates to levels difficult to predict. Over time, however, the that are now widely regarded as realistic—and influence of the recent exchange-rate changes will, we think, come to be increasingly recog­ on these flows should also contribute to im­ nized as realistic—as the U.S. payments deficit provement in the U.S. balance of payments. diminishes. Once the trend of underlying im­ American firms may find that there is less need provement becomes clear to the market, the than before to meet the competition by manu­ residual basic deficit from then on should be facturing abroad; their U.S. plants can now rather easily covered by a return flow of short­ deliver U.S. goods abroad at much lower prices term funds that went abroad during earlier in terms of the currencies of the importing periods of currency speculation. countries. By the same token, foreign producers What further actions are needed by us and may increasingly find that it now makes sense by other countries to insure that the needed to think in terms of establishing plants here. adjustment toward better international balance Portfolio investors are also likely to be fa­ will in fact take place? vorably influenced as our over-all balance First, the inflationary pressures arising from moves toward equilibrium. In particular, foreign excessively rapid domestic economic growth investors should be encouraged to continue the and credit expansion must be curbed so that our large purchases of U.S. corporate stocks and prices and costs do not again get out of line bonds that have become an important feature with those of other countries. In addition, suffi­ of our balance of payments. More generally, cient resources will need to be available to meet there will be a reversal of the tendency to the increased demands coming from export ex­ borrow dollars for the purpose of switching into pansion and import substitution. Second, U.S. foreign-currency-denominated assets now that businessmen must take advantage of the new the possibility of large gains from exchange-rate competitive opportunities, vigorously and changes has been taken out of the picture. imaginatively. Third, foreign countries need to On the other hand, the phasing out of existing be willing to accept some reductions in their controls on outflows of U.S. capital will tend foreign trade surpluses. They must not manipu­ to work in the other direction. On balance, this late export incentives or barriers to import in country is likely to remain a net exporter of both ways that would tend to frustrate the adjustment. private and Government capital to the less-de­ Fourth, we and other countries need to pursue veloped world, which is surely the appropriate the search for a reformed international monetary posture for a wealthy country. system that provides a satisfactory international During the transition period when interna­ adjustment process. tional transactions are gradually coming into In all of these areas, there is reason to be better balance, the United States will still have encouraged. On the domestic front, we have a deficit—albeit a diminishing one—on current recently had a very disappointing revival of and long-term capital transactions. And we inflation. But the rapid increase in prices has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN □ JUNE 1973 reflected, in part, special factors—including the U.S. businesses are already beginning to take food shortage, the transitional shift from Phase advantage of their improved competitive posi­ II to Phase III, and the dollar devaluation—ef­ tion relative to foreign producers. This is evi­ fects that should soon subside. Over a somewhat dent in the figures for rising exports and export longer period, our inflation has been less than orders and in the increasing gains of U.S. prod­ that in other leading countries. Our consumer ucts against foreign products in our own mar­ price index rose by 5 per cent in the year from kets—for example, automobiles. Even more April 1972 to April 1973, while the rise in vigorous and more imaginative efforts in this European countries and Japan ranged from 6V2 area are needed. to 10 per cent. Unit labor costs have generally Foreign countries are showing a willingness been rising faster abroad than they have here. to help bring about the needed adjustments. Our hope and expectation is that inflationary They have cooperated in achieving a more real­ pressures here will subside in the months ahead istic pattern of exchange rates. Japan, in partic­ as economic expansion slows to a more sustain­ ular, is making a real effort to reduce its enor­ able rate and as the special problem of food mous trade surplus and to shift the focus of its supplies recedes. economic growth away from expansion of ex­ In this connection, the hectic pace of con­ ports and toward badly needed infrastructure sumer expenditure experienced during this past investment at home. winter seems to have moderated somewhat in The needed trade adjustments are not really April and May. Housing starts have receded very large in the aggregate relative to the total recently to a more sustainable pace. The deficit volume of trade and economic activity, although in the Federal budget is being reduced well sizable adjustments may be required for partic­ below earlier estimates, and monetary policy ular industries in some countries. The present has exerted increasing restraint. expansive business climate abroad is favorable The main danger of continued strong infla­ for the needed adjustments by foreign countries. tionary pressures arises from the possibility of They do need to slow their export growth and an escalation of wage demands in reaction to accelerate the rise in their imports, but they do the recent bulge in price increases and from the not have to suffer actual cutbacks in exports. possibility of an excessively large increase in Indeed, at present they find that larger and business spending on fixed investment and in­ cheaper imports are a welcome contribution to ventories. But so far collective bargaining the relief of inflationary pressures. agreements have resulted in wage increases rea­ In summary, I think we can feel some confi­ sonably in keeping with the 5V2 per cent national dence that the changes in international competi­ standard. And there is hope that business tive conditions that have resulted from the exspending decisions will be tempered by good change-rate changes of the past 3 years will sense and by the considerable tightening of bring international transactions much nearer to credit conditions over the past few months. balance over the next 2 or 3 years. The Federal Reserve has taken further actions It is true that we had a near-record deficit, within the past 2 weeks to slow down the on the official reserve transaction basis, of $10.2 expansion of bank lending to business. On May billion during the first quarter of 1973. But all 16, the Board announced the imposition of of this deficit occurred before mid-March, as marginal reserve requirements on large-denom­ a result of heavy speculative flows before the ination certificates of deposit and on other new structure of exchange rates was established. money market instruments issued by large banks Since mid-March we have had an over-all sur­ in order to moderate the expansion of bank plus on international transactions. During this lending to major business corporations. Chair­ period, the continuing basic deficit on current man Burns has written to all banks urging them and long-term capital transactions has been to join in a concerted effort to curb bank credit more than offset by a return flow of liquid funds. expansion. For the longer run, the outlook seems to be So far as exports and imports are concerned, promising for the achievement of a sufficiently Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 429 flexible international adjustment mechanism so the Deputies of the Committee of 20 again that we need not again experience the very large demonstrated that, while international monetary and persistent international imbalances that have reform involves difficult technical and policy been so troubling during the past few years. We problems, there exists a will to surmount these are progressing down the road toward interna­ problems and to create a new and more effective tional monetary reform. Last week’s meeting of international monetary system. □ Statement by Andrew F. Brimmer, Member, merce to those “affecting” such commerce. Board of Governors of the Federal Reserve Other sections of Title II would, as the FTC System, before the Subcommittee on Consumer has noted, give the FTC important new powers Credit of the Committee on Banking, Housing to use on behalf of consumers, including pre­ and Urban Affairs, U.S. Senate, June 6, 1973. liminary injunction authority and autonomy in litigation. The Board of Governors welcomes the opportu­ Moving to Section 212, however, the Board nity afforded by the Subcommittee on Consumer encounters problems both substantive and tech­ Credit to comment on S. 356 and S. 1052. Both nical. In an effort to make the regulation of the bills reflect a continuing public demand for fair consumer credit field uniform with regard to treatment in consumer transactions, and in that unfair or deceptive acts or practices, Section 212 respect are the latest in a line of consumer-pro- removes the present exemption for banks from tection legislation, which includes Truth in regulation by the FTC. Thus, banks would be­ Lending and the Fair Credit Reporting Act. In come subject to the regulatory authority of the my testimony today, I shall first discuss the bill FTC in the area of consumer credit. Enforce­ recently reported by the Senate Commerce ment of the rules would be delegated to the Committee and referred to your committee, S. Federal banking agencies, but the FTC would 356. I shall then comment on S. 1052, the have the right to call back such delegation at “Truth in Savings Act.” any time, and thus take over the enforcement duties as well, if it finds that such action is S. 356: MAGNUSON-MOSS required to prevent a bank from using unfair CONSUMER PROTECTION WARRANTIES or deceptive acts or practices—or, as the Com­ AND FEDERAL TRADE COMMISSION merce Committee’s report puts it, “If it is IMPROVEMENTS shown that (the enforcement powers) are not being effectively carried out” by the relevant The purpose of S. 356, as stated in the report Federal agency. of the Committee on Commerce, is “to improve The Board has commented in detail on Sec­ the position of the consumer in the marketplace tion 212 in a letter dated May 14, 1973, to by making the Federal agency responsible for Senator Sparkman. In addition, the Board sub­ his economic well being (the F.T.C.) more mitted its views on related legislation to the effective . ..” In large part, the bill covers Chairman of the House Committee on Interstate areas outside the Board’s range of respon­ and Foreign Commerce in a letter dated April sibilities: consumer product warranties and 3, 1973. Both of these letters are attached, and Federal Trade Commission (FTC) powers. I should like to request that they be made a The Board has no suggestions to make on part of the record of this hearing.1 Title I, which provides disclosure standards for written consumer product warranties and for enforcement of these standards. Similarly, we have no problems with Section 201, which 1 Copies of the letters are available upon request to Publications Services, Division of Administrative Serv­ expands the jurisdiction of the Commission ices, Board of Governors of the Federal Reserve Sys­ from acts and practices “in” interstate com­ tem, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 FEDERAL RESERVE BULLETIN □ JUNE 1973 The Board concurs in the arrangement set savings and loan associations, and credit unions, forth in Section 212, dividing enforcement au­ play a complex role in the national economy. thority among the three Federal bank supervi­ Banks, of course, are a principal fulcrum of sory agencies. This is, after all, nothing more monetary policy, and they are at the center of than the enforcement pattern established by the the payments mechanism. Judging by the trend Truth in Lending Act. Given the successful in the evolution of the payments system, non­ history of this enforcement arrangement, how­ bank financial institutions may also have an ever, the Board objects to the additional provi­ increasingly important role to play in the sys­ sion in Section 212 requiring redelegation to tem. There is ample reason for adequate rules FTC of the enforcement powers whenever FTC to protect customers of these institutions, to be determines such action is necessary to protect sure, but the rules must be carefully drawn to consumers. This unusual concept reflects a de­ assure that the legitimate interests of consumers gree of uncertainty about the wisdom of the are balanced against the need for a smoothly enforcement arrangement. We believe it would functioning monetary and payments system. be far preferable for Congress to make a Should there be disagreement with the desira­ straightforward assignment of the enforcement bility of placing the rule-writing authority with powers in Section 212 as it has done for Truth a single banking agency, the Board has indi­ in Lending. If the Truth-in-Lending-type en­ cated that a second-best approach would be for forcement approach should later appear to be Congress to designate an agency responsible for ineffective—an outcome we believe is re­ consumer credit exclusively. This could be the mote—then Congress could readily amend the Bureau of Consumer Credit proposed by the Act to provide a new arrangement. National Commission on Consumer Finance. With regard to rule-writing authority, the The report of the Senate Commerce Commit­ Board is deeply concerned with the need con­ tee argues that it is necessary to give the FTC sumers have for effective protection against un­ consumer-protection rule-writing authority over fair acts or practices in the consumer credit banks for three reasons. First, to remove an field; the Board has been vigorously imple­ “anticompetitive situation” that exists because menting the Truth in Lending Act—occasionally not all lenders are now supervised by the FTC; in the face of considerable opposition from second, because “presently existing Federal fi­ various quarters. For example, the Supreme nancial regulatory agencies either do not have Court, in a case involving sale of magazine the power or the desire to promulgate and en­ subscriptions, recently sustained the Board’s force strong and uniform rules and regulations action in applying the Act to consumer credit prohibiting unfair or deceptive acts or prac­ that involves more than four instalments—even tices”; and third, because “it makes sense that though the Act does not explicitly refer to such the Commission should be empowered to issue credits unless they include a specific finance rules and regulations to prevent unfair or de­ charge. Therefore, we know some of the prob­ ceptive acts or practices on the part of all lems, and some of the solutions, in the area business enterprises.” of consumer credit. Out of this experience—and The possibility that an anticompetitive situa­ the Board’s experience as a whole—has grown tion might grow out of the regulatory arrange­ the conviction that an optimal approach to the ment the Board recommends is remote—cer­ problem of protecting the customers of financial tainly less than the committee’s report would institutions requires special knowledge of the lead us to believe. It is true that two agencies—a ways in which such institutions operate. bank supervisor and the FTC—would be writing We believe that the task of dealing with this the rules, but there is no reason to believe that problem should be given to one of the Federal the two agencies would not consult closely with bank supervisory agencies. The reason for the one another in the formulation of their respec­ Board’s preference for this approach lies in the tive rules. In fact, the ultimate rules that unique character of financial institutions. Banks emerged from this cooperative effort might well particularly, but also mutual savings banks, prove superior to an individual agency’s efforts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 431 simply because two independent viewpoints will payments system is still unclear. The way to be brought to bear on a particular problem or assure that the evolution of the payments system set of problems. If Congress is concerned about continues smoothly and innovatively is for a possible lack of uniformity, in any case, it Congress to give a single banking agency the could provide for a formal consultation authority to write rules against unfair and de­ process—as, in fact, does Section 212. ceptive consumer practices for Federally super­ The Commerce Committee questions, as did vised financial institutions. the National Commission on Consumer Fi­ nance, whether an agency that supervises banks, S. 1052: “TRUTH IN SAVINGS ACT” and thus tends to focus on issues of maintaining Because of our experience in the implementa­ soundness and solvency, is capable of broaden­ tion of the Truth in Lending Act, the Board ing its outlook sufficiently to give proper con­ believes that full disclosure of credit terms, sideration to consumers. The Board believes while perhaps not the ultimate consumer pro­ that the need to maintain sound, strong banks tection measure, is a highly useful procedure is fully compatible with ensuring that banks are to help guide consumers in the marketplace. treating their customers fairly. Our viewpoint, From the economic standpoint, it is undeniably of necessity, is largely determined by our own helpful in increasing competition among the experience. At the Board we know that con­ various vendors of credit. Similarly, we believe sumer concerns rank equal to our other concerns it is also likely to be useful and pro-competitive and that the interests of consumers are taken to require the full disclosure of the terms and into account in those actions of the Board af­ conditions under which interest is payable on fecting their welfare. We do want safe and savings deposits of all kinds. sound banks, and we also want to make sure There has already been some progress made that bank officials understand that operating a in this area by the Board and the other Federal safe and sound institution is in no way incon­ agencies responsible for supervising financial sistent with fair treatment of their banks’ cus­ institutions. For example, in February 1970 the tomers. Board issued an interpretation to its Regulation Finally, if simple uniformity were the only Q requiring member banks to inform their cus­ criterion, we would agree that it would make tomers who maintain time or savings accounts sense to have one agency write consumer pro­ of the methods used in the computation and tection rules for all firms no matter what their payment of interest on these accounts2. The line of activity. But in the case of financial interpretation provides that if a member bank institutions, we believe the principle of unifor­ makes a change in its methods that will be less mity must be weighed against the concern for favorable to the depositor, then notice of the monetary policy and the payments mechanism. change should be mailed to each depositor at As you know, the Board is vitally interested his last known address. in the way in which the payments mechanism This interpretation, as well as others issued should evolve, an interest arising out of our by the Board that seek to prohibit deceptive responsibility to provide for the efficient transfer advertising of interest rates, has helped to pro­ of funds in the economy. Financial institutions vide meaningful disclosure of the terms of sav­ are currently in a transitional stage between the ings and time accounts offered consumers by use of checks for settlement and an electronic member banks. Similar policies have been payments system. A number of innovations adopted by the Federal Deposit Insurance Cor­ promise to become a part of the future system poration and the Federal Home Loan Bank of electronic payments, including credit cards Board with respect to the institutions under their and point-of-sale terminals for on-line computer supervision. Nevertheless, the Board recognizes operation. There is no question that consumers that more can be done in the way of providing will be the ultimate beneficiaries of the changes for uniform disclosures of savings plans and that are beginning to be made in the payments field, but at this point the final shape of the 2 See March 1970 Bulletin, p. 279. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

making these standards applicable to all deposi­ As you know, S. 1052 would give the Board tory institutions, bank and nonbank. The ap­ the responsibility of writing rules to implement proach embodied in S. 1052 would give con­ the Act. The Board on previous occasions has sumers the opportunity to assess the relative recommended that another agency be assigned merits of all available savings plans and select the rule-writing responsibility under Truth in the one that best suits their requirements. Lending. However, as I indicated earlier, we While the Board supports the enactment of believe the authority for writing broad conlegislation along the lines of S. 1052, we believe sumer-protection rules affecting financial insti­ care should be taken to insure, first, that unnec­ tutions should be placed in a bank supervisory essary burdens are not placed on financial insti­ agency. The limited kind of regulatory activity tutions, and, second, that the required disclo­ that would be required under S. 1052 is one sures are as clear and simple as possible. The that perhaps ideally should be lodged in an Board believes it would be helpful to consumers agency such as the Bureau of Consumer Credit if deposit-taking institutions were required to proposed by the National Commission on Con­ disclose the rates, terms, and conditions affect­ sumer Finance. Lacking such an agency, how­ ing their savings deposits, just as it has proven ever, the Board recommends that the rule-writ­ helpful to consumers for lenders to disclose the ing authority contained in S. 1052 should be rates, terms, and conditions on extensions of given to one of the bank supervisory agencies. consumer credit. Specifically, the Board be­ Of course, if the authority is given to the Board, lieves depository institutions should be required every effort will be made to implement the to disclose an annual percentage rate. It may legislation to assure that consumers get the also be helpful to require the disclosure of a benefits intended by Congress. periodic percentage rate. Because of the possi­ bility that consumers may be confused by the EFFECTIVE DATE disclosure of a multiplicity of rates, the Board Finally, the Board is concerned that sufficient questions the usefulness of requiring lenders to lead time be provided before S. 1052 becomes disclose “the annual percentage yield,” which effective. Many complicated regulations will be would be a hypothetical dollar figure represent­ required if the legislation is to be effective; ing the compounded earnings on $100 for 1 nearly a year was required to draft Regulation year. The Board’s views on these and several Z, which accompanied Truth in Lending. other technical aspects of the bill are set forth Moreover, some period should be provided to in the appendix.3 allow savings institutions to adjust to the Act’s 3 Copies of the appendix are available upon request requirements. Therefore, the Board recom­ to Publications Services, Division of Administrative mends that a minimum of 12 months be pro­ Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. vided before the bill takes effect. □ 432 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Membership of the Board of Governors of the Federal Reserve System, 1913-73 APPOINTIVE MEMBERS' Federal Reserve Date of initial Other dates and information relating Name district oath of office to membership2 Charles S. Hamlin . .Boston ...............Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936, on which date his successor took office. Paul M. Warburg ..................New York ___ __do......... Term expired Aug. 9, 1918. Frederic A. Delano .......__Chicago .......... __do......... Resigned July 21, 1918. W. P. G. Harding __Atlanta ............ __do......... Term expired Aug. 9, 1922. Adolph C. Miller .......... __San Francisco.. __do......... Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936, on which date his successor took office. Albert Strauss ............... __New York ___ Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah __Chicago .......... Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Platt .................. __New York ___ June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills ................. ....Cleveland ...... Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell .......... ___Minneapolis ... May 12, 1921 Resigned May 12, 1923. Milo D. Campbell ........ __Chicago .......... Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger __Cleveland ....... May 1, 1923 Resigned Sept. 15, 1927. George R. James .......... __St. Louis ......... May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936, on which date his successor took office. Edward H. Cunningham ...Chicago .............................do. Died Nov. 28, 1930. Roy A. Young ....................Minneapolis .......Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer .....................New York .........Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee ...........Kansas City .......May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black ................Atlanta ...............May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak ................Chicago ..............June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas .......................Kansas City ........................do........ Served until Feb. 10, 1936, on which date his successor took office. Marriner S. Eccles .............San Francisco ...Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick ..........New York .........Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee ..................Cleveland .................... .. do....... Served until Apr. 4, 1946, on which date his successor took office. Ronald Ransom ..................Atlanta .. do....... Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison ...... ...Dallas ........... Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis ........... .. .Richmond __ June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper ........... .. .New York ... Mar. 30, 1938 Served until Sept. 1, 1950, on which date his successor took office. Rudolph M. Evans ........ .. .Richmond __ Mar. 14, 1942 Served until Aug. 13, 1954, on which date his successor took office. James K. Vardaman, Jr. .. .St. Louis Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton .......... ...Boston .......... Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe.......... ...Philadelphia .... Apr. 15, 1948 Resigned Mar. 31, 1951 Edward L. Norton .......... ...Atlanta .......... Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell ................Minneapolis do....... Resigned June 30, 1952. For notes see p. 434. 433 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APPOINTIVE MEMBERS1—Continued Federal Reserve Date of initial Other dates and information relating Name district oatl of office to membership2 Wm. McC. Martin, Jr. ...New York .......Apr. 2, 1951 Reappointed for term beginning Feb. 1, 1956. Term expired Jan. 31, 1970. A. L. Mills, Jr....................San Francisco ..Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson .................Kansas City................... .. do....... Reappointed for term beginning Feb. 1, 1964. Resigned April 30, 1973. Paul E. Miller ...................Minneapolis ___Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston .......Philadelphia ___Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson .......Dallas .................Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr....................Atlanta ...............Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell .........Chicago .............Aug. 31, 1961 Reappointed for term beginning Feb. 1, 1962. J. Dewey Daane ................Richmond ..........Nov. 29, 1963 Sherman J. Maisel ..........San Francisco .. Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer .........Philadelphia ___Mar. 9, 1966 William W. Sherrill .........Dallas .................May 1, 1967 Reappointed for term beginning Feb. 1, 1968. Resigned November 15, 1971. Arthur F. Burns ................New York ........Jan. 31, 1970 Term began Feb. 1, 1970. John E. Sheehan .:..........St. Louis ............Jan. 4, 1972 Jeffrey M. Bucher ............San Francisco ..June 5, 1972 Robert C. Holland ............Kansas City ___June 1, 1973 CHAIRMEN3 VICE CHAIRMEN3 Charles S. Hamlin ..Aug. 10, 1914-Aug. 9,1916. Frederic A. Delano ..Aug. 10, 1914-Aug. 9,1916. W. P. G. Harding ... Aug. 10, 1916-Aug. 9,1922. Paul M. Warburg ... Aug. 10, 1916-Aug. 9, 1918. Daniel R. Crissinger .May 1, 1923-Sept. 15,1927. Albert Strauss ........Oct. 26, 1918-Mar. 15, 1920. Roy A. Young .......Oct. 4, 1927-Aug.31,1930. Edmund Platt ..........July 23, 1920-Sept. 14, 1930. Eugene Meyer ........Sept. 16, 1930-May 10,1933. J. J. Thomas ..........Aug. 21, 1934-Feb. 10, 1936. Eugene R. Black ...May 19, 1933-Aug. 15,1934. Ronald Ransom ......Aug. 6, 1936-Dec. 2, 1947. Marriner S. Eccles .Nov. 15, 1934-Jan. 31,1948. C. Canby Balderston .Mar. 11, 1955-Feb. 28, 1966. Thomas B. McCabe .Apr. 15, 1948-Mar. 31,1951. J. L. Robertson ......Mar. 1, 1966-Apr. 30, 1973. Wm. McC. Martin, Jr. Apr. 2, 1951-Jan. 31,1970. George W. Mitchell . May 1, 1973- Arthur F. Burns __Feb. 1, 1970- EX-OFFICIOMEMBERS1 SECRETARIES OF THE TREASURY COMPTROLLERS OF THE CURRENCY W. G. McAdoo ....Dec. 23, 1913-Dec. 15,1918. John Skelton Williams.Feb. 2, 1914-Mar. 2, 1921. Carter Glass ...........Dec. 16, 1918-Feb. 1,1920. Daniel R. Crissinger .Mar. 17, 1921-Apr. 30, 1923. David F. Houston ..Feb. 2, 1920-Mar. 3,1921. Henry M. Dawes ...May 1, 1923-Dec. 17, 1924. Andrew W. Mellon Mar. 4, 1921-Feb. 12,1932. Joseph W. McIntosh Dec. 20, 1924-Nov.20, 1928. Ogden L. Mills .......Feb. 12, 1932-Mar. 4,1933. J. W. Pole ...............Nov. 21, 1928-Sept.20, 1932. William H. Woodin .Mar. 4, 1933-Dec. 31,1933. J. F. T. O’Connor .. May 11, 1933-Feb. 1, 1936. Henry Morgenthau, Jr. Jan. 1, 1934-Feb. 1,1936. 1 Under the provisions of the original Federal Reserve Act members; that the Secretary of the Treasury and the Comptrol­ the Federal Reserve Board was composed of seven members, ler of the Currency should continue to serve as members until including five appointive members, the Secretary of the Treas­ Feb. 1, 1936; that the appointive members in office on the date ury, who was ex-officio chairman of the Board, and the Comp­ of that Act should continue to serve until Feb. 1, 1936, or until troller of the Currency. The original term of office was 10 years, their successors were appointed and had qualified; and that and the five original appointive members had terms of 2, 4, 6, thereafter the terms of members should be 14 years and that the 8, and 10 years, respectively. In 1922 the number of appointive designation of Chairman and Vice Chairman of the Board should members was increased to six, and in 1933 the term of office be for a term of 4 years. was increased to 12 years. The Banking Act of 1935, approved 2Date after words “Resigned” and “Retired” denotes final Aug. 23, 1935, changed the name of the Federal Reserve Board day of service. to the Board of Governors of the Federal Reserve System and 3Chairman and Vice Chairman were designated Governor provided that the Board should be composed of seven appointive and Vice Governor before Aug. 23, 1935. 434 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Com m ittee 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 records for the first two meetings held in 1973 were pub­ lished in the Bulletin for April, pages 286-92, and May, pages 345-51. The record for the meeting held on March 19-20, 1973, follows: 435 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 FEDERAL RESERVE BULLETIN □ JUNE 1973 MEETING HELD ON MARCH 19-20, 19731 1. Domestic policy directive The information reviewed at this meeting suggested that real output of goods and services, which had expanded at an annual rate of 8.0 per cent in the fourth quarter of 1972, was growing at a substantial but less rapid rate in the first quarter of 1973. Staff projections for the second quarter suggested that real growth would remain close to the first-quarter rate. In February industrial production continued to expand, reflecting mainly substantial further gains in output of consumer goods and business equipment; increases in over-all output of materials, which had been sizable in late 1972, were small in the first 2 months of this year. Nonfarm payroll employment rose sharply in February. The civilian labor force also increased substantially—after having declined in January—and the unemployment rate, at 5.1 per cent, was about the same as in the preceding 3 months. Retail sales declined in February, according to the advance report, but the decline followed an exceptionally large advance from November to January. Retail prices of foods rose sharply in January—the latest month for which such price data were available. In February wholesale prices of farm and food products increased substantially for the third successive month. Moreover, average wholesale prices of industrial commodities rose by an unusually large amount, reflect­ ing sizable increases in shoes and other apparel, petroleum prod­ ucts, machinery, and a number of industrial materials. The advance in average hourly earnings of production workers on nonfarm payrolls, which had been large in the last 4 months of 1972, was moderate in the first 2 months of this year. The latest staff projection of real growth in the second quarter of 1973 was little different from that of 4 weeks earlier. It was still expected that expansion in consumption expenditures, business fixed investment, and State and local government purchases of ^his meeting was held over a 2-day period beginning on the afternoon of Mar. 19, 1973, in order to provide more time for the staff presentation concerning the economic situation and outlook and the Committee’s discussion thereof. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 437 goods and services would remain strong and that outlays for residential construction would turn down. However, the increase in business inventory investment projected for the second quarter was somewhat larger than before; in the first quarter inventory accumulation appeared to be falling short of earlier projections as the expansion in final sales seemed to be exceeding expectations. Following the announcement on February 12 that the United States would devalue the dollar by 10 per cent, most continental European countries retained their currency par values in terms of SDR’s or gold, Japan and Italy freed their currencies to float, and the United Kingdom, Switzerland, and Canada continued to allow their currencies to float. Exchange markets in major countries— which since February 9 had been closed in the sense that central banks had not intervened—reopened on February 14 and 15. After about a week of relative calm in the markets, during which a sizable volume of funds flowed back into dollars and the Japanese yen floated up by 16 to 17 per cent, a new speculative movement out of dollars and into German marks and some other currencies developed; on March 1 and 2 most major exchange markets closed again. The new disturbance in foreign exchange markets led to a series of international conferences and to a number of measures aimed at maintaining orderly international monetary arrangements. On March 12 six of the nine members of the European Community announced their decision to participate in a joint float—after a 3 per cent upward revaluation of the German mark—while maintain­ ing rates between their own currencies within bands of 2% per cent, and they were subsequently joined by two other European countries; the United Kingdom, Italy, and Ireland—the remaining three members of the Community—decided to continue to allow their currencies to float independently. After a meeting in Paris on March 16, the United States, other Group of Ten countries, other EC countries, and Switzerland announced that they had agreed that official intervention in exchange markets might be useful at times to facilitate the maintenance of orderly conditions and to facilitate the reflow of speculative funds into dollars. Intervention might be financed through the use of mutual credit facilities, if necessary; in order to assure adequate financial resources, enlarge­ ment of some of the existing “swap” facilities was envisaged. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN □ JUNE 1973 At U.S. commercial banks, expansion in business loans—already at a record rate in January—rose sharply further in February. A sizable share of the increase in outstanding loans was attributable to a shift in business borrowing from the commercial paper market in response to a rise in short-term interest rates in the market relative to bank lending rates. Loans to foreign commercial banks also expanded considerably, and consumer and real estate loans contin­ ued to grow at a fast pace. To accommodate the strong loan demand, banks sharply increased the outstanding volume of largedenomination CD’s and reduced their holdings of Treasury securi­ ties. The narrowly defined money stock (MO,2 which had grown rapidly in December and then changed little in January, expanded moderately in February; over the 3 months combined, growth was at an annual rate of about 6.5 per cent—little changed from the rate over the preceding 3 months.3 Inflows of time and savings deposits other than large-denomination CD’s slowed sharply in February as market interest rates advanced, and the more broadly defined money stock (M2)4 grew at an annual rate of about 6 per cent, compared with a rate of about 6.5 per cent in January; over the 6 months through February, growth was at a rate of about 8.5 per cent. In February, however, the bank credit proxy5 ex­ panded at a very fast pace, reflecting the large increase in the outstanding volume of large-denomination CD’s. System open market operations since the February 13 meeting had been guided by the Committee’s decision to seek bank reserve and money market conditions that would support somewhat slower growth in monetary aggregates over the months ahead than had occurred on the average in the past 6 months. 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 2Private demand deposits plus currency in circulation. 3Growth 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. 4MX plus commercial bank time and savings deposits other than large-denomi­ nation CD’s. 5Daily-average member bank deposits, adjusted to include funds from nondeposit sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 439 — 2.5 to 4-2.5 per cent in the February-March period, while avoiding marked changes in money market conditions. Early in the inter-meeting period it had appeared that growth in the monetary aggregates would remain strong and that bank sales of CD’s, in association with the larger-than-expected demands for bank credit, might result in growth in RPD’s in the February-March period at an annual rate in excess of 2.5 per cent. Consequently, the System had acted promptly to slow the expansion in RPD’s, and the Federal funds rate rose to about 63A per cent for the state­ ment week ending February 21 from around 6% per cent in the days before the February meeting. After March 1—when Committee members agreed that the weekly average rate for Federal funds should be permitted to rise somewhat further if necessary to limit growth in RPD’s—the rate fluctuated around a level slightly above 7 per cent. Member bank borrowings averaged about $1,665 million in the 5 weeks ending March 14, compared with about $1,235 million in the preceding 4 weeks. Since the Committee’s February meeting short-term market in­ terest rates in general had risen substantially further as money market conditions continued to firm and as the persistent expansion in demands for bank credit induced banks to issue large amounts of CD’s and to liquidate holdings of short-term Treasury securities. Rates on CD’s with maturities between 90 and 179 days reached the Regulation Q ceiling of 6% per cent, and rates on those with maturities between 30 and 89 days—which are not subject to ceilings—rose to l lA per cent. Banks generally raised their prime rates from 6 to 6XA per cent in late February, and on March 19 a number of banks announced that they would raise rates further to 63A per cent.6 On that day the market rate on 3-month Treasury bills was 6.22 per cent, compared with 5.44 per cent 5 weeks earlier. Federal Reserve discount rates were raised V2 percentage point, to 51/2 per cent, at four Reserve Banks on February 26 and at the remaining eight Banks by March 2. Yields on long-term securities also had continued to rise since the February meeting, but the increase remained relatively moder­ ate, especially for Treasury and corporate issues. Upward pressures 6By March 27, in cooperation with the Government’s stabilization program, these banks had rolled back their rates to 6V2 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN □ JUNE 1973 on long-term yields were limited by foreign official demands for Treasury coupon issues and by a sharp drop in the volume of new public offerings of corporate bonds in February and the prospect that the volume would only recover in March. For State and local government bonds, the volume of new issues declined more mod­ erately in February and appeared likely to rise again in March; moreover, commercial bank demands for these securities receded as loan demands expanded. Contract interest rates on conventional mortgages rose somewhat in February, after 4 months of stability, while yields in the second­ ary market continued to change little. Inflows of savings funds to nonbank thrift institutions, like those to banks, slowed consid­ erably as yields on market securities became increasingly attractive to savers. 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 the average in the past 6 months. The members took note of a staff analysis suggesting that the cumulative impact of the advance in short-term interest rates that had already occurred would probably slow growth in the monetary aggregates over the months ahead. Nevertheless a relatively rapid rate of growth in RPD’s was projected for the March-April period, chiefly because the substantial increase in the outstanding volume of large-denomination CD’s that had occurred in recent weeks would affect required reserves with a lag and further expansion in the outstanding volume was expected. Therefore, the Committee’s objectives for monetary growth might be fostered by pursuing growth in RPD’s in the March-April period at an annual rate within a range of 14 to 16 per cent. The analysis also suggested that attainment of RPD growth in that range might be associated with some further increase in some short-term interest rates and probably also in long-term rates. The Committee concluded that active reserve-supplying opera­ tions should be limited unless RPD’s in the March-April period appeared to be growing at an annual rate of less than 12 per cent. Specifically, the members decided that operations should be directed at fostering RPD growth during that period at a rate within a range of 12 to 16 per cent, while continuing to avoid marked changes in money market conditions. They also agreed that in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 441 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. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests continued sub­ stantial 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. Over the first 2 months of this year, employment rose strongly but the unemployment rate remained about 5 per cent. The advance in wage rates moderated from the earlier rapid pace, while the rate of increase in prices accelerated. Prices of foods continued to rise sharply both at wholesale and retail; in February, moreover, in­ creases in wholesale prices of industrial commodities were large and widespread. Another wave of speculative movements out of dollars into German marks and some other currencies developed at the beginning of March and led to a decision by a number of European countries to float their currencies jointly. On March 16, after a series of meetings, officials of leading industrial countries announced a program aimed at maintaining orderly international monetary arrangements. The narrowly defined money stock expanded moderately in Feb­ ruary, after having changed little in January, and growth over recent months remained at an average annual rate of about 6.5 per cent. The more broadly defined money stock continued to grow at a moderate rate in February as inflows of consumer-type time and savings deposits to banks slowed sharply. However, in the face of strong loan demand from businesses, and also from foreign banks, U.S. banks sharply increased their issuance of large-denomination CD’s and the bank credit proxy expanded very rapidly. In recent weeks short-term market interest rates have risen substantially fur­ ther while the rise in long-term rates has remained more moderate. 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 abatement of inflationary pressures, sustainable growth in real Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN □ JUNE 1973 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, Balles, Brimmer, Bucher, Daane, Francis, Mayo, Mitchell, Morris, Robertson, and Sheehan. Votes against this action: None. On April 11, 1973, less than one week before the date scheduled for the Committee’s next meeting, the System Account Manager reported that in light of the latest estimates for RPD’s and the monetary aggregates, he interpreted the Committee’s instructions to call for reserve-supplying operations consistent with an easing in money market conditions. On that day a majority of the members concurred in a recommendation by the Chairman that such opera­ tions not be undertaken prior to the next meeting, when the Committee would have an opportunity to deliberate on the appro­ priate policy course. 2. Ratification of earlier action On March 15, 1973, Committee members had voted to increase from $2 billion to $3 billion the limit on changes between Com­ mittee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the continuing authority directive with respect to domestic open market operations, effective immediately, for the period ending with the close of business on March 20, 1973. Votes for this action: Messrs. Hayes, Balles, Brimmer, Bucher, Francis, Mayo, Mitchell, Morris, and Robertson. Votes against this action: None. Absent and not voting: Messrs. Burns, Daane, and Sheehan. This action, which was ratified by unanimous vote at this meet­ ing, had been taken on recommendation of the System Account Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 443 Manager. The Manager had advised that a substantial volume of open market purchases of Treasury and Federal agency securities had been required in the period since the Committee’s previous meeting in order to offset the reserve absorption caused by a sizable unanticipated rise in Treasury balances at Federal Reserve Banks, an increase in currency in circulation, and changes in certain other market factors, and that a temporary increase in the leeway for System purchases appeared desirable in light of the prospective near-term needs to supply reserves. 3. Review of and amendments to continuing authorizations This being the first meeting of the Federal Open Market Committee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1973, and their assumption of duties, the Committee followed its customary prac­ tice of reviewing all of its continuing authorizations and directives. The Committee concurred in a staff recommendation that, in the interest of simplicity and logic, the titles of three of these instruments should be changed and that corresponding amendments should be made in the text passages of certain instruments that referred to other instruments by title. The changes in titles were as follows: from “continuing authority directive with respect to domestic open market operations” to “ authorization for domestic open market operations” ; from “current economic policy direc­ tive” to “domestic policy directive” ; and from “ authorization for System foreign currency operations” to “ authorization for foreign currency operations.” The text passages amended to reflect these title changes were paragraph 1 of the authorization for domestic open market operations and paragraphs 2C and 2D of the foreign currency directive. The Committee also amended its authorization for foreign cur­ rency operations in two respects to remove certain duplications that resulted from revisions made earlier in the year in its Rules of Organization and Rules of Procedure.7 The amendments involved 7Revised Rules of Organization, Rules of Procedure, and Regulation relating to Open Market Operations of Federal Reserve Banks, as well as miscellaneous amendments to the Rules Regarding Availability of Information, as approved by the Committee on Jan. 16, 1973, effective Feb. 1, 1973, were published in the Federal Register for Jan. 30, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 FEDERAL RESERVE BULLETIN □ JUNE 1973 deletion of paragraph 10 and a revision of paragraph 6 to read as follows: The Subcommittee named in Section 272.4(c) of the Committee’s Rules of Procedure is authorized to act on behalf of the Committee when it is necessary to enable the Federal Reserve Bank of New York to engage in foreign currency operations before the Committee can be consulted. All actions taken by the Subcommittee under this paragraph shall be reported promptly to the Committee. Except for the changes resulting from these actions, the Com­ mittee reaffirmed its domestic and foreign currency authorizations and its domestic and foreign currency directives in the form in which each was outstanding at the beginning of the year 1973. Votes for these actions: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Mayo, Mitchell, Morris, Robertson, and Sheehan. Votes against these actions: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS due to (/) a foreign banking office of a bank, or (ii) an institution the time deposits of which are The Board has amended its Regulation D to described in § 217.3(g) thereof; establish a marginal reserve requirement of 8 per and * * * cent against certain time deposits, and to subject (2) If in a reserve city (except as to any bank to the 8 per cent marginal reserve requirement located in such a city that is permitted by the Board certain deposits exempt from the rate limitations of Governors of the Federal Rerserve System, of the Board’s Regulation Q. pursuant to § 204.2(a)(2), to maintain the reserves specified in subparagraph (1) of this paragraph)— The amendment reads as set forth below: * * * (ii) 3 per cent of its other time deposits up to AMENDMENT TO REGULATION D $5 million, plus 5 per cent of such deposits in excess of $5 million: Provided, however, That a Effective June 21, 1973, § 204.5(a)(1)(h) and member bank shall maintain a reserve balance (2)(ii) is amended to read as follows: equal to 8 per cent of the amount by which the daily average amount of time deposits of the types SECTION 204.5—RESERVE REQUIREMENTS hereinafter specified exceeds either the daily (a) Reserve percentages. Pursuant to the pro­ average amount of such time deposits outstanding visions of section 19 of the Federal Reserve Act during the computation period ending May 16, and § 204.2(a) and subject to paragraph (c) of this 1973, or $10 million, whichever is greater, and section, the Board of Governors of the Federal such 8 per cent reserve percentage shall apply with Reserve System hereby prescribes the following respect to time deposits of the following types: reserve balances that each member bank of the (a) single maturity time deposits of $100,000 Federal Reserve System is required to maintain or more; and on deposit with the Federal Reserve Bank of its (b) any other time deposits exempt from the rate district: limitations of Regulation Q, other than a deposit due to (/) a foreign banking office of a bank, or (1) If not in a reserve city— * * * (ii) an institution the time deposits of which are described in § 217.3(g) thereof; and * * * (ii) 3 per cent of its other time deposits up to $5 million, plus 5 per cent of such deposits in RESERVES OF MEMBER BANKS excess of $5 million: Provided, however, That a FOREIGN ACTIVITIES OF NATIONAL BANKS member bank shall maintain a reserve balance equal to 8. per cent of the amount by which the The Board amended Regulations D and M to daily average amount of time deposits of the types reduce the reserve requirements on member banks’ hereinafter specified exceeds either the daily Eurodollar borrowings and foreign branch loans average amount of such time deposits outstanding to U.S. residents from 20 to 8 per cent, to elimi­ during the computation period ending May 16, nate the reserve-free bases presently exempting 1973, or $10 million, whichever is greater, and from reserve requirements some portion of mem­ such 8 per cent reserve percentage shall apply with ber banks’ foreign branch loans to U.S. residents, respect to time deposits of the following types: and to phase out over a period of approximately (a) single maturity time deposits of $100,000 eight months the reserve-free bases presently ex­ or more; and empting from reserve requirements some portion (b) any other time deposits exempt from the rate of member banks’ Euro-dollar borrowings. limitations of Regulation Q, other than a deposit The amendments read as set forth below: 445 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN □ JUNE 1973 AMENDMENTS TO REGULATIONS in such computation period ending on May 9, 1973, applied consecutively in each succeeding D AND M computation period beginning with the period ending on August 1, 1973, until such reserve-free Effective as indicated below, § 204.5(c) of base is exhausted. Regulation D and § 213.7 of Regulation M are amended to read as follows: SECTION 213.7—RESERVES AGAINST SECTION 204.5—RESERVE REQUIREMENTS FOREIGN BRANCH DEPOSITS (a) Transactions with parent bank. During (c) Reserve percentages against certain de­ each week of the four-week period beginning June posits by foreign banking offices. Deposits rep­ 21, 1973, and during each week of each successive resented by promissory notes, acknowledgements four-week (“maintenance”) period, a member of advance, due bills, or similar obligations de­ bank having one or more foreign branches shall scribed in § 204.1(f) to foreign offices of other maintain with the Reserve Bank of its district, as banks,8 or to institutions the time deposits of which a reserve against its foreign branch deposits, a are exempt from the rate limitations of Regulation daily average balance equal to 8 per cent of the Q pursuant to § 217.3(g) thereof, shall not be daily average total of subject to paragraph (a) of this section or to § (1) net balances due from its domestic offices 204.3(a)(1) and (2); but during each week of the to such branches, and four-week period beginning June 21, 1973, and (2) assets (including participations) held by during each successive four-week (“mainte­ such branches which were acquired from its do­ nance”) period, a member bank shall maintain mestic offices (other than assets representing credit with the Reserve Bank of its district a daily extended to persons not residents of the United average balance equal to 8 per cent of the daily States), during the four-week computation period average amount of such deposits during the four- ending on the Wednesday fifteen days before the week computation period ending on the Wednes­ beginning of the maintenance period: day fifteen days before the beginning of the main­ Provided, that any bank that, under the terms of tenance period. An excess or deficiency in reserves § 213.7(a) of Regulation M as in effect prior to in any week of a maintenance period under this June 21, 1973,7 was deducting for the computation paragraph shall be subject to § 204.3(a)(3), as if period ending on May 9, 1973, an earlier period’s computed under § 204.3(a)(2), and deficiencies corresponding daily average total of such “net under this paragraph shall be subject to § balances due” or “assets held” (hereinafter called 204.3(b):9 “reserve-free base”) in calculating its reserve re­ Provided, That any bank that, under the terms of quirements hereunder shall continue to be entitled § 204.5(c) of Regulation D as in effect prior to to do so in accordance with the terms of such June 21, 1973,10 was deducting for the computa­ former section, but such reserve-free base shall tion period ending on May 9, 1973, an earlier not exceed progressively lower ceilings established period’s corresponding daily average total of such hereunder by reducing the amount of its reservedeposits (hereinafter called “reserve-free base”) free base for the computation period ending on in calculating its reserve requirements shall con­ May 9, 1973, in ten increments, each equal to tinue to be entitled to do so in accordance with 10 per cent of its base in such computation period the terms of such former section, but such re­ ending on May 9, 1973, applied consecutively in serve-free base shall not exceed progressively each succeeding computation period beginning lower ceilings established hereunder by reducing with the period ending on August 1, 1973, until the amount of its reserve-free base for the compu­ such reserve-free base is exhausted. tation period ending on May 9, 1973, in ten (b) Credit extended to United States resi­ increments, each equal to 10 per cent of its base dents. During each week of the four-week period beginning June 21, 1973, and during each week of each successive four-week maintenance period, 8 Any banking office located outside the States of the United States and the District of Columbia of a bank organized under a member bank having one or more foreign domestic or foreign law. branches shall maintain with the Reserve Bank of 9 The term “computation period” in § 204.3(a)(3) and (b) its district, as a reserve against its foreign branch shall, for this purpose, be deemed to refer to each week of a maintenance period under this paragraph. 1035 Federal Register 18658. 736 Federal Register 1040; 6826. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 447 deposits, a daily average balance equal to 8 per or (4) under binding commitments entered into cent of the daily average credit outstanding from before May 17, 1973. such branches to United States residents8 (other than assets acquired and net balances due from INTEREST ON DEPOSITS its domestic offices) during the four-week compu­ tation period ending on the Wednesday fifteen days The Board has amended its Regulation Q to before the beginning of the maintenance period: suspend the limitations on the rates of interest Provided, that this paragraph does not apply to which may be paid by a member bank on a single credit extended (1) to enable the borrower to maturity time deposit of $100,000 or more, re­ comply with the requirements of the Office of gardless of the maturity of such time deposit. Foreign Direct Investments, Department of Com­ The text of the amendment reads as set forth merce,9 or (2) under binding commitments entered below: into before May 17, 1973. AMENDMENT TO REGULATION Q FOREIGN ACTIVITIES OF NATIONAL BANKS Effective May 16, 1973 §217.7(a)(1) is The Board has amended its Regulation M to amended to read as follows: minimize the administrative burden on member SECTION 217.7—MAXIMUM RATES OF IN­ banks in complying with reserve requirements TEREST PAYABLE BY MEMBER BANKS ON relating to extensions of credit by their foreign TIME AND SAVINGS DEPOSITS branches to United States residents. He ^ AMENDMENT TO REGULATION M (a) Single maturity time deposits. (1) Deposits of $100,000 or more. There is Effective June 21, 1973, the Board has amended no maximum rate of interest presently prescribed the proviso in § 213.7(b) of Regulation M to read on any single maturity time deposit of $100,000 as set forth below: or more. SECTION 213.7—RESERVES AGAINST ^ ^ FOREIGN BRANCH DEPOSITS SECURITIES CREDIT TRANSACTIONS * The Board has amended its margin regulations (b) Credit extended to United States resi­ G, T, and U. These amendments provide that any dents. ^ ^ put, call, or combination thereof written on an equity security shall have no loan value for the Provided, That this paragraph does not apply purposes of §§ 207.1, 220.3 and 221.1; make it to credit extended (1) in the aggregate amount clear that the customer’s adjusted debit balance of $100,000 or less to any United States resi­ in a general account under Regulation T must dent, (2) by a foreign branch which at no time include the amount of margin required in connec­ during the computation period had credit out­ tion with the issuance, endorsement, or guarantee standing to United States residents exceeding $1 of any put, call, or combination thereof; and million, (3) to enable the borrower to comply conform the definition of “stock” in Regulation with the requirements of the Office of Foreign U to the statutory definition of “equity security.” Direct Investments, Department of Commerce,9 SUPPLEMENT TO REGULATION G 8(a) Any individual residing (at the time the credit is ex­ tended) in any State of the United States or the District of Columbia; (b) any corporation, partnership, association or Effective May 23, 1973 § 207.5(a) (the supple­ other entity organized therein (“domestic corporation”); ment to regulation G) is amended as set forth and (c) any branch or office located therein of any other entity wherever organized. Credit extended to a foreign branch, below: office, subsidiary, affiliate or other foreign establishment (“foreign affiliate”) controlled by one or more such domestic SECTION 207.5—SUPPLEMENT corporations will not be deemed to be credit extended to a United States resident if the proceeds will be used in its foreign (a) Maximum loan value of margin securi­ business or that of other foreign affiliates of the controlling ties. For the purpose of § 207.1, the maximum domestic corporation(s). loan value of any margin security, except convert­ 9The branch may in good faith rely on the borrower’s certification that the funds will be so used. ible securities subject to § 207.1(d) and any put, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN □ JUNE 1973 call, or combination thereof, shall be 35 per cent The maximum loan value of securities in a general of its current market value, as determined by any account subject to § 220.3 shall be: reasonable method. No put, call, or combination (1) Of a registered nonequity security held in thereof shall have any loan value for the purposes the account on March 11, 1968, and continuously of this part. thereafter, and of a margin equity security (except * * * * * as provided in § 220.3(c) and paragraphs (b), (c) and (f) of this section), 35 per cent of the current SUPPLEMENT TO REGULATION T market value of such securities. ^ ^ ^ ^ Effective May 23, 1973 § 220.3 is amended as (f) Securities having no loan value in a gen­ set forth below: eral account. No securities other than an ex­ SECTION 220.3—GENERAL ACCOUNT empted security or registered nonequity security held in the account on March 11, 1968, and continuously thereafter, and a margin security, (b) General rule. * * * shall have any loan value in a general account (2) Except as permitted in this paragraph (b) except that a margin security eligible for the spe­ (2), no withdrawal of cash or exempted or margin cial convertible debt security account pursuant to securities shall be permissible if the adjusted debit § 220.4(j) shall have loan value only if held in balance of the account (whether the general ac­ the account on March 11, 1968, and continuously count, the special bond account, or the special thereafter; and no put, call, or combination thereof convertible security account) would exceed the shall have loan value in a general account. maximum loan value of the securities in such account after such withdrawal. The exceptions are available only in the event no cash or securities CREDIT BY BANKS FOR THE PURPOSE OF need to be deposited in such account in connection PURCHASING OR CARRYING MARGIN STOCKS with a transaction on a previous day and none would need to be deposited thereafter in connec­ SUPPLEMENT TO REGULATION U tion with any withdrawal of cash or securities on the current day. The permissible exceptions are * * * (iv) upon the sale (other than the short Effective June 16, 1973 § 221.3(1) is amended as set forth below: sale) of margin securities or securities having loan value in the general account, special bond SECTION 221.3—MISCELLANEOUS account, or special convertible security account PROVISIONS there may be withdrawn in cash an amount equal to the difference between the current market value of the securities sold and the “retention require­ (1) Stock. The term “stock” includes any se­ ment” of such securities, or (v) * * * curity commonly known as a stock; any voting trust certificate or other instrument representing (d) Adjusted debit balance. For the purpose of this part, the adjusted debit balance of a general such a security; and any security convertible, with account, special bond account, or special convert­ or without consideration, presently or in the future, ible debt security account shall be calculated by into such security, certificate, or other instrument, taking the sum of the following items: or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right; or any other security which the Securities (5) The amounts of any margin required in and Exchange Commission shall deem to be of connection with the issuance, endorsement, or similar nature and consider necessary or appro­ guarantee of any put, call, or combination thereof. priate, by such rules and regulations as it may prescribe in the public interest or for the protection Section 220.8 (a) (1) and (f) (the Supplement of investors, to treat as an equity security such to Regulation T) is amended to read as set forth as any certificate of interest or participation in any below: profit-sharing agreement, preorganization certifi­ cate, or subscription, transferable share, limited SECTION 220.8—SUPPLEMENT partnership interest, interest in a joint venture, or (a) Maximum loan value of general accounts. certificate of interest in a business trust; or any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 449 put, call, straddle, or other option or privilege of SECTION 4—STAFF buying such a security from or selling such a Effective June 1, 1973, section 4 of the rules security to another without being bound to do so. of organization is amended to read as set forth below: Effective June 16, 1973 § 221.4(a) (the supple­ (a) Selection of staff officers. At its first ment to Regulation U) is amended to read as meeting on or after March 1 of each year, the follows: Committee selects, from among the officers and employees of the Board and the Federal Reserve SECTION 221.4—SUPPLEMENT Banks, the following staff officers to serve until (a) Maximum loan value of stocks. For the the first meeting on or after March 1 of the next purpose of § 221.1, the maximum loan value of following year: Secretary, Deputy Secretary, and any stock except puts, calls, and combinations one or more Assistant Secretaries; General Coun­ thereof, whether or not registered on a national sel, Deputy General Counsel, and one or more securities exchange shall be 35 per cent of its Assistant General Counsel; and Economists, one current market value, as determined by any rea­ or more of whom may be designated as Senior sonable method. Puts, calls, and combinations or Associate Economists or given titles reflecting thereof shall have no loan value. their areas of particular specialization. (d) General Counsel and Deputy and Assis­ RULES REGARDING DELEGATION OF AUTHORITY tant General Counsel. The General Counsel fur­ nishes such legal advice as the Committee may The Board has amended its Rules Regarding require. In the absence of the General Counsel, Delegation of Authority to delegate to the Director the Deputy General Counsel or an Assistant Gen­ of the Division of Supervision and Regulation the eral Counsel acts as General Counsel pro tem. authority to make available reports and other in­ formation relating to margin Regulations G,T,U, INTERPRETATION OF REGULATIONS D AND M and X. Effective May 31, 1973 § 265.2 is amended to read as set forth below: STATEMENT OF POLICY ON AVAILABILITY OF INFORMATION TO FACILITATE SUPERVISION OF FOREIGN OPERATIONS SECTION 265.2—SPECIFIC FUNCTIONS OF MEMBER BANKS DELEGATED TO BOARD EMPLOYEES AND FEDERAL RESERVE BANKS For the guidance of member banks having foreign operations, the Board publishes the fol­ lowing statement of policy regarding availability (c) The Director of Division of Supervision and of information pertaining to member banks’ Regulation (or, in his absence, the Acting Direc­ foreign branches and subsidiaries to enable proper tor) is authorized: supervision of those operations: The Board of Governors of the Federal Reserve (19) Pursuant to the provisions of Part 261 of System, as a central bank, is properly concerned this chapter, to make available reports and other with the preservation and promotion of a sound information of the Board acquired pursuant to banking system in the United States. The Board Parts 207, 220, 221, and 224 (Regulations G,T,U, of Governors and other federal banking supervi­ and X) of the nature and in the circumstances sory authorities have been given specific statutory described in § 261.6(a)(2) and (3) of Part 261. responsibilities to assure that banking institutions are operated in a safe and prudent manner afford­ FEDERAL OPEN MARKET COMMITTEE ing protection to depositors and providing ade­ quate and efficient banking services to the public RULES OF ORGANIZATION on a continuing basis. These responsibilities and concerns are shared by central banks and bank The Federal Open Market Committee has supervisors the world over. amended its rules of organization in order to in­ Under sections 25 and 25(a) of the Federal clude references to Deputy General Counsel. Reserve Act, the Board has particular respon­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN □ JUNE 1973 sibilities to supervise the international operations (4) Controls. Reports on the internal and exter­ of member banks in the public interest. In carrying nal audits of the branch or subsidiary in sufficient out these responsibilities, the Board has sought to detail to permit determination of conformance to assure that the international operations of member auditing guidelines. Such reports should cover banks would not only foster the foreign commerce (i) verification and identification of entries on fi­ of the United States but that they would also be nancial statements; (ii) income and expense ac­ conducted so as not to encroach on the mainte­ counts, including descriptions of significant nance of a sound and effective banking structure charge-offs and recoveries; (iii) operation of in the United States. In keeping with the latter dual-control procedures and other internal con­ consideration, the Board believes it incumbent trols; (iv) conformance to head office guidelines upon member banks to supervise and administer on loans, deposits, foreign exchange activities, their foreign branches and subsidiaries in such a proper accounting procedures, and discretionary manner as to assure that their operations are con­ authority of local management; (v) compliance ducted at all times in accordance with high stand­ with local laws and regulations; and (vi) com­ ards of banking and financial prudence. pliance with applicable U.S. laws and regulations. Proper administration and supervision of foreign branches and subsidiaries require the use of effec­ MISCELLANEOUS INTERPRETATION tive systems of records, controls, and reports that Since 1923, the Board has been of the view will keep the bank’s management informed of the that “the acceptance power of State member banks activities and condition of its branches and subsi­ is not necessarily confined to the provisions of diaries. At a minimum, such systems should pro­ section 13 [of the Federal Reserve Act], inasmuch vide the following: as the laws of many States confer broader accep­ (1) Risk assets. To permit assessment of expo­ tance powers upon their State banks, and certain sure to loss, information furnished or available to State member banks may, therefore, legally make head office should be sufficient to permit periodic acceptances of kinds which are not eligible for and systematic appraisals of the quality of loans rediscount, but which may be eligible for purchase and other extensions of credit. Coverage should by Federal reserve banks under section 14.” 1923 extend to a substantial proportion of the risk assets F. R. Bulletin 316, 317. in the branch or subsidiary, and include the status In 1963, the Comptroller of the Currency ruled of all large credit lines and of credits to customers that “[n]ational banks are not limited in the char­ also borrowing from other offices of the bank. acter of acceptances which they may make in Information on credit extensions should in­ financing credit transactions, and bankers’ accep­ clude (i) a recent financial statement of the bor­ tances may be used for such purpose, since the rower and current information on his financial making of acceptances is an essential part of condition; (ii) credit terms, conditions, and col­ banking authorized by 12 U.S.C. 24.” Comp­ lateral; (iii) data on any guarantors; (iv) pay­ troller’s Manual 7.7420. Therefore, national ment history; and (v) status of corrective meas­ banks are authorized by the Comptroller to make ures employed. acceptances under 12 U.S.C. § 24, although the (2) Liquidity. To enable assessment of local acceptances are not of the type described in section management’s ability to meet its obligations from 13 of the Federal Reserve Act. available resources, reports should identify the A review of the legislative history surrounding general sources and character of the deposits, the enactment of the acceptance provisions of borrowings, etc., employed in the branch or sub­ section 13 reveals that Congress believed in 1913 sidiary with special reference to their terms and that it was granting to national banks a power volatility. Information should be available on which they would not otherwise possess and had sources of liquidity—cash, balances with banks, not previously possessed. See remarks of Con­ marketable securities, and repayment flows—such gressmen Phelan, Helvering, Saunders and Glass, as will reveal their accessibility in time and any 51 Cong. Rec. 4676, 4798, 4885, and 5064 (Sep­ risk elements involved. tember 10, 12, 13 and 17 of 1913). Nevertheless, (3) Contingencies. Data on the volume and the Courts have long recognized the evolutionary nature of contingent items such as loan commit­ nature of banking and of the scope of the “inci­ ments and guaranties or their equivalents that dental powers” clause of 12 U.S.C. § 24. See permit analysis of potential risk exposure and Merchants Bank v. State Bank, 77 U.S. 604 liquidity requirements. (1870) (upholding the power of a national bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 451 to certify a check under the “incidental powers” tances are sometimes referred to as “commercial clause of 12 U.S.C. § 24). acceptances.”) The twelfth paragraph of section It now appears that, based on the Board’s 1923 13 authorizes member banks to make acceptances ruling and the Comptroller’s 1963 ruling, both “for the purpose of furnishing dollar exchange as State member banks and national banks may make required by the usages of trade” in foreign trans­ acceptances which are not of the type described actions. (Such acceptances are referred to as in section 13 of the Federal Reserve Act. Yet, “dollar exchange acceptances.”) In the twelfth this appears to be a development that Congress paragraph, there is a 10 per cent limit on the did not contemplate when it drafted the acceptance amount of dollar exchange acceptances that may provisions of section 13. be accepted for any one customer (unless ade­ The question is presented whether the amount quately secured) and a limitation on the aggregate limitations of section 13 should apply to accep­ amount of dollar exchange acceptances that a tances made by a member bank that are not of member bank may make. (The twelfth paragraph, the type described in section 13. (The amount in imposing these limitations, refers to the accep­ limitations are of two kinds: (a) a limitation on tance of “such drafts or bills of exchange referred the amount that may be accepted for any one to [in] this paragraph.”) Similarly, the seventh customer, and—(b) a limitation on the aggregate paragraph imposes on commercial acceptances a amount of acceptances that a member bank may parallel 10 per cent per-customer limitation, and make.) In interpreting any Federal statutory provi­ limitations on the aggregate amount of commercial sion, the primary guide is the intent of Congress; acceptances. (In the case of the aggregate limita­ yet, as noted earlier, Congress did not contemplate tions, the seventh paragraph states that “no bank in 1913 the development of so-called “ineligible shall accept such bills to an amount” in excess acceptances.” (Although there is some indication of the aggregate limit; the reference to “such that Congress did contemplate State member bills” makes clear that the limitation is only in banks’ making acceptances of a type not described respect of drafts or bills of exchange of the specific in section 13 [remarks of Congressman Glass, 51 type described in the seventh paragraph.) Cong. Rec. 5064], the primary focus of Congres­ Based on the language and parallel structure of sional attention was on the acceptance powers of the seventh and twelfth paragraphs of section 13, national banks.) In the absence of an indication and in the absence of a statement of Congressional of Congressional intent, we are left to reach an intent in the legislative history, the Board con­ interpretation that is in harmony with the language cludes that the per-customer and aggregate limita­ of the statutory provisions and with the purposes tions of the twelfth paragraph apply only to ac­ of the Federal Reserve Act. ceptances of the type described in that paragraph Section 13 authorizes acceptances of two types. (dollar exchange acceptances), and the per-cus­ The seventh paragraph of section 13 (12 U.S.C. tomer and aggregate limitations of the seventh § 372) authorizes certain acceptances that arise out paragraph (12 U.S.C. § 372) apply only to accep­ of specific transactions in goods. (These accep­ tances of the type described in that paragraph. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 OF fying shares) of the successor by merger to Corpus BANK HOLDING COMPANY ACT Christi Bank and Trust. Corpus Christi, Texas (“Bank”). The bank into which Bank is to be FIRST CITY BANCORPORATION OF TEXAS, merged has no significance except as a means to INC., HOUSTON, TEXAS facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of Order Approving Acquisition of Bank the successor organization is treated herein as the First City Bancorporation of Texas, Inc., Hous­ proposed acquisition of the shares of Bank. ton, Texas, a bank holding company within the Notice of the application, affording opportunity meaning of the Bank Holding Company Act, has for interested persons to submit comments and applied for the Board’s approval under § 3(a)(3) views, has been given in accordance with § 3(b) of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 of the Act. The time for filing comments and views per cent of the voting shares (less directors’ quali­ has expired, and none has been timely received. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN □ JUNE 1973 The Board has considered the application in light ices. The International Department of Applicant’s of the factors set forth in § 3(c) of the Act (12 lead bank will make available to Bank’s customers U.S.C. 1842(c)). clearance of foreign checks, issuance of foreign Applicant controls 13 banks with deposits of drafts, arrangements for letters of credit (commer­ $1.7 billion, representing 5.6 per cent of total cial and individual), foreign currencies, and loans deposits in commercial banks in Texas and is the in the Euro-dollar market. Considerations relating second largest banking organization in the State. to the convenience and needs of the communities (All banking data are as of June 30, 1972, adjusted to be served are consistent with and lend slight to reflect holding company formations and acqui­ support to approval of the application. It is the sitions approved by the Board through March 31, Board’s judgment that consummation of the 1973.) The acquisition of Bank, with deposits of proposed transaction would be in the public inter­ $113 million, would not change Applicant’s est and that the application should be approved. present rank among State banking organizations. On the basis of the record, the application is Bank ranks second among the 26 banks serving approved for the reasons summarized above. The the Corpus Christi banking market and holds 20 transaction shall not be consummated (a) before per cent of area deposits. The largest market bank, the thirtieth calendar day following the effective Corpus Christi State National Bank, Corpus date of this Order or (b) later than three months Christi, Texas (“National Bank”) controls ap­ after the effective date of this Order, unless such proximately 32 per cent of total market deposits. period is extended for good cause by the Board, This proposal represents Applicant’s initial entry or by the Federal Reserve Bank of Dallas pursuant into the Corpus Christi banking market and also to delegated authority. represents the second attempt by a bank holding By order of the Board of Governors, effective company to acquire one of the market banks. May 3, 1973. Applications have recently been approved for the Voting for this action: Chairman Burns and Governors acquisition by a bank holding company of National Daane, Sheehan, and Bucher. Voting against this action: Governor Robertson. Absent and not voting: Governors Mit­ Bank and for the merger of the fourth and ninth chell and Brimmer. largest area banks. Primary competition in the Board action was taken while Governor Robertson was a market is concentrated between National Bank and Board Member. Bank, whereas the 24 smaller banks compete (Signed) Tynan Smith, among themselves for consumer loans and deposits [seal] Secretary of the Board. and for the smaller commercial accounts. Con­ summation of this proposal could improve Bank’s ability to compete with National Bank without Order Approving Merger of Banks adversely affecting any of the area banks. New Corpus Christi Bank and Trust, Corpus Bank does not compete with any of Applicant’s Christi, Texas, a nonoperating proposed State subsidiary banks, the closest of which is located member bank of the Federal Reserve System, has in the Houston banking market, 185 miles from applied pursuant to the Bank Merger Act (12 Corpus Christi. Furthermore, it does not appear U.S.C. 1828(c)) for the Board’s prior approval to that significant future competition would develop acquire the assets and assume the liabilities of between them in view of their wide separation, Corpus Christi Bank and Trust, Corpus Christi, the presence of numerous intervening banks, and Texas (“Bank”), under the name of Bank and restrictions placed on branching by State laws. charter of Applicant. The bank into which Bank Competitive considerations are consistent with ap­ is to be merged has no significance except as a proval of the application. means to facilitate the acquisition of the voting The financial condition and managerial re­ shares of Bank by First City Bancorporation of sources of Applicant, its subsidiary banks, and Texas, Inc., Houston, Texas. Bank are considered to be satisfactory, and pros­ As required by the Act, notice of the proposed pects for each appear favorable. Banking factors acquisition of assets and assumption of liabilities, are consistent with approval of the application. in form approved by the Board, has been pub­ The primary banking needs of the Corpus Christi lished, and the Board has requested reports on area are being served at the present time. How­ competitive factors from the Attorney General, the ever, Applicant proposes to assist Bank in provid­ Comptroller of the Currency, and the Federal ing the area with additional expertise in real estate, Deposit Insurance Corporation. The Board has in petroleum and gas financing and in trust serv­ considered all relevant material contained in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 453 record and all comments received in light of the of keeping a constant vigilance and control over factors set forth in the Act. the Statewide expansion of banking organizations. On the basis of the record, the application is The granting of permission to major Statewide approved for the reasons summarized in the holding companies to acquire all the larger banks Board’s Order of this date, approving the applica­ in secondary banking markets will limit severely tion of First City Bancorporation of Texas, Inc., the expansion possibilities for the smaller regional Houston, Texas, to acquire 100 per cent of the holding companies presently emerging in the voting shares (less directors’ qualifying shares) of State. Additionally, it will also act as a deterrent the successor by purchase of assets and assumption to new bank holding company formations, because of liabilities of Corpus Christi Bank and Trust, there will be no remaining substantially large in­ Corpus Christi, Texas. The transaction shall not dependent banks to act as lead banks in the new be consummated (a) before the thirtieth calendar formations. day following the date of this Order or (b) later Careful consideration of the record in this case than three months after the date of this Order, discloses no overriding benefits to customers of unless such period is extended for good cause by the Corpus Christi banking market which would the Board or by the Federal Reserve Bank of support approval of this application notwithstand­ Dallas pursuant to delegated authority. ing its adverse effects on potential competition in By order of the Board of Governors, effective the relevant areas. The same benefits which are May 3, 1973. alleged to accrue from this acquisition in the areas of international banking, and petroleum financing Voting for this action: Chairman Burns and Governors could also be realized if Applicant were granted Daane, Sheehan, and Bucher. Voting against this action: Governor Robertson. Absent and not voting: Governors Mit­ approval to enter this market through less anti­ chell and Brimmer. competitive means, e.g., the acquisition of one Board action was taken while Governor Robertson was a Board Member. of the smaller market banks. I believe this proposal will have a deleterious (Signed) Tynan Smith, effect on future competition in the Corpus Christi [seal] Secretary of the Board. area and on the structure of banking in the State of Texas. Dissenting Statement of Governor Robertson FIRST INTERNATIONAL BANCSHARES, INC., DALLAS, TEXAS I would deny this application by the second Order Denying Acquisition of Bank largest banking organization in Texas to acquire the second largest bank in the Corpus Christi First International Bancshares, Inc., Dallas, banking market because the adverse effect of the Texas, a bank holding company within the mean­ proposal on potential competition would not be ing of the Bank Holding Company Act, has ap­ justified on the basis of needed conveniences or plied for the Board’s approval under § 3(a)(3) of public benefits. the Act (12 U.S.C. 1842(a)(3)) to acquire all of Applicant has embarked upon a Statewide ex­ the voting shares (less directors’ qualifying shares) pansion program into all the major banking mar­ of the successor by merger to Arlington Bank & kets throughout Texas. It has either acquired or Trust, Arlington, Texas (“Bank”). The bank into announced its intentions of acquiring nine other which Bank is to be merged has no significance banks which would increase its present control of except as a means to facilitate the acquisition of total deposits of commercial banks in Texas from the voting shares of Bank. Accordingly, the 5.6 per cent to 7.6 per cent. Consequently, if this proposed acquisition of shares of the successor application were denied, Applicant would be a organization is treated herein as the proposed ac­ prospective entrant into the highly concentrated quisition of the shares of Bank. Corpus Christi banking market (the three largest Notice of the application, affording opportunity banks hold 60 per cent of total market deposits). for interested persons to submit comments and Applicant is capable of entry either through de views, has been given in accordance with § 3(b) novo means or through the acquisition of one of of the Act. The time for filing comments and views the smaller market banks, either of which would has expired, and the Board has considered the be infinitely more desirable from a competitive application and all comments received in light of standpoint than the instant proposal. the factors set forth in § 3(c) of the Act (12 U.S.C. This Board is charged with the responsibility 1842(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN □ JUNE 1973 Applicant controls two banks with aggregate cant’s Dallas bank has an amount of commercial deposits of $1.7 billion, representing 5.6 per cent and industrial loans outstanding to accounts in of the total commercial bank deposits in the State, Bank’s service area that is six times larger than and is the largest bank holding company in Texas. the amount of commercial and industrial loans (All banking data are as of June 30, 1972.) Appli­ outstanding at Bank. The Dallas banking market cant’s acquisition of Bank ($65.5 million in de­ is highly concentrated with 62 per cent of total posits) would not represent a significant increase market deposits being held by the three largest in Applicant’s share of total deposits in the State. banking organizations; approval of this application Applicant presently controls through direct w'ould aggravate this already high level of con­ stock ownership one bank in the Dallas banking centration. Bank is one of the largest independent market, approximated by the Dallas RMA,1 and banks in the market. It is especially attractive as holds 23.4 per cent of total market deposits, a potential affiliate of a bank holding company thereby ranking as the second largest of the 106 making its initial entry into the area. banking organizations in that market. Bank, the The acquisition of Bank by a banking organi­ largest of six banks in Arlington, also competes zation not presently represented in the Dallas in this banking market and controls 1.0 per cent banking market would have a salutary effect on of total market deposits thereby ranking as the the existing high degree of deposit concentration eighth largest of the 106 banking organizations in present in this market. The Board concludes, the market. If this application were approved, therefore, that the competitive factors relating to Applicant would remain the second largest bank­ this application are adverse; that consummation of ing organization in the market and would control the proposed transaction would (1) eliminate some 24.4 per cent of total deposits. existing competition between Applicant’s lead There is substantial commuting between Dallas bank and Bank; (2) eliminate a banking alternative and Arlington. Traffic patterns suggest consid­ in this concentrated market; (3) increase deposit erable integration of the two areas, and banks in concentration among the largest organizations in each area use advertising media that reaches the the Dallas market; and (4) remove Bank as a other. Further, large Dallas banks serve a signifi­ potential means of entry by other organizations not cant number of commercial and industrial loan presently represented in this market. Accordingly, accounts in Arlington, and there appear to be no competitive considerations require denial of this significant differences in banking hours, service application unless the anticompetitive effects of the charges, savings account rates, and services of­ proposal are outweighed by benefits to the public fered, among banks located in Dallas and Arling­ in meeting the convenience and needs of the com­ ton. The similarity in competitive behavior among munities to be served. banks in these two areas apparently reflects the The financial condition and managerial re­ substantial integration of the two areas that has sources and future prospects of Applicant and its occurred and that appears likely to accelerate with subsidiary banks appear generally satisfactory. the recent establishment and effectiveness of the The financial condition and managerial resources North Central Texas Council of Governments and of Bank are considered to be generally satis­ the extensive economic development that has been factory, and prospects for its future growth and and should continue to be induced by the Regional development are favorable; its deposits have in­ Airport to be completed near Arlington in the near creased approximately 63 per cent during the last future. five years. Thus, banking factors are consistent Bank and Applicant’s Dallas subsidiary bank are with approval but provide no significant support only twenty miles apart. Applicant’s Dallas bank for such action. derives a significant number of demand deposit and The banking needs of the residents of the Dallas commercial and industrial and installment loan area appear to be adequately served at the present accounts from Bank’s service area and, although time by existing facilities. Consummation of the Bank is the largest bank in its service area, Appli­ proposed transaction would have little impact on the convenience and needs of banking customers ‘RMA refers to Ranally Metro Area which is defined as in the area. Accordingly, considerations relating the central city plus every community, 8 per cent or more of the total population of which, or 15 per cent or more of to the convenience and needs of the communities the labor force of which, commutes to the central city, based to be served do not outweigh the adverse competi­ on the Census of Population. No community, 35 per cent or more of the labor force of which is engaged in agriculture, tive effects of the proposal. It is the Board’s is included in an RMA. judgment that consummation of the proposed ac­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 455 quisition would not be in the public interest and market. Furthermore, it appears unlikely that Ap­ that the application should be denied. plicant’s acquisition of Bank would preclude other On the basis of the record, the application is banking organizations from entering the market. denied for the reasons summarized above. On the basis of figures for the period 1960-70, By order of the Board of Governors, effective the Logan area (Logan, Providence, Millville, May 8, 1973. North Logan, and River Heights) has been growing at a rate slightly faster than that of the Voting for this action: Chairman Burns and Governors Daane, Brimmer, Sheehan, and Bucher. Absent and not voting: State as a whole (21.0 per cent vs. 18.9 per cent). Governor Mitchell. In the northern portion of Logan, where Bank will (Signed) Tynan Smith, be located, eight manufacturing plants and four [seal] Secretary of the Board. shopping centers have been constructed since 1960 and increased business activity is expected as a FIRST SECURITY CORPORATION, result of a recent zoning change. Any increase in SALT LAKE CITY, UTAH the share of market deposits held by Applicant that might result in the short run following consumma­ Order Approving Acquisition of Bank tion of this proposal may be dissipated with the arrival of new entrants to serve the expanding area; First Security Corporation, Salt Lake City, indeed, the record indicates that a charter for a Utah, a bank holding company within the meaning new bank to be located approximately .7 mile of the Bank Holding Company Act, has applied south of Bank’s site was recently approved by the for the Board’s approval under § 3(a)(3) of the State Commissioner of Financial Institutions. In Act (12 U.S.C. 1842(a)(3)) to acquire all of the the Board’s view, the competitive factors in this voting shares (less directors’ qualifying shares) of case are distinguishable from those in a recent case First Security Bank of Logan, National Associa­ involving a proposal to acquire a proposed new tion, Logan, Utah (“Bank”), a proposed new bank where the Board found that the applicant was bank. dominant;1 in that case, at least one other bank Notice of the application, affording opportunity in the area had not yet had sufficient time to for interested persons to submit comments and establish itself as a viable competitor, and the views, has been given in accordance with § 3(b) population of the relevant area had remained of the Act. The time for filing comments and views somewhat stable. Furthermore, the Board believes has expired, and the Board has considered the that the facts in the instant application are sub­ application and all comments received in the light stantially similar to a proposal by Applicant to of the factors set forth in § 3(c) of the Act (12 establish a new bank in Springville, Utah, which U.S.C. 1842(c)). application was approved by the Board in 1970.2 Applicant controls the largest bank in the State In brief, the Board believes that consummation of of Utah and three other Utah banking subsidiaries the proposal under consideration will not have and is the largest banking organization in the State, such a significant adverse effect on potential com­ controlling $620 million of deposits which repre­ petition in the Cache County market as to warrant sent 28.9 per cent of the total commercial bank denial. deposits in the State. (All banking data are as of The financial and managerial resources of Ap­ June 30, 1972.) plicant and the present subsidiary banks are gen­ In Cache County, where the proposed bank erally satisfactory; prospects of Bank under Ap­ would operate, Applicant’s lead banking subsi­ plicant’s control appear favorable. The establish­ diary has four banking offices (one in the City of ment of Bank will provide, through affiliation with Logan) with aggregate deposits of $31.4 million, Applicant, a convenient source of a full range of representing 39.1 per cent of the total commercial banking services to the residents and businesses bank deposits in that market area. Of the four other of northern Logan. Thus, banking factors, as well banks in the County (each of which has only one as considerations relating to the convenience and office there), three are located in the City of Logan. needs of the communities to be served, are con­ Since Bank is a proposed bank and the other sistent with approval of the application. It is the Logan banks are well established, consummation of the proposal would not eliminate existing com­ petition; nor does there appear to be a likelihood 1 First at Orlando Corporation, 1973 Federal Reserve Bul­ letin, 302. that establishment of a new bank would have an 2First Security Corporation, 1970 Federal Reserve Bulle­ undue adverse effect on the other banks in the tin, 952. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN □ JUNE 1973 Board’s judgment that the proposed acquisition In voting to deny an application to establish a would be in the public interest and that the appli­ de novo bank, I would not want to deprive a cation should be approved. community of a convenient source of banking On the basis of the record, the application is resources that it may need. The facts of record approved for the reasons summarized above. The do not support a conclusion that there would be transaction shall not be consummated (a) before such a deprivation. Applicant has a banking office the thirtieth calendar day following the effective 1.1 miles from the proposed site of Bank, and date of this Order or (b) later than three months there are three other banking offices on that stretch after that date, and (c) First Security Bank of of property; hence, as a source of depository and Logan, National Association, shall be opened for other routine banking services, Bank may repre­ business not later than six months after the effec­ sent a minimal convenience. With respect to spe­ tive date of this Order. Each of the periods de­ cialized services, such as investment, trust and scribed in (b) and (c) may be extended for good data processing services, it appears that customers cause by the Board, or by the Federal Reserve of Bank will be referred to Applicant’s other Bank of San Francisco pursuant to delegated au­ banking office in Logan; and, of course, this thority. represents no added convenience or additional By order of the Board of Governors, effective service. Finally, other banking organizations may May 16, 1973. establish an office in that part of Logan, providing Voting for this action: Governors Daane, Brimmer, Sheehan a convenient alternative source of banking serv­ and Bucher. Voting against this action: Governor Robertson. ices.1 Absent and not voting: Chairman Burns and Governor I see no good reason to assist Applicant to Mitchell. Board action was taken while Governor Robertson was a maintain its position in this concentrated market. Board member. I much prefer to preserve opportunities for entry (Signed) Tynan Smith, by less dominant banking organizations, especially [seal] Secretary of the Board. when it appears that such opportunities are likely to be infrequent. Accordingly, I would deny this Dissenting Statement of application. Governor Robertson FIRST PIEDMONT CORPORATION, The Board’s action today represents a wasted GREENVILLE, SOUTH CAROLINA opportunity to provide for a lessening of concen­ tration in the Cache County, Utah, banking mar­ Order Approving Acquisition of Bank ket, and for that reason I dissent from the action. First Piedmont Corporation, Greenville, South There are presently only eight banking offices Carolina, a bank holding company within the in Cache County, four of which belong to Appli­ meaning of the Bank Holding Company Act, has cant’s lead bank. The three largest banking orga­ applied for the Board’s approval under § 3(a)(3) nizations in the market hold 87.6 per cent of the of the Act (12 U.S.C. 1842(a)(3)) to acquire 9.5 total deposits in the market and 85.6 per cent of per cent of the voting shares of First Palmetto State demand deposits in accounts under $20,000 be­ Bank and Trust Company, Columbia, South longing to individuals, partnerships, and corpora­ Carolina (“Bank”). tions. The area is not particularly attractive for Notice of the application, affording opportunity new bank formation, since the population for for interested persons to submit comments and banking office ratio is only 5,291 and the deposits views, has been given in accordance with § 3(b) per office ratio is $10 million. The growth of the of the Act. The time for filing comments and views northern portion of Logan during the period 1960has expired, and the Board has considered the 70 and the expected growth in the future, as a application and all comments received in light of result of recent zoning changes, offer one of the the factors set forth in § 3(c) of the Act (12 U.S.C. few opportunities for deconcentration of banking 1842(c)). resources in the market to occur. Applicant’s one present banking subsidiary, On the basis of the facts of this case, by granting which has its head office and two branches in this application, the Board may be depriving others Greenville, South Carolina, has deposits of $27.1 of an opportunity to enter in the market. It is certainly true that the Board is enabling Applicant ^here is at least one other banking organization—a sizable to retain (and possibly increase) the share of de­ bank holding company—not presently represented in the mar­ posits in the market that it holds. ket that is seeking regulatory approval to enter the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 457 million representing less than 1 per cent of com­ to divert earnings to the holding company in forms mercial bank deposits in South Carolina. (All other than dividends. This and other possible dis­ banking data are as of June 30, 1972.) The acqui­ advantages to minority shareholders could ad­ sition of shares of Bank would not affect the versely affect the ability of small banks to raise concentration of banking resources in the State. capital if bank stock purchasers were aware that a Bank ($8.2 million of deposits), organized in holding company could purchase mere control. February, 1971, is the ninth largest of eleven The Board regards control over a bank’s assets and banks competing in the relevant market area (ap­ earnings as a corporate asset belonging to all share­ proximated by the Columbia SMSA) and holds holders of the bank. Where, as here, control over only 1.6 per cent of the market deposits. Among the assets and earnings is not acquired, the reasons those banks competing with Bank are five of the for the Board’s policy do not apply. Furthermore, largest in the State. Applicant’s only subsidiary at such time as Applicant comes in to purchase bank is located in a separate market area, approxi­ control, the Board can examine the total situation mately 100 miles southeast of Greenville. to ensure that other shareholders have not been This application presents the Board with a situ­ unduly disadvantaged. ation in which, rather than acquiring control, Ap­ With respect to the other considerations in­ plicant is making a relatively small, noncontrolling volved in the Board’s deliberation on this applica­ investment in Bank. Both Applicant and Bank are tion, the proposal would not be objectionable even relatively young institutions. Applicant has indi­ were it to be considered an acquisition of control. cated that it cannot presently offer to purchase all There is no present competition between any of of Bank’s shares as the assumption of additional Applicant’s subsidiaries and Bank. Furthermore, debt for the acquisition would not be financially it appears unlikely that any significant competition prudent for Applicant at this time. Acquisition would develop in the future due to the distances through exchange of the additional shares neces­ separating the banking offices and the fact that both sary to control Bank would result in an unaccepta­ institutions are relatively new. The Board con­ ble level of dilution of Applicant’s current earnings cludes that consummation of the proposal would per share. Applicant’s stated purpose for acquiring not eliminate existing or potential competition, nor the 9.5 per cent interest in Bank is to expose the would it have adverse effects on any competing operations of the holding company to the manage­ bank. ment and directors of Bank in anticipation that Considerations relating to the financial and Bank’s management will recommend to their managerial resources and future prospects of Ap­ stockholders at some future date that the holding plicant, its subsidiaries, and Bank are satisfactory company acquire control of Bank. and consistent with approval of the application. An acquisition of less than a controlling interest Major banking needs in the area are being met. is not a normal acquisition for a bank holding However, association of Bank with Applicant company. However, the Bank Holding Company could provide it with more ready access to services Act authorizes investments of up to 5 per cent which might make Bank more competitive with without Board approval, and, by requiring prior the other organizations serving the relevant mar­ Board approval for the acquisition of more than ket. In addition, the proposed transaction is the 5 per cent of the voting shares of a bank, clearly first step in an acquisition that should ultimately contemplates investments between 5 and 25 per improve the structure of banking in South Caro­ cent. Furthermore, as mentioned above, this pro­ lina.1 Therefore, considerations relating to the posal represents the first step in Applicant’s convenience and needs of the communities to be planned acquisition of control. served are consistent with approval. It is the The Board believes, however, that such pro­ Board’s judgment that the proposed transaction posals must be carefully examined to ensure that would be in the public interest, and that the appli­ they do not serve the private interests of certain cation should be approved. shareholders to the undue disadvantage of others. Applicant controls four nonbanking subsi­ The major concern raised in this regard is whether diaries, Equipment Leasing Corporation of South the proposal is consistent with the Board’s policy requiring applicants to make substantially equiva­ ^he four largest banking organizations on South Carolina lent offers to all shareholders of a bank. That control 53 per cent of the State’s commercial bank deposits. The proposed acquisition should ultimately result in the cre­ policy is, in general, based on a concern that a ation of a multi-bank holding which should make the State’s controlling holding company can use its position existing banking structure more competitive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN □ JUNE 1973 Carolina, The Falco Corporation, Computer Re­ Banking and Currency, when reporting out its sources, Inc., and First Piedmont Travel, Inc., version of the original Bank Holding Company Act which, under the 1970 Amendments, are subject in 1956, stated: “In general, the philosophy of to divestiture prior to December 31, 1980, if Board this bill is that bank holding companies ought to approval for retention is not obtained. Equipment confine their activities to the management and Leasing Corporation of South Carolina and The control of banks and that such activities should Falco Corporation are both engaged in equipment be conducted in a manner consistent with the and vehicle leasing. Computer Resources, Inc. public interest.” Under the Board’s own reading provides electronic data processing, and First of the facts in this case, a controlling interest is Piedmont Travel, Inc. is a travel agency. In addi­ not being acquired by Applicant. That being the tion to activities carried on through subsidiaries, case, the majority should recognize that the activ­ Applicant directly (through its First Piedmont ity is purely a financial investment and as such Management Group) is engaged in the activity of is not an appropriate activity for the holding com­ management consulting. This service was inaugu­ pany. rated between June 30, 1968 and December 31, In our opinion, the Board’s failure to treat the 1970. activity in this manner creates substantial possi­ In approving this application, the Board finds bilities that the interests of other shareholders of that the combination of a 9.5 per cent interest in Bank will be harmed. More importantly, it repre­ an additional bank with Applicant’s existing non­ sents a reversal of a position to which the Board banking subsidiaries is unlikely to have an adverse previously attached considerable importance. In effect upon the public interest at the present time. fact, when the Bank Holding Company Act However, Applicant’s banking and nonbanking Amendments were being considered in 1970, the activities remain subject to Board review and the Board asked for—and Congress granted—author­ Board retains the authority to require Applicant ity to prevent the domination of banks by firms to modify or terminate its nonbanking activities which own more than 5 per cent but less than 25 or holdings if the Board at any time determines per cent of the bank’s stock. By approving this that the combination of Applicant’s banking and application, the Board is using this authority for nonbanking activities is likely to have adverse a purpose exactly the opposite of that anticipated effects on the public interest. at the time the 1970 amendments were passed. On the basis of the record, the application is The majority states that the fact that any future approved for the reasons summarized above. The acquisition of shares requires the Board’s approval tansaction shall not be consummated (a) before the protects the other shareholders of the Bank since thirtieth calendar day following the effective date the Board can examine the equity of the situation of this Order or (b) later than three months after at that time. While this is true, it overlooks the the effective date of this Order, unless such period fact that Applicant, by acquiring about 10 per cent is extended for good cause by the Board, or by of the Bank’s stock, virtually eliminates Bank as the Federal Reserve Bank of Richmond pursuant an acquisition candidate for any other holding to delegated authority. company and thus deprives the other shareholders By order of the Board of Governors, effective of a corporate opportunity properly belonging to May 16, 1973. all of them. It is obvious that any other holding Voting for this action: Chairman Burns and Governors company would want to acquire over eighty per Daane, Sheehan, and Bucher. Voting against this action: cent of the outstanding stock in order to be assured Governors Robertson and Brimmer. Absent and not voting: Governor Mitchell. of the tax benefits of consolidation. Applicant’s Board action was taken while Governor Robertson was a posture of purchasing the Bank on the installment Board Member. plan would prevent such assurance. While the (Signed Tynan Smith, majority statement looks forward to the supposed [seal] Secretary of the Board. benefits of Applicant’s eventual acquisition, in reality Applicant has acquired an option at the Dissenting Statement of expense of the other shareholders. This option can Governors Robertson and Brimmer be exercised or not depending on later market The Board’s Order approving this application conditions. is based on a serious—and potentially adverse— As already indicated, the Board asked Congress misconception of the nature and purposes of a bank for power to find control in situations where the holding company. The Senate Committee on company controlled less than 25 per cent of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 459 voting stock because it felt such power was neces­ cent of the total deposits in commercial banks in sary to prevent evasions of the Act and the Board’s Massachusetts, and is the fifth largest banking regulations. However, rather than using that organization in the State.2 The acquisition of Han­ power, the Board now finds that no control exists cock Bank ($66.7 million in deposits) would in­ and therefore the reasons for the Board’s equal crease Applicant’s control of Statewide deposits offer policy do not apply. As discussed above, by .6 percentage points, and its ranking among such a finding clearly works to the disadvantage Massachusetts banking organizations would not of the other shareholders. change. In support of the application, the Board con­ Applicant’s existing subsidiary bank, New cludes that it is the first step in an acquisition that England Merchants National Bank (“Merchants will ultimately improve the structure of banking Bank”), has its home office in Suffolk County and in South Carolina. Such conjectural benefits—de­ is the fourth largest commercial bank in the Boston pendent solely on Applicant’s future wishes—do banking market,3 controlling approximately 10 per not outweigh the present adverse effects on other cent of market deposits. Hancock Bank is the shareholders. If Applicant cannot presently afford largest independent bank with its home office in the acquisition of a controlling interest in Bank, Norfolk County, and is the thirteenth largest com­ it should not be allowed to acquire any of the mercial bank in the Boston banking market, con­ Bank’s stock. We would deny the application. trolling .8 per cent of market deposits. Although Governor Brimmer also would deny for the Applicant’s acquisition of Hancock Bank would reasons set forth in his Dissenting Statement in increase its share of market deposits by only .8 the matter of the Applications of First National percentage points, it would aggravate the high City Corporation, New York, New York, to ac­ level of deposit concentration in the market (the quire: (1) the successor by merger to The First five largest banking organizations presently control Trust and Deposit Company of Oriskany Falls, in excess of 80 per cent of market deposits). Oriskany Falls, New York; and (2) the successor Merchants Bank and Hancock Bank are restricted by merger to the Central Valley National Bank, by Massachusetts banking law from branching Central Valley, New York. (59 Federal Reserve outside of their home office counties; however, the Bulletin 114) main offices of each bank are located only eight miles apart and they have several branches in close NEW ENGLAND MERCHANTS COMPANY, proximity to one another. It appears that Mer­ INC., BOSTON, MASSACHUSETTS chants Bank derives a significant dollar volume of loans and deposits from Hancock Bank’s pri­ Order Denying Acquisition of Bank mary service area. One branch of Merchants Bank New England Merchants Company, Inc., Bos­ derives more than 35 per cent of its Individual ton, Massachusetts, a bank holding company Partnership and Corporations (“IPC”) demand within the meaning of the Bank Holding Company deposits and more than 26 per cent of its loans Act, has applied for the Board’s approval under from Hancock Bank’s primary service area, and § 3(a)(3) of the Act (12 U.S.C. 1842 (a)(3)) to another branch of Merchants Bank derives more acquire all of the voting shares of Hancock Bank than 26 per cent of its IPC demand deposits and and Trust Company, Quincy, Massachusetts more than 44 per cent of its loans from Hancock (“Hancock Bank”). Bank’s primary service area. Although loans and Notice of the application, affording opportunity deposits derived from Hancock Bank’s primary for interested persons to submit comments and service area represent a relatively small percentage views, has been given in accordance with § 3(b) of Merchants Bank’s total loans and deposits, they of the Act. The time for filing comments and views represent, respectively, approximately 78 and 58 has expired, and the Board has considered the per cent of the total loans and deposit dollar application and all comments received in light of volume that Hancock Bank derives from its own the factors set forth in § 3(c) of the Act (12 U.S.C. primary service area. Further, Hancock Bank 1842(c)). Applicant controls one bank1 with deposits of 2Unless otherwise noted, banking data are as of June 30, 1972, adjusted to reflect holding company formations and approximately $844 million, representing 7.2 per acquisitions through March 31, 1973. *By Order of May 3, 1973 (38 Federal Register 12259), 3The Boston banking market is approximated by the Boston the Board approved Applicant’s acquisition of the successor Standard Metropolitan Statistical Area which encompasses all by merger to The Barnstable County National Bank of Hyannis, of Suffolk County and portions of Essex, Middlesex, Norfolk Hyannis, Massachusetts (“Barnstable Bank’’). and Plymouth Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN □ JUNE 1973 derives approximately 5 per cent of its total loans munities to be served do not outweigh the adverse and deposits from Merchants Bank’s home office effects this proposal would have on competition county. On the basis of these and other facts of in the Boston banking market. It is the Board’s record, the Board concludes that significant exist­ judgment that consummation of the proposed ac­ ing competition would be eliminated upon con­ quisition would not be in the public interest and summation of this proposal. this application should be denied. Hancock Bank is the third largest remaining On the basis of the record, the application is independent bank in the Boston banking market denied for the reasons summarized above. and the largest remaining independent bank having By order of the Board of Governors, effective its home office in Norfolk County. Applicant’s May 22, 1973. acquisition of Hancock Bank would eliminate one Voting for this action: Chairman Burns and Governors of the more desirable remaining independent banks Brimmer, Sheehan, and Bucher. Absent and not voting: Gov­ located in the Boston banking market, with the ernors Mitchell and Daane. ability to branch throughout Norfolk County, as (Signed) Chester B. Feldberg, a possible means of entry for a banking organi­ [seal] Assistant Secretary of the Board. zation not presently represented in the Boston banking market. Applicant’s acquisition of Han­ SOUTHEAST BANKING CORPORATION, cock Bank would also aggravate the high level MIAMI, FLORIDA of deposit concentration presently existing in the Boston banking market. It appears that Applicant Order Denying Acquisition of Bank could enter Norfolk County either by acquiring one Southeast Banking Corporation, Miami, of the smaller remaining independent banks lo­ Florida, a bank holding company within the cated therein or by establishing a de novo bank. meaning of the Bank Holding Company Act, has It is the Board’s judgment that consummation of applied for the Board’s approval under § 3(a)(3) the proposal would have a significantly adverse of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 effect on existing and potential competition. per cent or more of the voting shares of Deland The financial and managerial resources of Ap­ State Bank, Deland, Florida (“Bank”). plicant, Barnstable Bank, and Merchants Bank are Notice of the application, affording opportunity satisfactory, particularly in view of Applicant’s for interested persons to submit comments and plans to increase Merchants Bank’s capital in the views, has been given in accordance with § 3(b) near future. The financial and managerial resources of the Act. The time for filing comments and views and future prospects of Hancock Bank are gener­ has expired, and the Board has considered the ally satisfactory and consistent with approval of application and all comments received in light of the application. Since Applicant proposed to in­ the factors set forth in § 3(c) of the Act (12 U.S.C. crease Hancock Bank’s capital upon approval of 1842(c)). this application, banking factors lend some weight Applicant controls 21 banks with aggregate de­ toward approval of the application; however, such posits of $1.3 billion, representing 7.9 per cent factors do not outweigh the aforementioned ad­ of the total commercial bank deposits held by verse effects on competition. In this regard, it is Florida banks, and is the largest banking organi­ noted that although an increase in Hancock Bank’s zation in the State. (All banking data are as of capital would be desirable, its managerial and June 30, 1972 and reflect holding company for­ financial resources are sound and its future pros­ mations and acquisitions approved through April pects as a viable competitor in Norfolk County 30, 1973.) The acquisition of Bank (deposits of and the Boston market, either as an independent $20.6 million) would increase Applicant’s control bank or as a member of a holding company sys­ of commercial bank deposits in Florida by onetem, are good. tenth of one percentage point and accordingly Applicant proposes to offer, through Hancock would not result in a significant increase in con­ Bank, new and improved services, including trust, centration of banking resources in the State.1 international banking, equipment leasing, and 1 Applicant has filed separate applications to acquire 80 per specialized credit advisory services. However, it cent or more of the voting shares of The First National Bank appears that such services are presently conven­ of Maitland, Maitland, and Peoples Bank of Venice, Venice, iently available to the public in the area served both in Florida. Affiliation of both banks would increase Applicant’s share of the total Florida commercial bank deposits by Hancock Bank. Therefore, considerations re­ to 8.3 per cent, while its State-wide competitive position would lating to the convenience and needs of the com­ remain unaltered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 461 Bank is the second largest of five banks in the and needs of the communities to be served. relevant banking market (approximated by the The financial condition of Applicant and its western portion of Volusia County) and controls subsidiaries are considered to be satisfactory in 19 per cent of total market deposits. Applicant’s view of recent injections of equity capital; man­ existing subsidiary in the market, Southeast Bank agement is good and future prospects are favor­ of Deltona (“Deltona Bank”), with deposits of able. The financial condition and managerial re­ $11.1 million, is the fourth largest bank therein sources of Bank are generally satisfactory and holding 10 per cent of the total commercial de­ prospects for its future growth are favorable. Thus, posits. Approval of this application would increase banking factors are consistent with approval but Applicant’s share in the market from 10 per cent provide no significant support for such action. to 29 per cent and while this would not give The banking needs of the relevant communities Applicant a dominant position,2 it would substan­ are presently being met by the existing banks, and tially increase concentration in the market. (The Applicant states that it does not propose to intro­ three largest organizations control 80 per cent of duce any services that are not currently available. market deposits; approval of this application Consummation of the proposed transaction, there­ would increase the amount to 89 per cent.) fore, would have little impact on the convenience The record reveals that there is no existing and needs of banking customers in the area. Ac­ competition between Bank and any of Applicant’s cordingly, considerations relating to the conven­ subsidiaries located outside the relevant banking ience and needs of the communities to be served market. As far as competition within the market do not outweigh the adverse competitive effects is concerned, it appears that the respective service of the proposal. It is the Board’s judgment that areas of Bank and Deltona Bank (Applicant’s consummation of the proposed acquisition would subsidiary) do not presently overlap. However, not be in the public interest and that the application there is evidence indicating that both banks com­ should be denied. pete directly with respect to the residents of On the basis of the record, the application is Orange City (population of 1,772), a community denied for the reasons summarized above. without a banking facility that is located approxi­ By order of the Board of Governors, effective mately midway between Bank and Deltona Bank. May 29, 1973. Consummation of the proposal would eliminate Voting for this action: Chairman Burns and Governors this existing competition as well as the possibility Daane, Brimmer, Sheehan and Bucher. Absent and not voting: of strong competition developing between them in Governor Mitchell. the future. (Signed) Tynan Smith, The acquisition of Bank by a banking organi­ [seal] Secretary of the Board. zation not presently represented in the west Volu­ sia County banking market could have a beneficial CENTRAL BANCORP., INC., effect on competition in this area. The Board MIAMI, FLORIDA therefore finds that it is likely that the proposed acquisition would have significant adverse effects Order Denying Acquisition of Bank on competition in the relevant banking market by Central Bancorp., Inc., Miami, Florida, has increasing deposit concentration and removing a applied for the Board’s approval under § 3(a)(3) banking alternative therein, by eliminating some of the Bank Holding Company Act (12 U.S.C. existing competition and the possibility that strong 1842 (a)(3)) to acquire 80 per cent or more of future competition would develop between Bank the voting shares of Central National Bank of and Applicant’s Deltona subsidiary, and by fore­ Miami, Miami, Florida (“Bank”). closing the possibility that Bank could serve as Notice of the application, affording opportunity a potential means of entry by other banking orga­ for interested persons to submit comments and nizations not presently represented in the market. views, has been given in accordance with § 3(b) Accordingly, competitive considerations require of the Act. The time for filing comments and views denial of this application unless the anticompeti­ has expired, and the Board has considered the tive effects of the proposal are outweighed by application and all comments received in light of benefits to the public in meeting the convenience the factors set forth in § 3(c) of the Act (12 U.S.C. 1842(c)). 2Barnett Bank of Deland, N.A. (deposits of $50.4 million), a subsidiary of Barnett Banks of Florida, is the largest organi­ Applicant presently controls the Central Bank zation in the market with 46 per cent of market deposits. and Trust Company and Central Bank of North Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN □ JUNE 1973 Dade, both located in Miami, Florida, representing clined from $1.7 million in 1970 to $728 thousand about one-half of one per cent of deposits in in 1972. Its other subsidiary bank showed income commercial banks in Florida and two and a half before income taxes and securities gains of $270 per cent of such deposits in Dade County.1 The thousand in 1970 and a loss before income taxes acquisition of Bank (deposits of $26.6 million) and securities gains of $105 thousand in 1972 (loss would have no significant effect on the concentra­ of $213 thousand for 1971). Bank’s income, on tion of banking resources in Florida and would the other hand, has been level over the last three increase Applicant’s share of deposits in Dade years. Given this financial history, the Board be­ County by less than one-half of a percentage point. lieves it is highly unlikely that Applicant can Although all three banks compete in the same market its proposed stock offering for a figure banking market, there is little existing competition which represents 25 times 1972 income before between them due to the fact that the institutions income taxes and securities gains. have been under substantially common ownership While the inclusion of Bank into Applicant’s since 1968 (Applicant’s principal shareholder system might improve Applicant’s financial con­ owns over 54 per cent of Bank’s stock). Consum­ dition somewhat, as the Board has on many occa­ mation of the proposal would have no significant sions stated, a holding company should be a source adverse effects on existing or potential competition of strength for its subsidiary banks rather than and competitive considerations are, therefore, using them to improve its posture. Under these consistent with approval. circumstances, financial considerations weigh The Board’s inquiry does not end here. Under strongly against approval of this application. the statute, it must also examine the convenience Additionally, the Board has serious reservations and needs of the communities to be served, the with respect to the managerial resources of Appli­ financial and managerial resources of the holding cant which are underscored by the continuing company and the banks involved, and determine decline in earnings of Applicant’s subsidiary whether consummation of the proposal would be banks. Applicant’s principal shareholder is Chair­ in the public interest. man of the Board and Executive Vice President While Applicant proposes to add additional of Applicant and its subsidiary banks, as well as services to those offered by Bank, such services Bank. Three of that individual’s children act are readily available in Dade County at the present variously as officers and directors of the institu­ time. Considerations relating to the convenience tions involved. Of this family group, three reside and needs of the communities to be served are in Houston, Texas, and one in California. Business therefore consistent with but lend no weight is conducted by telephone or mail and short toward approval. monthly trips to Miami. For these services the While the above considerations are consistent individuals receive substantial fees. As the Board with approval, considerations relating to the fi­ stated in connection with the application by Seilon, nancial and managerial resources and prospects of Inc., 58 Federal Reserve Bulletin 729, absentee Applicant, its subsidiary banks, and Bank give rise management is substantially less effective than on to serious concern in connection with this pro­ the scene management, which is usually better able posal. Applicant proposes to borrow $3.5 million to react quickly when, and if, financial, opera­ to purchase the shares which one of its principals tional, or managerial difficulties arise in a subsi­ owns in Bank. It proposes to eliminate this debt diary bank. As such, the Board regards absentee and make an equal offer to minority shareholders management as less than desirable. This is partic­ at a later date through issuance of 430,700 shares ularly true where, as here, the banks are ex­ of its stock at $15 per share. Applicant contends periencing earning problems. The Board is unable that it could thus raise the more than $6 million to conclude that considerations relating to the which the transaction would require. management factor are consistent with approval An analysis of the financial history and condi­ of Applicant’s proposal. tion of Applicant and its subsidiary banks indicates While denial of the application may not imme­ that the 1970 consolidated income before income diately affect existing relationships due* to the taxes and securities gains of Applicant on a per common ownership between Applicant and Bank, share basis was $1.90. For 1972 this figure was approval would represent Board sanction of exist­ $.62. Similarly, the income before income taxes ing management practices and would increase Ap­ and securities gains of Applicant’s lead bank de­ plicant’s debt to an unacceptable level, absent the XA11 banking data are as of June 30, 1972. unlikely success of the proposed public offering. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 463 The public interest would not be served by such activities of those companies as identified herein.1 action. Notice of receipt of these applications has been In light of the above, it is the Board’s judgment given in accordance with §§3 and 4 of the Act that the proposed transaction would not be in the (38 Federal Register 2498), and the time for filing public interest and should not be approved. While comments and views has expired. The Board has the Board has concluded that the application considered the applications and all comments re­ should be denied for those reasons, this should ceived in the light of the factors set forth in § not be construed as Board approval of other 3(c) of the Act (12 U.S.C. 1842(c)), and the aspects of the proposed transaction, particularly considerations specified in § 4(c)(8) of the Act (12 the proposal to make certain payments in this U.S.C. 1843(3)(8)). connection to the principal shareholder of Appli­ Applicant (assets of $1 billion) is the nation’s cant and of Bank, but not to other shareholders twelfth largest finance company (in terms of total of Bank. capital funds) and is the parent holding company On the basis of the record, the application is of a number of nonbanking subsidiary companies denied for the reasons summarized above. that are sought to be retained. These subsidiaries By order of the Board of Governors, effective are engaged domestically and internationally in the May 30, 1973. following activities: commercial financing, factor­ ing, mortgage banking, equipment leasing, con­ Voting for this action: Vice Chairman Robertson and Gov­ sumer and sales financing, rediscounting, data ernors Mitchell, Daane, Brimmer, Sheehan, and Bucher. Ab­ sent and not voting: Chairman Burns. processing, and credit-related insurance sales. Board action was taken while Governor Robertson was a Applicant engages also in a number of manufac­ Board Member. turing activities that are proposed to be divested. (Signed) Tynan Smith, Principal among Applicant’s activities are its [seal] Secretary of the Board. commercial finance and factoring businesses. In­ come generated from its commercial finance ac­ ORDER UNDER SECTIONS 3 AND 4 OF BANK tivities accounted for approximately 60 per cent HOLDING COMPANY ACT of Applicant’s total gross finance income of $113 million for fiscal year 1971. In 1971 Applicant’s WALTER HELLER INTERNATIONAL CORP., factoring volume, both domestic and in 19 foreign CHICAGO, ILLINOIS countries, amounted to $1.2 billion and Applicant is the fourth largest factoring firm in the country. Order Approving Formation of Bank Hold­ Revenues from its factoring activities constituted ing Company and Continuation of Certain 19 per cent of Applicant’s gross finance income Commercial Finance, Factoring, Redis­ for 1971. Applicant’s consumer and sales finance counting, Leasing, Mortgage Banking, Data activities which are conducted primarily in the Processing, and Insurance Agency Activities southern United States, Puerto Rico and Canada, Walter Heller International Corp., Chicago, Il­ accounted for approximately 12 per cent of Appli­ linois, has applied for the Board’s approval under cant’s gross finance income in 1971. § 3(a)(1) of the Bank Holding Company Act (12 In 1972, Applicant acquired B. B. Cohen and U.S.C. 1842 (a)(1)) of formation of a bank holding Company (“Cohen”), a mortgage banking com­ company through acquisition of 100 per cent of pany engaged in originating, acquiring and servic­ the voting shares (less directors’ qualifying shares) ing real estate loans for its own account or for of American National Bank and Trust Co. of the account of others. Cohen’s principal loan Chicago, Chicago, Illinois (“Bank”). operations are conducted in the Chicago metro­ At the same time Applicant has applied for the politan area and it ranks 152nd among the 300 Board’s approval under § 4(c)(8) of the Act and largest mortgage companies in the country in terms § 225.4(b)(2) of the Board’s Regulation Y, for of mortgages serviced and eighth among eleven permission to retain the assets and continue to such firms headquartered in Chicago.2 engage in the activities of its domestic subsi­ diaries, Walter E. Heller & Company, Heller 1 Applicant has filed a separate application to retain its Interstate Corporation, and B. B. Cohen & Co., overseas activities pursuant to section 4(c)(13) of the Bank Holding Company Act. each of whose principal office is located in Chi­ 2Cohen’s total mortgage loan originations equal $61 million cago, Illinois, and their respective subsidiary and it services mortgage loans totaling $125 million (as of companies, and thereby continue to engage in the August 31, 1971). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN □ JUNE 1973 Through a number of subsidiaries Applicant is each of these activities as engaged in by Applicant engaged also in certain manufacturing activities and Bank and the geographical areas in which including the manufacture of furniture and food these services are offered, to determine the com­ preparation equipment. Net income from its man­ petitive effects, if any, of consummation of the ufacturing operations represents approximately 12 proposed transactions both in the Chicago area and per cent of Applicant’s total net income. Applicant in those areas of the country in which Applicant has stated its intention to dispose of all of its engages in these activities. manufacturing interests as soon as possible, the Bank is active in consumer installment lending period not to exceed two years.3 Applicant activities within the Chicago metropolitan area proposes to retain all its financing and factor- only. Although fifth in deposit size, Bank’s total related credit activities and to divest only its man­ of installment loans to individuals as of June 30, ufacturing operations. The activities sought to be 1972, of $72.6 million, ranked third among com­ retained by Applicant appear to be of the kinds mercial banks in that market. Since virtually all determined previously by the Board to be closely of Applicant’s domestic consumer and sales fi­ related to the business of banking (12 CFR nance business is derived from the southern United 225.4(a)). States, no existing competition in this activity Bank (deposits as of December 31, 1972, of would be eliminated by the instant proposals. $1.3 billion) is the 76th largest commercial bank Although Applicant clearly has the resource and in the nation and the fifth largest of approximately managerial capability to initiate consumer finance 261 banks in the Chicago banking market control­ activities in the Chicago area de novo, the exist­ ling 2.9 per cent of the aggregate deposits of ence of numerous competitors in this market and commercial banks in that market.4 Bank’s main the relative ease of entry into this business by office is located in downtown Chicago (five blocks many potential entrants, diminishes any possible from Applicant’s headquarters) and Bank operates adverse effects that consummation of the proposed a branch office in London, England. In contrast acquisition might have on potential competition. to Applicant, whose financial operations are car­ The mortgage banking activities of both Appli­ ried out on a nationwide and worldwide scale, cant and Bank are centered principally in the Bank’s service area for most of its lending activi­ Chicago metropolitan area. Analysis of the types ties consists primarily of the Chicago metropolitan of mortgage loan activities engaged in by both area extending north, south and west from Chicago companies indicates, however, that no significant for approximately 50 miles in each direction. competition would be eliminated by consumma­ Bank does not engage in permanent mortgage tion of these proposals. Applicant’s mortgage servicing, factoring, or rediscounting services, and banking subsidiary provides virtually no perma­ engages in leasing only to a very limited extent nent financing on real estate and instead actively having no relation to Applicant’s leasing activities. solicits interim construction loan business and loan No competition between Applicant and Bank originations on income producing properties only. would be eliminated, therefore, in these product Bank, on the other hand, makes construction loans lines by consummation of the proposals herein. only as an accommodation to existing customers.5 It appears also that no significant potential compe­ While the combination of Bank and Applicant’s tition would be eliminated between Applicant and mortgage loan subsidiary may eliminate some ex­ Bank in these activities in view of Bank’s apparent isting competition, most particularly in the area lack of inclination to expand into these activities. of loan originations on income producing proper­ In addition, the Chicago area is not so highly ties in the Chicago area, in net effect, consumma­ concentrated with respect to these activities so as tion of these proposals should not result in signifi­ to require the preservation of all possible entrants cant diminution of existing or potential competi­ into that market. Applicant and Bank are both tion in any relevant area, in view of the small engaged, however, to varying extents, in mortgage size of both Applicant’s and Bank’s mortgage loan origination, commercial finance and con­ banking operations relative to the markets in which sumer lending activities. The Board has examined 3Pursuant to section 4(a)(2) of the Act, Applicant would 5 During the year 1971, Bank made construction loans in be required to divest its interest in its manufacturing activities the Chicago SMSA totaling $1,025,029. For fiscal year ending within two years from the date it becomes a bank holding August 31, 1972, Applicant’s mortgage subsidiary made con­ company. struction loans totaling $30,656,792 as an interim financer 4Unless otherwise indicated, data are as of June 30, 1972. only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 465 they operate and the number of organizations tives are not so clearly more beneficial to the competing therein.6 encouragement of competition so as to require Among nonbank companies engaged in com­ denial of these proposals. mercial financing activities in the Chicago area, While Applicant’s entry into banking de novo Applicant ranks fourth with $33.5 million in out­ or through a foothold bank and Bank’s expansion standings. Bank does not actively solicit secured into nonbanking activities on an activity by activity business loans of the types of commercial financ­ acquisition or de novo basis, would certainly result ing engaged in by Applicant. As of August 1972, in a more gradual development of both institutions, however, Bank had $10.6 million in secured busi­ the facts of record indicate that consummation of ness loans, $9 million of which were originated these proposals will not result in any undue con­ in the Chicago area and represent only a small centration of economic resources or discourage percentage of such loans made in the Chicago area. potential competition in any relevant area. The Although acquisition of Bank by Applicant would resulting financial institution will be approximately tend to lessen somewhat existing and potential the same size (in terms of assets) as the third and competition in commercial finance in the Chicago fourth largest banking organizations in the Chicago area, the resulting diminution of competition is not area, both of which are engaged in a variety of considered significant. There are more than 17 financial activities similar to those of Applicant. firms competing in the commercial finance field Furthermore, it should be recognized that Appli­ in the Chicago area, none which is dominant and cant’s financial activities are conducted on a na­ there appear to be numerous potential entrants into tional and worldwide basis. Addition of Bank’s the secured business lending field. Elimination of capabilities to Applicant’s warehouse of financial Bank, therefore, as a potentially more aggressive services should result in Applicant becoming a competitor would not result in a meaningful dimi­ more effective competitor in the nationwide and nution of competition. overseas markets in which it operates without The facts of record indicate that significant creating in Applicant the ability to dominate any direct competition would not be eliminated in any line of activity in which it is presently engaged. product market by Applicant’s acquisition of It is contended that the Board’s approval of this Bank. It also appears that, to a significant extent, and similar proposals involving large financial Applicant and Bank serve the financial needs of institutions will result in the rapid assimilation of different customers and clients. The bulk of Ap­ all of the nation’s largest multi-activity financial plicant’s loan activities are at rates higher than companies with the nation’s largest banking orga­ those of Bank and almost always involve collateral nizations. As stated most recently in the Board’s security. Bank’s lending activities on the other Order concerning the application of First Florida hand, concentrate primarily on the credit­ Bancorporation, Tampa, Florida, to merge with worthiness of the customer and only secondarily United Bancshares of Florida, Inc., Miami, on collateralled transactions. Florida (59 Federal Reserve Bulletin 183), the While it is possible that some competition would Board will continue to view each application be­ develop in the future between Bank and Applicant, fore it on the merits of that particular application the markets for these activities in which such and every subsequent application will be consid­ competition could develop are unconcentrated and ered on the basis of the competitive structure of relatively accessible for entry by other companies. the particular market and other facts existing at Although Bank and Applicant have the capability the time. The Board concludes that the subject to ngage in the activities of the other with little proposals would not have an adverse effect on difficulty—Bank through its present parent holding competition or result in an undue concentration company and Applicant, through a de novo bank of economic resources, conflicts of interest, or or one of its existing subsidiaries—such alterna­ unsound banking practices in any area of the country and, it appears, in fact, that acquisition of Bank and Applicant’s retention of its permissi­ 6 As an approximation of the relative significance of the ble nonbanking activities, should result in Appli­ mortgage banking operations of Bank and Applicant in the cant, its subsidiaries and Bank becoming more Chicago area, it is estimated that the combined mortgage loan and servicing activities of Bank and Applicant would account effective competitors with other institutions in the for something less than .2 per cent of the mortgage loans markets in which they operate. outstanding at commercial banks and savings and loan associ­ The financial condition and managerial re­ ations in the Chicago area, including mortgage loans serviced by mortgage companies headquartered in that area. sources of both Applicant and Bank are satis­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN □ JUNE 1973 factory and consistent with approval of this appli­ By order of the Board of Governors, effective cation. The future prospects of both Bank and May 11, 1973. Applicant are favorable. Applicant asserts that the Voting for this action: Chairman Burns and Governors expanded capability resulting from consummation Daane, Sheehan, and Bucher. Voting against this action: of this transaction to provide package financing Governors Robertson and Brimmer. Absent and not voting: Governor Mitchell. will create efficiencies that will benefit Applicant’s Board action was taken while Governor Robertson was a customers by providing more credit with less col­ Board Member. lateral and lower credit acquisition costs. It ap­ (Signed) Tynan Smith, pears that ownership of a bank is not a prerequisite [seal] Secretary of the Board. for realization of the predicted efficiencies in view of the existing practice of Applicant and other Dissenting Statement of finance companies to develop participations and Governors Robertson and Brimmer correspondent relationships with banks. Owner­ ship of Bank by Applicant, however, is consistent We would not approve these applications to with realization of possible efficiencies and subse­ permit the amalgamation of two financial holding quent public benefits, and therefore, convenience companies. Heller and American National, re­ and needs considerations are consistent with ap­ spectively, have total assets of approximately $1 proval. billion and $1.3 billion. By its approval action, The Board has determined, with respect to the the majority of the Board is authorizing one of proposed retention of Applicant’s nonbanking ac­ the largest combinations of financial resources that tivities that the balance of the public interest fac­ has ever occurred in the history of Federal bank tors that the Board is required to consider under supervision. section 4(c)(8) is favorable and that consummation The Board bases this landmark decision on a of these proposals would be in the public interest. conclusion that the merger of these very large Accordingly, on the basis of the record, the appli­ institutions will have no significant adverse effects cations to acquire Bank and for Applicant’s reten­ on existing or potential competition. On the basis tion of its permissible nonbanking activities are of the same evidence, we have reached exactly approved for the reasons summarized above, and the opposite conclusion. While deeply troubled by upon the condition that Applicant divest its manu­ the Board’s decision, we find even more disturbing facturing activities as soon as possible, but in any the analytical treatment of the evidence which case, no later than two years from the effective enabled the Board to reach this result: it frag­ date of this Order. The transaction shall not be mented each organization into roughly a half dozen consummated (a) before the thirtieth calendar day separate activities and then proceeded to examine following the effective date of this Order or (b) each one individually. This procedure was equiv­ later than three months after the effective date of alent to treating each activity as if it were the this Order, unless such period is extended for good subject of a separate and independent application. cause by the Board, or by the Federal Reserve In other words, by use of this fragmented ap­ Bank of Chicago pursuant to delegated authority. proach, the Board’s majority fails to give sufficient The Board’s determination with respect to Appli­ weight to the fact that Heller as an integrated cant’s retention of its nonbanking activities is organization has a competitive impact that is far subject to the conditions set forth in § 225.4(c) greater than what is implied by simply adding up of Regulation Y and the Board’s authority to its separate parts. But, pursuing this fragmented require such modification or termination of the approach, the majority goes on to assess the impact activities of a holding company or any of its of the resulting organization and finds “ . . . that subsidiaries as the Board finds necessary to assure the subject proposals would not have an adverse compliance with the provisions and purposes of effect on competition or result in an undue con­ the Act and the Board’s regulations and orders centration of economic resources, conflicts of in­ issued thereunder, or to prevent evasions thereof. terest, or unsound banking practices in any area Applicant’s application to retain its foreign invest­ of the country. . . . ” ments under § 4(c)(13) of the Act and § 225.4(f) The main lines of activity engaged in by both of Regulation Y, is also approved subject to the Heller and American National are summarized in condition that its subsidiaries shall confine their the attached table. Heller is the twelfth largest activities to international or foreign banking and finance company in the country, and its principal other international or foreign financial operations. activities are commercial finance, factoring, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 467 consumer and sales financing. The geographic of 1933 prohibits interlocking directorships be­ scope of its activities extends throughout the tween banks located in contiguous or adjacent United States and the world. American National cities. The Board in 1971 recommended to is the fifth largest commercial bank in Chicago, Congress that interlocking relationships be pro­ and it operates one branch in the United Kingdom. hibited where the institutions involved have $1 Located only five blocks from Heller in downtown billion or more in assets regardless of their location Chicago, the Bank does most (but by no means in the nation. This is a clear recognition of the all) of its lending in the Chicago metropolitan area. fact that financial institutions of the size of these After comparing each of the activities engaged participants are actual and potential competitors in by Heller and American National, the Board’s on a nationwide basis and not simply in local majority decided that only with respect to mort­ markets. Unfortunately, this well founded princi­ gage loan origination and commercial finance is any ple is completely overlooked by the Board in the question of existing competition raised. It con­ present decision. cluded that the record indicated that in neither of Unlike the Board’s majority, we view this case these product lines would significant direct com­ not in isolation but as part of a developing trend. petition be eliminated by the combination of the In recent months, the Board has approved the two institutions. Moreover, the majority admitted acquisition by First International Bankshares, Inc., that some competition in some of the specific Dallas, Texas (with total deposits of $1.7 billion) activities might develop between them in the fu­ of Houston—Citizens Bank and Trust Company ture. Yet, it was decided that the benefits which (with total deposits of $219 million)—thus author­ might result from that development “ . . . are not izing formation of the largest bank holding com­ so clearly more beneficial to the encouragement pany in Texas. It has approved the acquisition by of competition so as to require denial of these Nortrust Corporation (a $4.7 billion institution) of proposals.” the fifth largest fiduciary institution in Miami, In our judgment, this conclusion is not war­ Florida. More recently it approved the merger of ranted on the basis of the data in this case. Addi­ two substantial holding companies in Florida— tionally, and of far greater import, it gives cre­ First Florida Bancorporation and United Bank­ dence to an emerging belief that the Board is shares of Florida—thereby sanctioning creation of prepared to approve the acquisition of ever rising a $1 billion institution. In each case, the Board aggregations of financial assets by bank holding has persistently asserted that each application is companies. Of all the figures relating to the mag­ being decided on its merits and that no precedent nitude of the participants’ activities, the crucial is being established. However, these decisions ones are those which show their total assets: Heller have clearly been read by the industry as being $1 billion and American National $1.3 billion. No of precedential effect. For example, even before matter how much one fragments the operations and the Board decided the case, Heller’s chief execu­ activities of each institution, one fundamental tive felt secure enough in his expectations that he point cannot be overlooked: they both cast long could assure stockholders that approval of this shadows on the American financial scene. application was likely. (American Banker, April It may well be, as asserted by the majority, that 19, 1973, p. 2). Such assurance could only be there is little existing competition between the based on the record of the Board’s previous deci­ Bank and Heller. However, this fact does not arise sions. from an inability to compete on the part of either. In addition to the present applications, the Board A $1.3 billion asset banking organization surely has pending before it other proposed substantial has the resources to enter successfully any or all acquisitions by some of the country’s major finan­ of the fields occupied by Heller. Competitive ef­ cial institutions. This underscores a trend which fectiveness would take longer to develop than the should concern the Board both in its general ap­ instantaneous approach used here, but the result proach to such proposals and in its actions on would be procompetitive rather than anticompeti­ specific applications. It is obvious that the largest tive. Likewise, there is no doubt that Heller has financial institutions in the country are using their the resources to build a much smaller commercial newfound authority to expand into closely related bank into a strong competitor, but such an ap­ fields not by the desirable route of developing their proach is again more time consuming. own expertise but by acquiring the largest existing In fact, the Board has previously recognized organizations. As already indicated, these cases these principles. Section 32 of the Banking Act involve one of the largest existing nonbanking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN □ JUNE 1973 organizations acquiring a banking organization. Act (12 U.S.C. 1842(c)(8)), and § 225.4(b)(2) of Unless this trend is reversed, one by one all the Board’s Regulation Y, to acquire all of the of the institutions with the financial and managerial voting shares of Siouxland Credit Corp., Sioux resources to enter new lines of endeavor success­ City, Iowa (“Siouxland”). Siouxland and its sub­ fully may well be eliminated. The Board is en­ sidiaries engage in sales financing, personal cash couraging this development by using the “isolated lending, and the sale of credit related insurance case” method of decision rather than widening its for Siouxland and its subsidiaries. The above de­ vision to consider possible long range effects of scribed activities have been determined by the each decision. This cannot help but have a severe Board to be closely related to the business of limiting effect on the number of nationwide com­ banking (12 CFR 225.4(a)). A bank holding com­ petitors in the financial services industries which pany may acquire a company engaged in an activ­ will exist only a few years from now. We would ity determined by the Board to be closely related not take another step down this road without a to banking provided that the proposed acquisition compelling case on the public benefits side. is warranted under the relevant public interest Sadly, even the majority admits that the record factors specified in § 4(c)(8) of the Act. in the present case is almost devoid of public Notice of the application, affording opportunity benefits—as distinguished from private benefits for for interested persons to submit comments and both Heller and American National. We would views on the public interest factors, has been duly deny these applications. published (37 Federal Register 23021). The time for filing comments and views has expired and the Comparison of Business Activities: Walter Heller International Corporation— Board has considered the application and all com­ American National Bank ments received in light of the factors set forth in Walter Heller Business Activity1 International Corporation American National Bank § 3(c) of the Act (12 U.S.C. 1842(c)). Chicago Chicago Applicant controls two banks, Security National Total SMSA Total SMSA ($ millions) ($ millions) ($ millions) (S millions) Bank of Sioux City, Sioux City, Iowa (“Bank”), the eighth largest bank in Iowa with deposits of Total Organization Assets ................... $1,000.02 $ 1,305.82 $98.9 million, and Northwestern State Bank of 1. Commercial Finance 543.8 33.5 10.63 9.2 2. Consumer and Sales Orange City, Orange City, Iowa ($18 million in Finance ................... 61.5 None 173.04 173.0 3. Leasing........................ 38.0 1.5 1.4 None deposits), representing 1.6 per cent of aggregate 4. Rediscounting........... 34.7 None None None 5. Factoring (Volume) 1,200.0 43.7 None None deposits in commercial banks in Iowa. (All bank­ 6. Mortgage Banking ing data are as of June 30, 1972, unless otherwise Mortgage Origina­ tions ................. 61.8 49.0 6.6 6.6 indicated.) Bank holds 29.8 per cent of total de­ Mortgage Servic­ ing ..................... 124.8 94.9 None None posits in the Sioux City banking market, thereby 7. Data Processing (Assets) ................ + + * * making it the largest, in terms of deposits, of the 8. Manufacturing (Assets) ................ 73.1 None None None 11 banks in the market. Siouxland, which was established in 1947, has *Not available. total assets of $3.5 million and engages in the sales + New activity as of August 1972. 'Data for Commercial, Consumer and Sales finance, Leasing and Rediscounting financing business, and operates solely from its are represented by net receivables outstanding as of December 31, 1971 or as otherwise noted. office located in Sioux City. Siouxland purchases 2December 1972. 3 Secured loans outstanding comparable to types made by commercial finance dealer retail installment sales contracts and whole­ companies. 4Total consumer loans outstanding including installment and single-payment loans sale financial paper, and its primary customers are as of June 30, 1972. retail motor vehicle dealers, farm implement dealers, appliance dealers, and wholesalers of ORDERS UNDER SECTION 4(c)(8) OF goods and merchandise to retailers. A subsidiary BANK HOLDING COMPANY ACT of Siouxland (Siouxland Industrial Credit Corp.) SECURITY NATIONAL CORPORATION, is an industrial loan company and extends credit SIOUX CITY, IOWA for loans ranging from $1,000 to $5,000. Another subsidiary of Siouxland (Siouxland Loans, Inc.) Order Denying Acquisition of Siouxland is a small loan company and makes personal loans Credit Corp. of less than $1,000. The third subsidiary of Security National Corporation, Sioux City, Siouxland (Siouxland Insurance Agency, Inc.) acts Iowa, a bank holding company within the meaning as agent for several insurance companies in the of the Bank Holding Company Act, has applied sale of credit life, health and accident, and vehicle for the Board’s approval, under § 4(c)(8) of the casualty insurance relative to extensions of credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 469 made by Siouxland and its subsidiaries. Such located in Sioux City, both of which are engaged insurance is made available on a voluntary basis. in extensions of credit to residents of the same In commenting on the application, the United area. States Department of Justice stated that Applicant Based upon the foregoing and other consid­ and Siouxland appear to be “substantial direct erations reflected in the record, the Board has competitors” in the Sioux City area, and that, determined that public interest benefits which the therefore, the proposal presented negative com­ Board is required to consider under § 4(c)(8) do petitive factors under the public interest require­ not outweigh possible adverse effects. Accord­ ments of § 4(c)(8) of the Act. Applicant’s response ingly, the acquisition is hereby denied. contended that Bank and Siouxland do not actively By order of the Board of Governors, effective compete, and that the effect of the proposed affil­ May 3, 1973. iation on area competition would be procompeti­ Voting for this action: Chairman Burns and Governors tive since Siouxland, through Bank, would have Robertson, Mitchell, Daane, Brimmer, Sheehan, and Bucher. Board action was taken while Governor Robertson was a ready access to short term funds, thus enabling Board Member. it to compete more effectively with its larger (Signed) Tynan Smith, competitors. [seal] Secretary of the Board. Bank and Siouxland are located in the Sioux City banking market and compete with 11 banks CBT corporation, and 19 finance companies. Bank is the largest HARTFORD, CONNECTICUT single source of automobile loans in the market, Order Approving Acquisition of General and as of December 31, 1972, controlled 45 per Discount Corporation cent of all such loans made by banks in the area. Siouxland is one of nine finance companies com­ CBT Corporation, Hartford, Connecticut, a peting for automobile loans in the Sioux City bank holding company within the meaning of the market. In addition to competing for automobile Bank Holding Company Act, has applied for the loans, Bank and Siouxland also compete to a lesser Board’s approval, under section 4(c)(8) of the Act degree in the small consumer loan market. On the and § 225.4(b)(2) of the Board’s Regulation Y, basis of the record in this case the Board finds to acquire all of the voting shares of General that consummation of this proposal would elimi­ Discount Corporation (“Company”) and thereby nate a meaningful amount of existing competition to indirectly acquire voting shares of Company’s in the product line of automobile loans and, to subsidiaries G.D.C. Leasing Corporation and a lesser extent, in the product line of personal General Discount Corporation (Maine), all with loans. Moreover, consummation of the proposal head offices in Boston, Massachusetts. The would also reduce the number of alternative proposed subsidiaries engage in the activities of sources for consumer and sales finance in the Sioux commercial financing and full pay-out leasing of City area. equipment. Such activities have been determined On the basis of the facts of record, the Board by the Board to be closely related to the business finds that consummation of the proposal would of banking (12 CFR 225.4(a)(1), (3), and (6)). have adverse effects on competition in the Sioux Notice of the application, affording opportunity City area. Accordingly, the Board is required by for interested persons to submit comments and the provisions of the Act to deny the application views on the public interest factors, has been duly unless there are public benefits to be derived from published (38 Federal Register 6926). The time the affiliation which would outweigh the projected for filing comments and views has expired, and decrease in area competition. none has been timely received. The financial needs of the Sioux City area are Applicant, the second largest banking organi­ being satisfactorily served at the present time, and zation in Connecticut, controls two banks with the proposed affiliation would not result in any aggregate deposits of approximately $1.0 billion, additional services. Whereas some efficiencies of representing 18.1 per cent of the total deposits in operation to the participants could result from this commercial banks in the State. (All banking data proposal, they are not of such magnitude in the are as of June 30, 1972.) Applicant also has Board’s judgment that they outweigh the adverse nonbanking subsidiaries engaged principally in effect on competition which would result from the accounts receivable and inventory financing, affiliation of the largest bank in Sioux City and equipment leasing, data processing, real estate a sales financing company of substantial size also financing, and investment advisory services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN □ JUNE 1973 Company, organized in 1928, has total assets of its total leases, by dollar volume, from Con­ of $11.8 million as of September 30, 1972, total necticut and that neither of Applicant’s existing loans outstanding of $9.7 million and total lease leasing subsidiaries derived any equipment leasing receivables of $2.3 million as of December 31, business from Leasing’s market areas. Accord­ 1971. Company is primarily engaged in commer­ ingly, it does not appear that any significant exist­ cial finance activities, including making loans se­ ing equipment leasing competition would be elim­ cured by accounts receivable, inventory, machin­ inated upon consummation of this proposal. Simi­ ery and equipment, and real estate. Company has larly, it is unlikely that any significant equipment operated three subsidiaries, all with head offices leasing competition between Applicant’s existing in Boston: (1) General Discount Corporation subsidiaries and Company’s leasing subsidiary (Maine) which has conducted the same type of would develop in the future, due to the distinct business as Company in Maine, but has been geographic areas served by the respective compa­ dormant for the past two years; (2) G.D.C. Leas­ nies. On the basis of these and other facts of record ing Corporation which engages in full pay-out the Board concludes that Applicant’s acquisition leasing of equipment whereby the cost of equip­ of Company would not have any significant ad­ ment, the cost of financing and a profit are realized verse effect on existing or potential competition. during the initial lease term; and (3) Ready Rent- It appears that the proposed acquisition would All Systems Inc. (“Ready”), which conducts a not result in any undue concentration of resources, franchise and financing business with respect to conflicts of interests, unsound banking practices, retail rental outlets. Applicant has committed that or any other adverse effects on the public interest. Company will divest itself of all interest in Ready It is anticipated that affiliation with Applicant will prior to Applicant’s acquisition of Company. Ap­ provide Company with greater access to capital, plicant has also agreed to terminate a servicing increase its ability to expand its average loans contract between G.D.C. Leasing Corporation and outstanding, and thereby enable it to compete more a computer leasing company within thirty days of effectively in the markets it serves. In its consid­ consummation of this proposal. eration of this application, the Board has examined Applicant presently operates two commercial covenants not to compete contained in employ­ finance subsidiaries: Connecticut Commercial ment agreements with GDC’s three principal ex­ Corporation (“Commercial”), located in Connec­ ecutives. The Board finds that the provisions of ticut; and Lazere Financial Corporation (“La- such covenants are reasonable in duration, scope, zere”), located in New York. Although Company, and geographic area and are consistent with the Lazere and Commercial are engaged in similar public interest. business activities, Company derived less than 1 Based upon the foregoing and other consid­ per cent of its total loans from the market area erations reflected in the record, the Board has served by either Lazere or Commercial, and La­ determined that the balance of the public interest zere and Commercial have no loans outstanding factors the Board is required to consider under in Company’s market area. Accordingly, Appli­ section 4(c)(8) is favorable. Accordingly, the ap­ cant’s acquisition of Company would not result plication is hereby approved. This determination in any significant adverse effects on existing com­ is subject to the conditions set forth in section mercial finance business competition. Due to the 225.4(c) of Regulation Y and to the Board’s au­ distances separating Company, Commercial, and thority to require such modification or termination Lazere, and the fact that it is unlikely Applicant of the activities of a holding company or any of would enter Company’s market de novo absent this its subsidiaries as the Board finds necessary to proposal, it appears that no significant potential assure compliance with the provisions and pur­ commercial finance competition would be elimi­ poses of the Act and the Board’s regulations and nated upon consummation of this proposal. orders issued thereunder, or to prevent evasion Applicant, through its subsidiary CBT Leasing thereof. Corporation and its lead subsidiary bank, The By order of the Board of Governors, effective Connecticut Bank and Trust Company, is engaged May 14, 1973. in equipment leasing. However, the market area Voting for this action: Chairman Burns and Governors for Applicant’s existing leasing subsidiaries is Daane, Sheehan, and Bucher. Voting against this action: Connecticut, while the market area for Company’s Governor Brimmer. Absent and not voting: Governor Mitchell. leasing subsidiary is Massachusetts, New Hamp­ shire, and Rhode Island. It appears that Com­ (Signed) Tynan Smith, pany’s leasing subsidiary derived only 1.1 per cent [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 471 Dissenting Statement of voting shares of Peoples Investment Company, Governor Brimmer Louisville, Kentucky (“Peoples”), a consumer finance holding company, which engages through I would deny CBT Corporation’s application to its subsidiaries in the activities of making con­ acquire General Discount Corporation (“GDC”). sumer finance loans, purchasing instalment sales I would do so for the same reason that I voted contracts, and easing automobiles and industrial against the application of Orbanco, Inc. (38 Fed­ equipment. Through its insurance agency subsi­ eral Register 11136). As part of the proposed diary, Fincastle Insurance Agency, Inc., Louis­ transaction, GDC’s three principal executive of­ ville, Kentucky, Peoples also engages in the sale ficers will enter into employment agreements that of credit life, accident and health insurance, and contain provisions prohibiting each of them from mobile and vehicular damage insurance at the competing with GDC for the next ten years. These borrower’s option, in connection with loans and provisions, commonly known as covenants not to discounts that are owned or originated by its sub­ compete, will prevent GDC’s principal executives sidiary loan companies. Such activities, with the from providing their business experience to either exception of automobile leasing, have been deter­ an existing or future competitor of GDC. The net mined by the Board to be closely related to bank­ result can only be a lessening of competition—a ing (12 CFR 225.4(a)). result that is inconsistent with the promotion of Notice of the application affording opportunity competition and is thus in conflict with the stand­ for interested persons to submit comments and ards of the Bank Holding Company Act. views on the public interest factors has been duly In acting upon an application under § 4(c)(8) published (38 Federal Register 6317). The time of the Act, the Board is required to determine for filing comments has expired, and none has been whether the acquisition can reasonably be expected timely received. to produce benefits to the public, such as greater Applicant controls five banks with deposits of convenience, increased competition, or gains in $1.3 billion representing about 5.4 per cent of the efficiency, that outweigh possible adverse effects, total deposits of commercial banks in Ohio. Ap­ such as decreased or unfair competition. Thus, the plicant has no nonbanking subsidiaries. However, Board is required by law to deny an application through its lead bank, Central National Bank of where the possible adverse effects are not out­ Cleveland ($1.1 billion in deposits),1 Applicant weighed by benefits to the public. has a nominal amount of instalment loans out­ Covenants not to compete limit individuals from standing in the Louisville, Nashville, and Cincin­ providing their abilities to alternative business nati areas, and one equipment lease outstanding enterprises and thereby from fostering competition for $927,000 in the Cincinnati area. in that line of business activity. Therefore, the Peoples is a consumer finance holding com­ Board’s approval of an acquisition containing such pany,2 with its 15 direct and indirect subsidiaries covenants must of necessity result in sanctioning operating out of seven offices: four in Louisville, a decrease in competition. The resulting decrease Kentucky; one in Covington, Kentucky; one in in competition is not outweighed by other public Nashville, Tennessee; and one in Cincinnati, interest considerations presented in this applica­ Ohio. As of December 31, 1972, Peoples had $17 tion. For these reasons, I would deny this applica­ million in instalment receivables, and the total tion. volume of its equipment leases, distributed among 460 leases outstanding in 28 States, amounted to CENTRAN BANCSHARES CORPORATION, $1.1 million. CLEVELAND, OHIO The proposed acquisition would have no signif­ icant adverse effect on existing competition as no Order Approving Acquisition of Peoples meaningful competition would be eliminated by Investment Company approval of this application. Applicant does appear to have the resources and managerial capability Centran Bancshares Corporation, Cleveland, Ohio, a bank holding company within the meaning to enter markets served by Peoples through for­ mation of its own consumer loan companies. of the Bank Holding Company Act, has applied However, there are numerous competitors in the for the Board’s approval under § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)) and § 225.4(b)(2) of *A11 banking data are as of June 30, 1972. the Board’s Regulation Y, to acquire indirectly 2 As of September 30, 1972, Peoples had consolidated assets through a newly-formed subsidiary, all of the of $14.6 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN □ JUNE 1973 markets served by Peoples’ subsidiaries, including determination is subject further to the conditions a number with regional or national affiliations; in set forth in § 225.4(c) of Regulation Y and to addition, the many potential entrants and the rela­ the Board’s authority to require such modification tive ease of entry into the consumer finance busi­ or termination of the activities of a holding com­ ness diminish any possible adverse effects that pany or any of its subsidiaries as the Board finds consummation of the proposed acquisition might necessary to assure compliance with the provisions have on potential competition. Due to the limited and purposes of the Act and the Board’s regula­ nature of the activity of Peoples’ insurance subsi­ tions and orders issued thereunder, or to prevent diary in acting as agent for the sale of credit evasion thereof. insurance related to loans originated by Peoples’ By order of the Board of Governors, effective consumer finance subsidiaries, Applicant’s acqui­ May 24, 1973. sition of Peoples would not appear to have a Voting for this action: Chairman Burns and Governors significantly adverse effect on competition in this Brimmer, Sheehan, and Bucher. Absent and not voting: Gov­ product line. The Board concludes that consum­ ernors Mitchell and Daane. mation of the proposed acquisition would have no significant adverse effects on existing or potential (Signed) Elizabeth L. Carmichael, competition in any relevant area. [seal] Assistant Secretary of the Board. There is no evidence in the record indicating that consummation of the proposal would result FIDELITY CORPORATION OF PENNSYL­ in any undue concentration of resources, unfair VANIA, ROSEMONT, PENNSYLVANIA competition, conflicts of interest or unsound bank­ Order Approving Acquisition of Local ing practices. Approval of the application, by Finance Corporation giving Peoples access to Applicant’s financial and managerial resources, should enhance its competi­ Fidelity Corporation of Pennsylvania, Rosetive effectiveness and enable it to expand the range mont, Pennsylvania, a bank holding company of services it offers. within the meaning of the Bank Holding Company One of Peoples’ Cincinnati subsidiaries, Peoples Act, has applied for the Board’s approval, under Leasing Company, presently engages in automo­ section 4(c)(8) of the Act and § 225.4(b)(2) of bile leasing. Such leases, which are typically on the Board’s Regulation Y, to acquire all of the a 24-month basis, account for about 6 per cent voting shares of Local Finance Corporation, Prov­ of Peoples’ total receivables. There is some ques­ idence, Rhode Island (“Local”), a company that tion as to whether this activity comes within the engages, through its subsidiaries, in the activities literal language and/or intended scope of “leas­ of making consumer loans to individuals, includ­ ing” as presently permitted by the Board to be ing second mortgage loans where legally permit­ conducted by bank holding companies (see § ted; engaging in a general consumer finance busi­ 225.4(a)(6) of Regulation Y and 12 CFR ness; selling credit life and credit health and acci­ 225.123(d)) and, further, the entire subject of dent insurance to its borrowers and casualty insur­ leasing of both real and personal property is under ance on collateral securing such loans; and, review by the Board (37 Federal Register 26534). through Master Life Insurance Co., a subsidiary Applicant has indicated its willingness to dispose of Local, reinsuring such credit life, health, and of its automobile leases and discontinue auto leas­ accident insurance sold. Such activities have been ing activities within 60 days as a condition for determined by the Board to be closely related to approval of this acquisition. In view of the fore­ banking (12 CFR 225.4(a)(1), (9), and (10)), going, the Board believes it is in the public interest except to the extent indicated hereinafter. In addi­ to condition its Order herein on this undertaking. tion to the activities enumerated above, Local is Based upon the foregoing and other consid­ also presently engaged, through a subsidiary, in erations reflected in the record, the Board has the reinsuring of casualty insurance on household determined that the balance of the public interest goods serving as collateral on loans made by factors that the Board is required to consider under subsidiaries of Local. Although originally a part § 4(c)(8) is favorable. Accordingly, the application of the instant application, the application was is hereby approved subject to Applicant’s under­ amended by Applicant to withdraw the request for taking to dispose of its automobile leases and approval of its indirect acquisition of Local’s cas­ discontinue all auto leasing activities within 60 ualty reinsurance subsidiary; Applicant represents days from consummation of the acquisition. This that such subsidiary will be divested by Local prior Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 473 to consummation of the proposed transactions. another office in the Trenton market, deriving total This order therefore should not be construed as outstandings of $2.1 million from those two mar­ authorizing indirect acquisition of that subsidiary kets. The proximity of these two markets to the by Applicant nor has the Board considered whether Philadelphia banking market suggests the exist­ the activities of that subsidiary are so closely ence of some competition between Local and Ap­ related to banking or managing or controlling plicant’s lead bank along the intervening market banks as to be a proper incident thereto. boundaries. Local’s three Pennsylvania offices are Notice of the application, affording opportunity located north and east of the Allentown-Bethlehem for interested persons to submit comments and area and are not considered to be in competition views on the public interest factors, has been duly with Applicant’s lead bank. Although there may published (37 Federal Register 10530). The time be some overlap in the customers served by Local for filing comments and views has expired and the and Applicant’s banking subsidiary, it does not Board has considered all comments received in the appear that consummation of the proposed acqui­ light of the public interest factors set forth in sition would have a significantly adverse effect on section 4(c)(8) of the Act (12 U.S.C. 1843(c)). competition for consumer loans in the Camden, Applicant controls one bank with aggregate de­ Trenton, or Philadelphia markets, in view of the posits of $1.4 billion representing 4.3 per cent of small amount of outstandings held by Local’s commercial bank deposits in the State. (All bank­ subsidiaries in these areas and the great number ing data are as of June 30, 1972 adjusted to reflect of consumer loan sources present in those markets, bank holding company formations and acquisitions including major consumer loan companies and approved through March 31, 1973.) banks. In view of the large number of existing Local performs management and accounting competitors and potential entrants into these mar­ services for its operating subsidiaries and does not kets, consummation of the proposed transaction directly transact any business with the public. is not likely to have a significant adverse effect Sixty-six of its 68 operating subsidiaries are en­ on future or potential competition even though gaged in consumer finance company activities Applicant appears to possess the resources to enter while the other two subsidiaries are engaged in those markets de novo. Nor does it appear that the reinsurance of certain credit life and credit consummation will adversely affect the availability accident and health insurance policies, and the of lendable funds to other consumer finance com­ reinsurance of certain casualty insurance policies. panies. Accordingly, the Board concludes that Local’s 66 loan subsidiaries operate from Rhode approval of the application insofar as it relates to Island, Massachusetts, New Jersey, Pennsylvania, the finance company subsidiaries of Local would and North Carolina, and had total loans out­ not appear to have any significant adverse effect standing amounting to $37.4 million as of De­ on existing or potential competition. The competi­ cember 31, 1971. The finance companies also act tive effects of the proposed insurance agency ac­ as agents for the sale of credit life insurance, credit tivities are also regarded as consistent with ap­ accident and health insurance, and casualty insur­ proval of the application. ance in connection with their extensions of credit. With respect to the proposed insurance agency Twenty-three of Local’s consumer finance sub­ activities of Local, the Board has taken increasing sidiaries operate from offices in New Jersey and notice of a practice permitted in certain States three additional subsidiaries maintain offices in whereby level term credit life insurance is sold Pennsylvania. Applicant does not engage in con­ in connection with instalment lending. In such sumer finance company activities in Rhode Island, circumstances, the amount of life insurance cov­ Massachusetts, or North Carolina; nor does there erage provided remains fixed while the balance of appear to be a substantial likelihood that it will the outstanding loan decreases with the periodic engage de novo in these activities in those States. repayments by the borrower. The additional cov­ Applicant’s lead bank operates in the Philadelphia erage provided in excess of the outstanding bal­ banking market which includes the counties of ance does not provide any protection for the lender Philadelphia and Delaware, as well as the eastern and is not generally related to the insurance needs portion of Bucks, Montgomery, and Chester of the borrower. Decreasing term life insurance Counties and holds a personal loan portfolio total­ is a readily available form of insurance which ing approximately $96 million. Local’s subsid­ provides adequate protection for the lender. Under iaries have offices in Pennsauken and Merchant- these circumstances, the Board does not regard the ville, New Jersey, in the Camden market and sale of level term credit life insurance in connec­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN □ JUNE 1973 tion with instalment lending as directly related to inflicted events, non-scheduled aircraft accidents, an extension of credit under section 225.4(a)(9)(H) alcoholism and drug addiction and pre-existing of Regulation Y. This does not exclude limited health conditions; their exclusion will result in the sale of such insurance as a matter of convenience payment of increased benefits to policyholders. It to the purchaser, so long as the premium income is the Board’s judgment that these benefits to the from such sale, when combined with the premium public are consistent with approval of the applica­ income derived from the sale of other “conven­ tion. ience” insurance by Applicant or its subsidiaries, Applicant’s greater access to financial resources does not constitute a significant portion of the may assure Local of more ready access to funds aggregate insurance premium income of Applicant and enable it to become a more effective competi­ from insurance sold pursuant to section tor, and thus increase public convenience and 225.4(a)(9)(H) of Regulation Y. stimulate competition with affiliates of larger re­ Local also engages in the activity of underwrit­ gional and national financial organizations active ing, as reinsurer, credit life and credit accident in the consumer finance company industry in the and health insurance which is directly related to relevant markets. Further, Local’s present man­ its extensions of credit, as well as the underwrit­ agement appears to have permitted, on at least two ing, as reinsurer, of level coverage insurance. recent occasions, practices that are inconsistent Applicant does not presently engage in insurance with the public interest; the Board will expect underwriting activities and the proposed affiliation Applicant to either directly involve itself in, or with Applicant would appear to have no significant exercise strict supervision over, the management effects on competition within the underwriting of Local and that such involvement or supervision industry. As indicated above, level coverage in­ will have a corrective effect on Local’s operations surance is not considered to be directly related to redounding to the benefit of the public. Based upon an extension of credit. This being the case, section the foregoing and other considerations reflected in 225.4(a)(10) of Regulation Y does not authorize the record, the Board has determined that the the underwriting of such insurance. balance of the public interest factors the Board In adding credit life underwriting to the list of is required to consider under § 4(c)(8) is favorable permissible activities for bank holding companies, with respect to the proposed finance company and the Board stated that, “To assure that engaging certain of the insurance agency and underwriting in the underwriting of credit life and credit acci­ activities. dent and health insurance can reasonably be ex­ Accordingly, the application is hereby ap­ pected to be in the public interest, the Board will proved, except to the extent that the application only approve applications in which an applicant contemplates 1) reinsurance of level coverage in­ demonstrates that approval will benefit the con­ surance and 2) the sale of level coverage insur­ sumer or result in other public benefits. Normally ance, the gross commission income from which, such a showing would be made by a projected would constitute, in the aggregate (when combined reduction in rates or increase in policy benefits with other “convenience” insurance sold by Ap­ due to bank holding company performance of this plicant and its subsidiaries) an amount equal to service.” (12 CFR 225.4(a)(10)). Applicant has five per cent or more of the aggregate gross com­ stated that the proposed reinsurance subsidiary and mission income of Applicant and its subsidiaries the direct insurer, which issues the credit life and deriving from the sale of insurance pursuant to credit accident and health insurance policies made section 225.4(a)(9)(H) of Regulation Y. To that available by its lending subsidiaries, will reduce extent, the application is hereby denied and ap­ the rates charged for credit life insurance by 2 per proval of the remainder of the application is ex­ cent in Rhode Island, Massachusetts, and New pressly conditioned upon the discontinuation of the Jersey, 15 per cent in North Carolina, and by 3.33 above-described level coverage insurance reinsur­ per cent per hundred dollars of indebtedness in ance and sales activities by Local or its subsidiaries Pennsylvania. Further, the suicide exclusion prior to, or upon, consummation of the proposed would be eliminated from the credit life insurance transaction. This determination is additionally policies. In addition, six exclusions presently in­ subject to the conditions set forth in § 225.4(c) cluded in credit health and accident insurance of Regulation Y (12 CFR 225.4(c)) and to the policies reinsured by a subsidiary of Local would Board’s authority to require such modification or be eliminated. These relate to the place of occur­ termination of the activities of a holding company rence, military service-connected events, self­ or any of its subsidiaries as the Board finds neces­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 475 sary to assure compliance with the provisions and Voting for this action: Chairman Burns and Governors purposes of the Act and the Board’s regulations Daane, Brimmer, Sheehan and Bucher. Absent and not voting: Governor Mitchell. and orders issued thereunder, or to prevent evasion thereof. (Signed) Tynan Smith, By order of the Board of Governors, effective [seal] Secretary of the Board. May 29, 1973. ORDERS NOT PRINTED IN THIS ISSUE During May 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. ORDER UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank(s) date) citation Geneva Investment Company, Fillmore County Bank, 5/22/73 38 F.R. 14204 Lincoln, Nebraska Geneva, Nebraska 5/30/73 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 BancOhio Corporation, The Cummings Bank Company, 5/14/73 38 F.R. 13399 Columbus, Ohio Carrollton, Ohio 5/21/73 Barnett Banks of Florida, Inc., Barnett Bank of Sarasota, N. A., 5/10/73 38 F.R. 12956 Jacksonville, Florida Sarasota, Florida 5/17/73 Central Mortgage Company, Inc., Farmers Bank of Stover, 5/3/73 38 F.R. 12256 Springfield, Missouri Stover, Missouri 5/10/73 Jackson County State Bank, 5/3/73 Kansas City, Missouri The Chase Manhattan Corporation, Chase Manhattan Bank of Eastern 5/3/73 38 F.R. 12627 New York, New York New York (National Associa­ 5/14/73 tion), Albany, New York Lincoln National Bank, 5/3/73 38 F.R. 12627 Buffalo, New York 5/14/73 First Amtenn Corporation, Volunteer-State Bank, 5/10/73 38 F.R. 12956 Nashville, Tennessee Knoxville, Tennessee 5/17/73 First City Bancorporation, Inc., Antoine National Bank, 3/30/73 38 F.R. 08744 Houston, Texas Houston, Texas 4/6/73 First National Financial Corpora­ The Commercial Bank of Meno­ 5/3/73 38 F.R. 12258 tion, Kalamazoo, Michigan minee, Menominee, Michigan 5/10/73 First Virginia Bankshares Corpora­ The First National Bank in 5/25/73 38 F.R. 14796 tion, Falls Church, Virginia Onancock, Onancock, Virginia 6/5/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN □ JUNE 1973 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 Mark Twain Bancshares, Inc., Parkway Bank and Trust Company, 5/24/73 38 F.R. 14438 Clayton, Missouri Chesterfield, Missouri 6/1/73 Mercantile Bankshares Corporation, The Citizens National Bank, 5/16/73 38 F.R. 13583 Baltimore, Maryland Laurel, Maryland 5/23/73 New England Merchants Company, The Barnstable County National 5/3/73 38 F.R. 12259 Inc., Boston, Massachusetts Bank of Hyannis, Hyannis, 5/10/73 Massachusetts Security New York State Corpora­ First Trust Union Bank, 5/31/73 38 F.R. 14985 tion, Rochester, New York Wellsville, New York 6/7/73 Southeast Banking Corporation, The First National Bank of 5/29/73 38 F.R. 14797 Miami, Florida Maitland, Maitland, Florida 6/5/73 Peoples Bank of Venice, 5/29/73 38 F.R. 14797 Venice, Florida 6/5/73 U.N. Bancshares, Inc., Bank of Taney County, 5/24/73 38 F.R. 14428 Springfield, Missouri Forsyth, Missouri 6/4/73 Union Commerce Corporation, The Southern Ohio Bank, 5/3/73 38 F.R. 12260 Washington, D. C. Cincinnati, Ohio 5/10/73 ORDER UNDER SECTION 3(a)(5) OF BANK HOLDING COMPANY ACT— MERGER OF BANK HOLDING COMPANY Board action Federal (effective Register Applicant Bank Holding Company date) Citation Central Mortgage Co., Inc., Harmon Oil Co., Inc., 5/3/73 38 F.R. 12256 Springfield, Missouri Warrensburg, Missouri 5/10/73 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 American Fletcher Corporation, Credit card operations of Economy 5/16/73 38 F.R. 14202 Indianapolis, Indiana Finance Corporation, known as 5/30/73 Shoppers Charge Service and Custom Services Barnett Banks of Florida, Inc., Barnett Winston Mortgage Com­ 5/10/73 38 F.R. 12955 Jacksonville, Florida pany, Winter Park, Florida 5/17/73 Crocker National Corporation, Schumacher Mortgage Company, 5/25/73 38 F.R. 14793 San Francisco, California Inc., Memphis, Tennessee 6/5/73 First Arkansas Bankstock Corpora­ L. E. Lay & Company, Inc., 5/10/73 38 F.R. 12957 tion, Little Rock, Arkansas Little Rock, Arkansas 5/17/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 477 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES—Cont. Board action Federal (effective Register Applicant Bank(s) date) citation First Pennsylvania Corporation, Performance Associates, Inc., 5/31/73 38 F.R. 15551 Philadelphia, Pennsylvania Colorado, Denver, Colorado 6/13/73 Geneva Investment Company, Continuation of insurance agency 5/22/73 38 F.R. 14204 Lincoln, Nebraska activities 5/30/73 Northwest Bancorporation, Banco Credit Life Insurance Com­ 5/21/73 38 F.R. 14205 Minneapolis, Minnesota pany, Minneapolis, Minnesota 5/30/73 Third National Corporation, John W. Murphree Company, 5/16/73 38 F.R. 14439 Nashville, Tennessee Nashville, Tennessee 6/1/73 Worcester Bancorp Inc., Empire Mortgage Corp. of Con­ 5/24/73 38 F.R. 14440 Worcester, Massachusetts necticut, Hartford, Connecticut 6/1/73 Empire Mortgage Corp. of Massa­ chusetts, Natick, Massachusetts Empire Finance Corp. of Rhode Island, Providence, Rhode Island Empire Mortgage Corp. of New Hampshire, Concord, New Hampshire ORDER UNDER SECTION 4(d) OF BANK HOLDING COMPANY ACT— EXEMPTION FROM PROHIBITIONS RELATING TO NONBANKING ACTIVITIES OF BANK HOLDING COMPANIES Board action Federal (effective Register Applicant Bank(s) date) citation R. R. Donnelley & Sons Com- Lakeside Bank, 5/16/73 38 F.R. 13583 pany, Chicago, Illinois Chicago, Illinois 5/23/73 ORDER UNDER BANK MERGER ACT APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Board action Federal (effective Register Applicant Bank(s) date) citation Menominee State Bank, The Commercial Bank of Meno- 5/3/73 38 F.R. 12258 Menominee, Michigan minee, Menominee, Michigan 5/10/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements APPOINTMENT OF MR. HOLLAND AS A the University of Pennsylvania: B.S. in fi­ MEMBER OF THE BOARD OF GOVERNORS nance (1948), M.A. in economics (1949) and Ph.D. in economics (1959). He served in the President Nixon on May 16, 1973, announced his U.S. Army from 1943 to 1945, and during intention to appoint Robert C. Holland as a mem­ 1948-49 he was an instructor in money and ber of the Board of Governors of the Federal banking at the Wharton School of Finance Reserve System. Mr. Holland’s appointment was and Commerce of the University of Pennsyl­ subsequently confirmed by the Senate on June 1 vania. and his oath of office was administered by Chair­ man Burns in the Board Room on June 11. Mr. Holland is married to the former DeEtte The text of the White House announcement Harriet Hedlund of Osceola, Nebraska. They follows. have three children and reside in Washington, D.C. The President announced his intention on May 16, 1973, to nominate Robert C. Hol­ CHANGES IN BOARD STAFF land, of Tekamah, Nebraska, to be a member of the Board of Governors of the Federal The Board of Governors announced the following Reserve System for the remainder of the term appointments to its official staff, effective June 10, expiring January 31, 1978. He will succeed 1973: J. L. Robertson, who was a governor from Theodore E. Allison, who joined the Board’s February 7, 1952, until April 30, 1973. staff in 1971, as an Assistant Secretary in the Office of the Secretary. Mr. Allison holds a Ph.D. Mr. Holland has been Executive Director of degree in economics and finance from the Univer­ the Board of Governors of the Federal Re­ sity of Illinois. serve System since 1971 and has also been Robert J. Lawrence, Chief of the Banking Mar­ Secretary of the Federal Open Market Com­ kets Section of the Division of Research and mittee since 1966. He joined the Board of Statistics, as an Associate Adviser in that Division. Governors of the Federal Reserve System in Mr. Lawrence joined the Board’s staff in June 1961, serving as Adviser in the Division of 1965. He received his Ph.D. degree in economics Research and Statistics (1961-63), Associate from the University of Michigan. Economist with the Federal Open Market William W. Wiles, who has been Deputy Pro­ Committee (1962-66), Associate Director of gram Director for Banking Structure, Division of the Division of Research and Statistics Supervision and Regulation, as an Assistant (1964-65), Adviser to the Board of Gover­ Director in that Division. Mr. Wiles, who holds nors (1965-67), and Secretary of the Board a doctorate in economics from the University of of Governors (1968-71), in addition to his Wisconsin, joined the Board’s staff in 1964. current positions. The Board has also announced the retirement, Prior to coming to Washington, Mr. Holland effective June 30, 1973, of the following: Edwin was with the Federal Reserve Bank of Chi­ J. Johnson, Joseph E. Kelleher, John N. Kiley, cago from 1949 to 1961. In Chicago, he was Jr., A. B. Hersey, and Ralph C. Wood. a Financial Economist (1949-57), Assistant Vice President for Research and Loans CHANGE IN DISCOUNT RATE (1957-59) and Vice President for Loans The Board of Governors approved actions by the (1959-61). directors of the Federal Reserve Banks of Boston, He was born in Tekamah, Nebraska, on April New York, Philadelphia, Cleveland, Atlanta, 7, 1925. Mr. Holland attended the University Chicago, St. Louis, Minneapolis, Dallas, and San of Nebraska and received three degrees from Francisco increasing the discount rate of those 478 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

banks from 6 per cent to 6V2 per cent, effective ning with the June 1973 issue. The discontinued June 11. A similar increase was approved for the release contained a summary of various nonfinan­ Federal Reserve Bank of Richmond, effective June cial reports on employment, retail sales, and prices 12, and for the Federal Reserve Bank of Kansas that are released by other agencies prior to the City, effective June 15, at which time the rate was publication of the Summary. Financial data 6V2 per cent at all Reserve Banks. reported in the Summary are also available from The action was taken in recognition of increases other sources. that had already occurred in other short-term in­ terest rates, the recent growth in money and bank ADMISSION OF STATE BANKS TO MEMBERSHIP IN credit, and the continuing rise in the general price THE FEDERAL RESERVE SYSTEM level. The following banks were admitted to membership The discount rate is the rate charged member in the Federal Reserve System during the period banks for borrowings from their district Federal May 16, 1973, through June 15, 1973: Reserve Bank. CHANGE IN BOARD RELEASE Florida Jacksonville ..........................Edgewood Bank A monthly press release (G.12.2) on “Industrial Production” replaces the former release on “Na­ Virginia tional Summary of Business Conditions” begin­ Goochland County .........Bank of the James 479 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication June 15 This release replaces the National Summary of Business Conditions Industrial production increased by an estimated 0.5 production of business equipment included both per cent in May, following a revised 0.7 per cent industrial and commercial types of machinery. increase in April. At 123.4 per cent of the 1967 Output of steel and most other durable goods average, the estimated May index was 9 per cent materials was maintained at record rates, while above a year earlier. The gains in output in May production of textiles, chemicals, and paper rose continued strong in business equipment and con­ further. sumer goods, but over-all production of industrial The expansion in materials production has materials rose only slightly. brought their output levels in April and May one- Auto assemblies continued at record levels and tenth above a year earlier. Output was excep­ were at an annual rate of 10.0 million units, and tionally strong in major basic manufacturing ma­ production schedules for June and the third quarter terials such as cement, man-made fibers, paper, are set at about the same rate. Production of some petroleum products, and primary metals. In a appliances, furniture, and consumer chemical and number of materials, levels of plant utilization are paper products increased further. The advance in apparently close to current capacity. Change (%) INDUSTRIAL PRODUCTION Seasonally adjusted from— RATIO SCALE, 1967=100 Industrial production 1967=100 1972 1973 Month Year ago ago PRODUCTS, TOTAL------ May Apr.p Maye Total index ................ 113.2 122.8 123.4 .5 9.0 Market groupings: Final products ......... 110.2 118.7 119.4 .6 8.3 Consumer goods .. 122.2 129.6 130.5 .7 6.8 Business equip. ... 102.5 117.4 118.6 1.0 15.7 Materials ................ 115.6 126.5 126.8 .2 9.7 \ \ BUSINESS EQUIP. Industry groupings: Manufacturing ......... 112.3 122.3 123.2 .7 9.7 V DEFENSE EQUIP Durables ............. 106.3 118.4 119.3 .8 12.2 Nondurables ....... 120.8 128.1 128.9 .6 6.7 Mining and util........ 122.6 126.1 126.1 .0 2.9 1973 1967 "Preliminary. F.R. indexes, seasonally adjusted. Latest figures: May. 'Estimated. 480 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

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: Member banks, 1972: Operating ratios: A 96 By size of bank A 100 By Federal Reserve district A 102 Banking offices and deposits of banks in holding company groups, December 31, 1972 A 117 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 G uide to T abular P resentation 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: List, Dec. 31. 1971 ............. June 1972 A-98 Income and expenses: Banking offices and deposits of Federal Reserve Banks .......... Feb. 1973 A-98—A-99 group banks, Dec. 31, 1972. June 1973 A-102—A-104 Insured commercial banks ..... May 1973 A-96—A-97 Member banks: Calendar year ................... May 1973 A-96—A-105 Banking and monetary statistics: Income ratios ................... May 1973 A-106—A-11 1 1971 Mar. 1972 A-98—A-110 Operating ratios ............... June 1973 A-96—A-101 July 1972 A-98—A-101 1972 Mar. 1973 A-100—A-114 Stock market credit .................. Jan. 1973 A-98—A-99 Statistical R eleases 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 □ JUNE 1973 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplyinig reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Gold Drawing cur­ Held Other stock Rights rency under Loans Float 2 F.R. Total * certificate out­ Bought repur­ assets 3 account stand­ Total out­ chase ing right agree­ ment Averages of daily figures 1939—Dec........................................... 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec........................................... 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec........................................... 23,708 23,708 381 652 24,744 20’,047 4^322 1950—Dec........................................... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec........................................... 27,248 27,170 78 94 1,665 29,060 17,954 5,396 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—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............................................ 75,353 74,914 439 1,721 2,319 1,043 80,542 10,410 400 8,444 Mayp...................................... 76,758 76,205 553 1,787 2,240 960 81,883 10,410 400 8,478 Week ending— 1973—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 1,845 2,330 1,025 80,726 10,410 400 8,444 25................................. 75,654 74,907 747 1,646 2,813 1,139 81,388 10,410 400 8,448 May 2................................. 76,149 75,830 319 1,875 2,166 1,120 81,419 10,410 400 8,461 9................................. 76,501 76,027 474 1,484 2,361 1,195 81,698 10,410 400 8,464 16................................. 77,020 76,296 724 1,814 2,418 1,059 82,484 10,410 400 8,468 23p.............................. 77,534 76,477 1,057 1,688 2,173 760 82,296 10,410 400 8,487 30^ ........................... 76,231 76,231 2,400 1,839 793 81,351 10,410 400 8,494 End of month 1973—Mar.......................................... 75,650 7 74,381 1,269 2,048 1,845 915 80,623 10,410 400 8,420 76,785 7 75,895 890 1 ,716 1,195 1,128 80,960 10,410 400 8,455 Mayp ........................... 75,368 7 75,368 1,225 2,693 809 80,178 10,410 400 8,498 Wednesday 1973__Mar 7 .............................. 72,086 8 72,086 1,132 3,542 794 77,632 10,410 400 8,390 14................................ 74,257 7 73,559 698 1,823 3,282 878 80,406 10,410 400 8,407 21 ........................... 73,103 8 73,103 2,984 2,742 901 79,805 10,410 400 8,412 28................................ 75,193 7 74,050 1,143 2,028 2,122 949 80,436 10,410 400 8,422 Apr 4 74,493 7 74,493 1,082 3,268 949 79,867 10,410 400 8,436 11 .............................. 74,350 8 74,350 1,241 2,943 1,010 79,619 10,410 400 8,440 18................................. 76,953 7 75,033 1,920 3,159 3,403 1,088 84,768 10,410 400 8,445 25................................. 75,393 8 74,714 679 1,522 3,090 1,134 81,252 10,410 400 8,453 76,464 7 75,890 574 817 3,457 1,177 82,059 10,410 400 8,462 9 p.............................. 76,814 7 76,296 518 2,778 2,729 1,226 83,710 10,410 400 8,466 16 p.............................. 77,663 7 76,296 1,367 2,445 3,341 739 84,378 10,410 400 8,471 23 p.............................. 77,940 7 76,506 1,434 1,455 2,514 787 82,864 10,410 400 8,493 30p.............................. 75,187 8 75,187 1,771 2,134 820 79,996 10,410 400 8,498 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 19721. on Wed. and end-of-month dates, see tables on F.R. Banks on following Beginning with 1960 reflects a minor change in concept; see Feb. 1961 pages. See also note 2. Bulletin, p. 164. Notes continued on opposite page. 3 Beginning Apr. 16, 1969, “Other F.R. assets’* and “Other F.R. liabilities and capital” are shown separately; formerly, they were netted together and reported as “Other F.R. accounts.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 c e u i i i n u o n l r a c n r ­ y ­ ­ T h c i u r n o a e r l g s a d y h s s ­ ­ T u re r a y s­ with r e F s F e . e i R o g r r v n . ­ e B s, a nks Other2 c O o F u a t . h c n R ­ e t . r s3 c b a O F i a p l l t i . n i i h R a t t d i e ­ a e . r l s 3 B F W a . n R it k h . s re c r C s a e o e n n u i r n d c r v * y ­ es Period or date Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .................................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .................................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .................................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .................................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .................................1960—Dec. 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. 61,182 573 2,170 185 574 2,289 27,347 5,465 32,812 .................................1972—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 6 31,774 ..............................................Nov.6 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 6 6 6 4 6 5 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 2,622 26,281 5,824 32,277 ...............................................Apr. 66.726 413 4,121 330 652 2,721 26,208 6,006 32,386 ...............................................May*5 Week ending— 64,683 385 3,177 343 692 2,609 25,873 5,906 32,058 ......................1973—Mar. 7 65,157 376 4,129 335 670 2,405 25,057 6,219 31,555 .......................................................14 65,250 380 3,731 365 650 2,499 26,158 5,525 31.962 .....................................................21 65,130 388 3,625 304 643 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 26,641 5,811 32,624 ......................................................18 66,296 416 3,641 258 663 2,624 26,749 5,477 32,398 ......................................................25 66,133 419 4,084 313 660 2,703 26,380 5,952 32,504 ......................................May 2 66,450 421 4,497 332 648 2,734 25,894 6,180 32,246 ....................................................... 9 66,851 417 4,393 314 637 2,622 26.528 6,263 32.963 ....................................................16 66,768 409 4,097 343 6 66 5 6 4 2,717 26,604 5,538 32,314 ....................................................23p 66,890 402 3,564 321 2,787 26,025 6,040 32,237 ....................................................30? End of month 65,180 407 2,881 327 696 2,648 27,713 5,865 33,750 ..............................1973—Mar. 66,094 415 4,163 328 773 2,753 25,700 5,952 31,824 ...............................................Apr. 67,152 402 3,243 289 692 2,839 24,869 6,139 31,180 ...............................................May*5 Wednesday 65,093 381 3,799 296 635 2,615 24,013 5,906 30,198 ......................1973—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 66,348 414 3,533 267 703 2,453 25,152 6,060 31,384 ....................................................11 66,519 421 2,787 263 658 2,574 30,801 5,811 36,784 ....................................................18 66,339 424 3,696 240 682 2,632 26,502 5,477 32,151 ....................................................25 6 6 6 6 , . 3 8 5 7 9 2 4 4 2 2 8 8 4 4, , 6 4 8 1 5 4 3 3 4 5 2 2 6 63 6 1 6 2 2, , 5 7 3 5 3 4 2 2 6 7 , , 3 4 6 8 8 6 6 5 , , 1 95 8 2 0 3 3 2 3, , 8 4 3 9 8 2 .............................................................M...a..y.. . 2 9 p p 67,003 414 4,925 333 644 2,708 27,631 6,263 34,066 ...............................\6p 66.872 419 3,984 290 613 2,752 27,236 5,538 32,946 ...................................23p 67,272 411 3,932 290 669 2,783 23,947 6,040 30,159 ...................................30p 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, I960; all allowed included are (beginning with first statement week of quarter): Ql, $279 thereafter. Beginning with Jan. 1963, figures are estimated except for million; Q2, $172 million. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 7 Includes securities loaned—fully secured by U.S. Govt, securities of-business figures for reserve period 2 weeks previous to report date. pledged with F.R. Banks. 6 Beginning with week ending Nov. 15, 1972, includes $450 million of 8 Includes securities loaned—fully secured by U.S. Govt, securities reserve deficiencies on which F.R. Banks are allowed to waive penalties pledged with F.R. Banks. Also reflects securities sold, and scheduled to for a transition period in connection with bank adaptation to Regulation J be bought back, under matched sale/purchase transactions. as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AND RELATED ITEMS □ JUNE 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 All othe Reserves Borrowings New York City City of Chicago Other Re­ Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess Borrow­ Excess rrowquired sonal ings ings ings lgs 9 6 , , 4 4 2 6 2 2 3 5, , 0 3 1 9 1 0 3 5 2,6 9 1 8 1 9 2 5 9 4 5 0 1 1 , , 1 3 8 0 8 3 1 8 67 0 1 4 4 3 14.536 1,491 334 48 192 14 418 96 1,011 46 16,364 1,027 142 125 58 232 50 663 29 2 2 2 2 1 7 4 6 2 8 , , , , , 7 9 7 2 5 7 1 6 6 2 4 5 6 7 7 4 4 2 3 7 5 5 5 4 5 5 7 5 2 6 1,0 4 2 7 8 3 5 8 6 6 8 5 7 4 1 4 2 5 0 1 1 9 6 0 8 2 2 1 4 5 3 1 1 9 1 0 0 9 1 1 1 4 8 8 5 5 1 9 6 5 0 0 6 7 0 0 4 2 2 1 7 7 2 2 0 9 8 0 0 5 2 2 6 3 1 2 6 5 3 7 3 7 0 7 0 « 3 1 4 2 9 8 8 1 0 2 0 0 2 3 8 1 , , 9 1 9 6 3 4 2 1 7 6 2 5 3 1 2 0 1 7 2 3 5 4 2 3 5 5 7 1 -3 4 5 2 2 2 6 2 4 1 1 8 7 9 4 4 28 2 3 3 3 3 3 3 3 3 2 2 3 1 2 2 1 2 , , , , , , , , 8 8 3 5 1 8 4 7 4 9 3 5 3 0 7 6 1 3 8 5 6 4 4 0 2 2 2 2 3 1 1 1 1 4 5 1 0 6 4 0 9 7 5 4 2 4 7 4 1,0 4 2 6 5 5 1 4 3 9 0 0 1 7 1 9 8 6 4 4 2 4 9 -2 2 6 3 3 1 0 1 9 4 2 4 6 4 3 1 1 0 5 6 1 3 5 1 1 9 6 6 4 6 5 0 -1 - - 2 1 1 1 1 4 2 3 9 8 0 4 5 1 1 1 1 5 5 1 9 6 2 2 - - - 4 2 4 - - 2 7 1 2 1 4 2 2 4 7 4 2 2 1 1 2 4 4 6 4 3 9 3 9 8 1 0 4 5 0 4 -1 1 1 1 1 1 1 - 6 4 0 4 3 6 6 5 0 8 6 5 7 0 4 2 2 2 1 1 1 7 6 3 4 2 7 7 1 5 1 4 8 0 6 7 7 32,620 342 1,165 95 193 108 -33 578 -1 286 3 3 3 3 1 1 2 2 , . , , 6 5 2 1 7 7 3 2 8 3 7 5 2 2 1 1 0 9 1 5 5 5 3 2 1 1 1 1 , , , , 7 8 5 7 2 9 5 8 1 3 8 7 30 5 - - 1 3 7 3 3 9 8 2 3 1 1 1 2 4 1 7 4 6 6 0 1 1 0 0 1 5 9 2 2 -1 - - 3 4 1 3 9 17 6 8 8 8 9 2 8 5 3 8 4 7 - - 2 4 4 2 8 7 5 7 4 7 7 7 7 2 8 3 1 1 3 8 3 3 3 3 2 2 2 2 , , , , 9 7 5 5 6 0 6 6 3 6 4 0 1 1 1 8 9 9 3 1 6 6 4 1 6 8 3 1 3 9 7 7 -6 4 1 5 1 3 5 4 2 3 6 1 9 9 0 - -4 2 3 3 8 0 1 3 -1 2 3 1 7 8 4 1 1 4 2 8 9 1 1 1 8 5 7 4 7 9 5 0 5 1 1 1 5 9 6 4 32,726 254 -26 51 24 54 -46 106 136 43 3 3 3 3 33 3 0 1 0 , , , , , 4 3 5 3 3 9 8 7 4 5 9 8 0 6 0 2 7 3 1 1 0 8 4 8 2 5 6 9 0 4 9 4 4 5 5 5 1 9 5 7 9 9 5 4 2 - - 1 3 1 2 3 9 8 2 8 6 6 1 8 9 0 2 2 1 - - - 1 1 3 2 2 1 5 0 6 0 2 3 1 1 1 3 1 7 5 - - 4 8 - 9 1 6 7 0 1 9 4 2 2 1 1 4 6 2 3 9 1 7 6 6 2 - - 1 1 1 1 8 0 6 6 7 2 0 3 0 6 2 2 2 2 2 9 8 8 6 4 1 5 9 7 3 30,673 336 589 21 43 33 75 -42 118 -126 353 3 3 3 0 1 1 , , , 8 2 25 2 0 2 4 2 2 2 1 4 0 8 4 6 9 1 1 , , 2 1 82 1 01 8 5 -3 2 1 7 4 7 2 4 2 0 2 7 6 2 8 -2 3 4 41 2113 - - -8 3 8 1 4 0 3 6 5 0 1 5 0 4 4 - - - 2 1 1 1 7 4 5 2 4 2 2 1 8 6 8 6 4 6 3 3 3 3 2 2 , , , 6 0 3 6 4 8 8 4 0 3 5 1 4 6 2 1 0 6 1 1 , , 7 2 6 5 9 8 1 8 8 - 1 2 4 4 1 6 9 2 7 0 1 6 1 3 6 -1 1 1 0 7 0 2 1 7 8 1 9 9 9 -1 -2 0 8 4 7 3 4 6 5 3 2 2 5 5 0 -1 2 3 5 3 9 2 2 1 3 7 8 3 4 3 3 32 2 , , 1 5 0 4 3 5 - 4 3 5 4 3 1 1 , , 3 0 0 9 9 7 - 2 8 0 2 4 260 -2 1 6 5 11 19 0 -1 -1 6 0 5 8 51 0 1 6 - -3 4 5 0 3 3 9 0 3 7 3 3 3 3 1 1 1 1 , , , , 6 3 6 5 8 2 3 0 7 5 7 0 - 5 1 1 1 0 4 8 4 5 8 7 1 1 1 1 , , , , 9 2 4 6 9 3 8 7 1 2 2 2 -1 -7 1 - 2 5 1 8 8 6 2 7 21 2 1 0 5 1 1 9 5 - - 2 1 1 7 1 1 7 1 1 12 7 0 1 1 8 4 6 - - - 2 7 7 4 3 5 4 7 9 6 5 5 2 9 8 6 8 9 4 4 - - - 2 3 7 1 4 2 0 2 4 4 4 5 1 8 5 4 1 1 5 0 3 3 3 3 1 1 1 1 , , , , 5 7 5 7 3 7 1 1 2 8 3 7 2 34 2 4 9 1 3 9 3 2 2 1 1 , , , , 1 0 4 6 9 3 1 8 1 8 3 9 - - 4 4 9 5 8 6 2 6 2 2 1 4 2 2 7 8 2 8 5 -2 4 5 3 3 1 1 1 1 9 1 0 3 9 3 4 0 -1 - - 5 6 - 1 3 8 6 2 1,0 6 9 6 7 5 9 2 1 7 5 3 - - - - 7 1 7 8 1 5 5 6 9 6 5 7 0 5 3 7 3 2 7 4 3 3 3 3 1 2 2 2 , , , , 8 0 3 0 4 8 9 6 5 2 2 0 - 2 5 3 8 3 3 3 6 4 7 6 1 1 1 1 , , , , 5 8 7 6 4 0 5 4 5 2 4 6 -1 1 1 8 8 6 4 4 9 6 0 3 1 2 4 0 4 4 5 6 4 -1 2 1 4 8 2 0 -1 -9 0 9 1 0 4 9 1 8 7 8 7 4 6 7 9 1 5 5 5 7 3 5 1 9 0 8 3 7 6 6 7 3 8 9 9 8 7 0 6 32,271 233 1,875 56 222 19 -63 868 49 779 3 3 3 3 2 2 2 2 , , , , 3 6 1 0 2 0 7 5 7 0 4 7 - 3 8 1 1 6 4 8 1 3 0 0 2 1 1 1 , , , , 4 4 8 68 8 1 0 8 4 4 0 -7 - 4 2 4 5 9 5 1 1 1 3 2 8 4 3 0 2 4 - -3 5 4 2 1 0 2 4 10 -1 -5 - 3 1 2 7 6 1,2 9 8 5 9 9 1 8 3 4 5 0 -2 9 4 5 4 9 0 9 6 8 6 8 4 5 8 9 3 9 2 NTov. 15, 1972, includes $450 million of parallel the previous “reserve city” and “country” categories, re; tively . Banks are allowed to waive penalties (hence the series are continuous over time). >n with bank adaptation to Regulation J . Beginning 1973, allowable deficiencies Note.—Monthly and weekly data are averages of daily figui within statement week of quarter): Ql, $279 the month or weeks, respectively. Beginning with Jan. 1964 res ss are estimated except for weekly averages. gnation of banks as reserve city banks Borrowings at F.R. Banks: Based on closing figures. has been based on size of bank (net Effective Apr. 19, 1973, the Board’s Regulation A, which gov< lend- 00 million), as described in the Bulletin ing by Federal Reserve Banks, was revised to assist smaller meml ihown here as “Large” and “All other” to meet the seasonal borrowing needs of their communities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 o 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 d ing— Excess r a B o t B w a F o n i r n . k R ­ g s . s F t f i b e r n u N d a a t n n e e n e d r r t k s s a ­ . l S d u e r o f p i r c l i u t s r P r e e e q a s r e o u v c r i g f r e v . e n e d t s c P ha u s r e ­ s Sales t a w t c T r o t o a i - o t n w a n s a l ­ s y 2 b c b o P h u a f a y u n n s i r k n e e ­ s t s g s o b S e a f l a l n n l i e n k e s g s t d L ea o t l a o e n r s s3 de f r B i a r n o o o l w g e r m s r ­ ­ s4 lo N a e n t s Total—46 banks 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 May 2......... 197 536 6,892 -7,232 51.5 12,841 5,949 4,267 8,574 1,682 1,178 443 735 9......... -39 514 8,232 -8,784 62.0 14,445 6,214 4,417 10,029 1,797 1,188 404 784 16........ 126 572 9,040 -9,487 65.6 14,466 5,426 3,924 10,542 1,502 1,374 459 915 23......... 103 252 8,481 -8,630 61.3 14,054 5,573 3,917 10,137 1,657 1,376 844 533 30......... 119 795 8,511 -9,186 66.0 13,481 4,971 4,052 9,429 919 1,704 376 1,327 8 In New York City 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 May 2......... 105 182 1,753 -1,831 32.5 3,163 1,410 1,094 2,069 316 711 240 472 9......... -21 174 3,081 -3,275 57.2 4,342 1,261 959 3,383 303 754 274 480 16........ 8 89 3,577 -3,658 62.1 4,426 849 677 3,748 171 865 293 572 23......... 51 -2,818 -2,767 49.1 4,245 1,427 1,047 3,198 380 841 344 497 30......... 35 129 2,655 -2,749 49.8 4,069 1,413 1,167 2,902 247 971 306 665 38 outside New York City 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 May 2......... 92 354 5,139 -5,401 64.3 9,679 4,539 3,173 6,506 1,367 467 203 264 9......... -18 340 5,151 -5,509 65.3 10,104 4,952 3,458 6,646 1,494 434 131 304 16........ 118 483 5,464 -5,829 67.9 10,040 4,577 3,246 6,794 1,331 509 166 343 23......... 52 252 5,663 -5,863 69.5 9,809 4,146 2,869 6,940 1,277 535 500 36 30......... 85 666 5,855 -6,437 76.6 9,413 3,557 2,886 6,527 672 733 70 662 5 in City of Chicago 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 May 2......... 37 2,064 -2,027 139.7 2,721 657 657 2,064 211 24 187 9......... -16 33 2,218 -2,266 154.3 2,856 638 638 2,218 215 10 205 16........ 20 2,233 — 2,213 146.6 2,919 685 685 2,233 222 10 212 23......... -7 2,159 -2,166 149.3 2,759 600 600 2,159 268 25 244 30......... 22 1,992 — 1,970 134.6 2,611 619 619 1,992 332 10 322 33 others 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 May 2......... 55 354 3,075 -3,374 48.5 6,958 3,883 2,516 4,442 1,367 256 180 77 9......... -3 307 2,933 -3,243 46.6 7,248 4,315 2,820 4,428 1,494 219 121 99 16........ 97 483 3,230 -3,616 51.1 7,122 3,892 2,561 4,561 1,331 287 156 131 23......... 59 252 3,504 -3,697 52.9 7,049 3,546 2,269 4,780 1,277 267 475 -208 30......... 63 666 3,864 -4,467 64.4 6,802 2,938 2,267 4,535 672 401 60 341 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 □ JUNE 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 M Ra a 1 t 9 y e 7 3 o 3 n 1, Ef d fe a c t t e ive Pr r e a v t i e ous R M a 1 a t 9 y e 7 3 o 3 n 1, Ef d fe a c t t e ive Pr r e a v t i e ous M Ra 1 a t 9 y e 7 3 o 3 n 1, Ef d fe a c t t e ive Pre ra v t io e us Boston......... May 11, 1973 5V4 61/2 May 11, 1973 61/4 May 11, 1973 7V4 New York.., May 11, 1973 5 y4 61/2 May 11, 1973 6V4 May 11, 1973 m Philadelphia. May 11, 1973 5V4 6 Vi May 11, 1973 6V4 May 11, 1973 1V4 Cleveland... May 11, 1973 5Y4 61/2 May 11, 1973 61/4 May 11, 1973 7y4 Richmond... May 11, 1973 5Y4 61/2 May 11, 1973 614 May 11, 1973 1V4 Atlanta....... May 11, 1973 5 y4 61/2 May 11, 1973 61/4 4 8 May 11, 1973 m Chicago........... May 11, 1973 534 6% May 11, 1973 61/4 4 8 May 11, 1973 73/4 S M K D S t a a a . i n n n l L l n s a F o a e s r u s . a a . i p . C s n .. . o c . . i . l . t i . . i y s . . s . . c . . . . o . . . . . . . . . ' M M M M M a a a a a y y y y y 1 1 1 1 1 1 1 8 1 1 , , , , , 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 3 3 3 3 3 5 5 5 5 5 V 3 3 3 3 / / / / 4 4 4 4 4 6 6 6 6 6 1 1 1 1 1 / / 2 / / 2 / 2 2 2 M M M M M a a a a a y y y y y 1 1 1 1 1 1 1 8 1 1 , , , , , 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 3 3 3 3 3 6 6 6 6 6 1 1 1 1 1 / / / / / 4 4 4 4 4 4 4 4 8 8 8 M M M M M a a a a a y y y y y 1 1 1 1 1 1 1 8 1 1 , , , , , 1 1 1 1 1 9 9 9 9 9 7 7 7 7 7 3 3 3 3 3 7 m m m m *4 1 Discounts of eligible paper and advances secured by such paper or by guaranteed as to principal and interest by, the U.S. Govt, or any U.S. Govt, obligations or any other obligations eligible for F.R. Bank agency thereof. Maximum maturity: 90 days. purchase. Maximum maturity: 90 days except that discounts of certain 4 Also effective on the same dates as the other rates shown above for bankers’ acceptances and of agricultural paper may have maturities not the eight Reserve Banks so designated, a rate of 6 percent was approved over 6 months and 9 months, respectively. on advances to nonmember banks, to be applicable in special circumstances 2 Advances secured to the satisfaction of the F.R. Bank. Maximum resulting from implementation of changes in Regulation J, which became maturity: 4 months. effective on Nov. 9, 1972. See “Announcements” on p. 942 of the Oct. 3 Advances to individuals, partnerships, or corporations other than 1972 Bulletin and p. 994 of the Nov. 1972 Bulletin. member banks secured by direct obligations of, or obligations fully SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1954, l!/2 I1/2 1959—Mar. 6. 21/2-3 3 1969—Apr. 4.................. 51/2-6 6 16. 3 3 8................... 6 6 1955— M Ap a r y . 1 1 2 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 / / 2 2 - - 1 1 3 3/ / 4 4 I 1 13 3 1 / / 4 2 4 J S M u e a p n y t e . 2 1 1 9 2 1 . . . 3 3 1/ 3 2 1 - - 3 /2 4 1 /2 4 3 3 1 1 / /2 2 1970—Nov. 1 1 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 53 3 / 4 4 - - 6 6 6 534 Aug. 4........... m1-%2 V4 134 18. 4 4 16.................. 534 534 IV4-2V4 2 Dec. 1.................. 51/2-534 534 12*. !!!’.!*. 2 -214 2 1960—June 3. 31/2-4 4 4.................. 51/2-53/4 51/2 Sept. 9........... 2 -214 214 10. 31/2-4 31/2 11.................. 51/2 51/2 13........... 21/4 214 14. 31/2 31/2 Nov. 18........... 2V4-21/2 21/2 Aug. 12. 3 -31/2 3 1971—Jan. 8.................. 51/4-51/2 514 23........... 21/2 21/2 Sept. 9. 3 3 15................... 514 514 19................... 5 -514 514 1956—Apr. 13........... 21/2-3 234 1963—July 17. 3 -3i/2 31/2 22.................. 5 -514 5 20........... 23/4-3 234 26. 31/2 31/2 29.................. 5 5 Aug. 24........... 234-3 3 Feb. 13.................. 434-5 5 31........... 3 3 1964—Nov. 24. 31/2-4 4 19.................. 434 434 30. 4 4 July 16.................. 434-5 5 1957—Aug. 9........... 3 -31/z 3 23.................. 5 5 2 3 31/2 31/2 1965—Dec. 6. 4 -4i/2 41/2 Nov. 11.................. 434-5 5 Nov. 15........... 3 -31/1 3 13. 41/2 41/2 19.................. 434 434 Dec. 2........... 3 3 Dec. 13.................. 41/2-43/4 43/4 1967—Apr. 7. 4 -41/2 4 17.................. 41/2-434 41/2 1958—Jan. 22........... 23^-3 3 14. 4 4 24.................. 41/2 41/2 2 4 234-3 234 Nov. 20. 4 -41/2 41/2 M A M A Se p u a a p r g r y t . . . . 2 1 2 1 1 1 7 9 1 3 5 8 3 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 l 1 1 1 3 3 3 4 / 2 2 4 1 4 4 4 1 - - 3 - - - 4 / 2 2 2 3 2 4 3 1 4 4 2 2 2 2 2 1 1 1 1 3 3 1 1 3 / / 4 / / 4 4 4 4 4 1968—M A A p u a r g r . . . 2 2 2 1 3 1 1 7 6 2 5 0 9 6 . , . . , . , 4 5 5 1 1 / 4 4 5 5 5 2 1 1 - - 1 - / 5 5 / 5 4 2 2 1 1 / /2 2 4 4 5 5 5 5 5 1 1 1 1 1 1 / h / / / / 2 4 2 2 2 1973 J M M F a e a n a b r y . . . 2 1 1 1 4 2 6 1 8 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 1 3 / / 5 5 5 6 2 4 3 1 - - - / / 5 5 6 4 2 i 3 / 4 2 5 5 6 6 5 5 5 1 1 1 3 / / / 4 2 2 2 Oct. 24......... 2 -2i/2 2 Dec. 18 5V4-51/2 51/2 Nov. 7.......... 21/2 21/2 20, 51/2 51/2 In effect May 31, 1973----- 6 6 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

JUNE 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 M6I/2 17Vi 73 73 75 Jan 1 1963 161/z 12 d Nov. 16 13 1966—July 14, 21 ... 4 4 5 In effect Sept. 8, 15 ... 6 May. 31, 19732,8 8 10 12 13 171/2 3 3 5 1967—Mar. 2......... 31/2 3Vi Mar. 16......... 3 3 1968—Jan. 11, 18... 161/2 17 12 121/2 1969—Apr. 17......... 17 171/2 121/2 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 deposits. The new reserve city designations are as follows: A bank having city banks and the second to the change at country banks. For changes net demand deposits of more than $400 million is considered to have the prior to 1963 see Board’s Annual Reports. character of business of a reserve city bank, and the presence of the head 2 (a) Demand deposits subject to reserve requirements are gross de­ office of such a bank constitutes designation of that place as a reserve mand deposits minus cash items in process of collection and demand city. Cities in which there are F.R. Banks or branches are also balances due from domestic banks. reserve cities. Any banks having net demand deposits of $400 million or (b) Requirement schedules are graduated, and each deposit interval less are considered to have the character of business of banks outside of applies to that part of the deposits of each bank. reserve cities and are permitted to maintain reserves at ratios set for banks (c) Since Oct. 16, 1969, member banks have been required under Regu­ not in reserve cities. For details, see announcements on Regulation D in lation M to maintain reserves against foreign branch deposits computed 1972 Bulletins: July, pp. 649, 679; Oct., p. 942; Nov., p. 994. on the basis of net balances due from domestic offices to their foreign 5 Reserve city banks. branches above a specified base and against foreign branch loans to U.S. 6 The 16Vi per cent requirement applied for one week, only to former residents above a specified base. The applicable reserve percentage, reserve city banks. For other banks, the 13 per cent requirement was originally 10 per cent, was increased to 20 per cent on Jan. 7,1971. Effective continued in this deposit interval. June 21, 1973, the requirement will be reduced to 8 per cent. The reserve- 7 See preceding columns for earliest effective date of this rate. free base relating to net balances due from domestic banks to foreign 8 Effective June 21, 1973, member banks will be subject to an 8 per cent branches will be reduced gradually until eliminated, by Apr. 1974. The marginal reserve requirement against increases in the aggregate of (a) out­ reserve-free base related to member banks’ foreign branch loans to U.S. standing single-maturity time deposits of $100,000 and over and (b) out­ residents will be eliminated June 21, 1973. Regulation D imposes a similar standing funds obtained by the bank through issuance by a bank’s affiliate reserve requirement on borrowings above a specified base from foreign of obligations subject to the existing reserve requirement on time deposits. banks by domestic offices of a member bank. The reserve-free base related The 8 per cent requirement will apply to balances above a specified base, to this type of borrowings will be reduced gradually until eliminated, by but will not be applicable to banks that have obligations of these types Apr. 1974. For details, see Regulations D and M and appropriate supple­ aggregating less than $10 million. For details, see amendments to Regula­ ments and amendments thereto. For the latest change, see the May 1973 tion D under “Bank Credit Actions” beginning on p. 375 of the May 1973 Bulletin, beginning on p. 375. Bulletin. 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. member bank will maintain reserves related to the size of its net demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ JUNE 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 Sa 1 v 2 in m gs o d n e t p h o s s o it r s m : 1 ore.. 4 4 O Sa t v h i e n r g t s i m de e p d o e s p it o s. s . i . t .. s . : . 2 .. ... 4Vi Less than 12 months. 3% Multiple maturity:3 30-89 days.......... 4 4Vi 90 days-1 year... 5 1 year to 2 years., 5 5 Vi 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.. 5Vi 5 Vi 9 6 0 m d o a n y t s h t s o t o 6 1 m 2 o m nt o h n s t . h . s . 2 3% K 4 Vi 5 Vi $10 2 0 y , e 0 a 0 r 0 s a a n n d d o o v v e e r r: .. 5Va Less than 90 days........ 4 30-59 days.......... 5 Vi (30-89 days) 60-89 days.......... 53/4 8 90-179 days........ 5 Vi 5 Vi 6 (4) 180 days to 1 year. (4) 1 year or more... Wa (4) imu 1 m C lo r s a i t n e g s o d n at e p o fo st r a t l h s e a v P i o n s g t s a l a S c a co v u in n g t s s S c y o s in te c m id e w d a s w M ith a r t . h 2 o 8 s , e 1 o 9 n 6 6 s . a M vin a g x s ­ 6 3 0 0 - - 8 5 9 9 d d a a y y s s 6 6 V V4 i p p e e r r c c e en n t t June 24, 1970 deposits. 90-179 days 6% per cent' 2 For exceptions with respect to certain foreign time deposits, see 180 days to 1 year 7 per cent May 16, 1973 Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, 1 year or more 7 Vi per cent p. 167. 3 Multiple-maturity time deposits include deposits that are automati­ Note.—Maximum rates that may be paid by member banks are estab­ cally renewable at maturity without action by the depositor and deposits lished by the Board of Governors under provisions of Regulation Q; that are payable after written notice of withdrawal. however, a member bank may not pay a rate in excess of the maximum 4 Maximum rates on all single maturity time deposits in denominations rate payable by State banks or trust companies on like deposits under of $100,000 and over have been suspended. Rates which were effective the laws of the State in which the member bank is located. Beginning Jan. 21, 1970, and the dates when they were suspended are: Feb. 1, 1936, maximum rates that may be paid by nonmember insured commercial banks, as established by the FDIC, have been the same as 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 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 100 100 1947—Feb. 1 1949—Mar. 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 70 50 70 June 8 1970—May 5, 80 60 80 1970—May 6 1971—Dec. 65 50 65 1971—Dec. 6 1972—Nov. 22 55 50 55 Effective Nov. 24, 1972. 65 50 65 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11,1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 h p r a u o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G h p r u a o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f r m t r s i p , ty ­ c G h p r u a o s r s e ­ s s G sa r l o e s s s m E s a h x t i u c f r h ts i . ty tions 1972—Apr. 2,666 1,478 135 2,254 1,478 133 -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 ‘-iii’ 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 Apr. 3,685 2,101 51 3,478 2,101 51 50 127 Outright transactions in U.S. Govt, securities—Continued) Repurchase Bankers’ ! agreements Federal agency acceotances 1 (U.S.Govt. Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c f i h t t a y s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c f it h t a y s . ­ c G p h r u a o s r s e ­ s s G sa r l o e s s s s G e it c o i u e v s r t ­ . r O ig u h t t ­ R a m c g e h e r p a n e u s e t e r s ­ ­ r O i n g u e h t t t ­ , m r a c e g h n e p r a n e u e s t t e r e s ­ ­ , chango1 1972—Apr.. 126 23 2,625 3,298 380 169 -16 1 -61 472 May 1,115 1,299 25 —4 65 1,386 June. 109 20 211 1,326 -251 * * ill -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.. 7 32 3,594 3,594 220 -22 7 206 Nov 3,547 3,547 -593 | 157 — 6 -442 Dec 4,863 4,765 405 i 134 13 7 36 596 1 I973—Jan 9,719 8,928 2,116 i 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 Apr.. 19 11 5,664 5,978 1,218 j -19 -65 7 -36 1,106 I 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers* acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st o e u rl n in d g s s A c u h s il t l r in ia g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n i e sh 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 N gu l e a i t l n h d 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—Feb., 17 3 2 Mar. 17 3 2 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 3 Feb. 4 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ JUNE 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1973 1973 1972 May 30 May 23 May 16 May 9 May 2 May 31 Apr. 30 May 31 Assets Gold certificate account............................... 10,303 10,303 10,303 10,303 10,303 10,303 10,303 10,303 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash................................................... 313 313 316 319 311 306 323 318 Loans: Member bank borrowings............. 1,771 1,455 2,445 2,778 817 1,225 1,716' 1,594 Other.............................................. Acceptances: Bought outright............................. 84 90 90 83 78 Held under repurchase agreements. 78 100 65 Federal agency obligations: Bought outright.............................. 1,240 1,256 1 ,256 1,256 1 .256 1,240 1,261 979 Held under repurchase agreements. 182 157 60 73 29 25 U.S. Govt, securities: Bought outright: Bills.......................... 33,400 33,703 34,493 34,493 34,087 33,581 34,087 30,504 Certificates—Special. Other.. Notes....................... 36,936 36,936 36,936 36,976 36,976 36,936 36,976 36,448 Bonds....................... 3,611 3,611 3,611 3,571 3,571 3,611 3,571 3,540 Total bought outright.................... 1,273,947 175,250 175,040 175,040 174,634 174,128 174,634 170,492 Held under repurchase agreements. 1,252 1,210 458 501 861 1,115 Total U.S. Govt, securities. 73,947 76,502 76,250 75,498 75,135 74,128 75,495 71,607 Total loans and securities.................. 77,042 79,563 80,298 79,755 77,425 76,676 78,637 74,348 Cash items in process of collection... *8,944 *8,016 ^10,530 *>8,331 9,919 *8,525 6,333 11,093 Bank premises................................... 201 202 202 201 199 201 199 163 Other assets: Denominated in foreign currencies. 4 4 4 4 4 4 4 57 All other........................................ 615 581 533 1,021 974 604 925 625 Total assets. *97,822 *99,382 *102,586 *100,334 99,535 *97,019 97,124 97,307 Liabilities F.R. notes........................................ 59,391 59,005 59,156 59,045 58,529 59,255 58,269 54,249 Deposits: Member bank reserves................. *23,947 *27,236 127,631 *27,486 26,368 *24,869 25,700 29,538 U.S. Treasurer—General account. 3,932 3,984 4,925 4,685 4,414 3,243 4,163 2,144 Foreign......................................... 290 290 333 352 342 289 328 157 Other: All other................................... 669 613 644 631 666 692 773 584 Total deposits. *28,838 *32,123 *33,533 *33,154 31,790 *29,093 30,964 32,423 Deferred availability cash items........... 6,810 5,502 7,189 5,602 6,462 5,832 5,138 8,247 Other liabilities and accrued dividends. 801 854 894 801 772 845 793 580 Total liabilities.................................... *95,840 *97,484 *100,772 *98,602 97,553 *95,025 95,164 95,499 Capital accounts Capital paid in.......................................................... 815 815 815 815 814 816 814 768 Surplus...................................................................... 793 793 793 793 793 793 793 742 Other capital accounts.............................................. 374 290 206 124 375 385 353 298 Total liabilities and capital accounts........................ *97,822 *99,382 *102,586 *100,334 99,535 *97,019 97,124 97,307 Contingent liability on acceptances purchased for foreign correspondents.......................................... 378 377 383 347 344 384 344 261 Marketable U.S. Govt, securities held in custody for foreign and international accounts....................., 30,011 30,488 30,527 30,056 30,384 29,994 30,184 28,594 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)... 62,698 62,577 62,544 62,284 62,273 62,790 62,330 57,575 Collateral held against notes outstanding: Gold certificate account.......................... 2,075 2,075 2,075 2,175 2,300 2,075 2,300 1,945 U.S. Govt, securities............................... 62,035 62,035 62,025 61,775 61,665 62,135 61,665 57,235 Total collateral. 64,110 64,110 64,100 63,950 63,965 64,210 63,965 59,180 1 See note 7 on p. A-5. 2 See note 8 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 o FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MAY 31, 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 la le 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 o t u . is M ap i o n l n is e­ K C s a a it n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account..................... 10,303 482 2,777 755 767 876 567 1,749 451 111 390 588 790 Special Drawing Rights certificate 400 23 93 23 33 36 22 70 15 7 15 14 49 968 110 223 37 45 86 196 50 21 15 31 46 108 306 17 23 4 35 36 41 36 23 5 41 12 33 Loans: Secured by U.S. Govt, and agency 1,124 43 144 49 98 79 164 152 56 12 132 34 161 101 96 4 1 Acceptances: Bought outright.............................. 83 83 Federal agency obligations: 1,240 57 329 67 93 90 66 197 46 27 49 54 165 U.S. Govt, securities. Bought outright.............................. 174,128 3,393 19,642 3,984 5,576 5,393 3,952 11,803 2,743 1,602 2,951 3,217 9,872 76,676 3,589 20,198 4,100 5,771 5,562 4,183 12,152 2,845 1,641 3,132 3,305 10,198 Cash items in process of collection... 10,525 443 1,537 732 487 1.144 1,121 1,475 412 459 699 619 1,397 201 33 7 5 27 14 15 16 14 33 17 12 8 Other assets: Denominated in foreign currencies.. 4 22 1 1 All other......................................... 604 28 159 33 43 45 34 88 21 18 23 25 87 Total assets..................................... 99,987 4,725 25,019 5,689 7,208 7,799 6,179 15,637 3,802 2,289 4,348 4,621 12,671 Liabilities F.R. notes.......................................... 60,223 3,092 14,999 3,747 4,754 5,324 3,094 10,012 2,369 1,098 2,385 2,295 7,054 Deposits: Member bank reserves.................... 24,869 897 6,975 1,124 1,446 1,242 1,706 3,580 741 573 1,035 1,474 4,076 U.S. Treasurer—General account.. 3,243 260 443 285 269 316 298 320 242 135 230 203 242 Foreign........................................... 289 13 360 15 28 16 22 48 11 7 13 17 39 Other: All other..................................... 699 1 598 15 1 11 16 25 1 1 2 3 25 Total deposits..................................... 29,100 1,171 8,076 1,439 1,744 1,585 2,042 3,973 995 716 1,280 1,697 4,382 Deferred availability cash items......... 7,825 340 1,193 360 474 718 860 1,207 339 408 568 489 869 Other liabilities and accrued dividends 845 39 237 44 63 58 46 130 30 22 33 35 108 Total liabilities................................... 97,993 4,642 24,505 5,590 7,035 7,685 6,042 15,322 3,733 2,244 4,266 4,516 12,413 Capital accounts Capital paid in................................. 816 33 208 39 73 45 59 129 28 19 34 45 104 793 34 207 39 72 42 55 124 27 18 33 43 99 Other capital accounts....................... 385 16 99 21 28 27 23 62 14 8 15 17 55 Total liabilities and capital accounts.. 99,987 4,725 25,019 5,689 7,208 7,799 6,179 15,637 3,802 2,289 4,348 4,621 12,671 Contingent liability on acceptances purchased for foreign correspond- 384 16 4105 19 34 20 26 59 13 9 16 20 47 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank)...................................... 62,790 3,255 15,732 3,830 4,927 5,495 3,323 10,254 2,497 1,128 2,488 2,449 7,412 Collateral held against notes out­ standing: Gold certificate account................. 2,075 180 250 350 435 700 155 5 U.S. Govt, securities...................... 62,135 3,110 15,850 3,700 4,700 5,115 3,500 9,900 2,430 1,150 2,600 2,480 7,600 Total collateral................................... 64,210 3,290 15,850 3,950 5,050 5,550 3,500 10,600 2,585 1,150 2,600 2,485 7,600 1 See note 7 on p. A-5. 4 After deducting $279 million participations of other Federal Reserve 2 After deducting $2 million participations of other Federal Reserve Banks. Banks. 3 After deducting $229 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 □ JUNE 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 May 30 May 23 May 16 May 9 May 2 May 31 April 30 May 31 1,771 1,455 2,445 2,778 818 1,225 1,709 1,592 Within 15 days......................................................... 1,671 1,427 2,410 2,754 800 1,182 1,688 1,590 16 days to 90 days................................................... 100 28 35 24 18 43 21 2 91 days to 1 year..................................................... Acceptances—T otal..................................................... 84 168 190 163 144 83 136 143 Within 15 days......................................................... 35 109 119 90 71 33 65 90 16 days to 90 days................................................... 49 59 71 73 73 50 71 53 91 days to 1 year..................................................... U.S. Government securities—Total............................ 73,947 76,502 76,250 75,498 75,135 74,128 75,495 71,607 Within 15 days*....................................................... 4,266 6,796 6,852 10,511 10,485 2,885 9,186 5,059 16 days to 90 days................................................... 18,082 17,558 16,732 17,398 17,244 17,998 18,170 15,894 91 days to 1 year..................................................... 13,895 14,444 14,962 13,714 13,531 15,541 14,264 19,581 Over 1 year to 5 years............................................. 26,832 26,832 26,832 28,148 28,148 26,832 28,148 24,039 Over 5 years to 10 years.......................................... 9,243 9,243 9,243 4,138 4,138 9,243 4,138 5,804 Over 10 years........................................................... 1,629 1,629 1,629 1,589 1,589 1,629 1,589 1,230 Federal agency obligations—Total.............................. 1,240 1,438 1,413 1,316 1,329 1,240 1,290 1,004 Within 15 days1....................................................... 20 198 173 60 73 20 34 60 16 days to 90 days................................................... 26 28 28 44 42 26 42 78 91 days to 1 year..................................................... 219 229 229 229 231 219 231 221 Over 1 year to 5 years............................................. 537 545 545 545 545 537 545 409 Over 5 years to 10 years.......................................... 247 247 247 247 247 247 247 132 Over 10 years........................................................... 191 191 191 191 191 191 191 104 i 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 * Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S th A e ’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—Apr............................. 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............................ 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 June............................ 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............................. 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............................. 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............................ 14,022.7 6,285.1 3,191.0 7,737.6 4,546.5 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 95.6 61.8 48.9 1973—Jan.'........................... 15,473.1 6,855.4 3,653.7 8,617.7 4,964.1 94.0 224.0 98.5 64.3 51.2 Feb.r.......................... 16,049.0 7,227.0 3,788.3 8,821.9 5,033.7 97.6 238.0 102.6 65.9 51.9 Mar.r......................... 15,934.5 6,844.8 3,856.3 9,089.7 5,233.4 96.9 228.3 104.1 67.6 53.8 Apr............................. 16,000.3 6,927.5 3,873.7 9,072.8 5,199.1 95.9 228.9 102.3 66.4 52.7 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA’s includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For back data see pp. 634-35 of July 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 a U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 Total Coin $1 2 52 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939. 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950. 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1959. 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960. 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961. 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965. 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968. 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970. 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 1971. 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--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 Apr........... 66,094 44,313 7,382 2,406 135 3,234 9,447 21,707 21,781 5,887 15,476 190 222 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 Apr. 30, against Treasury F.R. Banks 1973 gold and cash Banks and silver and Agents Apr. Mar. Apr. certificates Agents 30 31 30 Gold............................................................................ 10,410 (10,303) 107 Gold certificates.......................................................... (10,303) 210,302 1 Federal Reserve notes................................................. 62,330 167 4,061 58,102 57,251 53,019 Treasury currency—Total........................................... 8,455 141 323 7,991 7,930 7,516 Dollars..................................................................... 767 34 40 693 685 618 Fractional coin......................................................... 7,076 105 282 6,689 6,635 6,285 United States notes.................................................. 323 3 319 320 321 In process of retirement 3........................................ 290 290 290 293 Total—Apr. 30, 1973................................................. 481,196 (10.303) 415 10.302 4,385 66,094 Mar. 31, 1973................................................. 480,446 (10.303) 407 10.302 4,557 65,180 Apr. 30, 1972................................................. 474,888 (9,475) 401 9,474 4,477 60,535 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 □ JUNE 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi M2 Mz Mi M2 Mi Composition of measures is described in the Note below. 1969—Dec.............................. 208.8 392.3 594.0 214.9 397.0 598.4 1970—Dec.............................. 221.3 425.2 641.3 227.7 430.0 645.6 1971—Dec.............................. 236.0 473.8 727.7 242.8 478.7 731.9 1972—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............................. 250.1 512.1 799.0 248.7 510.4 796.9 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—Jan.............................. 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............................. 256.6 532.6 839.7 254.1 531.4 838.8 Apr.............................. r258.2 r536.2 r845.6 *•259.5 r539.5 '849.8 MayP........................................ 260.6 540.6 851.8 256.0 538.2 850.0 Week ending— May 2........................ 259.4 538.4 257.4 538.3 9........................ 259.5 538.3 256.1 537.1 16........................ 261.2 541.2 257.4 539.4 23........................ 260.6 541.2 254.7 537.4 30^................................. 260.8 541.8 255.1 538.3 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. Mu Averages of daily figures for (1) demand deposits of commercial Mz: Mi 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. M2: 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 CD’s 1 Other Total 1969—Dec................... 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—Dec................... 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—Dec................... 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—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 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—Jan.................... 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 r307.0 57.3 196.7 54.0 277.3 331.4 307.4 10.1 Apr................... r58.7 *•199.5 58.7 278.0 336.7 r309.4 58.2 r201.3 56.1 280.0 336.1 r310.3 8.2 May^............... 59.0 201.6 61.7 280.1 341.8 311.2 58.7 197.3 58.8 282.2 340.9 311.8 8.4 Week ending— May 2 .... 58.6 200.8 59.3 279.0 338.2 57.8 199.6 56.5 280.9 337.4 11.4 9 59.2 200.2 61.1 278.8 340.0 59.1 197.0 57.9 281.0 338.9 10.7 16 58.9 202! 3 61.8 279.9 341.7 58.8 198.6 58.5 282.0 340.5 8.3 23 59* 0 201.6 62 3 280.7 342.9 58.6 196.2 59.4 282.7 342.1 7.6 30p........... 59.0 201.8 62.6 281.0 343.5 58.6 196.5 59.7 283.3 343.0 6.7 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

JUNE 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 requirements3 Total member bank deposits plus nondeposit S.A. N.S.A. items 4 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—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...... r32.33 r30.17 32.08 r29.86 r421.1 261.8 '153.4 5.8 r422.3 260.5 r154.9 6.8 r426.2 ••427.5 May**... 32.45 30.20 32.28 30.10 425.0 265.8 154.7 4.6 422.9 264.5 151.4 7.0 430.5 428.3 1 Averages of daily figures. Member bank reserve series reflects actual except those due to the U.S. Govt., less cash items in process of collection reserve requirement percentages with no adjustment to eliminate the and demand balances due from domestic commercial banks. effect of changes in Regulations D and M. Required reserves were in­ 4 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970. other nondeposit items. This series for deposits is referred to as “the ad­ Required reserves were reduced by approximately $2.5 billion, effective justed bank credit proxy.” Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 mi 2 ll i R on es e e r ff v e e c s t iv a e v a N il o a v b . l e 2 2 to . support private nonbank deposits are defined “R N ev o i t s e io .— n o F f o t r h d e e M sc o ri n p e t y io S n t o o c f k r e M vi e s a e s d u r s e e s r ie a s n d a n M d e f m or b e b r a c B k a n d k a t R a, e s s e e r e v e a s r t a ic n l d e as (1) required reserves for (a) private demand deposits, (b) total time Deposits” on pp. 61-79 of the Feb. 1973 Bulletin. and savings deposits, and (c) nondeposit sources subject to reserve re­ Due to changes in Regulations M and D, member bank reserves include quirements, and (2) excess reserves. This series excludes required reserves reserves held against nondeposit funds beginning Oct. 16, 1969. Back data for net interbank and U.S. Govt, demand deposits. may be obtained from the Banking Section, Division of Research and 3 Averages of daily figures. Deposits subject to reserve requirements Statistics, Board of Governors of the Federal Reserve System, Washington, include total time and savings deposits and net demand deposits as defined D.C. 20551. by Regulation D. Private demand deposits include all demand deposits LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans Securities Loans Securities Total Total Date loans Commercial loans Commercial and and industrial and and industrial invest­ Plus U.S. invest­ Plus U.S. ments 1 Total1 loans Plus Treas­ Other3 ments1 Total1 loans Plus Treas­ Other3 sold2 Total loans ury sold2 Total loans ury sold2 sold2 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—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. 31 564.6 385.5 388.2 133.2 134.9 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. 25?.. 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 May 30^... 596.4 418.1 421.7 147.2 149.4 59.6 118.7 590.8 414.7 418.3 146.7 148.9 57.6 118.5 1 Adjusted to exclude domestic commercial interbank loans. See also 5 Beginning June 30, 1972, commercial and industrial loans were re­ note 3. duced by about $400 million as a result of loan reclassifications at one 2 Loans sold are those sold outright by commercial banks to own sub­ large bank. sidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1971, Farmers Home Administration insured notes Note.—Total loans and investments: For monthly data, 1959-70, totaling approximately $700 million are included in “Other securities” see Dec. 1971 Bulletin, pp. 974-75, and for 1948-58, Aug. 1968 Bulletin, rather than in “Loans.” pp. A-94-A-97. For a description of the current seasonally adjusted 4 Beginning June 30, 1969, data revised to include all bank-premises series see the Dec. 1971 Bulletin, pp. 971-73. Commercial and industrial subsidiaries and other significant majority-owned domestic subsidiaries; loans: For monthly data, 1959-71, see July 1972 Bulletin, p. A-109; earlier data include commercial banks only. Also, loans and investments for description see July 1972 Bulletin, p. 683. Data are for last Wednesday are now reported gross, without valuation reserves deducted, rather than of month except for June 30 and Dec. 31; data are partly or wholly esti­ net of valuation reserves as was done previously. Fora description of the mated except when June 30 and Dec. 31 are call dates. revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in that table have been revised to include valuation reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 COMMERCIAL BANKS □ JUNE 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets 3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Time 5 ury 2 counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,9'82 44,349 15,952 23 7,173 14,278 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,0165 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--May 31... 532,260 360,120 61,240110,900100,910 659,070 544.720 28,240 3,020 8,430 215,360 289,670 33,270 48,310 13,838 June 30... 542,689 370,910 60,258111,521 99,472 667,126 552,543 28,782 3,114 9,083 219,050 292,513 33,214 50,117 13,875 July 26... 542,940 371,820 59,580111,540 91,610 660,300 544,860 27,210 3,260 8,320 211,100 294,970 34,440 49,380 13,877 Aug. 30... 547,880 375,780 59,300112,800 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 60,290113,990 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 60,930114,160102.830 691,880 567,620 29,040 3,760 7,520 221,440 305,860 39,680 50,700 13.911 Nov. 29... 574,230 396,160 63,210114,860 91,460 694,050 572,160 27,060 3,920 7,760 224,990 308,430 38,350 51,160 13,924 Dec. 31... 598,808 414,696 67,028117,084113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083 52,658 13,927 1973--Jan. 3 Ip.. 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 4,880 10,850 223,380 335,170 45,920 53,440 13.998 May 30*.. 616,760 440,630 57,630118,500 95,790 744,140 606,720 27,670 5,250 5,760 226,800 341,240 47,490 53,850 13.998 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--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... 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... 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... 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... 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 5.695 May 30*.. 480,394 351,223 41,030 88.141 81,169 587,722 473,623 26,139 4,621 4,511 176,766 261,586 44,227 42,096 5.695 Large member banks: New York City:8,9, 10 1Q41_ 12,896 4,072 7,265 1,559 6,637 19,862: 17,932 4,202 6 866 12,051 807 1,648 36 1945-—Dec. 31... 26,143 7,334 17,574 1,235: 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947-—Dec. 31... 20,393 7,179 11,972 1,242: 7,261 27,982: 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055: 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 31 7. 60,333 48,305 5,048 6,980I 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-—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 t 19,152 92,0661 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 53,835i 5,045 i 10,256 > 21,261 96,657r 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 i 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 5,696i 10,625i 26,416 107,603i 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 i 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 i 9,635 ! 23,059 105,571 79,567 14,040I 1,708 1,506 i 30,533 31,780 10,321 8,142 13 Mar,. 28... 76,368 62,584I 4,498 : 9,286i 20,133 103,402 i 77,435 11,744 1,951 1,789 29,032 i 32,919 9,938 8,047 13 Apr. 25... 76,834 63,395i 4,254 • 9,185 i 19,710 » 103,622 77,295 11,935: 2,229 ' 1,732: 29,068 32,331 9,891 8,093 13 May 30. .. 78,078 64,505i 4,424i 9,149> 19,587' 104,550> 77,980 11,780I 2,491 521 30,035: 33,153 10,496i 8,137 13 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ 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 Time 5 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. 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. 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—May 18,147 13,283 1,665 3,199 3,538 22,697 16,509 1,412 182 282 6,631 8,002 3,280 1,836 9 June 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 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. 19,20( 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. 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. 20,37C 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. 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. 21,983 17,544 1,384 3,055 3,513 26,575 19,429 1,433 224 442 6,778 10,552 4,075 1,891 9 Mar. 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 Apr. 25........... 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 May 30............ 23,777 18,956 1.564 3,257 3.209 28.134 21,088 1,501 411 154 6,882 12,140 3,954 1,910 9 Other large member: 8,9 1Q41 TW 11 ............. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945_Dec. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............ 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 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. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............ 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 7........ 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Dec. 31............ 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—Dec. 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—May 31............ 151,153 108,846 14,362 27,945 34,413 193,947 155,174 9,985 1,020 2,763 60,716 80,690 16,435 13,890 157 June 30............ 155,085 113,213 14,141 27,731 33,806 197,155 156,850 9,645 1,008 3,527 61,701 80,970 17,592 14,020 157 July 26............ 154,528 113,172 13,873 27,483 30,738 193,595 153,678 9,593 1,098 2,868 58,980 81,139 17,626 14,011 157 Aug. 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. 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. 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 28,316 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 16,316 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. 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. 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 May 30............ 175,455 133,519 12,547 29,389 31,779 217.001 170,123 9,540 1,324 1,653 62,744 94,862 22,196 14,965 156 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. 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. 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—May 31............ 179,450 113,382 23,119 42,949 27,057 213,129 184,891 3,213 263 2,742 72,231106,442 4,089 15,012 5,534 June 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 July 26............ 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........... 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............ 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............ 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. 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. 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. 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. 25........... 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 5,517 May 30p.......... 203,084 134,243 22,495 46,346 26,594 238.037 204,432 3,318 395 2,183 77,105121,431 7,581 17,084 5,517 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS a JUNE 1973 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS 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 ury counts4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,i654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 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 i ; 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 31,824i 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 66,679116,298 111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 National member: 1 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,229 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 34,064 190,289i 169,615 10,521s 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 34,308I 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 14,324i 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 6,295i 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 1 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 75,047i 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 i 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! 85i 924• 37,561 43,792 629 7,403 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282: 12,092. 123,970i 109,841 1,212 2421 1,723i 44,717' 61,946 582 9,451 7,875 1972—June 30.. 116,317 73,1261 16,276i 26,915 ; 11,822 : 131,774 ■ 115,992 1,088 316I 1,432 ! 45,222 1 67,934; 1,076i 10,265: 7,955 Dec. 31.. 128,333 81,594• 17,964• 28,774■ 14,767' 147,013 130,316 1,408; 552t 1,796J 52,876i 73,685i 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

JUNE 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 and FDIC assets3 bilities row­ capital ber insurance Total Loa l ns T U re .S as . ­ Other ca a a p n c i d ­ tal Total3 m D a e n ­ d Time Demand Time ings co a u c n ­ ts ba o n f ks ury 2 counts 4 U.S. 5 Other Govt. Noninsured nonmember: 1941—Dec. 31.......... 1,457 455 761 241 763 2,283 1,872 3:19 1,291 253 13 329 852 1945 Dec. 31.......... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947 Dec. 316........ 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20.......... 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31.......... 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965 Dec. 31.......... 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30.......... 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31.......... 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30?....... 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 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31.......... 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31.......... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1963—Dec. 20.......... 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—Dec. 31.......... 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31.......... 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1967—Dec. 30.......... 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31.......... 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 7....... 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 Dec. 31.......... 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 1971—Dec. 31........ 111,674 69,411 17,297 24,966 13,643 129,100112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—June 30........ 120,510 76,357 16,550 27,603 13,042 137,658 119,145 1,472 397 1,453 46,631 69,192 1,462 10,759 8,161 Dec. 31........ 133,198 85,325 18,313 29,559 16,562154,085 134,091 1,895 633 1,850 54,406 75,305 1,726 11,429 8,223 1 Beginning June 30, 1966, loans to farmers directly guaranteed by lel the previous “Reserve city” and “Country” categories, respectively CCC were reclassified as securities, and Export-Import Bank portfolio (hence 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 banics 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” paral­ 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 a JUNE 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b c C a a l n l a l k s d s a a o n te d f l i o T n a a v o n n e t d a s s t l i ­ f s F e u o r e n l a d d d l ­ , s Total C m c o i e a m r l ­ ­ A cu g l r - i - o p s r u 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 R e e s a ­ l Ot i t h n o e - r, Other U s .S ec . u T ri r t e i a e s s u 6 ry S l a o t n c a d a te l Other ments etc. 2 3,4 a i n n d ­ a tu l r- 5 b T ro o ­ tate v d i i d - - 5 Bills g se o c v u t ­ . r s it e i c e u s5 ­ d tr u ia s l ­ k a e n r d s ot T he o rs BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31.. 116.284 38,05718,167 1,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io 422,728 9,928 286,750108,44310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1972—June 30. 543.285 20,598 350,910123,162 13,6108,6084,012 5,041 18,35389,22780,2438,651 60,258 86,59824,923 Dec. 31.599,36726,662 3":i88,593132,70114,31411,3164,491 6,58523,40298,38287,23210,17167,028 89,50427,579 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,873 3,258 1947_Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,129 3,621 1969—Dec. 31 io 419,746 9,693284,945107,68510.314 5,6443,991 2,425 14,89069,66963,0087,31954,399 58,84011,869 1972—June 30. 539,093 19,568348,707 122,06413,593 8,491 3,998 4,761 18,26689,04879,9338,55359,984 6,925 39,280 9,57086,28624,547 Dec. 31.594,50225,584385,941 131,42214,28711,1654,460 6,11523,27798,20486,91210,09966,679 89,17327,125 Member—Total: 1941—Dec. 31.. 43,321 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947_Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1969—Dec. 31 io 337,613 7,356235,63996,0956,1875,4083,286 2,258 14,03553,20748,3886,77639,833 47,2277,558 1972—June 30. 422,775 15,561279,588 104,4197,9248,2603,477 4,520 17,10466,518 59,6037,76543,708 4,61428,350 7,70967,777 16,141 Dec. 31.466,169 19,961309,969 112,1108,49510,8633,870 5,78322,02673,13164,4909,201 48,715 69,64017,884 New York City:11 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,50328,189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 1972—June 30 66,597 649 50,98725,972 5,665 768 1,834 4,936 5,288 4,561 1,930 5,338 691 2,568 1,286 8,491 1,132 Dec. 31. 75,034 812 57,90127,864 7,057 841 2,271 6,413 5,789 5,2252,390 5,696 9,107 1,518 City of Chicago:1 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1969—Dec. 31 io 14,365 215 10,556 6,444 50 337 262 186 1,219 842 862 354 1,564 1,837 192 1972—June 30. 18,541 783 12,999 7,179 66 666 225 242 2,015 1,011 1,054 542 1,662 402 822 189 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 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io 121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,70617,5692,757 11,944 16,625 1,859 1972—June 30. 155,158 8,272105,01441,7701,803 1,563 1,566 2,136 7,771 24,35820,7723,275 14,141 1,657 8,857 2,83723,5104,222 Dec. 31.171,618 9,927116,80244,483 1,9772,024 1,707 2,716 10,26827,01422,6693,943 16,316 24,0494,523 All other menber ;u 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 1,881 707 359 26,999 5,732 4,544 16,722 1,342 I,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31 io 141,286 3,318 89,401 23,7624,739 498 947 148 2,26328,82426,362 1,85821,278 22,5724,718 1972—June 30. 182,479 5,857110,58729,4986,023 366 917 308 2,381 35,85933,2152,01922,568 1,863 16,103 3,39733,005 10,463 Dec. 31. 198,156 8,504119,69031,9116,327 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. 31 io 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 1972—June 30 120,510 5,037 71,319 18,7435,686 348 535 521 1,24922,711 20,640 88616,550 18,8208,782 Dec. 31. 133,198 6,701 78,62420,591 5,819 453 622 803 1,37725,25022,741 969 18,313 19,8649,695 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for 1941 and 1945 appear in the add to the total and are not entirely comparable with prior figures. Total table on pp. A-18—A-21. 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, such securities were included in loans—for the most part in loans to portfolio fund participations were reclassified from loans to “Other “Banks.” Prior to Dec. 1965, Federal funds sold were included with securities.” This increased “Other securities” by about $1 billion. “Total” loans 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

JUNE 1973 □ COMMERCIAL BANKS A 23 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal­ De­ b c C a a l n l a l k s d s a a o n te f d B s F w e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w d n e n i o c s k t e t ­ h i s s c 7 ju p m s a o d a t d s e e n i ­ ­ d t d s 8 m D e I s n o t t ­ i e c r 7 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 i e f n e r f r c d d i s t k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U a o o a n . s v S v 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 l n ­ i t ­ s etc. ings Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1969—Dec. 31io.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 1972—June 30... 27,119 6,799 25,764 184,468 25,522 3,261 9,083 17,687 10,652 190,710 3,114 49233,110259,50633,21450,117 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. 31 io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,86018,02439,450 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. 3110.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,30817,39532,047 1972—June 30... 27,119 5,093 15,822 138,566 24,363 2,947 7,630 13,177 8,859 150,382 2,717 38725,668 197,86131,75239,358 Dec. 31.. . 26,070 6,582 19,396 158,464 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 10 20 1,206 * i 95 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 3110.. 4,358 463 455 21,316 8,708 1,641 694 1,168 6,605 28,354 268 45 207 14,6924,405 6,301 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: i1 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. 31 io.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 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 1,173 181 11,811 74,449 19,39214,687 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. 31io.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,82012,766 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 1,726 11,429 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 □ JUNE 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 May 3............. 291,808 11,134 10,032 652 325 125 199,494 85,283 2,468 894 7,004 184 2,542 6,426 8,484 10............. 290,364 10,165 8,589 923 265 388 198,854 85,223 2,478 913 6,680 163 2,554 6,283 8,432 1 7 291,419 11,088 9,926 617 244 301 198,910 85,177 2,491 745 6,395 163 2,534 6,302 8,447 2 4 290,014 10,237 9,379 473 199 186 198,633 84,823 2,504 678 6,557 194 2,545 6,043 8,438 31.............. 291,126 9,992 9,008 672 207 105 199,975 84,637 2,519 811 6,951 149 2,566 6,269 8,629 1973 Apr. 4............. 334,554 12,912 11,658 849 214 191 241,453 1100,344 3,094 1,148 6,584 242 2,919 7,892 14,536 11.............. 335,011 12,746 11,317 967 261 201 241,813 1100,822 3,108 856 6,584 210 2,925 7,842 14,535 1 8 334,787 11,851 10,857 711 143 140 243,365 1101,931 3,124 570 6,177 211 2,932 7,943 14,768 2 5 337,678 14,641 12,732 1,494 138 277 243,370 1101,899 3,119 497 6,220 212 2,964 7,902 14,646 May 2*............ 337,999 13,241 12,246 593 225 177 245,140 1102,487 3,091 595 6,295 213 2,951 8,045 15,062 9*............. 336,712 12,174 10,978 714 218 264 245,095 ;102,468 3,096 618 6,605 199 2,955 7,980 14,965 16 *............ 338,275 12,546 11,460 731 203 152 247,155 i102,937 3,114 536 6,577 217 2,945 8,352 15,236 23*............ 337,162 12,136 10,972 849 159 156 246,628 1103,005 3,142 463 6,015 216 2,960 8,130 15,324 30*............ 339,973 12,949 11,156 1,427 216 150 247,511 1102,871 3,142 891 6,073 226 2,933 8,094 15,480 New York City 1972 May 3............. 61,983 1,869 1,789 30 50 46,482 25,117 31 738 4,752 54 636 1,778 2,056 10.............. 60,561 705 669 3 33 45,848 24,971 30 757 4,442 50 648 1,737 2,021 1 7 60,675 1,246 1,205 41 45,418 25,005 33 591 4,132 47 638 1,731 2,019 2 4 60,046 827 783 15 29 45,266 24,770 33 544 4,332 50 640 1,657 2,038 31.............. 60,623 940 917 5 18 45,924 24,563 32 691 4,652 47 642 1,747 2,109 1973 Apr. 4.............. 70,913 1,438 1,324 45 69 56,683 28,846 53 1,004 3,848 43 650 2,331 4,512 11.............. 69,783 686 606 45 2 33 56,037 28,633 52 708 3,930 44 652 2,236 4,498 1 8 69,641 1,164 997 146 21 55,842 28,729 55 463 3,660 46 652 2,276 4,508 2 5 71,119 2,950 2,863 67 20 55,734 28,650 54 415 3,741 47 654 2,319 4,530 May 2*............ 70,789 2,063 1,967 72 24 56,472 28,832 52 480 3,679 47 662 2,326 4,729 9*............ 69,835 1,053 976 72 5 56,748 29,031 52 528 3,923 47 669 2,282 4,678 16*............ 71,351 1,615 1,518 82 14 1 57,625 29,186 64 455 3,977 50 661 2,486 4,820 23*............ 71,024 2,464 2,353 106 5 56,415 29,003 76 366 3,494 52 650 2,350 4,786 30*............ 72,092 2,484 2,374 104 6 57,087 28,967 76 774 3,567 61 644 2,356 4,918 Outside New York City 1972 May 3............. 229,825 9,265 8,243 622 325 75 153,012 60,166 2,437 156 2,252 130 1,906 4,648 6,428 10............. 229,803 9,460 7,920 923 262 355 153,006 60,252 2,448 156 2,238 113 1,906 4,546 6,411 1 7 230,744 9,842 8,721 617 244 260 153,492 60,172 2,458 154 2,263 116 1,896 4,571 6,428 2 4 229,968 9,410 8,596 473 184 157 153,367 60,053. 2,471 134 2,225 144 1,905 4,386 6,400 31.............. 230,503 9,052 8,091 667 207 87 154,051 60,074 2,487 120 2,299 102 1,924 4,522 6,520 1973 Apr. 4............. 263,641 11,474 10,334 804 214 122 184,770 71,498 3,041 144 2,736 199 2,269 5,561 10,024 11............. 265,228 12,060 10,711 922 259 168 185,776 72,189 3,056 148 2,654 166 2,273 5,606 10,037 1 8 265,146 10,687 9,860 565 143 119 187,523 73,202 3,069 107 2,517 165 2,280 5,667 10,260 2 5 266,559 11,691 9,869 1,427 138 257 187,636 73,249 3,065 82 2,479 165 2,310 5,583 10,116 May 2*.......... 267,210 11,178 10,279 521 225 153 188,668 73,655 3,039 115 2,616 166 2,289 5,719 10,333 9*........... 266,877 11,121 10,002 642 218 259 188,347 73,437 3,044 90 2,682 152 2,286 5,698 10,287 16*.......... 266,924 10,931 9,942 649 189 151 189,530 73,751 3,050 81 2,600 167 2,284 5,866 10,416 23*........... 266,138 9,672 8,619 743 159 151 190,213 74,002 3,066 97 2,521 164 2,310 5,780 10,538 30*.......... 267,881 10,465 8,782 1,323 216 144• 190,424 73,904 3,066 117 2,506 165 2,289 5,738 10,562 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 d 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 lyr. 5 yrs. 5 yrs. tic Large banks— Total 1972 40,630 1,050 2,595 24,803 933 16,198 27,076 3,615 4,840 15,525 3,096 .........................May 3 40,810 1,000 2,479 24,853 962 16,024 27,294 3,970 4,831 15,558 2,935 ...................................10 41,006 1,117 2,672 24,920 952 15,989 27,326 4,072 4.619 15,550 3,085 ...................................17 41,146 1,069 2.636 25,052 949 15,999 27,024 3,859 4.619 15,509 3,037 ...................................24 41,241 1,005 2.636 25,165 942 16,455 26,958 3,844 4,941 15,192 2,981 ...................................31 1973 47,478 3,269 4,789 28,823 1,216 19,119 25,960 5,513 3,861 14,609 1,977 .........................Apr. 4 47,732 3,191 4,887 28,919 1,223 18,979 25,424 5,177 3,821 14,382 2,044 ...................................11 47,990 3,303 4,915 29,071 1,234 19,196 24,840 4,709 3,769 14,309 2,053 ...................................18 48,083 3,292 4,891 29,181 1,216 19,248 24,743 4,769 3,750 14,194 2,030 ...................................25 48,193 3,175 4,894 29,306 1,220 19,613 24,495 4,511 3,808 14,142 2,034 .........................May 2* 48,370 3,024 4,835 29,345 1,247 19,388 24,031 4,169 3,710 14,058 2,094 ................................... 9 * 48,592 3,215 5,053 29,457 1,256 19,668 23,701 3,825 3,694 13,347 2,835 ...................................16* 48,854 3,272 5,155 29,579 1,246 19,267 23,503 3,776 3,856 13,110 2,761 ...................................23* 49,059 3,236 4,944 29,704 1,232 19,626 24,017 4,216 3,926 13,000 2,875 ...................................30* New York City 1972 4,333 277 1,244 1,912 552 3,002 4,805 883 1,065 2,483 374 .........................May 3 4,360 253 1,146 1,917 578 2,938 5,132 1,254 1,083 2,468 327 ...................................10 4,399 254 1,154 1,920 576 2,919 5,130 1,259 990 2,472 409 ...................................17 4,408 245 1,121 1,926 579 2,923 5,042 1,231 993 2,425 393 ...................................24 4,411 256 1,127 1,922 578 3,147 4,913 1,094 1,012 2,448 359 ...................................31 1973 5,140 1,318 2,099 2,161 717 3,961 4,646 1,838 571 2,148 89 .........................Apr. 4 5,169 1,293 2,131 2,169 708 3,814 4,481 1,700 524 2,048 209 ..................................11 5,232 1,325 2.165 2,176 707 3,848 4,191 1,523 494 1,980 194 ..................................18 5,225 1,309 2,127 2,181 707 3,775 3,947 1,390 528 1,860 169 ..................................25 5,239 1,324 2.165 2,183 699 4,055 3,769 1,138 537 1,892 202 .........................May 2* 5,258 1,200 2,118 2,200 711 4,051 3,472 954 486 1,788 244 ...................................9* 5,278 1,245 2,353 2,206 714 4,130 3,667 886 528 1,606 647 ...................................16* 5,311 1,189 2,351 2,218 711 3,858 3,772 1,087 539 1,568 578 ...................................23* 5,354 1,198 2,200 2,218 706 4,048 4,124 1,344 551 1 ,572 657 ...................................30* Outside New York City 1972 36,297 773 1,351 22,891 381 13,196 22,271 2,732 3,775 13,042 2,722 .........................May 3 36,450 747 1,333 22,936 384 13,086 22,162 2,716 3,748 13,090 2,608 ...................................10 36,607 863 1,518 23,000 376 13,070 22,196 2,813 3,629 13,078 2,676 ...................................17 36,738 824 1,515 23,126 370 13,076 21,982 2,628 3,626 13,084 2,644 ...................................24 36,830 749 1 ,509 23,243 364 13,308 22,045 2,750 3,929 12,744 2,622 ...................................31 1973 42,338 1,951 2,690 26,662 499 15,158 21,314 3,675 3,290 12,461 1,888 .........................Apr. 4 42,563 1,898 2,756 26,750 515 15,165 20,943 3,477 3,297 12.334 1,835 ...................................11 42,758 1,978 2,750 26,895 527 15,348 20,649 3,186 3,275 12,329 1,859 ...................................18 42,858 1,983 2,764 27,000 509 15,473 20,796 3,379 3,222 12.334 1,861 ...................................25 42,954 1,851 2,729 27,123 521 15,558 20,726 3,373 3,271 12,250 1,832 .........................May 2* 43,112 1,824 2,717 27,145 536 15,337 20,559 3,215 3,224 12,270 1,850 ...................................9* 43,314 1,970 2,700 27,251 542 15,538 20,034 2,939 3,166 11,741 2,188 ...................................16* 43,543 2,083 2,804 27,361 535 15,409 19,731 2,689 3,317 11,542 2,183 ...................................23* 43,705 2,038 2,744 27,486 526 15,578 19,893 2,872 3,375 11,428 2,218 ...................................30* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ JUNE 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 rants3 other partici­ others pation4 Large banks— Total 1972 May 3........................... 54,104 9,284 37,076 1.593 6,151 30,198 20,142 3,446 8,387 945 17,071 371,997 10........................... 54,051 9,055 37,242 1,614 6,140 28,386 20,107 3,572 8,031 949 16,700 368,109 1 7 54,095 9,117 37,289 1.594 6,095 30,125 21,814 3,633 8,609 951 16,616 373,167 2 4 54,120 9,041 37,408 1,577 6,094 27,629 20,079 3,743 8,447 952 16,417 367,281 31........................... 54,201 9,066 37,357 1,588 6,190 32,686 22,696 3,792 9,276 954 16,599 377,129 1973 Apr. 4........................... 54,229 7,344 38,389 1,686 6,810 28,891 19,428 3,575 9,653 1,256 19,324 416,681 11........................... 55,028 7,886 38,470 1,813 6,859 27,956 18,984 3,873 8,910 1,235 19,209 415,178 1 8 54,731 7,587 38,319 1,831 6,994 28,561 24,431 3,991 9,302 1,236 19,088 421,396 2 5 54,924 7,671 38,361 1,802 7,090 28,072 19,239 4,152 9,399 1,237 19,406 419,183 May 2 *......................... 55,123 7,673 38,688 1,655 7,107 30,990 19,599 3,901 9,451 1,233 19,701 422,874 9p......................... 55,412 8,330 38,377 1,536 7,169 26,731 21,307 3,846 9,035 1,240 19,164 418,035 16 p......................... 54,873 8,271 37,809 1,551 7,242 32,363 21,096 3,978 10,133 1,243 19,198 426,286 23 p......................... 54,895 8,249 37,841 1,540 7,265 26,911 20,698 4,084 9,898 1,248 19,274 419,275 30 p......................... 55,496 8,318 37,907 1,542 7,729 31,350 17,992 4,265 9,335 1,250 19,543 423,708 New York City 1972 May 3........................... 8,827 2,365 5,257 308 897 10,205 4,158 410 2,686 444 5,405 85,291 10........................... 8,876 2,328 5,337 333 878 10,881 4,872 434 2,830 446 5,209 85,233 1 7 8,881 2,292 5,410 314 865 10,154 6,127 408 3,133 449 5,224 86,170 2 4 8,911 2,291 5,438 306 876 10,729 5,345 433 3,195 449 5,055 85,252 3 1 8,846 2,260 5,378 280 928 11,783 5,899 425 3,455 452 4,893 87,530 1973 Apr. 4........................... 8,146 1,344 5,350 478 974 9,003 4,878 446 3,768 618 6,364 95,990 11........................... 8,579 1,727 5,288 524 1,040 8,961 5,093 475 3,355 592 6,232 94,491 1 8 8.444 1,586 5,231 540 1,087 8,515 7,370 460 3,777 591 6,162 96,516 2 5 8,488 1,598 5,258 536 1,096 9,342 4,851 475 4,012 590 6,401 96,790 May 2p......................... 8,485 1,609 5,260 480 1,136 10,228 5,276 457 3,671 585 6,334 97,340 9 p......................... 8,562 2,222 4,767 365 1,208 8,952 6,048 473 3,747 587 5,870 95,512 16*......................... 8.444 2,218 4,603 361 1,262 10,945 5,784 453 4,690 590 6,169 99,982 23*......................... 8,373 2,144 4,577 355 1,297 9,529 5,065 477 4,616 591 6,144 97,446 30*......................... 8,397 2,097 4,536 353 1,411 10,526 3,979 490 3,580 593 6,182 97,442 Outside New York City 1972 May 3. 45,277 6,919 31,819 1,285 5,254 19,993 15,984 3,036 5,701 501 11,666 286,706 10. 45,175 6,727 31,905 1,281 5.262 17,505 15,235 3,138 5,201 503 11,491 282,876 17. 45,214 6,825 31,879 1,280 5,230 19,971 15,687 3,225 5,476 502 11,392 286,997 24. 45,209 6,750 31,970 1,271 5,218 16,900 14,734 3,310 5,252 503 11,362 282,029 31. 45,355 6,806 31,979 1,308 5.262 20,903 16,797 3,367 5,821 502 11,706 289,599 1973 Apr. 4... 46,083 6,000 33,039 1,208 5,836 19,888 14,550 3,129 5,885 638 12,960 320,691 11... 46,449 6,159 33,182 1,289 5,819 18,995 13,891 3,398 5,555 643 12,977 320,687 18... 46,287 6,001 33,088 1,291 5,907 20,046 17,061 3,531 5,525 645 12,926 324,880 25... 46,436 6,073 33,103 1,266 5,994 18,730 14,388 3,677 5,387 647 13,005 322,393 May 2p. . 46,638 6,064 33,428 1,175 5,971 20,762 14,323 3,444 5,780 648 13,367 325,534 9 p 46,850 6,108 33,610 1,171 5,961 17,779 15,259 3,373 5,288 653 13,294 322,523 16*’.. 46,429 6,053 33,206 1,190 5,980 21,418 15,312 3,525 5,443 653 13,029 326,304 23*.. 46,522 6,105 33,264 1,185 5,968 17,382 15,633 3,607 5,282 657 13,130 321,829 30*. 47,099 6,221 33,371 1,189 6,318 20,824 14,013 3,775 5,755 657 13,361 326,266 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF URGE 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 Totals 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 148,502 101,536 7,165 8,614 20,694 738 721 2,565 6,469 147,113 57,294 62,598 19,410 2,110 5,224 .............May 3 143,851 99,253 6,700 6,538 20,273 697 884 2,632 6,874 147,520 57,401 62,840 19,433 2,205 5,157 ........................10 147,349 102,291 6,606 7,513 20,650 655 798 2,653 6,183 148,124 57,523 63,323 19,359 2,264 5,173 ........................17 141,693 99,231 6,353 5,792 19,679 618 745 2,657 6,618 148,951 57,590 63,936 19,428 2,310 5,208 ........................24 150,176 105,300 7,200 5,027 21,541 698 723 2,926 6,761 149,081 57,624 64,405 19,081 2,303 5,199 ........................31 1973 153,559 109,277 6,455 6,064 20,926 957 759 3,019 6,102 174,788 58,667 82,805 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 58,504 83,151 22,453 3,851 7,352 ........................11 152,923 110,686 6,373 6,389 18,729 795 918 3,097 5,936 175,340 58,148 82,500 22,904 3,711 7,370 ........................18 151,302 107,715 6,215 7,399 19,241 726 953 3,138 5,915 176,056 58,090 82,998 23,132 3,682 7,462 ........................25 156,704109,067 7,504 7,447 21,021 732 958 3,436 6,539 176,383 58,093 83,266 23,016 3,754 7,602 .............May 2* 146,599 104,667 6,343 5,701 19,271 732 921 3,223 5,741 178,321 58,250 84,769 23,079 3,866 7,705 ........................9* 153,164109,203 6,919 3,956 21,930 687 867 3,326 6,276 178,862 58,185 85,383 23,024 3,863 7,754 ........................16* 145,377 104,477 6,052 3,942 19,527 713 918 3,210 6,538 179,929 58,260 86,078 23,057 4,068 7,764 ........................23* 150,504109,214 6,561 2,891 20,344 723 962 3,328 6,481 180,341 58,219 86,310 22,895 4,083 7,998 ........................30* New York City 1972 39,713 22,811 502 2,004 8,663 396 591 1,773 2,973 24,937 5,726 12,970 2,100 1,046 2,989 .............May 3 39,074 21,494 439 1,439 9,169 365 738 1,740 3,690 24,987 5.754 13,009 2,101 1,078 2.941 ........................10 38,817 22,225 443 1,628 8,788 342 659 1,842 2,890 24,957 5,751 13,031 2,022 1,105 2,950 ........................17 38,614 21,985 378 1,146 8,711 328 597 1,865 3,604 25,086 5.755 13,110 2,032 1,135 2,954 ........................24 40,908 23,546 426 972 9,593 369 563 2,090 3,349 25,064 5,749 13,215 1,927 1,132 2.942 ........................31 1973 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 42,444 23,898 560 1,583 9,577 375 811 2,502 3,138 31,598 5.356 18,245 2,010 2,203 3,675 .............May 2* 38,128 22,068 363 1,063 8,673 374 772 2,242 2,573 31,871 5.356 18,359 2,070 2,208 3,768 ........................ 9* 41,353 23,163 484 743 10,603 344 718 2,338 2,960 31,978 5,361 18,341 2,154 2,174 3,840 ........................16* 39,133 21,983 344 671 9,151 392 763 2,291 3,538 32,241 5,350 18,464 2,077 2,379 3,862 ........................23* 39,969 23,648 404 493 8,842 363 797 2,314 3,108 32,574 5,345 18,594 2,072 2,397 4,050 ........................30* 1 Outside New York City 1972 108,789 78,725 6,663 6,610 12,031 342 130 792 3,496 122,176 51,568 49,628 17,310 1,064 2,235 .............May 3 104,777 77,759 6,261 5,099 11,104 332 146 892 3,184 122,533 51,647 49,831 17,332 1,127 2,216 ........................10 108,532 80,066 6,163 5,885 11,862 313 139 811 3,293 123,167 51,772 50,292 17,337 1,159 2,223 ........................17 103,079 77,246 5,975 4,646 10,968 290 148 792 3,014 123,865 51,835 50,826 17,396 1,175 2,254 ........................24 109,268 81,754 6,774 4,055 11,948 329 160 836 3,412 124,017 51,875 51,190 17,154 1,171 2,257 ........................31 1973 113,304 85,743 5,899 4,738 11,707 395 143 908 3,771 142,647 53,208 64,150 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 53,073 64,553 20,194 1,547 3,753 ........................11 113,508 87,344 5,891 4,654 10,663 371 146 929 3,510 143,978 52,759 64,439 20,885 1,524 3,770 ........................18 110,963 84,530 5,926 5,728 10,166 348 153 927 3,185 144,526 52,718 64,799 21,098 1,541 3,783 ........................25 114,260 85,169 6,944 5,864 11,444 357 147 934 3,401 144,785 52,737 65,021 21,006 1,551 3,927 .............May 2* 108,471 82,599 5,980 4,638 10,598 358 149 981 3,168 146,450 52,894 66,410 21,009 1,658 3,937 ........................ 9* 111,811 86,040 6,435 3,213 11,327 343 149 988 3,316 146,884 52,824 67,042 20,870 1.689 3,914 ........................16* 106,244 82,494 5,708 3,271 10,376 321 155 919 3,000 147,688 52,910 67,614 20,980 1.689 3,902 ........................23* 110,535 85,566 6,157 2,398 11,502 360 165 1,014 3,373 147,767 52,874 67,716 20,823 1,686 3,948 ........................30* For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ JUNE 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits11 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc. 8 Loans ities counts (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed i o Total to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1972 May 3...................... 26,683 446 1,141 15,889 4,143 28,009 199,546 280,726 88,996 34,306 20,949 13,357 1,240 10...................... 27,416 477 1,119 15,476 4,146 28,033 199,430 280,775 88,654 34,611 21,194 13,417 1,323 1 7 28,362 181 1,089 15,882 4,137 27,972 198,955 280,376 89,061 34,927 21,553 13,374 1,544 2 4 27,198 292 1,238 15,712 4,145 27,981 198,422 279,566 88,593 35,470 21,947 13,523 1,599 31...................... 27,209 1,516 1,254 15,481 4,154 28,187 199,954 281,113 90,922 35,498 22,090 13,408 1,465 1973 Apr. 4...................... 34,415 716 2,299 16,273 4,379 30,1 239,438 319.627 97,678 55,654 36,488 19,166 1,011 11...................... 35,459 907 2,468 16,713 4,398 30,193 240,051 320,503 99,938 56,588 36,930 19,658 1,209 1 8 36,375 2,722 2,742 16,742 4,401 30,087 241,056 320.627 99,244 55,609 36,355 19,254 1,193 2 5 36,006 1,052 2,907 17,267 4,406 30,123 241,987 321,654 96,590 56,192 36,854 19,338 1,123 May 2*.................... 34,513 454 2,891 17,082 4,430 30,353 242,960 322,578 97,246 56,531 37,073 19,458 1,238 9 p............................ 36,592 2,359 2,985 16,311 4,427 30,368 243,267 322,710 94,896 57,917 38,128 19,789 1,073 16*.................... 36,836 2,002 3,082 17,574 4,434 30,268 245,026 323,600 94,915 58,521 38,659 19,862 1,721 23*.................... 37,315 935 3,002 17,906 4,437 30,310 244,520 322,918 94,997 59,426 39,221 20,205 1,490 30*.................... 36,471 1,263 3,205 17,200 4,459 30,201 246,068 325,581 95,919 59,705 39,214 20,491 1,345 New York City 1972 May 3... 5,803 417 106 6,009 1,211 7,095 46,285 59,917 18,841 12,134 7,838 4,296 878 10... 6,625 325 93 5,817 1,212 7,100 45,631 59,639 17,585 12,180 7,915 4,265 897 17... 7,812 150 102 6,050 1,213 7,069 45,205 59,216 18,247 12,193 8,061 4,132 1,164 24. . . 6,785 276 259 5,960 1,216 7,056 45,065 59,018 18,028 12,341 8,164 4,177 1,227 31. . . 6,986 254 334 5,631 1,217 7,136 45,691 59,450 18,560 12,199 8,119 4,080 1,025 1973 Apr. 4. 7,360 924 6,407 1,236 7,667 55,479 68,271 20,707 19,218 13,105 6,113 638 11. 7,738 986 6,488 1,256 7,656 54,824 67,884 21,015 19,414 13,065 6,349 848 18. 8,406 800 1,242 6,424 1,260 7.607 54,684 67,319 21,099 18,554 12,560 5,994 909 25. 7,887 1,383 6,779 1,264 7.608 54,512 66,947 20,251 18,711 12,724 5,987 869 May 2 *. 6,723 1,254 6,371 1,269 7,681 55,244 67,498 21,056 18,694 12,667 6,027 958 9*. 8,107 1,215 1,320 5,918 1.274 7,679 55,625 67,659 19,440 18,873 12,726 6,147 793 16 p. 8,869 623 1,392 6,827 1.275 7.665 56,477 68,588 19,062 18,980 12,753 6,227 1,438 23 p. 8,733 15 1,326 7,058 1.275 7.665 55,337 67,482 19,782 19,272 12,905 6,367 1,127 30*. 8,067 15 1,540 6,350 1.275 7,652 55,999 68,520 20,108 19,487 12,898 6,589 972 Outside New York City 1972 May 3... 20,880 29 1,035 9,880 2,932 20,914 153,261 220,809 70,155 22,172 13,111 9,061 362 10... 20,791 152 1,026 9,659 2,934 20,933 153,799 221,136 71,069 22,431 13,279 9,152 426 17.. . 20,550 31 987 9,832 2,924 20,903 153,750 221,160 70,814 22,734 13,492 9,242 380 24. . . 20,413 16 979 9,752 2,929 20,925 153,357 220,548 70,565 23,129 13,783 9,346 372 31 . .. 20,223 1,262 920 9,850 2,937 21,051 154,263 221,663 72,362 23,299 13,971 9,328 440 1973 Apr. 4. 27,055 716 1,375 9,866 3,143 22,521 183,959 251,356 76,971 36,436 23,383 13,053 373 11. 27,721 907 1,482 10,225 3,142 22,537 185,227 252,619 78,923 37,174 23,865 13,309 361 18. 27,969 1,922 1,500 10,318 3.141 22,480 186,372 253,308 78,145 37,055 23,795 13,260 284 25. 28,119 1,052 1,524 10,488 3.142 22,515 187,475 254,707 76,339 37,481 24,130 13,351 254 May 2*. 27,790 454 1,637 10,711 3.161 22,672 187,716 255,080 76,190 37,837 24,406 13,431 280 9*. 28,485 1,144 1.665 10,393 3,153 22,689 187,642 255,051 75,456 39,044 25,402 13,642 280 16*. 27,967 1,379 1,690 10,747 3,159 22,603 188,549 255,012 75,853 39,541 25,906 13,635 283 23*. 28,582 920 1,676 10,848 3.162 22,645 189,183 255,436 75,215 40,154 26.316 13,838 363 30*. 28,404 1,248 1.665 10,850 3,184 22,549 190,069 257,061 75,811 40,218 26.316 13,902 373 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. i° All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. • Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 1 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1973 1973 1973 1972 1972 Industry May May May May May 2nd 1st . 30 23 16 9 2 May Apr. Mar. I IV III half half Durable goods manufacturing: Primary metals................................. 2,023 2,038 2,044 2,103 2,119 -110 -7 21 122 20 -99 -79 88 Machinery......................................... 5,738 5,844 5,812 5,783 5,742 7 320 378 808 496 -101 395 -172 Transportation equipment.............. 2,179 2,194 2,175 2,179 2,186 -32 85 -44 32 -173 -85 -258 -310 Other fabricated metal products... 2,160 2,183 2,187 2,168 2,158 52 113 161 236 -24 81 57 -14 Other durable goods........................ 3,645 3,664 3,658 3,645 3,610 41 151 258 549 -13 82 69 340 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 3,370 3,374 3,371 3,406 3,437 -209 -39 129 171 640 187 827 -273 Textiles, apparel, and leather.......... 3,257 3,295 3,322 3,324 3,248 11 97 206 455 -351 185 -166 567 Petroleum refining........................... 1,211 1,214 1,225 1,169 1,198 9 7 117 218 10 -24 -14 -183 2,609 2,610 2,613 2,632 2,671 -82 88 281 746 -9 -253 -262 -135 Other nondurable goods................. 2,008 2,003 1,989 1,980 1,962 64 47 83 203 -65 95 30 -158 Mining, including crude petroleum and natural gas........................... 3,970 3,981 3,952 3,911 3,934 -23 33 121 331 -33 58 25 -203 Trade: Commodity dealers................. 1,406 1,466 1,506 1,557 1,588 -225 -226 -178 63 481 141 622 -504 5,143 5,149 5,103 5,181 5,119 30 75 122 384 61 155 216 5 Retail........................................ 5,959 5,970 5,989 5,729 5,757 138 186 345 635 166 307 473 405 Transportation..................................... 5,750 5,759 5,736 5,680 5,684 134 15 -24 11 235 -277 -42 -14 Communication................................... 2,142 2,124 2,127 2,161 2,293 -35 139 -73 179 147 277 424 121 Other public utilities........................... 4,266 4,239 4,187 4,185 4,231 220 169 -31 291 531 408 939 -79 Construction......................................... 5,395 5,389 5,350 5,272 5,190 238 189 113 304 38 326 364 483 Services................................................. 9,891 9,883 9,891 9,850 9,870 65 152 341 542 558 -64 494 764 All other domestic loans..................... 7,464 7,423 7,435 7,344 7,353 345 312 319 972 168 71 239 -58 Bankers' acceptances........................... 1,318 1,172 1,202 1,222 1,104 174 -177 66 -230 302 -202 100 -843 Foreign commercial and industrial loans.............................................. 4,440 4,464 4,470 4,402 4,385 107 -127 448 580 414 77 491 164 Total classified loans........................... 85,344 85,438 85,344 84,883 84,839 919 1,602 3,159 7,602 3,599 1,345 4,944 -9 Total commercial and industrial loans of large commercial banks*........ *102,871*103,005*102,937*102,468*102,487 972 2,026 3,612 8,770 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 May Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. 2nd 30 25 28 28 31 27 29 25 27 I IV III II half Durable goods manufactur- Primary metals................... 1,314 1,315 1,335 1,307 1,336 1,268 1,278 1,282 1,303 67 -35 -67 27 -102 Machinery.......................... 2,560 2,555 2,313 2,305 2,271 2,154 2,034 1,907 1,905 159 249 -49 -113 200 Transportation equipment. 1,168 1,180 1,174 1,217 1,246 1,205 1,256 1,201 1,307 -31 -102 -52 -133 -154 Other fabricated metal products.......................... 833 842 785 765 751 720 707 680 679 65 41 4 -11 45 OtJier durable goods.......... 1,592 1,614 1,520 1,464 1,348 1,239 1,196 1,193 1,188 281 51 6 37 57 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 1,372 1,355 1,350 1,325 1,304 1,234 1,191 1,182 1,079 116 155 153 19 308 Textiles, apparel, and leather............................. 942 978 892 843 781 723 699 731 711 169 12 57 15 69 Petroleum refining............. 885 858 842 778 781 698 681 658 679 144 19 -15 -63 4 Chemicals and rubber....... 1,441 1,459 1,479 1,439 1,359 1,153 1,143 1,190 1,159 326 -6 -65 10 -71 Other nondurable goods.. 1,063 1,108 1,100 1,062 1,005 894 913 939 918 206 -24 46 -106 22 Mining, including crude pe­ troleum and natural gas. 2,908 2,895 2,872 2,823 2,896 2,685 2,726 2,748 2,679 187 6 12 -205 18 Trade: Commodity dealers.. 139 136 150 131 132 121 121 123 107 29 14 -2 -17 12 Other wholesale........ 1,051 1,068 1,055 1,008 982 894 880 876 864 161 30 -19 -22 11 Retail......................... 1,979 1,947 1,823 1,763 1,698 1,592 1,588 1,497 1,444 231 148 146 —44 294 Transportation....................... 4,161 4,202 4,234 4,285 4,257 4,180 4,070 4,078 4,086 54 94 -219 -69 -125 Communication..................... 760 738 746 770 755 682 549 537 561 64 121 64 63 185 Other public utilities.............. 2,328 2,343 2,234 2,245 2,060 1,975 1,825 1,759 1,688 259 287 282 269 569 Construction.......................... 1,853 1,800 1,709 1,665 1,661 1,558 1,528 1,520 1,550 151 8 142 -13 150 Services................................... 4,401 4,417 4,339 4,184 4,120 4,026 3,999 3,951 3,862 313 164 143 45 307 All other domestic loans .... 2,180 2,061 1,871 1,785 1,711 1,597 1,532 1,459 1,554 274 43 131 -260 174 Foreign commercial and in­ dustrial loans.................. 2,647 2,410 2,567 2,327 2,355 2,366 2,264 2,177 2,143 201 223 105 94 328 Total loans............................. *37,577*37,281 36,390 35,491 34,809 32,964 32,180 31,688 31,466 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 a JUNE 1973 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, F b i u n s a i n n c e i s a s l No b n u f s i i n n a e n s c s ial Consumer Foreign o A th l e l r IPC All commercial banks: 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 June.............................................................................. 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 Dec................................................................................. 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar................................................................................. 18.6 102.8 65.1 1.7 11.8 200.0 Weekly reporting banks: 1971—Dec................................................................................. 14.4 58.6 24.6 1.2 5.9 104.8 1972 Apr.................................................................................. 14.3 56.9 27.0 1.2 5.9 105.4 13.7 56.2 25.4 1.2 5.7 102.1 14.1 57.3 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................................................................................. 14.4 59.0 26.5 1.6 6.4 107.9 Apr*............................................................................... 14.3 59.4 28.6 1.8 6.4 110.4 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 *............ 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 1 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-l 8, deposits of more than $400 million), as described in the Bulletin for A-l 9, and A-24-A-28 (consumer instalment loans), and in the table at the July 1972, p. 626. Categories shown here as “Other large” and “All other bottom of p. A-l 7. These changes resulted from a change in Federal member” parallel the previous “Reserve City” (other than in New York Reserve regulations. See June 1966 Bulletin, p. 808. City and the City of Chicago) and “Country” categories, respectively These deposits have not been deducted from “Time deposits” and (hence the series are continuous over time). “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

JUNE 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—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 May 2.. 3,543 2,281 1,262 1,819 270 1,549 9.. 3,497 2,232 1.265 1,818 270 1,548 16.. 3,595 2,330 1.265 1,818 297 1,521 23.. 3,538 2,282 1,256 1,752 292 1,460 30.. 3,589 2,231 1,358 1,773 308 1,465 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other i related Other2 Own Bills Own eign United United bills bought acct. corr. States States 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 197 0 31,765 409 12,262 1,940 17,154 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971 ►.... 31,103 495 10,923 1,478 18,207 7,* 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972—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 Apr. 34,404 1,044 8,290 2,767 22,303 6,713 2,068 1,641 427 136 344 4.165 1,996 2,359 2,359 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 a JUNE 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Rate Effective date Rate 1956—Apr. 13........... 334 1970—Mar. 25 1972—Feb. 28 4*MVi- 1972—Oct. 2........... 5%«-5% Aug. 4 Sept. 21 m 434- 4........... 5Vi-5%« Nov. 12 m Mar. 13 41A-434. 11........... 534. 1957—Aug. 6........... 4% 23 i 23 434. 16........... 534.-57/8 Dec. 22 ey4 27 43/4--47/s-5 1958—Jan. 4 Nov. 6........... 534. Apr. 3% 1971—Jan. 6 6% Apr. 3, 43/4.-5 20............ 534.-5% Sept. 4 15, 6% 5 5- 18, 6 17, 5--514 Dec. 26............ 534.-6 1959—May 4 Vi Feb. 16, 53A 27........... 534-6. Sept. 5 Mar. 11, 5V4-5% May 1, 5.-5 V6-5 !4 19 5% 30, 5. 1973—Jan. 4........... 6. 1960—Aug. 23........... 4 Vi Apr. 23, 5%-5% June 12, 5.-51/8 Feb. 2........... 6.-614 1965—Dec. 5 May 11 5% 26, 5-51/4. 14............ 6. July 6, 5%-6 26............ 6.-614 1966—Mar. 5V4 7, 6 July 3 51/4.-53/8 27............ 614. June 29........... 534 Oct. 20 534 10 514.-53/8- Aug. 6 51/2 Mar. 19........... 614.-634 Nov. 1 5%>-5% 17 514.-51/2 26........... 6i/2. 1967—Jan. 26-27.... 5 Vi-5 % 4, 51/2«-55/8 31 514.-53/8- Mar. 51/2 8, 5%. April 18........... 6i/2-634 . Nov. 6 22, 5%-5%. Aug. 11 514.-53/8 19........... 63/4. 29, 5%-5%. 14 514. 1968—Apr. 61/2 21 514.-53/8 634.-7 Sept. 25........... 6-61/4 Dec. 6, 51/4-53/8- 25 514.-53/8- 7........... 7. Nov. 13........... 61/4 5%. 5% 24........... 7.-714 Dec. 2........... 6% 27, 5i4-5i/2- 29 51/4-53/8- 25........... 7-714. 18........... 634 31 51/4- 5%« 1969—Jan. 7 1972—Jan. 3 5-5i/8-51/4» Sept. 4 5%-5%. Mar. 17........... 71/2 17, 434-5-51/4- 5 5%- June 8 Vi 24 45/8-434-5- 11 5%»-5% 31 4i/2-43/4._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 rate,” this table shows only the “large-business prime rate.” which is the 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 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

JUNE 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 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)5 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—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 May.............. 7.26 7.27 6.85 7.15 7.84 6.348 6.36 6.615 6.62 6.63 6.83 6.78 Week ending— 1973—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 May 5........ 7.13 7.13 6.75 7.00 7.43 6.278 6.24 6.575 6.56 6.60 6.74 6.79 12....... 7.13 7.13 6.75 7.00 7.60 6.136 6.07 6.431 6.42 6.49 6.68 6.76 19....... 7.23 7.28 6.75 7.13 7.81 6.179 6.22 6.456 6.48 6.49 6.72 6.76 26....... 7.38 7.38 6.95 7.33 8.06 6.452 6.56 6.748 6.78 6.78 6.98 6.82 June 2........ 7.53 7.53 7.13 7.41 7.95 6.694 6.91 6.864 6.99 6.93 7.13 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 Treasury bills are the revised series described on p. 4 Except for new bill issues, yields are averages computed from daily 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 □ JUNE 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend / Earnings / ratine group nrice ratio price ratio Period j Total 1 States ( t l e o r n m g ) ­ Total i Aaa Baa New ce R n c t - ly Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Comissue offered ferred mon Seasoned issues 1963................... 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964................... 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965................... 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966................... 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967................... 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968................... 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 1969................... 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 1970................... 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.51 1971................... 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 1972................... 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—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 5.46 1973—jan.......... 5.94 5.13 4.90 5.39 7.38 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 Feb......... 6.14 5.17 4.95 5.44 7.40 7.57 7.22 7.97 7.34 7.92 7.61 6.91 2.80 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 May........ 6.22 5.13 4.90 5.41 7.51 7.50 7.62 7.29 8.06 7.41 8.01 7.63 7.13 3.01 Week ending— 1973—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 May 5.. 6.15 5.10 4.85 5.35 7.40 7.42 7.59 7.26 8.03 7.38 7.97 7.62 7.12 2.96 12.. 6.15 5.10 4.85 5.35 7.45 7.60 7.26 8.03 7.39 8.00 7.61 7.01 2.92 19.. 6.21 5.13 4.85 5.40 7.45 7.50 7.61 7.29 8.04 7.40 7.99 7.61 7.12 3.03 26.. 6.31 5.19 4.95 5.45 7.61 7.55 7.64 7.32 8.08 7.43 8.03 7.64 7.22 3.10 June 2.. 6.31 5.24 5.00 5.50 7.55 7.60 7.67 7.35 8.12 7.45 8.06 7.67 7.20 3.02 Number of issues 2............ 11 20 5 5 121 20 30 41 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ only, based on Thurs. figures; from Moody’s Investor Service. (3) Cor­ arately. Because of a limited number of suitable issues, the number porate: Rates for “New issue” and “Recently offered” Aaa utility bonds of corporate bonds in some groups has varied somewhat. As of Dec. are weekly averages compiled by the Board of Governors of the Federal 23, 1967, there is no longer an Aaa-rated railroad bond series. Reserve System. Rates for seasoned issues are averages of daily figures 2 Number of issues varies over time; figures shown reflect most recent from Moody’s Investors Service. count. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; eamings/price ratios are as of end of period. Note.—Annual yields are averages of monthly or quarterly data. Preferred stock ratio is based on eight median yields for a sample of non- Bonds: Monthly and weekly yields are computed as follows: (1) U.S. callable issues—12 industrial and 2 public utility; common stock ratios Govt.: Averages of daily figures for bonds maturing or callable in 10 years on the 500 stocks in the price index. Quarterly earnings are seasonally or more; from Treasury Dept. (2) State and local govt.: General obligations adjusted at annual rates. 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-34 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 Vi hours per day, or 27 Vi 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 22Vi; 1970—Jan. 2-May 1, 25. with earlier data. See also the table on Home-Mortgage Yields, p. A-53. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 Ex­ change ( G t l e U o o r . n m S v g t . ) ­ . S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l * NYSE AMEX 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1,570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 . 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 197 1 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4,234 197 2 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—May... 68.59 84.6 65.3 107.65 120.16 45.06 54.94 59.82 65.30 53.43 37.04 78.32 27.63 15,270 4,184 June 69.05 83.4 65.6 108.01 120.84 43.66 53.73 59.87 65.76 51.26 36.32 76.59 27.47 14,298 3,872 July___ 69.23 83.1 65.6 107.21 119.98 42.00 53.47 59.21 65.13 48.45 36.02 75.41 26.97 14,450 3,546 Aug___ 69.55 84.2 65.8 111.01 124.35 43.28 54.66 61.07 67.25 48.97 36.87 78.27 26.85 15,522 3,807 Sept....... 68.06 83.4 65.6 109.39 122.33 42.37 55.36 60.05 65.72 46.49 37.82 78.41 25.23 12,314 2.774 Oct........ 68.09 85.3 65.5 109.56 122.39 41.20 56.66 59.99 65.35 44.95 38.93 79.64 25.87 14,427 3,014 Nov....... 69.87 87.1 65.9 115.05 128.29 42.41 61.16 62.99 68.29 47.50 41.81 84.57 26.18 20,282 4,286 Dec. 68.68 87.1 66.05 117.50 131.08 45.23 61.73 64.26 69.96 48.44 42.28 83.45 26.50 18,146 4.775 1973—Ja...........n 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 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 May 63.43 86.1 64.7 107.22 119.95 36.14 55.43 56.74 62.22 36.66 39.01 65.33 23.12 15,329 3,043 Week ending— 1973—May 5, 64.05 86.5 64.9 108.74 121.77 37.60 55.30 57.61 63.22 38.50 39.09 66.74 24.53 16,370 2,962 12, 64.00 86.5 64.8 109.99 123.13 37.80 56.14 58.31 63.98 38.43 39.67 67.48 24.63 13,757 2,480 19. 63.56 86.2 64.6 105.66 118.07 35.78 55.44 56.01 61.27 36.14 39.07 64.60 23.12 15,193 3,052 26, 62.69 85.5 64.6 105.09 117.52 34.52 54.90 55.44 60.79 34.85 38.44 63.18 22.53 18,050 4,043 June 2, 62.67 85.5 64.6 105.58 118.09 34.41 55.01 55.76 61.20 34.71 38.47 64.01 22.62 11,405 2,388 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 n c e t r ) t ­ c F c h e ( e a p e n r e s t g r ) e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e c i n t o r e ) / ( ' t d h c o p o P h l r u u l i a a c s 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 h a L m o o l u o l o a s 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—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.............. 7.52 1.03 25.7 76.6 35.8 27.0 7.53 .94 23.2 75.2 30.5 22.6 Feb............. 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.r.......... 7.51 1.09 26.6 78.4 36.7 28.3 7.54 .95 23.3 76.9 29.3 22.0 Apr.r.......... 7.53 1.11 26.6 78.2 36.9 28.2 7.55 .96 23.9 77.3 30.1 22.8 May............ 7.54 1.13 26.5 78.6 36.2 27.9 7.62 .96 23.9 77.4 30.0 22.6 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT □ JUNE 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—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 Apr.............. 8,165 7,293 872 7,040 804 232 49 21 19 1,969 1,482 389 1,536 1 Margin credit includes all credit extended to purchase or carry stocks Regulations T and U permit special loan values for convertible bonds and or related equity instruments and secured at least in part by stock (see stock acquired through exercise of subscription rights. Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data 3 Nonmargin stocks are those not listed on a national securities exchange for member firms of the New York Stock Exchange. June data for banks and not included on the Federal Reserve System’s list of Over the Counter are universe totals; all other data for banks represent estimates for all margin stocks. At banks, loans to purchase or carry nonmargin stocks are commercial banks based on reports by a reporting sample, which ac­ unregulated; at brokers, such stocks have no loan value. counted for 60 per cent of security credit outstanding at banks on June 30, 4 Includes loans to purchase or carry margin stock if these are unsecured 1971. or secured entirely by unrestricted collateral (see Dec. 1970 Bulletin). 2 In addition to assigning a current loan value to margin stock generally, 5 Free credit balances are in accounts with no unfulfilled commitments to the brokers and are subject to withdrawal by customers on demand. EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts debt Net in debit status Total E pe n r d i o o d f l ( d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period c st r a e t d u i s t 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f b m d a i o l l a l l n l io a c r n e s s lars) l 1972—Apr....................... 35.5 56.5 8.0 5,920 1972—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 June..................... 34.3 56.3 9.4 5,770 June. 7,510 6.0 9.1 15.9 33.9 22.0 13.2 34.4 55.2 11.4 5,930 July.. 7,660 5.5 8.3 14.6 30.8 24.9 15.7 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 35.3 46.9 18.0 5,660 Apr.. 7,040 4.8 7.3 13.4 19.8 22.4 32.4 Note.—Special miscellaneous accounts contain credit balances that i See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 o SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r l g i T e a a t n b o i n e e t i d s a l r i a l ­ l D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity govt. other1 reserve accts. 3 or 3-6 6-9 Over Total less 9 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 19724............. 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—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 r.. 64,414 3,444 3,412 627 20,872 1,333 1,962 96,064 87,148 2,252 6,664 1,612 925 540 1,603 4,679 Julyr.. 64,853 3,642 3,392 675 21,209 1,300 1,963 97,034 87,838 2,533 6,663 1,579 956 557 1,629 4,721 Aug.r . 65,408 3,512 3,369 786 21,405 1,329 1,958 97,766 88,254 2,778 6,734 1,572 824 549 1,647 4,593 Sept.r. 65,901 3,604 3,408 822 21,569 1,362 1,834 98,500 89,289 2,428 6,784 1,740 716 583 1,637 4,675 Oct.r.. 66,373 3,482 3,462 844 21,513 1,304 2,011 98,990 89,677 2,510 6,803 1,667 718 617 1,660 4,662 Nov. r. 66,891 3,507 3,434 871 21,664 1,323 2,014 99,704 90,228 2,607 6,870 1,624 753 631 1,658 4,666 Dec.r.. 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—Jan.... 68,021 3,624 3,489 935 22,190 1,319 2,055 101,632 92,398 2,221 7,014 1,569 915 688 1,541 4,712 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 Mar.. . 68,920 3,970 3,458 1,028 22,509 1,576 2,058 103,518 94,095 2,285 7,139 1,816 886 826 1,355 4,882 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross-oforganizations 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 INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets Statement value: 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 1972- 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 11,025 227,893 11,083 4,476 3,373 3,234 105,249 82,293 22,956 75,469 7,034 17,360 11,698 May............................. 229,336 11,128 4,516 3,366 3,246 106,434 83,060 23,374 75,493 7,094 17,441 11,746 June............................. 230,182 11,105 4,394 3,355 3,356 107,074 83,382 23,692 75,547 7,149 17,528 11,779 July.............................. 231,586 11,075 4,372 3,356 3,347 108,236 84,539 23,697 75,626 7,185 17,605 11,859 Aug.............................. 233,337 11,086 4,389 3,351 3,346 109,728 >5,187 24,541 75,723 7,235 17,689 11,876 Sept.............................. 234,455 11,125 4,385 3,350 3,390 110,300 85,912 24,388 75,813 7,245 17,773 12,199 235,972 11,132 4,396 3,347 3,389 111,616 86,874 24,742 75,952 7,229 17,854 12,189 Nov.............................. 237,971 11,193 4,459 3,356 3,378 113,066 87,425 25,641 76,207 7,272 17,922 12,311 Dec.............................. 239,407 11,080 4,333 3,522 3,406 112,980 86,605 26,375 77,319 7,310 17,998 12,720 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 □ JUNE 1973 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Assets Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r 1 t t ­ ­ Cash 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 wo N r e th t 3 m ro B o w n o e e r­ d y4 p L ro o i c a n e n s s s Other ou a p t t s e e t r a n i n o d d d o i 5 n f g 1967.................................. 121,805 9,180 3,442 7,788 143,534 124,493 9,916 4,775 2,257 2,093 3,042 1968.................................. 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 1969.................................. 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 1970.................................. 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 1971.................................. 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 1972—Jan........................ 175,838 22,476 10,926 209,240 177,738 13,656 8,053 4,874 4,919 7,657 Feb........................ 177,614 23,511 11,144 212,269 180,556 14,517 7,275 4,853 5,068 8,840 Mar....................... 180,145 23,'948 11,291 215,384 184,843 14,119 6,759 5,077 4,586 10,079 Apr........................ 182,711 24,000 11,440 218,151 186,617 14,558 6,847 5,283 4,846 11,081 May....................... 185,431 24,526 11,691 221,648 188,826 15,050 6,802 5,608 5,362 12,064 June...................... 188,884 24,058 11,865 224,807 192,564 14,452 7,273 5,887 4,631 11,928 July....................... 191,642 24,497 11,942 228,081 194,770 14,900 7,216 5,997 5,198 12,147 Aug....................... 194,955 24,321 12,125 231,401 196,571 15,432 7,512 6,100 5,786 12,143 Sept....................... 197,881 24,102 12,277 234,260 199,966 14,991 8,080 6,119 5,104 12,175 Oct........................ 200,554 24,648 12,457 237,659 202,012 15,485 8,327 6,086 5,749 12,226 Nov....................... 203,266 24,750 12,689 240,705 203,889 15,992 8,503 6,067 6,254 12,274 Dec........................ 206,387 24,491 12,693 243,571 207,305 15,326 9,847 6,225 4,868 11,578 1973—Jan........................ «208,132 6 23,460 615,660 247,252 210,589 15,557 9,171 6,076 5,859 12,469 Feb........................ 210,260 24,220 16,214 250,694 212,493 15,925 9,415 6,095 6,766 13,538 Mar....................... 213,259 24,019 17,104 254,382 216,195 15,825 9,958 6,326 6,078 14,508 Apr.?.................... 216,250 23,947 17,622 257,819 217,061 16,134 11,329 6,550 6,745 14,981 1 Investment securities included U.S. Govt, securities only through 1967. 6 Beginning Jan. 1973, participation certificates guaranteed by the Beginning 1968 the total reflects liquid assets and other investment se­ Federal Home Loan Mortgage Corporation, loans and notes insured by curities. Included are U.S. Govt, obligations, Federal agency securities, the Farmers Home Administration and certain other Government- State and local govt, securities, time deposits at banks, and miscellaneous insured mortgage-type investments, previously included in mortgage securities, except stock of the Federal Home Loan Bank Board. Com­ loans, are included in other assets. The effect of this change was to reduce pensating changes have been made in “Other assets.” the mortgage total by about $0.6 billion. 2 Includes other loans, stock in the Federal home loan banks, other Also, GNMA-guaranteed, mortgage-backed securities of the pass­ investments, real estate owned and sold on contract, and office buildings through type, previously included in cash and investment securities are and fixtures. See also notes 1, 5, and 6. included in other assets. These amounted to about $2.4 billion at the end 3 Includes net undistributed income, which is accrued by most, but not of 1972. all, associations. 4 Consists of advances from FHLBB and other borrowing. Note.—FHLBB data; figures are estimates for all savings and loan 5 Data comparable with those shown for mutual savings banks (on assns. in the United States. Data are based on monthly reports of insured preceding page) except that figures for loans in process are not included assns. and annual reports of noninsured assns. Data for current and above but are included in the figures for mutual savings banks. 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 t n e e o d m c rs ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h ts B n a o o n n te d d s s M po b d e s e e m i r ­ ts ­ C s a to p c it k al M l g o ( a A a o g n r ) e s t­ D n t a u e ( o L n b r t e e d ) e s s n­ c L a o ( t o o i t A v o a p ) e n e s s r­ D t e u (L b re e ) s n­ c L o a d ( o A u n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1967. 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968, 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969, 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970. 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972-- 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 Apr... 9,429 2,087 111 8,415 1,143 1,981 20,791 20,056 2,859 2,465 6,555 6,314 9,767 8,836 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

JUNE 1973 □ FEDERALLY SPONSORED CREDIT AGENC A i ISSUES OF FEDERALLY SPONSORED AGENCIES, APRIL 30, 1973 Amount Cou­ Amount morn (millions Agency, and date of issue pon (millions Agency, and date of issue Lillioi of dollars) and maturity rate of dollars) and maturity lolla Federal National Mortgage Banks for cooperatives Association—Cont. Debentures: 400 Debentures: 11/1/72-5/1/73.. 5.45 336 450 6/12/61 -6/12/73........ 4% 146 12/4/72 - 6/4/73.. 5.30 481 600 7/10/70-6/12/73........ 8.35 350 1/2/73 -7/2/73... 5.60 443 300 7/12/70-6/12/73........ 6.75 550 2/1/73 -8/1/73... 5.95 569 250 3/10/70-9/10/73........ 8.10 300 10/1/70 - 10/1/73 7.30 100 300 6/10/71 -9/10/73........ 6.13 350 4/2/73 - 10/1/73.. 6.95 536 300 12/10/70 - 12/10/73. . 5.75 500 700 8/10/71 - 12/10/73.... 7.15 500 178 12/11/72 - 12/10/73 .. 6.00 200 Federal intermediate 400 12/1/71 - 3/11/74. 5.45 400 credit banks 222 4/10/70 - 3/11/74.... 7.75 350 Debentures: 250 8/5/70 - 6/10/74....... 7.90 400 8/1/72-5/1/73. 5.05 563 400 11/10/71 -6/10/74.... 5.70 350 9/5/72 - 6/4/73. 5.00 508 265 9/10/69 - 9/10/74.... 7.85 250 10/2/72 - 7/2/73 5.60 382 300 2/10/71 - 9/10/74........ 5.65 300 9/1/70-7/2/73. 5.55 200 700 5/10/71 - 12/10/74.... 6.10 250 11/1/72-8/1/73 5.65 540 350 9/10/71 - 12/10/74.... 6.45 450 12/4/72 - 9/4/73 5.45 541 300 11/10/70 - 3/10/75... 7.55 300 1/2/73 - 10/1/73 5.70 606 200 10/12/71 - 3/10/75... 6.35 600 2/1/73 - 11/1/73 6.00 544 300 4/12/71 -6/10/75........ 5.25 500 3/1/73 - 12/3/73 6.15 529 300 10/13/70 - 9/10/75... 7.50 350 4/2/73 - 1/2/74. 7.00 661 350 3/12/73 -9/10/75........ 6.80 650 7/1/71 - 1/2/74. 6.85 212 200 3/10/72 - 12/10/75... 5.70 500 1/4/71 - 7/1/74 5.95 224 200 3/11/71 -3/10/76........ 5.65 500 5/1/72 - 1/2/75. 6.05 240 200 6/10/71 -6/10/76........ 6.70 250 1/3/72-7/1/75. 5.70 302 2/10/72-6/10/76........ 5.85 450 3/1/73 - 1/5/76. 6.65 261 11/10/71 -9/10/76.... 6.13 300 6/12/72-9/10/76........ 5.85 500 7/12/71 -12/10/76.... 7.45 300 12/11/72- 12/10/76... 6.25 500 Bonds: 2/13/62 - 2/10/77.... 4% 198 2/20/63 - 2/20/73-78. 4H 148 9/11/72- 3/10/77........ 6.30 500 1/20/70 - 7/20/73.... 8.45 198 150 12/10/70 - 6/10/77. . . 6.38 250 8/20/73 - 7/20/73..... 7.95 350 200 5/10/71 -6/10/77........ 6.50 150 4/20/70 - 10/22/73... 7.80 300 350 9/10/71-9/12/77........ 6.88 300 10/23/72 - 10/23/73... 5.80 462 140 10/12/71 - 12/11/78.. 6.75 300 7/20/72 - 1/21/74.... 5.55 450 150 6/12/72-9/10/79........ 6.40 300 2/20/72 - 2/20/74.... 155 150 12/10/71 - 12/10/79. . 6.55 350 10/20/70 - 4/22/74... 7.30 354 2/10/72 - 3/10/80........ 6.88 250 9/15/72-4/22/74........ 5.85 350 2/16/73 -7/31/80........ 5.19 1 10/21/71 - 7/27/74... 5.85 326 2/16/73 - 7/31/80........ 3.18 9 4/20/71 - 10/21/74.... 5.30 300 1/16/73 - 10/30/80.... 5.47 5 2/20/70 - 1/20/75.... 8^ 220 12/11/72 - 12/10/80... 6.60 300 4/23/73 - 1/20/75........ 7.15 300 3/14/73 - 1/15/81........ 3.58 53 4/20/65 - 4/21/75___ 4^ 200 3/14/73 - 1/15/81........ 5.48 6 2/15/72-7/21/75........ 5.70 425 1,399 6/29/72- 1/29/81........ 6.15 156 7/20/71 - 10/20/75---- 7.20 300 3/12/73 - 3/10/81........ 7.05 350 4/20/72 - 1/20/76........ 6}4 300 250 4/18/73-4/10/81........ 6.59 26 2/21/66 - 2/24/76.... 5.00 123 200 3/21/73 - 5/1/81.......... 4.50 18 1/22/73 - 4/20/76........ 6J4 373 249 3/12/73 - 5/1/81.......... 5.77 2 7/20/66 - 7/20/76___ 5^ 150 250 1/21/71 - 6/10/81.... 7.25 250 4/23/73 - 10/20/76.... 7.15 450 9/10/71 -9/10/81........ 7.25 250 10/27/71 - 10/20/77.. 6.35 300 6/28/72-5/1/82.......... 5.84 58 5/2/66 - 4/20/78........ 5^ 150 2/10/71 - 6/10/82........ 6.65 250 7/20/72 - 7/20/78 6.40 269 9/11/72-9/10/82........ 6.80 200 2/20/67- 1/22/79........ 5.00 285 3/11/71 -6/10/83........ 6.75 200 9/15/72-4/23/79........ 6.85 235 250 11/10/71 -9/12/83.... 6.75 250 10/23/72- 10/23/79... 6.80 400 53 4/12/71 -6/11/84........ 6.25 200 1/22/73 - 1/21/80........ 6.70 300 6 12/10/71 - 12/10/84. . 6.90 250 2/23/71 -4/20/81........ 6.70 224 81 3/10/72 - 3/10/92___ 7.00 200 4/20/72 - 4/20/82........ 6.90 200 200 6/12/72-6/10/92........ 7.05 200 4/23/73 -4/20/82........ 7.30 239 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 □ JUNE 1973 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays 1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing S i p ss e u c e ia s l Other balance Fiscal year: 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—Apr.............. '24,533 >■18,597 '5,937 -2,039 r—43 -1,770 -1,746 -'2,058 4,047 '1,413 '1,581 May............. 17,275 19,723 237 19,960 -2,685 2,607 272 3,527 -29 -618 -2,030 -1,617 -346 June............. 25,589 23,202 2,387 -651 -370 2,975 -628 -3,368 417 2,080 3,478 July.............. 15,207 18,591 -3,384 5,123 9 1,409 -6 3,730 -1,129 -1,810 -3,284 Aug.............. 18,213 20,581 -2,369 3,056 534 2,639 16 934 -4,012 222 -2,355 Sept.............. 22,183 18,471 3,712 -1,493 22 -1,339 -508 376 4,783 -92 604 Oct............... 14,738 20,055 -5,317 6,000 24 3,085 88 2,851 -1,786 37 717 Nov.............. 16,748 21,165 -4,418 4,301 380 -659 42 5,298 305 7 -569 Dec............... 18,972 19,721 -750 5,051 -93 1,104 -343 4,197 2,795 57 -595 1973—Jan............... 21,130 23,631 -2,501 770 18 -900 168 1,519 302 99 1,383 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 Apr............... 25,860 22,306 3,554 -1,543 -721 -56 -49 -2,159 1,220 1,164 988 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts d t O a e r p t i h o e e s s r i 5 ­ Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c i y es Sp G I e n c o v i v a e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e te s c s s ia : 3 l E p T h q u b o e b u y t l l a a d i l l c s: s c p p o G r o N i r n o v p o s v a s w o t . t e — . r - e * d issues 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—Apr.............. 1,871 9,724 136 11,732 425,304 10,991 83,034 24.681 825 327,755 40,632 May............. 2,144 7,420 136 9,700 427,912 11,263 86,561 24,652 825 327,137 40,426 June............. 2,344 7,934 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41,044 July............. 2,298 6,547 144 8,988 432,383 10,903 90,944 24,018 825 327,499 40,981 Aug.............. 1,730 3,025 222 4,976 435,439 11,437 93,616 24,002 825 328,433 41,037 Sept.............. 1,395 8,105 259 9,759 433,946 11,459 92,281 23,490 825 328,809 41,724 Oct............... 1,613 6,051 309 7,973 439,947 11,483 95,365 23,579 825 331,660 41,760 Nov............. 1,182 6,786 310 8,278 444,247 11,863 94,821 23,506 825 336,958 42,496 Dec.............. 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 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 Apr.............. 4,162 9,683 311 14,156 457,063 11,084 96,356 23,583 825 347,383 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), and FICB and banks 3 Represents non-interest-bearing public debt securities issued to the for cooperatives (both 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 that are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 it ld h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s co P r n t o a a y t l x r l ­ i e b s u a t S n i 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 . * taxes empl. Fiscal year: 196 9 187,78470,18227,25810,191 87,24938,338 1,66032,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 197 0 193,74377,41626,236 13,24090,41235,037 2,20837,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 197 1 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 197 2 208,64983,20025,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 Half year: 1971—Jan.-June 100,80839,02518,693 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 68851,15415,315 1,45922,493 165 2,437 1,77326,867 8,244 1,551 2,333 2,056 Month: 1972—Ap r r24,533 6,599 8,650 3,284 11,985 5,145 250 3,877 1,153 343 r282 *•5,654 1,091 215 372 r343 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 67011,054 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 9511,005 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—Ja............n 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........ 157,98 8,748 1,494 6,833 3,409 5,208 342 4,771 186 63 320 5,340 1,244 278 489 360 Apr......... 25,860 8,648 9,124 6,185 11,587 5.915 258 4,297 1,316 444 302 6,359 1,318 262 330 348 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 and lop. and and erans est eral nue trans­ fense search ture 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 1973r 6................. 249,796 76,435 3,341 3,061 6.064 876 12,543 3,957 10,500 93,r~~ 11,795 22,808 5,631 6,786 -8,381 1974^.................... 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—Ap r -•18,597 r6,736 265 238 -196 255 793 9 728 6,936 929 1,792 419 r —309 May.......... 19,960 7,107 268 207 126 265 713 490 1,033 6,914 973 1,784 389 -371 June.......... 23,202 9,087 487 292 120 520 1,350 505 1,429 8,703 911 1,709 497 -2,402 July........... 18,591 5,139 313 289 2,397 -821 827 529 764 6,214 884 1,695 612 -252 Aug........... 20,581 5,873 300 289 1,127 554 1,333 658 905 6,779 858 1,723 610 -409 Sept........... 18,471 5,397 198 273 102 321 1,173 408 852 6,970 832 1,899 322 -276 Oct............ 20,055 6,305 259 271 806 -16 1,056 244 800 7,688 896 1,559 463 -276 Nov........... 21,165 6,501 350 272 329 353 982 384 851 7,851 1,279 1,919 448 -353 Dec............ 19,721 6,135 221 284 -146 -40 829 414 960 7,710 989 1,809 415 72,617 -2,474 1973—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 Apr............ 22,306 6,417 237 265 368 324 793 243 788 8,058 1,114 2,120 409 1,493 -324 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, and Federal 2 Supplementary medical insurance premiums and Federal employee pay increase (excluding Department of Defense), totaling $500 million retirement contributions. for 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 that are not yet available on a monthly basis. s Consists of Government contributions for employee retirement and of interest received by trust funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES □ JUNE 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p d g u e r b b o l t s i s c 1 Total Total Bills M C a c r e k a r t e t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n r l n e d t­ ­ s Total N 3 on F i m s o s a r u r e e k i s g e t n 4 a ble b S o in a n g v d s ­ s i S ss p u e e c s ia 5 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 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—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 May 457.3 357.1 265.9 103.0 117.8 45.1 2.3 88.9 28.3 59.7 98.3 1 Includes non-interest-bearing debt (of which $620 million on May 31, 4 Nonmarketable certificates of indebtedness, notes, and bonds in the 1973, was not subject to statutory debt limitation). Treasury foreign series and foreign currency series issues. 2 Includes Treasury bonds and minor amounts of Panama Canal and 5 Held only by U.S. Govt, agencies and trust funds and the Federal postal savings bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign-currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n u n .S v c d s t i . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a a d 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 t n 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—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 Apr................ 457.1 117.9 75.5 263.7 60.1 2.5 5.7 12.3 28.7 58.9 16.5 62.1 17.0 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

JUNE 1973 □ U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 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—Mar. 31........................................................ 269,775 130,187 104,991 25,196 95,425 22,356 16,059 5,748 Apr. 30....................................................... 267,847 128,359 103,163 25,196 95,392 22,356 16,022 5,718 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—Mar. 31................................................ 20,040 1,751 554 1,197 7,207 4,992 4,592 1,498 Apr. 30................................................ 19,991 1,713 493 1,220 7,253 5,009 4,532 1,484 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 Mar. 31................................................ 74,276 40,268 33,539 6,729 28,288 4,133 1,477 110 Apr. 30................................................ 75,495 41,236 34,357 6,879 28,523 4,145 1,481 110 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—Mar. 31................................................ 175,459 88,168 70,898 17,270 59,930 13,231 9,990 4,140 Apr. 30................................................ 172,361 85,410 68,313 17,097 59,616 13,202 10,009 4,124 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—Mar. 31........................................ 47,837 14,807 7,640 7,167 28,010 4,018 928 74 Apr. 30........................................ 46,668 14,193 7,223 6,970 27,682 3,839 888 68 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—Mar. 31........................................ 2,517 503 234 269 1,231 294 352 136 Apr. 30........................................ 2,482 490 224 266 1,222 293 342 136 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—Mar. 31........................................ 5,106 828 371 457 1,188 857 1,661 574 Apr. 30........................................ 4,926 682 231 451 1,173 850 1,652 569 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—Mar. 31........................................ 5,850 4,446 3,190 1,256 1,258 85 59 1 Apr. 30........................................ 4,966 3,607 2,408 1,199 1,233 84 41 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—Mar. 31........................................ 2,838 849 496 353 1,309 388 219 74 Apr. 30........................................ 2,782 769 413 356 1,302 392 245 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—Mar. 31........................................ 11,195 6,635 5,727 908 2,103 711 1,217 529 Apr. 30........................................ 10,838 6,348 5,411 937 2,045 729 1,229 488 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—Mar. 31......................................... 100,116 60,100 53,240 6,860 24,831 6,878 5,554 2,752 Apr. 30........................................ 99,699 59,321 52,403 6,918 24,959 7,015 5,612 2,788 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,612 commercial banks, 480 mutual savings Ownership. banks, and 739 insurance companies combined; (2) about 50 per cent by Data complete for U.S. Govt, agencies and trust funds and F.R. Banks the 463 nonfinancial corporations and 487 savings and loan assns.; and but for other groups are based on Treasury Survey data. Of total mar- (3) about 70 per cent by 505 State and local govts, ketable issues held by groups, the proportion held on latest date by those “All others,” a residual, includes holdings of all those not reporting reporting in the Survey and the number of owners surveyed were: (1) in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES □ JUNE 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 other i dealers brokers banks 1972—Apr............................... 2,990 2,300 460 203 28 704 450 1,002 835 609 May............................. 2,542 1,939 348 221 35 589 364 821 767 485 June............................. 2,452 2,001 257 161 34 545 355 759 793 411 July.............................. 2,571 2,124 283 131 33 633 382 851 704 439 Aug.............................. 2,658 1,953 377 191 137 587 411 911 749 443 Sept.............................. 2,695 2,225 231 143 97 635 504 845 710 482 Oct............................... 3,047 2,473 350 126 99 837 420 988 802 561 Nov.............................. 3,397 2,397 709 168 123 835 498 1,228 837 731 Dec............................... 3,184 2,640 361 118 65 757 352 1,215 860 472 1973—Jan................................ 3,158 2,445 443 148 122 793 470 1,113 781 463 Feb............................... 4,155 2,975 721 370 89 888 808 1,360 1,099 645 Mar.............................. 3,077 2,311 508 201 57 713 585 987 792 664 Apr............................... 3,185 2,535 440 165 46 709 636 1,075 766 714 Week ending— 1973—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 May 2....................... 3,367 2,572 371 376 47 695 602 1,145 925 445 9....................... 3,464 2,366 351 498 249 741 698 1,094 931 449 16....................... 3,118 2,344 324 257 193 671 470 1,002 975 939 23....................... 2,794 2,139 333 216 106 587 506 900 802 781 30....................... 3,129 2,562 261 197 108 630 495 1,086 918 486 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 i t e l u s l ri­ W y i e 1 th ar in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G g e t c e o ie u n v s r c t i . y ­ Period sou A r l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1972—Apr................. 3,573 3,713 20 -131 -29 422 1972—Apr............ 3,400 1,044 746 657 953 4,257 4,089 84 102 -18 551 4,073 1,107 931 755 1,280 June............... 3,733 3,903 -55 -99 -16 532 June........... 3,804 1,056 838 804 1,108 July................ 3,253 3,626 -146 -216 -11 356 July............ 3,055 753 496 820 986 Aug................ 3,905 3,370 41 130 363 404 Aug............ 4,021 1,356 580 927 1,158 Sept................ 4,386 4,374 -83 -58 153 408 Sept............ 4,379 1,633 599 705 1,442 Oct................. 3,333 3,452 -29 -132 41 543 3,055 1,227 406 490 932 Nov................ 4,522 4,113 335 8 66 834 Nov............ 4,198 1,538 617 709 1,334 Dec................. 4,973 4,903 73 -41 37 556 Dec............ 4,848 1,695 808 944 1,399 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 Feb............. 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 Apr................. 2,795 3,105 -159 -143 -9 276 Apr............ 3,032 935 513 311 1,273 Week ending— Week ending— 1973—Mar. 7........ 2,477 2,827 -245 -90 -15 150 1973—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 Apr. 4........ 3,315 3,637 -151 -173 3 163 Apr. 4. .. 3,622 1,163 705 321 1,434 11........ 2,991 3,203 -88 -138 14 322 11. .. 3,180 1,133 551 283 1,213 18........ 2,813 3,107 -160 -123 -11 336 18. .. 3,144 978 474 346 1,345 25 , 2,476 2,891 -231 -153 -31 270 25. .. 2,733 633 423 324 1,353 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

JUNE 1973 o U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MAY 31, 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 June 7, 1973. 4,287 Nov. 1, 1973___ 1,801 Dec. 31, 1974....•57/8 2,102 Aug. 15, 1973.... ,4 3,894 June 14, 1973. 4.302 Nov. 8, 1973___ 1,802 Feb. 15, 1975.....534 4,015 Nov. 15, 1973.....41/s 4,337 June 21, 1973. 4,306 Nov. 15, 1973.... 1,693 Feb. 15, •57/s 1,222 Feb. 15, 1974.....41/s 2,467 June 22, 1973f 2,510 Nov. 20, 1973.... 1,802 Apr. 1, 1975.....1% 8 May 15, 1974.....414 2,850 June 28, 1973. 4,305 Nov. 23, 1973. . . . 1,701 May 15, 1975....•57/8 1,776 Nov. 15, 1974.....37/8 1,214 June 30, 1973. 1.701 Nov. 29, 1973. . . . 1,702 May 15, 1975.....6 6,760 May 15, 1975-85..4V4 1,204 July 5, 1973. 4.303 Dec. 18, 1973.... 1,800 Aug. 15, .57/8 7,679 June 15, 1978-83..3% 1,494 July 12, 1973. 4.303 Jan. 15, 1974.... 1,804 Oct. 1, 1975....■ m 30 Feb. 15, 1980.....4 2,578 July 19, 1973. 4.304 Feb. 12, 1974.... 1,801 Nov. 15, 1975.....7 3,115 Nov. 15, 1980....•3% 1,898 July 26, 1973. 4,300 Mar. 12, 1974.... 1,790 Feb. 15, 1976.....6% 3,739 Aug. 15, 1981 .7 807 July 31, 1973. 1.702 Apr. 9, 1974.... 1,802 Feb. 15, 1976,...•57/s 4,945 Feb. 15, 1982. ,.. .63/g 2,702 Aug. 2, 1973. 4.302 May 7,1974.... 1 ,800 Apr. 1, .1% 27 Aug. 15, .63/8 - 2,353 Aug. 9, 1973. 4.305 May 15, 1976.....534 2,802 May 15, 1985.....314 978 Aug. 16, 1973. 4,304 May 15, 1976....• 6V£ 2,697 Nov. 15, 1986.....61/8 1,216 Aug. 23, 1973. 4.302 Aug. 15, 1976.. ..71/2 4,194 Aug. 15, 1987-92..414 3,738 Aug. 28, 1973. 1,803 Aug. 15, 1976,.,..61/2 3,883 Feb. 15, 1988-93..4 237 Aug. 30, 1973. 4.302 Oct. 1, 1976 , .■m 11 May 15, 1989-94..41/8 1,497 Sept. 6, 1973. 1,800 Nov. 15, 1976.....6% 4,325 Feb. 15, 1990.,.. • 3Vi 4,148 Sept. 13, 1973. 1,801 Treasury notes Feb. 15, 1977.....8 5,163 Feb. 15, 1993 . .634 627 Sept. 20, 1973. 1,801 Aug. 15, 1973........8^8 1,839 Apr. 1,1977 .1% 5 Feb. 15, 1995.....3 921 Sept. 25, 1973. 1,801 Oct. 1, 1973..........lVi 30 Aug. 15, 1977.....734 2,264 May 15, 1993-98..7 692 Sept. 27, 1973. 1,807 Feb. 15, 1974.........734 2,960 Oct. 1, 1977 .1 Vi 17 Nov. 15, 1998....•3 Vi 3,276 Oct. 4, 1973. 1,801 Apr. 1, 1974..........m 34 Feb. 15, 1978 .... .6% 8,389 Oct. 11, 1973. 1,801 May 15, 1974.........7% 4,334 Apr. 1, 1978.... n/2 14 Oct. 18, 1973. 1,800 Aug. 15, 1974.........55/s 10,284 Nov. 15, 1978.. ..6 8,207 Convertiblebonds Oct. 23, 1973. 1,802 Sept. 30, 1974........6 2,060 Aug. 15, 1979.....614 4,559 Investment Series B Oct. 25, 1973. 1,799 Oct. 1, 1974...........lVi 42 Nov. 15, 1979....•65/8 1,604 Apr. 1, 1975-80..234 2,277 Nov. 15, 1974.........5V4 5,442 May 15, 1980,.,..67/8 7,265 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ _ R n e u v e e­ HAAl G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E a d ti u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u * s­ V a a e n i t s d e * 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—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.. .. 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 Apr__ 1,772 858 906 8 159 704 908 1,711 300 8 432 88 883 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 □ JUNE 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o . v S t . . an S d t a lo te c al Others Total Govt.2 agency3 (U.S.)4 Total P o u f b fe 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—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, ... 6,523 1,199 993 1,889 116 2,327 1,276 989 287 137 913 Feb.r....... 7,325 1,603 2,261 1,445 53 1,962 957 641 316 172 832 Mar.r....... 9,001 606 1,826 2,274 359 3,935 2,119 1,314 804 833 983 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd ea f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1964.............................................. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965.............................................. 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 1966.............................................. 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967............................................... 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 1968.............................................. 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969............................................... 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 1970............................................... 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 1,638 1971.............................................. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1972—Mar.................................... 448 155 178 264 102 3 386 354 197 30 942 170 383 197 235 178 129 3 924 295 177 1 562 190 May................................... 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.'.................................. 113 63 89 105 120 1 529 371 30 3 395 509 Feb.'.................................. 178 35 118 111 96 4 319 277 58 117 290 461 Mar.................................... 470 27 66 111 101 1 228 703 474 548 780 427 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

JUNE 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 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 nd te s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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- temal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales 1 Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1960.............. 2,097 842 1,255 17,026 973 16,053 1972—Apr.. . 405 655 -250 58,870 2,827 56,043 May.. 378 585 -207 59,736 2,763 56,973 1961.............. 2,951 1,160 1,791 22,789 980 21,809 June.. 393 544 -151 57,708 3,015 54,693 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 July . . 398 424 -26 56,932 3,219 53,713 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Aug... 391 582 -191 58,186 3,375 54,811 Sept... 310 442 -132 57,193 3,395 53,798 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Oct... 384 411 -27 57,525 3,719 53,806 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Nov... 387 645 -258 59,854 3,549 56,305 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Dec... 449 619 -170 59,831 3,035 56,796 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Feb... 327 530 -203 54,083 3,375 50,708 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 Mar... 519 531 -12 53,377 3,774 49,603 Apr... 300 452 -120 50,837 3,837 46,464 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 □ JUNE 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t 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 f t i i e t s s d ­ co c a t n a l i s l o p o u n i w t m a ­ l p ­ ances1 ances 1 1966.............. 84.2 34.3 49.9 20.8 29.1 39.5 1971—I.... 81.3 38.0 43.2 25.5 17.7 57.5 1967.............. 79.8 33.2 46.6 21.4 25.3 43.0 II.. . 84.5 38.6 45.8 25.4 20.4 59.4 III... 84.1 37.5 46.6 25.5 21.0 61.2 1968.............. 87.6 39.9 47.8 23.6 24.2 46.8 IV... 83.2 35.3 48.0 25.2 22.7 63.0 1969............... 84.9 40.1 44.8 24.3 20.5 51.9 1970.............. 74.3 34.1 40.2 24.8 15.4 55.2 1972—1. ... 88.2 38.8 49.5 26.0 23.5 64.8 1971.............. 83.3 37.3 45.9 25.4 20.5 60.3 II. . . 91.6 40.1 51.5 26.2 25.3 68.0 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 1973—1. .. . 113.1 50.8 62.3 27.3 35.0 70.6 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 . .1 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 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note : Based on Securities and Exchange Commission estimates, offset against each other on corporations’ books. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Commu­ Total Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s t her nications Other1 A (S . . R A . . ) 1969....................... 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970....................... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972....................... 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—1.................. 21.50 3.92 3.88 .63 .46 .52 .32 3.45 .50 2.87 4.94 96.19 II 2............. 24.93 4.78 4.50 .68 .46 .68 .42 4.00 .74 8.66 98.57 Ill 2............ 25.32 4.83 4.60 .71 .50 .46 .40 4.36 .88 8.57 101.80 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

JUNE 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 il r y o p a e n r d ti es 5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ t F u i t i n c i n i o s a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t i n c i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h A e o r l l s d l ­ Total tu F i t i n i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ w u F V n r H i d A t A e te - r n - - t C i v o e o n n n a ­ ­ l 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 0 451.7 355.9 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. 547.3 434.6 44.3 68.3 35.0 10.3 24.7 512.3 335.8 279.2 56.6 176.5 145.1 31.3 129.0 280.3 IV. 565.4 450.6 45.8 69.0 35.4 10.5 24.9 530.0 346.1 288.7 57.4 183.9 151.3 32.6 1973—I*.. 579.9 1 Commercial banks (including nondeposit trust companies but not 4 For multifamily and total residential properties, see tables below. trust depts.), mutual savings banks, life insurance companies, and savings 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. and loan assns. 2 U.S. agencies include former Federal National Mortgage Assoc, and, 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone beginning fourth quarter 1968, new Government National Mortgage are shown in table below. Assoc, as well as Federal Housing Admin., Veterans Admin., Public Hous­ ing Admin., Farmers Home Admin. They also include U.S. sponsored Note.—Based on data from Federal Deposit Insurance Corp., Federal agencies—new FNMA, Federal land banks, GNMA (Pools), and the Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul­ Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts ture and Commerce, FNMA, FHA, PHA, VA, GNMA, FHLMC, and small or separate data not readily available) included with “individuals Comptroller of the Currency. and others.” Figures for first three quarters of each year are F.R. estimates. 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) Govemmenit- All residential Multifamily i u;nderwritte:n Con­ E pe n r d io o d f Total F i i n c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i i c n n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in r A e ­ d - an g V t u e A a e r - d ­ 1 ti v o e n n a ­ l tutions tutions 1963............... 211.2 176.8 34.5 29.0 20.7 8.3 1964............................... 197.6 69.2 38.3 30.9 128.3 1964............... 231.1 195.4 35.7 33.6 25.1 8.5 212.9 73.1 42.0 31.1 139.8 223.6 76.1 44.8 31.3 147.6 1 1 1 1 9 9 9 9 6 6 6 6 8 7 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 2 5 6 8 9 0 4 0 8 . . . . 1 0 0 6 2 2 2 2 2 5 3 1 3 0 6 3 . . . . 7 8 2 6 4 4 4 3 0 7 3 6 . . . . 3 9 8 4 4 4 4 3 0 7 3 7 . . . . 3 3 9 2 2 3 3 3 1 9 7 4 . . . . 5 7 7 0 9 9 8 8 . . . . 8 2 2 7 2 2 2 23 5 6 8 6 6 1 0 . . . . 1 8 2 2 9 7 8 9 7 9 4 0 . . . . 9 2 4 2 5 5 4 5 4 0 7 9 . . . . 5 9 6 4 3 3 3 3 2 3 5 7 . . . . 5 8 3 7 1 1 1 1 5 6 7 8 6 6 6 2 . . . . 1 9 8 6 1969............... 319.0 265.0 54.0 52.2 41.3 10.8 1970............... 338.2 277.1 61.1 58.0 45.8 12.2 283.6 98.3 61.0 37.3 185.3 1971—1.......... 343.3 281.4 61.8 59.7 47.1 12.6 II......................... 2 2 9 9 0 9 . . 9 7 1 1 0 0 2 0 . . 9 4 6 6 2 4 . . 8 4 3 3 8 7 . .6 5 1 1 9 9 6 0 . . 8 5 II........ 353.1 289.9 63.2 62.1 49.2 12.9 307.8 105.2 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 1972—1.......... 382.9 312.9 70.0 68.8 53.3 15.4 II......................... 3 3 3 2 5 4 . . 8 6 1 1 0 1 9 1 . . 6 5 6 6 7 8 . . 6 4 4 43 2 . . 1 0 2 2 2 1 4 5 . . 3 0 II........ 395.8 324.1 71.7 71.3 55.3 16.0 IV*...................... 346.1 68.2 Ill....... 409.3 336.1 73.2 73.5 56.9 16.6 IV*.... 422.5 347.9 74.6 76.4 59.1 17.3 1 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 above. 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 □ JUNE 1973 MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings i Mutual savings bank holdings 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 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966............................... 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968............................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969............................... 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—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 II....................... 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 8,174 107 Ill...................... 79,936 50,280 8,246 2,806 39,228 25,500 4,156 60,625 51,989 16,216 12,033 23,740 8,561 75 IV....................... 82,515 52,004 8,310 2,980 40,714 26,306 4,205 61,978 53,027 16,141 12,074 24,812 8,901 50 1972—1......................... 85,614 53,937 8,360 2,999 42,578 27,353 4,324 62,978 53,733 16,184 12,144 25,405 9,195 50 II....................... 90,114 56,782 8,477 3,141 45,163 28,785 4,547 64,404 54,758 16,256 12,325 26,178 9,586 60 Ill...................... 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 i Includes loans held by nondeposit trust companies, but not bank Note.—Second and fourth quarters. FDIC series for all commercial trust depts. and mutual savings banks in the United States and possessions. First and third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H u A re - d a g n V u t A e a e r - ­ d Other i Farm Total Total in F s H u A re - d a g n V u t A e a e r - - d Other Farm 1945............................................... 976 6,637 5,860 1,394 4,466 766 1964............................................... 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965............................................... 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966............................................... 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 1967............................................... 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968.............................................. 7,925 7,153 733 346 6,074 772 69,973 64,172 11,961 5,954 46,257 5,801 1969.............................................. 7,531 6,991 594 220 6,177 540 72,027 66,254 11,715 5,701 48,838 5,773 1970.............................................. 7,181 6,867 386 88 6,393 314 74,375 68,726 11,419 5,394 51,913 5,649 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—Feb.r................................. 430 386 21 12 353 44 75,427 69,904 10,674 4,956 54,274 5,523 Mar.r................................ 587 500 30 18 452 87 75,398 69,863 10,595 4,930 54,338 5,535 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 5,552 708 643 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 Feb.................................... 603 542 21 24 491 61 77,510 71,892 9,806 4,613 57,473 5,618 Mar.................................... 670 573 37 24 512 97 77,587 71,953 9,735 4,594 57,624 5,634 1 Includes mortgage loans secured by land on which oil drilling or extracting operations are in process. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total amount Period N of u l m oa b n e s r ( c m o (d i m l o l m i l o la i n t r s t s e ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r t n r a e t c r t r e e e a s n c t t t ) (y M rs a ./ t m ur o it s y .) (p t L o e r r a - o v t c a i a e n o l n - u t e ) C (p a t p e io 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 May............... 146 257.3 1,762 8.91 23/4 75.6 10.0 1.27 10.4 June............... 203 729.0 3,591 8.92 23/8 75.5 9.8 1.29 10.2 July................ 183 386.5 2,112 8.94 21/10 74.4 9.8 1.26 10.4 Aug................ 153 434.4 2,839 9.08 23/1 74.9 9.9 1.27 10.4 Sept................ 178 366.1 2,057 9.15 22/6 74.8 9.8 1.28 10.4 Oct................. 112 198.4 1,771 9.20 22/7 75.8 10.0 1.28 10.4 Nov................ 136 288.2 2,119 9.01 23/5 75.6 9.9 1.27 10.2 Dec................. 133 290.0 2,181 8.96 23 74.4 9.9 1.30 10.2 1972—Jan................. 107 198.6 1,856 8.78 22/1 73.3 10.0 1.31 10.2 Feb................. 122 423.5 3,471 8.62 22/6 73.3 9.7 1.31 10.0 Mar................ 220 530.4 2,411 8.50 24/2 76.3 9.5 1.29 9.7 Apr................. 200 381.1 1,906 8.44 24/6 76.3 9.5 1.29 9.6 May............... 246 399.6 1,624 8.48 23/4 76.0 9.5 1.26 9.8 June............... 268 683.2 2,549 8.55 23/0 75.4 9.5 1.29 9.8 Note.—Life Insurance Association of America data for new commit­ limited to cases where information was available or estimates could be ments of $100,000 and over each on mortgages for multifamily and non­ made: capitalization rate (net stabilized property earnings divided by residential nonfarm properties located largely in the United States. The 15 property value); debt coverage ratio (net stabilized earnings divided by companies account for a little more than one-half of both the total assets debt service); and per cent constant (annual level payment, including and the nonfarm mortgages held by all U.S. life insurance companies. principal and interest, per $100 of debt). All statistics exclude construction Averages, which are based on number of loans, vary in part with loan loans, increases in existing loans in a company’s portfolio, reapprovals, composition by type and location of property, type and purpose of loan, and loans secured by land only. and loan amortization and prepayment terms. Data for the following are MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Members’ Period va A n d c ­ es R m e e p n a ts y­ d ( e e p nd o si o ts f Period h N om ew e Home FHA- VA- Con­ Total t S e h rm or t 1 ­ t L e o rm ng ­ 2 period) Total i con­ pur­ Total 2 in- guar- ven­ struc­ chase sured 3anteed 3 tional tion 5,007 4,335 5,997 3,074 2,923 1,043 1966....................... 3,804 2,866 6,935 5,006 1,929 1,036 1964. 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1967....................... 1,527 4,076 4,386 3,985 401 1,432 1965. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968....................... 2,734 1,861 5,259 4,867 392 1,382 1966. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969....................... 5,531 1,500 9,289 8,434 855 1,041 3,256 1,929 10,615 3,081 7,534 2,331 1967. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1971....................... 2,714 5,392 7,936 3,002 4,934 1,789 1968. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 4,790 4,749 7,979 2,961 5,018 2,104 1969. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1970. 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1972—Apr............. 318 396 5,913 2,049 3,864 1,762 1971. 39,472 6,835 18,811 174,385 13,798 10,848 149,739 May........... 260 320 5,853 2,019 3,835 1,789 June........... 420 198 6,074 1,944 4,130 1,746 1972--May. . 4,603 836 2,276 185,431 14,878 12,010158,543 July............ 285 222 6,138 1,990 4,148 1,497 June.. 5,449 872 2,920 188,884 15,019 12,293 161,572 Aug............ 406 249 6,295 2,083 4,212 1,442 July... 4,572 743 2,515 191,642 15,153 12,606163,883 Sept............ 631 189 6,736 2,307 4,429 1,443 Aug... 5,379 803 3,087 194,955 15,263 12,892 166,800 542 233 7,045 2,440 4,605 1,334 Sept... 4,689 739 2,587 197,881 15,342 13,098 169,441 Nov............ 445 246 7,245 2,520 4,725 1,371 Oct.... 4,522 761 2,423 200,55415,378 13,334171,842 984 251 7,979 2,961 5,018 2,104 Nov... 4,393 714 2,307 203,266 15,490 13,544174,232 Dec.. . 4,591 667 2,167 206,387 15,639 13,764 176,964 332 480 7,831 2,805 5,025 1,306 Feb......... 415 302 .7,944 2,774 5,170 1,321 1973--Jan.r.. 3,702 590 1,970 208,132 29,581 178,551 Mar.r__ 764 288 8,367 2,975 5,446 1,290 Feb.. . 3,710 614 2,019 210,260 29;,751 180,509 1,187 178 9,267 3,450 5,979 1,142 Mar... 4,990 887 2,685 213,259 30;,045 183,214 Apr... 4,975 882 2,757 216,250 30,183 186,067 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 Includes loans for repairs, additions and alterations, refinancing, etc. 1 year but not more than 10 years. not shown separately. 2 Includes shares pledged against mortgage loans; beginning 1966, also Note.—FHLBB data. 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 guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ JUNE 1973 FEDERAL NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ASSOCIATION ACTIVITY AUCTIONS (In millions of dollars) Government-underwritten Conventional home loans Mortgage Mortgage Mortgage home loans holdings transactions commitments E pe n r d io o d f ( p d e u ri r o in d g ) Date of auction M am or o tg u a n g ts e Av y e ie r l a d ge M am or o tg u a n g ts e Av y e ie r l a d ge Total F su H in re A ­ d - a g n V u t A e a e r - ­ d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Offered ce A p c te ­ d c ( m o s te h e m r n o m m t r s t i ) ­ t­ Offered ce A p c te ­ d c m ( o s te h m e r n o m m t r s t i ) ­ t­ 1 1 19 9 9 6 6 6 9 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 5 0 , , , 1 5 9 6 2 5 7 2 0 4 5 7 , , , 1 0 6 2 4 8 1 8 0 3 2 1 , , , 0 2 4 4 7 7 6 0 4 4 1 1 , , , 1 4 9 2 0 4 1 0 4 12 2 6 1 , , . 6 6 7 9 3 3 6 0 2 3 1 , , 5 2 5 8 3 01 7 9 In m do il l l l i a o r n s s of per I n ce nt In m do il l l l i a o r n s s of per I n ce nt 1970............ 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 5,112 3 3 , , 5 6 7 8 4 4 2 3 1 3 3 6 4,986 5,694 1972—Dec. 1 4 1___ 82.2 42.4 7.68 36.4 30.9 7.87 26 108.7 66.3 7.69 1972-Apr... 18,403 13,744 4,659 246 70 617 5,851 J M un a e y . . . . 1 1 8 8 , ,6 5 2 9 8 9 1 1 3 3 , , 9 9 2 5 3 2 4 4 , ,6 6 7 7 4 0 2 3 2 21 3 29 7 1,0 6 5 1 4 0 6 6 , , 1 3 5 6 3 2 1973—Jan. 2 8.... 74.2 61.3 7.69 39.3 25.5 7.84 July... 18,740 14,013 4,714 258 3 515 6,471 22.... 107.0 92.1 7.70 Aug... 19,023 14,188 4,816 427 466 6,309 Sept... 19,295 14,380 4,888 401 755 6,451 Feb. 5.... 128.7 65.4 7.71 Oct. . . 19,438 14,462 4,939 265 887 6,654 6 100.9 62.9 7.89 Nov... 19,619 14,558 5,016 315 6 388 6,562 20.... 110.3 71.6 7.73 Dec... 19,791 14,624 5,112 307 12 1,086 5,440 21 66.0 49.6 7.92 1973-Jan.... 19,982 14,743 5,170 225 29 392 6,943 Mar. 5.... 170.8 107.7 7.75 M Fe a b r . . . r . . 2 2 0 0 , , 1 5 8 7 1 1 1 1 5 4 , , 2 8 0 7 1 2 5 5 , ,2 2 2 5 3 9 2 3 1 2 8 6 9 49 3 3 4 8 6, , 9 1 1 6 1 5 1 6 9.... 297.3 168.7 7.81 60.3 44.3 7.95 Apr.. . 20,791 15,389 5,269 174 1,211 8,742 21 86.8 56.4 8.02 Apr. 2r... 234.6 145.9 7,86 Note.—FNMA data. Total holdings include conventional loans. Data 3 111.9 81.6 8.11 prior to Sept. 1968 relate to secondary market portfolio of former FNMA. \6r... 216.6 190.7 7.89 Mortgage holdings include loans used to back bond issues guaranteed by 17 111.0 88.4 8.17 GNMA. Mortgage commitments made during the period include some 30.... 261.2 185.9 7.92 128.9 88.2 8.23 multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA’s free market auction May 14.... 258.3 187.7 7.96 117.6 84.4 8.31 system, and through the FNMA-GNMA Tandem Plan (Program 18). 28.... 212.4 140.0 8.00 113.3 74.0 8.39 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. Since Oct. 18, 1971, the maturity on new short-term commitments has been extended 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—Apr., 187.8 275.1 197 0 5,184 4,634 550 621 897 738 May, 216.4 212.9 500.0 197 1 5,294 393 June, 245.8 193.2 197 2 5.113 July. 135.5 145.8 Aug. 548.3 140.3 1972-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 Apr. 467.8 182.2 1973-Jan.. 5,117 Feb.. 4,984 Note.—GNMA data. Under the Mortgage-Backed Security Program, Mar.. 4,663 GNMA guarantees the timely payment of principal and interest on both Apr.. 4,439 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. To date, bond-type securities Note.—GNMA data. Total holdings include a small amount of con­ have been issued only by FNMA and FHLMC. ventional loans. Data prior to Sept. 1968 relate to Special Assistance and Management and Liquidating portfolios of former FNMA and include mortgages subject to participation pool of Government Mortgage Liquida­ tion Trust, but exclude conventional mortgage loans acquired by former FNMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 ec B ti B ve s r e a ri t e e s ) ( 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 o e m w es h is o E t m i x n ­ e g s jects 1 m pr i e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n ­ e g s homes homes homes 1965............ 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 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1970....................... 8.44 8.35 8.52 9.03 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1971....................... 7.74 7.67 7.75 7.70 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1972....................... 7.60 7.52 7.64 7.52 1970............ 11,982 2,667 5,447 3,251 617 3,440 1,311 2,129 19 71............ 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 1972—May............ 7.53 7.46 7.60 7.53 1972............ 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 June............ 7.55 7.49 7.60 7.54 July............ 7.58 7.50 7.65 7.54 1972—Apr.. 945 272 381 241 51 516 173 343 Aug............. 7.59 7.52 7.65 7.55 May. 913 259 369 229 56 613 189 424 Sept............. 7.57 7.55 7.70 7.56 June. 1,077 271 372 363 71 858 243 615 Oct.............. 7.62 7.57 7.70 7.57 July.. 900 261 374 218 47 675 183 492 Nov............ 7.64 7.57 7.70 7.57 Aug.. 1,018 310 440 201 67 776 224 552 Dec............. 7.66 7.59 7.70 7.56 Sept.. 949 245 340 287 77 758 212 546 Oct... 862 255 343 170 94 720 204 516 1973—Jan.............. 7.68 7.68 7.70 7.55 Nov.. 1,001 261 331 312 97 790 246 544 Feb............. 7.70 7.72 7.75 7.56 Dec.. 964 190 245 444 85 715 220 495 Marr ........ 7.68 7.69 7.80 7.63 Apr.r.......... 7.71 7.70 7.90 7.73 1973—Jan.r 834 254 324 197 59 681 218 463 May............ 7.72 7.77 Feb... 682 162 235 233 52 592 187 405 Mar.. 954 195 268 426 65 596 185 411 Apr. 151 223 189 621 187 434 Note.—Annual data are averages of monthly figures. The Housing and Urban Development (FHA) data are based on opinion reports submitted by field offices on prevailing local 1 Monthly figures do not reflect mortgage amendments included in annual conditions as of the first of the succeeding month. Yields on totals. FHA-insured mortgages are derived from weighted averages of 2 Not ordinarily secured by mortgages. private secondary market prices for Sec. 203, 30-year mortgages 3 Includes refinancing loans, mobile home loans and also a small amount of with minimum downpayment and an assumed prepayment alteration and repair loans, not shown separately; only such loans in amounts at the end of 15 years. Any gaps in data are due to periods of of more than $1,000 need be secured. adjustment to changes in maximum permissible contract in­ terest rates. The HUD (FHA) interest rates on conventional Note.—FHA and VA data. FHA-insured loans represent gross amount first mortgages in primary markets are unweighted and are of insurance written; VA-guaranteed loans, gross amounts of loans closed. rounded to the nearest 5 basis points. The FHLBB effective Figures do not take into account principal repayments on previously insured rate series reflects fees and charges as well as contract rates (as or guaranteed loans. For VA-guaranteed loans, amounts by type are derived shown in the table on conventional first-mortgage terms, p. from data on number and average amount of loans closed. A-35) and an assumed prepayment at end of 10 years. DELINQUENCY RATES ON HOME MORTGAGES FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— Loans in Mortgage Mortgage Mortgage fore­ holdings transactions commitments End of period closure (during period) Total 30 days 60 days o 9 r 0 m da o y r s e End of period 1965............... 3.29 2.40 .55 .34 .40 Total FH VA A- t C i v o o e n n n a ­ ­ l c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g s O t i a n u n g t d ­ ­ 1966............... 3.40 2.54 .54 .32 .36 1967............... 3.47 2.66 .54 .27 .32 1968............... 3.17 2.43 .51 .23 .26 1970.................. 325 325 325 1969............... 3.22 2.43 .52 .27 .27 1971.................. 968 821 147 778 64 182 1970............... 3.64 2.67 .61 .36 .33 1972r................. 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 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.r 1,718 1,589 128 119 68 141 295 /4.66 3.41 .79 .46 .50 IV ie.. \4.65 3.42 .78 .45 .48 Note.—FHLMC data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Holdings, purchases, 1 First line is old series; second line is new series. and sales include participations as well as whole loans. Mortgage holdings in­ clude loans used to back bond issues guaranteed by GNMA. Commitment data Note.—Mortgage Bankers Association of America data from cover the conventional and Govt.-underwritten loan programs. reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ 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 □ JUNE 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--Apr............................... 139,410 112,439 39,348 33,981 5,504 33,606 26,971 10,933 7,179 8,859 May............................. 141,450 114,183 40,063 34,439 5,604 34,077 27,267 11,066 7,464 8,737 June............................. 143,812 116,365 41,019 35,041 5,717 34,588 27,447 11,181 7,610 8,656 July.............................. 145,214 117,702 41,603 35,470 5,797 34,832 27,512 11,235 7,644 8,633 Aug.............................. 147,631 119,911 42,323 36,188 5,950 35,450 27,720 11,411 7,717 8,592 Sept.............................. 148,976 121,193 42,644 36,745 6,049 35,755 27,783 11,541 7,693 8,549 Oct............................... 150,576 122,505 43,162 37,216 6,124 36,003 28,071 11,717 7,780 8,574 Nov.............................. 152,968 124,325 43,674 38,064 6,174 36,413 28,643 11,917 8,010 8,716 Dec............................... 157,564 127,332 44,129 40,080 6,201 36,922 30,232 12,256 9,002 8,974 1973--Jan................................ 157,227 127,368 44,353 39,952 6,193 36,870 29,859 12,204 8,357 9,298 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 Apr.............................. 161,491 131,022 46,478 40,441 6,408 37,695 30,469 12,686 8,036 9,747 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 i 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- 112,439 99,139 52,629 28,955 15,083 2,472 13,300 232 13,068 May.................................................. 114,183 100,840 53,624 29,310 15,395 2,511 13,343 237 13,106 June.................................................. 116,365 102,909 54,883 29,722 15,786 2,518 13,456 243 13,213 117,702 104,132 55,688 30,065 15,910 2,469 13,570 248 13,322 119,911 106,146 56,846 30,464 16,278 2,558 13,765 251 13,514 121,193 107,278 57,566 30,650 16,439 2,623 13,915 253 13,662 122,505 108,405 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 15,415 127,959 112,630 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 14,913 131,022 115,727 62,459 33,078 17,455 2,735 15,295 278 15,017 i 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

JUNE 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 5,7'75 174 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—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 Apr.. 62,459 17,327 11,436 6,163 5,290 5,401 3,581 13,261 33,078 10,617 2,991 3,831 611 15,028 i Finance companies consist of those institutions formerly classified « 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 1 1 9 9 4 40 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 , , 8 20 2 3 4 6 6 3 7 6 4 1 7 6 2 4 1 1 , , 6 47 1 1 2 5 8 5 4 3 5 1 19 96 65 6. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 9 8 , , 3 2 1 8 5 9 3 3 , , 4 0 1 3 1 6 4 5 9 8 8 8 9 9 3 8 3 0 4 3 , , 3 8 3 2 6 2 1955............... 6 9 , , 7 9 6 2 8 4 2 1 , , 6 5 3 7 5 6 2 3 4 6 5 7 4 3 , , 5 29 7 1 9 21 76 6 2 1 , , 1 5 2 8 7 0 1967................................ 10,216 3,678 654 1,085 4,799 13,173 3,884 623 4,893 436 3,337 1 1 9 9 6 6 8 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 3 , , 7 7 1 2 7 2 4 4, , 9 2 4 3 1 8 7 9 7 5 1 1 1 1 , , 2 4 1 4 5 3 5 6, , 3 4 8 9 7 3 1 18 9 , , 9 9 9 9 0 4 6 6 , , 9 6 4 9 6 0 1,0 9 2 81 6 5 5 , , 8 7 1 2 2 4 7 8 0 7 6 4 4 5 , , 8 3 8 3 9 6 1970................................ 15,088 5,116 1,177 1,800 6,995 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—Apr...................... 17,555 5,898 1,512 1,984 8,161 25,099 8,469 1,206 6,163 1,805 7,456 May.................... 17,906 6,019 1,543 2,020 8,324 27,099 9,316 1,269 6,397 1,953 8,164 June.................... 18,304 6,166 1,580 2,055 8,503 30,232 10,857 1,399 7,055 1,947 8,974 July..................... 18,379 6,204 1,589 2,062 8,524 Aug...................... 18,836 6,353 1,628 2,113 8,742 1972—Apr.... 26,971 9,594 1,339 5,296 1,883 8,859 N D O Se o e c p c t v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 9 9 9 9 , , , ,5 1 3 0 1 6 6 6 1 9 8 2 6 6 6 6 , , , , 4 4 5 5 6 2 9 3 1 1 8 5 1 1 1 1 , , , , 6 6 6 6 5 4 7 9 6 5 5 0 2 2 2 2 , , , , 1 1 1 1 5 6 6 4 5 7 0 4 9 8 8 8 , , , , 0 8 9 8 6 9 9 5 3 3 5 2 J J A S M u u e u l n a p g y e y t — . . . . . . . . . . . . 2 2 2 2 2 7 7 7 7 7 , , , , , 2 4 7 5 7 6 8 4 1 2 3 7 2 7 0 1 1 9 9 9 0 0 , , , , , 8 7 9 1 0 3 1 0 5 6 1 7 3 0 5 1 1 1 1 1 , , , , , 3 3 3 3 3 3 4 5 7 5 5 9 8 6 0 5 5 5 5 5 , , , , , 6 6 5 6 6 8 1 8 6 7 3 9 7 4 6 2 2 1 1 1 , , , , , 0 9 0 9 8 2 4 8 7 8 1 1 7 0 0 8 8 8 8 8 , , , , , 6 6 5 7 5 3 5 9 3 4 3 9 6 2 7 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 Apr...................... 20,190 6,820 1,748 2,216 9,406 1973—Jan.... 29,859 10,825 1,379 6,402 1,955 9,298 Feb.... 29,623 10,989 1,420 5,735 1,911 9,568 lan N eo o u t s e .— len O de th rs e . r M fin is a c n e c ll i a a n l e l o e u n s d e le rs n d c e o rs n s i i n s c t lu o d f e c s r a e v d i i n t g u s n a i n on d s lo a a n n d a m ss i o s c c i e a l ­ ­ A M p a r r . _ .. _ . 2 3 9 0 , , 9 4 4 69 5 1 1 1 1 , , 0 2 7 37 4 1 1 , , 4 4 6 49 6 5 6 , , 8 1 2 2 5 9 1 1 , , 8 9 7 0 7 7 9 9 , , 7 70 4 3 7 tions and mutual savings banks. 1 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included in estimates of instalment credit outstanding. See also Note to table at top of preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ JUNE 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.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965......................................... 78,661 27,208 22,857 2,270 26,326 1966......................................... 82,832 27,192 26,329 2*223 27*088 1967......................................... 87,171 26,320 29,504 2*369 28*978 1968......................................... 99,984 31,083 33,507 2^534 32^860 1969......................................... 109,146 32,553 38,332 2,831 35*430 1970......................................... 112,158 29,794 43,873 2^963 35,528 1971......................................... 124,281 34,873 47,821 3^244 38*343 1972......................................... 142,951 40,194 55,599 4,006 43*152 1972—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 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 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 Apr............................... 13,465 13,661 3,822 4,101 5,563 5,378 365 372 3,715 3,810 Repayments 1965......................................... 70,463 23,706 20,707 2,112 23,938 1966......................................... 77,480 25,619 24,080 2,118 25,663 1967......................................... 83,988 26,534 27,847 2,202 27,405 1968......................................... 91,667 27,931 31,270 2,303 30,163 1969......................................... 99,786 29,974 34,645 2,457 32,710 1970......................................... 107,199 30,137 40,721 2,506 33,835 1971......................................... 115,050 31,393 44,933 2,901 35,823 1972......................................... 126,914 34,729 49,872 3,218 39,095 1972—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 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 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 Apr............................... 12,061 12,014 3,218 3,233 4,963 4,888 294 292 3,586 3,601 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—Apr............................... 990 1,182 295 495 384 286 63 67 248 334 May............................. 1,332 1,744 455 715 412 458 47 100 418 471 June............................. 1,386 2,182 490 956 413 602 68 113 415 511 July............................... 1,094 1,337 381 584 435 429 49 80 229 244 Aug............................... 1,643 2,209 595 720 595 718 101 153 352 618 Sept.............................. 1,286 1,282 495 321 469 557 77 99 245 305 Oct................................ 1,496 1,312 463 518 617 471 72 75 344 248 Nov.............................. 1,718 1,820 597 512 674 848 56 50 391 410 Dec............................... 1,663 3,007 786 455 535 2,016 88 27 254 509 1973—Jan................................ 1,949 36 909 224 633 -128 62 -8 345 -52 Feb............................... 1,997 591 827 464 618 -157 89 46 463 238 Mar.............................. 2,044 1,416 776 793 594 156 120 89 554 378 Apr............................... 1,404 1,647 604 868 600 490 71 80 129 209 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

JUNE 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.1 N.S.A. S. A.1 N.S.A. Extensions 1965......................................... 78,661 29,528 25,265 9,438 14,430 1966......................................... 82,832 30,073 25,897 10,368 16,494 1967......................................... 87,171 31,382 26,461 11,238 18,090 1968......................................... 99,984 37,395 30,261 13,206 19*122 1969......................................... 109,146 40,955 32,753 15,198 20,240 1970......................................... 112,158 42,960 31,952 15,720 21 526 1971......................................... 124,281 51,237 32,935 17,966 22|143 1972......................................... 142,951 59,339 38,464 20,607 24^541 1972—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 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 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 Apr............................... 13,465 13,661 5,644 5,973 3,555 3,576 1,792 1,832 2,474 2,280 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—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 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 Apr............................... 12,061 12,014 4,919 4,902 3,251 3,248 1,693 1,694 2,198 2,170 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—Apr............................... 990 1,182 571 847 248 239 75 119 96 -23 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 Apr............................... 1,404 1,647 725 1,071 304 328 99 138 276 110 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. □ JUNE 1973 MARKET GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ 1972 1972 1973 Grouping p ti o o r n ­ a a v g e e r * ­ Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. Total index. 100.00 114.4 112.8 113.2 113.4 113.9 115.0 116.1 117.5 118.5 119.2 119.9 121.1 122.0 122.8 Products, total................ 62.21 113.1 111.4 112.1 112.0 112.2 113.3 114.4 115.9 117.3 117.5 118.6 119.5 120.1 120.7 Final products.............. 48.95 111.2 109.8 110.2 110.1 110.1 111.3 112.4 113.9 115.0 115.3 116.4 117.3 118.1 118.7 Consumer goods.... 28.53 123.1 122.0 122.2 122.1 122.0 123.1 124.41 125.6 126.8 126.7 127.5 128.3 129.4 129.6 Equipment............... 20.42 94.5 92.7 93.4 93.3 93.4 94.8 95.8] 97.3 98.5 99.4 101.0 102.0 102.3 103.4 Intermediate products. 13.26 120.5 117.3 119.3 119.1 120.5 121.2 121.7 123.4 125.9 125.7 126.5 127.4' 127.6 127.9 Materials......................... 37.79 116.4 115.0 115.6 116.1 116.8 117.4 119.1 120.3 120.6 122.0 121.7 124.0 125.0 126.5 Consumer goods Durable consumer goods.............. 7.86 125.4 125.9 125.3 126.0 123.9 125.8 125.4 128.3 130.7 133.9 134.6 137.8 140.4 139.4 Automotive products............... 2.84 127.1 128.9 127.4 125.7 124.7 127.1 124.8 130.3 137.5 142.0 134.9 141.7 144.1 141.7 Autos..................................... 1.87 112.7 114.3 111.3 108.2 108.2 109.5 109.6 116.9 126.6 133.9 126.0 131.5 130.8 128.1 Auto parts and allied goods. .97 154.7 157.0 158.3 159.3 156.9 160.9 153.9 156.1 158.6 158.0 151.9 161.4 169.9 167.8 Home goods............................. 5.02 124.5 124.2 124.3 126.1 123.5 125.1 125.7 127.2 126.9 129.1 134.5 135.8 138.3 138.2 Appliances, TV, and radios. 1.41 127.1 132.2 129.3 125.9 121.6 119.7 123.1 124.0 121.8 133.0 140.7 137.8 143.0 144.0 Appliances and A/C... .92 144.5 149.3 148.2 141.2 138.5 141.8 142.8 147.8 141.9 151.0 153.2 153.8 156.9 158.6 TV and home audio.... .49 87.5 100.1 93.7 97.2 89.9 78.6 86.1 79.4 83.9 99.9 108.0 116.8 Carpeting and furniture 1.08 132.6 131.3 132.0 134.0 132.6 138.4 134.5 137.6 137.6 139.0 142.'1 145.0 145.7 144.2 Misc. home goods................ 2.53 121.0 116.9 118.2 122.9 120.6 122.4 123.4 124.5 125.2 122.8 127.5 130.9 132.7 132.4 Nondurable consumer goods........... 20.67 122.2 120.5 121.0 120.6 121.3 122.1 123.9 124.5 125.3 123.9 124.8 124.7 125.2 126.0 Clothing....................................... 4.32 107. 105.0 106.2 106.8 108.0 109.1 110.0 110.3 110.4 109.0 108.0 109.9 Consumer staples........................ 16.34 126.0 124.6 124.9 124.3 124. 125.5 127.6 128.2 129.2 127.8 129.2 128.5 128.9 129.7 Consumer foods and tobacco. 8.37 117.4 116.8 117.2 116.8 116.4 117.6 118.5 118.5 120.3 117.7 118.2 119.2 119.5 119.6 Nonfood staples......................... 7.98 135.0 132.8 133.1 132.2 133.6 133.8 137.2 138.3 138.6 138.2 140.7 138.1 138.7 140.4 Consumer chemical products. 2.64 144.3 145.4 144.8 140.2 141.3 141.7 146.4 145.0 143.9 142.5 147.4 145.6 147.0 148.3 Consumer paper products.... 1.91 114.7 111.4 111.1 112.5 112.5 112.2 115.6 118.6 119.3 119.5 117.7 117.5 118.7 119.1 Consumer fuel and lighting.. 3.43 139.2 134.8 136.3 136.8 139.4 139.8 141.9 144.0 145.1 145.2 148.3 143.8 143.5 146.1 Residential utilities............. 2.25 147.5 142.1 143.2 145.0 147.0 147.5 150.3 152.1 154.5 155.6 158.5 154.1 153.3 154.2 Equipment Business equipment..................... 12.74 104.3 101.3 102.5 102.4 102.1 105.0 106.7 108.5 110.1 111.1 114.2 114.9 115. 117.4 Industrial equipment.............. 6.77 99.3 95.7 96.3 97.2 96.7 99.9 102.8 103.7 105.8 107.3 109.0 109.8 111.4 113.3 Building and mining equip.. 1.45 101.9 98.4 97.0 98.3 98.0 104.8 105.7 105.4 104.2 108.0 108.6 109.2 110.0 111.7 Manufacturing equipment.. 3.85 88.6 84.9 85.9 86.7 87.1 89.4 92.6 94.0 96.9 98.5 100.9 101.8 103.7 105.7 Power equipment............... 1.47 124.6 121.4 122.8 123.5 120.5 122.4 126.3 127.2 130. 129.6 130.6 131.5 132.9 134.3 Commercial, transit, farm eq.. 5.97 110.0 107.6 109.6 108.4 108.3 110.7 111.2 113. 115.3 115.4 120.0 120.9 120.8 122.1 Commercial equipment.... 3.30 117.8 114.1 116.4 116.7 117.3 120.0 121.5 122.7 123.2 122.6 126.3 127.0 128.6 131.1 Transit equipment.............. 2.00 96.7 97.0 98.9 94.4 92.5 93.0 93.1 96.8 101.9 101.7 110.0 111. 110.2 107.9 Farm equipment................. .67 110.6 106.8 108.2 109.7 111.2 117.7 114.7 120.3 116.3 120.0 118.3 117.6 114.6 119.6 Defense and space equipment. 7.68 78.2 78.5 78.2 78.3 78.9 77.9 77.7 78.6 79.3 80.1 79.1 80.4 79.9 80.3 Military products................ 5.15 80.6 81.3 81.1 80.4 81.6 79.9 79.3 80.3 81.2 81.4 80.8 81.8 81.2 80.9 Intermediate products Construction products.......... 5.93 119.7 116.5 118.0 117.8 119.8 119.3 120.6 123.1 126.1 124.6 125.9 126.0 127.3 128.3 Misc. intermediate products. 7.34 121.1 118.0 120.4 120.2 121.1 122.8 122.6 123.6 125.6 126.7 127.0 128.5 127.9 127.8 Materials Durable goods materials.... 20.91 112.1 110.4 111.1 111.1 111.5 112.6 116.0 117.4 117.7 120.1 120.1 122.9 124.1 125.9 Consumer durable parts. 4.75 113.1 113 112.0 112.0 111.4 114.0 116.3 116.6 115.8 118.0 120.8 124.1 124.4 129.2 Equipment parts............. 5.41 97.1 95.4 95.3 95.3 98.2 97.8 100.7 102.6 103.6 105.7 104.3 107.5 109.7 111.0 Durable materials nec... 10.75 119.3 116.5 118.6 118.6 118.2 119.5 123.6 125.2 125.7 128.5 127.8 130.2 131.2 131.7 Nondurable goods materials........... 13.99 121.7 120.6 121.3 122.5 123.3 123.7 122.7 123.9 124.4 125.5 124.3 125.7 126.4 128.0 Textile, paper, and chem. mat.. 8.58 128.0 125.9 127.1 128.5 130.1 131.1 129.2 130.7 132.7 134.8 133.0 135.8 137.2 139.6 Nondurable materials n.e.c....... 5.41 111 112.3 112.3 113.1 112.3 111.9 112.4 113.0 111.2 110.9 110.4 110.0 109.5 109.7 Fuel and power, industrial........... 2.89 121.2 121.6 120.7 121.7 123.5 121 125.0 124 122.5 118.7 120.7 123.7 123.9 123.8 Supplementary groups Home goods and clothing. 9.34 116.8 115.3 115.9 117.2 116.3 117.7 118.5 119.4 119.2 119.8 122.2 123.8 125.8 126.1 Containers.......................... 1.82 126.8 127.5 127.0 130.2 128.8 125.7 122.6 127.2 134.2 135.1 136.9 141.0 142.8 142.8 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. 413.1 409.7 413.0 412.0 410.1 414.7 417.5 425.0 431.8 431. 435.9 438.8 441.3 442.0 Final products............ 317.7 317.1 318.5 317.5 314.3 319.0 321.7 327.6 332.5 332.6 334.8 337.5 340.0 340.8 Consumer goods.. . 223.7 224.8 225.1 224.6 222.5 225.5 226.9 231.0 233.9 233.8 233.7 235.0 237.2 237.3 Equipment............... 94.0 92.4 93.3 93.1 91.8 93.7 94.9 96.8 98.5 98 101.2 102.5 102.7 103.5 Intermediate products. 95.5 92.8 94.5 94.3 95.8 96.0 95.9 97.4 99.2 99.5 100.8 101.5 101.4 101.3 For Note see p. A 61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) p 19 r 6 o 7 ­ 1972 1972 1973 por­ aver­ Grouping tion age* Apr. May June July Aug. Sept. Oct. Nov. Dec, Feb.r Mar. Apr. Manufacturing.................................. 88.55 113.1 111 112.3 112.6 113.2 114.1 115.2 116.6 117.4 118.5 118.9 120.4 121.8 122.3 Durable........................................ 52.33 107.4 105.8 106.3 106.8 107.7 108.4 109.7 111.4 112.4 144.1 114.3 116.2 117.5 118.4 Nondurable.................................. 36.22 121.5 120.3 120.8 121.3 121.0 122.6 123.3 124.3 124.7 125.0 125.4 126.6 128.0 128.1 Mining and utilities......................... 11.45 123.8 122.9 122.6 122.7 123.2 123. 125.9 126.2 127.2 126.2 127.7 127.4 125.5 126.1 Mining.......................................... 6.37 108.3 109.0 107.9 108.2 107.9 107.7 110.2 110.0 110.1 108.3 108.4 109.2 106.3 106.0 Utilities......................................... 5.08 143.2 140.2 141.1 140.9 142.5 144.1 145.6 146.6 148.7 148.6 151.9 150.4 149.6 151.4 Durable manufactures Primary and fabricated metals 12.55 113.0 110.4 112.7 112.1 114.5 114.0 116.4 118.4 119.6 122.8 120.2 122.6 123.4 124.2 Primary metals............................ 6.61 112.8 110.2 113.5 111.9 114.9 113.6 117.4 119.3 120.2 126.6 120.6 123.1 122.5 123.4 Iron and steel, subtotal........... 4.23 106.9 105.5 108.3 104.9 107.7 107.3 113.4 114.1 114.3 117.4 114.2 120.2 117.9 117.8 Fabricated metal products........ 5.94 113.3 110.8 111.9 112.3 114.1 114.4 115.2 117.5 118.8 118.6 119.9 122.1 124.1 125.0 Machinery and allied goods............ 32.44 102.1 101.1 101.0 101.6 102.0 103.1 104.1 105.7 107.0 108.7 109.5 111.0 112.6 113.7 Machinery................................... 17.39 105.2 102.6 103.0 104.8 104.8 107.1 108.3 109.6 110.4 113.1 113.7 114.5 117.1 119.6 Nonelectrical machinery........ 9.17 103.1 98.6 100.4 101.8 102.9 106.1 107.0 108.8 110.6 110.5 112.3 113.0 115.3 118.8 Electrical machinery.............. 8.22 107.5 107.1 105.9 108.0 107.1 108.1 109.7 110.4 110.2 116.0 115.2 116.2 119.1 120.5 Transportation equipment........ 9.29 98.9 100.4 98.9 97.4 98.2 98.4 99.8 102.1 105.0 105.9 106.7 110.0 110.3 109.4 Motor vehicles and parts........ 4.56 122.8 125.6 122.6 119.3 121.4 121.6 123.0 127.6 132.0 135.3 137.4 141.5 141.0 138.3 Aerospace and misc. trans. eq 4.73 75.8 76.1 76.1 76.4 75.9 76.0 77.3 77.5 79.0 77.6 77.1 79.7 80.8 81.5 Instruments................................. 2.07 118.7 116.1 117.3 119.3 119.9 120.9 122.4 122.9 123.3 122.6 127.2 129.0 131.0 133.3 Ordnance, private and Govt. 3.69 86.6 87.3 87.6 87.8 88.0 86.2 84.8 86.3 86.9 87.3 86.6 87.2 86.7 86.0 Lumber, clay, and glass................. 4.44 119.7 118.1 118.2 119.0 119.1 119.6 120.5 123.0 122.8 120.9 122.2 125.0 126.7 126.8 Lumber and products................ 1.65 122.7 119.9 119.1 121.8 121.5 121.1 122.8 128.1 128.2 124.3 126.8 128.3 129.3 129.0 Clay, glass, and stone products. 2.79 117.9 117.1 117.5 117.4 117.7 118.7 119.1 120.0 119.7 118.9 119.5 123.1 125.2 125.5 Furniture and miscellaneous........... 2.90 122.6 119.9 120.6 122.1 123.7 126.7 126.6 126.2 126.2 127.0 130.3 132.8 133.4 132.6 Furniture and fixtures................ 1.38 113.1 111.7 110.7 112.8 115.5 117.6 116.7 116.1 117.4 118.5 119.1 122.3 122.8 123.0 Miscellaneous manufactures.... 1.52 131.2 127.4 129.6 130.6 131.0 135.1 135.6 135.4 134.0 134.5 140.5 142.4 143.0 141.2 Nondurable manufactures Textiles, apparel, and leather........ 6.90 106.2 106.1 104.9 105.9 104.8 106.8 108.0 109.1 109.1 110.7 107.7 109.8 111.4 112.6 Textile mill products................. 2.69 114.5 113.5 112.8 113.9 112.7 116.5 116.6 118.5 118.4 119.9 118.4 120.1 122.2 123.2 Apparel products....................... 3.33 104.2 103.3 102.8 103.0 102.2 104.3 105.5 106.8 109.3 109.5 106.0 108.0 Leather and products................ .88 88.1 94.4 89.2 92.2 90.2 86.5 91.6 88.6 80.1 87.4 81.3 85.1 85.0 87.2 Paper and printing.......................... 7.92 115.4 112.3 114.1 115.1 115.2 116.4 115.3 118.6 120.9 120.6 119.9 121.9 122.6 122.0 Paper and products................... 3.18 126.7 124.4 127.2 126.7 126.9 127.8 124.1 127.9 133.3 134.4 132.4 135.0 137.7 13 6.4 Printing and publishing............. 4.74 108.0 104.2 105.3 107.3 107.2 108.7 109.4 112.4 112.6 111.3 111.5 113.0 112.4 112.3 Chemicals, petroleum, and rubber. 11.92 137.5 136.1 137.5 137.1 137.4 139.9 141.1 141.6 140.6 141.5 145.2 144.3 147.2 148.4 Chemicals and products............ 7.86 139.3 137.9 138.9 139.5 139.5 141.3 143.4 143.8 141.5 141.5 145.4 144.4 148.3 147.2 Petroleum products................... 1.80 120.1 117.0 119.5 117.3 119.5 120.4 120.7 124.1 123.4 124.8 129.0 124.1 123.5 127.7 Rubber and plastics products... 2.26 145.0 144.7 146.5 145.0 144.1 150.4 149.6 148.2 151.3 154.4 156.7 160.1 162.9 169.0 Foods and tobacco.......................... 9.48 117.4 117.6 117.1 117.6 116.8 117.6 118.8 117.8 118.9 118.3 118.2 120.9 120.4 119.3 Foods.......................................... 8.81 118.4 118.6 118.5 119.3 118.3 118.3 120.0 118.2 119.4 119.5 119.0 121.7 120.5 119.3 Tobacco products....................... .67 104.4 103.9 99.1 96.4 96.7 108.5 103.0 111. 112.5 102.5 107.9 110.3 118.1 Mining Metal, stone, and earth minerals... 1.26 104.8 104.6 99.4 99.6 95. 101.0 106.5 106.2 113.0 114.6 114. 112.3 111.9 109.9 Metal mining.............................. .51 120 122.2 110.7 102.9 102.2 115.2 123.4 122.3 136.7 141.8 138.6 131.7 129.0 124.9 Stone and earth minerals.......... .75 93.9 92.6 91.7 97.4 91.6 91.4 94.9 95.2 97.0 96.0 98.4 99.1 100.2 99.7 Coal, oil, and gas........................... 5.11 109.2 110.0 109.9 110.5 111.0 109.3 111.1 110.9 109.2 106.8 106.9 108.4 104.9 105.0 Coal............................................ .69 103.2 112.9 105.0 109.1 114.4 97.2 104.2 99.3 101.0 97.1 95.8 103.9 105.7 99.9 Oil and gas extraction............... 4.42 110.2 109.6 110.7 110.7 110.5 111.2 112.1 112.7 110.5 108.2 108.6 109.1 104.8 105.9 Utilities Electric............................................ 3.91 149.1 145.6 147.1 146.8 148.6 150.2 152.0 152.8 155.2 155.2 159.1 156.9 158.0 Gas.................................................. 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. □ JUNE 1973 MARKET GROUPINGS (1967 = 100) p 19 ro 67 - 1972 1972 1973 Grouping p ti o o r n ­ age? Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. r Apr. Total index....................................... 100.00 114.4 113.6 113.4 116.5 109.2 115.4 120.3 121.3 118.7 116.0 117.2 121.5 122.8 123.6 62.21 113.1 111.7 110.8 115.2 109.1 115.2 120.7 120.8 117.1 113.0 115.2 118.8 120.1 120.6 Final products................................... 48.95 111.2 110.2 108.5 113.3 106.3 112.7 118.7 118.6 114.8 111.0 114.1 117.3 118.3 118.6 Consumer goods.......................... 28.53 123.1 122.4 119.6 126.0 117.0 126.5 133.5 132.7 126.0 119.7 124.3 127.9 129.1 129.4 20.42 94.5 93.2 93.1 95.6 91.4 93.4 98.0 99.0 99.2 98.8 99.9 102.7 103.2 103.3 Intermediate products..................... 13.26 120.5 117.4 119.5 122.2 119.2 124.4 128.0 128.7 125.6 120.3 119.4 124.0 126.7 128.2 Materials.............................................. 37.79 116.4 116.6 117.7 118.7 109.4 115.8 119.6 122.1 121.4 120.9 120.6 125.9 127.1 128.6 Consumer goods Durable consumer goods....................... 7.86 125.4 128.8 126.0 129.3 107.4 119.3 133.6 139.8 134.5 124.9 133.3 140.6 143.5 140.6 Automotive products....................... 2.84 127.1 138.2 132.6 133.5 92.8 107.5 136.5 146.3 141.2 123.2 138.5 149.1 151.5 147.7 Autos............................................ 1.87 112.7 128.0 121.3 120.1 61.0 78.4 120.6 135.6 132.9 109.8 134.8 144.6 143.9 135.8 Auto parts and allied goods........ .97 154.7 157.8 154.3 159.3 153.9 163.3 167.1 166.9 157.0 149.0 145.7 157.7 166.0 170.5 Home goods.................................... 5.02 124.5 123.5 122.3 126.9 115.6 126.0 131.9 136.2 130.8 125.8 130.3 135.8 138.9 136.5 Appliances, TV, and home audio. 1.41 124.7 131.9 124.9 125.6 109.6 112.2 127.7 142.8 129.1 122.0 139.7 142.6 149.0 143.2 Appliances and A/C................ .92 144.5 156.6 146.9 147.4 134.9 128.9 143.5 165.0 143.5 134.6 153.7 157.0 166.2 166.5 .49 87.5 85.6 83.7 84.8 62.2 80.9 98.2 101.2 102.2 98.4 115.7 116.9 1.08 132.6 131.8 128.3 132.8 114.4 138.7 139.6 139.7 140.8 140.0 'iii.'o 150.2 149.1 145.1 Misc. home goods....................... 2.53 121.0 115.3 118.2 125.2 119.5 128.3 130.9 131.1 127.6 121.9 120.4 125.9 129.0 129.2 Nondurable consumer goods................ 20.67 122.2 119.9 117.1 124.7 120.6 129.2 133.4 130.0 122.7 117.7 120.9 123.1 123.6 125.1 Clothing............................................ 4.32 107.8 113.2 102.7 113.2 97.2 113.5 116.9 114.7 108.2 100.1 102.9 114.1 Consumer staples............................. 16.34 126.0 121.7 120.9 127.8 126.8 133.4 137.8 134.0 126.5 122.3 125.6 125.4 126. i 126.4 Consumer foods and tobacco.... 8.37 117.4 114.8 114.7 120.8 115.8 123.9 128.7 125.4 118.7 111.0 111.9 114.8 117.1 117.5 Nonfood staples........................... 7.98 135.0 128.9 127.4 135.1 138.3 143.4 147.3 143.0 134.6 134.2 140.0 136.6 135.5 135.6 Consumer chemical products.. 2.64 144.3 142.3 143.9 152.3 146.9 148.4 159.3 158.3 143.8 132.5 138.6 138.9 140.4 145.2 Consumer paper products....... 1.91 114.7 110.3 107.9 116.2 114.2 120.4 122.8 124.9 118.5 113.4 112.3 110.5 115.5 117.9 Consumer fuel and lighting... 3.43 139.2 129.0 125.5 132.4 145.1 152.4 151.6 141.3 136.4 147.2 156.6 149.5 143.1 138.1 Residential utilities............... 2.25 147.5 136.3 128.7 137.5 154.6 165.3 163.8 148.1 141.4 156.6 170.5 162.4 154.1 145.3 Equipment Business equipment............................... 12.74 104.3 102.3 102.2 105.6 99.5 103.2 110.2 111.2 110.7 109.3 112.1 116.1 117.1 117.5 Industrial equipment....................... 6.77 99.3 95.7 95.7 99.0 96.0 99.5 105.2 105.5 106.3 106.4 107.7 111.2 111.9 112.8 Building and mining equip.......... 1.45 101.9 99.0 96.3 101.4 98.0 102.3 107.5 107.1 108.4 109.9 107.6 110.3 108.4 110.6 Manufacturing equipment......... 3.85 88.6 84.8 85.5 88.2 85.2 89.2 93.6 94.9 96.6 97.7 99.7 104.4 105.8 105.6 Power equipment......................... 1.47 124.6 121.2 121.8 124.9 122.3 123.7 133.2 131.8 129.4 125.8 128.8 129.9 131.2 134.0 Commercial, transit, farm eq.......... 5.97 110.0 109.8 109.6 113.0 103.4 107.4 115.8 117.7 115.6 112.5 117.0 121.7 122.9 122.8 Commercial equipment................ 3.30 117.8 112.2 114.7 121.9 120.2 122.0 127.2 124.8 123.6 120.4 121.9 125.0 126.3 128.9 Transit equipment....................... 2.00 96.7 104.8 100.9 97.9 78.2 85.2 95.2 104.0 104.6 99.2 108.1 114.8 114.9 111.2 Farm equipment.......................... .67 110.6 113.2 110.0 114.4 95.2 101.0 120.8 123.2 109.0 113.2 118.9 126.2 129.7 126.8 Defense and space equipment.............. 7.68 78.2 78.0 78.1 78.9 77.9 77.1 77.7 78.7 80.0 81.3 79.6 80.3 80.2 79.8 Military products............................. 5.15 80.6 81.1 81.3 81.7 81.0 79.3 79.2 80.0 81.4 82.0 81.0 81.7 81.5 80.7 Intermediate products Construction products......................... 5.93 119.7 118.9 120.6 121.9 117.9 120.5 125.5 128.4 124.5 118.0 117.1 123.7 128.4 131.0 Misc. intermediate products............... 7.34 121.1 116.2 118.7 122.4 120.3 127.5 130.0 129.0 126.5 122.1 121.3 124.1 125.3 125.9 Materials Durable goods materials...................... 20.91 112.1 112.4 113.8 114.8 103.8 109.9 116.8 118.7 118.1 119.5 118.5 125.0 127.1 129.0 Consumer durable parts................. 4.75 113.1 112.9 113.3 112.5 98.5 107.8 117.2 119.4 120.9 125.5 125.0 127.9 127.9 130.2 5.41 97.1 96.5 95.9 98.9 92.2 95.5 101.7 102.3 102.7 104.7 104.6 109.1 112.4 114.6 Durable materials n.e.c................... 10.75 119.3 120.1 123.1 123.9 111.9 118.1 124.3 126.6 124.7 124.4 122.6 131.8 134.1 135.8 Nondurable goods materials................. 13.99 121.7 121.8 123.0 124.2 116.6 123.3 122.8 126.7 126.0 123.0 123.4 127.3 127.7 128.9 Textile, paper, and chem. mat......... 8.58 128.0 128.5 129.6 130.9 120.9 130.1 129.1 133.4 134.2 130.6 132.1 138.9 140.0 141.7 Nondurable materials n.e.c............. 5.41 111.6 111.2 112.6 113.6 109.9 112.6 112.8 116.0 113.1 110.9 109.5 108.9 108.1 108.6 Fuel and power, industrial................. 2.89 121.2 121.8 120.7 120.8 115.2 121.7 124.0 124.4 123.5 120.4 122.8 125.6 124.6 124.0 Supplementary groups Home goods and clothing................... 9.34 116.8 118.7 113.2 120.6 107.1 120.2 125.0 126.3 120.3 113.9 117.6 125.8 127.5 129.2 Containers............................................ 1.82 126.8 127.9 128.9 134.2 123.1 130.0 128.0 134.4 133.0 125.0 129.4 140.6 142.8 143.2 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1967 1972 1972 1973 pro­ por­ aver­ Grouping tion age* Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. Manufacturing, total....................... 88.55 113.1 112.7 112.7 115.7 107.0 113.5 118.9 120.6 118.1 114.8 115.9 121.3 123.0 123.5 Durable....................................... 52.33 107.4 107.5 107.6 109.4 100.2 105.1 111.9 114.4 113.1 111.4 112.8 118.4 120.1 120.6 Nondurable................................. 36.22 121.5 120.2 120.0 124.9 116.9 125.7 128.9 129.6 125.4 119.7 120.3 125.5 127.1 127.9 Mining and utilities......................... 11.45 123.8 120.4 120.0 122.9 124.6 130.0 130.8 126.3 123.5 124.8 128.3 127.5 123.7 122.6 Mining........................................ 6.37 108.3 108.8 109.9 109.7 105.5 109.2 110.8 110.7 109.5 108.0 105.8 108.3 104.4 105.4 Utilities....................................... 5.08 143.2 134.9 132.6 139.4 148.6 156.2 155.9 146.0 141.1 146.0 156.6 151.6 148.0 144.4 Durable manufactures Primary and fabricated metals.... 12.55 113.0 114.3 115.7 115.0 105.1 109.1 116.0 119.7 119.0 120.2 118.8 127.1 129.4 129.9 Primary metals........................... 6.61 112.8 117.2 118.9 116.5 101.6 106.9 114.8 119.4 117.6 121.7 118.9 129.6 132.7 133.9 Iron and steel, subtotal.......... 4.23 106.9 113.2 114.3 108.6 98.3 101.2 108.1 113.4 110.9 114.2 112.4 126.0 128.8 130.3 Fabricated metal products........ 5.94 113.3 111.1 112.2 113.3 109.0 111.5 117.4 120.1 120.5 118.6 118.6 124.3 125.7 125.4 Machinery and allied goods............ 32.44 102.1 102.3 101.7 104.0 94.4 98.7 106.7 108.9 107.9 106.4 109.4 113.2 114.6 114.9 Machinery................................... 17.39 105.2 103.4 102.9 107.0 100.0 104.1 111.4 112.7 110.5 110.3 112.8 117.0 119.0 120.4 Nonelectrical machinery........ 9.17 103.1 99.8 100.9 104.7 100.5 103.3 109.4 109.6 109.1 109.2 110.8 116.7 118.4 119.6 Electrical machinery.............. 8.22 107.5 107.4 105.1 109.5 99.5 105.0 113.6 116.1 112.1 111.6 115.0 117.4 119.7 121.4 Transportation equipment........ 9.29 98.9 103.8 101.7 100.8 81.0 88.3 102.0 107.0 107.9 103.0 108.7 113.5 114.0 112.9 Motor vehicles and parts.... 4.56 122.8 131.8 128.1 126.0 87.8 102.3 127.1 137.2 137.9 128.9 142.6 148.6 147.3 144.7 Aerospace and misc. trans. eq, 4.73 75.8 76.8 76.3 76.6 74.5 74.9 77.8 77.9 78.9 78.1 76.0 79.6 82.0 82.2 Instruments................................. 2.07 118.7 112.5 116.1 121.8 119.9 123.4 127.3 126.5 123.9 122.5 123.5 125.3 128 129.2 Ordnance, private and Govt.... 3.69 86.6 87.3 87.8 88.2 87.3 85.2 84.5 85.7 87.0 87.7 87.1 87.5 87.4 86.0 Lumber, clay, and glass.................. 4.44 119.7 118.5 120.4 124.1 119.2 125.7 126.3 129.0 122.6 112.9 112.1 121.0 124.9 127.8 Lumber and products................ 1.65 122.7 122.1 121.8 126.5 120.5 125.9 128.8 132.8 124.7 111.6 115.5 128.2 130.3 131.2 Clay, glass, and stone products. 2.79 117.9 116.3 119.6 122.7 118.4 125.6 124.8 126.7 121.4 113.7 110.1 116.8 121.7 125.8 Furniture and miscellaneous........... 2.90 122.6 119.1 118.1 123.7 114.5 127.5 131.0 131.1 130.7 126.7 126.1 134.3 133.9 131.9 Furniture and fixtures................ 1.38 113.1 111.6 108.7 112.1 100.4 115.7 117.9 118.8 120.9 119.7 121.6 128.7 127.3 123.4 Miscellaneous manufactures.... 1.52 131.2 125.9 126.6 134.3 127.3 138.2 142.9 142.2 139.6 133.2 130.2 139.4 139.9 139.5 Nondurable manufactures Textiles, apparel, and leather........ 6.90 106.2 109.9 103.9 110.9 94.4 111. 4 112 112.2 107.5 101.0 102.6 112.8 114.8 115.4 Textile mill products................. 2.69 114.5 115.9 115.8 119.0 102.0 120.7 120.4 120.9 118.4 112.4 111.3 121.9 124.7 125.8 Apparel products....................... 3.33 104.2 109.5 98.7 109.1 92.5 109.2 112.1 110.2 105.8 96.4 101.3 111.8 Leather and products................. 88.1 93.3 87.3 92.8 78.2 91.3 92.0 92.8 80.7 83.3 80.6 88.7 89.9 86.2 Paper and printing.......................... 7.92 115.4 112.9 114.1 117.9 111.5 120.0 120.7 124.9 122.6 114.1 113.4 119.0 120.6 122.7 Paper and products................... 3.18 126.7 128.1 128.5 130.2 116.1 127.5 123.7 134.5 134.4 124.3 130.8 138.4 139.5 140.5 Printing and publishing............. 4.74 108.0 102.7 104.4 109.6 108.4 114.9 118.6 118.5 114.7 107.3 101.7 106.0 107.9 110.7 Chemicals, petroleum, and rubber.. 11.92 137.5 135.8 138.0 141.4 134.7 140.3 144.9 145.6 141.9 139.2 140.8 144.3 146.5 148.1 Chemicals and products............ 7.86 139.3 138.9 140.7 144.2 138.7 142.4 147.1 146.7 142.1 138.5 140.3 143.2 146.5 148.2 Petroleum products................... 1.80 120.1 112.1 118.4 121.5 123.8 125.7 126.3 126.3 122.5 122.9 123.7 120.9 119.5 122.1 Rubber and plastics products... 2.26 145.0 144.1 144.0 147.6 129.3 144.4 152.3 156.9 156.7 154.7 156.4 167.0 167.8 168.3 Foods and tobacco.......................... 9.48 117.4 114.2 114.1 120.1 115.2 122.7 127.5 126.0 120.0 113.3 113.2 116.5 116.9 115.8 Foods.......................................... 8.81 118.4 115.3 115.3 121.4 117.4 123.2 128.9 126.4 120.5 115.4 113.6 116.7 116.8 116.0 Tobacco products....................... .67 104.4 99.4 98.1 103.0 86.3 116.7 109.4 120.4 113.4 86.0 107.7 113.5 118.3 Mining Metal, stone, and earth minerals... 1.26 104.8 105.3 110.8 111.6 102.2 108.7 113.1 110.2 106.1 103.8 98.8 101.0 104.3 109.5 Metal mining.............................. .51 120.8 123.5 131.5 129.6 116.7 128.4 133.5 123.2 114.8 114.6 113.8 120.4 119.8 123.7 Stone and earth minerals.......... .75 93.9 92.8 96.7 99.3 92.3 95.4 99.2 101.3 100.3 96.4 88.6 87.8 93.8 99.9 Coal, oil, and gas.......................... 5.11 109.2 109.7 109.7 109.2 106.3 109.3 110.3 110.8 110.3 109.1 107.5 110.1 104. 104.4 Coal............................................. .69 103.2 114.9 107.1 104.8 87.6 103.5 106.9 106.1 103.2 96.5 94.7 104.2 104.3 101.7 Oil and gas extraction................ 4.42 110.2 108.9 110.1 109.9 109.2 110.2 110.8 111.6 111.4 111.1 109.5 111.0 104.4 104.8 Utilities Electric............................................ 3.91 149.1 138.5 136.4 144.9 156.5 166.0 165.4 152.0 151.6 165.1 153.8 Gas.................................................. 1.17 Note.—Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 BUSINESS ACTIVITY; CONSTRUCTION □ JUNE 1973 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Products tion struc­ tural Total Period Total Total C Fi o n n a ­ l m In ed te ia r­ te M ri a al t s e­ f M a i c a n t n g u u r­ ­ i o = ( n u 1 1 m 9 tp 0 6 f u 0 7 g ) t . tr c t a i o o c n t n s ­ T m p e o e l m o t n a y t ­ l — ­ i p m E lo e m n y ­ t ­ P ro a l y ls ­ s r a e l t e ai s l 3 s C um on e ­ r m W c s o o a h d m l o e i l t ­ e y ­ Total sumerEquip­ goods ment 1953..................... 95.5 76.3 98.2 60.3 54 80.1 87.4 1954..................... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955..................... 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956..................... 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957..................... 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958..................... 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959..................... 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960..................... 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 82.4 88.0 68.8 70 88.7 94.9 1961..................... 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.1 84.5 68.0 70 89.6 94.5 1962..................... 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963..................... 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964..................... 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965..................... 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966..................... 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 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 •■75.0 132.0 107.3 93.9 116.3 122 121.2 113.9 1972*................... 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—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 r77.6 165.0 '110.1 '96.3 128.0 142 124.7 118.2 June......... 113.4 112.0 110.1 122.1 93.3 119.1 116.1 112.6 154.0 '110.4 '96.7 128.9 141 125.0 118.8 July.......... 113.9 112.2 110.1 122.0 93.4 120.5 116.8 113.2 155.0 '110.4 '96.5 127.7 143 125.5 119.7 Aug.......... 115.0 113.3 111.3 123.1 94.8 121.2 117.4 114.1 78.4 180.0 '110.9 '97.0 131.2 145 125.7 119.9 Sept.......... 116.1 114.4 112.4 124.4 95.8 121.7 119.1 115.2 187.0 '111.3 '97.5 133.8 144 126.2 120.2 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 >•112.1 '99.1 139.0 148 126.9 120.7 Dec........... 119.2 117.5 115.3 126.7 99.4 125.7 122.0 118.5 163.0 112.4 '99.6 139.3 151 127.3 122.9 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 >•128.3 r102.0 *■127.4 >•124.0 '120.4 81.4 191.0 113.5 '100.7 142.9 158 128.6 126.9 Mar. r. . . . 122.0 120.1 118.1 129.4 102.3 127.6 125.0 121.8 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr.'....... 122.8 120.7 118.7 129.6 103.4 127.9 126.5 122.3 177.0 114.0 101.5 144.9 157 130.7 130.7 May*....... 123.4 121.4 119.4 130.5 103.8 129.2 126.8 123.2 114.2 101.5 145.0 133.5 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, and heavy engineering; does r»:>t include data for Alaska and Hawaii. Note.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; 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 2,046 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 6,599 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 '2,071 (In thousands, S.A., A.R.) 1 Because of improved procedures for collecting data for 1-family homes, Note.—Dollar value of construction contracts as reported by the F. W. some totals are not strictly comparable with those prior to 1968. To im­ Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly prove comparability, earlier levels may be raised by approximately 3 per data exceed annual totals because adjustments—negative—are made in cent for total and private construction, in each case, and by 8 per cent for accumulated monthly data after original figures have been published. 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

JUNE 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 Buildings Other Total M ta i r l y i­ H w ig ay h­ d C v e o a v n t & e i s o l e o n r p ­ ­ Other 2 In tr d ia u l s­ m C e o r m cia ­ l b O u t i h l e d r ­ ment 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—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.. 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 Apr. 136,410 102,575 59,244 43,331 33,835 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Census Bureau data; monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R .) Government- Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1963.......................... 1,603 261 328 591 430 1,012 5189 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—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 19 12 7 41 Feb.r............ 2,456 366 571 1,087 434 1,372 123 961 140 138 2 21 14 7 43 Mar.r............ 2,248 288 415 1,136 409 1,247 123 878 200 199 1 28 20 8 57 Apr .. 2,103 286 383 880 554 1,191 140 772 203 203 62 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 □ JUNE 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a t u .S u l l t a . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce T ( l f a S o o b . r A t c o a e r . l ) Total Employed1 Unem­ U ( n p e m r e a m r e c te p n e 2 l t n o t y ; ­ Total In c n u o lt n u a ra g l r i- In ployed S.A.) industries agriculture 1967 .......................... 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 1968.......................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969........................... 137,841 53,602 84,240 80,734 77,902 74,296 3,606 2,832 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1971........................... 142,596 55,666 86,929 84,113 79,120 75,732 3,387 4,993 5.9 1972........................... 145,775 56,785 88,991 86,542 81,702 78,230 3,472 4,840 5.6 1972—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 May............... 147,940 58,050 90,739 88,405 84,024 80,749 3,275 4,381 5.0 1 Includes self-employed, unpaid family, and domestic service workers. to the calendar week that contains the 12th day; annual data are averages 2 Per cent of civilian labor force. of monthly figures. Description of changes in series beginning 1967 is Note.—Bureau of Labor Statistics. Information relating to persons 16 available from Bureau of Labor Statistics. years of age and over is obtained on a sample basis. Monthly data relate 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 1967......................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969.......................................................... 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 1970.......................................................... 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 1971.......................................................... 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 1972......................................................... 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 SEASONALLY ADJUSTED 1 1972—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.............................................. 74,914 19,643 610 3,604 4,580 16,163 4,024 12,716 13,574 Apr.*............................................ 75,074 19,724 604 3,567 4,592 16,201 4,030 12,743 13,613 May*............................................ 75,222 19,740 600 3,617 4,603 16,217 4,040 12,759 13,646 NOT SEASONALLY ADJUSTED 1972—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 19,521 598 3,294 4,539 15,880 4,000 12,627 13,796 Apr.*............................................ 74,831 19,583 599 3,439 4,560 16,072 4,018 12,768 13,792 May*............................................ 75,303 19,623 600 3,613 4,603 16,161 4,036 12,848 13,819 1 Data revised back to 1968. persons, domestic servants, unpaid family workers, and members of Note.—Bureau of Labor Statistics; data include all full- and part- Armed Forces are excluded, time employees who worked during, or received pay for, the pay pe- Beginning with 1970, series has been adjusted to Mar. 1971 benchriod that includes the 12th of the month. Proprietors, self-employed mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 ,2 Not seasonally adjusted * Industry group 1972 1973 1972 1973 May Mar. Apr.* May* May Mar. Apr.* May* 13,775 14,451 14,527 14,525 13,676 14,345 14,398 14,425 Durable goods.................................................................. 7,863 8,425 8,487 8,503 7,846 8,397 8,455 8,484 Ordnance and accessories...................................... 92 102 102 100 91 102 99 98 Lumber and wood products.................................. 524 543 541 533 520 530 529 529 Furniture and fixtures............................................ 403 428 431 431 398 425 426 425 Stone, clay, and glass products............................. 526 550 552 555 525 537 547 555 Primary metal industries........................................ 975 1,027 1,034 1,043 986 1,035 1,046 1,054 Fabricated metal products..................................... 1,045 1,108 1,118 1,121 1,040 1,102 1,110 1,116 Machinery............................................................... 1,223 1,343 1,357 1,362 1,224 1,355 1,367 1,363 Electrical equipment and supplies......................... 1,222 1,349 1,363 1,372 1,211 1,341 1,351 1,360 Transportation equipment..................................... 1,252 1,334 1,351 1,344 1,255 1,341 1,351 1,347 Instruments and related products......................... 272 298 296 299 271 297 294 298 329 343 342 343 325 333 335 339 Nondurable goods........................................................... 5,912 6,026 6,040 6,022 5,830 5,948 5,943 5,941 Food and kindred products................................... 1,181 1,181 1,179 1,169 1,119 1,110 1,104 1,108 Tobacco manufactures........................................... 62 63 63 63 54 58 56 55 Textile-mill products.............................................. 868 900 900 898 865 899 898 896 Apparel and related products............................... 1.163 1,174 1,181 1,171 1,163 1,183 1,178 1,171 Paper and allied products...................................... 538 554 552 556 532 549 549 550 Printing, publishing, and allied industries............ 657 661 665 663 655 663 665 662 Chemicals and allied products............................... 580 592 593 595 579 592 595 594 Petroleum refining and related industries.............. 117 114 115 114 117 114 113 114 Rubber and misc. plastic products......................... 482 531 536 538 480 529 533 537 Leather and leather products................................. 264 253 256 255 264 252 253 255 1 Data adjusted to 1971 benchmark. Note.—Bureau of Labor Statistics; data cover production and related 2 Data revised back to 1968. 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, 2 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 May Mar. Apr.* May* May Mar. Apr.* May* May Mar. Apr.* May* 40.5 40.9 41.0 40.8 153.09 162.38 163.61 164.02 3.78 3.98 4.01 4.02 Durable goods..................................................... 41.2 41.6 41.8 41.8 165.62 175.97 177.22 178.90 4.02 4.23 4.26 4.28 Ordnance and accessories.......................... 42.0 42.4 42.0 42.0 170.94 177.64 176.40 177.66 4.07 4.17 4.20 4.23 Lumber and wood products...................... 41.0 41.0 41.0 40.9 135.88 141.92 142.68 144.61 3.29 3.47 3.48 3.51 Furniture and fixtures................................ 40.5 40.6 40.5 40.5 121.81 128.56 128.08 129.85 3.03 3.19 3.21 3.23 Stone, clay, and glass products................. 41.9 42.3 42.5 42.3 162.54 171.35 174.26 175.11 3.87 4.07 4.11 4.13 Primary metal industries............................ 41.3 42. 1 42.3 42.6 191.32 206.42 209.59 211.86 4.61 4.88 4.92 4.95 Fabricated metal products......................... 41.1 41.7 41.9 41.8 162.74 172.23 174.30 175.98 3.95 4.15 4.19 4.20 Machinery................................................... 41.8 42.6 42.6 42.7 177.23 191.33 191.25 193.00 4.24 4.46 4.50 4.52 Electrical equipment and supplies............. 40.4 40.6 40.7 40.9 146.69 153.87 153.92 155.45 3.64 3.79 3.81 3.81 Transportation equipment......................... 41.8 42.0 43.6 42.2 197.82 208.32 213.43 212.42 4.71 4.96 5.01 5.01 Instruments and related products.............. 40.6 40.7 40.8 41.2 150.26 155.47 155.47 157.41 3.71 3.82 3.82 3.83 Miscellaneous manufacturing industries... 39.4 39.3 38.9 38.9 121.83 126.94 125.26 125.71 3.10 3.23 3.22 3.24 Nondurable goods............................................... 39.6 39.8 39.8 39.6 135.88 142.96 143.39 143.78 3.44 3.61 3.63 3.64 Food and kindred products....................... 40.4 40.2 40.1 40.2 145.12 149.67 149.31 152.80 3.61 3.77 3.78 3.82 Tobacco manufactures............................... 33.8 36.0 36.5 35.5 116.92 128.39 134.87 134.82 3.49 3.70 3.81 3.83 Textile-mill products.................................. 41.3 41.3 41.6 40.9 111.38 118.66 119.77 117.62 2.71 2.88 2.90 2.89 Apparel and related products.................... 35.7 36.2 36.2 36.1 91.49 99.10 98.91 97.92 2.57 2.73 2.74 2.72 Paper and allied products.......................... 42.6 43.1 42.8 42.7 164.09 174.62 175.09 174.68 3.87 4.08 4.11 4.11 Printing, publishing, and allied industries. 37.7 38.0 38.0 37.8 168.07 174.80 174.64 175.31 4.47 4.60 4.62 4.65 Chemicals and allied products................... 41.6 42.0 41.9 42.0 173.06 183.12 184.40 185.22 4.16 4.36 4.38 4.41 Petroleum refining and related industries . 42.1 42.0 41.8 42.1 209.39 213.21 219.98 226.31 4.95 5.15 5.25 5.35 Rubber and misc. plastic products............ 41.0 41.5 41.5 40.9 145.55 154.05 155.29 152.56 3.55 3.73 3.76 3.73 Leather and leather products..................... 38.5 37.9 38.3 37.9 104.88 105.28 104.90 107.06 2.71 2.80 2.79 2.81 1 Data adjusted to 1971 benchmark. Note.—Bureau of Labor Statistics; data are for production and related 2 Seasonnally adjusted data revised back to 1968. workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 PRICES □ JUNE 1973 CONSUMER PRICES (1967 = 100) Housing Health and rccreation Fur­ Apparel Trans­ Period it A em ll s Food Total Rent H ow s o h m n ip e e r - ­ F c 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 i p a n i n e s g r h d s a ­ ­ up a k n e d ep p t o io rt n a­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ s r tion tion ices 1929.......................... 51.3 48.3 76.0 48.5 1933.......................... 38.8 30.6 54.1 36.9 1941.......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945.......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 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—Apr............... 124.3 122.4 128.2 fll8.4 138.5 118.6 120.2 120.5 121.8 118.6 125.5 131.7 119.1 122.3 125.1 May.............. 124.7 122.3 128.5 fl 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 fl19.0 139.6 117.8 120.3 121.0 122.1 119.8 126.1 132.4 120.0 122.9 125.6 July............... 125.5 124.2 129.5 t119.2 140.7 117.7 120.3 121.1 121.1 120.3 126.3 132.7 120.0 123.0 125.8 Aug............... 125.7 124.6 129.9 fl19.6 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 Sept............... 126.2 124.8 130.1 119.9 141.5 118.0 120.5 121.6 123.1 121.0 126.8 133.1 120.5 123.7 126.2 Oct................. 126.6 124.9 130.4 120.3 141.8 118.1 120.9 121.8 124.3 121.2 127.2 133.9 120.8 124.0 126.4 Nov............... 126.9 125.4 130.8 120.5 142.0 119.3 122.2 122.1 125.0 121.4 127.4 134.1 121.0 124.1 126.4 Dec............... 127.3 126.0 131.2 121.0 142.6 119.4 122.5 122.3 125.0 121.3 127.5 134.4 121.5 124.0 126.5 1973—Jan................ 127.7 128.6 131.4 121.5 142.6 120.7 124.1 122.2 123.0 121.0 127.8 134.9 121.8 124.1 126.7 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 Apr............... 130.7 136.5 132.8 123.0 143.6 128.3 125.5 123.6 125.8 122.6 129.2 136.2 123.8 125.2 128.2 t Indexes affected by changes (refunds) in residential telephone series in Note.—Bureau of Labor Statistics index for city wage-earners and California and by retroactive rent increases in New York City. clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100, except as noted) Industrial commodities Pro­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u e tc m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c M a q e h n r u i a y n d i ­ p ­ ­ F t e u u t r r c n e . , i­ N t e m m a r o l a i l e n n i l - c s ­ - T e p m t q r o i a e o u r n n n t ip a s t ­ ­ 1 ­ n c M e e o l i l u s a ­ s ­ ment 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 ‘io6.*8105.2 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5109.9 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............................. 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8114.6 1972—May................. 118.2 122.2 118.6 117.6 113.3 129.5 117.5 104.4 108.8 142.7 113.2 123.6 117.9 111.1 125.9 113.8 114.1 June................. 118.8 124.0 119.6 117.9 113.6 130.9 118.2 104.3 108.9 144.2 113.5 123.6 118.1 111.2 125.8 114.2114.2 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 May................. 133.5 170.4 145.0 125.8 122.3 142.2 135.5 109.3 111.5 186.9 120.7 131.7 121.5 115.1 130.5 115.1 119.5 1 Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1972 1973 1972 1973 Group Group May Mar. Apr. May May Mar. Apr. May Farm products: Pulp, paper, and allied products: Fresh and dried produce................... 120.6 158.5 176.0 186.0 Pulp, paper and products, excluding Grains.................................................. 97.5 126.1 130.9 149.9 building paper and board........... 113.4 118.6 120.2 121.1 Livestock............................................. 139.8 194.4 184.1 188.7 Woodpulp........................................ 111.5 111.5 122.2 122.4 Live poultry........................................ 96.3 164.8 185.8 180.3 Wastepaper...................................... 130.5 136.9 149.3 168.1 Plant and animal fibers...................... 130.1 152.7 154.7 171.4 Paper................................................ 115.9 119.2 120.2 120.8 Fluid milk........................................... 122.5 130.3 130.4 132.9 Paperboard....................................... 105.8 110.7 113.0 114.6 Eggs..................................................... 90.6 152.6 144.9 137.1 Converted paper and paperboard.. 113.3 120.0 120.4 121.0 Hay and seeds..................................... 116.9 188.1 186.9 243.0 Building paper and board.............. 106.5 108.5 109.3 110.8 Other farm products........................... 119.5 143.3 142.1 146.0 Processed foods and feeds: Metals and metal products: Cereal and bakery products.............. 113.3 121.3 123.7 124.3 Meat, poultry, and fish...................... 126.8 165.1 163.2 162.5 Iron and steel..................................... 128.3 133.3 134.0 135.3 Dairy products................................... 117.4 126.8 127.2 126.5 Steelmill products............................. 130.7 133.2 133.7 134.1 Processed fruits and vegetables......... 119.0 126.2 126.6 127.2 Nonferrous metals............................. 117.8 128.3 131.4 133.2 Sugar and confectionery.................... 120.8 125.7 126.9 129.0 Metal containers............................... 127.3 135.7 135.7 135.7 Beverages and beverage materials... 117.2 120.8 121.4 121.9 Hardware........................................... 120.2 122.1 122.8 123.3 Animal fats and oils........................... 127.3 174.1 176.7 195.0 Plumbing equipment......................... 119.0 123.3 124.8 125.8 Crude vegetable oils........................... 112.8 139.3 145.0 153.1 Heating equipment........................... 118.1 119.5 120.5 120.2 Refined vegetable oils......................... 119.6 132.5 136.1 147.0 Fabricated structural metal products 122.0 125.0 125.7 126.7 Vegetable oil end products................ 120.7 127.0 125.6 131.6 Miscellaneous metal products.......... 124.4 126.7 127.3 128.3 Miscellaneous processed foods.......... 115.0 118.7 118.7 118.9 Manufactured animal feeds............... 108.4 182.3 166.7 211.3 Textile products and apparel: Machinery and equipment: Cotton products................................. 121.5 130.0 133.3 137.4 Agricultural machinery and equip... 122.3 124.7 124.7 125.0 Wool products.................................... 98.3 127.7 129.8 127.5 Construction machinery and equip.. 125.6 128.6 130.4 130.9 Manmade fiber textile products.... 108.0 115.2 118.7 121.5 Metalworking machinery and equip, 120.0 123.4 124.5 125.2 Apparel................................................ 114.3 117.0 117.7 118.4 General purpose machinery and Textile housefumishings.................... 109.3 110.5 110.5 110.5 equipment....................................... 122.2 124.9 125.6 126.4 Miscellaneous textile products.......... 129.8 120.4 121.9 127.4 Special industry machinery and equipment...................................... 123.5 127.0 128.5 129.0 Hides, skins, leather, and products: Electrical machinery and equip........ 110.5 111.3 111.7 112.3 Miscellaneous machinery................. 120.3 122.4 123.1 124.4 Hides and skins.................................. 200.3 246.4 270.2 253.5 Leather................................................ 137.8 164.5 161.1 159.7 Footwear............................................. 124.6 131.1 131.5 129.3 Other leather products....................... 115.3 129.4 129.9 129.1 Furniture and household durables: Fuels and related products, and power: Household furniture........................ 117.1 120.0 121.8 122.3 Commercial furniture..................... 119.4 123.8 123.8 130.6 Coal..................................................... 191.2 207.4 213.8 214.2 Floor coverings............................... 98.2 101.1 101.7 102.5 Coke.................................................... 155.3 164.6 166.9 167.2 Household appliances..................... 107.2 108.4 108.3 108.0 Gas fuels............................................. 113.0 118.9 120.1 121.4 Home electronic equipment............ 92.9 92.2 92.2 92.2 Electric power.................................... 121.2 126.8 127.6 128.2 Other household durable goods... 125.0 129.1 130.3 130.8 Crude petroleum................................. 113.2 114.9 117.1 122.0 Petroleum products, refined.............. 107.3 119.4 127.9 133.9 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals........................... 101.4 101.9 102.6 102.7 Flat glass.......................................... 121.5 124.1 124.1 124.4 Prepared paint.................................... 118.3 119.9 120.3 120.8 Concrete ingredients....................... 126.7 129.9 131.6 131.4 Paint materials................................... 103.5 107.7 108.9 110.4 Concrete products........................... 125.1 129.6 130.8 131.5 Drugs and pharmaceuticals............... 102.8 103.8 103.8 104.0 Structural clay products excluding Fats and oils, inedible....................... 116.0 173.9 184.0 232.0 refractories................................... 117.2 122.2 123.0 123.6 Agricultural chemicals and products. 92.1 93.6 94.5 94.7 Refractories..................................... 127.1 136.3 136.3 136.3 Plastic resins and materials................ 88.6 90.5 91.3 92.4 Asphalt roofing............................... 131.2 131.2 134.1 136.6 Other chemicals and products.......... 114.1 115.1 116.3 117.7 Gypsum products............................ 113.4 118.1 119.6 120.4 Glass containers............................... 136.2 136.4 136.8 136.8 Rubber and plastic products: Other nonmetallic minerals............ 128.4 128.3 128.5 129.1 Rubber and rubber products............ 113.0 115.5 115.7 117.1 Crude rubber................................... 98.6 107.2 108.5 108.9 Tires and tubes............................... 108.4 109.3 109.4 110.0 Transportation equipment:1 Miscellaneous rubber products.... 120.4 122.5 122.5 124.7 Plastic construction products (Dec. Motor vehicles and equipment. 118.1 118.6 119.0 119.1 1969 = 100).......................................... 93.3 93.9 93.8 94.0 Railroad equipment................... 129.6 132.7 133.4 134.3 Unsupported plastic film and sheeting (Dec. 1970= 100)............................... 98.5 99.1 99.2 99.2 Laminated sheets, high pressure (Dec. 1970= 100)............................... 98.4 95.2 96.6 97.2 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................... 114.1 117.1 117.2 117.3 Lumber................................................ 157.0 195.8 207.2 215.4 Tobacco products............................. 117.5 121.8 122.0 122.3 Millwork............................................. 127.6 134.8 141.2 146.5 Notions.............................................. 111.7 113.1 113.1 114.5 Plywood.............................................. 130.3 176.8 182.5 177.7 Photographic equipment and supplies 106.2 108.5 108.4 108.2 Other wood products......................... 122.7 140.9 147.4 149.6 Other miscellaneous products.......... 114.9 119.9 122.2 124.7 i Dec. 1968 = 100. 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 □ JUNE 1973 GROSS NATIONAL PRODUCT (In billions of dollars) l 1972 1973 Item 1929 1933 1941 1950 1968 1969 1970 1971 1972 I II III IV I Gross national product..................................... 103.1 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,109.11.139.41.164.01.194.91,237.9 101.4 57.2 120.1 278.0 857.1 922.5 971.51,046.71.145.91,108.61,134.41,156.01,184.61,231.0 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 536.2 579.5 616.8 664.9 721.0 696.1 713.4 728.6 745.7 773.6 Durable goods.............................................. 9.2 3.5 9.6 30.5 84.0 90.8 90.5 103.5 116.1 111.0 113.9 118.6 120.8 130.4 Nondurable goods........................................ 37.7 22.3 42.9 98.1 230.8 245.9 264.4 278.1 299.5 288.3 297.2 302.0 310.4 322.6 30.3 20.1 28.1 62.4 221.3 242.7 261.8 283.3 305.4 296.7 302.4 308.0 314.5 320.6 Gross private domestic investment................... 16.2 1.4 17.9 54.1 126.0 139.0 137.1 152.0 180.4 168.1 177.0 183.2 193.4 199.7 14.5 3.0 13.4 47.3 118.9 131.1| 132.2 148.3 174.5 167.7 172.0l 175.2 183.1 192.9 10.6 2.4 9.5 27.9 88.8 98.5 100.9 105.8 120.6 116.1 119.2\ 120.7 126.1 133.5 Structures.............................................. 5.0 .9 2.9 9.2 30.3 34.2I 36.0 38.4 42.2 41.3 42.0\ 41.8 43.7 46.7 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 86.8 Residential structures............................... 4.0 . 6 3.9 19.4! 30.1 32.61 31.2 42.6 54.0 51.6 52.8! 54.4 57.0 59.4 Nonfarm................................................ 3.8 .5 3.7 18.6 29.5 32.0i 30.7 42.0 53.2 51.0 52.1 53.7 56.1 58.4 Change in business inventories................... 1.7 -1.6 4.5 6.8 7.1 7.8 4.9 3.6 5.9 .4 5.01 8.0 10.3 6.8 1.8 -1.4 4.0 6.0 7.7 2.4 5.6 .1 4.3 7.9 10.1 6.5 Ii 6,9 i 4'8 Net exports of goods and services................... 1.1 .4 1.3 1.8I 2.5 1.9 3.6 .7 -4.2 -4.6 -5.2 -3.4 -3.5 -2.2 Exports.......................................................... 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.1 73.7 70.7 70.01 74.4 79.6 87.6 Imports.......................................................... 5.9 2.0 4.6 12.0 48.1 53.61 59.3 65.4 77.9 75.3 75.2 77.8 83.1 89.8 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 18.41 98.8 98.8 96.5 97.8 105.8 105.7 108.1 105.4 104.0 106.6 National defense....................................... 13.8 14.1 7R.3 78.4 75.1 71.4 75.9 76.7 78.6 7V1 73.2 75.0 Other......................................................... 3.1 4.3 20.5 20.4 21.5 26.3 29.9 28.9 29.61 30.2 30.8 31 6 State and local.............................................. 7.2 6.0 7.9 19.51 100.8 111.2 122.5 135.0 148.8 143.7 146.0| 150.2 155.2 160.1 1 1 Gross national product in constant (1958) 1 dollars............................................................ 203.6 141.5 263.7 355.3 706.6 725.6j 722.1 741.7 789.5 766.5 783.9 796.1 811.6 827.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, (generally the July issue) and the Aug. adjusted totals at annual rates. For back data and explanation of series, 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) 1972 1973 1929 1933 1941 1950 1968 1969 1970 1971 1972 Item I II III IV I 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.21007.1 Compensation of employees............................. 51.1 29.5 64.8 154.6 514.6 566.0 603.8 644.1 705.3 682.7 697.8 710.2 730.3 757.0 50.4 29.0 62.1 146.8 464.9 509.7 541.9 573.5 626.5 606.6 620.0 630.6 648.8 668.1 Private....................................................... 45.5 23.9 51.9 124.4 369.2 405.6 426.8 449.7 491.9 475.8 487.1 494.8 510.0 524.6 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 .7 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 of 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 99.0 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 95.7 101.5 113.1 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 50.8 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 62.3 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 27.3 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 35.0 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 -14.1 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

JUNE 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 55.6 124.5 284.8 864.2 930.3 976.41,050.41,151.81,109.11,139.41,164.01,194.91,237.9 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! 116.4 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 -4.1 -.1 2.3 -1.5 2.5 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 .7 1.0 1.5 .9 1.7 1.2 1.6 2.2 .5 Equals: National income. 86.8 40.3 104.2 241.1 711.1 766.0 798.6 855.7 935.6 903.1 922.1 943.0 974.21,007.1 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! 99.0 Contributions for social insurance---- .2 .3 2." 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 •°| 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| 109.4 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| 32.9 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 27.3 Business transfer payments................. .6 .7 .5 .8 3.4 3.8 4.2 4.6 4.9 4. 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 97.9 116.5 116.7 117.0 140.8 136.5 139.5 141.1 146.4 143.5 Equals: Disposable personal income.............. 83.3 45.5 92.7 206.9 591.0 634.4 689.5 744.4 795.1 770.5 782.6 798.8 828.2 850.4 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. 664.9 721.0, 696.1 713.4 728.6 745.7 773.6 Consumer interest payments............ 1.5 .5 .9 2.4 14.3 15.8 16.9 17.6 18.2 17. 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 56.5 Disposable personal income in constant (1958) dollars.......................................................... 150.6 112.2 190.3 249.6 499.0 513.6 533.2 554.7 578.5 565.7 571.4 579.6 597.3 604.9 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total personal income.......................... 861.4 935.9 919.4 924.0 922.9 932.9 940.0 946.8 964.6 976.2 982.9 986.0 994.51,001.3 1,008.9 Wage and salary disbursements.......... 572.9 627.0 617.6 619.9 624.0 625.7 630.6 636.0 643.0 648.5 654.9 662.7 668.4 673.1 679.0 Commodity-producing industries.. 206.1 224.6 221.7 222.5 223.5 222.4 225.2 227.8 231.0 233.3 235.8 237.7r240.7 242.0 244.9 Manufacturing only...................... 160.3 175.8 173.3 173.8 175.0 174.5 176.6 178.8 181.5 183.9 186.2 187.0 189.5 190.3 193.4 Distributive industries..................... 138.2 151.5 149.4 149.4 151.4 151.9 152.3 153.0 155.0 156.3 158.0 159.5 160.2 162.0 163.1 Service industries............................. 105.0 116.1 113.9 114.7 115.5 116.9 117.3 118.2 119.3 119.9 121.5 123.0 124.1 124.7 125.8 Government..................................... 123.5 134.8 132.5 133.2 133.6 134.5 135.8 137.0 137.7 139.0 139.7 142.5 143.5 144.4 145.2 Other labor income............................. 36.5 40.3 39.5 39.8 40.1 40.5 40.8 41.1 41.4 41.8 42.1 42.4 42.7 43.0 43.3 Proprietors* income............................. 69.9 75.2 74.0 74.0 71.6 74.3 75.4 76.2 77.7 79.5 79.8 80.4 81.2 81.9 82.0 Business and professional................ 52.6 55.6 54.9 55.3 53.2 55.7 56.3 56.7 57.0 57.4 57.8 58.2 58.7 59.1 59.5 Farm................................................. 17.3 19.6 19.1 18.7 18.4 18.6 19.1 19.5 20.7 22.1 22.0 22.2 22.5 22.8 22.5 Rental income...................................... 24.5 25.6 25.5 25.6 21.5 25.8 26.3 26.5 27.0 26.7 26.9 26.6 26.6 26.3 26.4 Dividends............................................. 25.4 26.4 26.1 26.3 26.3 26.4 26.6 26.5 26.7 26.6 26.8 27.1 27.3 27.4 27.6 Personal interest income..................... 69.6 72.9 72.0 72.7 73.4 73.5 73.4 73.3 73.7 74.5 75.4 75.9 76.2 76.8 77.3 Transfer payments............................... 93.6 104.0 99.7 100.9 101.3 102.2 102.8 103.2 111.6 115.2 113.6 113.3 114.8 115.5 116.5 Less: Personal contributions for social insurance....................................... 31.2 35.5 35.0 35.1 35.3 35.5 35.8 36.0 36.4 36.5 36.6 42.4 42.7 42.8 43.2 Nonagricultural income........................ 837.2 909.3 893.4 898.3 897.5 907.3 914.0 920.3 937.1 947.2 953.9 956.6 964.6 971.1 979.1 Agricultural income.............................. 24.2 26.6 26.0 25.8 25.4 25.5 25.9 26.5 27.6 29.0 29.0 29.4 29.8 30.2 29.8 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 □ JUNE 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 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 27.1 15.5 23.4 35.6 38.6 53.0 16 17 Bank loans n.e.c..................... 10.4 9.9 13.8 16.8 5.0 13.0 19.4 14.2 9.0 1.1 7.9 18.0 15.9 27.3 17 18 Consumer credit.................... 7.2 4.6 11.1 9.3 4.3 10.4 10.0 7.9 5.5 3.4 6.5 13.5 15.6 22.4 18 19 Open market paper............... 1.0 2.1 1.6 3.3 3.8 -.4 4.6 2.1 3.7 3.8 -.4 -.4 1.6 -2.2 19 20 Other...................................... 6.4 5.2 7.3 12.2 8.0 6.9 10.8 13.6 8.8 7.3 9.4 4.5 5.5 5.6 20 21 By borrowing sector.................... 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 138.9 162.2 21 22 Foreign.......................................... 1.3 4.0 3.1 3.3 3.0 5.6 4.7 2.0 2.3 3.8 5.5 5.8 2.9 4.1 22 23 State and local governments........ 6.4 8.5 10.4 8.7 13.9 20.6 8.9 8.5 11.4 16.4 22.1 19.1 13.9 15.2 23 24 Households.................................... 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 53.8 69.9 24 25 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 2.7 3.3 -1.5 2.2 2.3 3.1 -1.0 7.6 -5.0 4.0 29 30 Total funds raised............................. 69.1 82.2 99.0 91.3 98.9 153.1 93.6 88.8 91.6 106.6 143.9 161.3 155.4 181.4 30 31 by U.S. Government..................... 4.0 11.8 14.5 -4.0 10.1 22.2 -4.9 -2.8 6.0 14.3 23.3 21.1 16.5 19.2 31 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1............. 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 282.9 305.5 1 2 Capital consumption2................... 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 192.4 198.1 2 3 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 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 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 38.2 41.5 45.1 49.9 52.7 57.3 48.7 51.1 52.3 53.1 55.6 59.0 63.2 65.4 13 14 38.9 30.5 31.1 34.2 31.9 27.9 32.9 35.4 30.7 33.1 29.4 26.4 34.2 43.4 14 15 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 Capital consumption..................... 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 Net physical investment............... 29.9 24.7 32.5 33.0 24.0 36.4 35.1 30.9 26.3 21.7 33.4 39.4 44.7 52.4 20 21 23.2 19.7 31.9 32.6 22.3 41.6 34.2 30.3 22.0 22.9 31.5 51.0 53.8 69.9 21 22 Excess net investment3................. 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 TVA. 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 Digitized for FshRoAulSd EbeR a ddressed to the Flow of Funds Section, Division of Research corporations. Mortgages exclude loans in process. Open market paper is and Statistics, Board of Governors of the Federal Reserve System, Wash­ commercial paper issued by nonfinancial corporations plus bankers’ http://fraser.sitnlogtuoins,f eDd.C.o.,r 2g0/ 551. acceptances. Federal Reserve Bank of St. Louis

JUNE 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 1 Total funds advanced in credit mar­ kets to nonfinancial sectors........ 67.7 81.0 98.5 86.9 94.7 142.9 90.2 83.3 87.8 102.1 130.2 154.7 137.2 173.8 1 By public agencies and foreign 2 Total net advances............................. 11.9 11.3 12.2 15.8 28.0 41.2 9.9 22.3 25.3 30.6 37.7 44.8 19.5 15.8 2 3 U.S. Government securities.......... 3.4 6.8 3.4 .9 15.7 33.4 -2.7 4.5 10.5 21.0 32.4 34.4 13.1 3.8 3 4 Residential mortgages.................. 2.8 2.1 2.8 4.6 5.7 5.7 3.0 6.3 6.3 5.2 4.2 7.1 6.2 4.4 4 5 FHLB advances to S&L’s............ .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -2.7 2.8 5 6 Other loans and securities............ 4.8 4.9 5.1 6.3 5.2 4.8 6.6 6.6 5.7 4.6 6.9 2.8 2.9 4.8 6 By agency— 7 U.S. Government........................... 4.9 4.6 4.9 2.9 2.8 3.2 2.7 3.7 3.1 2.6 4.4 1.9 1.6 2.2 7 8 Sponsored credit agencies............. 5.1 -.1 3.2 9.0 9.9 2.8 6.2 11.8 11.1 8.7 -1.8 7.4 7.9 6.1 8 9 Federal Reserve............................. 3.5 4.8 3.7 4.2 5.0 8.8 3.7 4.8 2.8 7.2 8.4 9.3 4.7 -4.2 9 10 Foreign........................................... -1.6 2.0 .3 -.3 10.3 26.4 -2.6 2.0 8.3 12.2 26.7 26.1 5.4 11.6 10 11 Agency borrowing not in line 1.... 4.8 -.6 3.5 8.8 8.7 3.9 7.1 11.0 10.8 6.6 .3 7.4 7.0 4.8 11 Private domestic funds advanced 12 Total net advances............................. 60.6 69.1 89.8 79.9 75.5 105.5 87.3 72.0 73.3 78.0 92.8 117.3 124.7 162.9 12 13 U.S. Government securities.......... 5.4 5.7 13.3 4.6 5.8 -4.0 3.5 6.1 8.6 3.1 -9.9 1.8 5.4 24.3 13 14 Municipal securities...................... 5.7 8.3 10.1 7.9 13.8 20.2 8.5 7.4 11.8 15.9 22.0 18.4 14.0 14.8 14 15 Corporate and foreign bonds....... 10.3 16.0 13.8 12.6 20.5 20.0 13.4 11.8 17.1 23.8 23.0 17.1 13.6 13.7 15 16 Residential mortgages................... 11.6 13.1 15.8 15.8 12.9 29.2 18.3 13.3 10.0 15.7 24.7 33.6 36.4 46.4 16 17 Other mortgages and loans.......... 28.5 23.5 37.8 43.0 23.8 37.4 46.8 38.5 28.6 19.4 27.2 46.8 52.5 66.5 17 18 Less: FHLB advances.................. .9 -2.5 .9 4.0 1.3 -2.7 3.1 5.0 2.8 -.1 -5.8 .5 -2.7 2.8 18 Private financial intermediation 19 Credit market funds advanced by pri­ vate financial institutions........... 44.7 62.8 75.0 54.0 70.2 105.8 64.3 43.6 54.3 86.1 105.9 105.3 123.2 155.3 19 20 Commercial banking.................... 17.0 35.9 39.0 18.9 31.6 49.8 23.2 14.6 21.6 41.5 49.4 50.0 53.4 77.0 20 21 Savings institutions....................... 7.9 15.0 15.6 14.2 16.6 41.6 17.8 10.6 11.7 21.5 45.4 37.8 48.4 49.4 21 22 Insurance and pension funds........ 15.0 12.4 13.9 12.2 17.6 12.0 12.4 12.1 17.7 17.5 11.6 12.4 14.3 19.5 22 23 Other finance................................. 4.7 -.5 6.6 8.6 4.5 2.3 10.9 6.2 3.4 5.5 -.6 5.2 7.1 9.5 23 24 Sources of funds................................. 44.7 62.8 75.0 54.0 70.2 105.8 64.3 43.6 54.3 86.1 105.9 105.3 123.2 155.3 24 25 Domestic private deposits............ 21.2 49.4 46.1 2.5 60.4 92.3 5.0 -.1 32.0 88.8 105.8 78.6 99.9 105.7 25 26 Credit market borrowing.............. 3.0 -.6 6.9 16.8 1.8 4.5 13.4 20.1 10.7 -7.0 -.2 9.2 7.1 20.3 26 27 Other sources................................. 20.5 14.0 22.0 34.7 8.0 9.0 45.9 23.5 11.7 4.3 .3 17.6 16.1 29.4 27 28 Foreign funds............................. 3.7 2.3 2.6 9.3 -8.4 -3.3 14.4 4.2 -3.4 -13.5 -7.6 1.0 4.4 4.1 28 29 Treasury balances..................... -.5 .2 -.2 * 2.9 2.2 -2.1 2.1 3.4 2.4 -1.6 6.1 -3.9 4.8 29 30 Insurance and pension reserves. 13.2 11.8 11.2 10.3 13.5 8.2 9.7 10.9 13.0 14.1 7.6 8.8 7.7 13.6 30 31 Other, net................................... 4.2 -.3 8.4 15.1 * 1.8 23.9 6.2 -1.3 1.2 2.0 1.6 8.0 7.0 31 Private domestic nonfinancial investors 32 Direct lending in credit mkts............ 18.9 5.8 21.7 42.7 7.0 4.2 36.4 48.7 29.5 -15.0 -13.3 21.2 8.6 27.8 32 33 U.S. Government securities.......... 8.8 -1.3 7.7 16.0 -7.6 -13.1 14.6 17.4 1.8 -17.0 -24.7 -1.6 -3.8 15.2 33 34 Municipal securities...................... 2.7 -2.0 .3 6.7 1.4 5.7 6.2 7.2 3.8 -1.1 5.3 6.1 4.8 5.4 34 35 Corporate and foreign bonds....... 2.5 5.3 5.1 7.6 10.4 8.6 6.0 9.1 8.6 12.1 10.3 6.8 4.1 3.4 35 36 Commercial paper......................... 2.0 1.5 4.4 8.7 -1.2 -2.1 6.1 11.2 10.9 -13.3 -7.8 3.7 .5 -.5 36 37 Other.............................................. 3.0 2.4 4.2 3.7 4.1 5.0 3.5 3.8 4.3 4.3 3.5 6.2 3.0 4.3 37 38 Deposits and currency..................... 23.1 51.5 48.6 5.3 63.9 95.7 6.5 4.1 35.0 92.8 110.3 80.9 104.6 109.7 38 39 Time and savings accounts.......... 20.3 39.3 34.0 -2.2 56.2 81.3 5.2 -9.7 31.1 81.4 92.4 70.1 91.4 81.4 39 40 Money................................................ 2.8 12.2 14.6 7.6 7.7 14.4 1.3 13.8 3.9 11.4 17.9 10.7 13.2 28.3 40 41 Demand deposits....................... .8 10.1 12.2 4.7 4.2 11.0 -.2 9.6 .9 7.4 13.4 8.4 8.6 24.3 41 42 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 Mutual fund shares....................... 3.7 2.6 4.7 5.5 2.6 1.3 6.3 4.8 3.1 2.0 .3 2.3 -.3 * 2 3 Other equities................................ .9 2.3 -.7 4.7 6.9 13.5 1.9 7.6 6.1 7.6 12.7 14.2 13.3 11.8 3 4 Acq. by financial institution............ 6.0 8.4 9.5 12.8 11.4 19.1 12.1 13.5 12.5 10.2 20.7 17.5 15.3 12.5 4 5 Other net purchases......................... -1.3 -3.5 -5.5 -2.5 -1.9 -4.4 -3.9 -1.1 -3.3 -.5 -7.7 -1.1 -2.3 -.8 5 Notes 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. Digitized for F2R8. AFSoEreRig n deposits at commercial banks, bank borrowings from foreign Corporate equities http://fraser.stlouisfed.org/ Lines 1 and 3 include issues by financial institutions. Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS o JUNE 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 Other services, net..................................................................... 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 -1,734 -2,045 -2,208 -588 -601 -535 -538 -534 15 Balance on current account............................................................... 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 -4,400 -4,765 -3,339 -788 -1,266 -100 -1,116 -857 21 Foreign direct investments in the United States............. 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 Other, reported by U.S. nonbanking concerns............... 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 -508 592 -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 Liquid private capital flows, net............................................... -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 -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 87 -465 809 -21 53 281 155 320 42 Official reserve transactions balance................................................ -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 U.S. official reserve assets, net................................................. 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 Gold tranche position in IMF......................................... 389 1,350 153 -8 -1 185 -15 —16 Memoranda: 51 Transfers under military grant programs (excluded from 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

JUNE 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 -f, 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 Official reserve transactions................................................... -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) 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 3,599 4,435 5,281 184 2 -361 -304 Feb.. . 3,546 3,695 3,824 5,065 3,279 3,564 4,473 5,541 267 130 -649 -476 Mar... 3,375 3,790 3,869 5,380 3,219 3,628 4,515 5,432 156 160 -646 -53 Apr... 3,410 3,631 3,817 5,487 3,262 3,774 4,413 5,291 148 -143 -596 196 May.. 3,661 3,746 3,885 3,367 3,908 4,482 324 -161 -597 June.. 3,727 3,672 3,971 3,265 4,037 4,468 462 -365 -497 July... 3,704 3,573 4,052 3,254 3,832 4,565 450 -259 -513 Aug... 3,591 3,667 4,200 3,346 3,913 4,726 245 -247 -527 Sept... 3,553 4,487 4,177 3,423 4,179 4,606 130 308 -428 Oct... 3,688 2,669 4,318 3,498 3,469 4,736 190 -800 -418 Nov... 3,499 3,196 4,473 3,428 3,456 5,136 71 -260 -664 Dec... 3,569 3,881 4,561 3,401 4,169 5,002 168 -288 -441 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 □ JUNE 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 1973 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 II III IV I 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 U -29 -13 Total........................... -399 -88 -1,299 -659 -980 -669 969 -204 -796 Canada ................................. 200 150 50 Latin American republics: Argentina ......................... -30 -39 -25 -25 -28 Brazil.................................. 72 54 25 -3 * -23 Colombia........................... 10 29 7 * -1 Venezuela........................... -25 Other................................... -11 -9 -13 -6 11 -40 -29 -80 -5 Total........................... 32 56 17 -41 9 -65 -54 -131 -5 Asia: Iraq..................................... -10 -4 -21 -42 Japan................................... -56 -119 Lebanon............................. -11 -11 -1 -95 -35 Malaysia............................. -34 -10 Philippines......................... 25 20 * -1 9 40 -4 -2 Saudi Arabia...................... -50 Singapore........................... -81 11 -30 Other................................... -13 -6 -14 -14 -22 -75 -9 2-91 39 -3 -3 Total........................... 12 3 -24 -86 -44 -366 42 -213 -38 -3 -3 All other................................. -36 -7 -16 -22 3-166 3-68 -1 -81 -6 Total foreign countries.......... -392 -36 -1,322 -608 -1,031 -1,118 957 4 — 631 -845 -3 -3 Intl. Monetary Fund3....... 6-225 177 22 -3 10 — 156 -22 -544 Grand total................ -392 -36 -1,547 -431 -1,009 -1,121 967 — 787 -867 -547 -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 3 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

JUNE 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 e u C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i 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 l l 2 d st T o r c e k a 1 sury v c fo e C u c r r i r o e e t r i s i e n b g 5 n ­ l n e ­ p R I o e M s s i i e n t F r io v 3 n e SDR’s4 1959... 21,504 19,507 19,456 1,997 1972 1960... 19,359 17,804 17,767 1,555 May... 913,345 910,490 910,410 469 9428 91,958 1961... 18,753 16,947 16,889 116 1,690 June... 13,339 10,490 10,410 457 434 1,958 1962... 17,220 16,057 15,978 99 1,064 July.. . 13,090 10,490 10,410 203 439 1,958 1963... 16,843 15,596 15,513 212 1,035 Aug---- 13,124 10,488 10,410 234 444 1,958 1964... 16,672 15,471 15,388 432 769 Sept__ 13,217 10,487 10,410 323 449 1,958 Oct.. .. 13,313 10,487 10,410 414 454 1,958 1965... 15,450 613,806 613,733 781 6 863 Nov__ 13,307 10,487 10,410 403 459 1,958 1966... 14,882 13,235 13,159 1,321 326 Dec__ 13,151 10,487 10,410 241 465 1,958 1967... 14,830 12,065 11,982 2,345 420 1968... 15,710 10,892 10,367 3,528 1,290 1973 1969... 716,964 11,859 10,367 72,781 2,324 Jan.... 13,054 10,487 10,410 140 469 1,958 Feb.... 12,926 10,487 10,410 8 473 1,958 1970... 14,487 11,072 10,732 629 1,935 851 Mar. .. 12,931 10,487 10,410 8 478 1,958 1971... 812,167 10,206 10,132 «276 585 1,100 Apr.... 12,904 10,487 10,410 8 460 1,949 19729.. 13,151 10,487 10,410 241 465 1,958 May... 12,916 10,487 10,410 16 464 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. I, 1970; $717 million on Jan. 1, 1971; and $710 position in IMF $33 million, and SDR’s $155 million. million on Jan. 1, 1972; plus net transactions in SDRs. 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. Note.—See Table 24 for gold held under earmark at F.R. Banks for 6 Reserve position includes, and gold stock excludes, $259 million gold foreign and international accounts. Gold under earmark is not included subscription to the IMF in June 1965 for a U.S. quota increase which in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by reserve other countries position Period with IMF in IMF Per cent P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t s ­ by s g N I a o M l e l e d t s F 1 T t c f i r o c u o a i r r n e n e r s s s i e g a n i 2 n c n ­ ­ I i M d n o c F i l o n l a m n rs e e t P d u o rc l o l h a f a r s s e 3 s pu d r o R c l h l e a a ­ r s s es c T ha o n ta g l e Amount q U u o . o S f t . a p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4.834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -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 1 1 9 9 7 7 1 2 . . ’ Vsii’ 1,3 2 6 0 2 0 - - 2 4 8 7 -24 40 1,3 6 5 9 0 4 6 6 , , 1 8 1 1 5 0 9 9 1 4 5 4 8 6 5 5 1972—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 May. -4 -4 6,810 94 464 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1973 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions of dollars) Liabilities to foreign countries Official institutions2 Liquid Liquid liabilities to Liquid liabili­ other foreigners liabili­ ties to Liquid ties to p E e o r n i f o d d Total a a c t f r I g r t r i M a i o s o o n i l m n n F d s s g ­ 1 Total t p l S b i i t o e a h a e b i s r b n r o n t y m i k e r r l e t i d s ­ ­ ­ M n b T U o a o a a r b e t n n r . e S l a k d d e s s . e s 3 . t­ N v k T b o e e c U o a r n r t o e n n t a . m i S n a b d d b s . ­ l s a l . e e r­ N n v k T b n o o e e U o a r n o n r t e n n t a . c t m S i a d e b d b o s . s l a s l n . e e 4 r ­ ­ m r l O e i t a a a i a t b r e b d h k l s i i e e l e 5 l i r y t ­ ­ a t m L l o b b i a e i a r t c q i b o r n e o c u i a k s l i m i d a i s d ­ l ­ 6 Total p t l S b i i t o e a h a e b i s r b n r o n y t m i k e r r l e t i d s ­ ­ ­ n M T b o U a o a a r t b e e n n r .S a l k s d d e s 3 . e s . , t 7 ­ z o a m g a n r n i t g t i d o o a o i n a o r n n n t y n r i n a e ­ , e i s l ­ ­ ­ 8 U.S. notes U.S. 1962 9........................ 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9......................... \ ( 2 2 6 6 , , 3 4 9 33 4 8 8 0 0 0 0 1 1 4 4 , , 4 4 2 5 5 9 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 8 9 7 7 3 3 , , 0 0 4 4 6 6 3 3 4 5 1 1 1 1, ,9 96 6 5 0 1964 9......................... \ /2 2 9 9 , , 3 3 1 6 3 4 8 8 0 0 0 0 1 1 5 5 , , 7 7 8 9 6 0 1 1 3 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1 , ,0 0 7 7 9 9 2 2 0 0 4 4 1 1 5 5 8 8 7 7 , , 2 3 7 0 1 3 3 3 , , 7 7 5 3 3 0 3 3, , 3 3 7 5 7 4 3 3 7 7 6 6 1 1 , , 7 72 2 2 2 1965............................ 29,569 834 15,826 13,066 1,105 1,201 334 120 7,419 4,059 3,587 472 1,431 1966 9......................... \ ( 3 3 1 1 , , 0 1 2 45 0 1 1, ,0 01 1 1 1 1 1 4 4, , 8 8 4 9 1 6 1 1 2 2, , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 3 3 2 2 8 8 9 9 1 1 3 3 1 9 0 , , 9 1 3 1 6 6 4 4 , , 2 2 7 7 1 2 3 3 , , 7 7 4 4 3 4 5 5 2 2 8 8 9 90 0 5 6 1967 9......................... /35,819 1,033 18,201 14,034 908 711 741 1,807 11,209 4,685 4,127 558 691 \35,667 1,033 18,194 14,027 908 711 741 1,807 11,085 4,678 4,120 558 677 1968 9......................... (38,687 1,030 17,407 11,318 529 701 2,518 2,341 14,472 5,053 4,444 609 725 138,473 1,030 17,340 11,318 462 701 2,518 2,341 14,472 4,909 4,444 465 722 1969 9......................... io(45,755 1,019 1015,975 11,054 346 10 555 102,515 1,505 23,638 4,464 3,939 525 659 \45,914 1,019 15,998 11,077 346 555 2,515 1,505 23,645 4,589 4,064 525 663 1970—Dec.9.............. \ ( 4 4 6 7 , , 9 0 6 09 0 5 56 6 6 6 2 23 3 , , 7 7 7 8 5 6 1 1 9 9, , 3 33 33 3 2 3 9 0 5 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 03 29 9 6 5 4 6 7 5 8 8 4 46 4 1971— Dec. nr.......... \ ( 6 6 7 7 , , 8 6 0 81 8 5 54 4 4 4 5 5 1 0, , 6 2 5 0 1 9 3 3 9 9 , , 0 6 1 7 8 9 1 1 , , 9 9 5 5 5 5 6 6 , , 0 0 9 6 3 0 3 3 , , 4 3 4 7 1 1 1 1 4 4 4 4 1 1 0 0, , 9 2 4 6 9 2 4 4 , , 1 1 4 3 1 8 3 3 , , 6 6 9 9 1 4 4 44 4 7 7 1 1 , , 5 5 2 28 3 1972—Apr.r.............. 72,208 54,093 38,723 2,668 8.594 3.723 385 12,426 4,242 3,853 389 1,447 .............. 72,113 53,579 37,850 3,018May8 .r594 3.723 394 12,821 4,284 3,889 395 1,429 June r.............. 73,995 54,604 38,603 3,292 8.594 3.723 392 13,437 4,476 4,104 372 1,478 ................. 77,465 59,416 39,777 3,516Jul1y2.094 3.647 382 12,128 4,493 4,123 370 1,428 Aug.r.............. 79,454 60,606 40,616 3,881 12.094 3.647 368 12,906 4,419 4,041 378 1,523 Sept.r............. 79,728 60,075 39,633 4,117 12.095 3,804 426 13,577 4,630 4,241 389 1,446 Oct.r............... 81,420 60,931 40,266 4,457 12,097 3,651 460 14,173 4,822 4,416 406 1,494 Nov.r............. 82,373 61,127 40,045 4,834 12,098 3,651 499 14,776 4,745 4,322 423 1,725 Dec.r.............. 82,901 61,512 39,986 5,236 12,108 3,639 543 14,810 4,952 4,527 425 1,627 1973—Jan.r............... 82,072 60,789 38,527 5,798 12,110 3,780 574 14,799 4,891 4,466 425 1,593 Feb.................. 87,871 68,475 45,413 6,377 12,110 3,627 948 12,807 4,968 4,596 372 1,621 Mar.?3............. 1290,855 1271,289 46,882 6,917 1212,128 3,617 1,745 12,967 4,966 4,590 376 1,633 Apr.?3.............. 1390,511 70,709 45,910 6,934 12,245 3,631 1,989 13,024 5,148 4,749 399 1,630 1 Includes (a) liability on gold deposited by the IMF to mitigate the liabilities resulting from revaluation of the German mark in Oct. 1969 as impact on the U.S. gold stock of foreign purchases for gold subscriptions follows: liquid, $17 million, and other, $84 million. to the IMF under quota increases, and (b) U.S. Treasury obligations at 11 Data on the second line differ from those on first line because cer­ cost value and funds awaiting investment obtained from proceeds of sales tain accounts previously classified as “official institutions” are included of gold by the IMF to the United States to acquire income-earning assets. with “banks”; a number of reporting banks are included in the series for 2 Includes BIS and European Fund. the first time; and U.S. Treasury securities payable in foreign currencies 3 Derived by applying reported transactions to benchmark data; issued to official institutions of foreign countries have been increased in breakdown of transactions by type of holder estimated 1959-63. value to reflect market exchange rates as of Dec. 31, 1971. 4 Excludes notes issued to foreign official nonreserve agencies. 12 Includes $15 million increase in dollar value of foreign currency 5 Includes long-term liabilities reported by banks in the United States liabilities revalued to reflect market exchange rates. and debt securities of U.S. Federally-sponsored agencies and U.S. cor­ 13 Includes $147 million increase in dollar value of foreign currency porations. liabilities to official institutions of foreign countries revalued to reflect 6 Includes short-term liabilities payable in dollars to commercial banks market exchange rates as follows: short-term liabilities, $15 million; non­ abroad and short-term liabilities payable in foreign currencies to commer­ marketable convertible U.S. Treasury bonds and notes, $113 million; and cial banks abroad and to “other foreigners.” nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million. 7 Includes marketable U.S. Treasury bonds and notes held by commer­ cial banks abroad. Note.—Based on Treasury Dept, data and on data reported to the 8 Principally the International Bank for Reconstruction and Develop­ Treasury Dept, by banks and brokers in the United States. Data correspond ment and the Inter-American and Asian Development Banks. From Dec. generally to statistics following in this section, except for the exclusion 1957 through Jan. 1972 includes difference between cost value and face of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign value of securities in IMF gold investment account. official nonreserve agencies, the inclusion of investments by foreign 9 Data on the two lines shown for this date differ because of changes official reserve agencies in debt securities of U.S. Federally-sponsored in reporting coverage. Figures on first line are comparable with those agencies and U.S. corporations, and minor rounding differences. Table shown for the preceding date; figures on second line are comparable with excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters those shown for the following date. of credit and non-negotiable, non-interest-bearing special U.S. notes held 10 Includes $101 million increase in dollar value of foreign currency by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 a 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 1 Canada A re m L pu a e b r ti i l n c ic a s n Asia Africa cou O n t t h r e ie r s 2 18,194 10,321 1,310 1,582 4,428 250 303 /17,407 8,070 1,867 1,865 5,043 259 303 \17,340 8,062 1,866 1,865 4,997 248 302 J4 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..................................................................................... f23,786 13,620 2,951 1,681 4,713 407 414 123,775 13,615 2,951 1,681 4,708 407 413 /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-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.'........................................................................... 60,606 36,612 4,463 1,420 15,352 652 2,107 Sept.'........................................................................... 60,077 35,985 4,469 1,368 15,291 685 2,277 Oct.'........................................................................... 60,931 35,078 4,468 1,473 16,805 616 2,491 Nov.'........................................................................... 61,127 34,608 4,289 1,444 17,372 694 2,720 Dec.'........................................................................... 61,512 34,197 4,279 1,731 17,565 777 2,963 1973—Jan.'............................................................................ 60,789 34,146 4,201 1,728 17,026 673 3,015 Feb............................................................................... 68,475 40,773 4,290 1,893 17,907 809 2,803 Mar.p........................................................................... 6 71,289 6 45,193 4,221 1,750 16,557 823 2,745 Apr.P........................................................................... 7 70,709 7 45,562 4,157 1,917 15,417 839 2,817 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. 7 Includes $147 million increase in dollar value of foreign currency 3 See note 9 to Table 6. liabilities revalued to reflect market exchange rates. 4 Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. Note.—Data represent short- and long-term liabilities to the official 5 Data on second line differ from those on the first line because certain institutions of foreign countries, as reported by banks in the United States; accounts previously classified as “Official institutions” are included in foreign official holdings of marketable and nonmarketable U.S. Treasury "Banks”; a number of reporting banks are included in the series for securities with an original maturity of more than 1 year, except for non­ the first time; and U.S. Treasury liabilities payable in foreign currencies marketable notes issued to foreign official nonreserve agencies; and in­ to official institutions of foreign countries have been increased in value by vestments by foreign official reserve agencies in debt securities of U.S. $110 million to reflect market exchange rates as of Dec. 31, 1971. Federally-sponsored agencies and U.S. corporations. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations $ Payable in dollars Deposits IMF End of period Total i Total Deposits b T i r l 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 r o e a c n y r u i e c a n 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 o r b h m r . e t 4 r ­ Demand Time * certifi­ liab. 4 cates 3 1969............ 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707............ 4 41 1 , , 3 3 5 9 1 3 1 1 5 5 , ,7 7 8 9 5 5 5 5 , , 9 9 6 2 1 4 1 1 4 4 . . 1 12 2 3 3 5 5 , , 5 51 1 9 4 3 36 6 8 8 4 4 0 0 0 0 8 8 2 2 0 0 6 6 9 9 1 1 5 5 9 9 2 21 1 1 1 3 3 8 8 1 1 1971 8r........ 5 5 5 5 , , 0 0 3 18 6 1 6 0 , , 4 3 5 9 9 9 4 5 , , 2 20 1 9 7 3 3 3 3 . . 0 0 2 2 5 5 1 6 1 , , 3 3 8 3 5 5 3 3 8 9 6 2 4 4 0 0 0 0 1 1 , ,3 3 6 72 7 7 7 3 3 1 1 9 9 2 2 2 21 1 0 0 8 89 92 6 1972—Apr.'. 55,786 6,453 4,502 32,324 12,507 494 1,278 87 198 177 817 May.r 55,329 6,569 4,653 31,498 12,609 499 1,268 84 186 198 800 June'. 56,941 7,211 4,830 31,871 13,029 519 1,316 85 238 212 782 July.. 56,813 7,320 4,746 32,881 11,866 481 1,266 101 262 142 761 Aug.. 58,429 6,631 4,867 33,745 13,186 455 1,322 65 267 172 818 Sept.r 58,206 6,927 4,939 32,714 13,626 478 1,233 79 224 145 785 Oct.'. 59,598 7,071 5,146 33,071 14,310 538 1,281 63 210 204 804 Nov.' 60,112 7,011 5,379 32,774 14,948 543 1,512 95 242 380 794 Dec.'. 60,240 8,288 5,629 31,850 14,473 496 1,413 86 202 326 800 1973—Jan.'. 58,646 7,452 5,533 30,133 15,530 526 1,380 118 172 279 811 Feb... 63,722 7,786 5,594 36,538 13,803 513 1,419 133 145 303 838 Mar.p 65,312 7,639 5,613 37,971 14,089 548 1,421 114 135 279 893 Apr.P, 64,526 8,122 5,661 36,474 14,269 9584 1,428 119 111 240 957 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. □ JUNE 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 institutions 1 o Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a r s a t . t e s S i a f s u . n i r 3 ­ d y s O l t h i e a t o r h b m r e . t 4 r ­ f r o e c n r i u e n c i r i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O t l h e ia t o r h b m r e t . ­ 4 r c P u f r a o r y e r i a e n n b i c g l i e n es 1969....................... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 19707..................... \ f 4 4 0 0 , , 5 4 4 9 1 9 1 1 5 5 , , 7 7 1 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 5 2 2 2 2 , , 5 5 5 5 4 4 1 1 3 3 , , 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 1 4 4 8 8 J53,632 10,326 5,017 32,415 5,489 386 39,679 1,620 2,504 32,311 3,086 158 \53,661 6,386 4,025 32,415 10,443 392 39,018 1,327 2,039 32,311 3,177 165 1972—Apr.r.......... 55,002 6,366 4,304 32,147 11,691 494 38,723 1,246 2,270 32,047 2,993 167 May r.......... 54,560 6,484 4,468 31,300 11,810 499 37,850 1,224 2,379 31,209 2,871 167 June r.......... 56,144 7,126 4,592 31,659 12,248 519 38,603 1,536 2,469 31,573 2,858 167 July............. 56,028 7,219 4,485 32,738 11,106 481 39,777 1,521 2,377 32,655 3,054 170 Aug. r.......... 57,563 6,566 4,600 33,573 12,368 455 40,616 1,308 2,417 33,499 3,220 171 Sept.r......... 57,451 6,848 4,716 32,569 12,841 478 39,633 1,239 2,459 32,497 3,268 171 Oct.r.......... 58,855 7,008 4,935 32,867 13,506 538 40,266 1,335 2,569 32,794 3,398 171 Nov.r......... 59,143 6,915 5,137 32,394 14,154 543 40,045 1,271 2,643 32,315 3,645 171 Dec.r......... 59,323 8,203 5,427 31,523 13,674 496 39,986 1,589 2,868 31,453 3,905 171 1973—Jan.r........... 57,792 7,333 5,361 29,854 14,719 526 38,527 1,405 2,867 29,779 4,304 171 Feb............. 62,816 7,653 5,449 36,235 12,965 513 45,413 1,756 2,841 36,147 4,497 172 Mar.*......... 64,439 7,525 5,478 37,692 13,196 548 46,882 1,543 2,826 37,620 4,721 172 Apr.*.......... 63,683 8,003 5,550 36,234 13,312 9584 45,910 1,714 2,925 36,137 4,948 9187 To banks11 To other foreigners To banks Payable in dollars and other foreigners: I 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 c c e a r t t e if s i­ liab.4 Demand Time2 c c e a rt t i e f s i­ liab.4 1969. 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 19707 /21,166 16,917 12,376 1,326 14 3,202 4,029 1,688 1,886 131 325 220 \21,208 16,949 12,385 1,354 14 3,197 4,039 1,688 1,895 131 325 220 /13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 1971 «*- \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271 228 -Apr.r......... 16,279 12,099 3,365 352 4 8,379 3,852 1,756 1,682 96 318 327 May r......... 16,710 12,488 3,567 307 3 8,611 3,890 1,693 1,781 88 328 333 Juner......... 17,541 13,085 3,790 309 5 8,981 4,104 1,800 1,815 81 409 353 July............. 16,251 11,816 3,877 285 5 7,649 4,123 1,821 1,822 77 402 311 Aug.r......... 16,946 12,621 3,555 331 6 8,729 4,040 1.702 1,852 67 419 284 Sept.r......... 17,818 13,269 3,833 348 5 9,084 4,241 1,776 1,909 68 489 308 Oct.r.......... 18,589 13,805 3,798 434 3 9,570 4,417 1,875 1,933 70 538 368 Nov.r......... 19,097 14,404 3,938 481 5 9,981 4,322 1,706 2,014 75 528 372 Dec.r......... 19,337 14,485 4,659 533 5 9,287 4,527 1,954 2,026 65 481 325 -Jan.r........... 19,266 14,444 4,155 423 5 9,860 4,467 1,773 2,070 69 555 355 Feb............. 17,404 12,466 4,084 481 5 7,895 4,596 1,813 2,127 83 573 341 Mar.*......... 17,557 12,590 4,176 518 9 7,887 4,590 1,805 2,134 63 588 376 Apr.*......... 17,773 12,626 4,339 514 16 7,759 4,749 1,951 2,112 81 605 398 1 Data exclude “holdings of dollars” of the IMF. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches, which were previously reported as deposits, are included in “Other.” in “Other short-term liabilities”; (b) certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and (c) a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Includes $15 million increase in foreign currency liabilities to official time certificates of deposit. See also note 8(a). institutions of foreign countries revalued to reflect market exchange rates. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of lOForeign 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 11 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 8 Data on second line differ from those on first line because (a) those ment Bank and the International Development Association. liabilities of U.S. banks to their foreign branches and those liabilities of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.p Apr.P Europe: Austria...................................................... 254 261 272 310 279 245 272 268 267 281 292 Belgium-Luxembourg.............................. 701 1,159 1,188 1,175 1,159 1,070 1,092 974 1,165 1,285 1,245 Denmark.................................................. 168 216 209 194 217 254 284 321 364 400 406 Finland..................................................... 160 176 165 163 161 157 163 152 158 142 168 France....................................................... 3,150 4,324 4,317 4,422 4,501 4,630 4,441 4,433 4,482 5,000 5,167 Germany................................................... 6,596 6,601 6,459 5,819 5,809 5,514 5,346 5,034 10,494 12,963 12,701 Greece....................................................... 170 168 165 177 195 190 238 210 224 223 175 1,887 1,424 1,615 1,426 1,345 1,354 1,338 1,085 1,041 968 1,022 Netherlands.............................................. 270 1,488 1,514 1,490 1,460 1,442 1,468 1,356 1,762 2,532 2,543 Norway..................................................... 685 769 892 873 895 960 978 973 995 1,018 1,035 303 290 334 356 379 413 416 439 498 518 502 Spain......................................................... 203 222 192 246 230 223 256 231 222 256 250 Sweden...................................................... 792 1,036 1,033 1,068 1,059 1,081 1,184 1,189 1,403 1,483 1,682 3,249 3,626 3,493 3,538 3,072 2,838 2,857 2,924 2,845 2,906 2,963 Turkey...................................................... 68 55 59 72 71 96 97 109 94 105 118 United Kingdom..................................... 7,379 4,945 5,893 5,692 5,683 5,430 5,011 5,510 4,546 4,657 4,741 Yugoslavia................................................ 34 87 102 65 56 98 117 82 78 58 69 Other Western Europe1.......................... 1,391 1,379 1,391 1,446 1,428 1,479 1,483 1,464 1,502 1,584 1,722 U.S.S.R..................................................... 14 18 10 14 16 10 11 14 21 14 8 Other Eastern Europe............................. 53 58 57 71 63 58 81 71 65 71 71 Total.................................................. 27,529 28,302 29,360 28,615 28,078 27,541 27,134 26,839 32,226 36,461 36,880 Canada.......................................................... 3,441 3,727 3,660 3,730 3,969 3,799 3,484 3,889 3,325 3,290 3,570 Latin America: Argentina.................................................. 441 457 500 523 532 547 631 631 689 687 694 342 620 550 591 601 564 605 643 648 671 703 Chile.......................................................... 191 136 136 134 135 135 137 132 136 143 140 Colombia.................................................. 188 196 212 199 192 185 210 210 218 184 197 Cuba.......................................................... 6 6 6 6 6 6 6 7 7 6 7 715 788 695 690 671 659 831 783 800 788 853 Panama.................................................... 154 165 154 156 151 150 167 193 201 171 168 Peru........................................................... 164 178 178 164 180 183 225 176 167 172 167 Uruguay.................................................... 108 121 136 137 125 133 140 140 138 132 143 Venezuela.................................................. 963 831 865 855 924 926 1,077 995 1,051 949 1,046 Other Latin American republics............. 655 671 701 662 747 751 860 839 825 804 820 Bahamas 2................................................ 656 384 416 461 576 576 539 290 261 198 226 Netherlands Antilles and Surinam......... 87 88 83 88 82 89 86 81 84 83 72 Other Latin America............................... 37 47 45 54 55 57 44 235 239 216 241 Total.................................................. 4,708 4,688 4,675 4,721 4,979 4,961 5,558 5,353 5,461 5,203 5,479 Asia: China, People’s Rep. of (China Mainland) 39 39 39 39 39 39 39 39 37 48 43 China, Republic of (Taiwan).................. 258 426 502 541 590 639 675 737 783 816 831 Hong Kong.............................................. 312 341 325 315 313 310 318 336 319 337 330 India.......................................................... 89 122 105 91 103 107 98 115 134 114 125 Indonesia.................................................. 63 98 117 115 114 107 108 101 96 89 90 Israel.......................................................... 150 128 119 134 127 141 177 139 146 137 144 Japan........................................................ 14,295 13,963 14,156 14,412 15,485 16,152 15,843 14,570 14,733 12,344 10,415 Korea........................................................ 196 206 235 208 218 201 192 224 210 227 214 Philippines................................................ 306 345 364 379 382 394 438 446 453 518 521 Thailand.................................................... 126 120 141 145 143 128 171 211 187 172 166 Other......................................................... 595 733 802 797 1,016 965 1,071 951 897 862 941 Total.................................................. 16,429 16,521 16,904 17,175 18,529 19,182 19,131 17,868 17,995 15,664 13,819 Africa: Egypt......................................................... 24 17 19 23 23 24 24 21 28 17 33 Morocco.................................................... 9 11 9 9 10 11 12 9 8 13 9 South Africa............................................. 78 92 65 71 57 83 115 111 104 125 125 Zaire.......................................................... 12 27 15 18 14 17 21 18 23 22 28 Other......................................................... 474 620 622 649 595 678 768 573 728 739 798 Total.................................................. 597 768 729 770 700 814 939 733 891 917 992 Other countries: Australia................................................... 916 1,977 2,187 2,372 2,553 2,801 3,027 3,046 2,861 2,849 2,886 All other.................................................... 42 45 47 69 47 46 51 65 57 54 57 Total.................................................. 957 2,022 2,234 2,441 2,600 2,846 3,077 3,111 2,918 2,903 2,943 Total foreign countries............................... 53,661 56,028 57,563 57,451 58,855 59,143 59,323 57,792 62,816 64,439 63,683 International and regional: International3........................................... 1,327 793 831 746 794 1,030 951 930 957 974 982 Latin American regional......................... 298 300 335 329 320 316 307 301 318 320 337 Other regional4........................................ 142 174 156 158 167 165 156 148 143 128 109 Total.................................................. 1,767 1,266 1,322 1,233 1,281 1,512 1,413 1,380 1,419 1,421 1,428 Grand total....................................... 55,, 428 57,294 58,884 58,684 60,136 60,654 60,737 59,172 64,235 65,860 65,111 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. □ JUNE 1973 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) ______________________________________Supplementary data 5______________________________________ 1970 1971 1972 1970 1971 1972 Area and country Area and country Dec. Apr. Dec. Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus.......................................... 10 7 2 2 3 Kuwait.............................................. 54 36 20 16 39 Iceland.......................................... 10 10 11 9 9 Laos.................................................. 5 2 3 3 2 Ireland, Rep. of.......................... 41 29 16 15 17 Lebanon........................................... 54 60 46 60 55 Malaysia.......................................... 22 28 23 25 54 Other Latin American republics: Pakistan............................................ 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 Ecuador........................................ 79 72 57 62 121 Sri Lanka (Ceylon)....................... 4 4 4 6 5 El Salvador.................................. 75 80 78 83 76 Syria.................................................. 7 3 4 6 4 Guatemala.................................... 100 97 117 123 132 Vietnam............................................ 179 161 159 185 135 Haiti.............................................. 16 19 18 23 27 Honduras..................................... 34 44 42 50 58 Other Africa: Jamaica........................................ 19 19 19 32 41 Algeria.............................................. 17 13 23 31 32 Nicaragua.................................... 59 47 50 66 61 Ethiopia (incl. Eritrea)................. 19 12 11 29 57 Paraguay..................................... 16 15 17 17 22 Ghana.............................................. 8 6 8 11 10 Trinidad & Tobago................... 10 14 10 15 20 Kenya............................................... 38 13 9 14 23 Liberia.............................................. 22 21 23 25 30 Other Latin America: Libya................................................ 195 91 274 296 393 British West Indies.................... 33 38 32 23 36 Nigeria.............................................. 17 25 46 56 (7) Southern Rhodesia........................ 1 2 2 2 2 Other Asia: Sudan................................................ 1 1 1 5 3 Afghanistan................................. 26 15 19 17 25 Tanzania.......................................... 9 10 6 6 11 Bahrain........................................ 32 35 21 18 Tunisia.............................................. 7 6 9 7 10 Burma.......................................... 4 3 10 5 <2 Uganda............................................ 8 5 3 10 7 Cambodia.................................... 2 2 5 2 3 Zambia............................................. 10 14 13 7 (7) Iran............................................... 42 67 59 88 93 Iraq............................................... 11 7 10 9 10 All other: Jordan.......................................... 14 3 2 2 4 New Zealand.................................. 25 22 23 27 30 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Includes Bermuda through Dec. 1972. European Fund, which are included in “Europe.” 3 Data exclude “holdings of dollars” of the International Monetary 5 Represent a partial breakdown of the amounts shown in the “other” Fund but include IMF gold investment until Feb. 1972, when investment categories (except “Other Eastern Europe”). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other Ger­ United Other Total Other All regional Total institu­ Banks1 foreign­ many King­ Europe Latin Japan Asia other tions ers dom America coun­ tries 196 9 2,490 889 1,601 1,505 56 40 46 7 239 655 582 70 197 0 1,703 789 914 695 166 53 110 42 26 152 385 137 62 197 1 902 446 457 144 257 56 164 52 30 111 3 87 9 1972—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 33 14 Dec.r 1,000 561 439 93 259 87 165 63 32 136 32 10 1973—Jan.' 1,025 598 427 74 257 96 165 61 30 127 30 13 Feb.. 1,257 594 663 304 258 100 164 59 233 118 71 16 MarJ 1,374 679 695 328 263 103 164 66 233 120 95 16 Apr.* 1,366 659 707 329 268 111 164 68 238 123 98 16 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 o 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.** Apr.^ Europe: Belgium-Luxembourg....................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden................................................. 16 16 19 19 17 15 35 85 85 110 135 135 135 Switzerland.......................................... 52 52 52 49 45 45 45 45 45 45 44 43 44 United Kingdom................................ 280 288 264 265 280 293 308 326 327 327 276 278 300 Other Western Europe..................... 79 79 77 79 79 79 79 79 79' 79 79 79 79 5 5 5 5 5 5 5 5 5 5 5 5 5 Total............................................ 438 445 424 422 432 443 478 545 547 572 544 546 569 Canada..................................................... 179 166 313 313 372 432 479 559 558 558 559 561 561 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..................................................... Japan.................................................... 2,415 2,777 2,901 3,125 3,310 3,481 3,756 4,003 4,380 4,867 5,421 5,961 5,978 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................ 2,425 2,787 2,912 3,136 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 5,988 Africa....................................................... 8 8 8 8 127 133 133 133 133 183 183 183 183 All other................................................... * * * * * * * * 25 25 25 25 25 Total foreign countries......................... 3,057 3,413 3,664 3,886 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 7,333 International and regional: International....................................... 136 136 136 136 176 186 186 186 186 186 176 186 176 Latin American regional................. 33 25 26 27 27 27 27 28 28 28 26 26 27 Total............................................ 168 161 161 162 203 213 213 214 214 214 202 212 202 Grand total................................ 3,226 3,574 3,825 4,048 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 7,535 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 PPaayyaalble in foreign currencies End of period Total China, Total g B iu e m l­ a C d a a n ­ 1 ( R Ta ep iw . a o n f ) m G a e n r­ y Italy 2Korea T la h n a d i­ Total Ger- Italy e S r w la it n z d ­ 196 9 43,181 1,431 32 1,129 20 135 15 100 4 1,750 4 1 084 125 541 197 0 3,563 2,480 32 2,289 20 25 15 100 1,083 542 541 197 1 5 9,657 7,829 32 2,640 20 5,000 22 15 100 5 1,827 612 1,215 1972—May 12,441 10,688 32 2,840 20 7,658 22 15 100 1,753 536 1.217 June 12,441 10,688 32 2,840 20 7,658 22 15 100 1,753 536 1.217 July. 15,864 14,188 32 2,840 20 11,158 22 15 100 1,676 459 1.217 Aug. 15,864 14,188 32 2,840 20 11,158 22 15 100 1,676 459 1.217 Sept. 16,022 14,345 32 2,840 20 11,315 22 15 100 1,677 459 1.218 Oct.. 15,871 14,345 32 2,840 20 11,315 22 15 100 1,526 306 1,220 Nov. 15,872 14,345 32 2,840 20 11,315 22 15 100 1,528 306 1,222 Dec.. 15,872 14,333 20 2,840 20 11,315 22 15 100 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 May 16,012 14,456 20 2,840 2 11,471 22 100 1,556 172 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. □ JUNE 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.r Julyr Aug.r Sept.r Oct.r Nov. Jan.r Feb. Mar.p Apr.P Europe: Austria........................................................... 11 16 33 15 10 7 13 9 9 Belgium-Luxembourg................................ 57 73 66 70 87 84 120 67 124 100 87 Denmark....................................................... 49 50 63 60 52 57 59 58 59 60 63 Finland.......................................................... 135 124 128 120 119 123 118 127 122 131 134 France............................................................ 263 305 349 317 274 272 330 275 312 424 451 Germany....................................................... 235 286 229 268 287 296 321 267 414 370 345 Greece............................................................ 30 25 27 28 27 27 29 34 23 29 32 Italy................................................................ 160 194 190 173 177 170 255 221 271 269 288 Netherlands................................................... 105 97 102 116 104 101 108 93 152 118 129 Norway.......................................................... 67 71 56 52 62 62 69 62 63 70 66 Portugal......................................................... 12 25 21 27 22 21 19 21 26 20 30 Spain.............................................................. 70 156 160 194 229 215 207 210 236 282 238 Sweden........................................................... 118 114 120 131 128 123 156 176 249 235 238 Switzerland................................................... 145 131 137 180 186 150 125 187 206 152 186 Turkey........................................................... 3 3 4 7 4 4 6 5 6 5 5 United Kingdom........................................ 559 736 666 643 657 729 855 672 1,001 847 795 Yugoslavia.................................................... 19 23 21 22 18 16 22 18 20 18 20 Other Western Europe............................... 12 23 25 24 23 19 20 23 26 22 29 U.S.S.R.......................................................... 28 62 64 55 30 32 41 44 55 54 61 Other Eastern Europe................................ 37 44 40 38 40 38 49 47 51 52 60 Total....................................................... 2,114 2,557 2,503 2,531 2,543 2,551 2,917 2,613 3,431 3,268 3,265 Canada............................................................... 1,627 2,299 2,484 2,026 1,681 1,717 1,920 1,939 2,372 2,461 2,286 Latin America; Argentina....................................................... 305 323 339 352 363 357 379 389 417 406 396 Brazil.............................................................. 435 568 600 639 659 633 652 641 727 740 759 Chile............................................................... 139 77 71 79 58 53 52 53 49 51 45 Colombia....................................................... 380 396 384 378 384 396 418 408 412 380 401 Cuba............................................................... 13 13 13 13 13 15 13 12 13 13 13 Mexico........................................................... 934 1,179 1,162 1,121 1,126 ,168 1,202 1,202 1,213 1,320 1,343 Panama.......................................................... 125 132 137 150 145 179 246 219 220 212 183 Peru................................................................ 176 157 158 137 138 147 145 129 136 132 143 Uruguay......................................................... 41 38 40 43 36 38 40 40 38 40 36 Venezuela...................................................... 268 333 343 335 361 386 383 388 385 404 396 Other Latin American republics.............. 374 357 355 345 353 368 388 393 379 367 382 Bahamas 1.................................................... 262 390 426 428 372 403 476 413 521 461 505 Netherlands Antilles and Surinam.......... 18 16 16 15 15 13 14 15 15 20 27 Other Latin America.................................. 26 22 29 28 32 33 36 56 70 105 85 Total....................................................... 3,494 3,999 4,073 4,064 4,054 4,191 4,442 4,359 4,592 4,649 4,712 Asia: China, People’s Rep. of (China Mainland) 1 2 2 2 1 1 1 2 2 2 2 China, Republic of (Taiwan).................... 109 178 173 180 187 201 194 205 211 231 238 Hong Kong................................................... 70 100 85 85 76 76 93 84 103 111 122 India............................................................... 21 14 17 18 15 17 14 15 15 16 14 Indonesia....................................................... 41 44 60 66 74 74 87 87 103 127 127 Israel............................................................... 129 101 87 78 87 105 105 126 106 141 124 Japan.............................................................. 4,280 ,527 3,473 ,461 ,719 4,001 4,162 4,081 ,277 1,568 5,663 Korea............................................................. 348 344 342 321 302 317 296 271 288 301 331 Philippines..................................................... 138 143 144 144 151 160 149 148 150 140 150 Thailand........................................................ 172 174 187 187 177 183 191 184 195 205 197 Other.............................................................. 252 245 230 229 244 260 300 288 335 272 295 Total....................................................... 5,560 4,871 4,800 4,773 5,034 5,397 5,593 5,490 6,786 7,115 7,265 Africa: Egypt.............................................................. 10 14 12 15 17 16 21 22 20 20 22 Morocco........................................................ 4 4 4 5 5 4 4 6 5 7 5 South Africa................................................. 156 149 142 139 134 145 143 150 155 155 151 Zaire............................................................... 21 12 12 12 14 10 13 15 13 11 13 Other.............................................................. 96 117 110 121 109 112 124 116 113 133 137 Total....................................................... 288 296 280 291 279 286 304 309 305 325 327 Other countries: Australia....................................................... 158 210 184 205 229 271 291 272 256 244 249 All other........................................................ 28 38 41 44 36 36 40 50 44 47 50 Total....................................................... 186 248 225 249 265 308 330 322 300 291 299 Total foreign countries................................... 13,269 14,270 14,364 13,933 13,856 14,449 15,506 15,032 17,787 18,109 18,153 International and regional............................. 3 3 3 4 6 6 3 3 3 1 2 Grand total.......................................... 13,272 14,273 14,367 13,936 13,862 14,455 15,509 15,035 17,789 18,111 18,155 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

JUNE 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 f s f t L i i c t o i u a a ­ l ns t B o a — nks1 Others C s t t o o i a o u l n l n t e d ­ s c ­ ­ f A o o a m r c f n c a a f c e o d c e p r c e s t ­ 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 u o c o n v o r r d i t m e t , i i f e l g s i . e s ­ n , ­ Other tions ing eigners nance paper 1969................................. 9,680 9,165 3,278 262 1,943 1,073 2,015 3,202 670 516 352 89 - 74 1970................................. 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 * 166 1071 2r /13,170 12,328 4,503 223 2,613 1,667 2,475 4,243 1,107 842 549 119 174 \ 13,272 12,377 3,969 231 2,080 1,658 2,475 4,254 1,679 895 548 173 174 1972—Apr.'.................. 13,785 12,999 4,448 165 2,354 1,928 2,469 4,252 1,830 785 498 177 111 May '.................. 13,460 12,626 4,598 171 2,518 1,909 2,540 3,838 1,650 835 530 187 118 Juner.................. 13,565 12,732 4,756 165 2,575 2,016 2,649 3,483 1,844 833 486 222 125 July r.................. 14,273 13,371 5,049 164 2,779 2,106 2,703 3,227 2,392 902 516 278 108 Aug.r.................. 14,367 13,421 4,984 152 2,710 2,122 2,805 3,082 2,551 946 482 338 126 Sept.'.................. 13,936 13,048 4,987 143 2,572 2,272 2,882 2,967 2,213 888 431 330 127 Oct.'................... 13,862 13,086 5,154 146 2,666 2,343 2,987 2,953 1,991 776 408 209 159 Nov.'................. 14,455 13,685 5,342 157 2,700 2,484 3,130 3,129 2,085 770 412 219 139 Dec.'.................. 15,509 14,663 5,712 163 2,975 2,573 3,269 3,204 2,478 846 441 223 182 1973—Jan....................... 15,035 14,210 5,429 143 2,814 2,472 3,234 3,103 2,443 825 443 253 128 Feb...................... 17,789 16,718 6,453 162 3,675 2,616 3,515 3,322 3,429 1,071 596 313 162 Mar.25................. 18,111 17,160 6,537 141 3,696 2,700 3,697 3,463 3,463 951 524 262 165 Apr.P.................. 18,155 17,337 6,839 146 3,942 2,752 3,781 3,463 3,253 818 460 207 152 1 Excludes central banks, which are included with “Official institutions.” branches, which, were previously reported as “Loans”, are included in 2 Data on second line differ from those on first line because (a) those “Other short-term claims”; and (b) a number of reporting banks are included claims of U.S. banks on their foreign branches and those claims of U.S. in the series for the first time. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo a u r y r i e a n r i e b g n l n e ­ U K d n i o i n m t g ed ­ E O u t r h o e p r e Canada Am La e t r i i n ca Japan O A t s h i e a r co o u t A n h t l 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'................. 3,667 3,345 575 315 2,455 300 22 130 593 228 1,458 246 583 429 1972—Apr.'... 3,948 3,626 654 335 2,637 295 27 143 626 230 1,542 290 673 444 May r... 4,047 3,732 674 335 2,723 285 30 140 638 251 1,584 281 707 447 June'... 4,192 3,874 719 363 2,792 287 31 139 631 284 1,644 309 735 449 July'. . . 4,310 4,003 757 356 2,890 275 32 146 674 283 1,724 294 754 434 Aug.'... 4,387 4,073 771 398 2,904 281 34 141 671 277 1,789 288 773 448 Sept.'. . 4,535 4,220 796 402 3,023 282 33 128 687 288 1,861 289 802 480 Oct.'. . . 4,632 4,306 796 412 3,098 292 35 136 658 335 1,893 302 828 481 Nov.'... 4,666 4,342 819 432 3,091 291 33 137 658 339 1,875 301 863 493 Dec.'... 4,916 4,501 833 430 3,238 375 40 139 704 383 1,991 315 881 503 1973—Jan........ 4,956 4,535 833 440 3,262 379 41 144 728 403 1,957 324 897 503 Feb ... 5,063 4,625 840 470 3,315 386 52 135 766 431 1,977 313 911 531 Mar.*\ . 5,210 4,754 884 479 3,391 412 44 121 857 450 1,967 307 968 539 Apr.p... 5,360 4,924 932 513 3,478 387 49 122 908 477 1,995 308 1,011 539 1 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. □ JUNE 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 piirehases or sales Period Total I a n n t d l. Foreign ch P a u s r e ­ s Sales c N h s a e a s t l e p e s s u o r r ­ c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1970............................... 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 1971 '............................. 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 1972r............................. 3,316 57 3,258 3,281 -23 18,922 14,958 3,964 1,941 2,961 -1,021 2,532 2,123 409 1973—Jan.-Apr.z*. ... 1,661 -11 1,672 1,697 -25 7,390 4,309 3,082 591 880 -289 682 522 160 1972—Apr.................... 48 11 38 25 13 1,678 1,420 258 162 150 11 197 181 16 348 -8 356 350 6 1,346 1,111 235 128 315 -187 245 141 104 251 1 251 274 -23 1,648 1,407 241 109 339 -231 226 269 -43 July r................. 223 1 222 224 -2 1,151 1,152 « 191 101 90 155 166 -11 413 40 373 365 9 1,495 1,217 278 129 98 30 242 179 63 Sept.r................ 258 10 247 237 11 1,154 841 314 173 163 11 173 142 32 Oct.r................. 356 356 340 17 1,317 1,038 279 184 207 -23 188 119 69 395 1 395 377 18 1,910 1,289 621 146 171 -26 192 110 82 Dec.................... 404 404 403 1 2,007 1,368 638 243 465 -222 233 178 55 1973 Jan..................... 562 562 562 * 1,855 1,118 737 191 323 -132 161 155 7 Feb.................... 515 -12 527 579 -52 1,785 1,062 723 144 144 * 193 145 48 Mar.p............... 554 10 544 540 3 2,215 1,092 1,123 139 125 13 207 110 97 Apr.p................. 31 -9 40 16 23 1,536 1,036 500 117 287 -170 121 112 9 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 m G a e n r­ y N la et n h d e s r­Sw la it n z 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 r t o a p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e r r ies r I e n g t i l o . n & al 197 0 626 58 195 128 110 -33 24 482 -9 47 85 -1 22 197 1 731 87 131 219 168 -49 71 627 -93 37 108 54 197 2 2,140 372 -51 297 639 561 92 1,911 -78 -32 256 86 1973—Jan.-Apr.p 1,428 114 51 152 490 206 146 1 ,159 120 -35 157 25 1972—Ap r 78 -9 -22 19 1 46 35 -23 13 49 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 Nov........... 489 85 44 55 61 150 52 447 14 25 -8 -1 12 Dec............ 350 48 -3 42 59 132 19 297 -1 42 4 1973—Ja................n 489 32 29 47 142 118 24 392 24 85 7 Feb............. 453 25 4 67 151 82 47 376 36 46 4 Mar.p. . .. 347 35 47 144 21 29 284 26 21 10 Apr.p......... 140 21 54 -15 45 106 34 5 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 r t o a p l e Canada A L m a e t r i i n ca Asia co O u t n h t e r r ies I r n e t g l. i o a n n a d l 197 0 956 35 37 134 118 91 464 128 25 28 -12 324 197 1 684 15 -1 197 327 39 612 37 19 -2 -21 39 197 2 1,824 336 65 134 320 315 1,246 82 22 323 148 1973—Jan.-Apr.p 1,654 95 92 -15 386 565 961 60 1972—Ap r 180 38 3 20 -1 -13 38 -1 27 114 May.... 180 40 -3 -3 71 15 121 11 11 10 June___ 210 95 1 21 4 17 148 23 8 31 July.... 36 9 -4 41 -34 12 33 4 1 -4 Aug........ 27 6 4 17 -16 45 62 9 -1 -44 Sept... . 149 7 4 15 18 80 127 10 * 12 Oct......... 120 36 7 35 4 54 138 5 2 -28 Nov.. .. 132 2 30 -1 46 42 138 -6 1 * Dec........ 289 56 30 14 49 60 210 29 38 1973—Ja............n 248 12 29 38 73 149 31 60 Feb........ 270 6 30 46 60 149 110 -26 Mar.p. . 777 45 -7 _2 158 193 621 -42 Apr.P... 360 33 40 -96 94 73 199 68 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—June............................... 334 182 1971r................ -992 -310 -682 31 -275 -46 -366 -57 32 Sept................................ 291 203 1972r................ -612 -90 -522 508 -651 -72 -271 -66 29 Dec................................. 349 281 1973—Jan.- 511 314 Apr.P . . -129 46 -175 48 -181 -84 39 * 3 June.............................. 419 300 333 320 1972—Apr.. .. 28 7 21 65 13 -31 -33 3 5 311 314 Mayr. . -82 7 -90 75 -138 1 -21 -9 2 Juner.. -274 10 -284 26 -201 -15 -94 * * 325 379 July'... 79 78 1 36 23 2 -62 * 2 June............................... 312 339 Aug----- 93 -1 94 50 49 -1 -5 * 2 286 336 Sept.r.. 42 6 36 47 3 9 -24 * 1 366 396 Oct.r... 46 16 30 76 -73 2 23 * 2 Nov.r.. 57 11 46 49 -4 8 -8 * * 1973—Mar.p............................. 310 357 Dec.. .. -167 9 -176 -16 -158 -29 23 2 1 1973—Jan____ -126 9 -135 11 -67 -70 -9 * * Note.—Data represent the money credit balances and Feb___ 48 -2 50 -3 41 -16 27 * * money debit balances appearing on the books of reporting Mar.p.. 110 23 87 19 34 8 25 * 1 brokers and dealers in the United States, iin accounts of Apr.P. . -161 16 -177 22 -188 -6 -5 * * foreigners with them, and in their accounts carried by foreigners. Notes to Tables 21a and 21b on following pages: 1 Total assets and total liabilities payable in U.S. dollars amounted to For a given month, total assets may not equal total liabilities because $12,604 million and $12,926 million, respectively, on Feb. 28, 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. □ JUNE 1973 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES Total, all currencies............................ 1970—Dec............. 47,363 9,740 7,248 2,491 36,221 6,887 16,997 695 11,643 1,403 1971— Dec............. 61,334 4,798 2,311 2,486 54,752 11,211 24,550 1,167 17,823 1,785 1972—Feb............. 61,816 4,116 1,742 2,374 55,839 11,013 25,615 1,118 18,093 1,861 Mar............. 65,033 4,565 2,085 2,480 58,653 10,633 28,066 1,173 18,781 1,815 Apr............. 63,755 4,846 2,426 2,421 57,091 10,542 26,354 1,179 19,015 1,817 May........... 64,375 4,619 2,080 2,539 57,946 10,463 27,061 1,276 19,146 1,810 June............ 69,623 4,854 2,279 2,576 62,901 11,459 30,586 1,342 19,514 1,867 July............ 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 Feb............. 87,987 4,327 1,565 2,762 81,104 12,273 42,204 1,747 24,881 2,555 Payable in U.S. dollars. 1970—Dec............. 34,619 9,452 7,233 2,219 24,642 4,213 13,265 362 6,802 525 1971—Dec............. 40,182 4,541 2,305 2,236 35,064 6,659 18,006 864 9,536 577 1972—Feb............. 39,915 3,864 1,732 2,132 35,369 6,637 18,510 821 9,400 682 Mar............. 42,993 4,300 2,062 2,238 38,065 6,725 20,604 843 9,891 631 Apr............. 41,353 4,562 2,387 2,176 36,123 6,358 19,015 881 9,870 668 May........... 41,935 4,393 2,063 2,330 36,889 6,475 19,575 936 9,903 653 June............ 44,905 4,585 2,260 2,325 39,669 6,598 22,049 914 10,108 651 July............ 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 Feb............. 57,631 3,987 1,534 2,452 52,716 8,551 29,829 1,097 13,239 929 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—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............. 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 Feb............. 48,533 1,945 848 1,097 45,487 5,887 28,473 585 10,542 1,102 Payable in U.S. dollars. 1970—Dec............. 22,574 6,596 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............ 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 Feb............. 32,746 1,814 30,423 4,568 20,219 5,637 508 IN THE BAHAMAS 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—Feb............. 8,375 994 107 888 7,271 3,816 3,455 110 Mar............. 8,828 1,178 126i 1,052 7,542 4,030 3,513 108 Apr............. 8,621 1,244 204 1,040' 7,269 3,780 3,489 108 May........... 9,097 1,361 195 1,166 7,618 4,183 3,435 117 June............ 10,075 1,552 295 1,257 8,396 4,825 3,571 128 July............ 10,329 1,409 110I 1,298 8,786 4,924 3,863 134 Aug............. 11,516 1,53C 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 1,365i 10,577 6,209 4,368 167 Dec............. 13,091 1,496 2251 1,272: 11,419 6,965 4,454 175 1973—Jan.............. 13,065 1,38*3 1821 1,206i 11,496 6,754 4,742 181 Feb............. 113,559 1,461 83I 1,378! 11,860 7,189 4,671 238 85 For notes see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 47,354 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. 61,816 3,167 776 2,391 56,632 10,645 30.694 6,208 9,085 2,018 1972—Feb. 65.033 3,046 635 2,411 59,925 10,363 33,710 6.331 9,521 2,062 ...........Mar. 63,755 2,978 621 2,356 58,726 10,097 32,379 6,617 9,635 2,051 ...........Apr. 64.374 2,819 562 2.256 59,648 10,055 33,114 6,649 9,830 1,908 ...........May 69,622 3,086 646 2,440 64,592 11,069 36,113 7,223 10,187 1,944 ...........June 69,963 3,212 736 2,476 64,712 11,283 35,860 7,176 10,393 2,039 ........rJuly 72,855 3,263 680 2,583 67.392 11,510 37,327 7,841 10,714 2,200 ...........Aug. 73,413 3,262 727 2,535 67,892 11,123 38,331 8,039 10,400 2,258 ...........Sept. 74,804 3,256 716 2,539 69,206 11,204 38.477 8.236 11,289 2,342 ..........Oct. 76,239 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 ...........Nov. 80,035 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 ...........Dec. 81,200 3,414 836 2,578 75,273 11,746 42,260 9.236 12,032 2,513 1973—Jan. 87,987 3,967 1,132 2,835 80,884 11,901 46,371 9,388 13,224 3,136 ............Feb. 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. 42.557 2,740 641 2,099 38,605 6,853 21,742 4,783 5,226 1,212 1972—Feb. 45,603 2,642 507 2,135 41,736 6,945 24,433 4.957 5,402 1,225 ...........Mar. 43,663 2,589 514 2,075 39,877 6,560 22,854 5,202 5,260 1,197 ...........Apr. 44,223 2.411 439 1,973 40,754 6.648 23,603 5,170 5,333 1,058 ...........May 47,834 2,671 523 2,148 44,142 7.277 25,807 5,656 5,401 1,021 ...........June 47,460 2,754 611 2.143 43,634 7,507 24,766 5,777 5,584 1,072 .........rJuly 49,437 2,800 549 2,252 45,464 7,660 25,862 6,252 5,690 1,173 ...........Aug. 50,085 2,793 605 2,188 46,088 7,401 26,545 6.331 5,811 1,204 ...........Sept. 51,335 2,789 582 2,207 47,313 7,706 26.776 6,567 6,264 1,233 ..........Oct. 52,139 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 ...........Nov. 56.375 3,104 848 2.256 51,811 8,178 30,253 6,913 6,467 1,459 ...........Dec. 56,405 2,995 693 2,302 52,114 8.400 29,234 7,680 6,800 1,297 1973—Jan. 60,888 3,466 954 2,511 55.813 8,783 32,022 7,809 7,200 1,609 ............Feb. 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. 34,712 1,582 114 1,468 32,371 3,417 18,705 4,788 5,461 759 1972—Feb. 37,104 1,525 78 1,447 34,787 3,209 20,989 4,996 5,594 792 ..........Mar. 36,126 1.340 68 1,272 33,980 3,056 19,893 5,172 5,859 807 ...........Apr. 36,311 1,397 105 1,291 34.090 3,154 19,908 5,158 5,871 824 ...........May 39.452 1,447 147 1,300 37,102 3,160 22,144 5,542 6,256 903 ..........June 39,463 1.497 150 1,347 37,075 3,464 21,720 5,565 6,326 892 ........rJuly 40,596 1.498 153 1,345 38,165 3,423 22,236 6,007 6,499 933 ...........Aug. 40,565 1,457 136 1,321 38,074 3.139 22,746 6,102 6,087 1,034 ...........Sept. 41,649 1,465 136 1,329 39,225 3,060 23,001 6,309 6,854 959 ...........Oct. 41,600 1,481 132 1,349 39,149 2.928 22,769 6,340 7,112 969 ...........Nov. 43,684 1,456 113 1,343 41,232 2,961 24.776 6,453 7,042 997 ...........Dec. 44,347 1,501 107 1,394 41,933 3.277 23,959 7,285 7,412 913 1973—Jan. 48,533 1,844 264 1,580 45,628 3,157 27.038 7,517 7,915 1,062 ...........Feb. 23,005 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 1970—Dec. . Payable in U.S. dollars 24,845 1.412 23 1,389 23,059 2,164 14.038 3,676 3,181 374 1971—Dec. 24,765 1,377 50 1,327 22,985 2,081 13,670 3,824 3,411 403 1972—Feb. 26,971 1,327 19 1,308 25,220 2,093 15.694 4,041 3,392 424 ...........Mar. 25,599 1,154 26 1,129 24,027 1,852 14,465 4,233 3,477 419 ...........Apr. 25,787 1,202 58 1.144 24,168 2,054 14,610 4,141 3,363 417 ...........May 27,729 1,250 103 1,147 26,017 2,070 15,874 4,560 3,513 462 ...........June 27,130 1,294 103 1,190 25.393 2,197 15,000 4,641 3,554 444 .........rJuly 27,625 1,271 100 1,171 25,887 2.140 15,217 4,981 3.549 467 ...........Aug. 27,586 1,230 86 1.144 25,825 1,926 15,376 4.957 3,567 531 ...........Sept. 28,477 1,245 80 1,165 26,759 1,942 15,597 5,216 4,004 473 ...........Oct. 28.558 1,270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 ...........Nov. 30,933 1,276 72 1,203 29,121 2,008 17.478 5,349 4,287 536 ..........Dec. 30,926 1.335 72 1,264 29.091 2,234 16,205 6,162 4,490 500 1973—Jan. 33,966 1,661 226 1,436 31,714 2,188 18,360 6,394 4,771 591 ...........Feb. IN THE BAHAMAS 4,815 542 4,183 488 2,872 823 90 1970—Dec. . Total, all currencies 8,495 750 7,557 1.649 4,784 1,124 188 1971—Dec. 8,375 855 7,378 1,526 4,674 1,178 142 1972—Feb. 8,828 832 7,868 1,429 5,134 1,305 128 ..........Mar. 8,621 959 7,538 1,471 4,926 1,140 125 ...........Apr. 9,096 812 8,141 1,454 5,356 1,330 144 ...........May 10,075 997 8,943 1,809 5,903 1,231 136 ...........June 10.329 1,043 9,126 1,633 6,169 1,323 160 ...........July 11,515 1,121 10,238 1,885 6,898 1,455 156 ...........Aug. 11,909 1,137 10,616 1,935 7,188 1,493 156 ...........Sept. 12,025 1,053 10,801 1.928 7,422 1,452 171 ...........Oct. 12.329 934 11,230 1,982 7,862 1,386 166 ...........Nov. 13,091 1,220 11,703 1,964 8,395 1,344 168 ...........Dec. 13,065 1;137 11,761 1,875 8,503 1,383 167 1973—Jan. 113,559 186 12,144 2,223 8,394 1,527 230 ............Feb. 85 For notes see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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 it y y of 1973 Jan. Feb. Mar. 1967 1971 1973 1.61 2.30 2.40 J S D M u e e a p n c r t e . . . 2 2 2 2 7 7 9 8 , 4 4 3 3 , , , , 2 0 4 1 4 5 1 6 1 9 2 6 J D S M u e e a p n c 1 r t e . 9 . . 7 2 2 3 3 2 9 0 9 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 ... Jan. 2 3 1 1 3 4 1 7 0 . . . . . . . . . . . . . . . 1 1 1 1 1 , , , , , 1 4 6 4 8 2 1 2 1 0 1 9 5 3 0 C Ot a d m i h n l a e l o . t r . n e . 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 . u e . n . p r . d . i o . n . a r .. g r t . . 3.19 3.50 3.37 12.56 14.11 15.42 Jan. 26... 1,419 Feb. 7... 1,391 2nd................................ 6.74 7.89 7.10 1968 F M e a b r . . 2 2 3 9 . .. . . . 1 1 , , 5 0 3 68 2 2 1 1 4 . . . .. . 1,1 6 5 9 7 4 4 3 t r h d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3. . 2 6 8 6 2 5 . . 9 8 6 2 5 3 . . 5 7 6 0 J S D M u e e a p n c r t e . . . 2 2 2 31 5 6 7 . . . . . . ( . . . 1 . . . . . . / . . . 1 . . . . . . / . . . . . . 6 . . . . . . 9 . . . . . . ) . . . 4 6 7 6 , , , ,2 9 1 03 0 2 0 9 2 0 4 J J A A M u u p u a n l r y g y e . . 2 2 3 3 2 6 1 8 0 6 . . . . . . . . . . . . . . . 1 1 1 1 1 , , , , , 4 3 3 4 2 6 4 4 7 7 5 3 5 4 0 Mar. 2 2 1 7 8 1 4 . . . . . . . . . . . . 1 1 1 , , , 4 4 2 7 6 1 9 9 9 5 0 0 7 5 9 t t t h h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 . . . . . 6 1 4 4 7 5 5 8 3 4 2 3 . . . . . 9 3 5 7 5 1 9 5 4 4 2 3 . . . . . 9 6 2 5 7 1 6 6 6 4 Sept. 27... 2,023 28... 1,127 .56 .43 .38 11th................................. .39 .37 .65 1969 Oct. 4... 1,619 Apr. 4. . . 1,011 12th................................. .33 .61 .80 11... 1,544 11. .. 1,203 Maturities of more than 1 Mar. 26............... 9,621 18... 1,890 18. . . 1,193 1.56 1.63 1.77 June 25.............. 13,269 25... 1,415 25... 1,116 Sept. 24............... 14,349 Dec. 31............... 12,805 Nov. 1... 1,387 May 2... 1,238 44.32 47.74 49.26 8... 1,338 9... 1,073 15... 1,841 16... 1,721 1970 2 2 2 9 . . . . . . 1 1, , 7 4 4 6 5 4 2 3 3 0 . . . . . . 1 1 , , 4 3 9 45 2 de N po o s t it e s . — an I d n c d lu ir d e e c s t b i o n r te r r o e w st in -b g e s a o ri f n a g l l U br .S an . c d h o es ll a in r the Bahamas and of all other foreign branches Mar. 25................. 11,885 Dec. 6... 1,618 for which such deposits and direct borrowings June 24................. 12,172 13... 1,705 amount to $50 million or more. Sept. 30................. 9,663 20... 1,807 Details may not add to totals due to rounding. Dec. 30................. 7,676 27... 1,406 1 Represents gross liabilities of reporting banks to their branches in foreign countries. 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro­ dollar Series and special Export-Import Bank securities held by foreign branches. Beginning July 28, 1971, all of the securities held were U.S. Treasury Certificates Eurodollar Series. 24. DEPOSITS, U.S. TREAS. SECURITIES, 25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in. custody E p n er d i o o d f Deposits E pe n r d i o o d f Total Short­ Short­ U K n in it g ed ­ Canada U se . c S u . r T it r i e e a s s 1 . Ear g m o a ld rked Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom ments 1 ments 1 1970............... 148 16,226 12,926 1971............... 294 43,195 13,815 1968..................... 1,638 1,219 87 272 60 979 280 /1,319 952 116 174 76 610 469 1972—May. . 157 46,453 215,542 \1,491 1,062 161 183 86 663 534 June.. 257 47,176 15,542 1,141 697 150 173 121 372 436 July... 160 51,522 15,542 Aug.. . 192 51,676 15,530 f1,648 1,092 203 234 120 577 587 Sept... 193 50,997 15,531 1971—Dec.2.... \1,504 1,075 127 234 68 577 443 Oct.... 192 51,821 15,531 Nov... 188 51,874 15,530 1972—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 May. . 289 58,015 15,511 Nov.......... 2,085 1,510 178 343 55 657 593 /1,963 1,444 169 307 42 700 485 Dec. 2 . \1,991 1,575 45 328 42 722 484 1 Marketable U.S. Treasury bills, certificates of in­ debtedness, notes, and bonds and nonmarketable U.S. 1973—Jan........... 2,163 1,681 71 346 65 799 605 Treasury securities payable in dollars and in foreign Feb.r.. .. 2,570 1,906 138 394 131 830 964 currencies. Mar......... 2,563 1,912 137 367 147 933 832 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 m 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 accounts and is not included in the gold stock of the Note.—Data represent the liquid assets abroad of large nonbanking concerns in United States. the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 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 Juner Sept.r Dec.p Dec.r Mar.r Juner Sept.r Dec.p Europe: Austria...................................... 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 Finland..................................... 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 99 108 118 186 181 184 174 193 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................... 890 929 981 943 932 940 954 985 992 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................................. 1,611 1,634 1,714 1,733 1,808 2,046 2,023 2,093 2,117 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 27 151 133 143 154 180 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................................ 289 356 357 293 303 366 313 442 519 520 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................................. 439 518 512 453 499 1,083 968 1,133 1,226 1,289 Asia: China, Rep. of (Taiwan).... 18 23 25 26 28 41 45 45 51 67 Hong Kong.............................. 11 11 11 12 12 23 21 23 22 24 India.......................................... 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 5 15 48 62 67 63 49 Thailand................................... 3 4 4 5 5 15 18 15 14 15 Other Asia............................... 142 109 104 140 149 145 171 174 172 201 412 383 374 451 410 830 894 911 918 972 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 75 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..................... 2,761 2,842 2,922 2,933 3,075 4,997 5,170 5,328 5,498 5,722 i 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. □ JUNE 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 l in 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 n l 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 th d Other in reporter’s name 1968—Sept........................ 1,678 1,271 407 3,907 3,292 422 193 Dec........................ 1,608 1,225 382 3,783 3,173 368 241 1969—Mar........................ 1,576 1,185 391 4,014 3,329 358 327 June....................... 1,613 1,263 350 4,023 3,316 429 278 Sept........................ 1,797 1,450 346 3,874 3,222 386 267 i J 1,786 1,399 387 3,710 3,124 221 365 I 2,124 1,654 471 4,159 3,532 244 383 1970—June....................... 2,387 1,843 543 4,457 3,868 234 355 Sept........................ 2,512 1,956 557 4,361 3,756 301 305 Dec......................... 2,677 2,281 496 4,160 3,579 234 348 1971—Mar........................ 2,437 1,975 462 4,515 3,909 232 374 June....................... 2,375 1,937 438 4,708 4,057 303 348 Sept........................ 2,564 2,109 454 4,894 4,186 383 326 1 r / 2,704 2,229 475 5,185 4,535 318 333 \ 2,761 2,298 463 4,997 4,459 290 247 1972—Mar.'..................... 2,842 2,404 437 5,170 4,550 318 302 Juner..................... 2,922 2,450 472 5,328 4,681 376 270 Sept.r..................... 2,933 2,435 498 5,498 4,836 432 230 Dec.p..................... 3,075 2,584 491 5,722 5,087 397 238 i Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g 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 Dec 1 / 1,725 2,215 152 433 496 172 73 388 141 249 69 42 \ 2,304 2,363 152 442 562 177 77 420 142 271 75 46 1970—Mar.......................... 2,358 2,744 159 735 573 181 74 458 158 288 71 47 June......................... 2,587 2,757 161 712 580 177 65 477 166 288 76 54 Sept.......................... 2,785 2,885 157 720 620 180 63 586 144 284 73 58 Dec........................... 3,102 2,950 146 708 669 183 60 618 140 292 71 64 1971—Mar.......................... 3,177 2,983 154 688 670 182 63 615 161 302 77 72 June......................... 3,172 2,982 151 687 677 180 63 625 138 312 75 74 Sept.......................... 2,939 3,019 135 672 765 178 60 597 133 319 85 75 1 J 3,159 3,118 128 705 761 174 60 652 141 327 86 85 \ 3,122 3,118 128 705 767 174 60 653 136 325 86 84 1972—Mar.r....................... 3,077 3,191 129 713 787 175 60 665 137 359 81 85 Juner....................... 3,309 3,194 108 707 797 180 58 668 136 361 86 93 Sept.r....................... 3,482 3,222 128 690 809 176 62 659 132 383 89 96 Dec.p....................... 3,625 3,319 137 709 833 178 58 668 152 389 87 109 i 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

JUNE 1973 □ EXCHANGE RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period A (d u o st l r la a r li ) a (s A ch u i s l t l r in ia g) B (f e r l a g n iu c m ) C (d a o n ll a a d r a ) C (r e u y p l e o e n ) D ( e k n r m on a e r ) k (m Fi a n r la k n k d a) F (f r r a a n n c c e ) 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—May............................................................................ 119.10 4.3277 2.2737 101.120 16.650 14.332 24.084 19.944 June............................................................................ 119.10 4.3421 2.2758 102.092 16.772 14.336 24.136 19.937 July............................................................................ 119.10 4.3674 2.2814 101.630 15.878 14.368 24.035 19.990 119.11 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 May............................................................................ 141.50 4.9082 2.5356 99.916 15.883 16.241 25.277 22.341 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 el u a n n d d ) ( I l t i a r l a y ) J ( a y p en an ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u l i e a l t n d h d e ­ r s ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 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 1971........................................................................................ 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 31.364 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 1972—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 May............................................................................ 35.841 13.340 253.05 .17100 .37786 40.333 8.0000 34.488 Period Z (d e N o a e l l l a w a n r d ) N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o 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 ­ ) ( U p K d o n i o u n it m n g e d d ­ ) 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969........................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 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—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 May............................................................................ 132.34 17.196 4.0050 141.647 1.7224 22.567 31.494 253.05 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 □ JUNE 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of May 31, 1972 Rate Country 1972 1973 as of May 31, Per Month j 1973 cent effective ; June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 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 5.50 5.50 Brazil......... 18.0 Feb. 1972 20.0 Canada..., 4.75 Oct. 1971 5.25 5.75 5.75 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 6.0 6.0 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 7.0 7.0 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 5.5 5.5 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..................... 6.0 May 1972 6.0 Peru............................ 9.5 Nov. 1959 9.5 Philippine Republic. 10.0 June 1969 10.0 Portugal..................... 3.75 Feb. 1971 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 8.5 18.5 Venezuela. 5.0 Oct. 1970 5.0 Vietnam....................................I 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 5 Vi 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

JUNE 1973 □ 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 l s s t u , h r s y i m Da o d y n a - e y t y o 2 - 3 m P b b r o a i i l n n m ls t k , e hs3 3 T r m b e i a o l s l n s u t , r h y s D m a d o y a n - y t e o y - C d b r l e e a a p a t n o e r k s s in i s 4 t ’ g m Da o d y n a - y e t y o 3 - T 6 d r b e 0 a i a - y l s l 9 s s u 0 , 6 ry m Da o d y n a - y e t y o 7 - 3 T r m b e i a o l s n ls u t , r h y 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—May............. 3.67 3.73 4.83 4.27 4.56 2.50 5.32 2.75 2.95 1.98 3.03 4.75 June............. 3.61 3.64 5.86 5.21 3.92 2.93 3.81 2.75 2.65 1.90 1.53 4.75 July.............. 3.48 3.45 6.82 5.60 4.99 4.18 3.78 2.75 2.24 1.09 .86 4.75 Aug.............. 3.47 3.54 6.71 5.79 5.13 5.25 3.76 2.75 4.48 .70 .60 4.75 Sept.............. 3.57 3.52 7.18 6.44 5.27 5.25 3.89 2.75 4.83 1.11 .54 4.75 Oct............... 3.57 3.64 7.34 6.74 5.47 5.25 5.16 3.25 6.07 1.95 2.61 4.75 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 5.00 4.69 4 53 8.64 7.87 7.20 7.25 5.00 M!ay 5.23 4.67 8.35 7.20 8.29 7.11 1.22 .77 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 i t t e 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 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 i............. 27............... 7.56 6.13 1.43 -1.86 -.43 4.86 4.82 6.13 -1.31 1.68 .37 May 4............... 7.56 6.16 1.40 -2.13 -.73 5.02 4.89 6.16 -1.27 1.54 .27 11............... 7.26 6.04 1.22 -1.80 -.58 4.99 4.86 6.04 -1.18 1.30 .12 18............... 7.15 6.22 .93 -1.80 -.87 5.70 5.06 6.22 -1.16 1.48 .32 25............... 7.08 6.46 .62 -1.52 -.90 5.20 5.06 6.46 -1.40 1.48 .08 1 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 □ JUNE 1973 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972 and at $38 per fine ounce thereafter) Esti­ Intl. Esti­ E pe n r d i o o d f m to a t t a e l d M ta o r n y e­ U St n a i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world 1965. 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2,652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969. 41,015 2,310 11,859 26,845 205 135 263 715 1,520 45 84 872 47 1970. 41,275 4,339 11,072 25,865 191 140 239 714 1,470 45 63 791 47 1971. r41,175 4,732 10,206 r26,235 192 90 259 729 1.544 46 22 792 47 1972—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. r44,825 5.761 10.490 r28,575 208 130 283 792 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.. r44,875 5.777 10.487 r28,610 208 152 283 792 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.. ‘’44^925 5.830 10.487 28,610 208 152 281 792 1,638 50 12 834 1973—Jan... 5.830 10.487 208 152 281 793 1,621 50 12 834 Feb... 5.830 10.487 208 152 281 793 1,621 50 834 Mar.. ^44,875 5.830 10.487 ^28,560 208 282 793 1,621 834 Apr.*5 5.830 10.487 208 281 793 834 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—Apr................... 80 14 64 85 49 3,523 4,077 98 243 131 144 16 43 May................. 87 15 69 92 53 3,826 4,437 132 264 142 156 17 47 June................. 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 July.................. 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 Aug.................. 87 16 69 92 53 3,826 4,437 132 264 142 156 17 47 Sept.................. 87 16 69 92 53 3,826 4,436 132 264 142 156 17 43 Oct................... 87 16 69 92 53 3,826 4,436 132 264 142 156 17 42 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 r4,468 133 264 142 156 17 41 Feb................... 87 16 69 92 53 3 834 r4,468 133 142 156 17 41 Mar.................. 16 69 92 53 3 ’834 r4,468 133 142 156 17 41 Apr p ............. 16 69 53 3,834 4,468 133 156 17 E pe n r d i o o d f Italy Japan Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N la 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—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 63 188 23 2,059 37 60 41 71 Feb................... 3,134 801 94 350 93 63 23 2,059 37 60 41 71 Mar.................. 3,134 801 94 307 93 63 23 2,059 37 60 41 71 Aprp ........... 3,134 801 94 297 93 2,059 37 60 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ 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 sla u v 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—Apr...................... 925 119 412 498 200 2,909 82 127 751 156 391 51 347 May.................... 1,004 129 471 541 217 3,158 89 127 816 169 425 % 365 June.................... 1,004 129 507 541 217 3,158 89 122 816 169 425 56 304 July..................... 1,004 129 543 541 217 3,158 89 122 816 169 425 56 276 Aug..................... 1,021 129 580 541 217 3,158 89 122 800 169 425 56 276 Sept..................... 1,021 129 601 541 217 3,158 89 122 800 169 425 56 267 Oct...................... 1,021 129 636 541 217 3,158 89 122 800 169 425 56 267 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 Apr.p ................ 131 720 220 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—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 2.2 Oct..................... 94.2 6.3 .5 .3 2.7 2.1 Nov................... 91.5 6.0 .7 Dec.................... 84.3 6.3 .5 1973—jan..................... 88.2 6.2 .8 Feb..................... 86.5 6.1 Mar.................... 88.5 6.3 i Estimated; excludes U.S.S.R., other Eastern European countries, 2 Quarterly data. China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY SIZE OF BANK AND BY RATIO OF TIME TO TOTAL DEPOSITS (Averages of individual ratios expressed as percentages) Size group—Total deposits Ratio of time deposits to (in thousands of dollars) total deposits (per cent) All Item groups 5,000 5,000- 10,000- 25,000- 50,000- 100,000- Over Under 60 and and 10,000 25,000 50,000 100,000 500,000 500,000 40 40-49 50-59 over under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1................................. 10.38 7.97 9.91 10.90 11.29 11.13 10.86 10.45 10.17 10.38 10.51 10.34 10.90 8.35 10.42 11.53 11.84 11.64 11.15 10.67 10.54 10.91 11.04 10.87 Percentage of net income: 27.73 25.58 24.10 25.75 28.76 33.50 36.81 45.48 35.09 27.58 26.82 26.89 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................................................ 5.05 5.10 5.01 5.08 5.09 5.09 4.96 4.70 4.31 4.90 5.12 5.22 Salaries, wages, and fringe benefits................................................................... 1.35 1.62 1.37 1.29 1.28 1.31 1.34 1.32 1.69 1.50 1.39 1.19 Interest on time and savings deposits............................................................... 2.36 2.11 2.37 2.49 2.46 2.41 2.14 1.77 1.08 1.87 2.33 2.86 Occupancy expense of bank premises, net...................................................... .20 .19 .17 .19 .21 .23 .23 .22 .23 .23 .21 . 17 All other operating expenses................................................................................ 1.14 1.18 1.10 1.11 1.14 1.14 1.25 1.39 1.31 1.30 1.19 1.00 Total operating income.............................................................................................. 6.16 6.12 6.15 6.22 6.21 6.15 6.02 5.76 5.72 6.06 6.22 6.25 Income after taxes and before securities gains (losses)1................................. .84 .75 .85 .86 .86 .83 .83 .78 .99 .85 .84 .80 .88 .78 .89 .91 .91 .87 .85 .80 1.02 .90 .88 .84 Percentage of total operating income: Interest, fees, and other loan income2.................................................................. 64.22 62.17 63.54 64.36 65.12 64.81 65.36 67.81 61.81 63.23 64.12 65.20 Securities—Interest and dividends:3 U.S. Treasury securities......................................................................................... 13.39 19.03 15.49 13.29 10.94 10.26 8.70 6.54 14.88 12.77 12.97 13.63 Other U.S. Govt, securities (agencies and corporations)........................... 4.98 6.40 5.67 4.85 4.73 4.35 3.46 1.31 3.99 4.55 5.05 5.30 8.76 4.89 7.95 9.50 10.15 10.36 9.82 9.03 8.05 8.85 8.86 8.82 .78 .84 .68 .68 .88 1.07 .98 .69 . 68 .62 . 65 .97 (Service charges on deposit accounts4)............................................................... (.3.87) (3.70) (3.96) (4.13) (3.97) (3.67) (3.17) (2.59) (4.94) (4.93) (4.30) (2.90) (Trust department income4).................................................................................... (2.19) (1.55) (1.34) (1.05) (1.79) (2.37) (3.61) (5.04) (4.42) (2.77) (2.10) (1.50) All other operating income....................................................................................... 7.87 6.67 6.67 7.32 8.18 9.15 11.68 14.62 10.59 9.98 8.35 6.08 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....................................................................................................... 19.29 24.16 19.81 18.06 17.82 18.32 19.02 19.40 26.09 21.70 19.64 16.61 Officer and employee benefits.................................................................................. 2.72 2.52 2.55 2.63 2.81 2.96 3.22 3.56 3.46 2.97 2.72 2.46 Interest on: Time and savings deposits.................................................................................... 38.62 34.43 38.79 40.45 39.95 39.56 35.70 30.85 19.17 31.44 37.98 46.12 Borrowed money...................................................................................................... .59 .16 .13 .21 .48 .80 2.56 6.49 1.50 1.00 .55 .27 (Capital notes and debentures4)........................................................................ U.12) (.98) (1.12) (l.U) (1.09) (1.08) (1.15) (1.27) (1.16) (1.17) (1.15) (1.09) Occupancy expense of bank premises, net.......................................................... 3.29 3.11 2.90 3.19 3.49 3.80 3.92 4.00 4.08 3.90 3.40 2.78 2.07 2.40 2.09 2.01 1.96 1.79 2.04 2.70 2.41 2.44 2.29 1.69 All other operating expenses.................................................................................... 15.37 16.20 14.99 15.13 15.50 15.54 15.82 14.98 18.48 17.33 15.73 13.67 Total operating expenses1............................................................................ 81.95 82.98 81.26 81.68 82.01 82.77 82.28 81.98 75.19 80.78 82.31 83.60 Income before taxes and securities gains (losses).............................................. 18.05 17.02 18.74 18.32 17.99 17.23 17.72 18.02 24.81 19.22 17.69 16.40 13.96 12.73 14.28 14.19 14.18 13.83 13.95 13.86 17.90 14.54 13.81 13.00 Net securities gains or losses (—), after taxes.................................................... .54 .37 .51 .63 .56 .52 .36 .23 .35 .48 .55 .57 All other income (net)................................................................................................ .05 .07 .03 .07 .07 .05 -.01 .05 .07 .07 .07 .03 14.55 13.17 14.82 14.89 14.81 14.40 14.30 14.14 18.32 15.09 14.43 13.60 A 96 MEMBER BANKS, 1972 □ JUNE 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...................................................................... 5.64 5.52 5.67 5.71 5.68 5.65 5.48 5.24 5.50 5.56 5.65 5.70 Other U.S. Govt, securities (agencies and corporations)............. 4.92 4.38 4.62 4.99 5.14 5.41 5.42 4.91 4.04 4.96 5.07 4.98 Obligations of States and political subdivisions............................ 4.19 4.17 4.15 4.22 4.25 4.16 4.04 4.10 4.01 4.12 4.20 4.24 All other securities............................................................................... 6.16 5.79 5.80 6.14 6.26 6.93 6.68 6.93 5.55 6.36 6.22 6.17 On loans:2 Interest, fees, and other loan income............................................... 8.24 8.53 8.42 8.32 8.08 7.90 7.76 7.45 8.39 8.47 8.33 8.04 Net loan losses (—) or recoveries5................................................... -.18 -.11 -.18 -.18 -.20 -.17 -.20 -.28 -.14 -.25 -.18 -.16 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.................................................................. 14.25 20.12 16.45 14.15 11.73 10.91 9.30 7.05 14.71 13.51 13.95 14.67 Other U.S. Govt, securities (agencies and corporations)......... 5.04 6.42 5.91 5.00 4.66 4.09 3.30 1.30 3.80 4.61 5.12 5.41 Obligations of States and political subdivisions......................... 12.49 6.62 11.09 13.61 14.55 15.14 14.47 12.66 10.90 12.43 12.71 12.69 All other securities........................................................................... .73 .71 .67 .68 .79 .92 .81 .62 .55 .53 .65 .90 Gross loans2.......................................................................................... 52.60 50.47 51.85 52.63 53.55 53.54 53.99 56.57 48.76 50.77 52.34 54.34 Cash assets............................................................................................. 12.48 13.92 12.14 11.65 11.87 12.39 14.73 16.99 18.88 15.37 12.68 9.82 Real estate assets.................................................................................. 1.62 1.28 1.47 1.65 1.79 1.86 1.82 1.75 1.54 1.86 1.70 1.48 Percentage of gross loans:2 Commercial and industrial loans...................................................... 19.21 11.98 14.98 18.03 22.37 26.20 29.64 36.48 23.40 23.84 20.65 15.41 Loans to farmers................................................................................... 13.22 28.32 21.26 11.82 5.43 2.56 2.01 1.11 17.58 13.44 14.30 11.38 Real estate loans................................................................................... 27.83 21.22 25.56 29.61 31.46 32.08 27.81 20.86 13.47 19.21 24.60 36.75 Loans to individuals for personal expenditures............................. 28.01 24.78 25.95 29.71 31.25 29.26 26.38 19.65 27.77 28.98 28.80 27.10 All other loans2.................................................................................... 11.73 13.70 12.25 10.83 9.49 9.90 14.16 21.90 17.78 14.53 11.65 9.36 Other ratios (per cent): Interest and fees on loans to loans...................................................... 7.80 7.96 7.88 7.89 7.74 7.61 7.44 7.08 7.70 7.92 7.90 7.70 Interest on time and savings deposits to time and savings deposits 4.71 4.61 4.70 4.75 4.75 4.72 4.65 4.57 4.40 4.67 4.76 4.74 Income taxes to net income plus income taxes.................................. 18.34 19.91 19.60 18.62 16.70 16.24 16. 14 18.98 24.26 19.86 17.84 16.83 Time and savings deposits to total deposits....................................... 56.36 50.83 56.23 58.52 58.42 57.90 53.26 47.64 28.01 45.74 55.23 67.51 Total capital accounts and reserves to total assets7......................... 8.52 10.21 8.89 8.12 8.05 7.97 8.08 8.22 10.25 8.88 8.37 8.13 Number of banks 8........................................................................................... 5,584 716 1,164 1,865 860 459 379 141 513 928 1,775 2,368 For notes see p. A-101. JUNE 1973 □ MEMBER BANKS, 1972 A 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY RATIO OF TIME TO TOTAL DEPOSITS, BY SIZE OF BANK (Averages of individual ratios expressed as percentages) Banks with ratios of time Banks with ratios of time Banks with ratios of time Banks with ratios of time to total deposits of to total deposits of to total deposits of to total deposits of under 40 percent 40-49 per cent 50-59 per cent 60 per cent and over Item All groups Size group—Total deposits (in thousands of dollars) 5,000 5,000- Over 5,000 5,GOO- Over 5,000 5,000- Over 5,000 5,GOO- Over and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 and 25,000 25,000 under under under under Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............. 10.38 8.56 10.98 10.38 7.28 10.80 10.88 7.88 10.76 11.03 8.05 10.18 11.39 10.90 8.97 11.41 10.62 7.55 11.45 11.33 8.26 11.35 11.52 8.48 10.75 11.88 Percentage of net income: 27.73 34.85 30.77 42.21 20.93 24.68 33.89 24.03 23.63 32.80 24.01 25.35 30.68 Sources and disposition of income: Percentage of total assets: Total operating expenses............................................................... 5.05 4.18 4.31 4.43 5.19 4.91 4.78 5.30 5.10 5.10 5.38 5.19 5.21 Salaries, wages, and fringe benefits.......................................... 1.35 2.00 1.65 1.47 1.76 1.51 1.39 1.58 1.37 1.37 1.37 1.17 1.18 Interest on time and savings deposits...................................... 2.36 .70 1.20 1.23 1.86 1.90 1.84 2.33 2.37 2.27 2.81 2.89 2.81 .20 .21 .22 .26 .24 .23 .23 .20 .19 .23 .14 .16 .19 All other operating expenses..................................................... 1.14 1.27 1.24 1.47 1.33 1.27 1.32 1.19 1.17 1.23 1.06 .97 1.03 Total operating income................................................................. 6.16 5.63 5.78 5.70 5.98 6.17 5.94 6.25 6.25 6.17 6.34 6.24 6.24 Income after taxes and before securities gains (losses)1............. .84 1.03 1.04 .86 .56 .92 .86 .71 .87 .84 .71 .80 .83 .88 1.07 1.08 .89 .58 .98 .90 .75 .91 .88 .75 .84 .86 Percentage of total operating income: 64.22 58.45 61.17 66.01 60.83 62.66 64.84 62.66 63.60 65.44 64.44 65.31 65.25 Securities—Interest and dividends:3 U.S. Treasury securities............................................................. 13.39 21.81 15.09 8.00 19.32 13.60 9.34 18.62 13.76 9.76 17.69 14.42 10.82 Other U.S. Govt, securities (agencies and corporations)........ 4.98 5.51 4.46 1.82 6.86 5.01 3.12 6.43 5.46 3.92 6.65 5.13 5.17 Obligations of States and political subdivisions...................... 8.76 5.32 9.23 8.74 4.15 9.12 10.11 5.07 8.94 10.04 4.84 8.74 10.28 All other securities..................................................................... .78 .69 .72 .62 1.00 .53 .60 .72 .50 .85 .95 .84 1.22 (Service charges on deposit accounts4)........................................... (3.87) (4.96) (5.83) (3.54) (4.69) (5.58) (4.13) (3.56) (4.59) (4.10) (2.70) (2.88) (3.01) A (T ll r o u t s h t e d r e p o a p r e t r m at e i n n t g i i n n c c o o m m e e 4 . ) .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . ( 7 2 . . 8 1 7 9) 8 (. .2 7 2 0) ( 9 2 . . 3 3 3 6) 1 (5 4. . 8 5 1 7) 7 (. .8 3 4 4) ( 9 1 . . 0 2 8 0) 1 (3 1 . .9 4 9 0) ( 6 2 . . 5 6 0 3) ( 7 1 . . 7 0 4 6) (29-.9&9> ( 5 1 . . 4 6 3 9) 5 ( . . 5 8 6 8) ( 7 1 . . 2 8 6 7) 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 19.29 32.36 25.11 21.71 26.76 21.51 20.19 22.91 19.31 19.03 19.46 16.31 16.21 Officer and employee benefits....................................................... 2.72 3.28 3.40 3.73 2.59 2.84 3.28 2.45 2.56 3.06 2.14 2.41 2.66 Interest on: Time and savings deposits......................................................... 38.62 12.56 21.18 22.21 31.75 31.40 31.38 37.85 38.55 37.13 44.84 46.69 45.48 Borrowed money........................................................................ .59 .15 .21 4.82 .15 .22 2.38 .20 .21 1.20 .13 .14 .57 (iCapital notes and debentures4)................................................... (1.12) (.04) (1.19) (.84) (1.10) (1.20) (l.U) (1.17) (1.02) (1.12) (1.07) Occupancy expense of bank premises, net................................... 3.29 3.71 3.97 4.61 4.13 3.72 4.07 3.11 3.17 3.87 2.21 2.65 3.20 Provision for loan losses............................................................... 2.07 2.43 2.37 2.44 2.68 2.32 2.51 3.04 2.25 2.09 1.72 1.75 1.59 All other operating expenses......................................................... 15.37 19.40 18.15 18.16 18.56 17.26 17.00 15.15 15.56 16.19 14.22 13.46 13.83 Total operating expenses1.................................................. 81.95 73.89 74.39 77.68 86.62 79.27 80.81 84.71 81.61 82.57 84.78 83.41 83.54 Income before taxes and securities gains (losses)........................ 18.05 26.11 25.61 22.32 13.38 20.73 19.19 15.29 18.39 17.43 15.22 16.59 16.46 Income after taxes and before securities gains (losses)............... 13.96 19.15 18.63 15.56 9.56 15.66 14.74 11.73 14.17 13.95 11.55 13.03 13.44 Net securities gains or losses (—), after taxes............................. .54 .27 .46 .24 .26 .54 .49 .38 .64 .49 .50 .59 .54 All other income (net)................................................................... .05 .12 .01 .12 .07 .09 .05 .09 .08 .04 .02 .03 .03 Net income1................................................................................... 14.55 19.54 19.10 15.92 9.89 16.29 15.28 12.20 14.89 14.48 12.07 13.65 14. 01 A 98 MEMBER BANKS, 1972 □ JUNE 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...................................................................... 5.64 5.49 5.58 5.39 5.39 5.65 5.50 5.57 5.73 5.57 5.58 5.71 5.71 Other U.S. Govt, securities (agencies and corporations)............. 4.92 3.65 4.24 4.09 4.24 4.91 5.27 4.52 5.06 5.27 4.73 4.78 5.44 Obligations of States and political subdivisions............................. 4.19 3.92 4.03 4.05 3.78 4.21 4.11 4.33 4.20 4.16 4.34 4.22 4.24 All other securities............................................................................... 6.16 5.07 5.57 5.98 7.32 5.97 6.57 5.30 6.00 6.88 5.86 6.10 6.41 On loans:2 Interest, fees, and other loan income............................................... 8.24 8.66 8.60 7.80 8.74 8.73 8.03 8.63 8.46 8.00 8.26 8.12 7.82 Net loan losses (—) or recoveries5................................................... -.18 .06 -.20 -.24 -.34 -.24 -.23 -.16 -.17 -.21 -.06 -.17 -.17 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.................................................................. 14.25 21.34 14.94 8.07 20.44 14.40 9.85 20.19 14.73 10.55 19.22 15.48 11.64 Other U.S. Govt, securities (agencies and corporations)......... 5.04 5.12 4.34 1.70 6.93 5.21 2.97 6.41 5.67 3.81 6.90 5.35 5.02 Obligations of States and political subdivisions......................... 12.49 6.95 12.61 11.91 5.59 12.72 14.42 6.87 12.74 14.71 6.71 12.55 14.95 All other securities.......................................................................... .73 .46 .59 .58 .65 .48 .56 .66 .59 .74 .91 .82 1.03 Gross loans2.......................................................................................... 52.60 44.99 47.92 53.68 48.08 50.12 52.59 51.04 51.73 53.74 54.13 54.25 54.59 Cash assets............................................................................................. 12.48 19.72 17.52 20.24 15.99 14.69 16.10 13.06 12.31 13.13 10.48 9.59 10.01 Real estate assets.................................................................................. 1.62 .97 1.68 1.86 1.71 1.79 2.00 1.23 1.64 1.94 1.29 1.44 1.60 Percentage of gross loans:2 Commercial and industrial loans...................................................... 19.21 13.52 21.22 36.20 13.38 20.72 31.81 12.36 18.29 27.22 10.14 13.81 20.13 Loans to farmers.................................................................................. 13.22 32.39 18.35 2.36 29.01 16.28 4.08 32.64 17.08 3.57 22.09 13.54 3.84 Real estate loans................................................................................... 27.83 10.46 13.90 15.62 16.00 18.86 20.81 18.15 23.88 27.98 32.25 36.47 38.77 Loans to individuals for personal expenditures............................. 28.01 26.15 30.44 25.05 26.28 30.44 27.89 23.41 28.92 30.48 24.47 26.69 28.73 All other loans2.................................................................................... 11.73 17.48 16.09 20.77 15.33 13.70 15.41 13.44 11.83 10.75 11.05 9.49 8.53 Other ratios (per cent): Interest and fees on loans to loans...................................................... 7.80 7.90 7.84 7.28 8.11 8.10 7.61 8.09 7.99 7.69 7.83 7.74 7.57 Interest on time and savings deposits to time and savings deposits6. 4.71 4.06 4.49 4.52 4.62 4.67 4.70 4.78 4.79 4.72 4.69 4.75 4.73 Income taxes to net income plus income taxes.................................. 18.34 23.51 23.81 25.69 19.54 20.25 19.42 18.98 19.00 15.63 18.90 17.76 14.43 Time and savings deposits to total deposits....................................... 56.36 18.97 30.31 32.89 45.89 45.82 45.58 55.00 55.44 54.97 67.20 67.80 67.08 Total capital accounts and reserves to total assets7......................... 8.52 12.36 9.83 8.90 10.49 8.85 8.34 9.63 8.29 8.07 9.38 8.12 7.73 Number of banks8......................................................................................... 5,584 137 231 145 119 469 340 211 955 609 249 1,374 745 For notes see p. A-101. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OPERATING RATIOS BY FEDERAL RESERVE DISTRICT (Averages of individual ratios expressed as percentages) All New Phila­ Cleve­ Rich­ St. Minne­ Kansas San Item districts Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran­ cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............... 10.38 9.49 9.52 9.59 10.13 11.06 11.58 9.93 10.56 10.07 10.72 10.92 9.13 Net income............................................................................................. 10.90 9.92 9.88 10.11 10.57 11.64 12.16 10.53 11.20 10.56 11.08 11.46 9.99 Percentage of net income: Cash dividends paid.............................................................................. 27.73 38.94 32.08 31.39 30.28 27.26 25.14 26.58 25.64 25.87 27.44 25.46 27.98 Sources and disposition of income: Percentage of total assets: Total operating expenses..................................................................... 5.05 5.24 5.09 4.89 4.87 5.01 5.11 5.07 4.68 5.27 5.06 5.00 5.91 Salaries, wages, and fringe benefits.............................................. 1.35 1.78 1.44 1.10 1.14 1.33 1.41 1.25 1.20 1.29 1.47 1.45 1.81 Interest on time and savings deposits.......................................... 2.36 1.68 2.29 2.67 2.48 2.37 2.19 2.62 2.29 2.82 2.22 2.04 2.33 Occupancy expense of bank premises, net.................................. .20 .31 .25 .16 .16 .20 .21 .19 .17 . 16 .18 .22 .30 All other operating expenses.......................................................... 1.14 1.47 1.11 .96 1.09 1.11 1.30 1.01 1.02 1.00 1.19 1.29 1.47 Total operating income....................................................................... 6.16 6.39 6.06 5.92 6.00 6.24 6.27 6.07 5.83 6.30 6.27 6.17 6.84 Income after taxes and before securities gains (losses)1.............. .84 .83 .78 .82 .88 .91 .90 .77 .86 .74 .88 .90 .69 Net income............................................................................................. .88 .87 .81 .86 .92 .96 .95 .81 .91 .78 .91 .95 .74 Percentage of total operating income: Interest, fees, and other loan income2............................................. 64.22 69.27 64.88 66.69 65.19 66.58 61.70 62.75 60.81 63.42 65.22 64.43 66.60 Securities—Interest and dividends:3 U.S. Treasury securities................................................................... 13.39 9.20 11.37 12.61 15.69 11.57 11.06 15.50 17.05 14.74 14.16 10.82 9.47 Other U.S. Govt, securities (agencies and corporations)........ 4.98 2.42 3.69 4.37 3.02 5.58 6.01 5.06 6.79 6.43 3.91 6.06 4.01 Obligations of States and political subdivisions......................... 8.76 7.47 10.45 9.17 9.36 9.07 10.42 8.45 8.69 7.72 8.01 8.83 6.79 All other securities........................................................................... .78 .86 1.30 2.02 .79 .40 .67 1.19 .56 .40 .36 .69 .40 (Service charges on deposit accounts4).......................................... (3.87) (5.36) (3.87) (2.18) (2.67) (2.70) (5.15) (3.06) (2.73) (3.49) (4.62) (5.26) (6.45) (Trust department income4)............................................................. (2.19) (3.47) (2.95) (1.85) (2.39) (2.02) (2.29) (2.07) (1 .67) (2.04) (1.69) (1.92) (2.89) All other operating income................................................................. 7.87 10.78 8.31 5.14 5.95 6.80 10.14 7.05 6.10 7.29 8.34 9.17 12.73 Total operating income.......................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages................................................................................ 19.29 23.98 20.39 16.08 16.69 18.69 19.72 18.10 18.18 17.95 20.88 21.25 23.14 Officer and employee benefits............................................................ 2.72 4.05 3.37 2.52 2.51 2.75 2.80 2.65 2.47 2.65 2.67 2.36 3.23 Interest on: Time and savings deposits.............................................................. 38.62 26.42 37.92 45.42 41.51 38.19 35.18 43.25 39.42 45.04 35.67 33.18 34.63 Borrowed money............................................................................... .59 .96 1.05 .33 .35 .45 .71 .54 .47 .41 .64 .61 1.30 (Capital notes and debentures4)................................................... (1.12) (.95) (1.00) (1.11) (1.09) (1.36) (.88) (1.18) (1.11) (1.38) (1.27) (.96) Occupancy expense of bank premises, net...................................... 3.29 4.93 4.22 2.90 2.82 3.28 3.42 3.23 3.08 2.61 2.88 3.66 4.39 Provision for loan losses..................................................................... 2.07 2.22 2.36 1.36 1.80 1.86 2.28 1.73 1.66 1.42 2.46 3.03 2.68 All other operating expenses.............................................................. 15.37 19.46 14.61 14.13 15.53 15.15 17.34 13.96 14.96 13.67 15.34 16.67 16.59 Total operating expenses1...................................................... 81.95 82.02 83.92 82.74 81.21 80.37 81.45 83.46 80.24 83.75 80.54 80.76 85.96 Income before taxes and securities gains (losses)........................... 18.05 17.98 16.08 17.26 18.79 19.63 18.55 16.54 19.76 16.25 19.46 19.24 14.04 Income after taxes and before securities gains (losses)................ 13.96 13.21 13.03 14.06 14.90 15.00 14.74 12.89 15.04 12.10 14.46 15.22 10.42 .54 .34 .47 .74 .57 .53 .52 .69 .64 .34 .40 .46 .72 All other income (net)......................................................................... .05 .09 .01 -.01 .03 .09 .12 .09 .11 .02 .06 .09 Net income1........................................................................................... 14.55 13.64 13.51 14.79 15.50 15.62 15.38 13.58 15.77 12.55 14.88 15.74 11.23 A 100 MEMBER BANKS, 1972 □ JUNE 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....................................................................... 5.64 5.60 5.66 5.66 5.58 5.77 5.59 5.72 5.68 5.40 5.62 5.79 5.36 Other U.S. Govt, securities (agencies and corporations)............. 4.92 4.42 5.40 4.61 4.35 5.34 5.27 4.79 4.83 4.83 4.88 5.14 5.28 Obligations of States and political subdivisions............................. 4.19 4.15 4.18 4.00 4.33 4.01 4.27 4.15 4.13 4.33 4.22 4.15 4.12 All other securities............................................................................... 6.16 6.54 7.00 5.92 6.88 5.80 5.74 6.00 5.14 5.95 6.38 6.27 7.70 On loans:1 Interest, fees, and other loan income............................................... 8.24 8.18 7.73 7.54 7.96 8.14 8.60 7.90 8.08 8.14 8.54 8.94 8.91 Net loan losses (—) or recoveries5................................................... -.18 -.20 -.25 -.13 -.14 -.13 -.21 -.17 -.13 -.11 -.20 -.21 -.39 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities.................................................................. 14.25 10.30 12.02 12.99 16.73 12.13 11.99 16.02 17.14 16.99 15.30 11.30 11.09 Other U.S. Govt, securities (agencies and corporations)......... 5.04 2.22 3.52 4.28 2.93 5.39 6.15 5.04 6.91 6.91 3.87 6.31 4.66 Obligations of States and political subdivisions......................... 12.49 11.66 14.96 12.96 12.96 13.23 14.62 11.93 11.89 11.17 11.54 12.55 10.65 All other securities........................................................................... .73 .82 1.14 1.89 .72 .43 .67 1.08 .52 .37 .36 .56 .46 Gross loans2.......................................................................................... 52.60 58.90 54.52 56.54 53.83 54.67 49.79 52.34 48.16 52.24 53.09 50.22 56.12 Cash assets............................................................................................. 12.48 13.38 11.21 9.31 10.69 11.49 13.71 11.25 13.22 10.27 13.78 16.45 13.16 Real estate assets.................................................................................. 1.62 1.99 1.54 1.48 1.53 1.92 2.10 1.49 1.51 1.35 1.32 1.79 2.12 Percentage of gross loans:2 Commercial and industrial loans...................................................... 19.21 26.58 20.35 14.98 14.16 16.03 23.54 17.36 17.00 17.33 18.39 25.28 25.39 Loans to farmers................................................................................... 13.22 1.31 2.90 3.74 5.48 3.42 3.09 13.57 11.89 24.12 32.00 16.88 7.06 Real estate loans................................................................................... 27.83 28.91 36.13 44.85 37.17 33.20 24.67 33.13 30.41 29.27 14.66 13.86 27.03 Loans to individuals for personal expenditures............................. 28.01 32.24 27.85 25.16 32.14 36.23 34.99 24.79 28.70 22.15 22.93 29.32 28.78 All other loans2.................................................................................... 11.73 10.96 12.77 11.27 11.05 11.12 13.71 11.15 12.00 7.13 12.02 14.66 11.74 Other ratios (per cent): Interest and fees on loans to loans....................................................... 7.80 7.80 7.41 7.17 7.51 7.84 8.08 7.50 7.67 7.83 8.02 8.34 8.39 Interest on time and savings deposits to time and savings deposits6. 4.71 4.41 4.39 4.50 4.49 4.62 4.69 4.72 4.77 4.95 4.82 4.91 4.65 Income taxes to net income plus income taxes.................................. 18.34 20.32 12.91 15.45 17.32 19.49 16.43 18.47 19.83 19.82 21.32 17.03 20.01 Time and savings deposits to total deposits........................................ 56.36 43.67 59.51 66.99 62.32 57.89 52.62 61.74 53.30 63.67 51.43 46.41 57.19 Total capital accounts and reserves to total assets7......................... 8.52 9.25 8.88 8.94 8.92 8.76 8.32 8.14 8.54 7.87 8.68 8.73 7.71 Number of banks8.......................................................................................... 5,584 218 321 292 460 358 544 927 428 495 783 619 139 1 Excludes minority interest in operating income, if any. 8 The ratios for 120 member banks in operation at the end studying the financial results of operations of individual banks, 2 Loans include Federal funds sold and securities purchased of 1972 were excluded from the compilations because of un­ while ratios based on aggregates show combined results for under agreements to resell. availability of data covering the complete year’s operations, the banking system as a whole and, broadly speaking, are the 3 Excludes trading-account securities. certain accounting adjustments, lack of comparability, and more significant for purposes of general analyses of credit 4 Averages exclude banks not reporting these items, or re­ so forth. and monetary problems. porting negligible amounts. Figures of revenue, expenses, and so forth, used in the 5 Net losses for banks on a valuation-reserve basis are the Note.—These ratios, being arithmetic averages of the calculations were taken from the annual income and dividends excess of actual losses over actual recoveries credited and operating ratios of individual member banks, differ in many reports for 1972. Balance sheet figures used in the compila­ charged to valuation reserves; net recoveries are the reverse. cases from corresponding ratios computed from aggregate tions were obtained by averaging the amounts shown in each For all other banks, net losses are the amount deducted from dollar amounts shown in the May 1973 issue of the Bulletin. bank’s official condition reports submitted for Dec. 31, 1971, operating income as an operating expense. Such differences result from the fact that each bank’s figures June 30, 1972, and Dec. 31, 1972. Savings deposits are in­ 6 Banks reporting no interest paid on time deposits were have an equal weight in calculation of the averages, whereas cluded in the time deposits figures used in these tables. excluded in computing this average. the figures of the many small and medium-sized banks have For details concerning comparability of income and related 7 Includes capital notes and debentures and all valuation little influence on the aggregate dollar amounts. Averages of data for 1969 and earlier years, see Bulletin for July 1970, reserves. individual ratios are useful primarily to those interested in pp. 564-72. JUNE 1973 □ MEMBER BANKS, 1972 A 101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 BANK HOLDING COMPANY GROUPS □ JUNE 1973 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1972 A. Details for 50 States and District of Columbia Number of offices Assets Deposits Banks and branches As a As a State, and class of bank Number of percentage percentage companies1 As a In of all In of all Banks Branches percentage millions commercial millions commercial Total of all of dollars bank of dollars bank commercial assets deposits banking offices 50 States and District of Columbia—Total. 1,607 2,720 13,441 16,161 467,487 379,355 Member...................... 1,354 11,206 12,560 417,921 335,869 Nonmember............... 1,366 2,235 3,601 49,566 43,486 Alabama—Total. 16 32 177 209 34.5 3,461 44.3 2,948 43.4 Member........... 16 134 150 43.1 2,765 49.7 2,331 48.6 Nonmember... 16 43 59 22.9 696 31.0 617 30.9 Alaska—Total.. 1 4 5 6.7 78 9.4 70 9.4 Member......... Nonmember.. 1 4 5 38.5 78 42.2 70 42.7 Arizona—Total. 6 227 233 59.3 3,409 54.8 2,929 55.8 Member......... 2 127 129 48.5 2,051 43.7 1,749 44.5 Nonmember.. 4 100 104 81.9 1,358 88.8 1,180 89.3 Arkansas—Total. 20 21 37 58 13.1 947 19.6 796 18.8 Member........... 9 27 36 18.6 772 25.2 639 24.3 Nonmember... 12 10 22 8.8 175 9.9 157 9.8 California—Total. 45 48 2,861 2,909 85.5 71,537 92.8 59,259 92.5 Member............. 19 2,591 2,610 89.9 66,830 95.7 55,168 95.4 Nonmember.... 29 270 299 60.0 4,707 65.6 4,091 65.6 Colorado—Total. 72 120 18 138 43.4 5,417 76.6 4,624 76.7 Member........... 73 10 83 53.2 4,543 81.8 3,863 81.1 Nonmember... 47 8 55 34.0 874 57.6 761 60.2 Connecticut—Total. 10 316 326 58.0 5,214 70.0 4,499 69.8 Member................ 6 215 221 64.1 4,032 78.2 3,476 78.1 Nonmember......... 4 101 105 48.4 1,182 51.6 1,023 51.2 Delaware—Total. 3 26 29 22.5 345 17.0 312 18.6 Member........... 1 2 3 9.1 12 2.7 10 2.6 Nonmember... 2 24 26 27.1 333 21.1 302 23.5 District of Columbia—Total... 3 35 38 30.4 936 25.2 814 25.4 Member.................................... 2 29 31 27.0 674 19.7 577 19.7 Nonmember.............................. 1 6 7 70.0 262 87.3 237 87.8 Florida—Total.. 62 306 20 326 52.4 15,968 71.1 13,964 70.7 Member......... 168 1 169 65.8 11,818 80.4 10,246 79.9 Nonmember.. 138 19 157 43.0 4,150 53.6 3,718 53.7 Georgia—Total. 26 36 273 309 34.0 6,878 56.5 5,286 53.2 Member......... 16 240 256 67.7 6,167 79.9 4,697 77.6 Nonmember.. 20 33 53 10.0 711 15.9 589 15.2 Hawaii—Total., 1 65 66 40.0 893 36.6 779 36.6 Member Nonmember. 1 65 66 42.9 893 38.2 779 38.3 Idaho—Total.. 3 78 81 42.0 875 41.7 770 41.2 Member.... 2 78 80 50.0 864 48.5 760 47.9 Nonmember. 1 1 3.0 11 3.5 10 3.6 Illinois—Total. 150 143 24 167 12.9 32,704 59.3 25,814 56.6 Member.... 51 12 63 10.8 29,163 66.8 22,641 63.7 Nonmember. 92 12 104 14.5 3,541 30.8 3,173 31.4 Indiana—Total. 26 23 196 219 19.4 5,547 35.2 4,364 32.4 Member......... 13 171 184 29.6 5,008 46.1 3,878 42.7 Nonmember.. 10 25 35 6.9 539 10.9 486 11.0 Iowa—Total.... 139 157 119 276 27.2 3,926 40.9 3,314 39.5 Member 50 50 100 39.8 2,581 54.7 2,105 52.7 Nonmember. 107 69 176 23.1 1,345 27.6 1,209 27.5 Kansas—Total. 110 107 19 126 18.5 2,357 31.7 1,985 30.8 Member.... 38 10 48 20.4 1,525 37.3 1,255 36.4 Nonmember. 69 9 78 17.5 832 24.8 730 24.5 Kentucky—Total. 9 43 52 7.1 856 10.6 697 9.9 Member........... 4 37 41 12.8 787 16.7 635 15.7 Nonmember..., 5 6 11 2.7 69 2.1 62 2.1 Louisiana—Total. 16 16 87 103 15.2 3,275 31.7 2,679 30.4 Member............. 6 56 62 21.0 2,405 37.3 1,952 36.0 Nonmember..., 10 31 41 10.7 870 22.3 727 21.4 Maine—Total.. 23 181 204 69.6 1,234 68.3 1,074 68.0 Member.... 13 122 135 65.9 849 63.1 739 62.7 Nonmember. 10 59 69 78.4 385 83.2 335 83.5 For notes see p. A-104. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JUNE 1973 □ BANK HOLDING COMPANY GROUPS A 103 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1972—Continued A. Details for 50 States and District of Columbia—Continued Number of offices Assets Deposits Banks and branches As a As a State, and class of bank Number of percentage percentage companies1 As a In of all In of all inks Branches percentage millions commercial millions commercial Total of all of dollars bank of dollars bank commercial assets deposits banking offices Maryland—Total. 16 19 344 363 52.0 4,688 59.7 4,050 59.1 Member............. 8 204 212 52.5 2,492 55.3 2,120 54.6 Nonmember.... 11 140 151 51.4 2,196 65.5 1,930 65.1 Massachusetts—Total. 22 46 506 552 57.1 12,822 79.0 9,948 77.0 Member.................... 29 432 461 65.2 11,883 86.7 9,129 85.0 Nonmember............. 17 74 91 35.1 939 37.1 819 37.6 Michigan—Total. 30 35 311 346 20.9 6,627 22.8 5,809 22.8 Member........... 22 256 278 21.6 5,841 22.9 5,100 23.0 Nonmember... 13 55 68 18.5 786 21.7 709 21.8 Minnesota—Total. 107 225 17 242 32.0 9,663 71.2 7,914 69.1 Member.............. 105 9 114 48.7 7,914 84.1 6,351 82.4 Nonmember.... 120 8 128 24.5 1,749 42.1 1,563 41.7 Mississippi—Total. 4 58 62 10.6 1,275 26.4 1,073 25.2 Member............... 3 57 60 27.4 1,264 50.7 1,063 49.4 Nonmember........ 1 1 2 .5 11 .5 10 .5 Missouri—Total. 95 169 65 234 29.0 10,414 62.5 8,389 60.0 Member........... 65 31 96 42.9 7,681 78.6 6,009 76.2 Nonmember... 104 34 138 23.7 2,733 39.7 2,380 39.1 Montana—Total. 32 63 8 71 44.9 1,676 68.6 1,467 68.0 Member........... 43 6 49 47.1 1,471 72.6 1,283 72.0 Nonmember... 20 2 22 40.7 205 49.2 184 49.2 Nebraska—Total. 115 115 21 136 27.6 2,606 48.5 2,211 47.5 Member........... 33 13 46 28.6 1,961 55.5 1,629 54.1 Nonmember... 82 8 90 27.1 645 35.0 582 35.3 Nevada—Total. 3 67 70 69.3 1,180 67.3 1,049 67.9 Member......... 2 57 59 68.6 975 68.2 864 68.8 Nonmember.. 1 10 11 73.3 205 63.3 185 63.8 New Hampshire—Total. 11 16 27 17.2 450 29.8 385 29.4 Member........................ 7 12 19 16.7 235 24.7 204 24.8 Nonmember................. 4 4 8 18.6 215 38.5 181 37.2 New Jersey—Total. 19 52 510 562 40.8 10,722 49.3 9,401 48.7 Member............... 44 492 536 45.7 10,423 54.7 9,137 54.0 Nonmember......... 8 18 26 12.6 299 11.1 264 11.1 New Mexico—Total. 27 88 115 51.8 1,724 68.7 1,500 68.2 Member.................. 14 54 68 50.4 1,274 71.0 1,104 70.4 Nonmember........... 13 34 47 54.0 450 62.9 396 62.7 New York—Total. 48 96 2,175 2,271 75.1 125,982 89.2 97,538 89.6 Member............. 76 2,070 2,146 76.6 122,781 93.2 94,959 92.5 Nonmember___ 20 105 125 56.3 3,201 34.2 2,579 41.9 North Carolina—Total. 9 770 779 55.0 8,284 69.2 6,925 68.4 Member...................... 5 584 589 84.1 7,092 89.6 5,872 89.0 Nonmember............... 4 186 190 26.5 1,192 29.3 1,053 29.8 North Dakota—Total. 46 24 70 29.0 963 43.6 861 43.8 Member.................... 19 5 24 39.3 632 58.2 564 58.0 Nonmember............. 27 19 46 25.6 331 29.4 297 29.9 Ohio—Total... 39 116 566 682 35.0 12,457 39.7 10,537 39.5 Member.... 80 460 540 34.8 11,059 39.5 9,313 39.2 Nonmember. 36 106 142 35.5 1,398 41.9 1,224 41.5 Oklahoma—Total. 48 47 16 63 12.1 3,656 42.4 2,988 40.3 Member............. 21 11 32 12.4 3,247 51.0 2,626 48.5 Nonmember.... 26 5 31 11.9 409 18.1 362 18.1 Oregon—Total. 5 280 285 67.1 5,051 83.2 4,302 82.7 Member 3 258 261 93.9 4,810 97.4 4,084 97.2 Nonmember. 2 22 24 16.3 241 21.4 218 21.8 Pennsylvania—Total. 23 25 811 836 35.6 24,418 56.0 18,823 52.6 Member.................. 14 723 737 43.7 23,044 66.3 17,613 62.8 Nonmember........... 11 88 99 14.9 1,374 15.5 1,210 15.6 Rhode Island—Total. 10 10 172 182 91.0 2,493 95.1 2,121 95.2 Member.................... 4 96 100 98.0 2,278 99.6 1,941 99.6 Nonmember............. 6 76 82 83.7 215 64.6 180 64.5 For notes see p. A-104. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 BANK HOLDING COMPANY GROUPS □ JUNE 1973 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1972—Continued A. Details for 50 States and District of Columbia—Continued Number of offices Assets Deposits Banks and branches As a As a State, and class of bank Number of percentage percentage companies1 As a In of all In of all Banks Branches percentage millions commercial millions commercial Total of all of dollars bank of dollars bank commercial assets deposits banking offices 7 7 236 243 41.3 1,860 49.8 1,579 49.2 4 207 211 72.0 1,697 78.0 1,433 77.2 3 29 32 10.8 163 10.5 146 10.8 26 38 72 110 42.1 1,327 59.0 1,183 58.7 21 63 84 64.1 1,155 70.3 1,028 70.0 17 9 26 20.0 172 28.3 155 28.2 Tennessee—Total........................ 20 42 289 331 36.5 7,375 60.8 6,117 59.1 Member................................. 18 220 238 53.6 6,476 75.0 5,327 73.6 N onmember............................. 24 69 93 20.1 899 25.8 790 25.4 Texas—Total................................ 94 153 13 166 12.7 20,918 50.8 16,610 47.9 Member.................................... 77 77 13.1 18,551 59.9 14,505 56.8 Nonmember.............................. 76 13 89 12.3 2,367 23.2 2,105 23.0 Utah—Total................................. 9 13 125 138 66.3 2,134 74.7 1,822 74.1 Member.................................... 7 102 109 86.5 1,761 86.8 1,502 86.5 Nonmember............................. 6 23 29 35.4 373 45.0 320 44.2 Vermont—Total.......................... 2 2 7 9 6.5 107 8.5 96 8.5 Member.................................... 1 7 8 12.7 65 13.7 58 13.6 Nonmember............................. 1 1 1.3 42 5.4 38 5.4 Virginia—Total........................... 27 92 742 834 69.7 9,526 76.6 8,161 75.9 Member..................................... 57 586 643 73.6 8,010 80.2 6,807 79.4 Nonmember.............................. 35 156 191 59.1 1,516 62.0 1,354 62.1 Washington—Total.................... 5 9 227 236 33.9 3,087 36.6 2,675 37.9 Member..................................... 7 226 233 43.2 3,063 40.9 2,653 42.5 Nonmember............................. 2 1 3 1.9 24 2.5 22 2.7 West Virginia—Total................. 8 8 8 3.8 193 4.3 172 4.4 Member..................................... 5 5 4.1 124 3.8 110 4.0 N onmember............................. 3 3 3.4 69 5.5 62 5.6 Wisconsin—Total....................... 54 136 99 235 25.9 7,288 52.2 6,082 50.3 Member.................................... 47 53 100 38.8 5,218 65.6 4,228 63.5 Nonmember............................. 89 46 135 20.7 2,070 34.4 1,854 34.1 Wyoming—Total......................... 19 29 29 40.3 664 53.4 590 53.2 Member..................................... 24 24 43.6 598 57.3 532 57.3 Nonmember............................. 5 5 29.4 66 32.8 58 32.2 B. Summary totals and comparisons 50 States and District of Columbia Holding company groups as a per­ Item Holding All centage of all company commercial commercial groups banks banks Number of banking offices—Total.............................................................................................................. 16,161 38,325 42.1 Banks........................................................................................................................................................... 2,720 13,927 Branches...................................................................................................................................................... 13,441 24,398 Deposits (millions of dollars)...................................................................................................................... 379,355 616,592 61.5 Assets (millions of dollars)........................................................................................................................... 467,487 739,591 63.2 i Data for individual States represent bank holding companies having Note.—Companies listed include those that have reported to the Board subsidiary banks in the respective States rather than bank holding com­ pursuant to the requirements of the Bank Holding Company Act and panies whose principal offices are located in such States. Total does not include some companies that have filed registration statements but whose equal sum of State figures because it has been corrected for duplications; holding company status has not yet been determined by the Board. that is, holding companies that have subsidiary banks in more than one (A list showing the names, offices, total assets, and total deposits of State are included in the total only once. the subsidiary banks in the holding company groups is available upon request.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 105 Board of Governors and Staff shown on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman George W. M itchell, Vice Chairman J. Dewey Daane Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher Robert C. Holland J. Charles Partee, Adviser to the Board * Robert Solomon, Adviser to the Board Robert L. Cardon, Assistant to the Board Joseph E. Kelleher, Assistant to the Board Joseph R. Coyne, Assistant to the Board Edwin J. Johnson, 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 David C. Melnicoff, Deputy Executive J. Charles Partee, Director Director Stephen H. Axilrod, Associate Director Gordon B. Grimwood, Assistant Director and Samuel B. Chase, Associate Director Program Director for Contingency Planning Lyle E. Gramley, Associate Director William W. Layton, Director of Equal Peter M. Keir, Adviser Employment Opportunity James L. Pierce, Adviser Brenton C. Leavitt, Program Director for Stanley J. Sigel, Adviser Banking Structure Murray S. Wernick, Adviser Kenneth B. Williams, Adviser James B. Eckert, Associate Adviser OFFICE OF THE SECRETARY Robert J. Lawrence, Associate Adviser Tynan Smith, Secretary Joseph S. Zeisel, Associate Adviser Theodore E. Allison, Assistant Secretary Edward C. Ettin, Assistant Adviser Murray Altmann, Assistant Secretary Eleanor J. Stockwell, Assistant Adviser Normand R. V. Bernard, Assistant Secretary Stephen P. Taylor, Assistant Adviser Arthur L. Broida, Assistant Secretary Louis Weiner, Assistant Adviser Elizabeth L. CaRxMIChael, Assistant Levon H. Garabedian, Assistant Director 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’Connell, General Counsel Robert F. Gemmill, Adviser Paul Gardner, Jr. , Assistant General Counsel Reed J. Irvine, Adviser Pauline B. Heller, Assistant General Counsel Samuel I. Katz, Adviser John Nicoll, Assistant General Counsel Bernard Norwood, Adviser Robert S. Plotkin, Assistant General Counsel Samuel Pizer, Adviser Andrew F. Oehmann, Special Assistant to the Ralph C. Wood, Adviser General Counsel George B. Henry, Assistant Adviser Helen B. Junz, Assistant Adviser DIVISION OF FEDERAL RESERVE BANK DIVISION OF SUPERVISION AND REGULATION OPERATIONS Frederic Solomon, Director Ronald G. Burke, Director Brenton C. Leavitt, Deputy Director John N. Kiley, Jr., Associate Director Frederick R. Dahl, Assistant Director Walter A. Althausen, Assistant Director Jack M. Egertson, Assistant Director Donald G. Barnes, Assistant Director Janet O. Hart, Assistant Director Harry A. Guinter, Assistant Director John N. Lyon, Assistant Director P. D. Ring, Assistant Director John T. McClintock, Assistant Director James L. Vining, Assistant Director Thomas A. Sidman, Assistant Director Charles C. Walcutt, Assistant Director William W. Wiles, Assistant Director E. Maurice McWhirter, Chief Federal Griffith L. Garwood, Adviser Reserve Examiner Charles L. Marinaccio, Adviser *On leave of absence. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 107 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 Glenn L. Cummins, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES Benjamin R. W. Knowles, Jr., Assistant Director Walter W. Kreimann, Director Henry W. Meetze, Assistant Director Donald E. Anderson, Assistant Director Edward K. O’Connor, Assistant Director John D. Smith, Assistant Director Richard S. Watt, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 108 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman John J. Balles J. Dewey Daane George W. Mitchell Andrew F. Brimmer Darryl R. Francis Frank E. Morris Jeffrey M. Bucher Robert C. Holland John E. Sheehan Robert P. Mayo Arthur L. Broida, Secretary *Robert Solomon, Economist Murray Altmann, Assistant Secretary (International Finance) Normand R. V. Bernard, Assistant Leon all C. Andersen, Associate Economist Secretary Ralph C. Bryant, Associate Economist Thomas J. O’Connell, General Counsel Robert W. Eisenmenger, Associate Economist Edward G. Guy, Deputy General Counsel George Garvy, Associate Economist John Nicoll, Assistant General Counsel Lyle E. Gramley, Associate Economist J. Charles Partee, Senior Economist A. B. Hersey, Associate Economist Stephen H. Axilrod, Economist John E. Reynolds, Associate Economist (Domestic Finance) Karl A. Scheld, Associate Economist 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 109 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 James A. McIntosh New York................. 10045 Roswell L. Gilpatric Alfred Hayes Frank R. Milliken Richard A. Debs 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 Robert D. Duggan 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 70161 Fred Adams, Jr. George C. Guynn Miami Office......... 33152 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. Cordinglev Howard L. Knous Kansas City.............. 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boy sen Denver .................. 80217 Maurice B. Mitchell George C. Rankin Oklahoma City 73125 Joseph H. Williams William G. Evans Omaha .................. 68102 A. James Ebel Robert D. Hamilton Dallas ........................ 75222 Chas. F. Jones Philip E. Coldwell John Lawrence T. W. Plant El Paso.................. 79999 Herbert M. Schwartz Frederic W. Reed Houston................. 77001 M. Steele Wright, Jr. James L. Cauthen San Antonio......... 78295 Irving A. Mathews Carl H. Moore San Francisco......... 94120 O. Meredith Wilson John J. Balles Joseph F. Alibrandi JohnB. Williams 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 110 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 111 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 CREDIT RATIONING: A REVIEW, by Benjamin M. CURITIES MARKET. 1969. 48 pp. $.25 a copy; Friedman. June 1972. 26 pp. 10 or .more sent to one address, $.20. REGULATION Q AND THE COMMERCIAL LOAN MAR­ (Limited supplies, in mimeographed or simi­ KET IN THE 1960’s, by Benjamin M. Friedman. lar form, of staff papers listed on p. 48 of June 1972. 38 pp. report above (other than those contained in THE REGULATION OF SHORT-TERM CAPITAL Parts 1 and 2) are available upon request MOVEMENTS IN MAJOR COUNTRIES, by Rodney for single copies.) H. Mills, Jr. Nov. 1972. 53 pp. JOINT TREASURY-FEDERAL RESERVE STUDY OF FEDERAL RESERVE DEFENSIVE BEHAVIOR AND THE THE GOVERNMENT SECURITIES MARKET: STAFF REVERSE CAUSATION ARGUMENT, by Raymond STUDIES—PART 1 (papers by Cooper, Bernard, Lombra and Raymond Torto. Nov. 1972. 15 pp. and Scherer). 1970. 86 pp. $.50 a copy; 10 or more sent to one address, $.40 each. PART 2 EXAMINATION OF THE MONEY STOCK CONTROL (papers by Ettin, Peskin, and Ahearn and Pes­ APPROACH OF BURGER, KALISH, AND BABB, by kin). 1971. 153 pp. $1.00 a copy; 10 or more Fred J. Levin. March 1973. sent to one address, $.85 each. OBTAINING THE YIELD ON A STANDARD BOND FROM OPEN MARKET POLICIES AND OPERATING PROCE­ A SAMPLE OF BONDS WITH HETEROGENEOUS DURES—STAFF STUDIES (papers by Axilrod, CHARACTERISTICS, by James L. KichUne, P. Davis, Andersen, Kareken et al., Pierce, Fried­ Michael Laub, and Guy V. G. Stevens. May man, and Poole). 1971. 218 pp. $2.00 a copy; 1973. 30 pp. 10 or more sent to one address, $1.75 each. THE DETERMINANTS OF A DIRECT INVESTMENT REAPPRAISAL OF THE FEDERAL RESERVE DIS­ OUTFLOW WITH EMPHASIS ON THE SUPPLY OF COUNT MECHANISM, Vol. 1 (papers by Steering FUNDS, by Frederic Brill Ruckdeschel. June Committee, Shull, Anderson, and Garvy). 1971. 1973. 171 pp. 276 pp. Vol. 2 (papers by Boulding, Chandler, Jones, Ormsby, Modigliani, Alperstein, Meli­ char, and Melichar and Doll). 1971. 173 pp. Vol. 3 (papers by Staats, Willis, Minsky, Printed in full in the BULLETIN. Stackhouse, Meek, Holland and Garvy, and Lynn). 1972. 220 pp. Each volume $3.00 a (Staff Economic Studies are included in list of copy; 10 or more sent to one address, $2.50 reprints below.) each. REPRINTS THE ECONOMETRICS OF PRICE DETERMINATION ADJUSTMENT FOR SEASONAL VARIATION. June CONFERENCE, October 30-31, 1970, Washing­ 1941. 11 pp. ton, D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 a copy; 10 or more sent to one address, $4.50 SEASONAL FACTORS AFFECTING BANK RESERVES. each. Paper ed. $4.00 a copy; 10 or more sent Feb. 1958. 12 pp. to one address, $3.60 each. LIQUIDITY AND PUBLIC POLICY, Staff Paper by FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­ Stephen H. Axilrod. Oct. 1961. 17 pp. ERATE FLUCTUATIONS IN HOUSING CON­ STRUCTION, Dec. 1972, 487 pp. $4.00 a copy; SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 10 or more sent to one address, $3.60 each. July 1962. 6 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen Axilrod. Sept. 1962. 28 pp. STAFF ECONOMIC STUDIES MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. Studies and papers on economic and financial subjects that are of general interest in the field REVISION OF BANK DEBITS AND DEPOSIT TURN­ of economic research. OVER SERIES. Mar. 1965. 4 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 FEDERAL RESERVE BULLETIN □ JUNE 1973 RESEARCH ON BANKING STRUCTURE AND PER­ BANK RATES ON BUSINESS LOANS—REVISED FORMANCE, Staff Economic Study by Tynan SERIES. June 1971. 10 pp. Smith. Apr. 1966. 11 pp. INDUSTRIAL PRODUCTION—REVISED AND NEW A REVISED INDEX OF MANUFACTURING CAPACITY, MEASURES. July 1971. 26 pp. Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. REVISED MEASURES OF MANUFACTURING CAPAC­ Nov. 1966. 11 pp. ITY UTILIZATION. Oct. 1971. 3 pp. REVISED SERIES ON COMMERCIAL AND INDUS­ REVISION OF BANK CREDIT SERIES. Dec. 1971. 5 TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON PLANNED AND ACTUAL LONG-TERM BORROWING MEMBER BANKS. July 1967. 6 pp. BY STATE & LOCAL GOVERNMENTS. Dec. 1971. 11 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE BONDS. ASSETS AND LIABILITIES OF FOREIGN BRANCHES Aug. 1967. 16 pp. OF U.S. BANKS. Feb. 1972. 16 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN WAYS TO MODERATE FLUCTUATIONS IN THE CON­ 1960-67. Apr. 1968. 23 pp. STRUCTION OF HOUSING. Mar. 1972. 11 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. 1968. CHANGES IN BANK LENDING PRACTICES, 1971. Apr. 18 pp. 1972. 5 pp. BUSINESS FINANCING BY BUSINESS FINANCE COM­ CONSTRUCTION LOANS AT COMMERCIAL BANKS. PANIES. Oct. 1968. 13 pp. June 1972. 12 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. SOME ESSENTIALS OF INTERNATIONAL MONETARY 7 pp. REFORM. June 1972. 5 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco- CHARACTERISTICS OF FEDERAL RESERVE BANK nomic Study by Frank de Leeuw and Edward DIRECTORS. June 1972. 10 pp. Gramlich. June 1969. 20 pp. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ REVISION OF WEEKLY SERIES FOR COMMERCIAL OVER-REVISED SERIES. July 1972. 5 pp. BANKS. Aug. 1969. 5 pp. RECENT REGULATORY CHANGES IN RESERVE RE­ EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. QUIREMENTS AND CHECK COLLECTION. July 20 pp. 1972. 5 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ BANKING AND MONETARY STATISTICS, 1971. Se­ CIAL BANKING. Mar. 1970. 16 pp. lected series of banking and monetary statistics for 1971 only. Feb., Mar., and July 1972. 20 SDR’s IN FEDERAL RESERVE OPERATIONS AND pp. STATISTICS. May 1970. 4 pp. YIELDS ON NEWLY ISSUED CORPORATE BONDS. MEASURES OF SECURITY CREDIT. Dec. 1970. 11 Sept. 1972. 2 pp. pp. RECENT ACTIVITIES OF FOREIGN BRANCHES OF MONETARY AGGREGATES AND MONEY MARKET U.S. BANKS. Oct. 1972. 11 pp. CONDITIONS IN OPEN MARKET POLICY. Feb. 1971. 26 pp. REVISION OF CONSUMER CREDIT STATISTICS. Oct. 1972. 21 pp. BANK FINANCING OF MOBILE HOMES. Mar. 1971. SURVEY OF FINANCE COMPANIES, 1970. Nov. 4 pp. 1972. 15 pp. INTEREST RATES, CREDIT FLOWS, AND MONETARY ONE-BANK HOLDING COMPANIES BEFORE THE 1970 AGGREGATES SINCE 1964. June 1971. 16 pp. AMENDMENTS. Dec. 1972. 13 pp. EVOLUTION OF THE PAYMENTS MECHANISM. Dec. TWO KEY ISSUES OF MONETARY POLICY. June 1972. 4 pp. 1971. 4 pp. REVISION OF THE MONEY STOCK MEASURES AND SURVEY OF DEMAND DEPOSIT OWNERSHIP. June MEMBER BANK RESERVES AND DEPOSITS. Feb. 1971. 12 pp. 1973. 19 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 113 TREASURY AND FEDERAL RESERVE FOREIGN EX­ FINANCIAL DEVELOPMENTS IN THE FIRST QUARTER CHANGE OPERATIONS. Mar. 1973. 22 pp. OF 1973. May 1973. 10 pp. YIELDS ON RECENTLY OFFERED CORPORATE DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. BONDS. May 1973. 2 pp. Apr. 1973. 13 pp. FEDERAL FISCAL POLICY, 1965-72. June 1973. 20 CHANGES IN TIME AND SAVINGS DEPOSITS AT pp. COMMERCIAL BANKS, JULY 1972-JAN. 1973. Apr. SOME PROBLEMS OF CENTRAL BANKING. June 1973. 15 pp. 1973. 3 pp. STATE AND LOCAL BORROWING ANTICIPATIONS OPEN MARKET OPERATIONS IN 1972. June 1973. 12 AND REALIZATIONS. Apr. 1973. 4 pp. pp. ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Approximate Date or period to Weekly releases release day which data refer Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received, or Acted on, by the Friday Week ended previous Board (H.2) Saturday Assets and Liabilities of All Commercial Banks in the Wednesday Wednesday, 2 weeks United States (H.8) earlier Capital Market Developments (H.16) Monday Week ended previous Friday Changes in State Member Banks (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding by Industry Wednesday Wednesday, 1 week (H.12)2 earlier Condition Report of Large Commercial Banks in New York Thursday Previous Wednesday and Chicago (H.4.3) Condition Report of Large Commercial Banks and Domes­ Wednesday Wednesday, 1 week tic Subsidiaries (H.4.2)3 earlier Deposits, Reserves, and Borrowings of Member Banks Wednesday Week ended 3 Wed­ (H.7) nesdays earlier Factors Affecting Bank Reserves and Condition Statement Thursday Week ended previous of Federal Reserve Banks (H.4.1) Wednesday Money Stock Measures (H.6) Thursday Week ended Wednes­ day of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednes­ day of previous week Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 114 FEDERAL RESERVE BULLETIN □ JUNE 1973 Weekly releases (cont.) Approximate Date or period to release day which data refer Selected Interest and Exchange Rates for Major Countries Thursday Week ended previous and the United States (H.13) Saturday Weekly Foreign Exchange Rates (H.10) Monday Week ended previous Friday Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wed­ nesday of previous week Weekly U.S. Government Security Yields and Prices Monday Week ended previous (H. 15) Saturday Semimonthly and bimonthly releases Finance Rates and Other Terms on Selected Categories of 20th of month 2nd month previous Consumer Instalment Credit Extended by Finance Com­ panies (J.3) Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last re­ of month lease Monthly releases Assets and Liabilities of All Member Banks by Districts 14th of month Last Wednesday of (G.7.1) previous month Automobile Loans by Major Finance Companies (G.25) 7th working day 2nd month previous of month Automobile Instalment Credit Developments (G.26) 6th working day 2nd month previous of month Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Commercial and Industrial Term Loans Outstanding by 2nd Wednes­ Last Wednesday of Industry (H.12b) Available only as attachment to day of month previous month weekly H.12 release Consumer Credit (G.19) 3rd working 2nd month previous day of month Consumer Instalment Credit at Commercial Banks (G.18) 4th working 2nd month previous day of month Finance Companies (G.20) 5th working 2nd month previous day of month Finance Rate and Other Terms on New and Used Car 30th of month Previous month Instalment Credit Contracts Purchased from Dealers by Major Auto Finance Companies (G.ll) Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Industrial Production (G.12.2) 15th of month Previous month Industrial Production and Related Data (G. 12.3) 15th of month Previous month (Similar data also available annually, see p. A-l 16) Interdistrict Settlement Fund (G.15) 15th of month Previous month Interest Rates Charged on Selected Types of Bank Loans 15th of month 2nd month previous (G. 10) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 115 Monthly releases (cont.) Approximate Date or period to release day which data refer Maturity Distribution of Euro-Dollar Deposits in Foreign 1st of month Last day of 3rd month Branches of U.S. Banks (G.17) previous Maturity Distribution of Outstanding Negotiable Time 24th of month Last Wednesday of Certificates of Deposits (G.9) previous month Monthly Foreign Exchange Rates (G.5) 1st of month Previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month State Member Banks of Federal Reserve System and Non­ 1st week of Previous month member Banks that Maintain Clearing Accounts with month Federal Reserve Banks (G.4) (Also annual) 1st week of End of previous year February Summary of Equity Security Transactions (G.16) Last week of Release date month U.S. Government Security Yields and Prices (G.14) 4th of month Previous month Quarterly releases Bank Rates on Short Term Business Loans (E.2) 18th of 1st 15 days of Febru­ March, June, ary, May, August, September, November December Capacity Utilization in Manufacturing (E.5) 21st of Jan­ Previous quarter uary, April, July, October Flow of Funds: Seasonally adjusted and unadjusted (Z.l) 15th of Febru­ Previous quarter Seasonally adjusted only (Z.la) ary, May, > August, and November Volume and Composition of Individuals’ Saving (Flow of funds series) (E.8) Sales, Profits, and Dividends of Large Corporations (E.6)4 10th of April, 2nd quarter previous June, Septem­ ber, December Semiannual releases Assets and Liabilities of All Commercial Banks, by Class May and No­ End of previous De­ of Bank (E.3.4) vember cember and June List of OTC Margin Stocks (E.7) June 30, De­ Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial May and No­ End of previous De­ and Mutual Savings Banks—Reports of Call (Joint Re­ vember cember and June lease of Federal Deposit Insurance Corp., Board of Governors of Federal Reserve System, and Office of Comptroller of the Currency. Published and distributed by FDIC.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 FEDERAL RESERVE BULLETIN □ JUNE 1973 Annual releases Approximate Date or period to release day which data refer Bank Debits to Demand Deposit Accounts Except Interbank March 25 Previous year and U.S. Government Accounts (C.5) End of Month Demand Deposits Except Interbank and U.S. March 25 Previous year Government Accounts (C.5a) Federal Reserve Par List (G.3) Early No­ Previous September vember 30 (Also monthly supplements) 5th of month Period since last re­ lease Industrial Production and Related Data November Previous year (Available upon request, after being announced) Member Bank Income (C.4) End of May Previous year Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2Contains monthly H.12b release on second Wednesday of month. 3Contains revised H.4.3 data. 4Publication temporarily suspended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 117 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 Ownership by individuals, partnerships, and Arbitrage, 93 corporations, 30 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 17 Banks, by classes, 18, 22, 23, 24, 37 Turnover, 14 Federal Reserve Banks, 12 Deposits (See also specific types of deposits): Nonfinancial corporations, current, 48 Accumulated at commercial banks for payment of Automobiles: personal loans, 30 Consumer instalment credit, 54, 55, 56 Banks, by classes, 18, 23, 27, 37 Production index, 58, 59 Euro-dollars, 88 Federal Reserve Banks, 12, 13, 88 Bank credit proxy, 17 Postal savings, 23 Bank holding companies, banking offices and deposits of group Subject to reserve requirements, 17 banks, Dec. 31, 1972, 102-04 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 Farm mortgage loans, 49, 50 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Federal agency obligations, 11, 12, 13, 14 Brokerage balances, 85 Federal finance: Business expenditures on new plant and equipment, 48 Receipts and outlays, 40, 41 Business indexes, 62 Treasury operating balance, 40 Business loans (See Commercial and industrial loans) Federal funds, 7, 22, 24, 28, 33 Federal home loan banks, 38, 39, 51 Capacity utilization, 62 Federal Home Loan Mortgage Corporation, 53 Capital accounts: Federal Housing Administration, 49, 50, 51, 52, 53 Banks, by classes, 18, 23, 28 Federal intermediate credit banks, 38, 39 Federal Reserve Banks, 12, 13 Federal land banks, 38, 39 Central banks, 92, 94 Federal National Mortgage Assn., 38, 39, 52 Certificates of deposit, 28 Federal Reserve Banks: Coins, circulation, 15 Condition statement, 12 Commercial and industrial loans: U.S. Govt, securities held, 4, 12, 14, 42, 43 Commercial banks, 17, 22, 31 Federal Reserve credit, 4, 6, 12, 14 Weekly reporting banks, 24, 29 Federal Reserve notes, 12, 13, 15 Commercial banks: Federally sponsored credit agencies, 38, 39 Assets and liabilities, 17, 18, 22, 23, 24 Finance companies: Consumer loans held, by type, 55 Loans, 24, 54, 55, 57 Deposits at, for payment of personal loans, 30 Paper, 31, 33 Loans sold outright, 31 Financial institutions, loans to, 22, 24 Number, by classes, 18 Float, 4 Real estate mortgages held, by type, 50 Flow of funds, 70 Commercial paper, 31, 33 Foreign: Condition statements (See Assets and liabilities) Currency operations, 11, 12, 13, 75, 81 Construction, 62, 63 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Consumer credit: Exchange rates, 91 Instalment credit, 54, 55, 56, 57 Trade, 73 Noninstalment credit, by holder, 55 Foreigners: Consumer price indexes, 62, 66 Claims on, 82, 83, 88, 89, 90 Consumption expenditures, 68, 69 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Corporations: Profits, taxes, and dividends, 48 Gold: Security issues, 46, 47 Certificates, 12, 13, 15 Security yields and prices, 34, 35 Earmarked, 88 Cost of living (See Consumer price indexes) Net purchases by United States, 74 Currency and coin, 5, 9, 23 Production, 95 Currency in circulation, 5, 15, 16 Reserves of central banks and govts., 94 Customer credit, stock market, 36 Stock, 4, 75 Government National Mortgage Assn., 52 Debits to deposit accounts, 14 Gross national product, 68, 69 Debt (See specific types of debt or securities) Demand deposits: Hours and earnings, manufacturing industries, 65 Adjusted, commercial banks, 14, 17, 23 Housing permits, 62 Banks, by classes, 18, 23, 27 Housing starts, 63 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 401-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 401-A hguorht 4-A segap o t era secnerefeR( A 118 FEDERAL RESERVE BULLETIN □ JUNE 1973 Income, national and personal, 68, 69 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 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 Manufacturers: Stock market credit, 36 Capacity utilization, 62 Stocks: Production index, 59, 62 New issues, 46, 47 Margin requirements, 10 Yields and prices, 34, 35 Member banks: Assets and liabilities, by classes, 18, 22 Tax receipts, Federal, 41 Borrowings at Federal Reserve Banks, 6, 12 Time deposits, 10, 17, 18, 23, 27 Number, by classes, 18 Treasury cash, Treasury currency, 4, 5, 15 Operating ratios, 96-101 Treasury deposits, 5, 12, 13, 40 Reserve position, basic, 7 Treasury operating balance, 40 Reserve requirements, 9 Reserves and related items, 4, 6, 17 Mining, production index, 59, 61 Unemployment, 64 Mobile home shipments, 63 U.S. balance of payments, 72 Money market rates (See Interest rates) U.S. Govt, balances: Money stock and related data, 16 Commercial bank holdings, 23, 27 Mortgages (See Real estate loans and Residential mortgage Member bank holdings, 17 loans) Treasury deposits at Reserve Banks, 5, 12, 13, 40 Mutual funds (See Investment companies) U.S. Govt, securities: Mutual savings banks, 27, 37, 42, 43, 50 Bank holdings, 18, 22, 25, 37, 42, 43 Dealer transactions, positions, and financing, 44 National banks, 20, 30 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 National defense expenditures, 41, 68 Foreign and international holdings, 12, 81, 84, 88 National income, 68, 69 International transactions, 81, 84 Nonmember banks, 20, 22, 23, 30 New issues, gross proceeds, 46 Open market transactions, 11 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Operating ratios, member banks, 96-101 Ownership, 42, 43 Yields and prices, 34, 35 Payrolls, manufacturing index, 62 United States notes, 15 Personal income, 69 Utilities, production index, 59, 61 Postal savings, 23 Prices: Veterans Administration, 49, 50, 51, 52, 53 Consumer and wholesale commodity, 62, 66 Security, 35 Prime rate, commercial banks, 32 Weekly reporting banks, 24 Production, 58-61, 62 Profits, corporate, 48 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^ Chicago j Omaiui* It.Louis Oklahoma City ^ rn 'A tfa n U Dallas Jiouston Antonio* Miami January 1972 'Drawn hfHW. (jafvin, Cart ☆ (O THE FEDERAL RESERVE SYSTEM ) q a ALAS KA HAWAII L e g e n d Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System © Federal Reserve Bank Cities • Federal Reserve Branch Cities • Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis