Federal Reserve Bulletin, 1973-08

Federal Reserve B ulletin BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 AUGUST 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 Digitized for FRASER in U.S. currency. (Stamps and coupons not accepted) http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 8 □ VOLUME 59 □ AUGUST 1973 551 Financial Developments in the Second Quarter of 1973 562 Staff Economic Studies: Summary 564 Capacity Utilization in Major Materials Industries 567 Statement to Congress 574 Record of Policy Actions of the Federal Open Market Committee 581 Law Department 606 Announcements 610 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 98 Board of Governors and Staff A 100 Open Market Committee and Staff; Federal Advisory Council A 101 Federal Reserve Banks and Branches A 102 Federal Reserve Board Publications A 106 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee 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

Financial Developments in the Second Quarter of 1 9 7 3 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in financial markets during the spring and early summer. Short-term interest rates trended sharply higher during the second quarter and continued on this course in July. The increases occurred in reaction to continued heavy demands for financing in short-term markets, coupled with heightened inflationary expectations and a more restrictive monetary policy stance. By late July Treasury bill rates exceeded 8 per cent, and commercial banks were paying rates generally above 10 per cent to borrow overnight reserves from other banks. Also, following the May 16 suspension of Regulation Q ceilings on large negotiable certificates of deposit (CD’s), bank offering rates on these instruments increased more than 2xh percentage points by mid- July. Faced with the higher costs of obtaining funds, banks adjusted upward the prime rate they charge their most trustworthy large cor­ porate customers from 6Vi per cent in April to 83A per cent in July. Long-term interest rates increased only moderately over the quarter, reflecting the continuing relatively light volume of corporate and municipal bond offerings, but in July yields began moving significantly higher, reacting to the sharp advance in short rates. Also, in recent weeks reduced deposit inflows at thrift institutions have intensified the pressures in mortgage markets, leading to a cutback in new commitments and to substantial increases in mortgage rates. Early in July interest rate ceilings on savings and consumer-type time deposits at commercial banks, savings and loan associations, and mutual savings banks were raised by Federal regulatory agencies to permit these institutions to bid more effectively for deposits in an environment of rising rates on market securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Under the pressure of rising interest rates in the United States and abroad and with widespread concern over U.S. political and economic developments, increased pressure was placed on the dollar in interna­ tional markets. After holding fairly steady from mid-M arch to early May, the dollar depreciated sharply against continental European currencies through early July. W hile disorders in the foreign exchange markets generated increased uncertainty regarding international capital flows and costs, no significant impact of these changes was evident in domestic money markets. Growth in the narrowly defined money supply, M x— currency plus private nonbank demand deposits— was more rapid in the second quarter than in the first. However, inflows of time and savings deposits other than large negotiable CD’s slowed. Issuance of large CD’s continued at a rapid pace, though growth was somewhat less than in the first quarter. The Federal Reserve, seeking to restrain the rising demands for money and credit, took several restrictive actions during the quarter in addition to its normal open market operations. On May 16 it imposed a marginal reserve requirement on further growth in large CD’s issued by member banks that had outstanding $10 million or more in such instruments on this date. Large nonmember banks and foreign bank agencies and branches located in the United States were also asked to comply voluntarily with the marginal reserve requirement action. Late in June the Board raised reserve requirements on net demand deposits of member banks effective in mid-July. And accompanying the rise in market rates, the Federal Reserve discount rate was adjusted upward in several steps to an historically high level of 7 per cent on July 2. AGGREGATES In the second quarter of 1973, total bank reserves (seasonally adjusted) rose at an annual rate of 5.7 per cent, as com pared with 8.8 per cent in the first quarter. This slowdown was associated primarily with a reduction in reserves required to support U.S. Government deposits, which declined sharply between M arch and June. Over the same period, reserves available to support private deposits (RPD’s)— that is, total reserves except those required for U .S. Government and interbank deposits— increased at close to a 12 per cent rate, somewhat faster than in the first quarter. As in the first quarter, most of the second-quarter expansion in RPD ’s was used to support a substantial increase in outstanding large-denomination CD ’s. W hen changes are m easured from the end-month of the quarter, M x increased at a 1.7 per cent annual rate in the first quarter and at a 10.3 per cent rate in the second. However, when changes are measured from the average for a full quarter, rates of growth in Mx were 4.6 per cent and 6.9 per cent for the two quarters, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1973 553 1 [BANK RESERVES________________________ BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ♦Break in series due to reserve requirement change. Monthly averages of daily figures for member banks. Nonborrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. respectively. The quarterly average tends to smooth out fluctuations in the highly volatile M x series. Over the first half of the year the narrowly defined m oney supply grew at about a 6 per cent annual rate. The rate of growth in M x was slower than m ight have been expected in the first quarter given the rapid increase in gross national product. Part of the slowing was apparently attributable to a drawing down of the year-end bulge in State and local demand balances due to shifts of revenue-sharing funds into interest-earning assets. Also, during the first quarter there was some reduction in dollar cash balances in connection with speculative outflows into foreign currencies during the winter. In the second quarter, in addition to the continuing impact of enlarged transactions demands for m oney by consumers and businesses, special factors such as unusually large personal income tax refunds in April arid M ay may have contributed to the faster growth in M x. W ith M x growing more rapidly, second-quarter growth in the broader measures of money— M 2 and M 3— was also at a faster pace than in the first quarter (when m easured from the end-m onth of the quarter), despite the continued slowing in inflows of smalldenom ination time and savings deposits. The ability of banks and other depositary institutions to attract consum er-type thrift deposits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 FEDERAL RESERVE BULLETIN □ AUGUST 1973 TABLE 1 CHANGES IN SELECTED MONETARY AGGREGATES In per cent, quarterly figures are seasonally adjusted annual rates 1972 1973 1972 1973 Item H 1 H 2 H 1 III IV I II Member bank reserves: Total ........................................................ 11.7 9.0 7.3 3.6 14.2 8.8 5.7 Nonborrowed ......................................... 12.1 2.0 4.9 -.8 4.8 -7.1 17.2 Available to support private nonbank deposits1 ......................... 8.6 10.4 11.4 9.9 10.6 10.5 12.0 Concepts of money2 calculated from— End-month of quarter: Mx ................................................................... 7.7 8.5 6.0 8.2 8.6 1.7 10.3 M2 ........................................................ 10.8 10.3 7.7 10.3 10.2 5.7 9.5 M3 ..:............................................................ 13.0 12.1 9.1 12.4 11.5 8.6 9.4 Quarterly average: Mx ................................................................... 6.9 7.6 5.8 7.9 7.2 4.6 6.9 Af2 ................................................................... 10.7 10.0 T.t 10.3 9.5 7.6 7.8 m3 ................................................................... 12.8 12.0 9.4 12.2 11.5 9.9 8.6 Time and savings deposits at: Commercial banks (other than large CD’s) ....................................... 13.7 12.1 9.2 12.3 11.6 9.5 8.7 Nonbank thrift institutions .............. 17.4 15.0 11.6 16.2 13.2 13.6 9.3 Bank credit proxy, adjusted3 .............. 11.4 11.1 13.8 9.8 12.1 15.0 12.2 MEMO (change in billions of dollars, seasonally adjusted): Large CD’s ........................................... 4.4 5.7 18.9 2.4 3.3 11.7 7.1 U.S. Govt, demand deposits at member banks ................................. .4 -1.4 - 1.1 1.4 .9 -2.4 1 Total reserves less required reserves for U.S. Government and interbank deposits. 2Mx is currency plus private demand deposits adjusted. M2 is Mx plus bank time and savings deposits adjusted other than large CD’s. Af3 is JVf2 plus deposits at mutal savings banks and savings and loan associations. 3Total member bank deposits plus funds provided by Euro-dollar borrowings and bankrelated commercial paper. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter, except the quarterly average calculation of concepts of money, which are based on changes in the average amounts outstanding for a quarter. Annual rates of growth have been adjusted for changes in reserve requirements. weakened, as rates on market securities rose still higher above the rates that institutions were allowed to pay under regulatory ceilings. To alleviate the prospect of substantial future slowing of these inflows the Federal Reserve, effective July 1, increased the ceiling rate for member commercial banks on passbook savings deposits by V2 percentage point and on small-denom ination time deposits from XA to % percentage points on various maturities; ceilings were suspended entirely on minimum deposits of $1,000 with maturities of 4 years or more, although the Board subsequently ruled that banks could not issue such instruments in amounts that would exceed 5 per cent of their total demand and time deposits. In coordinated actions, the Federal Deposit Insurance Corporation and the Federal Hom e Loan Bank Board— which have regulatory au­ thority over rates paid by insured nonmember banks, mutual savings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1973 555 Seasonally adjusted monthly averages. Mx is currency plus private demand deposits adjusted. M2 is Mx plus commercial bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings capital at savings and loan associations. banks, and savings and loan associations— announced similar changes in ceiling rates payable by these institutions. W ith growth in other time deposits slow ing, com m ercial banks bid aggressively for funds in the market for large-denom ination C D ’s in the second quarter, and the volum e of such C D ’s out­ standing rose more than $7.1 billion on a seasonally adjusted basis as indicated in Table 1. Late in the quarter, however, CD sales began to moderate som ewhat, in part because offering rates m oved to exceptionally high levels making it more costly for banks to obtain funds in this market. At the same tim e, banks increased the amount of funds raised through sales of bank-related com m er­ cial paper, and in July sharply increased their borrowings of Euro-dollars. The increase in Euro-dollar borrowing occurred pri­ marily in response to a reduction in the marginal reserve require­ ment rate on member bank Euro-dollar holdings from 20 to 8 per cent effective in June. The extent of the pressure on bank sources of funds in the second quarter was indicated by the sharp rise in the rate that banks had to pay for Federal funds— reserve funds borrowed overnight from other banks. Between M arch and June the average Federal funds rate increased 1.4 percentage points, and in July weekly average rates exceeded 10 per cent per annum. As banks sought additional funds through sales of large C D ’s during the second quarter, offering rates on these instruments also registered sharp increases. By M arch, rates offered by m ost large banks on C D ’s with maturi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 FEDERAL RESERVE BULLETIN □ AUGUST 1973 ties of 90 days or more were at ceiling levels— which were below rates available on com peting market instruments. H owever, when the Board suspended interest rate ceilings on all large-denomination C D ’s in M ay, these rates im m ediately began to rise, and by late July, rates on longer-term instruments had risen to levels as high as 10 per cent, up more than 3V2 percentage points from the ceiling-constrained rate levels of M arch. The effective cost of additional CD funds to banks rose even more sharply because of the 3 per cent increase in marginal reserve requirements im posed on C D ’s in m id-M ay. BANK USES OF FUNDS After growing at a rapid 18 per cent rate in the first quarter, total loans and investm ents at all com m ercial banks expanded at a more moderate 9.8 per cent rate in the second quarter. This slackened pace reflected a noticeable moderation in business loan growth accom panied by slower expansion in both consum er loans and loans to nonbank financial institutions. At the same tim e, real estate loans maintained the strong growth pattern of earlier m onths, reflecting not only the assum ed high level of forward com m itm ents but also the still rapid rise in private construction outlays and strong de- BANK CREDIT-components CHANGE, BILLIONS OF DOLLARS U.S. GOVT. SECURITIES 3 i— r- OTHER SECURITIES j ■>------y | j TOTAL LOANS CONSUMER ■ r n n n . n r -t= r Q3 01 Q2 03 01 Q2 m -ffi. ___m ___ * Adjusted for $800 million matched sale- * Adjusted for $800 million matched salepurchase transactions at the end of Sep­ purchase transactions at the end of Sep­ tember. tember. Seasonally adjusted. Loans adjusted for Seasonally adjusted. Business loans ad­ transfers between banks and their holding justed for transfers between banks and their companies, affiliates, subsidiaries, or foreign holding companies, affiliates, subsidiaries, branches. or foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1973 557 mands for mortgage financing. In addition, banks added a relatively m odest amount to their holdings of both U .S. Treasury and other securities in the second quarter, after having substantially reduced these holdings in the preceding period. Though continuing strong, the second-quarter expansion in bank loans to businesses was only a little more than half the extraordinary 39 per cent average rate for the first 3 months of this year. Som e of this slowing can no doubt be attributed to the increases in prime lending rates and the more restrictive nonprice lending terms applied by banks in response to the rising costs and reduced availability of funds. Indeed, late in the quarter a number of businesses turned to the com m ercial paper market to finance a relatively greater proportion of their needs, as evidenced by the $625 m illion seasonally adjusted increase in June in dealer-placed comm ercial paper outstanding. In addition, corporate borrowing in June to finance quarterly tax paym ents seem s to have been less than in previous years, as corporations apparently relied more heavily on the funds made available from a large volum e of maturing C D ’s close to the midmonth tax date. Finance com panies, in response to increasing customer credit dem ands, continued to borrow heavily in the second quarter both from banks and through sales of com m ercial paper. Also in M ay there was a surge in bank borrowing by other financial institutions including real estate investm ent trusts and mortgage com panies. The latter were reportedly borrowing to finance inventories of mortgages. H owever, a sharp drop occurred in those loans late in the quarter as exceptionally high financing costs and the expec­ tation of rising mortgage interest rates induced mortgage com panies to reduce their inventories. A sizable decline in security loans contributed further to the slower growth in total bank credit in the second quarter. Loans to foreign banks, which had increased considerably in the first quarter in association with large dollar outflows into foreign cur­ rencies, showed no further growth in the April-June period. Growth in consumer loans slackened m oderately during the quarter, asso­ ciated in part with a slowing in autom obile sales from their extraordinary levels of the first quarter. Larger than usual tax refunds also may have reduced consumer credit demands during this period. W ith firmer monetary policy and rising interest rates slowing the growth in other sources of funds, banks liquidated moderate amounts of U .S. Government securities between Decem ber and M ay. In June, however, banks held a much smaller than usual volum e of maturing tax bills, and holdings of Treasury issues increased on a seasonally adjusted basis. A moderate increase in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 FEDERAL RESERVE BULLETIN □ AUGUST 1973 other security holdings during the second quarter reflected a sub­ stantial increase in banks’ acquisitions of State and local tax warrants and agency securities in late M ay, which was only partially offset by a reduction in other security holdings in April and June. NONBANK Deposit growth at nonbank thrift institutions, although still rela­ INTERMEDIARIES AND tively high, slowed appreciably during the second quarter. In MORTGAGE MARKETS contrast to the 13.6 per cent growth in such deposits during the first quarter of 1973, the rate of increase over the 3 months ending in June was 9.3 per cent. The sustained and sharp rise in yields on alternative investm ents undoubtedly exerted a depressing influ­ ence on savings deposit growth. This reduction in availability of NONBANK SAVINGS ACCOUNTS new m oney, com bined with large takedowns of outstanding mort­ ANNUAL RATE OF CHANGE. PER CENT gage com m itm ents, caused savings and loan associations to reduce their liquidity and to increase substantially their borrowings from the Federal hom e loan banks, despite the rising cost of new advances. During the second quarter, member savings and loan associations borrowed an additional $2.7 billion from the Federal hom e loan banks— a record amount that brought outstanding bor­ rowings to $11.1 billion. M ortgage debt outstanding increased at a seasonally adjusted quarterly rate of $18 billion in the second quarter of 1973. Although the growth in residential mortgage debt outstanding was below the record for the first quarter, it was about 13 per cent larger than Q2 Q3 Q4 Q1 Q2 1972 1973 the year-earlier change. Nonresidential mortgage debt outstanding Seasonally adjusted. continued to expand at close to the first-quarter rate. Aided by the previously noted large advances from the Federal hom e loan banks and a reduction in liquidity requirements in M ay, savings and loan associations were able to increase their mortgage holdings substantially. Their share of the total increase in net mortgage debt was slightly higher than in the previous quarter, and growth in mortgage holdings of com m ercial banks and mutual savings banks was also large. In contrast, net lending by the nondepositary Federal agencies was lower in the second quarter, TABLE 2 NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly rates 1972 1973 Type of debt II III IV r IIe Total .......................................................... 16.2 16.3 17.0 19.3 18.0 Residential ......................................... 11.8 11.8 12.6 14.5 13.3 Other1 .................................................. 4.4 4.5 4.4 4.8 4.7 1 Includes commercial and other nonresidential as well as farm properties. rRevised ePartly estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1973 559 reflecting increased resales of mortgages to private investors by the Government National M ortgage Association. FUNDS RAISED IN Demands on long-term securities markets continued to moderate SECURITIES MARKETS in the second quarter, especially in the issuance of new corporate stocks. New offerings of stock in the second quarter were one-third below the exceptional first-quarter volum e. A considerable amount of the decline was attributable to a drying-up of initial offerings by small com panies, owing to the prolonged slump in stock prices. The decline in share offerings of closed-end bond funds was also a factor in the lower level of equity financing. TABLE 3 OFFERINGS OF NEW SECURITY ISSUES Quarterly totals, in billions of dollars, not seasonally adjusted 1972 1973 Type of issue II III IV I IIe Corporate securities—Total ............ 11.2 9.2 10.6 8.2 7.5 Bonds .................................................. 7.4 6.1 7.3 4.3 4.8 Stocks .................................................. 3.8 3.1 3.3 3.9 2.6 State and local government bonds .............................................. 6.3 5.5 5.9 5.8 5.7 e Estimated. Note.—Details may not add to totals because of rounding. N ew issues of corporate bonds were slightly above the firstquarter level, primarily because of an increase in private placem ent activity. Offerings in the public bond market were contraseasonally light, as industrial corporations continued to experience strong cash flows and raised an appreciable volum e of their external financing requirements in short-term markets. TABLE 4 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals in billions of dollars, not seasonally adjusted 1972 1973 Item II III IV I II Budget surplus or deficit .................. 5.6 -2.0 -10.5 -9.5 7.6 New cash borrowings, or repayments (-) ........................................................ -6.0 5.0 12.3 8.4 -6.5 Other means of financing1................. 2.8 -3.3 -.5 2.9 -1.4 Change in cash balance..................... 2.4 -.3 1.3 1.8 -.3 MEMO: Net borrowings by Federally sponsored credit agencies2___ 1.4 .7 1.0 2.0 e5.1 Checks issued less checks paid and other accrued items. 2Includes debt of Federal home loan banks, the Federal Home Loan Mortgage Corporation, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and bonds guaranteed by GNMA). e Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Total offerings of new tax-exem pt bonds were only slightly smaller than in the first quarter. W ith many units in good fiscal position because of increased tax paym ents and receipt of revenuesharing funds, the proportion of general obligation bonds continued to decline. H owever, because of heavy sales of revenue bonds, the m onthly average volum e of m unicipal bond issues has remained close to the high levels of 1971 and 1972. The Treasury ran a surplus of $7.6 billion in the second quarter in large part because of seasonally very strong receipts. In view of this surplus and of the high cash balance with which it began the quarter, the Treasury was able to retire $6.5 billion of publicly held debt, a little more than in the comparable year-earlier period, and still maintain an end-of-fiscal-year cash balance of $12.6 billion. Net new borrowing by Federally sponsored agencies in the second quarter was more than double that of the preceding quarter, as the Federal hom e loan banks stepped up their borrowing sub­ stantially and several agencies made sizable asset sales. INTEREST RATES Short-term interest rates continued to surge upward during the second quarter, under the com bined pressure of strong demands for short-term credit and a policy of monetary restraint. Yields on 3-m onth Treasury bills rose 110 basis points from late M arch to late June, and the June average was the highest since January 1970. These rates attracted a sizable volum e of noncom petitive bids from individuals, but the proportion in the weekly auctions during June was still small relative to the situation in early 1970. Average m onthly rates on com m ercial paper also rose by more than 100 basis points, and the Federal funds rate jumped by nearly 150 basis points. Reflecting these rapid changes in m oney market rates, the Federal Reserve discount rate was m oved up first in two steps of V4 point each in M ay to 6 per cent and then to 6V2 per cent in early June. A further V2 point increase was announced in late June, effective as of July 2. Long-term rates m oved up only m odestly during the second quarter, under the moderating influence of relatively light demands on long-term credit markets and heavy flows of funds in the hands of institutional investors. The m onthly average yields on newly issued Aaa utility bonds and on long-term Governm ent bonds increased only 15 basis points on balance, and rates on new-hom e mortgage com m itm ents went up about 25 basis points. H owever, the rate of increase in yields on long-term securities and mortgages began to accelerate in June and by the end of July m ost series had reached new highs for the year. For exam ple, the m onthly average yield on new -issue, Aaa utility bonds for July was 8.01, 37 basis points higher than the June average, and the long-term Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1973 561 3 I INTEREST RATES PER CENT PER ANNUM ♦Level of series was affected by issue of new 20-year U.S. Government bond in January. Monthly averages except for conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commer­ cial paper, dealer offering rates; conventional mortgages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Dept, of Housing and Urban Development; corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to a Aaa utility basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. Government yield rose almost 25 basis points during the month. By the end of July auction yields on issues of the Federal National M ortgage Association were almost 40 basis points higher than at the beginning of the month. Yields on long-term tax-exem pt bonds declined 11 basis points over the second quarter. Over the first half of 1973 rates on tax-exem pt bonds showed the least upward m ovem ent of any of the long-term instruments. This is probably due in large part to the high proportion of revenue bonds in the offerings volum e. Casualty insurance com panies, which tend to prefer these long­ term, generally higher-yielding issues, have been heavy purchasers of tax-exem pt securities over the past 2 years, thus moderating the upward m ovem ent of yields on 20-year bonds. Rates on shorter-term m unicipals rose steeply in the second quarter, particu­ larly in the latter part of the quarter. The rise in yields continued on into August, and long-term tax-exem pt rates finally began to show a response to the rising short-term rates. The Bond Buyer index average for July was 5.40, more than 20 basis points higher than in June. □ 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 Summary MORTGAGE COMMITMENTS ON INCOME PROPERTIES: A NEW SERIES FOR 15 LIFE INSURANCE COMPANIES, 1951-70 Robert M oore Fisher and Barbara Negri Opper— Staff, and Former Staff, Board of Governors Prepared as a staff paper and completed in the summer of 1973 This study analyzes a new monthly data series, This study examines certain secular and cy­ starting in 1951, for loan volume and for interest clical movements in the new series between rate and nonrate terms of new first-mortgage 1951 and 1970. It indicates that sweeping commitments on office buildings, apartment changes took place during the period under houses, shopping centers, hotels and motels, review in both the availability and the terms of and other income properties. The new series new mortgage commitments for income prop­ covers all new commitments of $100,000 and erty. In 1970, the 15 life insurance companies over on multifamily and nonfarm nonresidential approved twice as many new commitments real estate approved by 15 life insurance com ­ — for 7 times the average loan amount and for panies accounting for more than half of industry 15 times the aggregate loan volume— as they assets. The new series, originally based on a had in 1951. On the average, interest rates on joint effort by the National Bureau of Economic new commitments were up sharply, loan-to- Research, the American Life Insurance Associ­ value ratios and loan maturities had eased con­ ation (ALIA), and the Board of Governors of siderably, and capitalization rates had increased the Federal Reserve System, is currently com ­ by relatively much less than interest rates. piled by the ALIA, and summary figures are Between 1951 and 1970, new mortgage published in the Federal Reserve Bulletin. commitments approved by life insurance com ­ 562 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

panies on income properties as well as on 1- borrowers on income properties consistently family homes apparently responded in similar paid higher monthly carrying costs per $100 of but not identical fashion to certain broad under­ debt than did home borrowers. Relative to home lying econom ic, regulatory, and related devel­ mortgages, the higher monthly carrying costs opments. During the 1966 and 1969 episodes on new loan commitments for income properties of credit restraint, new mortgage commitments were due in part to the shorter average maturities for income properties were curtailed to much of income-property loans and in part— after the the same extent as home mortgage financing. late 1950’s— to the higher average interest rates Through the entire 1951-70 period, however, on such financing. □ 563 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capacity Utilization in Major Materials Industries In response to increasing indications in recent with that for capacity utilization in manufac­ months of impending capacity pressures on turing published regularly by the Board, which supplies of materials, the Federal Reserve has is much broader in coverage and is based on reconstructed its measure for capacity utilization different sources and compilation methods. The in major materials industries, developed in the industries represented in the current version of m id-1950’s largely for internal use. The major the major materials utilization measure are basic materials utilization measure is not comparable steel, primary aluminum, primary copper, manmade fibers, paper, paperboard, wood pulp, Note.—This article was prepared by Nathan Ed­ monson, an Economist in the Business Conditions Sec­ softwood plywood, cement, petroleum refining, tion of the Board’s Division of Research and Statistics. broad woven fabrics, and yarn spinning. The OUTPUT, CAPACITY, AND CAPACITY UTILIZATION IN MAJOR MATERIALS INDUSTRIES1 1967 output = 100 Output Capacity Capacity utilization Year I II III IV Avg. I II III IV Avg. I II III IV Avg. 1948 ............... 45.8 46.1 47.0 47.4 46.6 52.1 52.7 53.3 54.0 53.0 88.0 87.5 88.2 87.9 87.9 1949 ............... 46.8 42.3 41.8 39.5 42.6 54.5 55.0 55.5 56.0 55.3 85.9 76.9 75.3 70.5 77.0 1950 ............... 47.3 50.2 52.8 53.8 51.0 56.6 57.1 58.2 58.5 57.6 83.6 88.0 90.7 91.9 88.5 1951 ............... 55.5 56.3 55.8 54.9 55.6 59.5 60.4 61.2 62.4 60.9 93.3 93.2 91.2 88.0 91.4 1952 ............... 54.6 46.1 50.5 57.9 52.3 62.3 63.1 64.0 64.8' 63.6 87.7 73.1 78.9 89.4 82.3 1953 ............... 58.4 59.4 59.3 55.5 58.1 65.1 66.3 67.4 67.7 66.6 89.7 89.6 88.0 81.9 87.3 1954 ............... 51.7 52.8 53.6 56.5 53.6 68.0 68.2 68.5 68.7 68.4 76.0 77.4 78.2 82.3 78.4 1955 ............... 59.5 62.2 63.5 64.3 62.4 68.9 69.3 69.7 70.1 69.5 86.4 89.8 91.5 91.7 89.8 1956 ............... 65.5 65.0 62.5 65.7 64.7 70.2 71.0 71.8 72.7 71.4 93.3 91.5 87.0 90.4 90.6 1957 ............... 64.4 63.6 64.0 61.5 63.4 73.5 74.4 75.0 77.2 75.0 87.6 85.4 85.4 79.7 84.5 1958 ............... 57.3 57.4 63.0 66.4 61.0 79.0 79.9 80.3 81.6 80.2 72.5 71.8 78.4 81.3 76.0 1959 ............... 69.1 73.1 64.7 68.1 68.8 82.8 83.3 86.0 85.6 84.4 83.4 87.8 75.3 79.6 81.5 1960 ............... 72.5 70.0 68.6 66.0 69.3 86.0 87.0 87.5 88.4 87.2 84.2 80.5 78.4 74.6 79.4 1961 ............... 66.7 70.6 74.5 77.0 72.2 89.9 90.1 90.3 91.4 90.4 74.2 78.3 82.5 84.3 79.8 1962 ............... 77.9 76.2 76.7 77.7 77.1 92.8 94.2 94.6 94.8 94.1 83.9 80.9 81.1 82.0 82.0 1963 ............... 79.1 82.4 82.2 83.6 81.8 95.4 95.4 96.8 97.2 96.2 82.9 86.4 84.9 86.0 85.0 1964 ............... 85.4 87.4 90.3 92.2 88.8 98.1 99.1 99.9 100.5 99.4 87.0 88.2 90.3 91.7 89.3 1965 ............... 93.4 94.1 96.3 96.2 95.0 102.1 103.8 105.4 107.8 104.8 91.4 90.7 91.3 89.3 90.7 1966 ............... 99.4 101.2 102.3 100.1 100.7 108.4 110.1 111.2 112.0 110.4 91.7 92.0 92.0 89.3 91.2 1967 ............... 98.4 98.1 99.3 104.0 99.9 113.8 115.2 115.5 115.8 115.1 86.5 85.1 86.0* 89.8 86.8 1968 ............... 105.7 107.6 107.4 109.0 107.4 116.7 118.8 121.6 123.0 120.0 90.6 90.6 88.4 88.6 89.5 1969 ............... 111.1 112.4 113.6 114.4 112.9 123.8 124.4 124.7 124.9 124.5 89.8 90.3 91.1 91.6 90.7 1970 ............... 112.1 110.6 111.4 111.6 111.4 127.1 128.6 128.8 130.2 128.7 88.2 86.0 86.5 85.7 86.6 1971 ............... 114.1 115.8 112.9 114.6 114.4 131.2 132.2 134.9 135.3 133.4 87.0 87.6 83.7 84.7 85.8 1972 ............... 119.3 122.5 125.3 128.8 124.0 136.1 136.3 137.8 139.4 137.4 87.7 89.9 91.0 92.4 90.2 1973 ............... 131.2 132.4 139.8 140.2 93.8 94.4 1 When output as shown here is divided by the capacity index Note.—Estimates based on data from Federal Reserve; shown, the result may differ very slightly from the estimated Census Bureau and Bureau of Economic Analysis of the U.S. utilization rate because of rounding. Also, the method by which Dept, of Commerce; American Paper Institute; Textile Eco­ the quarterly capacity measure is interpolated and aggregated nomics Bureau; American Textile Manufacturers Institute; results in variations in the capacity growth rates within years American Bureau of Metal Statistics; Bureau of Mines of the that are due primarily to round-off. The capacity index is based U.S. Dept, of Interior; and the American Plywood Associa­ mostly on industry data for end-of-year dates. tion. 564 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

table on page 564 presents quarterly seasonally missing years are estimated by an interpolating adjusted data on output, capacity, and capacity procedure based on real investment data. utilization rates for the major materials group Care should be exercised in the use of the for the period 1948 to date. major materials measure, as the concept of The strategic importance of the industries capacity varies from one industry to another. included in the major materials measure exceeds In general, the underlying estimates of a plant’s that implied by their share of either total value capacity can be taken to mean the greatest added in manufacturing— about 8 per cent— or output that the plant could attain within the of the gross value of total manufacturers’ ship­ framework of a realistic work pattern and with ments— about 12 per cent. Because of the im ­ allowances for (1) normal product m ix, (2) portant role that these industries play in the availability of sufficient labor and materials to econom y, the major materials utilization meas­ utilize the equipment in place, and (3) adequate ure offers insights not only into the general maintenance downtime to support sustained relationship between output and capacity in operations. Under this definition, it is possible these basic industries, but also into the avail­ for an industry’s production to exceed its ca­ ability of supplies widely used in many manu­ pacity for short periods of time, and the data facturing processes. occasionally show this, but seldom for longer The index of capacity utilization in major than one quarter. materials industries is a weighted average of Chart 1 reveals that capacity utilization in utilization measures compiled separately for major materials industries was 94 per cent in each of the 12 manufacturing industries in­ the second quarter of this year. This was the cluded. In each instance capacity utilization is highest level since the beginning of the series derived by dividing output by capacity. Data in 1948. The recent recession low was 84 per for year-end capacity in physical units are cent in the third quarter of 1971, following a reported for the component industries by the fourth-quarter-1969 peak of 92 per cent. Departments of Commerce and Interior or by The marked upswing in capacity utilization industry trade associations. These data are based in major materials industries in 1972 and 1973 on large-scale surveys of establishments. Ca­ is attributable to a combination of rapid in­ pacity data for a few of the component indus­ creases in output and of slow expansion in tries are not available each year but are available capacity, figures for which are plotted in Chart occasionally. Such cases require special treat­ 2. The slowing expansion in capacity reflects ment. For example, steel capacity data for a number of influences, including environmental 11 CAPACITY UTILIZATION for MAJOR MATERIALS PER CENT OF CAPACITY 565 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 FEDERAL RESERVE BULLETIN □ AUGUST 1973 2 MAJOR MATERIALS: PRODUCTION and CAPACITY control regulations, low profitability, and the ing Company indicate that over 40 per cent of dampening influence of the recession of paper industry investment and over 20 per cent 1970-71. In some instances industries have had of steel investment in 1972 was so diverted. In to divert a significant proportion of available other instances the distribution of investment financial resources from expansionary invest­ between expansion and modernization appears ment into pollution abatement facilities. For to have shifted noticeably in favor of moderni­ example, surveys by the M cGraw-Hill Publish­ zation in 1972 and in early 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement by Arthur F. Burns, Chairman, These domestic forces of economic expansion Board of Governors of the Federal Reserve were reinforced by a strong upsurge in export System , before the Joint Economic Committee, orders. This June the annual rate of our mer­ August 3, /973. chandise exports was $21 billion larger than a year ago— a rise of 44 per cent. After allowance I am pleased to meet once again with the Joint for price increases, the rise was still close to Economic Committee to present the views of 30 per cent. The extraordinary increase in the Federal Reserve Board on the state of our foreign demand for our products has had sub­ national economy. stantial consequences both for production and In my testimony before this committee in July prices. The dollar value of our imports also rose 1972, I presented evidence of a significant rapidly during the past 12 months; but the strengthening in the pace of economic expan­ increase of about $16 billion in the annual rate sion. Recovery was finally under way in busi­ reflected in large part the rise in import prices, ness capital formation, residential construction and this rise too left its mark on our general was moving up briskly, and consumer buying price level. was continuing its marked uptrend. As this committee is well aware, prices in The rate of expansion in aggregate economic the United States have risen very sharply since activity rose further in the closing months of the beginning of this year. In fact, inflationary 1972, and rapid expansion continued on into pressures over the past 6 or 7 months have been 1973. The physical volume of production of stronger than at any time since the Korean war. goods and services advanced by more than 6 In view of the strong cyclical expansion in per cent during the year ending this June, while production and employment, it would have been the output of the Nation’s factories and mines difficult to avoid an appreciable upward tilt of rose 9 per cent. the price level in the best of circumstances. But These large increases in production were ac­ as the tides of fortune would have it, several companied by a growing demand for labor as factors of an unusual character combined to well as by sizable increases in average output impart to our inflationary problem a new and per manhour. Civilian employment rose by more ominous dimension. nearly 3 million persons during the past 12 First, the wage and price policy of Phase III months, and the rate of unemployment dropped made it easier to pass on rising costs to product from 5.6 to 4.7 per cent of the labor force. prices and also, here and there, to widen profit The pattern of growth in economic activity margins that had been suppressed previously. has been similar in many respects to that of Another and far more important development earlier cyclical expansions. Thus consumers, was the coincidence of strong business expan­ besides spending rather freely out of their in­ sions in the United States and other countries. creased incomes, borrowed heavily to finance To a degree without parallel since W orld War purchases of autos, furniture, and other durable II, economic activity has recently been booming goods. Business firms, meanwhile, enlarged in virtually all industrial countries. For example, their plant facilities and stepped up their acqui­ industrial production during the past 12 months sition of new and more modern equipment. increased about 7 per cent in Belgium and the They also increased their inventories; but as Netherlands, 8 per cent in W est Germany, 9 their sales often ran ahead of expectations, the per cent in France, Canada, and the United over-all ratio of stocks to business sales actually Kingdom, and 19 per cent in Japan. declined. W ith production increasing rapidly in the 567 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 FEDERAL RESERVE BULLETIN □ AUGUST 1973 industrial world, there has been a swelling de­ Sharply higher prices of industrial materials mand for industrial materials, machine tools, have also been a prominent feature of the recent component parts, and capital equipment— goods accelerated pace of worldwide inflation. In the for which this country is a major source of past 12 months, wholesale prices of crude in­ supply. The boom in other countries has thus dustrial materials rose on the average by 18 per had a considerable impact on our domestic cent in our country, and prices of intermediate markets. materials increased 8 per cent. By contrast, The inflationary dimension of this worldwide wholesale prices of finished goods other than boom became visible after m id-1972 when foods rose about 6 per cent. wholesale prices began to increase sharply in Prices of industrial materials typically rise many countries. During the past year prices at faster than those of finished goods during a wholesale rose on the average about 6 per cent period of cyclical expansion— and the more so in W est Germany, 9 per cent in France, 11 per when rapid economic growth occurs simulta­ cent in Japan, and 13 per cent in Canada— to neously in many countries. Recent price devel­ mention a few examples. Toward the end of opments, however, have also been aggravated 1972 the rise in wholesale prices generally ac­ by severe capacity constraints on the production celerated, and rates of inflation are now even of major industrial materials. Calculations by higher than these year-to-year changes indicate. the research staff of the Federal Reserve Board The advance of prices has been particularly indicate that in the first half of this year the large for internationally traded commodities, rate of capacity utilization in major materialssuch as agricultural products and industrial ma­ producing industries— including petroleum re­ terials. The rise in dollar prices of these goods fining, production of aluminum, steel, cement, has been much larger than in German marks, synthetic fibers, paper, paperboard, and the Swiss francs, or Japanese yen, because of the like— was at the highest level since the second huge decline in the purchasing power of the quarter of 1951. dollar over these and many other foreign cur­ In many of these industries, there has been rencies. The depreciation of the dollar thus very little growth of productive capacity in immediately affected our price level; but its recent years. Environmental controls have held indirect effects were probably much larger: first, up construction of new plants, have led to because rising import prices led to some substi­ shutdowns of some existing plants, and have tution of domestic products and thereby served prevented the activation of some older standby to raise their prices; second, because a cheaper capacity. M oreover, investment in new capacity dollar also gave a sharp impetus to exports and was discouraged by the relatively low profits thereby further reinforced the pressures of de­ of our domestic nonfinancial corporations be­ mand on our resources. tween 1966 and 1971. Productive capacity in The most troublesome aspect of the recent the paper industry and also in petroleum refining worsening of inflation in the United States and appears to have grown less than 2 per cent per other countries has been the rapid run-up in food year during the past several years. In the cement prices. At the very time when the demand for industry productive capacity has shown little or foodstuffs was rising in response to the world­ no growth over the past 5 years. Not a single wide expansion in incomes and employment, new cement plant has come into production world agricultural production was restricted by during the past year and a half, and only one unusually bad weather conditions in a number new petroleum refinery has been opened since of countries. In the United States, moreover, 1969. the restrictive effects on output of earlier agri­ These are sobering facts. Lack of sufficient cultural policies were reinforced by disappoint­ attention to investment incentives in these in­ ing crop harvests and some decline in produc­ dustries, and to the special problems they face tion of beef and pork. The resulting rise in our as a consequence of environmental control pro­ food prices was compounded by swelling export grams, has resulted in shortages of many basic demands for agricultural commodities. materials needed by American industry to ex­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 569 pand production. For want of steel, or alumi­ private spending and aggravating price pres­ num, or industrial chemicals, or adequate fuel sures. supplies, business firms in various lines of ac­ Monetary policy began to move in the direc­ tivity have been unable to increase production tion of restraint in the spring of 1972, when rapidly enough to meet the demands of their mounting pressures in financial markets were customers; unfilled orders have mounted; and allowed to express themselves in higher short­ delivery delays have lengthened. Price pressures term interest rates. As the year progressed, it originating in short supplies of major materials became evident that the rise in short-term inter­ have thus been generalized to semifinished and est rates was not accompanied by moderation finished goods. in growth of the major money and credit aggre­ In short, our inflationary problem this year gates to the extent desired. The Federal Reserve, has arisen in substantial measure from sources therefore, began to move more aggressively well beyond the influence of domestic monetary toward monetary restraint last fall. Margin re­ and fiscal policies. A worldwide boom has been quirements on common stocks were raised, and under way, the dollar has been devalued, and what is far more important, open market opera­ both agricultural products and basic industrial tions were directed toward reducing sharply the materials have been in short supply. Violent rate of expansion in nonborrowed reserves of price increases that stem from such sources commercial banks. Since the need for bank cannot readily be handled with customary reserves was growing rapidly at that time, the weapons of economic stabilization policy. rise in the Federal funds rate accelerated, and It now appears, nevertheless, that a somewhat member banks turned increasingly to the dis­ slower rate of growth in aggregate demand late count window as a source of additional reserves. last year and in the first quarter of 1973 would By the end of last year, member bank bor­ have been desirable. Consumer spending rose rowings reached an unusually high level. In faster than we at the Federal Reserve Board had January, therefore, the Board approved the first foreseen, and I believe much more than most in a series of higher discount rates with a view business firms had expected. In the fourth to discouraging reserve expansion through the quarter the growth of real gross national product discount window and to inducing the commer­ reached an annual rate of about 8 per cent, and cial banks to restrain loan expansion. Alto­ this rapid pace continued in the first 3 months gether, the discount rate has been raised six of 1973. So high a rate of expansion is welcom e times this year, to its present level of 7 per when most lines of activity have sizable unuti­ cent— a rate that our financial markets had not lized resources at hand, but it raises problems experienced in over 50 years. In M ay the Board when basic industrial materials are in short also raised the reserve requirements applicable supply and when skilled labor is becoming to any further increase in the amount of large harder to obtain. denomination certificates of deposit (CD’s) out­ Both monetary and fiscal policies moved in standing at member banks. And the Board took the right direction last year. In retrospect it the further and, I believe, unprecedented step appears, however, that restraint should have of addressing a request to nonmember banks and been somewhat greater. True, efforts to hold the agencies or branches of foreign banks to accept line on Federal budgetary expenditures were voluntarily the higher reserve requirements im ­ successful. Contrary to widespread expecta­ posed on member banks. In late June reserve tions, the President’s objective of holding Fed­ requirements were again increased— this time eral expenditures down to $250 billion was not on demand deposits of member banks. only reached but in fact exceeded. Actual bud­ Since these restraining moves were taken getary outlays in the fiscal year just ended fell during a period when credit demands were un­ short of $247 billion. Nevertheless, a deficit of usually heavy, interest rates on short-term se­ over $14 billion is still huge; it was particularly curities increased sharply, and long-term rates inappropriate at a time of rapidly advancing followed suit— although with a lag and to a prosperity; and it played its part in stimulating much smaller degree. The yield on 3-month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Treasury bills has been above 8 per cent of late, lasting downward movement of interest rates in contrast to a level of 5 per cent at the end cannot be reasonably expected until better con­ of last year and 4 per cent at this time a year trol is gained over the forces of inflation. Some ago. And the prime rate of interest on bank loans downward movement of short-term rates may to large businesses has increased since the first occur, however, once we achieve a larger of January from 5% to 8% per cent. measure of success in moderating growth of the Some classes of loans and securities have monetary and credit aggregates. Progress has remained sheltered thus far from the strong been made in this effort, but less than we had upward pressures in markets for short-term se­ hoped for. curities. For example, rates on consumer instal­ In the first quarter of this year, growth of the ment loans are on the average no higher now narrowly defined money supply— that is, cur­ than they were 6 months or a year ago. Rates rency in circulation plus demand deposits— on loans to small business firms appear to have slowed abruptly. At the time it appeared that increased over the past 6 months by little more transitory factors were reducing the public’s than V2 percentage point— in contrast to a rise demand for money but that a substantial bulge of 3 percentage points in the prime rate on large in the money stock would probably soon de­ business loans. Mortgage loan rates, however, velop. W e therefore persisted in moving further are up sharply in recent weeks, although they toward monetary restraint. are still below their earlier peaks in 1970. As events turned out, the growth of currency All in all, existing interest rates in this and demand deposits during the second quarter country are clearly much higher than any of us exceeded our expectations. Taking the two would like. Some advance of interest rates is quarters together, the annual rate of growth unavoidable during a business-cycle expansion, averaged 6 per cent. This was well below the particularly when the economy is booming— as growth rate during 1972, but greater moderation it has been of late. But the underlying reason was needed. for the high level of interest rates is the persist­ Strenuous efforts were made by the Federal ence of inflation since 1965. Inflationary expec­ Reserve to resist the resurgence of monetary tations have by now become fairly well en­ expansion during the second quarter, and these trenched in the calculations of both lenders and efforts are continuing. W e could, to be sure, borrowers. Lenders commonly reckon that loans have exerted still stronger resistance to that may be repaid in dollars whose real value will upsurge in money demand. Had we done so, deteriorate because of inflation, and they there­ we would have run the risk of stimulating far fore tend to hold out for nominal rates of interest larger increases in interest rates— increases of high enough to ensure them a reasonable real a magnitude that might well have created serious rate of return. Borrowers, on their part, antici­ turbulence in financial markets. pating repayment in cheaper currency, are less In any event, indicators of monetary and apt to resist rising costs of credit. credit expansion other than the narrowly defined The marking up of nominal rates of interest money supply show that our restrictive policy during periods of inflation is a process that is was beginning to bear fruit in the second much too familiar to economic historians. quarter. For example, the annual growth rate Businessmen and laymen have also seen its re­ of total bank credit declined to about 10 per cent manifestation in other countries. If I accom­ cent, compared with rates of increase of over plish nothing else this morning, I want to em ­ 15 per cent in the previous two quarters. Bank phasize the simple truth that inflation and high loan expansion, particularly loans to business, interest rates go together and that both the one slowed materially, as lending policies at banks and the other pose perils for economic and social across the country tightened. stability in our country. These are characteristic signs of developing I wish I could offer hope that the general level restraint in the money and credit markets, and of interest rates will soon decline. I cannot in I therefore expect growth in the narrowly de­ good conscience encourage that thought. A fined money supply to slow in the very near Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 571 future. Let me make clear, however, that if the What are the prospects of an early end to direct restrictive actions already taken by the Federal controls on prices and wages? What are the Reserve do not reduce growth of money and prospects for regaining stability in foreign ex­ credit to an acceptable rate, further measures change markets? These are interrelated and dif­ will be adopted as needed. ficult questions; and while neither I nor my W e have thus far avoided a severe stringency colleagues on the Board have the gift of proph­ in credit markets. There has, however, been ecy, we do have the duty of advising the some loose talk of an impending credit crunch, Congress to the best of our ability. which I believe is traceable to failure to appre­ There are, we believe, some convincing signs ciate the significance of what has been done to that economic expansion is slowing to a more minimize the likelihood of any such event. Let sustainable pace. To give one example, indus­ me therefore try to clarify this vital dimension trial production increased at an annual rate of of the credit market. around 9Vi per cent during the first 3 months Some weeks ago the Board suspended the of this year. From March to June the increase remaining ceiling rates on large-denomination receded to an annual rate of about 6 per cent. CD’s. As a consequence, the situation that In part, this slowdown has reflected the im­ banks now face is very different from that of pact of capacity constraints on the physical 1966 or 1969, when inability to bid for CD volume of production. But we also know that funds forced banks to act abruptly and deny the advance of retail sales moderated and that access to credit to a wide range of borrowers. an actual decline occurred in new housing starts Under present circumstances, individual banks during the quarter. All this may portend a more can obtain funds in the CD market if they— and orderly growth of consumer expenditures, and ultimately the business firms that borrow from therefore a lower rate of expansion in aggregate them— are willing to pay the price. Of late, as demand, over the remainder of 1973. However, the cost of CD funds has risen, expansion in the momentum of rising business expenditures the volume of outstanding CD’s appears to have for fixed capital and inventories, together with moderated. But let me add that if further steps surging demands for our exports, seems likely are needed to discourage banks from financing to sustain a good rate of growth in industrial excessive expansion of business loans with CD activity for some months yet. funds, the Board could raise once again the It is against this backdrop of economic con­ reserve requirement on these deposits. ditions that the prospects for price developments The Board, acting in concert with the Federal during Phase IV and beyond must be consid­ Deposit Insurance Corporation and the Federal ered. Home Loan Bank Board, has also taken steps The President’s decision to terminate the to protect the time and savings accounts of freeze on prices that went into effect about depositary institutions, which are the prepon­ mid-June came none too soon. Seriously ad­ derant source of mortgage funds for homebuild- verse effects on agricultural supplies had begun ing. In recent months as market rates of interest to develop because in some cases domestic have become increasingly attractive to deposi­ prices were frozen at levels below production tors, the inflow of savings funds to banks and costs or below prices in foreign markets. Food other thrift institutions has dropped substan­ prices, therefore, moved up sharply as soon as tially. By lifting the ceiling on interest rates the freeze was lifted. payable on time and savings accounts, the reg­ Food prices will probably continue to rise ulatory agencies have reduced the danger of until the supply of agricultural products in­ severe stringency in the mortgage market. creases appreciably once again. Evidence on Let me now turn briefly to the questions that that score is discernible, but as yet inconclusive. are undoubtedly uppermost in the minds of the The midyear crop report by the Department of members of this committee. What are the pros­ Agriculture suggests larger harvests of wheat, pects for cooling off the economy? What are soybeans, and corn in the United States. Our the prospects for reducing the rate of inflation? acreage restrictions on agricultural production, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 FEDERAL RESERVE BULLETIN □ AUGUST 1973 moreover, have now been largely eliminated. direct controls over wages and prices for nearly Also encouraging is the fact that more attention 2 years now, and we can no longer count on is being given to production of soybeans in the benefits to the economy such as were experi­ developing nations— notably in Brazil, M exico, enced in Phases I and II. In view of existing and Argentina. These are favorable trends for circumstances, markets should soon be allowed the longer term. In the near term, however, we to function more freely so that they can perform must be prepared for a continuation of upward their accustomed role in promoting economic pressures on food prices. efficiency, in encouraging investment, and in The same is true of many industrial products. allocating resources to areas of greatest demand. The controls imposed on prices of nonfood There is a continuing role for income policies commodities under Phase IV are stringent. in a modern economy. W e need to move, how­ Costs can be passed through only on a dollar - ever, toward the elimination of mandatory con­ for-dollar basis, and many nonfood commodity trols in areas where competition is reasonably prices will be effectively frozen until about effective in regulating prices and allocating re­ mid-September because of the 30-day prenotifi­ sources. Over the long run we will probably cation period. W e cannot, however, realistically need to have thorough surveillance over wage expect results in Phase IV comparable to those rates and prices in key industries where com pe­ of Phase II. Economic conditions are very dif­ tition is inadequate, but the large majority of ferent now than in the summer and fall of 1971. wage and price decisions are best left to market At that time, we had substantial slack in labor forces. Our economy has grown and prospered markets, and a significant part of our industrial under free enterprise in the past. W e should not capacity was idle. Market forces therefore overlook this teaching of our history or its worked hand in hand with the control program confirmation in other nations. in holding down wage and price increases. At If this judgment is accepted, greater reliance that time, also, a more or less uniform rate of in dealing with inflation— both in the near future inflation had been under way throughout the and over the longer term— will have to be placed economy for some time. The control program, on fiscal and monetary policies. A further rise consequently, did not need to allow many sig­ of prices in the months ahead is unavoidable. nificant price increases in order to prevent But the resulting damage can be minimized if disruptions in production or severe inequities. excess demand is avoided. The inflationary Under present conditions, the repressing ef­ forces that now plague us will then have a better fects of the control program on prices will not chance to burn themselves out. have the support of market forces. W age rate The Federal Reserve is prepared to cooperate increases are creeping up; goods in many mar­ fully in this endeavor. It cannot, however, do kets are in short supply relative to demand; the job alone. Additional fiscal restraint is also foreign orders are there to take up slack that needed at this time. I for one would support might be created by faltering domestic demand; stronger efforts to cut governmental expendi­ import prices are still increasing as a result of tures or actions to increase taxes. Particularly the devaluation of the dollar. Relative prices, appropriate, in my view, would be fiscal meas­ moreover, are badly out of equilibrium. Pro­ ures— such as a variable investment tax credit ducers have experienced sharp increases in costs or a compulsory savings plan— that could be of materials and supplies over the past 6 to 9 quickly reversed, under special legislative rules, months, and many of these cost increases have if economic activity began to weaken, as som e­ not yet been passed through to end products. times happens after a prolonged period of eco­ In the present environment the controls on prices nomic expansion. and wage rates must therefore be administered Evidence of a larger sense of fiscal respon­ with flexibility and practical wisdom if adverse sibility in the United States would help greatly effects on production and employment are to be in restoring the confidence in the dollar that is avoided. so badly needed to stabilize foreign exchange W e have been operating under a system of markets. By M ay of this year, the average dollar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 573 price of 10 major currencies (those of Japan, when market conditions for a time became dis­ Canada, and 8 European nations) had risen some orderly, and normal commercial transactions 20 per cent above the exchange parities pre­ were adversely affected. vailing in the spring of 1970. This degree of In these circumstances, and after full consul­ realignment was generally regarded by financial tation with the Treasury and representatives of authorities as necessary and helpful. But in the other countries, the Federal Reserve began to past 2 to 3 months, our Nation’s currency has intervene in the exchange market. As reported suffered further depreciation— with the average on July 18, in a statement issued jointly by the dollar price of the above 10 currencies up 7 per Board and the Treasury, intervention will take cent— as the dollar price of the mark rose 20 place in the future at whatever times and in per cent, the French franc 10 per cent, and the whatever amounts are appropriate for maintain­ Swiss franc 12 per cent. ing orderly market conditions. This latest depreciation in the value of the A little over a month ago I testified before dollar cannot be justified on any realistic evalu­ your Subcommittee on International Economics ation of international price levels, or underlying that I had misgivings about a general system trends in our econom y, or our balance of trade of floating exchange rates. The experience of or payments. In 1972 we experienced a trade recent weeks has strongly reinforced my skepti­ deficit of nearly $7 billion— a condition that had cism. W hile we should not return to a system to be corrected and is being corrected. By the of exchange rates as inflexible as the one that first quarter of this year the deficit shrank to evolved under the Bretton W oods arrangements, an annual rate of less than $4 billion, and in we also cannot afford a system subject to the the second quarter the deficit practically van­ kind of destabilizing speculation seen recently. ished. Exports will probably rise substantially A major objective of current negotiations on further over the remainder of this year and in monetary and trading relationships is to design 1974 as the effects of our strengthened compet­ and adopt an exchange-rate regime that avoids itive position cumulate. The improvement in our these extremes. But success in arriving at m on­ trade balance is therefore likely to gather m o­ etary arrangements under which international mentum, so that by 1974 and 1975 we should commerce and investment can flourish will be experiencing a sizable trade surplus for the elude us unless steps are taken, both here and first time since the m id-1960’s. abroad, to bring an end to the nearly chaotic The recent excessive depreciation of the dol­ inflationary conditions that now prevail lar in relation to continental European currencies throughout much of the world. occurred despite this favorable outlook for the The domestic and international tasks that lie balance of trade and payments. Its causes cannot ahead of us are difficult but they are manage­ be identified with any precision. M y own im ­ able. They must be seen in perspective. Our pression is that confidence waned with growing Nation is experiencing great prosperity; but it fears that inflation in the United States may have is a marred and joyless prosperity, and so it gotten out of hand. Other factors undoubtedly will remain until we bring inflation under good played their role— among them, the tightening control. W e cannot do so until we put our of monetary policies abroad, especially in W est financial house in order. A massive step in this Germany; the sharp speculative run-up in the direction would be taken if the Congress market price of gold; the spread of some uncer­ adopted this year proposals for budgetary reform tainty abroad about the ability of our Govern­ such as were recently put forward by the Joint ment to handle economic problems effectively; Study Committee on Budget Control. Its unani­ and wild rumors about another devaluation of mous report favoring early enactment each year the dollar. of a ceiling on expenditures, which would be The unsettled behavior of exchange markets organically related to the state of Federal reve­ since mid-M ay has been a cause of serious nues and the condition of the econom y, deserves concern to the monetary authorities here and the enthusiastic support of this enlightened abroad. This concern heightened in early July committee. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open M arket Com m ittee at each m eeting, in the form in which they will appear in the Board’s Annual Report, are released approxim ately 90 days following the date of the m eeting and are subsequently published in the Federal Reserve B ulletin. The record for each m eeting includes the votes on the policy decisions made at the m eeting as well as a resume of the basis for the decisions. The summary descriptions of econom ic and financial conditions are based on the information that was available to the Com m ittee at the time of the m eeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open M arket Com m ittee are issued to the Federal Reserve Bank of New York— the Bank selected by the Com m ittee to execute transactions for the System Open M arket 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 m eetings held in 1973 were published in the B ulletins for April, pages 286-92; M ay, pages 345-51; June, pages 435-44; and July, pages 513-20. The record for the m eeting held on M ay 15, 1973, follows: 574 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEETING HELD ON MAY 15, 1973 Domestic policy directive Estimates of the Com m erce Department indicated that real output of goods and services had grown at an annual rate of 8 per cent in the first quarter, the same rate as in the fourth quarter of 1972. Growth appeared to be moderating som ewhat in the current quarter, and staff projections continued to suggest that it would moderate further in the second half of 1973. In April industrial production continued to expand at a high rate, reflecting further substantial gains in output of consumer goods, business equipm ent, and materials. Em ploym ent in manufacturing establishm ents also rose appreciably, and the average factory workweek advanced to the highest level since late 1966. H owever, total nonfarm payroll em ploym ent rose less rapidly than in the first 3 months of the year, and the unem ploym ent rate remained at 5 per cent. Retail sales declined in April, according to the advance report, after having increased sharply in the first quarter. The advance in average hourly earnings of production workers on nonfarm payrolls stepped up in M arch and April, follow ing only m odest increases in the first 2 months of the year. The consumer price index continued to rise rapidly in M arch, as retail prices of foods soared for the third successive month and prices of other consum er goods and services continued to m ove up at substantial rates. In April wholesale prices of consumer foods rose considerably further. As in February and M arch, m oreover, in­ creases am ong wholesale prices of industrial com m odities were large and widespread. The latest staff projection of growth in real output in the second quarter of 1973 was essentially unchanged from that of 4 weeks earlier, although the projected increase in inventory investm ent was som ewhat larger. It was still expected that the rise in consum ption expenditures would be substantial, but not so large as the extraor­ dinary increase in the first quarter; that expansion in business fixed investm ent and in State and local governm ent purchases of goods and services would remain strong; and that outlays for residential construction would turn down. For the final two quarters of the year, expectations were that residential construction outlays would decline further; that fixed 575 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 FEDERAL RESERVE BULLETIN □ AUGUST 1973 investm ent and inventory investm ent of businesses would expand less rapidly; and that the rise in disposable incom e and consum ption expenditures would slow considerably. U .S. merchandise exports rose substantially in M arch, led by a large further increase in agricultural com m odities. Imports re­ mained at the January-February level, and the trade deficit dropped sharply. For the first quarter as a whole, the trade deficit was well below that in the fourth quarter of 1972. Exchange markets had been quiet in late April and early M ay, and the dollar had firmed against m ost other major currencies— especially just after the announcement, on April 26, of the U .S. foreign trade statistics for M arch. On the day before this m eeting, however, new speculative pressures developed and the dollar de­ clined markedly against major European currencies. At U .S. com m ercial banks, expansion in business loans, al­ though still substantial, moderated further in April in association with a reduction in business substitution of bank credit for com ­ mercial paper financing. Growth in real estate and consumer loans remained rapid, while bank holdings of securities declined som e­ what. Growth in the narrowly defined m oney stock (M ^,1 which had been at an annual rate of less than 2 per cent in the first quarter,2 picked up in April. Reflecting the faster rate of expansion in M 1? growth in the more broadly defined m oney stock (M 2)3 also in­ creased; inflows of time and savings deposits other than large-de­ nom ination C D ’s were about the same as in M arch. The increase in the outstanding volum e of large-denom ination C D ’s, although still large, was below the record M arch expansion, and U .S. Government deposits declined. Consequently, the bank credit proxy4 grew much less rapidly than in M arch. Inflows of savings to nonbank thrift institutions slowed consid­ 1 Private demand deposits plus currency in circulation. 2 Growth rates cited are calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. 3MX plus commercial bank time and savings deposits other than large-denomination CD’s. 4Daily-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 577 erably in April, in part because of earlier increases in market interest rates. M ortgage interest rates continued to edge up. The Treasury announced on April 25 that in its m id-M ay financ­ ing it would auction a 7-year, 6% per cent note and a 25-year, 7 per cent bond to refund up to $2.65 billion of the $4.30 billion of publicly held notes maturing on M ay 15; the balance of the maturing notes held by the public would be redeemed for cash. In the auctions, held on M ay 1 and 2, $2 billion of the note was sold at an average price to yield 7.01 per cent, and $650 m illion of the bond was sold at the lowest bid price (paid by all successful bidders) to yield about 7.11 per cent. In addition to the cash redem ption of part of the notes maturing in m id-M ay, the Treasury announced that, in view of its strong cash position, it would reduce the size of the weekly auction of 6-m onth bills by $100 m illion and that it foresaw no need to borrow new m oney until August. System open market operations since the m eeting on April 17 had been guided by the Com m ittee’s decision to seek bank reserve and m oney market conditions consistent with moderate growth in monetary aggregates over the months ahead. Soon after the April m eeting, it appeared that the monetary aggregates would grow in the April-M ay period at rates in excess of an acceptable range even though estim ates suggested that reserves available to support private nonbank deposits (RPD’s) would grow in that period at an annual rate below the range of 10 to 12 per cent specified by the Com m ittee. The divergent tendencies were attributed to two main factors: Banks’ excess reserves were lower than anticipated and currency in circulation was growing more rapidly than ex­ pected. In view of the strength in the monetary aggregates, System operations had been directed toward lim iting growth in reserves, while continuing to avoid marked changes in m oney market condi­ tions and while taking account of the Treasury financing. At the time of this m eeting, it still appeared that growth in R PD ’s would fall som ewhat short of the specified range.. The Federal funds rate was about 13A per cent in the days before the m eeting, compared with about 7 per cent shortly before the preceding m eeting. In the 4 weeks ending M ay 9, member bank borrowings averaged about $1,715 m illion, compared with an average of about $1,850 m illion in the preceding 4 weeks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Short-term market interest rates, which had risen sharply earlier in the year, advanced little further on balance in the inter-m eeting period, despite the substantial increase in the Federal funds rate. M arkets, especially for Treasury bills, were strengthened by a shortage in the market supply of bills and by current and prospective Treasury financing operations. On the day before this m eeting, the market rate on 3-m onth Treasury bills was 6.17 per cent, compared with 6.19 per cent on the day before the April m eeting. Federal Reserve discount rates were raised lA percentage point, to 5% per cent, at all Reserve Banks on April 23 and XA point further, to 6 per cent, at 11 of the Reserve Banks on M ay 11. Interest rates on long-term securities had changed little since the April m eeting of the Com m ittee, as demands for funds in the capital markets had remained moderate. The over-all volum e of new public offerings of corporate and State and local governm ent bonds had declined substantially in April, and although a partial recovery was in prospect, it appeared likely that the volum e in M ay would be close to the reduced monthly rate in the first quarter. The Com m ittee agreed that the econom ic situation and prospects called for som ewhat slower growth in the monetary aggregates over the months im m ediately ahead than had occurred on average in the past 6 months. A staff analysis suggested that the unusually large refunds of Federal personal incom e taxes had added tem po­ rarily to both demand deposits and consum er-type time and savings deposits and that as such refunds dim inished growth in the demand for m oney would tend to moderate in the period im m ediately ahead. The analysis also suggested that the lagged effects of recent in­ creases in interest rates would work in the direction of moderating the demand for m oney. Faced with sustained strong demands for credit, banks were likely to continue to increase substantially the outstanding volum e of large-denom ination C D ’s. Therefore, ac­ cording to the analysis, relatively rapid growth in R PD ’s in the M ay-June period was likely to be consistent with som ewhat slower growth in the monetary aggregates than had occurred on average over the past 6 months. The staff analysis also indicated that such a slowing in monetary growth would probably be associated with further increases in short-term interest rates and also with som e rise in longer-term rates. The Com m ittee decided that operations should be directed at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 579 fostering RPD growth during the M ay-June period at an annual rate within a range of 9 to 11 per cent, while continuing to avoid marked changes in m oney market conditions. The members also agreed that allowance should be made in operations if growth in the monetary aggregates appeared to be deviating from an accept­ able range and that in the conduct of operations account should be taken of international and dom estic financial market develop­ ments. It was understood that the Chairman might call upon the Com m ittee to consider the need for supplementary instructions before the next scheduled m eeting if significant inconsistencies appeared to be developing am ong the Com m ittee’s various objec­ tives and constraints; the chances seem ed greater than usual that such consultation would be needed. The follow ing dom estic policy directive was issued to the Federal Reserve Bank of N ew York: The information reviewed at this meeting suggests that growth in real output of goods and services is likely to moderate somewhat in the current quarter from an exceptionally rapid pace in the two preceding quarters. Over the first 4 months of this year, employment rose considerably but the unemployment rate remained about 5 per cent. Retail prices of foods continued upward at an extraordinary pace in March, and in April average wholesale prices of consumer foods rose further. Increases in wholesale prices of industrial com­ modities were large and widespread in April, as in the two preceding months. In foreign exchange markets, which had been relatively quiet since mid-March, speculative pressures have developed in recent days and exchange rates for major European currencies have appreciated against the dollar. The U.S. merchandise trade balance improved considerably in the first quarter, reflecting in part an especially large increase in agricultural exports. In April growth in the narrowly defined money stock picked up from its low first-quarter rate, and growth in the broadly defined money stock also increased. Growth in business loans at banks slowed, and banks reduced the pace at which they issued large-de­ nomination CD’s; consequently, the bank credit proxy expanded somewhat less than in other recent months. In recent weeks Federal Reserve Bank discount rates have been increased in two steps of one-quarter point to 6 per cent by May 11. Most short-term market interest rates, which had risen sharply earlier, have advanced slightly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 FEDERAL RESERVE BULLETIN □ AUGUST 1973 further. Interest rates on long-term market securities have been relatively stable. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con­ ducive to abatement of inflationary pressures, a more sustainable rate of advance in economic activity, and progress toward equilib­ rium in the country’s balance of payments. To implement this policy, while taking account of international and domestic financial market developments, the Committee seeks to achieve bank reserve and money market conditions consistent with somewhat slower growth in monetary aggregates over the months immediately ahead than occurred on average in the past 6 months. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Mayo, Morris, and Sheehan. Votes against this action: None. Absent and not voting: Mr. Mitchell. Subsequent to the m eeting it appeared that in the M ay-June period the annual rate of growth in R PD ’s would be above 11 per cent and that growth in the monetary aggregates would exceed an acceptable range, even though m oney market conditions contin­ ued to tighten. On M ay 24, 1973, and again on June 8, a majority of the members concurred in a recom m endation by the Chairman that m oney market conditions should be permitted to tighten still further if necessary to lim it growth in R PD ’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions RESERVES OF MEMBER BANKS (ii) 3 per cent of its other time deposits up to $5 million, plus 5 per cent of such deposits in AM ENDM ENT TO REGULATION D excess of $5 million: Provided, however, That a member bank shall maintain a reserve balance Effective August 30, 1973, Regulation D is equal to 8 per cent of the amount by which the amended to read as set forth below: daily average amount of time deposits of the types hereinafter specified exceeds either the daily SECTION 204.5 RESERVE REQUIREMENTS average amount of such time deposits outstanding (a) Reserve percentages. Pursuant to the pro­ during the computation period ending May 16, visions of section 19 of the Federal Reserve Act 1973, or $10 million, whichever is greater, and and § 204.2(a) and subject to paragraph (c) of this such 8 per cent reserve percentage shall apply with section, the Board of Governors of the Federal respect to time deposits of the following types: Reserve System hereby prescribes the following (a) time deposits of $100,000 or more; and reserve balances that each member bank of the (b) time deposits represented by promissory Federal Reserve System is required to maintain notes, acknowledgments of advance, due bills, or on deposit with the Federal Reserve Bank of its similar obligations issued by a member bank’s district: affiliate, as provided in § 204.1(f); and (1) If not in a reserve city— (c) time deposits represented by bank accep­ tances, as provided in § 204.1(f); and * * * (ii) 3 per cent of its other time deposits up to INTEREST ON DEPOSITS $5 million, plus 5 per cent of such deposits in excess of $5 million: Provided, however, That a AM ENDM ENTS TO REGULATION Q member bank shall maintain a reserve balance equal to 8 per cent of the amount by which the Effective July 24, 1973, the first sentence of daily average amount of time deposits of the types Section 217.4(d) of the Board’s Regulation Q (12 hereinafter specified exceeds either the daily CFR Part 217) is amended by adding a new average amount of such time deposits outstanding footnote 6a at the end thereof to read as follows: during the computation period ending May 16, 6a. The provisions of this paragraph apply to 1973, or $10 million, whichever is greater, and all time deposit contracts entered into after July such 8 per cent reserve percentage shall apply with 5, 1973 and to all existing time deposit contracts respect to time deposits of the following types: that are extended or renewed (whether by auto­ (a) time deposits of $100,000 or more; and matic renewal or otherwise) after such date, and (b) time deposits represented by promissory to all time deposit contracts that are amended after notes, acknowledgments of advance, due bills, or such date so as to increase the rate of interest paid. similar obligations issued by a member bank’s All contracts not subject to the provisions of this affiliate, as provided in § 204.1(f); and paragraph shall be subject to the restrictions of (c) time deposits represented by bank accep­ § 217.4(d) in effect prior to July 5, 1973, which tances, as provided in § 204.1(f); permitted payment of a time deposit before matu­ and * * * rity only in an emergency where necessary to (2) If in a reserve city (except as to any bank prevent great hardship to the depositor, and which located in such a city that is permitted by the Board required the forfeiture of accrued and unpaid in­ of Governors of the Federal Reserve System, pur­ terest for a period of not less than 3 months on suant to § 204.2(a)(2), to maintain the reserves the amount withdrawn if an amount equal to the specified in subparagraph (1) of this paragraph)— amount withdrawn had been on deposit for 3 months or longer, and the forfeiture of all accrued Digitized for FRASER 581 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 FEDERAL RESERVE BULLETIN □ AUGUST 1973 and unpaid interest on the amount withdrawn if Board’s Regulation Q (12 CFR Part 217) is an amount equal to the amount withdrawn had amended to read as follows: been on deposit less than 3 months. Hi * * * SECTION 217.7—MAXIMUM RATES OF IN­ TEREST PAYABLE BY MEMBER BANKS ON SUPPLEM ENT TO REGULATION Q TIME AND SAVINGS DEPOSITS Effective July 16, 1973, Section 217.7 of Reg­ (a) Time deposits with no maximum rate of ulation Q is amended to read as follows: interest prescribed. (1) There is no maximum rate of interest pres­ SECTION 217.7—MAXIMUM RATES OF IN­ ently prescribed on any time deposit of $100,000 TEREST PAYABLE BY MEMBER BANKS ON or more. TIME AND SAVINGS DEPOSIT (2) There is no maximum rate of interest pres­ ently prescribed on any time deposit of $1,000 Pursuant to the provisions of section 19 of the or more (but less than $100,000) with a maturity Federal Reserve Act and § 217.3, the Board of of 4 years or more, so long as the total amount Governors of the Federal Reserve System hereby of such deposits does not exceed 5 per cent of prescribes the following maximum rates1 of inter­ the member bank’s total time and savings deposits est per annum payable by member banks of the that are subject to this section. With respect to Federal Reserve System on time and savings de­ any such deposit that is received during the period posits: when the outstanding amount of such deposits is (a) Time deposits with no maximum rate at or above the 5 per cent level, the member bank prescribed. There is no maximum rate of interest shall not pay interest on such deposit at a rate presently prescribed (1) on any time deposit of in excess of 6Vi per cent. $100,000 or more, or (2) on any time deposit of $1,000 or more with a maturity of 4 years or more. (b) Time deposits with maximum rates pre­ TRUTH IN LENDING scribed. Except as provided in paragraph (a), no member bank shall pay interest on any time deposit AM ENDM ENT TO REGULATION Z at a rate in excess of the applicable rate under the following schedule: Effective January 1, 1974, Section 226.8(b)(7) Maximum is amended to read as set forth below: Maturity per cent 30 days or more but less than 5 SECTION 226.8—CREDIT OTHER THAN 90 days OPEN END—SPECIFIC DISCLOSURES 90 days or more but less than 5y2 1 year 1 year or more but less than 6 (b) Disclosures in sale and non-sale credit. * * * 30 months (7) Identification of the method of computing 30 months or more 6Vi any unearned portion of the finance charge in the (c) Savings deposits. No member bank shall event of prepayment in full of an obligation which pay interest at a rate in excess of 5 per cent on includes precomputed finance charges and a state­ any savings deposit. ment of the amount or method of computation of any charge that may be deducted from the amount Effective July 26, 1973, section 217.7(a) of the of any rebate of such unearned finance charge that will be credited to an obligation or refunded to lrThe limitations on rates of interest payable by member the customer. If the credit contract does not pro­ banks of the Federal Reserve System on time and savings deposits, as prescribed herein, are not applicable to any deposit vide for any rebate of unearned finance charges which is payable only at an office of a member bank located upon prepayment in full, this fact shall be dis­ outside the States of the United States and the District of Columbia. closed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 583 BANK HOLDING COMPANY ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3(a)(3) OF by two much larger banks. Approval of the acqui­ BANK HOLDING COMPANY ACT sition would, therefore, increase competition by making Bank a stronger competitor. Applicant also ALABAMA BANCORPORATION, noted in its reply that even if the three Alabama BIRMINGHAM, ALABAMA applications commented on by Justice were ap­ proved by the Board, there would remain nu­ Order Approving Acquisition of Bank merous independent banks of sufficient size to Alabama Bancorporation, Birmingham, Ala­ form valuable components of additional State-wide bama, a bank holding company within the meaning holding companies. of the Bank Holding Company Act, has applied Bank is the third largest of nine banks located for the Board’s approval under § 3(a)(3) of the in the relevant banking market with about 12 per Act (12 U.S.C. 1842(a)(3)), to acquire all the cent of the deposits in the market.2 There is no voting shares (less directors’ qualifying shares) of substantial existing competition between any of the successor by merger to The Alabama National Applicant’s banking subsidiaries and Bank, pri­ Bank of Montgomery, Montgomery, Alabama marily due to the fact that the closest banking (“Bank”). The bank into which Bank is to be subsidiary to Bank is approximately 80 miles dis­ merged has no significance except as a means to tant. Furthermore, in view of the distances in­ facilitate the acquisition of Bank. Accordingly, the volved and Alabama’s restrictive branching laws, proposed acquisition of shares of the successor there is little probability of substantial future com­ organization is treated herein as the proposed ac­ petition developing between Applicant’s banking quisition of shares of Bank. subsidiaries and Bank. The largest bank in the Notice of the application, affording opportunity market (a subsidiary of the second largest holding to permit interested persons to submit comments company in Alabama) controls about 44 per cent and views has been given in accordance with § of market deposits and the second largest bank 3(b) of the Act. The time for filing comments and in the market controls about 24 per cent of market views has expired, and the Board has considered deposits. Applicant would not be obtaining a the application and all comments received in light dominant position in the market, and several inde­ of the factors set forth in § 3(c) of the Act (12 pendent banks remain available for acquisition by U.S.C. 1842(c)). other holding companies. Finally, Applicant’s ac­ Applicant controls five banks with total aggre­ quisition of Bank should enable the latter to com­ gate deposits of $972.6 million, representing 14.3 pete more vigorously with these two large banks per cent of total deposits of commercial banks in and could lead to the eventual deconcentration of Alabama and is the largest banking organization the market. in the State.1 Acquisition of Bank (deposits of Applicant has a nonbanking subsidiary, Engel $71.1 million) would not significantly increase the Mortgage Company (“Engel”), with an office in concentration of banking resources in Alabama. Montgomery, which competes to a limited degree The Department of Justice (“Justice”) submit­ with Bank in the origination of mortgage loans. ted comments concerning this application similar Engel primarily deals in mortgages on one-four to those it filed in the applications of First Alabama family residences; Bank makes but few loans in Bancshares, Inc., to acquire The City National this product line. Bank has a substantial volume Bank of Tuscaloosa and The Alabama Financial of construction loans; however, Engel makes few Group, Inc., to acquire First National Bank of loans of this type. Their combined share of the Anniston. It was the view of Justice that approval market for construction loans is negligible within of this application would contribute to a situation the appropriate regional or national market. Nei­ where only four State-wide banking organizations ther Engel nor Bank is active in the origination would exist in Alabama. of mortgages on income-producing property. Applicant noted in its reply to the comments Moreover, there are ten other mortgage companies of Justice that the bank to be acquired is a distant and three savings and loan associations plus the third in the relevant market which is dominated remaining commercial banks which comprise al- 1A11 banking data are as of December 31, 1972, and repre- 2The relevant banking market is approximated by the Montsent bank holding company formations and acquisitions ap- gomery Standard Statiscal Area (“SMSA”), which consists proved by the Board through May 31, 1973. of Elmore and Montgomery Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 FEDERAL RESERVE BULLETIN □ AUGUST 1973 ternative sources of mortgage credit. In the merged has no significance except as a means to Board’s view, consummation of this transaction facilitate the acquisition of the voting shares of would not have a substantially adverse effect on Bank. Accordingly, the proposed acquisition of competition in any relevant product line of mort­ shares of the successor organization is treated gage banking. Nor would it lead to a diminution herein as the proposed acquisition of the shares of State-wide competition in banking, for reasons of Bank. articulated in the Board’s Order of this date in­ Notice of the application, affording opportunity volving the application of First Alabama Banc­ for interested persons to submit comments and shares, Inc., to acquire The City National Bank views, has been given in accordance with § 3(b) of Tuscaloosa. Based on the facts of record, the of the Act. The time for filing comments and views Board concludes that competitive considerations has expired and the Board has considered the are consistent with approval of the application. application and all comments received in light of The financial condition, managerial resources the factors set forth in § 3(c) of the Act (12 U.S.C. and future prospects of Applicant, its subsidiary 1842(c)). banks and Bank are generally satisfactory and Applicant controls five banks, with aggregate consistent with approval of the acquisition. Factors deposits of approximately $635 million, repre­ relating to the convenience and needs of the com­ senting about 9V2 per cent of total deposits in munity to be served lend some weight for approval commercial banks in Alabama and is the second of the application since Applicant will be able to largest banking organization in Alabama. Acqui­ provide international banking services in the sition of Bank (deposits of about $68 million) Montgomery SMS A, a service which is not pres­ would not increase significantly the concentration ently offered there. It is the Board’s judgment that of banking resources in the State.1 consummation of the proposed transaction would The Department of Justice (“Justice”) com­ be in the public interest and that the application mented upon this application, as well as pending should be approved. applications by two other bank holding companies On the basis of the record, the application is to acquire banks in Alabama.2 Briefly, Justice is approved for the reasons summarized above. The concerned that four large State-wide banking or­ transaction shall not be consummated (a) before ganizations control over 40 per cent of deposits the thirtieth calendar day following the effective in commercial banks in the State of Alabama, that date of this Order or (b) later than three months such organizations are the most likely potential after the effective date of this Order, unless such entrants into local markets throughout the State, period is extended for good cause by the Board and that, if these three acquisitions are approved, or by the Federal Reserve Bank of Atlanta pursuant there would be only a dozen banks remaining in to delegated authority. Alabama of a size large enough ($30 million By order of the Board of Governors, effective according to Justice) to serve as the nucleus of July 19, 1973. an additional State-wide organization. Further, Justice asserts that such a limited State-wide Voting for this action: Chairman Burns and Governors banking structure could produce a situation Mitchell, Daane, Sheehan, Bucher, and Holland. Voting against this action: Governor Brimmer. whereby only a few organizations confront each other in local markets throughout Alabama, (Signed) Chester B. Feldberg, thereby leading to a tendency on the part of such [seal] Secretary of the Board. organizations to develop parallel practices in such markets to the advantage of the companies in­ FIRST ALABAMA BANCSHARES, INC., volved but not necessarily for the public good. BIRMINGHAM, ALABAMA In its response to Justice’s comments, Applicant Order Approving Acquisition of Bank asserts, among other things, that Alabama needs larger banking structures in order to provide ade­ First Alabama Bancshares, Inc., Birmingham, quate services to large businesses in the State and Alabama, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 3(a)(3) JA11 banking data are as of December 31, 1972, unless of the Act (12 U.S.C. 1842 (a)(3)), to acquire otherwise noted, and include formations and acquisitions ap­ the successor by merger to The City National Bank proved by the Board through May 31, 1973. 2Alabama Bancorporation to acquire The Alabama National of Tuscaloosa, Tuscaloosa, Alabama (“Bank”). Bank of Montgomery and The Alabama Financial Group, Inc., The new national bank into which Bank is to be to acquire First National Bank of Anniston. 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LAW DEPARTMENT 585 to compete with much larger out-of-State organi­ of only the present four State-wide banking orga­ zations which seek business in Alabama. Appli­ nizations in Alabama is so anticompetitive as to cant further states that Justice has ignored the require denial of all bank acquisitions by those public benefits that would be provided the Tusca­ organizations. The fear expressed by Justice that loosa area by consummation of the proposal parallel policies will develop in various local mar­ herein. kets throughout the State on the basis of the four Bank is the second largest of three banks located large organizations facing one another is based on in the relevant market and controls about 39 per speculation. There is no evidence in the record cent of deposits there.3 There is no substantial that any such policies have developed or will existing competition between any of Applicant’s develop. Alabama is a State with low per capita banking subsidiaries and Bank. Applicant’s sub­ income. The Board believes the development of sidiary closest to Bank is approximately 45 miles larger banking organizations would be beneficial distant. Nor is there a reasonable probability of for the State since they would be able to provide substantial future competition developing between better service for existing businesses within the any of Applicant’s banking subsidiaries and Bank, State and perhaps attract substantial new business. particularly in view of the distances between Ap­ Approval of this application will enable Applicant plicant’s subsidiary banks and Bank and Ala­ to bring its expertise and greater service capability bama’s branching laws which preclude Applicant’s to an Alabama location with good growth pros­ subsidiaries from branching into Tuscaloosa and pects and thereby make that location attractive for Bank from branching into the markets of Appli­ the large customers and industries which Alabama cant’s subsidiaries. Although the Tuscaloosa mar­ is seeking to attract. On the basis of the facts of ket appears attractive for de novo entry, Applicant record, the Board concludes that competitive con­ has indicated it would not enter by this means and, siderations are consistent with approval of the in the Board’s opinion, market conditions are not application. such as to warrant precluding Applicant’s repre­ The financial condition, managerial resources, sentation in this market through the acquisition of and future prospects of Applicant, its subsidiary an existing bank. Other holding companies remain banks and Bank are regarded as satisfactory. Ap­ as potential entrants in to the market through de plicant proposes to increase Bank’s capital and this novo means, and Applicant would not obtain a aspect lends some support for approval of the dominant position in the market through acquisi­ acquisition. Moreover, Applicant would be in a tion of Bank. The largest bank in the market has position to provide Bank with a source of man­ almost $20 million more in deposits than Bank agement personnel, which is particularly important and appears to be a viable, strong competitor and due to the fact that two senior officials of Bank is likely to remain so even if Applicant acquires have recently left the Bank. Factors related to the Bank. Moreover, the smallest bank in the market convenience and needs of the community to be has shown a good growth rate since its establish­ served are consistent with approval and may lend ment in 1968 and there is no indication that it some weight for approval, since Bank, after affil­ would not be able to compete in those areas iation with Applicant, would be in a better position suitable to its size. The Board concludes that to serve the larger businesses that have recently approval of the acquisition would not have sub­ located in the Tuscaloosa area. It is the Board’s stantial adverse effects on future competition in judgment that consummation of the proposed the Tuscaloosa market. transaction would be in the public interest and that Moreover, the Board believes that the acquisi­ the application should be approved. tion of Bank by Applicant will not necessarily On the basis of the record, the application is increase the rigidity of the Alabama banking approved for the reasons summarized above. The structure. The Board recently has approved the transaction shall not be consummated (a) before formation in Alabama of a fifth multibank holding the thirtieth calendar day following the effective company which has over $300 million in deposits.4 date of this Order, or (b) later than three months However, apart from the prospect of holding after the effective date of this Order, unless such companies in the process of being formed in Ala­ period is extended for good cause by the Board bama, the Board is not persuaded that the existence or by the Federal Reserve Bank of Atlanta, pursu­ ant to delegated authority. 3The relevant banking market is approximated by Tuscaloosa By order of the Board of Governors, effective County. 4See Board Order of June 15, 1973. July 19, 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Voting for this action: Chairman Burns and Governors Tuscaloosa market is one of the most attractive Mitchell, Daane, Sheehan, and Holland. Voting against this markets—if not the most attractive market—in action: Governors Brimmer and Bucher. Alabama. Surely the second largest banking orga­ (Signed) Chester B. Feldberg, nization in the State should enter such a promising [seal] Secretary of the Board. area through de novo means instead of acquiring a bank having almost 40 per cent of the market. Dissenting Statement of Similarly, I believe that the local market situation Governor Brimmer in Montgomery is such that the largest bank hold­ ing company in Alabama should enter such market I dissent from the Board’s approval of the ac­ through de novo means or through the acquisition quisition by First Alabama Bancshares, Inc., of of a bank in the market smaller than the third The City National Bank of Tuscaloosa, and from largest organization. The Montgomery market is the Board’s approval of the acquisition by Ala­ an attractive one for de novo entry, and Applicant bama Bancorporation of The Alabama National (absent the Board’s approval in this case) would Bank of Montgomery. I disapprove of the fifth probably follow that route. and sixth largest independent banks in Alabama On the basis of my concern and fears regarding being absorbed by the first and second largest bank the evolving State-wide structure in Alabama— holding companies in Alabama, respectively. and also on the basis of my analysis of the local I have previously noted my concern with the market situations involved—I dissent from the banking structure in Alabama. (See, for example, Board’s approval of the acquisition of The Ala­ my dissents in the applications of Central and State bama National Bank of Montgomery by Alabama National Corporation of Alabama to form a bank Bancorporation and the acquisition of The City holding company, 1971 Federal Reserve Bulle­ National Bank of Tuscaloosa by First Alabama tin 860, and The Alabama Financial Group to Bancshares, Inc. acquire The First National Bank of Dothan, 1972 Federal Reserve Bulletin 822.) Dissenting Statement of Banking developments in Alabama since the Governor Bucher time of my two previous dissents have not lessened my concern. On the contrary, it becomes clearer I dissent from the approval by the Board of the than ever to me that Alabama is well on its way acquisition of the sixth largest independent bank to becoming a State where four State-wide organi­ in Alabama by the second largest holding company zations will dominate the banking scene. The in the State. majority refers to a recent approval of the forma­ Economic trends and conditions suggest that the tion of a fifth bank holding company. However, Tuscaloosa market is one of the few markets in I am not so optimistic as the majority apparently Alabama attractive for de novo entry. Some of is concerning the future development of such these factors are: the population per banking office holding company, or any others that might be and deposits per bank ratios are higher than the formed, if we continue to permit the big four to State average, the continued growth of the Uni­ acquire the large independent banks in the State. versity of Alabama is projected, and new busi­ Such acquisitions as those approved here will nesses are locating in this already diversified mar­ hinder other bank holding companies in their ef­ ket. Moreover, the Tuscaloosa market has only forts to compete with the big four. Moreover, the three banks. Bank, together with the largest bank, approvals granted today are also likely to lead to controls over 90 per cent of the deposits. The the situation, noted by the Department of Justice, existence of this localized market power should in which four sizable organizations confront each provide another possible incentive for outside other in the large local markets within Alabama banking organizations to enter. Given these fac­ and adopt similar policies or practices. One need tors, Tuscaloosa appears to be a desirable location not be a cynic to believe that such a structural for an aggressive and innovative de novo bank. situation is likely to assure that any benefits pro­ Applicant is clearly one of the most likely duced will accrue to private parties rather than to entrants. One of Applicant’s largest banks is lo­ the public generally. cated to the east in the adjacent Birmingham I concur in Governor Bucher’s Statement that market. Consummation of the proposal will not denial should be voted with regard to the acquisi­ only reinforce the concentration in Tuscaloosa by tion of The City National Bank of Tuscaloosa on making it more difficult for other organizations to the basis of an analysis of the local market. The compete with the two largest, but also will con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 587 tribute to the concentration of banking resources resources, to some extent, would enable those within this region of the State. First Alabama large institutions to enter the national market for Bancshares has the resources available to support the financing of large corporate enterprises, al­ a de novo entry while it establishes market share. though presently there is no evidence to support Surely the community, particularly locally limited this view. However, the Board must also focus customers, would be benefited by additional bank­ on other public benefits. An optimally competitive ing alternatives and the pursuit of market share structure ought to insure an adequate flow of funds by aggressive de novo entrants. I believe a high to consumers and small business at reasonable level of competition ultimately assures an optimum rates. Thus, the Board should be conscious of the flow of public benefits. possibility of increased stagnation that may be I am additionally concerned with the continuing brought about by excessive concentration in an trend in Alabama whereby four large holding already depressed State. I feel that the formation companies seem likely to dominate State banking. and development of additional bank holding com­ Bank is one of the few large remaining inde­ panies is likely to provide greater competitive pendent banks in Alabama that would be attractive vigor in Alabama and this would be beneficial. for acquisition by a holding company other than For these reasons I respectfully dissent from ap­ the big four. I feel that it should remain available proval of the application. for such acquisition. The majority points out that FIRST & MERCHANTS CORPORATION, the Board has recently approved a fifth holding RICHMOND, VIRGINIA company in Alabama and there is some indication that others are in the process of being formed. Order Approving Acquisition of Bank However, if we continue to approve acquisitions First & Merchants Corporation, Richmond, by the big four of banks of the size and market Virginia, a bank holding company within the share of Bank, the opportunity will be impaired meaning of the Bank Holding Company Act, has for such new holding companies to grow and to applied for the Board’s approval under § 3(a)(3) approach the big four in size and therefore in of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 competitive vigor. per cent of the voting shares of the successor by In one of the earliest Alabama cases, the Board merger to Mountain Trust Bank, Roanoke, Vir­ recognized the desirability of permitting the for­ ginia (“Bank”). The bank into which Bank is to mation of additional holding companies. The be merged has no significance except as a means Board said, in the application of Central State to facilitate the acquisition of the voting shares National Corporation: “The Board believes it to of Bank. Accordingly, the proposed acquisition of be in the economic interest of the State of Alabama the shares of the successor organization is treated to permit a combination of the resource potential herein as the proposed acquisition of the shares of State National with the aggressive innovative of Bank. character of Central for the purpose of improving Notice of the application, affording opportunity the competitive environment of one of the State’s for interested persons to submit comments and largest banking organizations. At the same time, views, has been given in accordance with § 3(b) the opportunity for moderate and smaller size of the Act. The time for filing comments and views banking institutions in the State to form regional has expired. The Board has considered the appli­ affiliations which would encourage further decon­ cation and all comments received in light of the centration at other levels of commercial bank factors set forth in § 3(c) of the Act (12 U.S.C. competition will be p re serv ed (Emphasis 1842(c)), and finds that: added.) (57 Federal Reserve Bulletin 860, 863 Applicant controls three subsidiary banks with (1971)) In my judgment, the Board in this case aggregate deposits of $1.0 billion, is the third is considering only the philosophy espoused in the largest banking organization in Virginia, and holds first quoted sentence and giving no heed to that 9.4 per cent of all commercial bank deposits in of the second quoted sentence. the State. (All banking data are as of December I am in sympathy with the majority view that 31, 1972.) Bank is the third largest of seven banks Alabama is a relatively depressed area economi­ operating in the Roanoke market, operates nine cally. However, I am not persuaded that the con­ offices, and holds deposits of approximately $80 centration of the banking resources of Alabama million, or approximately 14 per cent of the com­ among four large organizations will alleviate this mercial bank deposits in the Roanoke SMS A, the situation. Perhaps, the aggregation of financial relevant market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 FEDERAL RESERVE BULLETIN □ AUGUST 1973 The Roanoke SMSA is expanding and is ex­ the first mortgage market through Applicant’s sub­ pected to show favorable growth even though the sidiary, First Mortgage Corporation, Richmond, population of the city proper has been declining Virginia (“FMC”), which has a branch in Roan­ in recent years. Bank is headquartered in the oke. However, the combined market share of first downtown area. The banking alternatives in the mortgage loans for FMC and Bank in the Roanoke SMSA now include banking offices of five of market is believed to be approximately 5 per cent. Virginia’s top twelve banking organizations. Do­ The Board does not regard as significant possible minion Bankshares’ lead bank, First National Ex­ elimination of competition between FMC and change Bank, controls nearly 47 per cent of the Bank in this product line. market, up from about 43 per cent a year ago. It is possible that Applicant might enter the Colonial American Bank is the second largest bank Roanoke market through the formation of a new and controls nearly 20 per cent of market deposits. bank, if the application were not approved. Nev­ ertheless, the Board is inclined to discount the Applicant has no banking offices in the Roanoke significance of any possible adverse effect on po­ market. The nearest office of any banking subsid­ tential competition in any relevant area for the iary of Applicant to Bank is in the city of Bedford, reasons hereinafter stated. First, the complexion approximately 28 miles east of Bank. There is no of banking competition in the Roanoke market has present competition between any of Applicant’s been affected by recent developments. Two bank banking subsidiaries and Bank and little likelihood holding companies have received permission to that future competition would develop in view of enter that market de novo, potentially increasing the fact that the Bedford market is effectively the number of bank competitors to eight. The new separated from the Roanoke market by the Blue subsidiary bank of one of these holding compa­ Ridge Mountains, and Applicant’s banking sub­ nies, First Virginia Bankshares Corp., has already sidiaries are precluded from branching into the commenced operations. As a result both of new Roanoke market by Virginia’s restrictive branch­ entry and additional branching by existing banks ing laws. in the market, the population per banking office The United States Department of Justice has in the Roanoke market is now below the Statewide commented that, in its opinion, the proposed ac­ average. quisition would have significantly adverse com­ Second, Bank does not have the potential, in petitive effects. In the Department’s view, this the Board’s judgment, to be the lead bank in acquisition would eliminate existing competition developing a new regional bank holding company. between Applicant’s mortgage company subsidi­ Its management depth appears to be too thin for aries and Bank in mortgage lending and mortgage such an undertaking, and its financial resources banking, remove potential competition of Appli­ are already strained to capacity. For example, cant as a likely de novo entrant into the Roanoke Bank’s loan-to-deposit ratio, at approximately 80 banking market, further entrench the existing con­ per cent, is well above average, and its loan centrated market structure in Roanoke, and adver­ portfolio is aggressively committed in the area of sely affect the development of a more competitive construction lending. Moreover, Bank has vir­ banking structure in Virginia by removing one of tually no correspondent business and is therefore the few remaining large independent banks capable an unlikely organizer of a new holding company. of anchoring the formation of an additional bank The Board finds it difficult to conclude that con­ holding company either as a lead bank or as a tinuation of Bank as an independent bank would significant member thereof. significantly improve the chances for formation of For the reasons hereinafter stated, the Board a new bank holding company within the near does not believe that consummation of the pro­ future, and believes that there is not adequate posal would have significant adverse effects on probability of such a development to justify denial competition. To the contrary, the Board believes of Bank’s opportunity to affiliate with an existing that the proposed acquisition may possibly have holding company. salutary effects on competition in the Roanoke Furthermore, in view of the significant increase market by strengthening Bank’s managerial and in the market share of the largest bank in the financial resources enabling it to compete more market during the past year, the Board believes effectively with the dominant bank in the market that the immediate entry of a strong competitor which has recently made significant gains in mar­ such as Applicant may possibly assist, rather than ket share. hinder, the deconcentration of banking resources Applicant does compete directly with Bank in in the market at this time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 589 Consummation of the proposed acquisition Concurring Statement of should therefore have no significant adverse effects Governor Daane on existing or potential competition in any relevant I concur in the Board’s action approving the area, and competitive factors are viewed by the application of First & Merchants Corporation to Board as being consistent with approval of the acquire the successor by merger to the Mountain application.1 Trust Bank. I do not join, however, in the remarks The financial and managerial resources and fu­ of the majority opinion seeking to distinguish the ture prospects of Bank and of Applicant and its controlling factors in this application from those present subsidiary banks are regarded as satis­ factors governing an earlier similar application factory. An improvement in Bank’s capital posi­ relating to the Roanoke market, which the Board tion might be desirable in view of its aggressive denied. I am speaking of the 3(a)(1) application posture as a lender, and the Board views favorably of Virginia National Bankshares to become a bank the undertaking of Applicant to invest additional holding company through the acquisition of Vir­ capital in Bank upon its acquisition by Applicant. ginia National Bank, Norfolk, and the Colonial- Considerations relating to managerial and financial America National Bank of Roanoke (1972 Federal resources lend some weight in favor of approval of the application. There is no evidence that the Reserve Bulletin 494), cited by the majority. I dissented from the majority in that case be­ major banking needs of the Roanoke SMSA are cause I found no evidence that more than minimal not being adequately served at present. Consid­ existing competition would have been foreclosed erations relating to the convenience and needs of by allowing the transaction and because I found the community to be served are viewed as being de novo entry unlikely and because I believed that consistent with approval. deconcentration would be assisted by an immedi­ On the basis of the record, the application is ate, more effective competitor. I reaffirm those approved for the reasons summarized above. The beliefs today. In my opinion, the Roanoke public transaction shall not be consummated (a) before was denied the benefits of a more effective com­ the thirtieth calendar day following the effective petitor, namely Virginia National Bankshares, in date of this Order, or (b) later than three months the intervening year. after the effective date of this Order, unless such It may be noted that the largest bank in the period is extended for good cause by the Board market, First National Exchange Bank, has in the or by the Federal Reserve Bank of Richmond last year increased from 43 to 47 the percentage pursuant to delegated authority. of commercial bank deposits it controls in the By order of the Board of Governors, effective Roanoke market. I feel now, as I did over a year July 26, 1973. ago, that the best way to reduce the concentration Voting for this action: Vice Chairman Mitchell and Gover­ in the Roanoke area is to bring in strong, compet­ nors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent itive minded organizations. This procompetitive and not voting: Chairman Burns. aspect, now recognized by the Board, was at least (Signed) Chester B. Feldberg, equally applicable in the earlier Virginia National [seal] Secretary of the Board. Bank case. FIRST NEW MEXICO BANKSHARE CORPORATION, *In the Board’s judgment, this application presents a dif­ ALBUQUERQUE, NEW MEXICO ferent set of factors, as discussed in the text, than those that led the Board to deny the application of Virginia National Bankshares, Inc., Norfolk, Virginia, for approval to become Order Approving Acquisition of Bank a bank holding company through the acquisition of the Colo- First New Mexico Bankshare Corporation, Al­ nial-American National Bank of Roanoke. (1972 Federal Re­ serve Bulletin 494.) The attractiveness of Roanoke to de buquerque, New Mexico, a bank holding company novo entry was relatively greater at the time of that application within the meaning of the Bank Holding Company than at present, and Colonial-American had prime capability of being the lead bank in its own bank holding company Act, has applied for the Board’s approval under system, should it choose to form one, from the standpoint of section 3(a)(3) of the Act (12 U.S.C. 1842(a)(3)) its managerial and financial resources and significant corre­ to acquire 80 per cent or more of the voting shares spondent business. Furthermore, the combined market share of first mortgage loans for Virginia National Bank’s mortgage of the Clovis National Bank, Clovis, New Mexico banking subsidiary, Mortgage Investment Corporation, and (“Bank”). Colonial-American in the Roanoke market appeared to be Notice of the application, affording opportunity considerably larger, at approximately 10 per cent, than that of FMC and Bank. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 FEDERAL RESERVE BULLETIN □ AUGUST 1973 views has been given in accordance with § 3(b) any such comparison. Finally, Applicant stated of the Act. The time for filing comments and views that approval of this application would not fore­ has expired, and the Board has considered the close the formation of future regional or Statewide application and all comments received in light of bank holding companies, as the second largest the factors set forth in § 3(c) of the Act (12 U.S.C. Clovis bank remains available for such a holding 1842(c)). company as do a substantial number of New Mex­ Applicant is the largest banking organization in ico banks of similar size. New Mexico with aggregate deposits of $501.7 The Curry County banking market is the smal­ million, representing 22.8 per cent of the total lest of seven major markets in New Mexico based commercial bank deposits in the State, (all banking on total commercial bank deposits of $73.4 mil­ data are as of December 31, 1972.) It presently lion.1 Clovis (population of 28,000) is the County controls six banks, including Albuquerque Na­ seat of Curry County. The economy of the area tional Bank (deposits $398.9 million), its lead is dependent on three primary employers—Cannon bank and the largest bank in the State. The acqui­ Air Force Base, the Atchison, Topeka, and Santa sition of Bank (deposits of $40.1 million) would Fe Railroad, and diverse agricultural employment. increase Applicant’s control over commercial bank The Curry County market appears to be repre­ deposits in New Mexico to 24.6 per cent. sentative of other markets in New Mexico as it Bank is the largest of three banks in Curry is dependent on relatively few industries or serv­ County (the relevant banking market) and controls ices and supported by a low population base. 43.4 per cent of total market deposits therein. Given the population density in New Mexico Bank is only slightly larger than the second rank­ of 8.4 inhabitants per square mile (with Albuquer­ ing bank, Citizens Bank of Clovis (deposits of que being the only metropolitan area in the State $39.8 million). The smallest bank in the market, having a population of 50,000 or more), the Board The First National Bank of Clovis, is under pur­ views each of the major banking markets in the chase contract to be an affiliate of another bank State as isolated local banking markets. Due to holding company. Applicant is not presently re­ their wide separation, these markets are not sus­ presented in this banking market, and its closest ceptible to a more detailed analysis in the form subsidiary to Bank is 110 miles distant. of a single Statewide market. Indeed, the distances separating these markets have created a tendency In its consideration of this matter, the Board for the people and banks in those markets to look has taken into account the comments of the United toward the large banking structures in Arizona, States Department of Justice, which concluded that Colorado and Texas for financial assistance, rather the proposal would have a significantly adverse than to Albuquerque. effect on competition in Clovis and in New Mexico It is against this background that the Board must as a whole. This recommendation was due to the juxtapose the four multi-bank holding companies Department’s view that Applicant, as one of three now operating in New Mexico. The second largest significant potential entrants into Clovis, should bank holding company in the State, Western Ban­ be required to enter this market de novo or through corporation, has five subsidiary banks, with total a less anticompetitive foothold acquisition. The deposits of $278.2 million. Although large, West­ Department was also of the view that the proposed ern Bancorporation is not a dominant force in New transaction would adversely affect the future de­ Mexico. Its five subsidiaries tend to operate inde­ velopment of a more competitive banking structure pendently of one another, and the holding com­ in New Mexico. pany itself is prevented from further acquisitions In answer to the Department’s contention, Ap­ in New Mexico due to being headquartered in Los plicant stated that it was unable to form a new Angeles, California. The third largest bank hold­ bank in Clovis due to the economic problems ing company, Bank Securities, Inc., has eight facing this community, and that the smallest bank subsidiary banks with combined total deposits of in Clovis was not available to Applicant as a $189.4 million. Its lead bank, American Bank of possible foothold acquisition. Applicant further stated that it was not possible to make a valid comparison between New Mexico banking struc­ *A major market is defined in this case as one with over ture and that in Florida, New York, Alabama or $70 million in deposits. The other major markets include Texas, since such pertinent factors as New Mex­ Albuquerque, Santa Fe-Espanola, Hobbs-Lovington, Las Cruces, Roswell, and Artesia-Carlsbad. In addition to the ico’s low per capita income, lack of an industrial Albuquerque market, Applicant is at present represented in two base, and its population density figures preclude of the other major markets (Santa Fe-Espanola and Roswell). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 591 Commerce (deposits of $63.0 million) is located mands exceeding available funds.2 In an attempt in Albuquerque and is the fifth largest bank in the to satisfy the large demand for agricultural loans, State. Bank Securities, Inc., has lately undergone Bank has neglected both real estate mortgage rapid expansion and has acquired no additional lending and consumer financing. Applicant banks in recent months. The fourth and smallest proposes to establish a real estate loan department of the bank holding companies in the State is New and a consumer loan department in Bank, and has Mexico Bancorporation, Inc., with only two banks committed itself to make available $2 million for and $81.6 million in deposits. It has announced each department. In addition, Applicant would no plans to expand in the near future. Thus, for augment Bank’s inadequate capital position by some time, First New Mexico Bankshare Cor­ injecting $400,000 of additional equity capital. poration is likely to be the only banking organi­ Finally, Applicant proposes to introduce new data zation in the State with the capability of expansion processing services, financial counseling, and through a Statewide acquisition program. modern auditing procedures, and develop Bank’s In a State such as New Mexico, the Board is trust business. The greater availability of lendable cognizant of the possibility that a holding company funds and the proposed bank services lend weight may be seeking to strengthen its position at the for approval of the application. In addition, the expense of a competitor, or unduly raise the bar­ financial and managerial resources of Applicant, riers to entry into significant banking markets its subsidiaries, and Bank appear generally satis­ within the State. In the Board’s view, these unde­ factory and the future prospects of all appear sirable effects are not likely to occur in this matter. favorable. It is the Board’s judgment that the Although banking concentration would be in­ proposed transaction would be in the public inter­ creased somewhat for the State as a whole, the est and that the application should be approved. proposed acquisition will enhance a New Mexico On the basis of all relevant facts contained in bank holding company’s ability to compete with the record and in light of the factors set forth in other banks in the Southwest region and further § 3(c) of the Act, the application is approved for its ability to better serve the financial requirements the reasons summarized above. The transaction of New Mexico’s residents. If Statewide concen­ shall not be consummated (a) before the thirtieth tration levels of banking resources in New Mexico calendar day following the effective date of this were the sole criteria upon which the Board were Order or (b) later than three months after the to base its determination herein, it might conceiv­ effective date of this Order unless such period is ably be necessary to maintain the status quo of extended for good cause by the Board or by the the present banking structure in the State. How­ Federal Reserve Bank of Kansas City pursuant to ever, concentration of banking resources is only delegated authority. a proxy for the Board’s use in determining the By order of the Board of Governors, effective competitive factors in an application. In this case, July 20, 1973. the Board doubts that it is in the best interests Voting for this action: Chairman Burns and Governors of New Mexico residents to apply a rigid standard Mitchell, Daane, Sheehan, and Bucher. Voting against this of a predetermined concentration ratio. A similar action: Governors Brimmer and Holland. view was expressed previously, when the Board (Signed) C hester B. Feldberg, stated: [seal] Secretary of the Board. Similar changes in banking structure are taking place in the New England States, New Jersey, New York, Virginia, Florida, Missouri and elsewhere. But there is no presumption Dissenting Statement of that the status quo in any State represents a competitive ideal; Governors Brimmer and Holland in each case, the Board must base its determination on the effect of the particular proposal before it. Congress has not yet given the Board authority to shape the banking structure We would not approve this application. In our of any State or area by initiating changes or by committing view, the anticompetitive effects that stem from itself to a course of action with respect to applications which satisfy some predetermined guidelines or some level of con­ the proposal are not outweighed by the conven­ centration ratios. (56 Federal Reserve Bulletin 539, 541. ience and needs of the community. Emphasis in original.) Insofar as the local market is concerned, there 2The loan-to-deposit ratios of the first, second, and third is a heavy loan demand in the Clovis area, and largest Clovis banks are 65, 70, and 84 per cent, respectively, Bank has had a continuing problem of loan de­ versus 62 per cent for all banks in the State. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 FEDERAL RESERVE BULLETIN □ AUGUST 1973 The adverse effects on future competition are We further find that considerations of conven­ pronounced in Clovis. Bank enjoyed an average ience and needs of the community lend insufficient asset growth of 16 per cent over the past four weight for approval. The new capital to be added years. Clovis has had an expanding population for to Bank could just as easily have been used to over 20 years. There is evidence of heavy loan form a de novo bank. Moreover, there does not demand. Thus, the area is an attractive one for appear to be sufficient evidence in the record to de novo entry. Applicant is not only one of the justify a finding that the services which Applicant most likely entrants into this market but has the proposes to offer are, in fact, needed. Finally, we present capability to enter on a de novo basis. The do not share the majority’s opinion that the trans­ net result of the transaction is that the largest action is justified because “the proposed acquisi­ holding company in New Mexico will enter a tion will enhance a New Mexico bank holding major new market by acquiring the largest bank company’s ability to compete with other banks in in the market, and the third largest independent the Southwest region and further its ability to bank in the State. We are of the opinion that the better serve the financial requirements of New net result is anticompetitive. Mexico’s residents”. We believe that in this case There are only three banks represented in Clovis the inherent anticompetitive effects resulting from at the present time. Bank controls 43 per cent of the combination of the State’s largest holding the commercial bank deposits in Clovis. It now company and the third largest independent bank seems less likely that smaller holding companies in the State outweigh such considerations. will enter Clovis and compete against the largest On all the facts of record, we believe that the holding company. If this transaction were not application should be denied. consummated, Bank would still be a candidate for membership in a new, less dominant holding ORDERS UNDER SECTION 4(c)(8) OF company system that could compete with Appli­ BANK HOLDING COMPANY ACT cant in the future. The majority’s action seemingly BANK AMERICA CORPORATION, locks Clovis into a rigid, anticompetitive banking SAN FRANCISCO, CALIFORNIA structure. Looking past Clovis to the competitive effect O rder Denying Acquisition of GAC on the entire State, we find that the four largest Finance, Inc. holding company organizations in New Mexico BankAmerica Corporation, San Francisco, Cal­ control 60.9 per cent of the commercial bank ifornia, a bank holding company within the mean­ deposits. Applicant is substantially larger than the ing of the Bank Holding Company Act, has ap­ second banking organization and is considerably plied for the Board’s approval, under §§ 4(c)(8) strengthened by acquiring the State’s third largest and (13) of the Act and § 225.4(b)(2) of the independent bank. When we juxtapose the inabil­ Board’s Regulation Y, to acquire voting shares of ity of the State’s other banking organizations to GAC Finance, Inc., Allentown, Pennsylvania. expand on a Statewide basis1 and the lack of GAC Finance, Inc. through its subsidiaries en­ vehicles for expansion,2 it becomes apparent that gages in the activities of making direct loans to Applicant is now solidly entrenched as the domi­ consumers; purchasing sales finance paper; fi­ nant organization in the State. We are of the nancing inventory of distributors of and dealers opinion that the transaction prevents the possibility in various consumer durable goods through agree­ of eventual deconcentration and apparently vio­ ments with manufacturers in the case of distrib­ lates the mandate of the Supreme Court of the utors and with distributors in the case of dealers; United States as laid down in U.S. v. Philadelphia servicing manufacturer-funded receivables arising National Bank, 374 U.S. 321, 365, fn. 42 (1963). from inventory financing by certain manufacturers As has been many times quoted, that statement of consumer durable goods; rediscount financing of the Supreme Court was “if concentration is for non-affiliated consumer sales finance compa­ already great, the importance of preserving the nies; and sale to its direct consumer borrowers of possibility of deconcentration is correspondingly credit life and credit health and accident insurance great.” and of insurance coverage against damage to per­ *See the majority Statement. sonal property securing extensions of credit made 2 There are only five independent banks in the State with by the subsidiary to its direct consumer borrowers. deposits of over $25 million and Applicant is not presently Such activities have been specified by the Board represented in any of the three markets containing the five banks. in § 225.4(a) of Regulation Y as permissible for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 593 bank holding companies, subject to Board ap­ posits and is the largest commercial bank in the proval of individual proposals in accordance with State.1 the procedures of § 225.4(b). With 27 offices, Bank holds close to 14 per cent Notice of the application, affording opportunity of total deposits in commercial banks in the State. for interested persons to submit comments and Bank operates in each of eight communities in views on the public interest factors, has been duly Mississippi. During 1972 Applicant attempted to published (38 Federal Register 6103). The time establish a subsidiary de novo to engage in mort­ for filing comments and views has expired, and gage banking in the Jackson area, but those efforts the Board has considered all comments received, failed, and that subsidiary remains inactive. Bank including those of the Department of Justice, in does, however, engage in mortgage lending for the light of the public interest factors set forth in its own account at all of its offices; its principal § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). real estate lending activities are conducted in the On the basis of the record, the application is Jackson area. '* denied for the reasons set forth in the Board’s Bridges Loan & Investment Company Statement, which will be released at a later date. (“Bridges”) operates offices in New Orleans, By order of the Board of Governors, effective Shreveport, and Lafayette, Louisiana, and in July 27, 1973. Gulfport and Jackson in Mississippi. Although Bridges is headquartered in Jackson, it appears that Voting for this action: Chairman Burns and Governors its major activity is conducted outside the Jackson Brimmer, Bucher, and Holland. Voting against this action: Governors Mitchell, Daane, and Sheehan. area and that the company’s share of activity in the Jackson area has been declining in recent (Signed) C hester B. Feldberg, years. On the basis of mortgages serviced, Bridges [seal] Secretary of the Board. ranks (as of June 30, 1971) as the 117th largest DEPOSIT GUARANTY CORP., mortgage company in the United States and the JACKSON, MISSISSIPPI second largest mortgage company headquartered in Mississippi. For its fiscal year ending May 31, Order Approving Acquisition of Bridges 1972, Bridges shows a servicing volume of $210 Loan & Investment Company, Inc. million, and mortgage originations during that year Deposit Guaranty Corp., Jackson, Mississippi, of $53 million. a bank holding company within the meaning of Although Applicant’s subsidiary bank engages the Bank Holding Company Act, has applied for to some extent in the same line of activity as the Board’s approval, under § 4(c)(8) of the Act Bridges, the record indicates that there is no sig­ and § 225.4(b)(2) of the Board’s Regulation Y, nificant competition between the two institutions. to acquire all the voting shares of Bridges Loan Of the four areas in Mississippi where Bank has & Investment Company, Inc., Jackson, Missis­ offices and Bridges offers its services, namely, the sippi, a company engaged in the activities of Jackson area (Hinds, Rankin, and Madison Coun­ making or acquiring, for its own account or for ties), the Greenville area (Washington County), the account of others, loans and other extensions the Natchez area (Adams County), and the Mcof credit such as would be made by a mortgage Comb area (Pike County), it appears that, only company, and of servicing loans and other exten­ in the Jackson area, do Bank and Bridges engage sions of credit for any person. Such activities have in real estate lending to a meaningful extent. been determined by the Board to be closely related In the Jackson market, in the category of 1-4 to banking (12 CFR 225.4(a)(1) and (3)). family mortgage loans, Bank originated (during Notice of the application, affording opportunity 1971) 65 loans with a value of $1.9 million, for interested persons to submit comments and representing 2 per cent of dollar value of the 1 -4 views on the public interest factors, was duly family loans made in the Jackson area. During the published (37 Federal Register 26060). The time same period, Bridges made 610 loans with a value for filing comments and views has expired, and of $12.3 million, representing about 13 per cent the Board has considered all comments received of the dollar value of such loans in the market. in the light of the public interest factors set forth As a result of consummation of the proposal in § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). herein, Applicant would control 15 per cent of all Applicant is a one-bank holding company con­ trolling Deposit Guaranty Bank (“Bank”), Jack­ son, Mississippi. Bank holds $540 million in de­ banking data are as of June 30, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 FEDERAL RESERVE BULLETIN □ AUGUST 1973 1-4 family mortgages in the market, making Ap­ banking market, the acquisition would not result plicant the largest lender in this category in the in an undue concentration of resources. Jackson market. While these statistics appear to In the course of its consideration of the applica­ indicate that there is some competition between tion, the Board has considered comments by the the two institutions in the category of 1-4 family Department of Justice to the effect that consum­ mortgage loans, the record shows that Bank makes mation of the proposal would eliminate existing conventional loans of relatively short term and and potential competition by “combining a bank only to established customers of Bank, not to the with almost half of the commercial bank deposits general public, whereas Bridges offers FHA and in Jackson with the largest independent mortgage VA mortgage loans to the general public. It ap­ company in the same geographic area. . . .” pears, therefore, that no meaningful present com­ However, in the Board’s judgment, consummation petition would be eliminated between the two of the proposal is not likely to eliminate any institutions in the 1-4 family mortgage market. significant present or potential competition; Ap­ The Board further notes that Applicant has at­ plicant will be one of a number of viable and tempted unsuccessfully to enter the Jackson area aggressive real estate lenders now competing in through the de novo establishment of a mortgage the Jackson area. Moreover, as a result of the subsidiary; there are at present four mortgage vigorous growth in the Jackson area and the pros­ companies in the area each of a size comparable pects for continued growth, four of the largest to Bridges; there are a large number of mortgage mortgage companies in the country, including the lenders in the area (25—of which six are banks, first, sixth, twenty-first, and twenty-fifth largest nine are mortgage companies, and ten are savings mortgage servicing firms in the United States, have and loan associations); the Jackson market is at­ opened offices in Jackson, and there is evidence tractive for entry by other firms of major capabil­ that additional firms expect to enter the Jackson ity. The Jackson area has enjoyed good population area, which facts suggest that the combination of and economic growth in the past. The population Bank and Bridges would not affect adversely, to increased at a 7.4 per cent rate (240,000 to 258,- any significant degree, competition in the field of 000) from 1965 to 1970, while during the same mortgage lending in any relevant area. period the per capita income rose 40 per cent The Board further notes that Bridges is in need ($2,282 to $3,209). On the record herein, it ap­ of additional capital to continue its operation, and pears that upon consummation of the proposal, Applicant has indicated that it would provide an Applicant’s market share would not be so great additional $1,000,000 of equity capital to the as to preclude the development of competition company, and also help the company arrange through the entry of other mortgage lenders into additional lines of credit. Such action by Applicant the area nor would Applicant dominate the market. should strengthen the financial position of Bridges, Applicant’s subsidiary bank and Bridges also thereby enabling it to continue the present scope make loans on commercial property and con­ of its mortgage lending activities and to remain struction loans in the Jackson area. In the former an effective or strengthened competitor in its mar­ category during 1971, Bank made 37 loans with ket and further the economic development of the a value of some $2 million, and Bridges made Jackson area. In addition, Bridges would be able four loans with a value of $1.5 million. Applicant to expand its construction lending and to engage would control less than 7 per cent of the loans in making conventional residential loans, each of on commercial property in the Jackson area as a which requires additional capital which is now result of its acquisition of Bridges. With respect unavailable to Bridges. Bridges’ ability to expand to construction loans during 1971, Bank originated into new lines of real estate lending and to continue 263 loans with a value of under $14 million, and the present mortgage loan activities should provide Bridges made 136 loans with a value of about $2 additional benefits to the communities served by million. In neither category (loans on commercial Bridges. Without financial assistance from Appli­ property or construction loans) does it appear that cant, Bridges would, it is stated, be required to Bridges is an aggressive competitor, nor that close at least two of its five offices and curtail its Bridges’ acquisition by Applicant would have a lending activities. Increased economic activity in significantly adverse effect on competition in either the State of Mississippi, which is a State with low product line in the Jackson market; moreover, per family income, and in the relevant communi­ since the Board considers the geographic market ties affected by the proposal, is regarded by the for these types of loans to be larger than the Board as being in the public interest and serving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 595 the convenience and needs of the communities existing and potential competition.1 In the present involved. The aforestated public benefits lend case, the same conclusion was reached by the weight for approval of the application and tend Department of Justice in its comments filed with to offset any adverse effect on competition that the Board in connection with the pending applica­ may result from consummation of the proposal tion. On the facts presented in this case, Appli­ herein. cant’s subsidiary bank is the largest bank in the Based upon the foregoing and other consid­ State with about 14 per cent of commercial bank erations reflected in the record, the Board has deposits, and Bridges is the second largest mort­ determined that the balance of the public interest gage company in Mississippi and the largest mort­ factors the Board is required to consider under § gage lender in the Jackson area. The evidence 4(c)(8) is favorable. Accordingly, the application before the Board shows clearly that there is exist­ is hereby approved subject to the conditions set ing competition between the two institutions in the forth in § 225.4(c) of Regulation Y and to the Jackson area. Although the majority does not Board’s authority to require such modification or dispute this conclusion, an effort is made to dif­ termination of the activities of a holding company ferentiate between the types of 1-4 family residen­ or any of its subsidiaries as the Board finds neces­ tial loans made by the two institutions—and thus sary to assure compliance with the provisions and to discount the extent to which competition would purposes of the Act and the Board’s regulations be eliminated. Such analysis, in our view, does and orders issued thereunder, or to prevent evasion not give adequate weight to the fact that the thereof. The transaction shall be consummated not institutions are alternative lenders; each may enter later than three months after the effective date of the other’s field of activity; and that consummation this Order, unless such period is extended for good of the proposal reduces the number of potentially cause by the Board, or by the Federal Reserve large mortgage lenders in the Jackson area. Bank of Atlanta pursuant to delegated authority. In our judgment, if the present proposal were By order of the Board of Governors, effective denied, it is highly likely that Applicant would July 30, 1973. attempt to enter the mortgage lending market through some less anticompetitive means, such as Voting for this action: Chairman Burns and Governors by way of a foothold acquisition. Applicant has Mitchell, Daane, and Sheehan. Voting against this action: Governors Brimmer, Bucher, and Holland. apparently decided to expand its activities into mortgage lending, as evidenced by its attempt to (Signed) C hester B. Feldberg, form a mortgage company de novo. Denial of the [seal] Secretary of the Board. present application would provide an incentive for Applicant to acquire one of the smaller mortgage Dissenting Statement of companies in the market or to acquire a larger Governors Brimmer, Bucher, and Holland mortgage company outside of that market, either of which would be clearly preferable to the present We would disapprove the application of Deposit proposal from a competitive standpoint.2 As a Guaranty Corporation to acquire Bridges Loan and result of the Board’s action with respect to the Investment Company. In joining the largest com­ instant application, such a procompetitive method mercial bank in Mississippi with the State’s second of entry into mortgage lending by Applicant is largest mortgage company, the proposal would eliminated. eliminate existing competition in mortgage lend­ ing, further concentrate financial resources in the Jackson area, and foreclose the likely development *See e.g. application of First Tulsa Bancorporation, Tulsa, Oklahoma, to acquire Hall Investment Company, Tulsa, Okla­ of significant future competition between the two homa (1972 Federal Reserve Bulletin 317); and application institutions. In our view, the record does not of First Railroad Company of Georgia, Augusta, Georgia, to disclose public benefits sufficient to outweigh the acquire Southern Finance Company, Augusta, Georgia (1973 Federal Reserve Bulletin 25). adverse competitive effects summarized herein. 2 It might be noted that such a course was followed by In analyzing similar proposals involving the Crocker National Corporation after the Board denied an appli­ acquisition by a holding company with a large cation to acquire Ralph C. Sutro Mortgage Company, a mort­ gage company engaged extensively in the same lines of activity banking subsidiary of a substantial mortgage com­ and same geographical area as Crocker. (1972 Federal Reserve pany operating in the same market as the bank, Bulletin 419.) Crocker subsequently filed an application and received Board approval on May 10, 1973, to acquire the the Board has generally concluded that consum­ Schumacher Mortgage Company, a company whose mortgage mation of such a proposal would eliminate both lending activities were conducted principally in Tennessee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Unless the record shows that acquisition of views on the public interest factors, has been duly Bridges by Applicant “can reasonably be expected published (38 Federal Register 14799). The time to produce benefits to the public, such as greater for filing comments and views has expired, and convenience, increased competition, or gains in none has been timely received. efficiency” that outweigh the elimination of exist­ Applicant, the eighth largest banking organi­ ing competition and the foreclosure of significant zation in North Carolina, controls three banks with potential competition (which we find present in the aggregate deposits of $283 million, representing proposal), we are compelled to vote for denial of 2.8 per cent of the total deposits of commercial the application. The record before the Board pro­ banks in the State.1 Applicant also controls four vides little such evidence, apart from the ability nonbanking subsidiaries one of which, First of the Applicant to provide Bridges with additional Credit, is presently engaged in consumer finance capital. We are not persuaded that Applicant’s company activities. First Credit (total assets of proposal is the only feasible solution to Bridges’ $769 thousand) is licensed under State law to make capital problem. As a matter of fact, given consumer loans with cash advances not exceeding Bridges’ extensive real estate experience and sub­ $900. It operates as a direct subsidiary of Appli­ stantial position in the mortgage market in Missis­ cant with offices in Shallotte and Wilmington, sippi, it seems very likely to us that Bridges would North Carolina.2 be an attractive acquisition for other firms that Prudential (with total assets of $363 thousand) would not entail the adverse competitive effects is a consumer finance company doing business of the present proposal. through two offices located in Sanford, North In our judgment, the adverse competitive effects Carolina. Most of Prudential’s business is derived likely to flow from Applicant’s proposed acquisi­ from Lee County, North Carolina, although a tion have not been outweighed by sufficient evi­ slight amount of business is obtained from the dence that significant benefits to the public will three adjoining counties. Four other finance com­ result. Accordingly, we would deny the applica­ panies compete in the Sanford market; Prudential tion. controls but 12 per cent of the combined total assets of the finance companies in this market. UNITED CAROLINA BANCSHARES Neither Applicant’s banking subsidiaries nor CORPORATION, First Credit are located in the Sanford area, and WHITEVILLE, NORTH CAROLINA it does not appear that consummation of this transaction will eliminate any present competition. Order Approving Acquisition of Prudential Due to the distance involved between Applicant’s Credit Corporation of Sanford subsidiaries and Prudential, it is doubtful that any United Carolina Bancshares Corporation, future competition will be foreclosed. Moreover, Whiteville, North Carolina, a bank holding com­ the presence of four other finance companies pany within the meaning of the Bank Holding operating in Sanford makes de novo entry into the Company Act, has applied for the Board’s ap­ market unlikely. proval, under § 4(c)(8) of the Act and § Prudential also sells credit life insurance and 225.4(b)(2) of the Board’s Regulation Y, to ac­ accident and health insurance directly related to quire indirectly through its wholly-owned subsid­ the loans it originates. Due to the limited nature iary, First Credit Corporation, Shallotte, North of its insurance activities, it does not appear that Carolina (“First Credit”), all of the assets of Applicant’s acquisition of Prudential’s insurance Prudential Credit Corporation of Sanford, Sanford, activities would have any significant effect on North Carolina (“Prudential”). Prudential is a either existing or potential competition. consumer finance company that engages in the The financial condition of Applicant is satis­ activities of making loans with a cash advance of factory, but the capital structure of First Credit $900 or less and acting as agent with respect to is still inadequate. All of its debt, however, is due credit life and accident and health insurance di­ to Applicant which has adequate resources to rectly related to an extension of credit. Such ac­ 1 Banking data are as of December 31, 1972, and do not tivities have been determined by the Board to be include Applicant’s 49 per cent interest in a recently opened closely related to the business of banking (12 CFR de novo bank, Capitol National Bank of Raleigh. See Board Order of October 24, 1972, 37 Federal Register 23296. 225.4(a)(1) and (9)(ii)(a)). 2See Board Order of November 20, 1972, approving transfer Notice of the application, affording opportunity of First Credit from Applicant’s subsidiary bank to Applicant, for interested persons to submit comments and (37 Federal Register 25204). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 597 manage it. Moreover, First Credit has operated at The Board has a statutory responsibility to de­ a profit for the past two years; and this acquisition termine whether an acquisition can reasonably be represents an attempt by Applicant to strengthen expected to produce benefits to the public. Given the financial condition and enhance the prospects this plainly stated statutory responsibility, I cannot of First Credit. Considerations relating to the fi­ perceive how the public interest is served by nancial and managerial resources of Applicant and approving agreements which, by their very nature, its subsidiaries are consistent with approval of the retard the development of competition and restrict application. entry into a business by individuals who should Affiliation of Prudential with First Credit will be free to compete if they so desire. I would, likely increase the potential volume of loanable therefore, deny this application as contrary to funds available to the public and should enable public interest. Prudential to compete more effectively with other finance companies. Consequently, factors relating ORDERS UNDER SECTION 3 AND 4 OF to convenience and needs are consistent with ap­ BANK HOLDING COMPANY ACT proval. Based upon the foregoing and other consid­ CONTINENTAL BANKSYSTEM, INC., erations reflected in the record, the Board has ST. PAUL, MINNESOTA determined that the balance of the public interest Order Denying Formation of factors the Board is required to consider under § Bank Holding Company 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is subject Continental Banksystem, Inc., St. Paul, Min­ to the conditions set forth in § 225.4(c) of Regu­ nesota, has applied for the Board’s approval under lation Y and to the Board’s authority to require § 3(a)(1) of the Bank Holding Company Act (12 such modification or termination of the activities U.S.C. 1842(a)(1)) for formation of a bank hold­ of a holding company or any of its subsidiaries ing company through acquisition of 60 per cent as the Board finds necessary to assure compliance or more of the voting shares of St. Anthony Park with the provisions and purposes of the Act and State Bank, St. Paul, Minnesota (“St. Anthony the Board’s regulations and orders issued there­ Park”); 53 per cent or more of the voting shares under, or to prevent evasion thereof. of Roseville State Bank, Roseville, Minnesota By order of the Board of Governors, effective (“Roseville Bank”); 59 per cent or more of the July 13, 1973. voting shares of Peoples National Bank, Mora, Minnesota (“Mora Bank”); and 70 per cent or Voting for this action: Vice Chairman Mitchell and Gover­ nors Daane, Sheehan, Bucher, and Holland. Voting against more of the voting shares of Citizens State Bank this action: Governor Brimmer. Absent and not voting: Chair­ of Montgomery, Montgomery, Minnesota man Burns. (“Montgomery Bank”). (Signed) C hester B. Feldberg, At the same time Applicant has applied for the [seal] Secretary of the Board. Board’s approval under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to Dissenting Statement of acquire a majority of the voting shares of Peoples Governor Brimmer Credit Company of Mora, Minnesota, Inc., Mora, I would disapprove the application by United Minnesota (“Peoples Credit Company”), a com­ Carolina Bancshares to acquire Prudential Credit pany which engages in the activities of a non-real Corporation. My decision is based on the covenant estate agricultural credit corporation. Such activity not to compete contained in the acquisition agree­ has been determined by the Board to be closely ment, which prevents Prudential’s two owners related to the business of banking (12 CFR 225.4(a)(2)).1 from engaging in the finance company business Notice of the application, affording opportunity within a radius of 50 miles for a period of five for interested persons to submit comments and years. For reasons stated more fully in my dissent views has been given in accordance with §§3 and to the Board’s Order of April 26, 1973, approving 4 of the Act (38 Federal Register 11011, 11034). the acquisition by Orbanco, Inc., of Far West The time for filing comments and views has ex­ Security Company, it is my view that such cove­ nants are inconsistent with the promotion of com­ 1ln view of the Board’s Order denying the formation of petition as required by the Bank Holding Company the bank holding company, action with respect to the § 4(c)(8) Act and should not be sanctioned by the Board. application has been rendered moot. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 FEDERAL RESERVE BULLETIN □ AUGUST 1973 pired, and none has been timely received. The will not produce any adverse competitive effects Board has considered the applications in light of and may be slightly procompetitive if they result the factors set forth in § 3(c) of the Act (12 U.S.C. in a holding company capable of offering new 1842(c)), and the considerations specified in § competition to the dominant banking organizations 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)). in the State. Applicant was organized in 1970 for the purpose While Applicant proposes to offer additional of becoming a bank holding company and has no services and improve the facilities and increase the operating history. The four banks to be acquired hours of operation of the banks to be acquired, have aggregate deposits of $49 million represent­ the Mora, Montgomery and Twin City markets are ing .5 per cent of the total commercial bank being adequately served at present. Considerations deposits in Minnesota.2 Applicant would become relating to the convenience and needs of the com­ the tenth largest bank holding company and the munities to be served are consistent with and lend twelfth largest banking organization in the State. slight weight for approval. St. Anthony Bank (deposits of $10.3 million) While the above considerations are consistent and Roseville Bank (deposits of $15 million) are with approval, § 3(c) of the Bank Holding Com­ located about three miles apart in a northwestern pany Act directs the Board to take into consid­ section of St. Paul, Minnesota and an adjacent eration the financial and managerial resources and northern suburb respectively. There is a small future prospects of Applicant and banks to be amount of service area overlap between the two acquired; these give rise to serious questions in banks and some competition would be eliminated connection with this proposal. Even if successful by this proposed transaction. The Twin Cities in completing a private equity offering of $2 mil­ market, however, is highly concentrated with the lion, which must be effected prior to the consum­ two largest banking organizations holding 70 per mation, Applicant will still have acquisition debt cent of the market deposits. In view of this con­ remaining equal to 66 per cent of equity capital centration and the large number of commercial accounts. Applicant’s plan to eliminate this debt banking alternatives (75) in the market and the by a public or private placement equity offering fact that by this proposed transaction both banks of $2 million during 1975 is questionable under may become more viable competitors to the domi­ conditions the Applicant projects. Earnings pros­ nant banking organizations in the market, the pects as projected by the Applicant are essentially slight elimination of competition is not a signifi­ dependent on earnings of the proposed subsidi­ cant adverse factor. aries, and these do not appear sufficient to service Mora Bank (deposits of $13.5 million) is located the debt in the interim period and still maintain in a rural area of Kanabec County, Minnesota, a viable organization. This strain on earnings in 60 miles north of St. Paul. Montgomery Bank turn will make the projected 1975 placement more (deposits of $10 million) is located in a rural area questionable. Applicant has failed to show alter­ of La Sueur County, Minnesota, 50 miles south­ native plans or ability to meet its debt should its west of St. Paul. Neither of these banks compete 1975 equity offering fail or become impossible to with the other or with St. Anthony Bank or Rose­ complete. ville Bank. In view of the distances involved and The Board has on many occasions stated that the Minnesota prohibition against branching it is a holding company should be a source of strength unlikely that any such competition would develop for its subsidiary banks rather than vice versa. in the future. Applicant, however, will be required to use bank Peoples Credit Company (outstanding loans of earnings to support its acquisition debt and will $1.3 million) originates and services non-real es­ be unable to provide additional capital funds tate agricultural loans in the same market area should the need arise. In addition, the acquisition serviced by Mora Bank. Since Mora Bank is of the majority interest of one of the banks con­ affiliated with Peoples Credit Company, St. An­ templates the payment of $125,000 in deferred thony Bank and Roseville Bank do not make compensation over five years to the majority agricultural loans, and Montgomery Bank is 110 shareholder in return for his services as chief miles away, there is no elimination of competition executive officer of the bank and for making him­ through this acquisition. The proposed acquisitions self available part-time to perform services for Applicant. Since the bank already has an ade­ 2A11 banking data are as of June 30, 1972 and reflect bank quately compensated chief executive officer, and holding company formations and acquisitions through April 30, 1973. the majority shareholder is principally involved in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 599 operating his own construction firm, there appears tion not exceeding 5,000 is an activity that the to be no economic justification for this compensa­ Board has previously determined to be closely tion arrangement. The capital position of this bank related to banking (12 CFR 225.4(a)(9)(iii)(a)). is at present only marginally satisfactory, and the Notice of receipt of the applications has been proposed compensation agreements would ad­ given in accordance with sections 3 and 4 of the versely affect its financial position and future Act, and the time for filing comments and views prospects. has expired. The Board has considered the appli­ The Board concludes that the excessive debt to cations and all comments received in light of the be incurred by Applicant in this proposed transac­ factors set forth in § 3(c) of the Act, and the tion, the consequent strain on subsidiary bank considerations specified in section 4(c)(8) of the earnings to service the debt, and the reliance Act. without alternative plans on an uncertain public Applicant was organized in October 1972, for placement to repay his debt present adverse cir­ the principal purpose of becoming a bank holding cumstances bearing on financial condition, mana­ company through acquisition of Bank. Applicant’s gerial responsibility and future prospects of the sole business activity to date has been the acquisi­ Applicant and banks. These circumstances are not tion of the building presently occupied by Bank outweighed by any procompetitive factors or by and the operation of Agency as a subsidiary of considerations relating to convenience and needs Applicant. of the communities to be served. Accordingly, the Bank ($8.1 million in deposits) is the only bank Board is of the opinion that approval of this in Sidney, a rural community. Bank controls 32.4 application is not in the public interest and should per cent of the total deposits held by the seven be denied. banks in Fremont County and, on that basis, is On the basis of the record, the application is the largest bank in the county.1 Acquisition of denied for the reasons summarized above. Bank by Applicant would not eliminate any exist­ By order of the Board of Governors, effective ing competition, have an undue adverse effect on July 2, 1973. any other bank in the county, nor preclude the establishment of new banks in the area. Voting for this action: Chairman Burns and Governors The financial and managerial resources and fu­ Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland. ture prospects of Applicant and Bank are satis­ (Signed) C hester B. Feldberg, factory and consistent with approval. (Although [seal] Secretary of the Board. Applicant will incur considerable debt in acquiring Bank, its income from Bank and Agency will SOUTHWEST COMPANY, provide sufficient revenue to service the debt ade­ SIDNEY, IOWA quately.) Applicant proposes to increase Bank’s agricultural and commercial loans in the primary Order Approving Formation of Bank service area through a more aggressive lending Holding Company and Retention of policy.2 Accordingly, considerations relating to Insurance Agency Activities the convenience and needs of the community to be served, with respect to the acquisition of Bank, Southwest Company, Sidney, Iowa, has applied are consistent with approval of the application. It for the Board’s approval under § 3(a)(1) of the is the Board’s judgment that consummation of the Act (12 U.S.C. 1842(a)(1)) of formation of a bank transaction would be in the public interest and that holding company through acquisition of 85.1 per the application to acquire Bank should be ap­ cent or more of the voting shares of Fremont proved. County Savings Bank, Sidney, Iowa (“Bank”). Agency operates a general insurance agency At the same time, Applicant has applied for the business out of an office adjacent to Bank and is Board’s approval under § 4(c)(8) of the Act (12 one of four insurance agencies in Sidney. Agency U.S.C. 1843(c)(8)) and § 225.4(b)(2) of Regula­ and Bank have been associated and under common tion Y to continue to engage in certain permissible ownership for a number of years. Retention of insurance agency activities, to be conducted in Applicant’s insurance activities would enable Sidney, Iowa (population of less than 2,000), Bank’s customers to enjoy the continued conven­ through the retention of Pullman Insurance Agency, Sidney, Iowa (“Agency”). The opera­ 1A11 banking data are as of June 30, 1972. tion by a bank holding company of a general 2The loan-to-deposit ratio (as of October 14, 1972) was 32.9 insurance agency in a community with a popula­ per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 FEDERAL RESERVE BULLETIN □ AUGUST 1973 ience of obtaining banking and insurance activities tive (President of Bank) and shareholder of Appli­ in conjunction with each other. There is no evi­ cant from engaging in the insurance agency busi­ dence in the record indicating consummation of ness within Fremont County for a three-year period the proposal would result in any undue concentra­ following his leaving the employ of Applicant or tion of resources, unfair competition, conflicts of any of its subsidiaries. For reasons stated more interest, unsound banking practices or other ad­ fully in my dissents to the application of Orbanco, verse effects on the public interest. On the basis Inc., to acquire Far West Security Company (59 of the foregoing and other facts reflected in the Federal Reserve B ulletin 368-369 (1973)), and record, the Board has determined that the consid­ the application of CBT Corporation to acquire erations affecting the competitive factors under General Discount Corporation (59 Federal Reserve section 3(c) of the Act and the balance of the B ulletin 471 (1973)) it is my opinion that such public interest factors the Board must consider covenants do not serve to promote competition as under section 4(c)(8) in permitting a holding com­ required by the Bank Holding Company Act and pany to engage in an activity on the basis that should not be sanctioned by the Board. it is closely related to banking both favor approval Under the provisions of § 4(c)(8), the Board of the Applicant’s proposal. is required to determine whether an acquisition of Accordingly, the applications are approved for a nonbanking company can reasonably be expected the reasons summarized above. The acquisition of to produce benefits to the public that outweigh Bank shall not be consummated (a) before the possible adverse effects. In view of this respon­ thirtieth calendar day following the effective date sibility, I would deny this application as contrary of this Order, or (b) later than three months after to the public interest. the effective date of this Order, unless such period is extended for good cause by the Board, or by BOARD REVIEW UNDER THE the Federal Reserve Bank of Chicago pursuant to GRANDFATHER PROVISO IN SECTION 4(a)(2) delegated authority. The determination as to OF THE BANK HOLDING COMPANY ACT Agency’s activities is subject to the Board’s au­ THE REPUBLIC NATIONAL BANK thority to require reports by, and make examina­ OF DALLAS, tions of, holding companies and their subsidiaries DALLAS, TEXAS and to require such modification or termination of the activities of a holding company or any of its “Grandfather” Privileges subsidiaries as the Board finds necessary to assure Under Bank Holding Company Act compliance with the provisions and purposes of Section 4 of the Bank Holding Company Act the Act and the Board’s regulations and orders (12 U.S.C. 1843) provides certain privileges issued thereunder, or to prevent evasion thereof. (“grandfather” privileges) with respect to non­ By order of the Board of Governors, effective banking activities of a company that, by virtue July 17, 1973. of the 1970 Amendments to the Bank Holding Company Act, became subject to the Bank Hold­ Approval of acquisition of Fremont County Savings Bank, Sidney, Iowa. Voting for this action: Vice Chairman Mitchell ing Company Act. Pursuant to § 4(a)(2) of the and Governors Daane, Brimmer, Sheehan, Bucher, and Hol­ Act, a “company covered in 1970” may continue land. Absent and not voting: Chairman Burns. Approval of retention of Pullman Insurance Agency, Sidney, to engage, either directly or through a subsidiary, Iowa. Voting for this action: Vice Chairman Mitchell and in nonbanking activities that such a company was Governors Daane, Sheehan, Bucher, and Holland. Voting lawfully engaged in on June 30, 1968 (or on a against this action: Governor Brimmer. Absent and not voting: Chairman Burns. date subsequent to June 30, 1968, in the case of activities carried on as a result of the acquisition (Signed) C hester B. Feldberg, by such company or subsidiary, pursuant to a [seal] Secretary of the Board. binding written contract entered into on or before June 30, 1968, of another company engaged in Dissenting Statement of such activities at the time of the acquisition), and Governor Brimmer has been continuously engaged in since June 30, 1968 (or such subsequent date). I would deny the application by Southwest Section 4(a)(2) of the Act provides, inter alia, Company to retain Pullman Insurance Agency. My that the Board of Governors of the Federal Reserve decision is based on the existence of a covenant System may terminate such grandfather privileges not to compete which prevents a principal execu­ if, having due regard to the purposes of the Act, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 601 the Board determines that such action is necessary ing about 28 per cent of the deposits in commercial to prevent an undue concentration of resources, banks in the Dallas market and about 6 per cent decreased or unfair competition, conflicts of inter­ of such deposits in the State.2 Together with its est, or unsound banking practices. With respect banking subsidiary, Registrant controls deposits of to a company that controls a bank with assets in $1.9 billion, representing about 29 per cent of the excess of $60 million on or after December 31, deposits in Dallas and 6.3 per cent of the total 1970, the Board is required to make such a deter­ deposits in the State. mination within a two year period. Registrant has six wholly-owned nonbanking Notice of the Board’s proposed review of subsidiaries: (1) Republic International Company, grandfather privileges of The Republic National Dallas, Texas, an Edge Act Corporation acquired Bank of Dallas, Dallas, Texas, and an opportunity in May, 1968; (2) Republic Computer Corpora­ for interested persons to submit comments and tion, Dallas, Texas, a company that apparently views or request a hearing, has been given (37 was acquired in March, 1969 and provides data F.R. 22414). The time for filing comments, views, processing services to commercial banks; (3) and requests has expired, and all those received Republic National Corporation, Wilmington, Del­ have been considered by the Board in light of the aware, a company that was acquired in February, factors set forth in § 4(a)(2) of the Act. 1964 and owns Registrant’s banking premises; (4) On the evidence before it, the Board makes the Medipark, Inc., Dallas, Texas, a company that following findings. The Republic National Bank was acquired in August, 1969 and owns and of Dallas, (“Registrant”), Dallas, Texas, became operates a parking garage for Registrant’s em­ a bank holding company on December 31, 1970, ployees and customers; (5) Republic Small Busi­ as a result of the 1970 Amendments to the Act,1 ness Investment Company, Dallas, Texas, a small by virtue of Registrant’s indirect ownership of 30 business investment company acquired in May, per cent of the voting shares of Oak Cliff Bank 1961; and (6) Livingston, Inc., Dallas, Texas, a and Trust Company (“Bank”), Dallas, Texas company that was acquired in April, 1955 and (assets of about $96 million, as of December 31, owns title to a building adjoining Registrant’s 1970). Bank, control of which was acquired by offices. A subsidiary that was acquired after June Registrant in 1929 had total deposits of approxi­ 30, 1968, does not provide a basis for entitlement mately $94 million as of December 31, 1971, to grandfather benefits. However, each of the six representing less than 2 per cent of the total subsidiaries is directly owned by Registrant, a deposits in commercial banks in the Dallas bank­ national bank. Accordingly, on the basis of § ing market, and is the seventh largest bank in that 4(c)(5) of the Act and § 225.4(e) of the Board’s market. Bank’s management, financial condition, Regulation Y,3 Registrant need not rely on grand­ and prospects are regarded as satisfactory, and the father privileges under the proviso in § 4(a)(2) for Board has found no evidence of unsound banking authority to continue the activities of the six direct practices. subsidiaries. Registrant, a national bank with total assets of In addition to its direct subsidiaries, Registrant $2.6 billion as of December 31, 1970, is the is deemed to control, by virtue of § 2(g)(2) of largest banking organization in Texas, and the the Act, the Howard Corporation, a trusteed affil­ largest of 118 banks in the Dallas banking market. iate of Registrant. Through the Howard Corpora­ Registrant has deposits of $1.8 billion, represent- tion, Registrant is reportedly engaged in dealing in securities; in activity involving oil, gas, and mineral exploration and development; and in cer­ *The Board’s action herein is based on Registrant’s claim that it controlled only one bank on June 30, 1968, and therefore tain real estate activity. The Board has currently became a bank holding company covered by the Bank Holding under consideration and review the question of Company Act as a result of the enactment of the 1970 Amend­ ments to the Act. The record shows that Registrant has interests in each of 21 other banks (“minority” banks), interests ranging 2 Deposit data are as of December 31, 1971, unless otherwise from 6 to 24.98 per cent. The action herein does not constitute indicated. a determination by the Board that any of the minority banks is or is not, or may become a subsidiary of Registrant. Nor 3Section 4(c)(5) of the Act permits a bank holding company does the action herein indicate that the Board would in the to acquire “shares which are of the kinds and amount eligible future permit Registrant to acquire, directly or indirectly, any for investment by national banking associations under the additional shares of any of said minority banks. Moreover the provisions of section 5136 of the Revised Statutes;”. Pursuant action herein does not preclude the Board from determining to § 225.4(e) of Regulation Y, a national bank that is a bank that Applicant exercises control of, or a controlling influence holding company may acquire or retain shares on the basis over the management or policies of, any of said banks within of section 4(c)(5) in accordance with the rules and regulations the meaning of § 2(a) of the Act. of the Comptroller of the Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 FEDERAL RESERVE BULLETIN □ AUGUST 1973 Registrant’s entitlement to grandfather privileges of its six direct subsidiaries described herein. with respect to these activities and whether termi­ By order of the Board of Governors, effective nation should be required under the criteria set July 13, 1973. forth in § 4(a)(2) of the Act, and a determination Voting for this action: Chairman Burns and Governors on that question will be issued in the future. Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland. On the basis of the foregoing and the facts (Signed) C hester B. Feldberg, before the Board, it appears that Registrant is authorized to continue to engage in the activities [seal] Secretary of the Board. ORDERS NOT PRINTED IN THIS ISSUE During July 1973, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT- APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY Federal Effective Register Applicants Bank date citation CleveTrust Corporation, The Cleveland Trust Company, 7/20/73 38 F.R. 20293 Wilmington, Delaware Cleveland, Ohio 7/30/73 First Finance Company & Commercial Bank of Leadville, 7/20/73 38 F.R. 20296 Mid-Continent Bancshares, Leadville, Colorado 7/30/73 Nevada, Missouri Hathdel Inc., The Illinois National Bank & 7/26/73 38 F.R. 21220 New Bedford, Massachusetts Trust Co. of Rockford, 8/6/73 Rockford, Illinois Iron City Eagle Coal, Inc., The Gauley National Bank 7/6/73 38 F.R. 18926 Lockwood, West Virginia of Gauley Bridge, Gauley 7/16/73 Bridge, West Virginia ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Board action Federal (effective Register Applicant Bank(s) date) citation Alabama Bancorporation, J.C. Jacobs Banking Company, 7/3/73 38 F.R. 18490 Birmingham, Alabama Inc., Scottsboro, Alabama 7/11/73 Alabama Bancorporation, The American National Bank of 7/27/73 38 F.R. 21215 Birmingham, Alabama Huntsville, Huntsville, 8/6/73 Alabama Barnett Banks of Florida, Inc. Delray Beach National Bank 7/26/73 38 F.R. 21216 Jacksonville, Florida Delray Beach, Florida and 8/6/73 Fidelity Bank of West Delray Beach, Delray Beach, Florida Barnett Banks of Florida, Inc. The First National Bank of Bay 7/24/73 38 F.R. 20649 Jacksonville, Florida Harbor Islands, Bay Harbor 8/2/73 Islands, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 603 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 Berkshire Bancorp Inc., Guaranty Bank & Trust 7/16/73 38 F.R. 19714 Pittsfield, Massachusetts Company, Worcester, 7/16/73 Massachusetts Commerce Bancshares, Inc., Commerce Bank of Indepen­ 7/26/73 38 F.R. 21216 Kansas City, Missouri dence, National Association, S/6/13 Independence, Missouri First & Merchants Corporation, First & Merchants National Bank 7/27/73 38 F.R. 21218 Richmond, Virginia of Tidewater, Chesapeake, 8/6/73 Virginia First & Merchants Corporation, Peoples Bank of Stafford, 7/3/73 38 F.R. 18494 Richmond, Virginia Virginia, Falmouth, Virginia 7/11/73 First Bancshares of Florida, Inc., First National Bank of Fort 7/6/73 38 F.R. 18924 Boca Raton, Florida Pierce, Fort Pierce, Florida 7/16/73 First Bancorporation of Texas, First Professional Bank, Nation­ 7/3/73 38 F.R. 18492 Inc., Houston, Texas al Association, Houston, Texas 7/11/73 First City Bancorporation of Northline State Bank, 7/12/73 38 F.R. 19453 Texas, Inc., Houston, Texas Houston, Texas 7/20/73 First Florida Bancorporation, The Southside Bank of St. Peters­ 7/26/73 38 F.R. 21217 Tampa, Florida burg, St. Petersburg, Florida 8/6/73 The Alabama Financial Group, First National Bank of Anniston, 7/19/73 38 F.R. 20122 Inc., Birmingham, Alabama Anniston, Alabama 7/27/73 First International Bancshares, Grove State Bank, 7/17/73 38 F.R. 19935 Inc., Dallas, Texas Dallas, Texas 7/25/73 First International Bancshares, Inc., Park Cities Bank & Trust Com­ 7/13/73 38 F.R. 19716 Dallas, Texas pany, Highland Park, Texas 7/23/73 First International Bancshares, Inc., Southwest Bank and Trust Com­ 7/16/73 38 F.R. 19874 Dallas, Texas pany, Irving, Texas 7/24/73 First International Bancshares, Inc., The First National Bank of 7/3/73 38 F.R. 18493 Dallas, Texas Odessa, Odessa, Texas 7/11/73 First International Bancshares, Inc., The First National Bank of 7/3/73 38 F.R. 18493 Dallas, Texas Harlingen, Harlingen, Texas 7/11/73 First National Charter Corporation, Commercial Bank of Lexington, 7/6/73 38 F.R. 18925 Kansas City, Missouri Lexington, Missouri 7/16/73 First Security Corporation, First Security Bank of Murray, 7/2/73 38 F.R. 18411 Salt Lake City, Utah N.A., Murray, Utah 7/10/73 First Union, Incorporated, Bank of Kennett, 7/6/73 38 F.R. 18925 St. Louis, Missouri Kennett, Missouri 7/16/73 Mercantile Bancorporation Inc., Mercantile National Bank of St. 7/12/73 38 F.R. 20125 St. Louis, Missouri Louis County, St. Louis 7/27/73 County, Missouri PanNational Group, Inc., Bassett National Bank of El Paso, 7/24/73 38 F.R. 20650 El Paso, Texas El Paso, Texas 8/2/73 PanNational Group, Inc., Citizens National Bank of Austin, 7/24/73 38 F.R. 21452 El Paso, Texas Austin, Texas 8/8/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 FEDERAL RESERVE BULLETIN □ AUGUST 1973 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Board action Federal Non banking Company (effective Register Applicant (or activity) date) citation First Chicago Corporation, AFSA Data Corporation, 7/12/73 38 F.R. 19715 Chicago, Illinois Hawthorne, California 7/23/73 First Commerce Corporation, Money, Inc., New Orleans, 7/10/73 38 F.R. 19163 New Orleans, Louisiana Louisiana 7/18/73 E-Z Finance Plan of Biloxi, Inc., Biloxi, Mississippi; and E-Z Finance Plan of Gulfport, Inc., Gulfport, Mississippi First Finance Company and Hugh E. Smith, Inc., 7/20/73 38 F.R. 20296 Mid-Continent Bancshares, Leadville, Colorado 7/30/73 Nevada, Missouri First Pennsylvania Corporation, Continental Finance Corpora­ 7/26/73 38 F.R. 21219 Philadelphia, Pennsylvania tion of America, Aurora, 8/6/73 Colorado Marine Bancorporation Globe Finance Co. of Oppor­ 7/12/73 38 F.R. 19453 tunity, Inc., Opportunity, 7/20/73 Washington Orbanco, Inc., Far West Securities Co., 7/16/73 38 F.R. 19875 Portland, Oregon Spokane, Washington 7/24/73 Patagonia Corporation, Western American Insurance 7/30/73 38 F.R. 21453 Tucson, Arizona Agency, Phoenix, Arizona 8/8/73 Redwood Bancorp, Montgomery Street Mortgage 7/24/73 38 F.R. 20951 San Rafael, California Corporation and West Coast 8/3/73 Security Insurance Agency, Inc., San Francisco, California Tennessee Valley Bancorp, Inc., Kimbrough-Kavanaugh and 7/30/73 38 F.R. 21454 Nashville, Tennessee Associates, Inc., Nashville, 8/8/73 Tennessee 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 date) citation The Moody Foundation, Galveston, Moody National Bank of 7/12/73 38 F.R. 19717 Texas Galveston, Galveston, Texas 7/23/73 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 605 ORDERS UNDER BANK MERGER ACT— APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Federal Effective Register Applicant Bank date citation The Cleveland Trust Company of The Cleveland Trust Company, 7/20/73 38 F.R. 20295 Painesville, Painesville, Ohio Cleveland, Ohio 7/30/73 The Cleveland Trust Company of Cleveland Trust Company, 7/20/73 38 F.R. 20294 Lorain, Lorain, Ohio Cleveland, Ohio 7/30/73 The Cuyahoga Bank, The Cleveland Trust Company, 7/20/73 38 F.R. 20295 Cleveland, Ohio Cleveland, Ohio 7/30/73 ORDERS ISSUED BY FEDERAL RESERVE BANKS During July 1973, applications were approved and orders were issued by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Federal Effective Register Applicant Bank(s) Reserve Bank date citation Pan American Bancshares, Volusia County National Atlanta 7/19/73 38 F.R. 20299 Inc., Miami, Florida Bank at Ormond Beach, 7/30/73 Ormond Beach, Florida Pan American Bancshares, First National Bank of Atlanta 7/19/73 38 F.R. 20300 Inc., Miami, Florida Florida DeBary, 7/30/73 DeBary, Florida First National Charter American National Kansas City 7/13/73 38 F.R. 20125 Corporation, Kansas Bank in Spring­ 7/27/73 City, Missouri field, Spring­ field, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF APPOINTMENT OF RESERVE BANK PRESIDENT The Board of Governors of the Federal Reserve The Board of Governors has approved the ap­ System has announced the following changes in pointment by the directors of the Federal Reserve its official staff: Bank of Richmond of Robert P. Black as President E. Maurice McWhirter has been promoted from of that Bank, to serve the remainder of a 5-year Chief Federal Reserve Examiner to Associate term expiring February 29, 1976. He succeeds Director of the Division of Federal Reserve Bank Aubrey N. Heflin, who died on January 16, 1973, Operations, effective July 22, 1973. after serving as President since 1968. Warren N. Minami has been appointed an As­ Prior to his appointment, effective August 6, sistant Director in the Division of Data Processing, Dr. Black was First Vice President of the Rich­ effective July 22. Prior to joining the Board’s staff mond Reserve Bank. A native of Kentucky, he in 1969, Mr. Minami was associated with the holds B.A., M.A., and Ph.D degrees from the International Monetary Fund. He received an University of Virginia. M.B.A. degree from American University in 1967 and is a doctoral candidate. APPOINTMENT OF BRANCH DIRECTOR James R. Kudlinski has been appointed an As­ The Board of Governors has appointed Joseph R. sistant Director of the Division of Federal Reserve Vaughan, of Los Angeles, California, as a director Bank Operations, effective August 5, 1973. Prior of the Los Angeles Branch of the Federal Reserve to his appointment to the Board’s staff in January Bank of San Francisco for the unexpired portion 1972, Mr. Kudlinski was at the Naval Security of a term ending December 31, 1974. Mr. Group Command. He holds an M.B.A. degree Vaughan, who is President of the Knudsen Cor­ from American University and is a candidate for poration, succeeds Ruth Handler, President of a doctoral degree. Mattel, Inc., Hawthorne, California, who resigned Baldwin B. Tuttle, who joined the Board’s staff April 19. in 1969, has been named Assistant General Coun­ sel in the Legal Division, effective August 5, CHANGE IN DISCOUNT RATE 1973. Mr. Tuttle holds a J.D. degree from the University of Pennsylvania Law School. The Board of Governors on August 13, 1973, Keith D. Engstrom has been appointed Director approved actions by the directors of the Federal of the Division of Personnel Administration, ef­ Reserve Banks of New York, Philadelphia, fective August 13, 1973. Mr. Engstrom, a gradu­ Cleveland, Richmond, Chicago, St. Louis, Min­ ate of Albion College, Albion, Michigan, comes neapolis, Kansas City, Dallas, and San Francisco to the Board from the corporate personnel staff increasing the discount rate of those banks from of Corning Glass Works, Corning, New York. 7 per cent to IV2 per cent, effective August 14. John J. Hart, Assistant Director in the Division The Board subsequently approved a similar in­ of Personnel Administration, has been named crease for the Federal Reserve Banks of Atlanta, Special Assistant to the Board, effective August effective August 16, and Boston, effective August 13. 23, at which time the rate was IV2 per cent at Daniel M. Doyle, Senior Vice President in all Reserve Banks. charge of the Detroit Branch of the Federal Re­ The action was taken in recognition of increases serve Bank of Chicago, has been appointed Deputy that have already occurred in other short-term Director for Management in the Office of the interest rates and is intended to bring the discount Executive Director, effective August 15, 1973. rate—which is the rate charged member banks for Mr. Doyle holds a B.A. degree from the Univer­ borrowings from their district Federal Reserve sity of Illinois and has completed the Stonier Banks—into better alignment with short-term rates Graduate School of Banking, Rutgers University. generally. 606 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AMENDMENT TO REGULATION Q their parent banks and other foreigners. Unlike U.S. banks, the agencies and branches rely mainly The Board of Governors on July 24, 1973, adopted on foreign sources of funds for their banking an amendment to Regulation Q spelling out—as activities. earlier announced by the Board on July 12—how At the end of May 1973, the latest date for the early withdrawal provisions apply to existing which complete data are available, there were 64 time deposit contracts. U.S. agencies and branches of foreign banks with The new early withdrawal rule (that went into $1 million or more in foreign assets. These insti­ effect July 5) states that a time deposit may be tutions, located in the New York area and on the withdrawn before maturity only at a reduced rate Pacific Coast, had total foreign assets of about $6.2 of interest—namely, the regular passbook rate for billion as of the end of May. Of this amount about the period held, minus 3 months. This rule applies, $3.6 billion was of types subject to restraint under under the amendment adopted, to the following the VFCR program. In the approximately W2 types of contracts: years since data were first collected on the foreign 1. Time deposits entered into after July 5. lending and investment activities of these institu­ 2. Contracts amended after July 5 to increase tions, their foreign assets—total and of type sub­ the rate of interest or to extend the maturity of ject to Guideline restraint—have approximately the deposit. doubled. 3. Contracts renewed after July 5, whether by The text of the amendment follows (italics indi­ automatic renewal or otherwise. cate language to be inserted; brackets indicate All other time deposit contracts are subject to deletions): the old rule which states that a bank may pay a time deposit before maturity only in an emergency Section II-A-9 where it is necessary to prevent great hardship to 9. U.S. Agencies and Branches of Foreign Banks the depositor. In such cases, the depositor forfeits accrued and unpaid interest for a period of up to a. The ceiling of a U.S. agency or branch of 3 months. a foreign bank that holds $1,000,000 or more in foreign assets (whether or not subject to restraint AMENDMENT TO VFCR GUIDELINES under the Guidelines) will be equal, to The Board of Governors on July 19, 1973, issued its holdings of foreign assets on June 30, a clarifying statement to the Voluntary Foreign 1973, of types subject to restraint under the Credit Restraint Guidelines (VFCR) to provide a Guidelines; less any decrease (or plus any specific formula for restraint of foreign lending and increase) in its liabilities to foreigners subse­ investment by the U.S. agencies and branches of quent to June 30, 1973. foreign banks. The amendment requests agencies and branches b. Subsequent to that date, any increase in not to increase their foreign assets covered by the such assets should be at least matched by an in­ program above the levels of June 30, 1973, except crease in foreign liabilities; correspondingly, to the extent that they obtain the additional funds any decrease in such liabilities should be accom­ outside the United States. The amendment will not panied by at least an equal reduction in such assets. change the degree of restraint on covered institu­ Section II-D-1 tions but is designed to ensure uniformity in ob­ 1. General servance of the VFCR program. Agencies and branches had not been assigned The Guidelines are applicable to all U.S. banks specific lending ceilings under the VFCR program, . [.], and to U.S. agencies and branches of as was the case with U.S. banks. Instead, they foreign banks. were asked to conform to the spirit of the Guide­ lines and to consult with the Federal Reserve Bank Section II-E-6 in their district. As activity by the agencies and 6. Banks without Ceilings branches has grown over the years, the lack of A bank that has not adopted a ceiling will be a specific guideline has produced some unevenness acting in conformity with the objectives of the in observance of the VFCR program and prompted Guidelines . . . . the Board to adopt the formula announced. The formula ties the restraint to the amount of A U.S. agency or branch of a foreign bank that funds the agencies and branches may obtain from has not adopted a ceiling would be acting in 607 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 FEDERAL RESERVE BULLETIN □ AUGUST 1973 conformity with the objectives of the Guidelines to determine the feasibility of automating the dis­ (a) if its holdings of foreign assets of types subject tribution and payment of Government payrolls. to restraint do not exceed $19000,000 and (b) if The program was announced jointly by the those foreign assets are otherwise in conformity Board of Governors of the Federal Reserve Sys­ with the Guidelines. A U.S. agency or branch of tem, the Treasury, and the Air Force. The program a foreign bank, regardless of when established or will provide information for assessing the outlook when it commences operation, that holds for substantially reducing the number of individual $1,000,000 or more of foreign assets (whether checks issued in making Government payroll pay­ or not subject to restraint under the Guidelines) ments. Total check usage now comes to some 26 will automatically have a monthly ceiling in ac­ billion items a year of which 750 million are cordance with section A-9 and should make every Treasury checks. Total check volume is growing reasonable effort to ensure that its foreign assets at a rate that will approximately double each and foreign liabilities are kept throughout the decade. monthly reporting periods, as well as on the end- The Federal Reserve is introducing equipment of-the month reporting dates, at levels consistent and technology to reduce dependence on checks with its ceiling. Each agency and branch of a for making money transfers, by substituting elec­ foreign bank may adopt an individual ceiling. tronic funds transfer. The objective—which the Alternatively, one or more agencies or branches experiment will serve—is to reduce the over-all of a particular foreign bank may consolidate ceil­ cost of making payments and to prevent check ings to which they would be entitled. Once con­ volume from becoming so large as to clog and solidated, they should henceforth report as a unit disrupt the Nation’s payment system. The experi­ under the Guidelines. ment will also further objectives of the Treasury Department and the Air Force to foster this use CEILING ON NEW TIME DEPOSITS of direct deposits of Federal payments as a means of reducing forgeries and speeding delivery. The The Board of Governors on July 26, 1973, im­ Air Force has been looking into and developing posed limits on the amount of “no-ceiling” consystems and procedures for simplifying the distri­ sumer-type certificates of deposit that may be bution of its worldwide payrolls and other recur­ issued by member banks. ring payments. On July 5, the Board had increased the maxi­ In early fall, at dates to be selected, Federal mum rates of interest that member banks may pay Reserve offices at Atlanta, Denver, Los Angeles, on savings and other consumer-type deposits, and and San Francisco will collaborate with the Air established a new category of time deposit on Force Accounting and Finance Center at Denver, which member banks may pay any rate of interest and with commercial banks in the three Federal they desire so long as the deposit matures in 4 Reserve Districts, in a simulation of paperless years or more and has a minimum denomination distribution of payroll credits to the commercial of $1,000. banks of personnel enrolled in the “Checks to To provide for introduction of the new savings Banks” program. At present, where several Air instruments at a more orderly pace, the Board on Force personnel have accounts in one bank, the July 26 limited the amount of such certificates that Air Force sends one check, together with a list a bank may issue to 5 per cent of its total time of the amounts involved, and of the names and and savings deposits. Any such certificate that a account numbers to which pay credits are to be bank sells beyond that amount will be subject to deposited. In this way, one check can substitute the existing interest rate ceiling of 6.5 per cent for a number of individual paychecks. that applies to time deposits maturing in 2Vi years The planned experiment will work as follows: or more. Savings and loan associations that are members 1. The Air Force will put on a single magnetic of the Federal Home Loan Bank System are also tape all deposit information for payments to subject to a limitation of 5 per cent of total savings participating personnel with accounts in all capital on issuance of the new type certificates. banks in an entire Federal Reserve District. 2. This tape will be sent to a Federal Reserve EXPERIMENT TO AUTOMATE Bank. GOVERNMENT PAYROLLS 3. There, the information will be electronically The U.S. Air Force, the Treasury, and the Federal sorted and delivered to the individual com­ Reserve will cooperate this fall in an experiment mercial banks involved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 609 4. The comnierciaJ bank will use the electroni­ INDUSTRIAL PRODUCTION STATISTICAL RELEASE cally sorted information to simulate credit to The release “Industrial Production” (G. 12.2) the accounts of military personnel who have and the Industrial Production charts and tables (G. accounts in that bank. 12.3) have been combined into one release entitled In the two pay periods when the simulation tests “Industrial Production” (G. 12.3). are being made, actual deposit of the pay of Requests for this release should be sent to Pub­ persons participating in the Air Force’s “Checks lications Services, Division of Administrative to Banks” program will be made as usual. Services, Board of Governors of the Federal Re­ Actual conversion to a paper-free system using serve System, Washington, D.C. 20551. magnetic tapes will await analysis of results of the simulation tests. All parties to the transaction ADMISSION OF STATE BANKS TO MEMBERSHIP performing operating functions—the U.S. Treas­ IN THE FEDERAL RESERVE SYSTEM ury as the source of the funds being transferred, the Air Force as disburser of the funds, the Federal The following banks were admitted to membership Reserve as the agency responsible for clearance in the Federal Reserve System during the period of the funds transfers, and the participating com­ July 16, 1973, through August 15, 1973: mercial banks as recipients of deposits—will have New York an opportunity to appraise the results of the test. New York............ Depository Trust Company If this joint undertaking proves successful, it Florida may form the basis for an eventual nationwide Gainesville..................... Bivens Gardens Bank electronic funds transfer system for the Federal Georgia Government. Atlanta................................. First Georgia Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication August 16 Industrial production increased 0.7 per cent further INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 in July, following an upward revised 0.5 per cent increase in June. At 126.3 per cent of the 1967 average, the total index was 9.7 per cent above a year earlier.1 Largest gains in output in July were in industrial materials, but consumer goods and business equipment also continued to rise further. Auto assemblies were at an annual rate of 10.3 million, slightly above the June rate. August pro­ duction schedules indicate little change from the June-July level after allowance for model change­ over. Output of carpeting and furniture and some household goods rose further and production of appliances and television sets was maintained at advanced levels, while most nondurable consumer F.R. indexes, seasonally adjusted. Latest figures: July. goods continued to increase. Production of business equipment advanced further in July and was 16.7 per cent above a year earlier. Output gains in July included most equip­ industrial production has been revised back to March 1972, ment industries, but production of trucks was incorporating revisions in seasonal adjustment factors and in levels of some important individual series on the basis of the close to capacity levels and showed little further more complete information now available. The level of the change in output. Aircraft output continued de­ total index now shows the industrial production to have in­ pressed. Among industrial materials, production creased at a faster pace—9.7 per cent for the year ending with the second quarter of 1973, compared with a rise of 9.1 per of steel as well as other durable goods materials cent for the unrevised index. All three major groupings—con­ continued strong as did output of the textile, paper, sumer goods, business equipment, and industrial materials— have been revised upward. and chemical materials groupings. Seasonally adjusted Percentage 1967=100 change from— Per cent changes, annual rates Industrial production 1972 1973 Year Month Year ending 1972 1973 1973 ago ago 1973 IV I IP July Junep Julye II Total index ................................. 115.1 125.4 126.3 .7 9.7 9.7 13.4 9.7 5.5 Market groupings: Final products ....................... 111.6 121.2 122.0 .7 9.3 9.0 12.4 10.7 5.0 Consumer goods .............. 123.3 131.5 132.2 .5 7.2 7.1 10.0 9.1 3.1 Business equipment ___ 105.5 122.7 123.1 .3 16.7 16.8 21.2 17.0 11.2 Materials ................................. 117.8 129.2 130.2 .8 10.5 10.5 13.4 9.4 6.7 Industry groupings: Manufacturing ....................... 114.3 125.2 126.6 1.1 10.8 10.8 13.5 10.0 6.9 Durables ............................. 108.8 122.5 123.9 1.1 13.9 14.1 18.5 12.5 9.8 Nondurables ..................... 122.5 129.3 130.4 .9 6.4 6.7 6.8 7.3 3.8 Mining and utilities ........... 124.0 126.8 127.7 .7 3.0 2.8 4.5 3.2 -2.5 pPreliminary. eEstimated. 610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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: Number of banking offices: A 96 Analysis of changes A 97 On, and not on, Federal Reserve Par List A 106 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted for seasonal variation c Corrected 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 Annually—Continued Issue Page Banking offices: Flow of funds: Analysis of changes in number Aug. 1973 A-96 Assets and liabilities: On, and not on, Federal Reserve 1960-71 .....................................June 1972 A-73.10—A-73.21 Par List, number ................... Aug. 1973 A-97 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: Banking and monetary statistics: Calendar year ..............................May 1973 A-96—A-105 1972 .............................................. Mar. 1973 A-100—A-114 Income ratios ..............................May 1973 A-106—A- 111 July 1973 A-96—A-99 Operating ratios ........................June 1973 A-96—A-101 Banks and branches, number, by class and State .................... Apr. 1973 A-96—A-97 Stock market credit ............................Jan. 1973 A-98—A-99 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases June 1973 A-113 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ AUGUST 1973 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Gold Drawing cur­ u H n e d l e d r Loans Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ assets 3 account stand­ Total out­ chase ing right agree­ ment Averages of daily figures 1939—Dec.................................... 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec.................................... 2,219 2,219 5 170 2,404 22’759 3*239 1945—Dec.................................... 23,708 23,708 381 652 24,744 20’047 4*322 1950—Dec.................................... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 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 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—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 May.................................. 76,758 76,205 553 1,786 2,247 960 81,889 10,410 400 8,478 June.................................. 75,355 75,047 308 1,789 2,369 942 80,546 10,410 400 8,518 July*................................. 77,448 76,875 573 2,051 3,091 1,180 83,858 10,410 400 8,538 Week ending— 1973—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 23........................... 77,534 76,477 1 ,057 1 ,689 2,159 760 82,283 10,410 400 8,487 30.................... 76,231 76,231 2,401 1,825 793 81,338 10,410 400 8,494 June 6........................... 76,049 75,328 721 1 ,664 2,347 853 81,043 10,410 400 8,500 13 .................... 73,953 73,953 1,700 2,340 887 78,950 10,410 400 8,515 20........................... 74,898 74,543 355 1,930 2,517 940 80,378 10,410 400 8,520 27........................... 75,871 75,832 39 1,848 2,630 999 81,419 10,410 400 8,526 July 4........................... 77,758 76,564 1,194 2,402 2,196 1,098 83,575 10,410 400 8,537 11........................... 77,002 76,650 352 1,680 3,718 1,090 83,573 10,410 400 8,537 18p......................... 77,264 76,821 443 1,723 3,808 1,183 84,049 10,410 400 8,537 25^......................... 77,243 76,853 390 2,080 3,299 1,244 83,936 10,410 400 8,540 End of month 1973—May.................................. 75,368 8 75,368 1,225 2,716 809 80,201 10,410 400 8:498 76,471 8 76,471 1,770 2,048 1,135 81,490 10,410 400 8,531 July?5................................. 78,821 8 77,750 1,071 2,224 2,015 1,307 84,499 10,410 400 8,540 Wednesday 1973—May 2........................... 76,464 8 75,890 574 817 3,457 1 ,177 82,059 10,410 400 8,462 9........................... 76,814 8 76,296 518 2,778 2,729 1 ,226 83,710 10,410 400 8,466 16........................... 77,663 8 76,296 1 ,367 2,445 3,341 739 84,378 10,410 400 8,471 23........................... 77,940 8 76,506 1 ,434 1 ,455 2,514 787 82,864 10,410 400 8,493 30 . . . 75,187 8 75,187 1 ,771 2,134 820 79,996 10,410 400 8,498 June 6........................... 75,957 8 75,196 761 881 3,291 870 81,160 10,410 400 8,502 13 .... 72,641 9 72,641 1,694 2,954 948 78,302 10,410 400 8,515 20........................... 76,253 8 75,277 976 1,761 3,458 990 82,585 10,410 400 8,520 27 ......................... 75,865 9 75,865 1,584 2,644 1,081 81,241 10,410 400 8,535 July Av......................... 79,148 9 76,787 2,361 2,999 2,403 1,065 85,789 10,410 400 8,537 1 \p ...................... 74,173 9 74,173 2,302 4,284 1,165 81,981 10,410 400 8,537 18*......................... 77,361 8 76,777 584 1,674 4,319 1,210 84,631 10,410 400 8,537 25*......................... 76,877 9 76,591 286 2,025 3,395 1,272 83,654 10,410 400 8,543 1 Includes Federal agency issues held under repurchase agreements as industrial loan program was discontinued. For holdings of acceptances of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29, on Wed. and end-of-month dates, see tables on F.R. Banks on following 1971. pages. See also note 2. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 5 Includes certain deposits of domestic nonmember banks and foreign- Bulletin, p. 164. owned banking institutions held with member banks and redeposited in 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. full with Federal Reserve Banks in connection with voluntary participa­ liabilities and capital” are shown separately; formerly, they were tion by nonmember institutions in the Federal Reserve System’s program netted together and reported as “Other F.R. accounts.” of credit restraint. 4 Includes industrial loans and acceptances until Aug. 21, 1959, when Notes continued on opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 e i n u n c r y ­ T c u r a e r s a y h s­ with r e F s . e R rv . e B s, a nks O F t . h R e . r O F l t . i h R a­ e . r reserves Period or date c t c u i i o l r a n ­ ­ h i o ng ld s ­ T u re r a y s­ F ei o g r n ­ co a u c n ­ ts3 c b a i a p l n i i t t d i a e l s 3 B W F a . n R it k h . s r C e a n n u c d r y ­ Total 7 coin6 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. 62,669 342 2,398 209 617 2,329 27,361 5,660 33,021 .1972—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 7 31,774 ............Nov. 7 66,060 350 1,449 272 631 2,362 24,830 6,095 31,353 ............Dec. 65,274 364 2,033 294 644 2,365 26,220 6,463 32,962 .1973—Jan. 64,564 382 2,956 302 645 2,482 25,432 6,031 31,742 ............Feb. 65,072 384 3,598 338 666 2,530 25,848 5,856 31,973 ............Mar. 66,068 414 3,471 275 666 2,622 26,281 5,824 32,277 ............Apr. 66.726 413 4,121 330 652 2,721 26,214 6,007 32,393 ............May 67.609 386 2,408 266 698 2,732 25,776 6,086 32.028 ............June 68,382 346 3,375 341 782 2,846 27,134 6,278 33,524 ............July p Week ending— 66,133 419 4,084 313 660 2,703 26,380 5,952 32,504 .1973—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 4,097 343 654 2,717 26,591 5,539 32.302 .......................23 66,890 402 3,564 321 666 2,787 26,012 6,042 32,226 ......................30 67,220 398 3,026 264 656 2,882 25,906 6.140 32,218 .June 6 67,734 388 1,401 253 663 2,641 25,195 6,230 31,597 ......... 13 67,760 385 1,653 246 768 2,659 26,238 5,892 32.302 ..........20 67,580 381 3,062 277 693 2,732 26,032 6,020 32,224 ...........27 68,048 373 3,614 308 740 2,850 26,989 6,227 33,328 .July 4 68,662 366 3,978 284 729 2,972 25,930 6,465 32,507 ..........11 68,613 344 3,224 281 817 2,730 27,388 6,177 33,677 ..........18 p 68,267 331 3,168 405 5 780 2,780 27,557 6.140 33,809 ..........25 p End of month 67,161 394 3,243 289 692 2,839 24,892 6,140 31,204 .1973—May 67,771 369 4,039 334 717 2,783 24,818 6,227 31,157 ...........June 68,209 332 2,865 280 821 3,005 28,338 6,373 34,823 ............July p Wednesday 66,359 428 4,414 342 666 2,754 26,368 5,952 32,492 . 1973—May 2 66.872 428 4,685 352 631 2,533 27,486 6,180 33.838 ...................... 9 67,003 414 4,925 333 644 2,708 27,631 6,263 34,066 .....................16 66.872 419 3,984 290 613 2,752 27,236 5,539 32,947 ......................23 67,272 411 3,932 290 669 2,783 23,947 6,042 30,161 .....................30 67,654 397 1,324 253 642 2,896 27,306 6.140 33,618 .June 6 67,969 396 1,522 261 624 2,600 24,255 6,230 30,657 .........13 67,821 385 2,063 274 659 2,696 28,017 5,892 34,081 ..........20 67,855 381 3,583 378 701 2,769 24,919 6,020 31,111 ..........27 68,509 375 3,161 252 743 2,920 29,177 6,227 35,516 .July 4 p 68,882 365 4,241 269 689 2,620 24,262 6,464 30.838 ..........11* 68,637 343 3,005 257 782 2,737 28,217 6,177 34,506 ..........18* 68,262 330 3,032 277 ! 766 2,803 27,537 6.140 33,789 ..........25* 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; 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; Q3, $112 million. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 8 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. 7 Beginning with week ending Nov. 15, 1972, includes $450 million of 9 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 □ AUGUST 1973 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) All member banks Large banks 2 Reserves Borrowings ork City City of Chicago Other Re- Excess1 Total Sea­ Excess Borrow­ Excess Borrow­ Excess rrowquired sonal ings ings ngs 6,462 5,011 3 2,611 540 1,188 3 9,422 3,390 5 989 295 1,303 4 14.536 1,491 334 48 192 14 418 46 16,364 1,027 142 125 58 8 5 232 29 18,527 756 87 29 19 4 8 100 40 22,267 452 454 41 111 15 23 67 92 24,915 345 238 18 40 8 13 50 80 26,766 455 765 100 230 15 85 90 180 27,774 257 1,086 56 259 18 27 6 321 28,993 272 321 34 25 7 4 42 28 31,164 165 107 25 35 1 8 -35 42 32,874 147 202 32 15 8 6 -41 117 32,893 255 438 6 116 10 11 72 177 32,841 162 514 29 136 -1 12 -2 171 33,556 247 574 61 59 22 45 24 230 31,460 314 606 4 64 -14 19 -1 275 31,134 219 1,049 -20 301 13 55 -42 264 32,620 342 1,165 95 193 2 108 -33 286 31.537 205 1,593 -13 324 105 -33 471 31,678 295 1,858 72 176 -6 102 7 723 32,125 152 1,721 5 38 146 8 9 -111 738 32,275 118 1,786 30 -35 110 6 12 -65 783 31,969 59 1,789 77 -62 145 -4 28 -78 712 33,202 322 2,051 124 125 135 17 67 -13 995 32,815 328 312 74 42 25 78 144 32,524 223 227 23 -1 13 149 33,148 147 173 -25 -11 -11 109 32,961 79 172 -1 26 12 26 -66 87 32,044 560 1,751 149 713 10 279 83 234 32,380 126 688 -21 66 -10 19 -107 183 33,668 341 1,298 46 201 17 189 -24 273 32,545 -34 1,097 -82 260 -26 19 -165 307 32,103 453 1,309 204 15 110 -10 393 31,687 147 1,232 -78 221 -7 16 -23 411 31,625 188 1,991 -1 709 17 178 -75 440 31,537 505 1,672 156 155 11 104 47 485 31,300 -14 1,482 -128 211 —21 121 - 4 551 31,717 341 1,688 92 242 43 99 -58 652 31,532 23 1,491 -48 178 -25 113 -112 577 31,713 249 2,139 56 225 3 104 -3 733 31,578 93 2,013 -46 28 1 130 -66 904 32,082 537 1,754 169 144 18 8 99 737 31,845 -86 1,502 -184 24 -14 13 -90 690 32,390 234 1,845 146 306 2 2 -104 696 32,062 336 1,646 80 45 20 18 11 788 32.271 233 1,875 16 56 222 19 6 -63 779 32,327 -81 1,484 18 -75 182 -50 33 -137 689 32,600 363 1,814 23 49 123 42 9 6 689 32,178 124 1,689 32 33 30 -27 -49 844 32,060 166 2.401 46 7 144 27 11 -89 963 31,817 401 1,664 64 62 200 34 47 728 31,595 2 1,700 67 -78 31 -1 18 -102 698 32,121 181 1,930 71 92 262 -24 9 -113 694 32,000 224 1,848 93 -42 107 -7 60 713 32,697 631 2.402 111 190 454 57 195 103 836 32,527 -20 1,680 117 -131 115 -51 28 -52 778 33.272 405 1,722 117 230 -25 13 7 856 33,793 16 2,080 128 -146 50 58 24 -42 164 tov. 15, 1972, includes $450 million of parallel the previous “Reserve city” and “Cou ively Banks are allowed to waive penalties (hence the series are continuous over time). 1 with bank adaptation to Regulation J Beginning 1973, allowable deficiencies Note.—Monthly and weekly data are avei ithin statement week of quarter): Ql, $279 the month or week, respectively. Beginning s are I million. estimated except for weekly averages. nation of banks as reserve city banks Borrowings at F.R. Banks: Based on closing has been based on size of bank (net Effective Apr. 19, 1973, the Board’s Reguk end- O million), as described in the Bulletin ing by Federal Reserve Banks, was revised to i lown here as “Large” and “All other” to meet the seasonal borrowing needs of theii Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ MAJOR RESERVE CITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less— Net- Gross transactions Net transactions Reporting banks and Total Bor­ week ending— s E e x r r v c e e e ­ s s s 1 r a o t B w F o in . r R ­ g . s F i b e n N d a t n e e e r r t k a ­ l S d u e r o f p i r c l i u t s r P e e q a r u o v c i g f r e . e n d t c P ha u s r e ­ s Sales t a w c tr o t a i - o n w n s a ­ s y 2 b c o P u h f y a u n i s r n e e ­ t s g s b o S e a f l a l n l n 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 i a r n o o l w g e m s r ­ s4 lo N a e n t s Banks funds reserves banks trans. Total—46 banks June 6........... 281 31 8,555 -8,705 62.6 14,219 5,664 4,128 10,090 1,536 1,455 386 1,068 13......... 38 396 10,653 -11,011 79.8 16,693 5,041 4,283 11,411 758 2,399 400 1,999 20......... 55 676 9,835 -10,456 73.9 15,351 5,516 4,475 10,894 1,059 2,055 403 1,652 27......... 22 480 9,015 -9,473 68.2 14,335 5,320 4,323 10,012 998 1,565 349 1,217 July 4........... 206 991 8,123 -8,908 62.1 14,551 6,428 4,858 9,693 1,570 1,600 819 781 11......... -24 300 9,802 -10,127 71.0 15,570 5,768 4,555 11,015 1,213 1,523 511 1,013 18......... 203 403 8,652 -8,852 59.7 14,968 6,316 4,389 10,580 1,928 1,299 558 741 25......... 63 284 7,330 -7,551 50.7 14,823 7,493 4,719 10,104 2,773 1,309 483 826 8 in New York City June 6........... 78 171 3,840 -2,934 52.9 4,176 1,336 1,100 3,076 236 939 288 651 13......... -18 18 4,146 -4,181 76.5 5,079 933 860 4,219 73 1,455 349 1,106 20......... 70 262 3,683 -3,875 67.4 5,132 1,449 1,273 3,859 176 1,081 356 725 27......... -18 99 2,816 -2,932 53.2 3,981 1,165 1,053 2,928 112 960 259 701 July 4........... 164 387 2,548 -2,771 47.6 3,943 1,395 1,140 2,803 255 995 226 769 11......... -47 115 2,697 -2,860 49.8 4,288 1,591 1,314 2,974 277 833 289 544 18......... 166 2,368 -2,202 36.6 4,402 2,034 1,285 3,117 749 631 271 360 25......... -20 29 2,326 -2,374 39.2 4,669 2,343 1,253 3,416 1,090 636 264 373 38 outside New York City June 6........... 203 260 5,715 -5,772 69.0 10,042 4,328 3,028 7,014 1,300 515 98 418 13......... 55 378 6,507 -6,829 82.1 10,614 4,107 3,422 7,192 685 944 51 893 20......... -15 414 6,152 -6,581 78.3 10,219 4,067 3,184 7,035 883 973 47 927 2 7 39 381 6,199 -6,541 78.1 10,354 4,155 3,270 7,084 ' 885 605 90 515 July 4........... 42 604 5,575 -6,137 71.9 10,607 5,033 3,718 6,890 1,315 605 593 12 11......... 23 185 7,105 -7,267 85.3 11,282 4,177 3,241 8,041 936 691 222 469 2 8 36 403 6,284 -6,651 75.5 10,567 4,283 3,104 7,463 1,179 668 287 381 25......... 83 255 5,004 -5,176 58.5 10,154 5,150 3,466 6,688 1,683 672 219 453 5 in City of Chicago June 6........... 52 36 1,961 -1,945 132.2 2,651 690 606 2,045 85 258 6 252 13......... 20 6 2,444 -2,429 168.0 3,113 670 670 2,444 254 254 20......... 7 2,313 -2,306 155.2 3,032 719 709 2,323 11 265 265 27......... -18 2,264 -2,282 155.8 2,949 685 590 2,359 95 332 30 302 July 4........... 24 188 1,899 -2,063 134.2 2,623 724 698 1,925 26 310 30 279 11......... 2 14 2,376 -2,389 159.7 3,176 800 746 2,430 54 401 80 321 18......... -24 2,306 -2,329 141.3 3,245 939 875 2,370 64 438 30 408 25......... 51 1,885 -1,835 113.1 2,984 1,099 982 2,002 117 435 17 418 33 others June 6........... 151 224 3,754 -3,827 55.5 7,392 3,638 2,423 4,969 1,215 257 92 166 13......... 35 372 4,063 -4,400 64.0 7,501 3,438 2,753 4,748 685 691 51 640 20......... -21 414 3,840 -4,275 61.7 7,187 3,347 2,476 4,712 872 709 47 662 27......... 57 381 3,935 -4,259 61.7 7,405 3,470 2,680 4,725 790 273 60 213 July 4........... 18 416 3,675 -4,074 58.3 7,984 4,309 3,020 4,965 1,289 296 563 -267 11......... 21 171 4,729 -4,878 69.4 8,106 3,378 2,495 5,611 882 290 142 148 18......... 60 403 3,978 -4,321 60.3 7,322 3,343 2,229 5,093 1,115 229 257 -27 25......... 32 255 3,119 -3,341 46.3 7,170 4,051 2,484 4,686 1,567 231 202 35 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 □ AUGUST 1973 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under Under Secs. 13 and 13a i Under Sec. 10(b) 2 last par. Sec. 13 3 Federal Reserve Bank R Ju a 1 l t 9 y e 7 3 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t i e ous R Ju a 1 l t 9 y e 7 3 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t io e us R Ju a 19 t ly e 7 3 3 o 1 n , Eff d e a c t t e ive Pre ra vi t o e us Boston............ July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 8V4 New York.... July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 m Philadelphia.. July 2, 1973 6!ft 71/2 July 2, 1973 July 2, 1973 8Vi Cleveland.... July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 8V4 Richmond___ July 2, 1973 6 % 71/2 July 2, 1973 July 2, 1973 8*4 Atlanta........... July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 81/2 Chicago.......... July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 81/2 St. Louis........ July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 8V4 Minneapolis. . July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 81/2 Kansas City.. July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 8i/i Dallas............. July 2, 1973 61/2 71/2 July 2, 1973 July 2, 1973 8V4 San Francisco July 2, 1973 61/2 m July 2, 1973 July 2, 1973 81/4 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 * 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 7 per cent 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 lev^l)— 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, IV2 1*4 1959—Mar. 6 21/2-3 3 1969—Apr. 4..................... 51/2-6 6 16 3 3 8..................... 6 6 1955—Apr. 14............. IV2-IV4 H/2 May 29 3 -31/2 31/2 1970—Nov. 11..................... 534-6 6 15............. 1*4-1% 13/4 June 12 31/2 31/2 13..................... 534-6 534 May 2............. IV4 13/4 Sept. 11 31/2-4 4 16..................... 534 53/4 S A e u p g t . . 1 9 5 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 l 3 34 4 - - - - 2 2 2 2 * 1 * V 4 4 4 4 2 2 2 1 1 3 4 4 1960—June 1 1 0 8 3 3 3 1 1 / / 4 2 2 - - 4 4 4 4 31/2 Dec. 1 4 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1 V / 5 2 4 % - - 5 5 3 3 4 4 5 5 5 1 i 3 / / 4 4 2 13............. 21/4 214 14 31/2 31/2 1971—Jan. 514-5 V4 51/4 Nov. 18............. 21^-21/2 2% Aug. 12 3 -3i/2 3 15..................... 514 51/4 23............. 21/2 21/2 Sept. 9 3 3 19..................... 5 -514 514 22..................... 5 -514 5 1956—Apr. 13............. 21/2-3 234 1963—July 17 3 -31/2 31/2 29..................... 5 5 20............. 234-3 23/4 26 31/2 31/2 Feb. 13..................... 434-5 5 Aug. 24............. 23/4-3 3 434 434 31............. 3 3 1964—Nov. 24, 31/2-4 4 July 434-5 5 30 4 4 5 5 1957—Aug. 9............. 3 -31/2 3 Nov. 11..................... 434-5 5 2 3 31/2 31/2 1965—Dec. 6 4 -41/2 41/2 434 434 Nov. 15............. 3 -3% 3 13, 41/2 41/2 Dec. 13..................... 41/4-434 434 Dec. 2............. 3 41/2-43/4 4i/4 1967—Apr. 7 4 -41/2 4 41/4 414 1958—J M a a n r . . 2 2 2 1 7 2 1 3 . . 4 . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . .. . . . . . . . 2 2 2 21 3 3 1 / 2 4 4 4 4 1 - - - - /4 3 3 3 234 2 2 2 2 3 1 1 1 3 / / / 4 4 4 4 1968— N M o a v r . . 2 2 1 1 7 5 0 4 , , 4 4 1 / 4 4 2 1 - - 4 / 5 2 1/2 4 4 4 4 1 1 1 / / / 2 2 4 1973—J A M F M a e p a n a b r r . y . . . 1 2 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 V 5 5 5 i 1 3 - - 5 / / 5 4 2 1 3 / 4 2 5 5 5 5 5 1 1 V 3 / / 4 4 4 4 Apr. 18............. 13/4-21/4 134 22 5 5 534-6 6 May 9............. 13/4 134 Apr. 19 5 -51/2 51/2 6 6 S A O e u c p t g t . . . 2 2 1 1 5 3 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 3 3 2 4 4 - - - 2 2 21/2 2 2 2 134 A D u ec g . . 2 3 1 1 6 0 6 8 5 5 1 1/ 4 5 5 4 1 1 - - 5 / / 5 2 4 1 1 / / 2 2 5 5 5 5 1 1 1 1 / / / 4 2 2 2 J J u u n ly e 6 6 7 1 - / 6 2 1/2 6 6 7 1 1 / / 2 2 Nov. 7............. 21/2 21/2 20 51/2 51/2 In effect July 31,1973.......... 7 7 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

AUGUST 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 5 6 In effect 1972—Nov. 9.. 10 12 716i/2 171/2 83 Jan. 1,1963. ... I6I/2 12 Nov. 16. 13 1966—July 14, 21 . 1973—July 19.. IOI/2 121/2 131/2 Sept. 8, 15. 1967—Mar. 2.... 31/2 31/2 In effect Mar. 16.... 3 3 July 31, 1973.. IOI/2 121/2 131/2 1968—Jan. 11, 18. 161/z 17 12 121/2 1969—Apr. 17.... 17 171/2 121/2 13 1970—Oct. 1......... Present legal requirement: Minimum Maximum 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 net demand deposits of more than $400 million is considered to have the city banks and the second to the change at country banks. For changes character of business of a reserve city bank, and the presence of the head prior to 1963 see Board’s Annual Reports. office of such a bank constitutes designation of that place as a reserve 2 (a) Demand deposits subject to reserve requirements are gross de­ city. Cities in which there are F.R. Banks or branches are also mand deposits minus cash items in process of collection and demand reserve cities. Any banks having net demand deposits of $400 million or balances due from domestic banks. less are considered to have the character of business of banks outside of (b) Requirement schedules are graduated, and each deposit interval reserve cities and are permitted to maintain reserves at ratios set for banks applies to that part of the deposits of each bank. not in reserve cities. For details, see Regulation D and appropriate sup­ (c) Since Oct. 16, 1969, member banks have been required under plements and amendments. Regulation M to maintain reserves against foreign branch deposits com­ 5 Reserve city banks. puted on the basis of net balances due from domestic offices to their foreign 6 Effective June 21, 1973, member banks became subject to an 8 percent branches above a specified base and against foreign branch loans to U.S. marginal reserve requirement against increases in the aggregate of (a) out­ residents, which until June 21,1973, were also maintained above a specified standing single-maturity time deposits of $100,000 and over and (b) out­ base. The reserve-free base relating to net balances due from domestic standing funds obtained by the bank through issuance by a bank’s affiliate banks to foreign branches is being reduced gradually beginning July 5, of obligations subject to the existing reserve requirement on time deposits; 1973, and will be eliminated by April 1974. The applicable reserve per­ and, effective beginning July 12, 1973, on funds from sales of finance centage, originally 10 per cent, was increased to 20 per cent on Jan. 7, 1971, bills. The 8 per cent requirement applies to balances above a specified and effective June 21, 1973, was reduced to 8 per cent. Regulation D im­ base, but is not applicable to banks that have obligations of these types poses a similar reserve requirement on borrowings above a specified base aggregating less than $10 million. For details, see amendments to Regu­ from foreign banks by domestic offices of a member bank. The reserve-free lation D under “Bank Credit Actions” beginning on p. 375 of the May base related to this type of borrowings is being reduced gradually and will 1973 Bulletin. be eliminated by April 1974. For details, see Regulations D and M and 7 The 16V^ per cent requirement applied for one week, only to former appropriate supplements and amendments thereto. reserve city banks. For other banks, the 13 per cent requirement was 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation continued in this deposit interval. club accounts became subject to same requirements as savings deposits. 8 See preceding columns for earliest effective date of this rate. For other notes see 2(b) and 2(c) above. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re­ Note.—All required reserves were held on deposit with F.R. Banks serve cities, and on the same date requirements for reserves against net June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member demand deposits of member banks were restructured to provide that each banks were allowed to count part of their currency and coin as reserves; member bank will maintain reserves related to the size of its net demand effective Nov. 24, 1960, they were allowed to count all as reserves. For deposits. The new reserve city designations are as follows: A bank having further details, see Board’s Annual Reports. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ AUGUST 1973 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) July 20, Sept. 26, Apr. 19, Jan. 21, June 24, May 16, July 1, Type of deposit 1966 1966 1968 1970 1970 1973 1973 Savings deposits............................................................................. 4% 4 Vt 4Vi Other time deposits:1 Multiple maturity:2 30-89 days.......................................................................... 4 Vi 4 Vi 4Vi 5 90 days-1 year................................................................... 5 5 5 5 Vi 1 year to— 2 years................................................................................. 5Vz 5 Vi 5 Vi 2 Vi years.............................................................................. 2 years and over................................................................. ’s% 5V4 'sy4' 2Vi years and over............................................................. 6Vi 4 years and over (minimum denomination oi $1,000)., (3) Single maturity: Less than $100,000: 30^89 days.......................................................................... 5 Vi 5 5 5 90 days-1 year................................................................... 5Vi 5 5 5 1 year to— 2 years.................................................................................. 5Vi 5 Vi 5Vi 5 Vi 2 Vi years.............................................................................. 2 years and over................................................................. 5Vi ‘534’ '5%‘ ’53/4* 2Vi years and over............................................................. 6*4 4 years and over (minimum denomination oi $1,000). (3) $100,000 and over: 30-59 days.......................................................................... 5 Vi 5 Vi 5Vi 6V4 (4) 60-89 days.......................................................................... 5 Vi 5 Vi sy4 6 Vi (4) 90-179 days......................................................................... 5 Vi 51/2 6 6% 6V4 (4) 180 days-1 year................................................................. 5 Vi 5Vi 6V4 7 7 (4) 1 year or more................................................................... 51/2 51/2 6V4 71/2 7Vi (4) 1 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member banks are estab­ Bulletin for Feb. 1968, p. 167. lished by the Board of Governors under provisions of Regulation Q; 2 Multiple-maturity time deposits include deposits that are automati­ however, a member bank may not pay a rate in excess of the maximum cally renewable at maturity without action by the depositor and deposits rate payable by State banks or trust companies on like deposits under that are payable after written notice of withdrawal. the laws of the State in which the member bank is located. Beginning 3 No ceiling for certificates with minimum denomination of $1,000. Feb. 1, 1936, maximum rates that may be paid by nonmember insured Amount of such certificates that a bank may issue is limited to 5 per cent commercial banks, as established by the FDIC, have been the same as of its total time and savings deposits. Any sales in excess of that amount those in effect for member banks. are subject to the 6Vi per cent ceiling that applies to time deposits ma­ For previous changes, see earlier issues of the Bulletin. turing in 2 Vi years or more. 4 Suspended as of this date. 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) U 1937—Nov. 1 1945—Feb. 4. 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31. 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 16, 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 20 1955—Jan. 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 1958—Jan. 70 70 1958—Jan. 16 Aug. 4. 50 50 Aug. 5 Oct. 70 70 Oct. 16 1960—July 90 90 1960—July 28 1962—July 9. 70 70 1962—July 10 1963—Nov. 5. 50 50 1963—Nov. 6 1968—Mar. 10, 70 70 1968—Mar. 11 June 7. 70 50 70 June 8 1970—May 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

AUGUST 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 p h 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 i e u f r m t r s i p , ty ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o u i c r f r h ts i . ty tions 1972—June............. 1,294 335 96 1,094 335 6 2 -90 69 July.............. 2,753 3,286 2,753 3,286 Aug.............. 1,390 1,752 432 1,274 1,752 432 -1,089 79 673 Sept.............. 9,369 8,673 850 9,369 8,673 850 Oct............... 2,795 2,425 150 2,678 2,425 150 42 35 Nov.............. 2,638 2,880 351 2,638 2,880 300 360 -411 Dec............... 5,083 4,640 135 5,083 4,640 -135 1973—jan................ 3,060 1,735 3,060 1,735 Feb............... 6,275 5,216 200 6,079 5,216 200 25 — i,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 May............. 1,822 1,728 600 1,822 1 ,728 600 1,316 -1,316 June............. 5,904 4,848 163 5,677 4,848 163 17 123 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal agency acceptances (U.S. Govt. Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net Govt. repur­ change1 c G 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 h p r a u o s r s e ­ s s G sa r l o e s s s se it c i u es r­ 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 a c g h n e r a n e e s t t e e s ­ , I 1972—June. 109 20 211 1,326 -251 127 -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 4,765 405 134 13 7 36 596 1973—Jan 9,719 2,181,9628 48 11 23 2,197 -2,068 32 2,7F74eb.. 3,07394 599 -18 -28 -3 95 644 Mar 6,024 15,6,45768 -14 61 -1 -66 1,636 Apr.. 19 11 5,664 5,978 1,218 — 19 — 65 7 — 36 1,106 May ...............i 7,379 8,240 -1,367 -21 -29 -1 -52 -1,470 June. 37 78 51 -78 5,621 5,621 893 210 -17 1,085 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System holdbankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d io o d f Total s P t o e u rl n in d g s s A 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 is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i t l n d h d e e s r r s ­ f S r w an is c s s 1969—Dec.............. 1,967 1,575 1 * 199 60 125 1 3 1970—Dec............... 257 154 * * 98 1 * 1971—Dec............... 18 3 3 * 2 1 1972—Apr............... 17 3 3 * 2 1 May............. 57 3 * * 2 1 50 June............. 18 2 * * 9 1 5 July.............. 7 1 * * 1 1 7 Aug.............. 34 * 1 * 24 1 3 Sept.............. 122 * * * 85 1 35 Oct............... 211 * 8 * 164 1 16 21 Nov............. 200 * 8 * 164 1 20 7 Dec............... 192 * * * 164 1 20 6 1973—Jan................ 92 * * * 67 1 20 Feb............... 4 * * * * 1 Mar.............. 4 * * * * 1 Apr............... 4 * * * * 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ AUGUST 1973 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1973 1973 1972 July 25 July 18 July 11 July 4 June 27 July 31 June 30 July 31 Assets Gold certificate account.................................... 10,303 10,303 10,303 10,303 10,303 10,303 10,303 10,303 Special Drawing Rights certificate account. 400 400 400 400 400 400 400 400 Cash........................................................... 305 298 294 292 299 307 305 324 Loans: Member bank borrowings............... 2,025 1,674 2,302 2,999 1,584 2,224 1,770 83 Other..................................................... Acceptances: .........51 ........si' .........57' .......61 .......61 ........54’ .......66 ........63 Bought outright.................................. Held under repurchase agreements. 34 16 107 78 Federal agency obligations: Bought outright................................... 1,617 1,449 1,449 1,449 1,449 1,617 1,449 1,079 Held under repurchase agreements. 52 207 399 106 U.S. Govt, securities: Bought outright: Bills.............................. 34,172 34,526 31,922 34,563 33,869 35,331 34,247 30,724 Certificates—Special. Other.. Notes........................... 37,138 37,138 37,138 37,111 36,936 37,138 37,111 36,596 Bonds.......................... 3,664 3,664 3,664 3,664 3,611 3,664 3,664 3,502 Total bought outright.......................... 1,274,974 175,328 1,272,724 175,338 1,274,416 176,133 175,022 170,822 Held under repurchase agreements.. 234 377 1,962 965 Total U.S. Govt, securities. 75,208 75,705 72,724 77,300 74,416 77,098 75,022 70,822 Total loans and securities.................... 78,987 79,102 76,532 82,321 77,516 81,177 78, 307 72,047 Cash items in process of collection. . . *9,029 *10,815 *10,210 *9,026 8,548 *8,172 7,319 9,968 Bank premises......................................... 207 207 207 205 202 207 204 164 Other assets: Denominated in foreign currencies. 4 4 4 4 4 4 4 7 All other............................................... 1,061 999 954 856 875 1,096 927 1,097 Total assets. *100,296 p102,128 *98,904 *103,407 98,147 *101,666 97,769 94,310 Liabilities F.R. notes.............................................. 60,247 60,634 60,897 60,531 59,893 60,200 59,807 54,897 Deposits: Member bank reserves.................... *27,537 *28,217 *24,262 *29,177 24,919 *28,338 24,818 26,185 U.S. Treasurer—General account. 3,032 3,005 4,241 3.161 3,583 2,866 4,039 2,298 Foreign............................................... 277 257 269 252 378 280 334 160 Other: All other........................................ 3 766 782 689 743 701 3 820 717 620 Total deposits. *31,612 *32,261 *29,461 *33,333 29,581 *32,304 29,908 29,263 Deferred availability cash items............ 5,634 6,496 5,926 6,623 5,904 6,157 5,271 7,744 Other liabilities and accrued dividends. 847 841 887 818 968 799 577 Total liabilities. *98,340 *100,259 *97,125 *101,374 96,196 *99,629 95,785 92,481 Capital accounts Capital paid in................................................................... 822 822 822 821 820 824 820 775 Surplus................................................................................. 793 793 793 793 793 793 793 742 Other capital accounts..................................................... 341 254 164 419 338 420 371 312 Total liabilities and capital accounts............................ *100,296 *102,128 *98,904 *103,407 98,147 *101,666 97,769 94,310 Contingent liability on acceptances purchased for foreign correspondents................................................. 498 488 451 425 398 496 395 263 Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 29,264 28,975 28,680 29,076 29,794 29,026 29,278 29,804 Federal Reserve Notes—Federal Reserve Agents’ Accounts 64,214 64,291 64,110 63,727 63,476 64,257 63,653 58,917 Collateral held against notes outstanding: Gold certificate account................................................ 2,295 2,195 2,195 2,155 2,155 2,295 2,155 1,945 U.S. Govt, securities....................................................... 63,375 63,275 63,025 62,845 62,475 63,375 62,645 58,055 65,670 65,470 65,220 65,000 64,630 65,670 64,800 60,000 1 See note 8 on p. A-5. 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JULY 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........................ 10,303 463 2,307 842 1,067 886 536 1,543 461 166 261 426 1,345 Special Drawing Rights certificate account.................................................. 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks..................... 1,162 128 195 61 52 106 204 73 38 30 44 71 160 Other cash................................................ 307 15 22 4 33 35 40 36 21 5 39 14 43 Loans: Secured by U.S. Govt, and agency obligations...................................... 2,112 132 145 47 100 267 140 655 116 47 153 165 145 Other................................................... 112 18 81 13 Acceptances: Bought outright................................ 54 54 Held under repurchase agreements. 78 78 Federal agency obligations: Bought outright................................. 1,617 72 429 87 119 115 85 256 59 33 68 72 222 Held under repurchase agreements. 106 106 U.S. Govt, securities: Bought outright................................ 176,133 3,398 20,183 4,120 5,601 5,417 3,991 12,067 2,774 1,560 3,181 3,380 10,461 Held under repurchase agreements. 965 965 Total loans and securities................... 81,177 3,620 22,041 4,254 5,820 5,799 4,229 12,978 2,949 1,640 3,402 3,617 10,828 Cash items in process of collection.. 9,626 348 2,171 500 492 1,070 984 1,149 355 419 685 504 949 Bank premises........................................ 207 35 7 7 27 14 15 17 14 34 17 12 8 Other assets: Denominated in foreign currencies. 4 22 1 1 All other............................................. 1,096 69 276 56 76 76 62 159 36 25 43 60 158 Total assets. 104,282 4,701 27,114 5,747 7,600 8,022 6,092 16,026 3,889 2,326 4,506 4,718 13,541 Liabilities F.R. notes................................................ 61,362 3,156 15,279 3,816 4,860 5,434 3,172 10,227 2,419 1,109 2,419 2,349 7,122 Deposits: Member bank reserves....................... 28,338 795 8,796 1,108 1,643 1,350 1,665 3,962 817 625 1,116 1,564 4,897 U.S. Treasurer—General account.. 2,866 279 249 263 283 229 191 268 237 122 247 228 270 Foreign.................................................. 280 12 373 14 25 15 20 44 9 6 12 15 35 Other: All other5......................................... 820 676 26 3 22 10 40 4 3 7 5 24 Total deposits. 32,304 1,086 9,794 1,411 1,954 1,616 1,886 4,314 1,067 756 1,382 1,812 5,226 Deferred availability cash items.......... 7,611 334 1,217 370 545 792 843 1,025 301 393 585 412 794 Other liabilities and accrued dividends 968 41 296 47 66 62 52 138 32 22 38 39 135 Total liabilities....................... 102,245 4,617 26,586 5,644 7,425 7,904 5,953 15,704 3,819 2,280 4,424 4,612 13,277 Capital accounts Capital paid in............... 824 33 209 41 74 45 60 130 28 19 34 45 106 Surplus............................. 793 34 207 39 72 42 55 124 27 18 33 43 99 Other capital accounts. 420 17 112 23 29 31 24 68 15 9 15 18 59 Total liabilities and capital accounts.. 104,282 4,701 27,114 5,747 7,600 8,022 6,092 16,026 3,889 2,326 4,506 4,718 13,541 Contingent liability on acceptances purchased for foreign correspond­ ents......................................................... 496 21 4128 24 45 26 35 78 17 12 21 27 62 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank)................................................ 64,257 3,323 16,034 3,896 5,056 5,655 3,437 10,491 2,570 1,165 2,541 2,509 7,580 Collateral held against notes out­ standing: Gold certificate account.................... 2,295 180 350 350 555 700 155 5 U.S. Govt, securities.......................... 63,375 3,160 16,250 3,700 4,850 5,155 3,600 9,900 2,480 1,200 2,600 2,580 7,900 Total collateral. 65,670 3,340 16,250 4,050 5,200 5,710 3,600 10,600 2,635 1,200 2,600 2,585 7,900 1 See note 8 on p. A-5. 4 After deducting $368 million participations of other Federal Reserve 2 After deducting $2 million participations of other Federal Reserve Banks. Banks. 5 See note 5 on p. A-4. 3 After deducting $207 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 □ AUGUST 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 July 25 July 18 July 11 July 4 June 27 July 31 June 30 July 31 Loans—Total............. 2,025 1,679 2,302 2,999 1,587 2,224 1,771 83 Within 15 days.... 1,959 1,599 2,209 2,916 1,547 2,160 1,689 81 16 days to 90 days. 66 80 93 83 40 64 82 2 91 days to 1 year.. Acceptances—Total.. 85 67 57 174 67 132 66 63 Within 15 days.... 50 31 19 132 19 94 18 17 16 days to 90 days. 35 36 38 42 48 38 48 46 91 days to 1 year.. U.S. Government securities--Total. 75,208 75,705 72,724 77,300 74,416 77,098 75,022 70,822 Within 15 daysi................. 5,433 5,833 2,308 6,844 4,969 4,874 3,832 4,209 16 days to 90 days............. 17,860 17,355 17,904 18,120 18,165 19,291 19,662 15,726 91 days to 1 year............... 13,973 14,575 14,570 14,420 13,578 14,991 13,612 19,617 Over 1 year to 5 years___ 26,982 26,982 26,982 26,956 26,832 26,982 26,956 24,108 Over 5 years to 10 years.. 9,358 9,358 9,358 9,358 9,321 9,358 9,358 5,913 Over 10 years..................... 1,602 1,602 1,602 1,602 1,551 1,602 1,602 1,249 Federal agency obligations—Total. 1,669 1,656 1,449 1,848 1,449 1,723 1,449 1,079 Within 15 days1.............................. 54 215 6 399 108 38 16 days to 90 days.......................... 52 48 50 56 56 52 56 99 91 days to 1 year............................ 373 331 331 331 332 373 332 146 Over 1 year to 5 years................... 630 562 562 562 562 630 561 475 Over 5 years to 10 years............... 308 284 284 284 284 308 284 197 Over 10 years.................................. 252 216 216 216 215 252 216 124 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1972—June................................ 13,280.5 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................................... 15,472.8 6,855.4 3,653.7 8,617.4 4,963.8 94.0 224.0 98.5 64.3 51.2 Feb.................................. 16,049.0 7,227.0 3,788.3 8,822.0 5,033.7 97.8 238.0 102.6 65.9 51.9 Mar................................. 15,932.1 6,844.8 3,856.6 9,087.3 5,230.7 96.9 228.3 104.0 67.6 53.7 Apr................................. 16,000.3 6,297.5 3.873.7 9,072.8 5,199.1 95.9 228.9 102.3 66.4 52.7 May................................ 16,433.2 7,177.0 3^907.8 9,256.2 5,348.4 97.7 235.1 103.4 67.2 53.5 June................................ 16,622.1 7,244.6 4.035.8 9,397.5 5,361.7 99.8 245.0 107.1 68.6 54.0 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

AUGUST 1973 □ U.S. CURRENCY A 15 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period i c n u c la ir ­ ­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939........................ 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941........................ 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 • 724 1,433 261 556 24 46 1945........................ 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947........................ 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950........................ 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955........................ 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1959........................ 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960........................ 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961........................ 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962........................ 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963........................ 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964........................ 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965........................ 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966........................ 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967........................ 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968........................ 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969........................ 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970........................ 57,093 39,639 6,281 2,310 136 3,16i 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—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 May........... 67,161 45,074 7,446 2,439 135 3,302 9,613 22,138 22,088 5,974 15,697 189 221 2 4 June........... 67,771 45,428 7,498 2,433 135 3,309 9,648 22,405 22,343 6,024 15,903 189 220 2 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin, overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 Total, out­ Held by standing, As security For F.R. 1973 1972 Kind of currency June 30, against Treasury F.R. Banks 1973 gold cash Banks and certificates and Agents June May June Agents 30 31 30 Gold........................................................................................ 10,410 (10,303) 107 Gold certificates........................................................... . (10,303) 2 10,302 1 Federal Reserve notes......................................................... 63,653 142 3,847 59,664 59,106 54,572 Treasury currency—Total.................................................. 8,531 119 305 8,107 8,056 7,629 Dollars................................................................................ 767 22 41 705 700 633 Fractional Coin................................................................. 7,152 95 264 6,793 6,746 6,383 United States notes......................................................... 323 3 320 320 320 In process of retirement3................................................ 289 289 289 292 Total—June 30, 1973......................................................... 4 82,595 (10.303) 369 10.302 4,153 67,771 May 31 1973.................................... 4 81,698 (10.303) 394 10.302 3,841 67,161 June 30,1972......................................................... 4 76,761 (10.303) 351 10.302 3,907 62,201 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 □ AUGUST 1973 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi m2 Mt 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—July.................................. 247.7 504.5 784.0 246.6 503.6 784.3 248.6 508.4 791.6 245.5 505.1 788.3 Sept.................................. 250.1 512.1 799.0 248.7 510.4 796.9 251.6 516.4 807.0 251.2 515.2 805.2 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.................................. 258.2 536.2 845.5 259.5 539.5 849.8 May................................. 260.5 540.6 "852.0 256.0 538.2 "850.1 June................................. "263.2 "545.3 859.1 261.3 "544.7 "859.7 July*............................... 264.6 548.0 863.7 263.4 547.1 863.9 Week ending— July 4......................... 264.5 547.4 263.7 547.7 11......................... 264.5 546.8 265.3 548.2 18*....................... 264.9 548.1 264.6 547.9 25*....................... 263.7 547.2 261.2 544.6 Aug. 1*....................... 263.9 549.1 261.0 546.1 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 M3: 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. bank bank depos­ 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—De c 46.1 162.7 10.9 183.5 194.4 201.7 46.9 167.9 11.1 182.1 193.2 201.4 5.6 1970—De c 49.1 172.2 25.3 203.9 229.2 216.1 50.0 177.8 25.8 202.3 228.1 215.6 7.3 1971—De c 52.6 183.4 33.0 237.9 270.9 253.8 53.5 189.2 33.8 236.0 269.8 253.2 6.9 1972—Jul y 54.6 193.1 38.3 256.8 295.0 279.6 55.1 191.5 37.0 257.0 294.0 280.6 7.3 Aug......... 54.8 193.8 39.1 259.8 298.9 283.2 55.1 190.5 39.9 259.6 299.5 283.2 5.3 Sept........ 55.3 194.8 39.8 262.0 301.9 286.9 55.2 193.5 41.0 261.7 302.7 286.5 5.9 Oct.......... 55.7 195.9 40.0 264.8 304.8 290.6 55.7 195.5 41.9 264.0 305.9 290.0 6.6 Nov........ 56.2 196.5 41.2 267.1 308.4 293.8 56.7 197.7 43.3 264.4 307.7 292.5 6.2 Dec......... 56.8 198.7 43.2 269.6 312.8 296.9 57.8 205.0 44.3 267.5 311.7 296.1 7.3 1973—Ja..............n 57.0 198.4 44.4 272.5 316.9 300.8 56.7 205.9 45.1 271.5 316.6 300.5 8.0 Feb......... 57.5 199.3 48.8 273.8 322.6 304.4 56.7 197.3 48.6 273.8 322.5 303.8 9.6 Mar........ 57.9 198.7 54.9 276.0 330.9 307.0 57.3 196.7 54.0 277.3 331.4 307.4 10.1 Apr......... 58.7 199.5 58.7 278.0 336.7 309.4 58.2 201.3 56.1 280.0 336.1 310.3 8.2 May. . . . 59.0 201.6 61.7 280.1 341.8 r311.4 58.7 197.3 58.8 282.2 340.9 "311.9 8.4 June 59.4 203.9 62.0 "282.0 r344.1 "313.9 59.4 "201.8 59.3 "283.4 "342.7 315.0 6.9 July*........ 59.4 205.1 64.4 283.4 347.8 315.7 59.9 203.5 62.3 283.6 345.9 316.8 6.4 Week ending— July 4. 59.5 205.0 63.1 283.0 346.1 59.8 203 s9 59.8 283.9 343.7 9.8 11* 59.4 205.0 63.9 282.4 346.3 60.5 204.9 60.7 282.9 343.6 6.4 18* 59.5 205.4 64.4 283.2 347.6 60.1 204.5 61.9 283.3 345.2 4.9 25* 59.4 204.3 65.4 283.4 348.8 59.6 201.6 63.8 283.4 347.2 6.1 Aug. 1* 59.3 204.6 65.1 285.2 350.3 59.3 201.6 64.5 285.1 349.6 6.0 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

AUGUST 1973 □ BANK RESERVES; BANK CREDIT A 17 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements 3 Total member bank deposits plus nondeposit S.A. N.S.A. items4 Period Non- Total bor- Re­ Avail­ Demand Demand rowed quired able2 Time Time Total sa a v n in d gs Private G U o .S vt . . Total sa a v n in d gs „P ri• va*t e GUo.Svt. S.A. N.S.A. 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—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... 32.33 30.17 32.08 29.86 421.1 261.8 153.4 5.8 422.3 260.5 154.9 r6.8 426.2 427.5 May.. 32.45 30.20 32.28 30.10 425.1 265.8 154.7 4.6 423.0 264.5 151.4 7.0 430.5 428.4 June.. r32.46 r30.80 32.21 r30.50 428.9 r267.4 r156.4 5.1 426.3 "265.9 ’•154.8 "5.7 434.5 "431.9 July*. 33.54 32.30 33.30 31.29 431.4 270.5 157.5 3.4 430.1 268.6 156.4 5.1 437.9 436.6 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 million effective Nov. 22. Note.—For description of revised series and for back data, see article 2 Reserves available to support private nonbank deposits are defined “Revision of the Money Stock Measures and Member Bank Reserves and 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 Total i loans Plus Treas­ Other3 ments 1 Total 1 loans Plus Treas­ Other3 sold2 Total loans ury sold2 Total loans ury sold 2 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—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. 28*___ 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*.... 594.6 416.1 419.8 147.2 149.4 59.7 118.7 590.8 414.7 418.3 146.7 148.9 57.6 118.5 June 30*.. . 596.6 417.8 421.3 148.9 151.1 60.8 118.0 601.3 425.3 428.9 151.9 154.1 57.1 118.9 July 25*.... 601.4 423.3 427.3 151.0 153.6 58.7 119.5 601.7 426.5 430.5 152.2 154.8 55.5 119.7 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 above 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 □ AUGUST 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 assets3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Times ury 2 counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,< )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 14,1 365 105! ,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--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. 31*.. 590,220 408,590 65,410116,220 96,560 715,670 588,860 29,250 3,890 10,390 227,580 317,750 42,730 52,280 13,939 Feb. 28*.. 597,890 420,210 61,330116,350 99,610 727,520 596,440 29,510 4,170 11.350 226,290 325,120 45,530 52,670 13,952 Mar 28*.. 605,040 427,320 60,730116,990 91,210 726,010 593,590 25,900 4,530 11.350 218,980 332,830 45,500 53,160 13,974 Apr. 25*.. 612,020 434,750 59,810117,460 91,880 734,480 600,420 26,140 4,880 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 47,480 53,850 14,018 June 27*.. 623,470 447,910 56,900118,660 90,980 746,370 606,700 26,570 5,490 10,090 223,730 340,820 48,810 54,250 14.044 July 25*.. 627,330 452,100 55,520119,710 96,130 755,090 612,350 28,580 5,750 6,680 225,630 345,710 52,410 54,380 14.044 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--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 44,214 42,096 5,703 June 27... 485,919 357,050 40,595 88,274 77,033 589,402 473,051 25,136 4,854 8,075 173,886 261,100 45,624 42,418 5.705 July 25*.. 489,273 360,813 39,331 89,129 82,091 597,640 478,417 27,121 5,121 5,423 175,351 265,401 48,761 42,539 5.705 Large member banks: New York City:8,9, 10 1941—Dec. 31 . . . 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945--Dec. 31... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947--Dec. 31... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966--Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967--Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968--Dec. 31... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969--Dec. 31 7. 60,333 48,305 5,048 6.980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970- -Dec. 31... 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971 —-Dec. 31... 63,342 48,714 5,597 9,031 22,663 91,461 71,723 13,825 1,186 1,513 30,943 24,256 5,195 7,285 12 1972—-July 26... 66,331 51,408 4,954 9,969 19,517 91,247 69,508 11,580 1,312 1,170 28,396 27,050 7,431 7,612 13 Aug. 30... 67,353 52,031 5,158 10,164 19,152 92,066 69,330 11,679 1,345 288 27,497 28,521 8,188 7,736 13 Sept. 27... 68,924 53,166 5,368 10,390 17,864 92,484 70,323 11,414 1,591 1,454 27,718 28,146 6,861 7,714 13 Oct. 25... 69,136 53,835 5,045 10,256 21,261 96,657 72,568 12,386 1,530 1,097 29,046 28,509 9,170 7,756 13 Nov. 29... 71,707 55,533 5,712 10,462 21,556 98,990 74,550 12,639 1,752 1,032 30,710 28,417 9,335 7,944 13 Dec. 31... 75,034 58,713 5,696 10,625 26,416 107,603 82,446 15,094 1,833 1,418 35,373 28,728 9,502 8,042 13 1973--Jan. 31... 73,744 58,304 5*439 10,001 23,203 102,923 77,213 13,919 1,574 1,257 31,292 29,171 10,142 8,074 13 Feb. 28... 75,727 61,629 4,463 9,635 23,059 105,571 79,567 14,040 1,708 1,506 30,533 31,780 10,321 8,142 13 Mar. 28... 76,368 62,584 4,498 9,286 20,133 103,402 77,435 11,744 1,951 1,789 29,032 32,919 9,938 8,047 13 Apr. 25... 76,834 63,395 4,254 9,185 19,710 103,622 77,295 11,935 2,229 1,732 29,068 32,331 9,891 8,093 13 May 30. . . 78,078 64,505 4,424 9,149 19,587 104,550 77,980 11,780 2,491 521 30,035 33,153 10,496 8,137 13 June 27... 79,227 65,510 4,343 9,374 18,785 105,071 76,945 12,104 2,672 1,174 28,336 32,659 11,586 8,174 13 July 25... 79,869 66,117 4,047 9,705 23,544 110,392 81,473 13,787 2,969 769 30,164 33,784 12,857 8,212 13 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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. 31............. 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1,535 21 257 6,542 6,171 682 1,433 9 1969—Dec. 31 7......... 14,365 10,771 1,564 2,030 2,802 17,927 13,264 1,677 15 175 6,770 4,626 1,290 1,517 9 1970—Dec. 31............. 15,745 11,214 2,105 2,427 3,074 19,892 15,041 1,930 49 282 6,663 6,117 1,851 1,586 9 1971—Dec. 31............. 17,133 12,285 1,782 3,067 3,011 21,214 16,651 1,693 168 364 6,896 7,530 1,935 1,682 9 1972—July 26............. 18,582 14,130 1,398 3,054 3,070 22,727 16,695 1,447 194 310 6,157 8,587 3,187 1,850 9 Aug. 30............. 19,20C 14,701 1,455 3,044 2,880 23,128 17,147 1,487 196 68 6,226 9,170 2,985 1,850 9 Sept. 27............. 19,270 14,582 1,545 3,143 3,135 23,479 17,812 1,406 224 374 6,435 9,373 2,768 1,859 9 Oct. 25............. 19,530 15,021 1,435 3,074 3,119 23,714 17,738 1,455 196 192 6,264 9,631 2,945 1,875 9 Nov. 29............. 20,370 15,379 1,597 3,394 2,659 24,042 18,021 1,262 217 213 6,565 9,764 3,137 1,855 9 Dec. 31............. 21,362 16,294 1,873 3,195 3,580 26,009 19,851 1,615 160 509 7,387 10,179 3,008 1,891 9 1973—Jan. 21,026 16,371 1,562 3,093 2,939 25,035 18,709 1,364 247 358 6,605 10,135 3,276 1,895 9 Feb. 28......... 21,983 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 1,47C 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 June 27............ 24,410 "19,666 1,462 "3,282 3,332 28,920 21,270 1,371 436 314 6,899 12,250 4,432 1,922 9 July 25............ 25,221 20,580 1,364 3,277 3,759 30,199 21,627 1,638 389 226 6,488 12,886 4,922 1,928 9 Other large member: 8,9 iQ4t—rw ........ 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6.418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31............. 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967—Dec. 30............. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............. 119,006 83,634 15,036 20,337 28.136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 7 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Dec. 31............. 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—Dec. 31............. 149,401 106,361 15,912 27,129 33,732 190,880 155,226 11,241 933 3,557 62,474 77,020 14,799 13,197 156 1972—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. 30............. 153,957 112,638 13,501 27,818 31,452 193,592 152,570 9,458 1,150 1,015 58,564 82,383 18,450 14,062 156 Sept. 27............. 156,822 115,352 13,692 27,778 31,640 196,672 156,023 9,509 1,285 3,512 58,956 82,761 17,816 14,132 157 Oct. 25............. 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. 28............. 172,681 129,991 13,615 29,075 29,634 211,358 165,250 8,355 1,283 3,761 60,676 91,175 22,182 14,819 156 Apr. 25............. 175,754 133,253 13,414 29,087 30,111 215,262 168,360 8,470 1,285 4,069 61,487 93,049 22,606 14,905 156 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 22,183 14,965 156 June 27............. 177,378 135,447 12,698 29,233 29,442 216,615 169,576 8,545 1,351 3,062 61,972 94,646 22,199 15,127 156 July 25............. 178.493 137,056 11,982 29,455 28,878 217,220 169.837 8,518 1,368 2,223 61,418 96,310 22,492 15,182 156 AH other member: 8,9,10 1941—Dec. 31............. 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31............. 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31............. 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1966—Dec. 31............. 109,518 68,641 22,419 18,458 19,004 131,338 117,749 2,392 69 1,474 56,672 57,144 308 10,309 5,958 1967—Dec. 30............. 122,511 74,995 24,689 22,826 20,334 146.052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Dec. 31............. 134,759 83,397 24,998 26,364 22,664 161!122 144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 317........... 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—Dec. 31............. 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1971—Dec. 31............. 175,211 110,357 24,343 40,511 26,783 207,798 181,780 3,853 263 2,993 74,072100,600 3,118 15,114 5,550 1972—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. 28............. 197,603 128,535 23,894 45,174 26,295 231,780 201,349 3,199 395 3,474 76,587117,694 6,082 16,516 5,510 Mar. 28............. 199,358 130,112 23,676 45,570 24,869 231,950 200,465 3,063 395 3,396 74,413119,198 6,619 16,834 5,505 Apr. 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 30.............. 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 5,525 June 27............. 204,904 136,427 22,092 46,385 25,474 238,796 205,260 3,116 395 3,525 76,679121,545 7,407 17,195 5,527 July 25*.......... 205,690 137,060 21.938 46,692 25,910 239,829 205,480 3.178 395 2,205 77,281 122,421 8,490 17,217 5,527 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS o AUGUST 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 Interbank,3 Other FRS membership 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 10,654 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 15,077j 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149| 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—Dec. 317 - 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 64,691 104,020 98,281 635,805 535,703 31,824 2,792 10,150 219,102 271,835 25,629 46,731 13,602 1972—June 30.. 539,093 368,275 59,984110,833 98,252 661,838 549,985 28,3981 3,033 9,062 217,641 291,850 32,828 49,623 13,669 Dec. 31.. 594,502 411,525 66,679116,298111,333 732,519 612,822 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,721 1973—Mar. 28.. 606,852 428,235 178,617 89,402 724,105 594,805 25,721j 4,339 11,322 219,601 333,821 43,921 53,529 13,766 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634| 263,375 231,374 13,877i 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,9531 296,594 257,884 15,117! 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—Dec. 317. 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 1973—Mar. 28.. 354,999 254,447 100,552 53,789 426,035 345,341 14,134I 2,285 6,866 127,001 195,056 30,336 30,924 4.607 State member: i 1941_Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,- 411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 381 27,068 9,062 9 3,055 1,918 15 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 ■ 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 i 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—Dec. 317. 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 1 1971—Dec. 31.. 102,813 71,441 11,247 20,125 26,998 135,517 111,777 13,102 721 2,412 45,9451 49,597 6,878 10,214 1,128 1972—June 30.. 105,895 75,047 10,450 20,398 26,248 138,021 111,705 11,595 879| 1,935 43,965 53,331 8,936 10,645 1,108 Dec. 31.. 115,426 82,889 11,530 21,008 29,176' 150,697 123,186 12,862 1,406 2,378 51,017 55,523 9,651 10,886 1,092 1973_Mar. 28.. 117,547 87,421 30,126 24,248! 148,345 117,906 10,511 1,495 2,457 43,377 60,065 12,044 10,973 1,074 t Nonmember: 1 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—Dec. 317. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1971—Dec. 31.. 108,527 67,188 17,058 24,282 12,092 123,970 109,841 1,212 242 1,723 44,717 61,946 582 9,451 7,875 1972—June 30.. 116,317 73,126 16,276 26,915 11,822 131,774 115,992 1,088 316 1,432 45.222 67,934 1,076 10,265 7,955 Dec. 31.. 128,333 81,594 17,964 28,774 14,767 147,013 130,316 1,408 552 1,796 52,876 73,685 1,199 10,938 8,017 1973—Mar. 28.. 134,306 86,368 47,939 11,365 149,725 131,558 1,076 559 1,999 49.223 78,701 1,541 11,631 8,085 For notes see p. A-21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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— F C R la S a i s n n s m i s d f u e ic r F m a a D t b n i I c e o C r e n s h b i y p Total Loa l ns T U re . S S a e s . c ­ uri O tie t s h 2 er a C ss a e s t h s 3 c b T a i a l a l p o i i n c a t i t d i t ­ a ­ e a l s l Total3 m D I a n e n t ­ d erba T n i k m 3 e Dema O nd ther Tim 5 e r B i o n o w g r s ­ ­ c c T a o a p o u c t i n t ­ a t a l s l N ba b u o n e m f r ks ­ ury counts 4 G U o .S vt . . Other Noninsured nonmember: 1941—Dec. 31........... 1,457 455 761 241 763 2,283 1,872 3:19 1,291 253 13 329 852 1945—Dec. 31........... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947_Dec. 316......... 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1963—Dec. 20........... 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31........... 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31........... 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967—Dec. 30........... 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31........... 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30 7........ 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dcc. 31........... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 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 13,643 129,100 112,764 1,592 359 1,742 45,990 63,081 866 9,932 8,056 1972—June 30......... 120,510 76,357 16,550 27,603 13,042 137,658 119,145 1,472 397 1,453 46,631 69,192 1,462 10,759 8,161 Dec. 31......... 133,198 85,325 18,313 29,559 16,562 154,085 134,091 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 banks as follows: three before Jan. 1960, two through Dec. 1960, 5 See third paragraph of note 1 above. and one through June 1962. Those banks are not included in insured 6 Beginning with Dec. 31, 1947, the series was revised; for description, commercial banks. see note 4, p. 587, May 1964 Bulletin. Beginning June 30, 1969, commercial banks and member banks exclude 7 Figure takes into account the following changes beginning June 30, a small national bank in the Virgin Islands; also, member banks exclude, 1969: (1) inclusion of consolidated reports (including figures for all bank- and noninsured commercial banks include, through June 30, 1970, a small premises subsidiaries and other significant majority-owned domestic member bank engaged exclusively in trust business. subsidiaries) and (2) reporting of figures for total loans and for individual Comparability of figures for classes of banks is affected somewhat by categories of securities on a gross basis—that is, before deduction of changes in F.R. membership, deposit insurance status, and the reserve valuation reserves—rather than net as previously reported. classifications of cities and individual banks, and by mergers, etc. 8 Beginning Nov. 9,1972, designation of banks as reserve city banks for Data for national banks for Dec. 31, 1965, have been adjusted to make reserve-requirement purposes has been based on size of bank (net demand them comparable with State bank data. deposits of more than $400 million), as described in the Bulletin for Figures are partly estimated except on call dates. July 1972, p. 626. Categories shown here as “Large” and “All other” 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 □ AUGUST 1973 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b C a l n a k s s a o nd f lo T a a o n n t d a s l i f F e u r e n a d d l ­ s C m o e m r­ ­ Agri- o p s r u e r c c c F u a h r r o a r i r t s y i i i e n n s g g in f s in ti a T tu n o c ti i o a n l s Real Ot t h o er, U s . e S c . u T r r it e i a e s s u 6 ry S a t n a d te call date invest­ sold, Total cial cul- es­ in- Other local Other ments etc.2 3,4 and tur- To tate di- govt. secu­ in­ al 5 bro­ vid- Bills secu­ rities 5 d tr u ia s­ l k a e n r d s ot T he o rs Banks Others uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1969—Dec. 31 ™ 422,728 9,928286,750108,443 10,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1972—Dec. 31.599,36726,662388,593 132,701 14,314 11,3164,491 6,58523,40298,38287,232 10,171 67,028 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 ,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 ™419,746 9,693284,945 107,685 10.314 5,6443,991 2,425 14,89069,669 63,008 7,319 54,399 58,840 11,869 1972—Dec. 31.594,50225,584385,941 131,422 14,287 11,1654,460 6,115 23,27798,204 86,912 10,09966,679 89,173 27,125 1973—Mar. 28 606,85225,931402,305 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,090 2,871 1945—Dec. 31. 107,183 22,775 8,949 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1969—Dec. 31 ™337,613 7,35i6235,639 96,0956,187 5,408 3,286 2,258 14,035 53,20748,388 6,776 39,833 47,227 7,558 1972—Dec. 31.466,169 19,961309,969 112,1108,495 10,8633,870 5,78322,026 73,131 64,4909,201 48,715 69,640 17,884 1973—Mar. 28.472,546 19,090322,778 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 93 111 564 238 11,972 1,642 558 9,772 638 604 1969—Dec. 31™ 60,333 802 47,503 28,189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 1972—Dec. 31. 75,034 812 57,901 27,864 7,057 841 2,271 6,413 5,789 5,2252,390 5,696 9,107 1,518 1973—Mar. 28. 76,790 1,674 61,021 City of Chicago:11 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 4,213 1,600 749 1,864 181 204 1947—Dec. 31. 5,088 1,801 1,418 73 87 46 149 2,890 367 248 2,274 213 185 1969—Dec. 31™ 14,365 215 10,556 6,444 50 337 262 186 1,219 842 862 354 1,564 1,837 192 1972—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 1973—Mar. 28. 22,639 1,367 16,750 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 3,661 205 427 1,503 17 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31™121,628 3,021 88,18037,701 1,386 878 1,300 876 6,006 19,706 17,5692,757 11,944 16,625 1,859 1972—Dec. 31. 171,618 9,927116,80244,483 1,9772,024 1,707 2,716 10,26827,01422,669 3,943 16,316 24,0494,523 1973—Mar. 28. 173,016 7,960122,475 All other member :u 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,544 16,722 1,342 I,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31™141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 1972—Dec. 31. 198,156 8,504119,69031,911 6,327 452 1,040 455 2,565 39,262 35,458 2,22024,830 33,664 II,468 1973—Mar. 28.200,101 8,089122,531 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,078 625 1969- Dec. 31 ™ 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 1972--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

AUGUST 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 R v e t k h e ­ . s s r C c a e o n u n i r d c n ­ y b m a w a d n e n i o c s t k e t h ­ i s s c 7 ju m p 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 .S vt . . S g l a o o t n c a v a d t t e l . c C c h o a f e e i e f n r e r f c s d d i t k * ­ i­ s, IPC I b n a t n er k ­ G P U S a o o a n . s S v v d t t ­ . a . l S g l a o o t n c a v a d t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a t a u a c p n l ­ i t ­ s etc. ings Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1969—Dec. 3110.. 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—Dec. 31... 26,070 8,666 32,185212,121 29,971 3,883 10,875 18,588 11,685 221,950 4,194 60637,161 277,683 38,08352,658 A11 insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31io.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,86018,02439,450 1972—Dec. 31... 26,070 8,637 30,734210,287 29,731 3,635 10,820 18,459 11,177 221,057 4,113 60637,086276,138 37,55652,166 1973—Mar. 28.. . 27,160 8,830 23,131 194,096 22,443 3,279 11,322 16,111 8,593 194,898 4,339 66641,495291,66243,92153,529 Member—Total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1969—Dec. 3110.. 21,449 5,676 11,931 133,435 23,441 2,399 4,114 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 1972—Dec. 31... 26,070 6,582 19,396 158,464 28,521 3,437 9,024 13,544 9,503 174,770 3,562 46828,553 211,12436,35741,228 1973—Mar. 28... 27,160 6,710 14,719 145,411 21,537 3,108 9,323 11,732 7,347 151,299 3,780 51631,705222,90042,38041,897 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 ’*195 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 31 io.. 4,358 463 455 21,316 8,708 1,641 694 1,168 6,605 28,354 268 45 207 14,6924,405 6,301 1972—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 1973—Mar. 28.. . 5,292 562 4,020 21,687 9,527 2,292 1,688 686 3,017 25,248 1,984 14 2,766 30,121 9,951 8,112 City of Chicago:11 1941—Dec. 31.... 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31.... 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31.... 1,070 30 175 3*737 1,196 21 72 285 63 3,853 2 9 902 426 1969—Dec. 3110.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1972—Dec. 31... 1,496 152 173 5,783 1,516 99 509 223 264 6,899 160 95 847 9,237 3,008 1,891 1973—Mar. 28 . . . 1,435 116 112 5,148 1,232 95 459 143 162 6,134 207 150 1,006 10,2303,861 1,905 Other large banks:11 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1969—Dec. 3110.. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1972—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 19,392 14,687 1973—Mar. 28 . .. 10,958 2,124 3,694 48,856 7,762 639 3,767 3,421 2,336 54,882 1,196 175 12,810 78,38022,12914,869 All other member:11 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 3110.. 7,179 3,302 7,870 62,729 3,080 72 1,671 7,905 1,721 58,304 84 54 4,920 70,768 1,820 12,766 1972—Dec. 31... 8,794 3,807 9,681 76,597 4,047 70 3,238 8,726 2,571 72,384 395 181 13,373 101,2434,455 16,608 1973—Mar. 28 . . . 9,474 3,908 6,893 69,720 3,016 83 3,409 7,482 1,832 65,035 393 17615,122 104,1706,439 17,012 Nonmember:3 1Q47—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 i 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—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 i 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 □ AUGUST 1973 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. i Other To brokers For pui chasing and dealers or carryinjI 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. >thers 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 July 5............. 298,175 12,901 11,683 638 359 221 205,460 85,427 2,594 589 7,397 158 2,703 7,148 9,619 12............. 297,303 12,250 9,566 2,228 269 187 205,099 85,268 2,597 1,319 7,118 160 2,687 6,572 9,614 1 9 296,351 11,951 10,916 536 287 212 205,108 85,300 2,603 653 7,129 155 2,680 6,718 9,642 26............. 295,960 11,559 10,555 597 250 157 204,812 85,151 2,597 717 7,088 167 2,687 6,504 9,683 1973 June 6............. 341,398 12,967 11,685 779 207 296 248,326 103,492 3,165 564 5,847 223 2,913 8,417 15,729 13............. 343,298 13,386 10,799 2,026 207 354 249,893 103,813 3,194 1,462 5,841 210 2,941 8,171 15,648 2 0 344,165 12,648 11,477 673 260 238 252,109 105,157 3,232 561 5,746 209 2,928 8,720 16,036 27............. 344,164 12,047 10,804 840 258 145 252,729 104,996 3,250 888 5,695 213 2,909 8,565 16,214 July 4*............. 346,465 12,567 11,422 755 247 143 254,570 105,676 3,251 381 5,451 210 2,900 8,939 16,723 11*........... 347,751 11,615 9,877 1,285 225 228 256,822 106,303 3,260 2,157 5,569 208 2,910 8,660 16,381 18*........... 347,605 13,922 12,738 887 150 147 255,089 106,673 3,253 523 5,193 209 2,953 8,655 16,398 25*........... 346,824 12,274 10,867 972 119 316 255,776 106,837 3,267 764 5,298 209 2,947 8,772 16,444 New York City 1972 July 5............. 62,409 1,816 1,768 48 47,076 24,452 33 478 4,857 43 674 2,039 2,488 12............. 62,043 1,219 1,196 23 47,018 24,224 33 1,179 4,640 44 663 1,735 2,470 1 9 61,474 1,264 1,223 10 31 46,618 24,270 33 546 4,534 43 663 1,809 2,516 26............. 61,088 1,039 1,028 11 46,280 24,126 30 584 4,582 42 657 1,752 2,521 1973 June 6............. 72,133 2,170 1,972 103 95 57,058 29,162 73 455 3,394 58 637 2,470 5,142 13............. 72,513 1,552 1,311 103 138 58,101 29,343 71 1,352 3,405 49 662 2,347 5,109 2 0 73,455 2,089 1,909 93 87 58,445 29,956 72 452 3,299 48 662 2,759 5,274 27............. 73,097 1,968 1,925 33 5 58,501 29,758 72 799 3,312 48 651 2,572 5,265 July 4*............. 73,669 2,255 2,227 26 2 58,923 30,010 71 296 3,113 47 654 2,763 5,490 11*............ 74,775 1,217 1,201 16 60,930 30,322 73 2,062 3,242 46 648 2,536 5,259 18 v............ 74,305 2,921 2,831 89 1 58,926 30,462 73 441 2,937 44 679 2,504 5,293 25*............ 73,544 1,688 1,667 16 5 59,206 30,583 73 585 3,059 43 674 2,635 5,374 Outside New York City 1972 July 5.............. 235,766 11,085 9,915 638 359 173 158,384 60,975 2,561 111 2,540 115 2,029 5,109 7,131 12.............. 235,260 11,031 8,370 2,228 269 164 158,081 61,044 2,564 140 2,478 116 2,024 4,837 7,144 1 9 234,877 10,687 9,693 536 277 181 158,490 61,030 2,570 107 2,595 112 2,017 4,909 7,126 26.............. 234,872 10,520 9,527 597 250 146 158,532 61,025 2,567 133 2,506 125 2,030 4,752 7,162 1973 June 6............. 269,265 10,797 9,713 676 207 201 191,268 74,330 3,092 109 2,453 165 2,276 5,947 10,587 13............. 270,785 11,834 9,488 1,923 207 216 191,792 74,470 3,123 110 2,436 161 2,279 5,824 10,539 2 0 270,710 10,559 9,568 580 260 151 193,664 75,201 3,160 109 2,447 161 2,266 5,961 10,762 27............. 271,067 10,079 8,879 807 253 140 194,228 75,238 3,178 89 2,383 165 2,258 5,993 10,949 July 4*............. 272,796 10,312 9,195 729 247 141 195,647 75,666 3,180 85 2,338 163 2,246 6,176 11,233 11*........... 272,976 10,398 8,676 1,269 225 228 195,892 75,981 3,187 95 2,327 162 2,262 6,124 11,122 18*........... 273,300 11,001 9,907 798 150 146 196,163 76,211 3,180 82 2,256 165 2,274 6,151 11,105 25*........... 273,280 10,586 9,200 956 119 311 196,570 76,254 3,194 179 2,239 166 2,273 6,137 11,070 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ WEEKLY REPORTING BANKS A 25 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts.2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1972 42,122 1,368 2,823 25,728 1,023 16,761 26,225 3,901 4,823 14,728 2,773 .........................July 5 42,307 1,398 2,852 25,759 1,018 16,429 25,696 3,523 4,780 14,694 2,699 ........................................12 42,496 1,391 2,953 25,803 1,020 16,565 25,581 3,422 4,841 14,714 2,604 ........................................19 42,654 1,302 2,929 25,899 1,011 16,423 25,795 3,497 5,010 14,663 2,625 ........................................26 1973 49,224 3,188 4,832 29,794 1,251 19,687 24,265 4,505 3,976 12,969 2,815 ............................June 6 49,518 3,194 5,03( 29,916 1,292 19,663 24,269 4,472 3,950 13,001 2,846 ........................................13 49,801 3,373 5,18C 30,113 1,308 19,745 23,918 4,184 3,920 12,980 2,834 ........................................20 50,003 3,347 5,160 30,300 1,312 19,877 23,839 4,039 3,956 13,014 2,830 ........................................27 50,192 3,550 5,196 30,422 1,241 20,438 23,825 4,152 4,151 12,755 2,767 ...........................July 4p 50,444 3,339 5,308 30,489 1,248 20,546 23,613 4,059 4,146 12,665 2,743 ..................................Up 50,628 3,251 5,222 30,599 1,201 20,331 23,137 3,585 4,083 12,723 2,746 ........................................18*> 50,923 3,333 5,063 30,760 1,223 19,936 22,735 3,134 4,153 12,715 2,733 ........................................25 p New York City 1972 4,524 419 1,164 1,956 627 3,322 4,737 1,150 964 2,357 266 .........................July 5 4,548 418 1,183 1,965 631 3,285 4,518 1,013 966 2,366 173 ......................................12 4,570 445 1,281 1,970 623 3,315 4,494 1,014 1,008 2,388 84 ......................................19 4,591 346 1,259 1,967 616 3,207 4,660 1,099 1,085 2,372 104 .......................................26 1973 5,368 1,164 2,184 2,224 701 4,026 4,368 1,568 558 1,594 648 .........................June 6 5,404 1,151 2,313 2,234 718 3,943 4,292 1,346 586 1,651 709 ......................................13 5,466 1,118 2,447 2,254 732 3,906 4,279 1,323 581 1,661 714 ......................................20 5,489 1,215 2,385 2,271 717 3,947 4,050 1,139 552 1,667 692 ......................................27 5,511 1,370 2,350 2,269 662 4,317 3,953 1,153 569 1,597 634 .........................July 4 p 5,564 1,261 2,465 2,283 676 4,493 3,859 1,125 579 1,572 583 ......................................\\p 5,601 1,229 2,448 2,293 621 4,301 3,774 1,088 548 1,560 578 .................................1§p 5,629 1,322 2,302 2,328 625 3,974 3,742 1,003 584 1,576 579 ......................................25 v Outside New York City 1972 37,598 949 1,659 23,772 396 13,439 21,488 2,751 3,859 12,371 2,507 .July 5 37,759 980 1,670 23,794 387 13,144 21,178 2,510 3,814 12,328 2,526 .........12 37,926 946 1,672 23,833 397 13,250 21,087 2,408 3,833 12,326 2,520 ...........19 38,063 956 1,670 23,932 395 13,216 21,135 2,398 3,925 12,291 2,521 ...........26 1973 43,856 2,024 2,648 27,570 550 15,661 19,897 2,937 3,418 11,375 2.167 .June 6 44,114 2,043 2,717 27,682 574 15,720 19,977 3,126 3,364 11,350 2.137 ..........13 44,335 2,255 2,733 27,859 576 15,839 19,639 2,861 3,339 11,319 2,120 .........20 44,514 2,132 2,775 28,029 595 15,930 19,789 2,900 3,404 11,347 2.138 ..........27 44,681 2,180 2,846 28,153 579 16,121 19,872 2,999 3,582 11,158 2,133 , .July 4 v 44,880 2,078 2,843 28,206 572 16,053 19,754 2,934 3,567 11,093 2,160 . 11p 45,027 2,022 2,774 28,306 580 16,030 19,363 2,497 3,535 11,163 2.168 18 p 45,294 2,011 2,761 28,432 598 15,962 18,993 2,131 ...............1 3,569 11,139 2,154 , 25p For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ AUGUST 1973 ASSETS AND LIABILITIES OF URGE 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 other5 pation4 Large banks— Total 1972 July 5............................................ 53,589 8,449 37,301 1,556 6,283 35,552 21,326 3,456 10,428 961 16,471 386,369 12............................................ 54,258 8,856 37,584 1,553 6,265 30,062 17,799 3,894 8,872 986 16,275 375,191 19............................................ 53,711 8,534 37,401 1,527 6,249 29,879 21,005 3,775 9,212 992 16,533 377,747 26............................................ 53,794 8,881 37,084 1,532 6,297 27,844 20,500 3,893 8,756 991 16,484 374,428 1973 June 6............................................ 55,840 8,400 38,094 1,545 7,801 27,755 20,879 3,768 10,142 1,263 19,776 424,981 13............................................ 55,750 8,123 38,045 1,578 8,004 28,264 18,081 4,163 9,804 1,261 19,508 424,379 20............................................ 55,490 7,982 38,055 1,575 7,878 29,144 21,543 4,147 9,909 1,268 19,594 429,770 27............................................ 55,549 7,900 37,991 1,636 8,022 26,998 18,362 4,304 9,789 1,272 19,896 424,785 July 4 *.......................................... 55,503 7,926 37,990 1,633 7,954 36,642 22,910 3,751 10,065 1,289 20,295 441,417 11*.......................................... 55,701 7,925 37,949 1,743 8,084 29,886 18,306 4,211 9,221 1,303 19,673 430,351 18*.......................................... 55,457 7,743 37,811 1,769 8,134 30,117 21,789 4,169 9,913 1,303 19,771 434,667 25*.......................................... 56,039 7,957 37,966 1,831 8,285 28,917 21,205 4,243 10,051 1,296 19,789 432,325 New York City 1972 July 5............................................ 8,780 2,318 5,351 275 836 13,289 5,651 438 4,189 460 4,816 91,252 12............................................ 9,288 2,650 5,540 275 823 9,414 4,239 448 2,833 460 4,810 84,247 19............................................ 9,098 2,574 5,443 272 809 9,996 4,662 434 3,436 464 4,832 85,298 26............................................ 9,109 2,844 5,135 277 853 9,821 5,130 442 3,285 464 4,790 85,020 1973 June 6............................................ 8,537 2,075 4,614 357 1,491 8,285 5,232 478 4,246 597 6,469 97,440 13............................................ 8,568 2,077 4,602 356 1,533 8,420 4,593 490 4,120 595 6,212 96,943 20............................................ 8,642 2,101 4,714 348 1,479 8,944 5,757 487 4,316 600 6,243 99,802 27............................................ 8,578 2,097 4,589 368 1,524 8,619 4,439 500 4,140 604 6,402 97,801 July 4*.......................................... 8,538 2,013 4,673 368 1,484 11,702 6,652 468 4,206 621 6,325 103,643 11*.......................................... 8,769 2,090 4,722 434 1,523 9,698 5,098 491 4,025 623 5,941 100,651 18*.......................................... 8,684 2,108 4,607 443 1,526 9,364 7,171 478 4,554 623 6,429 102,924 25*.......................................... 8,908 2,304 4,627 464 1,513 10,788 6,389 478 4,817 616 6,321 102,953 Outside New York City 1972 July 5............................................ 44,809 6,131 31,950 1,281 5,447 22,263 15,675 3,018 6,239 501 11,655 295,117 12............................................ 44,970 6,206 32,044 1,278 5,442 20,648 13,560 3,446 6,039 526 11,465 290,944 19........................................... 44,613 5,960 31,958 1,255 5,440 19,883 16,343 3,341 5,776 528 11,701 292,449 26............................................ 44,685 6,037 31,949 1,255 5,444 18,023 15,370 3,451 5,471 527 11,694 289,408 1973 June 6............................................ 47,303 6,325 33,480 1,188 6,310 19,470 15,647 3,290 5,896 666 13,307 327,541 13............................................ 47,182 6,046 33,443 1,222 6,471 19,844 13,488 3,673 5,684 666 13,296 327,436 20............................................ 46,848 5,881 33,341 1,227 6,399 20,200 15,786 3,660 5,593 668 13,351 329,968 27............................................ 46,971 5,803 33,402 1,268 6,498 18,379 13,923 3,804 5,649 668 13,494 326,984 July 4*.......................................... 46,965 5,913 33,317 1,265 6,470 24,940 16,258 3,283 5,859 668 13,970 337,774 11*.......................................... 46,932 5,835 33,227 1,309 6,561 20,188 13,208 3,720 5,196 680 13,732 329,700 18*.......................................... 46,773 5,635 33,204 1,326 6,608 20,753 14,618 3,691 5,359 680 13,342 331,743 25*.......................................... 47,131 5,653 33,339 1,367 6,772 18,129 14,816 3,765 5,234 680 13,468 329,372 For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ gOVtS.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1972 157,680 108,396 6,801 4,350 24,532 920 1,175 3,157 8,349 149,325 58,014 65,242 18,035 2,261 5,304 ...............July 5 146,908 105,801 6,312 3,242 20,729 846 958 2,773 6,247 149,863 58,004 65,645 18,092 2,323 5,335 .........................12 148,812 104,317 5,882 6,326 21,691 728 1,038 2,898 5,932 150,871 57,983 66,483 18,204 2,442 5,286 .........................19 145,159 102,608 5,889 5,332 20,396 694 893 2,988 6,359 151,296 57,918 66,882 18,174 2,482 5,375 .........................26 1973 148,986 107,987 6,309 2,496 20,846 776 1,153 3,349 6,070 180,008 58,356 86,529 22,232 4,075 8,022 ...............June 6 149,672 110,912 6,149 1,998 20,121 722 910 3,345 5,515 180,235 58,285 86,849 21,917 4,304 8,113 .........................13 153,943 109,889 6,469 6,634 19,887 700 877 3,578 5,909 178,797 58,200 85,996 21,506 4,217 8,111 .........................20 149,950 107,431 6,836 5,646 19,362 733 859 3,392 5,691 179,961 58,250 87,207 21,432 4,319 8,018 .........................27 161,502 113,967 7,645 5,079 22,448 1,023 1.003 3,360 6,977 180,133 58,376 87,530 21,173 4,304 8,044 ...............July 4 p 153,096 110,682 6,316 2,790 20,633 854 1,219 3,587 7,015 180,521 58,222 87,986 21,266 4,426 8,014 .........................11 p 153,340 111,502 6,089 3,215 21,083 783 1,076 3,292 6,300 181,840 57,998 89,445 21,325 4,487 7,967 .........................18 p 151,069 106,813 6,062 3,929 21,017 737 1.003 3,686 7,822 183,550 57,644 90,988 21,742 4,597 7,962 .........................25 p New York City 1972 45,187 24,397 473 637 11,328 536 1,039 2,290 4,487 25,140 5,745 13,446 1,957 1,088 2,814 ...............July 5 38,053 22,596 452 630 8,397 460 812 1,945 2,761 25,407 5,732 13,578 2,075 1,115 2,824 .........................12 39,529 22,455 366 1,307 9,415 385 858 2,039 2,704 25,846 5,724 13,924 2,112 1,225 2,778 .........................19 38,853 22,375 294 1,118 8,863 362 748 2,107 2,986 25,815 5,714 13,758 2,144 1,249 2,865 .........................26 1973 38,945 22,618 353 498 9,247 396 930 2,350 2,553 32,299 5,346 18,685 1,720 2,389 4,042 ...............June 6 38,501 22,836 333 291 9,506 366 729 2,388 2,052 32,439 5,336 18,561 1,766 2,578 4,082 .........................13 40,451 23,328 430 1,701 8,960 334 710 2,590 2,398 31,944 5,311 18,250 1,657 2,517 4,102 .........................20 39,270 22,781 449 1,135 9,105 372 682 2,408 2,338 32,305 5,323 18,565 1,664 2,590 4,060 .........................27 43,479 24,611 1,022 936 10,481 594 834 2,293 2,708 32,830 5,315 18,838 1,925 2,591 4,058 ...............July 4 p 40,650 23,070 297 415 9,606 430 1,045 2,571 3,216 32,924 5,279 18,867 1,932 2,697 4,056 .........................11 p 41,478 24,211 324 651 10,132 414 892 2,260 2,594 33,169 5,247 19,161 1,891 2,774 4,016 ......................ISP 42,337 22,615 303 737 10,510 391 726 2,709 4,346 33,629 5,196 19,452 2,046 2,912 3,957 .........................25 p Outside New York City 1972 112,493 83,999 6,328 3,713 13,204 384 136 867 3,862 124,185 52,269 51,796 16,078 1,173 2,490 ...............July 5 108,855 83,205 5,860 2,612 12,332 386 146 828 3,486 124,456 52,272 52,067 16,017 1,208 2,511 .........................12 109,283 81,862 5,516 5,019 12,276 343 180 859 3,228 125,025 52,259 52,559 16,092 1,217 2,508 .........................19 106,306 80,233 5,595 4,214 11,533 332 145 881 3,373 125,481 52,204 53,124 16,030 1,233 2,510 .........................26 1973 110,041 85,369 5,956 1,998 11,599 380 223 999 3,517 147,709 53,010 67,844 20,512 1,686 3,980 ...............June 6 111,171 88,076 5,816 1,707 10,615 356 181 957 3,463 147,796 52,949 68,288 20,151 1,726 4,031 .........................13 113,492 86,561 6,039 4,933 10,927 366 167 988 3,511 146,853 52,889 67,746 19,849 1,700 4,009 .........................20 110,680 84,650 6,387 4,511 10,257 361 177 984 3,353 147,656 52,927 68,642 19,768 1,729 3,958 .........................27 118,023 89,356 6,623 4,143 11,967 429 169 1,067 4,269 147,303 53,061 68,692 19,248 1.713 3,986 ...............July 4 p 112,446 87,612 6,019 2,375 11,027 424 174 1,016 3,799 147,597 52,943 69,119 19,334 1,729 3,958 ......................Up 111,862 87,291 5,765 2,564 10,951 369 184 1,032 3,706 148,671 52,751 70,284 19,434 1.713 3,951 .........................18* 108,732 84,198 5,759 3,192 10,507 346 277 977 3,476 149,921 52,448 71,536 19,696 1,685 4,005 ......................25p For notes see p. A-28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ AUGUST 1973 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits i1 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 ities counts (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed io Total to to foreign justed 9 IPC’s others bran­ ches Large banks— Total 1972 July 5..................... 30,696 420 1,527 14,132 4.159 28,359 205,310 285,124 93,246 35,694 22,330 13,364 824 12...................... 29,362 58 1,651 14,780 4,148 28,350 206,385 286,339 92,875 36,358 22,798 13,560 1,375 1 9 29,495 47 1,646 14,382 4,142 28,281 204,752 284,044 90,916 37,047 23,344 13,703 974 26...................... 28,653 593 1,551 14,601 4.159 28,345 204,514 284,103 91,587 37,705 23,766 13,939 1,342 1973 June 6...................... 39,933 514 3,279 17,186 4,467 30,544 246,420 326,525 97,889 59,287 39,192 20,095 940 13...................... 37,723 1,347 3,100 17,193 4,475 30,570 249,286 329,305 99,289 59,726 39,468 20,258 1,266 2 0 39,541 1,393 3,402 17,637 4,477 30,516 249,907 329,315 98,278 58,477 38,530 19,947 1,242 27...................... 37,077 1,117 3,840 17,742 4,488 30,546 250,625 330,013 97,944 59,519 39,582 19,937 1,521 July 4 *....................... 41,216 2,423 3,723 17,094 4,469 30,761 252,165 331,493 97,333 59,773 39,716 20,057 1,766 11*.................... 38,656 1,836 4,013 16,932 4.492 30,741 255,221 334,535 99,787 60,674 40,357 20,317 1,664 18*.................... 41,746 1,100 4,264 17,190 4.492 30,631 253,022 331,616 98,925 61,874 41,625 20,249 2,139 25*.................... 38,799 1,299 4,509 17,895 4,495 30,645 253,850 332,624 97,206 63,492 42,851 20,641 2,080 New York City 1972 July 5...................... 7,471 413 4,658 1,218 7,165 46,705 60,222 19,933 12,279 8,284 3,995 553 12..................... 6,749 411 5,248 1,218 7,161 46,623 60,429 19,612 12,594 8,432 4,162 1,013 1 9 6,250 447 4,855 1,213 7,158 46,214 59,806 18,811 13,061 8,812 4,249 653 26..................... 6,300 160 373 5,160 1,224 7,135 45,945 59,714 19,051 13,129 8,707 4,422 1,051 1973 June 6...................... 9,327 1,561 6,307 1,280 7,721 56,092 68,997 20,915 19,142 12,877 6,265 556 13...................... 9,111 125 1,420 6,344 1,286 7,717 57,191 70,051 20,284 19,197 12,719 6,478 962 2 0 10,191 200 1,531 6,494 1,287 7,704 57,507 70,428 20,846 18,730 12,343 6,387 957 27..................... 8,555 1,888 6,802 1,292 7,689 57,329 69,957 20,411 19,037 12,658 6,379 1,264 July 4*....................... 9,628 539 1,793 6,312 1,284 7,778 57,581 70,072 20,360 19,367 12,748 1,512 11*.................... 9,001 807 1,876 6,346 1,275 7,772 59,685 72,313 20,931 19,475 12,744 1,354 18*.................... 10,517 2,131 6,609 1,279 7,741 57,787 70,245 21,331 19,725 13,072 1,669 25*.................... 9,318 257 2,125 6,282 1,282 7,723 57,905 70,555 20,302 20,209 13,362 1,470 Outside New York City 1972 July 5...................... 23,225 420 1,114 9,474 2,941 21,194 158,605 224,902 73,313 23,415 14,046 9,369 271 12...................... 22,613 58 1,240 9,532 2,930 21,189 159,762 225,910 73,263 23,764 14,366 9,398 362 1 9 23,245 47 1,199 9,527 2,929 21,123 158,538 224,238 72,105 23,986 14,532 9,454 321 26...................... 22,353 433 1,178 9,441 2,935 21,210 158,569 224,389 72,536 24,576 15,059 9,517 291 1973 June 6...................... 30,606 514 1,718 10,879 3,187 22,823 190,328 257,528 76,974 40,145 26,315 13,830 384 13...................... 28,612 1,222 1,680 10,849 3.189 22,853 192,095 259,254 79,005 40,529 26,749 13,780 304 2 0 29,350 1,193 1,871 11,143 3.190 22,812 192,400 258,887 77,432 39,747 26,187 13,560 285 27...................... 28,522 1,117 1,952 10,940 3,196 22,857 193,296 260,056 77,533 40,482 26,924 13,558 257 July 4 p....................... 31,588 1,884 1,930 10,782 3,185 22,983 194,584 261,421 76,973 40,406 26,968 13,438 254 11*.................... 29,655 1,029 2,137 10,586 3,217 22,969 195,536 262,222 78,856 41,199 27,613 13,586 310 18*.................... 31,229 1,100 2,133 10,581 3.213 22,890 195,235 261,371 77,594 42,149 28,553 13,596 470 25*.................... 29,481 1,042 2,384 11,613 3.213 22,922 195,945 262,069 76,904 43,283 29,489 13,794 610 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. 1° All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 o BUSINESS LOANS OF BANKS A 29 COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1973 1973 1973 1972 1973 1972 July July July July June 1st 2nd 25 18 11 4 27 July June May II I IV half half Durable goods manufacturing: Primary metals.................................... 1,999 2,011 2,031 2,017 2,038 -39 15 -110 -102 122 20 20 -79 Machinery............................................ 6,267 6,292 6,222 6,058 6,056 211 351 -26 645 808 496 1,453 395 Transportation equipment................ 2,260 2,252 2,252 2,170 2,158 102 -53 32 32 -173 64 -258 Other fabricated metal products... 2,322 2,324 2,324 2,300 2,262 60 104 50 267 236 -24 503 57 Other durable goods.......................... 3,786 3,800 3,884 3,810 3,776 10 140 32 323 549 -13 872 69 Nondurable goods manufacturing: Food, liquor, and tobacco............... 3,761 3,700 3,475 3,427 3,424 337 85 -240 -194 171 640 -23 827 Textiles, apparel, and leather........... 3,535 3,553 3,509 3,413 3,424 111 166 12 275 455 -351 730 -166 Petroleum refining.............................. 1,249 1,243 1,202 1,167 1,188 61 4 -18 -7 218 10 211 -14 Chemicals and rubber....................... 2,605 2,652 2,685 2,637 2,666 -61 53 -78 63 746 -9 809 -262 Other nondurable goods................... 2,102 2,062 2,074 2,083 2,054 48 46 64 157 203 -65 360 30 Mining, including crude petroleum and natural gas............................. 4,093 4,047 3,982 3,984 3,960 133 -5 -28 331 -33 331 25 Trade: Commodity dealers................... 1,283 1,256 1,314 1,280 1,254 29 -136 -241 -603 63 481 -540 622 Other wholesale......................... 5,309 5,297 5,307 5,224 5,221 88 35 73 183 384 61 567 216 Retail............................................ 6,127 6,166 6,115 6,159 6,092 35 120 151 457 635 166 1,092 473 Transportation........................................ 5,945 5,955 5,885 5,920 5,884 61 143 125 283 11 235 294 -42 Communication...................................... 2,131 2,129 2,127 2,070 2,117 14 -29 -31 79 179 147 258 424 Other public utilities.............................. 4,734 4,715 4,659 4,688 4,547 187 262 239 670 291 531 961 939 Construction............................................ 5,704 5,711 5,654 5,622 5,592 112 196 239 624 304 38 928 364 Services..................................................... 10,223 10,226 10,253 10,193 10,129 94 248 55 455 542 558 997 494 All other domestic loans....................... 7,842 7,822 7,829 7,835 7,589 253 106 364 782 972 168 1,754 239 Bankers’ acceptances.............................. 1,279 1,258 1,333 1,467 1,397 -118 93 160 76 -230 302 -154 100 Foreign commercial and industrial loans.................................................. 4,433 4,413 4,433 4,408 4,438 -5 -6 111 -22 580 414 558 491 Total classified loans............................. 88,989 88,884 88,549 87,932 87,266 1,723 1,991 850 4,443 7,602 3,599 12,045 4,944 Total commercial and industrial loans of large commercial banks**......... *>106,837*>106,673*>106,303*>105,676*>104,996 1,841 2,202 895 5,123 8,770 4,472 13,893 6,149 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 1973 Industry July June May Apr. Mar. Feb. Jan. Dec. Nov. 1st 25 27 30 25 28 28 31 27 29 IV III half Durable goods manufactur­ ing: Primary metals..................... 1,293 1,328 1,314 1,315 1,335 1,307 1,336 1,268 1,278 -7 67 -35 -67 60 Machinery............................ 2,664 2,641 2,560 2,555 2,313 2,305 2,271 2,154 2,034 328 159 249 -49 487 Transportation equipment. 1,193 1,189 1,168 1,180 1,174 1,217 1,246 1,205 1,256 15 -31 -102 -52 -16 Other fabricated metal products............................ 861 869 833 842 785 765 751 720 707 84 65 41 4 149 Other durable goods.......... 1,720 1,690 1,592 1,614 1,520 1,464 1,348 1,239 1,196 170 281 51 6 451 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 1,410 1,393 1,372 1,355 1,350 1,325 1,304 1,234 1,191 43 116 155 153 159 Textiles, apparel, and leather................................ 1,003 969 942 978 892 843 781 723 699 77 169 12 57 246 Petroleum refining............... 947 876 885 858 842 778 781 698 681 34 144 19 -15 178 Chemicals and rubber........ 1,486 1,481 1,441 1,459 1,479 1,439 1.359 1,153 1,143 2 326 -6 -65 328 Other nondurable goods.. 1,050 1,063 1,063 1,108 1,100 1,062 1,005 894 913 -37 206 -24 46 169 Mining, including crude pe­ troleum and natural gas. 3,022 2,846 2,908 2,895 2,872 2,823 2,896 2,685 2,726 -26 187 6 12 161 Trade: Commodity dealers.. 178 123 139 136 150 131 132 121 121 -27 29 14 -2 2 Other wholesale......... 1,118 1,066 1,051 1,068 1,055 1,008 982 894 880 11 161 30 -19 172 Retail............................ 2,066 2,006 1,979 1,947 1,823 1,763 1,698 1,592 1,588 183 231 148 146 414 Transportation......................... 4,255 4,305 4,161 4,202 4.234 4,285 4,257 4,180 4,070 71 54 94 -219 125 Communication....................... 814 785 760 738 746 770 755 682 549 39 64 121 64 103 Other public utilities............... 2,548 2,409 2,328 2,343 2.234 2,245 2,060 1,975 1,825 175 259 287 282 434 Construction............................ 2,009 1,896 1,852 1,800 1,709 1,665 1,661 1,558 1,528 187 151 8 142 338 Services...................................... 4,568 4,562 4,402 4,417 4,339 4,184 4,120 4,026 3,999 223 313 164 143 536 All other domestic loans .... 2,389 2,201 2,180 2,061 1,871 1,785 1,711 1,597 1,532 330 274 43 131 604 Foreign commercial and in­ dustrial loans................... 2,497 2,585 2,647 2,410 2,567 2,327 2,355 2,366 2,264 18 201 223 105 219 Total loans................................ *>39,091 *>38,283 *>37,577 *>37,281 *>36,390 35,491 34,8 32,964 32,180 1,893 3,426 1,498 803 5,319 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 AUGUST 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 fi s n in 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 Sept........................................................................................ 17.9 91.5 57.5 1.2 9.7 177.9 18.5 98.4 58.6 1.3 10.7 187.5 1972—June....................................................................................... 17.9 97.6 60.5 1.4 11.0 188.4 18.0 101.5 63.1 1.4 11.4 195.4 18.9 109.9 65.4 1.5 12.3 208.0 1973—Mar........................................................................................ 18.6 102.8 65.1 1.7 11.8 200.0 June*...................................................................................... 18.5 106.0 66.8 2.0 11.7 205.1 Weekly reporting banks: 1971—Dec......................................................................................... 14.4 58.6 24.6 1.2 5.9 104.8 1972 June....................................................................................... 14.1 57.3 25.7 1.3 6.0 104.3 July........................................................................................ 14.3 58.5 26.1 1.3 6.0 106.3 13.6 57.4 26.0 1.3 5.7 104.0 13.7 59.0 26.2 1.3 6.2 106.4 14.1 60.0 26.2 1.3 6.1 107.8 14.5 60.5 26.7 1.3 6.2 109.2 14.7 64.4 27.1 1.4 6.6 114.3 1973 Jan.......................................................................................... 15.0 63.1 27.8 1.4 6.8 114.1 Feb.......................................................................................... 14.3 60.3 26.3 1.6 6.5 109.0 Mar........................................................................................ 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 13.8 59.1 26.9 1.9 6.4 108.0 14.2 60.8 27.1 1.9 6.3 110.2 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 Note.—Daily-average balances maintained during month as estimated Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, June 30, Dec. 31, Mar. 28, Class of Dec. 31, June 30, Dec. 31, Mar. 28, bank 1971 1972 1972 1973 bank 1971 1972 1972 1973 All commercial............................ 680 595 559 All member—Cont. Insured...................................... 677 592 554 556 Other large banks 1............ 112 73 69 67 National member................... 387 340 311 314 All other member 1............. 371 346 313 318 State member........................... 95 79 71 72 All nonmember........................ 197 177 177 All member.................................. 482 419 381 385 195 173 172 171 Noninsured........................... 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-18, deposits of more than $400 million), as described in the Bulletin for A-19, 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-17. 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

AUGUST 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—Apr. 4........... 3,428 2,065 1,363 1,838 285 1,553 11........... 3,572 2,241 1,331 1,846 279 1,567 18........... 3,592 2,357 1,235 1,823 286 1,537 25........... 3,650 2,319 1,331 1,816 265 1,551 May 2 ........ 3,598 2,281 1,317 1,819 270 1,549 9........... 3,561 2,232 1,329 1,818 270 1,548 16........... 3,668 2,323 1,345 1,818 297 1,521 23........... 3,618 2,283 1,335 1,751 296 1,455 30........... 3,674 2,231 1,443 1,773 308 1,465 June 6.......... 3,701 2,348 1,353 1,798 323 1,475 13........... 3,611 2,248 1,363 1,757 309 1,448 20.......... 3,474 2,169 1,305 1,731 280 1,451 27.......... 3,520 2,174 1,346 1,707 279 1,428 July 4.......... 3,621 2,308 1,313 1,693 267 1,426 11 3,533 2,267 1,266 1,683 281 1,402 18........... 3,963 2,515 1,448 1,686 274 1,412 25........... 4,031 2,557 1,474 1,707 291 1,416 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances comoanv oaoer Held by— Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other2 Total Own Bills Own eign United United bills bought acct. corr. States States 1965............................ r 9,300 1,903 *■ 7,397 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966............................ r13,645 3,089 r10,556 3,603 1,198 983 215 193 191 2,022 997 829 1,778 1967............................ r17,085 4,901 *•12,184 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968............................ r21,173 7,201 *•13,972 4,428 1,544 1 344 200 58 109h 2,717 1,423 952 2,053 1969............................ r32,600 1,216 10,601 '3^078 *•17,705 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970............................ r33,071 409 12,262 1,940 '18,460 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971............................ *•32,126 495 10,923 1,478 *•19,230 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 1972—June............... >•34,366 542 12,325 1,429 *•20,070 7,069 2,817 2,082 735 73 251 3,927 2,657 1,569 2,843 July................. '34,785 604 12,319 1,652 *•20,210 6,643 2,430 1,873 557 63 263 3,887 2,492 1,606 2,545 Aug................. '34,233 705 12,239 1,716 *•19,573 6,639 2,298 1,829 469 96 287 3,958 2,532 1,631 2,476 Sept................ *■34,012 775 12,313 1,593 *•19,331 6,602 2,403 1,833 569 62 261 3,876 2,538 1,646 2,418 Oct.................. *•35,651 821 12,737 1,708 *•20,385 6,748 2,394 1,881 514 70 219 4,065 2,585 1,786 2,377 Nov................ *•35,775 876 12,345 1,709 *•20,845 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 May............... 35,672 1,148 8,288 2,922 23,314 6,888 2,197 1,763 433 83 384 4,225 2,009 2,509 2,371 June............... 35,786 1,173 8,316 3,110 23,187 7,237 2,185 1,746 439 66 395 4,591 2,053 2,755 2,428 1 As reported by dealers; includes finance company paper as well as Note.—Data for commercial and finance company paper have been other commercial paper sold in the open market. revised to remove large discontinuities resulting from the addition of com- 2 As reported by finance companies that place their paper directly with mercial paper issuers. Back data available from Financial Statistics investors. Division, Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 INTEREST RATES □ AUGUST 1973 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date Rate Effective date Rate Effective date Effective date Rate 1969—Jan. 7. 7 1972—Jan. 3. 5-51/8-5*4- 1972—Sept. 4. 5*4-51/2- 1973—June 8, 7*4- Mar. 17. m 17. 434-5-5*4» 5. 51/2- 19, 71/2--734 June 9. 8% 24. 45/8-434-5- 11. 51/2--55/8 25, 734- 31. 41/2-434--5 25. 51/2--55/8" 1970—Mar. 25. 534 July 2, 734 .-8 Sept. 21. Feb. 28. 43/8-41/2- 3. 734-8. Nov. 12. 43,4- Oct. 2. 5*4--534 9. 8-8*4- 23. 7 Mar. 13. 41/2-434. 4. 51/2-534- 17. 81/4--81/2 Dec. 22. 6% 23. 4Y4m 11. 53/4- 18. 81/4-81/2- 27. 4%--4 7/8-5 16. 534--5 7/8 23. 81/2 1971 _jan. 6. 6 *4 30. 81/2-834. 15. 6% Apr. 3. 4%--5 Nov. 6, 534- 18. 6 5. 5- 20. 534--57/S Feb. 16. 5% 17. 5--5 *4 Mar. 11. 5*4-51/2 Dec. 26. 534--6 19. 5% May 1, 5--51/8-514 27. 5%-6. 30, 5- Apr. 23. 5*4-51/2 1973—Jan. 4, May 11. 5% June 12, 5--51/8 July 6. 5*^-6 26, 5-5*4- Feb. 2, 6.-6 *4 7. 6 14. 6a Oct. 20, 5% July 3, 5*4--53/8 26. 6.-6 *4 10, 5*4--53/8- 27. 6*4- Nov. 1. 5%«-5% 5*4 4, 5*4--5% 17, 5*4--5*4 Mar. 19 614--634 8, 5*4- 31 5*4--5%- 26 6*4- 22, 5%-5*4- 5*6 29, 5*4-5%- Aug. 11 51/4--53/8 Apr. 18 61/2-634 . 14 5*4- 19 634- Dec. 6, 5*4-53/8- 21 5*4--53/g 5*4- 25 51/4--53/8- May 4 634.-7 27, 5*4-5*4- 5*4 7 7. 31 5*4- 29 51,4-53/8- 24 7 --7 *4 51/4- 25 7-714- 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 May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 1973 Short-term 35 centers......................................... 7.35 6.52 8.05 7.63 7.85 7.29 7.61 6.83 7.34 6.52 7.19 6.30 New York City.......................... 7.04 6.22 8.05 7.39 7.76 7.08 7.38 6.59 7.14 6.33 6.97 6.13 7 Other Northeast..................... 7.71 6.89 8.36 8.00 8.08 7.53 7.89 7.04 7.77 6.93 7.52 6.65 8 North Central......................... 7.45 6.45 7.72 7.26 7.70 7.16 7.57 6.83 7.32 6.35 7.41 6.27 7 Southeast.................................. 7.37 6.76 8.03 7.73 7.80 7.33 7.53 6.89 7.11 6.65 7.16 6.41 8 Southwest................................. 7.33 6.63 7.98 7.48 7.74 7.16 7.48 6.72 7.28 6.53 7.08 6.38 4 West Coast............................... 7.25 "6.50 8.31 "7.87 7.98 "7.37 7.71 6.82 7.27 "6.41 7.06 "6.34 Revolving credit 35 centers......................................... 7.14 "6.39 7.96 "7.27 7.85 "7.06 7.46 "6.55 7.25 "6.38 7.17 "6.39 New York City.......................... 7.07 6.53 7.82 7.07 7.36 6.87 7.28 6.56 7.18 6.40 7.06 6.53 7 Other Northeast..................... 7.45 6.38 8.43 7.51 7.63 7.09 7.55 6.69 7.33 6.47 7.45 6.32 8 North Central......................... 7.40 6.25 8.61 8.50 7.99 7.14 7.66 6.54 7.22 6.29 7.37 6.18 7 Southeast.................................. 7.19 7.24 7.53 6.00 7.73 5.95 7.03 6.41 7.13 7.67 8 Southwest................................. 7.79 6.83 7.75 7.65 7.83 7.17 8.11 6.74 7.54 6.86 7.79 6.82 4 West Coast.............................. 7.17 "6.32 7.97 "7.37 7.95 "7.20 7.36 "6.51 7.23 "6.30 7.12 "6.28 Long-term 35 centers......................................... 7.66 7.11 8.17 "7.47 7.79 "7.48 7.93 7.31 7.72 7.13 7.60 7.06 New York City.......................... 7.30 6.90 7.20 6.64 7.45 7.00 7.55 7.09 7.70 6.47 7.25 6.91 7 Other Northeast.................. 8.17 7.08 8.60 7.28 7.68 7.66 8.12 7.49 7.95 6.89 8.28 6.94 8 North Central......................... 7.72 7.04 8.08 7.34 8.02 7.60 8.21 7.24 7.51 7.02 7.65 6.98 7 Southeast.................................. 8.44 8.29 7.18 7.38 7.24 7.05 8.50 8.67 9.39 7.76 8.58 8.71 8 Southwest................................. 7.79 7.88 8.39 8.20 8.20 7.97 7.66 7.37 7.68 6.62 7.82 8.45 4 West Coast.............................. 7.69 "7.18 8.72 "7.49 7.95 "7.17 7.66 "6.91 7.57 8.24 7.71 7.06 Note.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 468- 77 of the June 1971 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 bills 5 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 ; Rate Market Rate Market 1-year issues-7 days months months2 on new yield on new yield bill (mar­ 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—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 June------ 8.00 7.99 7.45 7.98 8.49 7.188 7.19 7.234 7.23 7.05 7.27 6.76 July........ 9.26 9.18 8.09 9.19 10.40 8.015 8.01 8.081 8.12 7.97 8.37 7.49 Week ending— 1973—Apr. 7.13 7.18 6.78 7.00 7.18 6.531 6.45 6.814 6.68 6.63 6.98 6.77 7.13 7.13 6.78 6.98 6.84 6.187 6.20 6.268 6.40 6.41 6.77 6.67 7.13 7.13 6.75 6.88 7.23 6.187 6.16 6.389 6.43 6.42 6.70 6.73 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 7.13 7.13 6.75 7.00 7.43 6.278 6.24 6.575 6.56 6.60 6.74 6.79 7.13 7.13 6.75 7.00 7.60 6.136 6.07 6.431 6.42 6.49 6.68 6.76 7.23 7.28 6.75 7.13 7.81 6.179 6.22 6.456 6.48 6.49 6.72 6.76 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 7.53 7.53 7.13 7.41 7.95 6.694 6.91 6.864 6.99 6.93 7.13 6.79 7.80 7.83 7.25 7.75 8.43 7.133 7.07 7.210 7.09 6.94 7.20 6.72 7.90 7.90 7.50 7.88 8.17 7.129 7.15 7.172 7.16 6.94 7.19 6.70 8.10 8.03 7.50 8.05 8.55 7.263 7.25 7.255 7.27 7.02 7.25 6.74 8.28 8.28 7.60 8.35 8.59 7.228 7.32 7.299 7.43 7.31 7.46 6.89 July 8.75 8.75 7.84 8.94 10.21 7.987 7.94 8.011 7.95 7.71 7.96 7.15 8.98 8.90 8.08 9.00 9.52 7.991 7.78 8.019 7.86 7.65 8.09 7.29 9.28 9.15 8.13 9.05 10.22 7.967 8.03 8.023 8.17 7.97 8.40 7.48 9.70 9.60 8.13 9.50 10.58 8.114 8.17 8.272 8.35 8.34 8.73 7.76 1 Averages of the most representative daily offering rate quoted by sentative of the day’s transactions, usually the one at which most trans­ dealers. actions occurred. 2 Averages of the most representative daily offering rate published by 4 Except for new bill issues, yields are averages computed from daily finance companies, for varying maturities in the 90-179 day range. closing bid prices. 3 Seven-day averages for week ending Wednesday. Beginning with 5 Bills quoted on bank-discount-rate basis. statement week ending July 25, 1973, weekly averages are based on the 6 Certificates and selected note and bond issues. daily average of the range of rates on a given day weighted by the volume 7 Selected note and bond issues. of transactions at these rates. For earlier statement weeks, the averages were based on the daily effective rate—the rate considered most repre­ Note.—Figures for Treasury bills are the revised series described on p. A-35 of the Oct. 1972 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 INTEREST RATES □ AUGUST 1973 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State and local Aaa utility By selected By Dividend/ Earnings/ rating group price ratio price ratio Period United Total i States ( t l e o r n m g ) ­ Total i Aaa Baa New ce R n e t ­ ly Aaa Baa In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c Pre­ Com­ Com­ issue offered ferred mon mon Seasoned issues 196 3 4.00 3.28 3.06 3.58 4.21 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 196 4 4.15 3.28 3.09 3.54 4.34 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 196 5 4.21 3.34 3.16 3.57 4.50 4.51 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.43 5.38 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.79 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.50 6.47 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.64 196 9 6.10 5.73 5.45 6.07 7.71 7.64 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.08 197 0 6.59 6.42 6.12 6.75 8.68 8.71 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.51 197 1 5.74 5.62 5.22 5.89 7.62 7.66 7.94 7.39 8.56 7.57 8.38 8.13 6.75 3.14 5.40 197 2 5.63 5.30 5.04 5.60 7.31 7.34 7.63 7.21 8.16 7.35 7.99 7.74 7.27 2.84 1972—July. ... 5.57 5.50 5.23 5.78 7.38 7.39 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 7.38 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 7.42 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 7.41 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 7.21 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 7.21 7.47 7.08 7.93 7.22 7.91 7.48 6.92 2.70 5.46 1973—Ja...........n 5.94 5.13 4.90 5.39 7.38 7.37 7.49 7.15 7.90 7.27 7.87 7.51 6.85 2.69 6.11 Feb........ 6.14 5.17 4.95 5.44 7.40 7.42 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 7.54 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 June.... 6.32 5.25 5.05 5.51 7.64 7.64 7.69 7.37 8.13 7.49 8.07 7.69 7.25 3.06 July .... 6.53 5.44 5.21 5.71 8.01 7.97 7.80 7.45 8.24 7.59 8.17 7.81 7.35 3.04 Week ending— 1973—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 9. 6.31 5.17 5.00 5.40 7.63 7.59 7.68 7.36 8.13 7.48 8.06 7.67 7.23 3.07 16. 6.29 5.23 5.05 5.50 7.58 7.60 7.68 7.36 8.14 7.48 8.06 7.68 7.19 2.98 23. 6.32 5.28 5.05 5.55 7.66 7.69 7.69 7.38 8.13 7.49 8.08 7.69 7.27 3.07 30. 6.36 5.31 5.10 5.60 7.73 7.72 7.72 7.40 7.14 7.51 8.09 7.71 7.29 3.09 July 7. 6.44 5.36 5.10 5.65 7.80 7.74 7.41 8.16 7.53 8.13 7.75 7.30 3.15 14. 6.43 5.45 5.25 5.70 7.92 7.85 7.78 7.44 8.22 7.55 8.17 7.79 7.33 3.03 21. 6.50 5.43 5.20 5.75 7.92 7.94 7.80 7.45 8.25 7.60 8.18 7.82 7.35 3.03 28. 6.64 5.53 5.30 5.80 8.03 8.15 7.83 7.48 8.27 7.65 8.17 7.84 7.43 2.94 Number of issues2.. . 20 121 20 30 41 30 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 5V4 hours per day, or 27 Yz 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 22i/z; 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

AUGUST 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 T^ew York Stock Exchange index ican shares) (1941-43=10) (Dec. 31, 1965 = 50) Stock change ( G t l U e o r o . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d i u al s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d i u al s­ T p t o r i a r o n t n a s ­ ­ Utility na F n i­ ce in to d t e a x l i NYSE AMEX 1963............................ 86.31 111.3 96.8 69.87 73.39 37 58 64.99 8.52 4,573 1,269 1964............................ 84.46 111.5 95.1 81.37 86.19 45,46 69.91 9.81 4,888 1,570 1965........................ 83.76 110.6 93.9 88.17 93.48 46 78 76.08 12.05 6,174 2,120 1966............................ 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 1967............................ 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968............................ 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1969............................ 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 1970............................ 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 1971............................ 67.73 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4,234 1972............................ 68.71 84.4 65.9 109.20 121.79 44.11 56.90 60.29 65.73 50.17 38.48 78.35 27.00 16,487 4,447 1972—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 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 66.0 117.50 131.08 45.23 61.73 64.26 69.96 48.44 42.28 83.45 26.50 18,146 4,775 1973—Jan.................. 65.89 86.9 66.0 118.42 132.55 42.87 60.01 64.38 70.55 45.14 41.72 81.62 25.35 18,752 4,046 Feb................. 64.09 86.1 65.5 114.16 128.50 40.80 57.52 61.52 67.67 42.34 39.95 74.47 25.34 16,753 3,690 Mar................ 63.59 84.1 65.2 112.42 126.05 39.29 55.94 60.15 66.20 40.92 39.13 72.32 24.59 15,564 2,966 Apr................. 64.39 85.7 64.9 110.27 123.56 35.88 55.34 58.67 64.41 40.57 38.97 69.42 24.02 13,900 2,981 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 June............... 62.61 85.8 64.4 104.75 117.20 34.35 54.37 55.14 60.52 33.72 37.95 63.52 22.44 12,796 2,316 July................ 60.87 83.2 63.8 105.83 118.65 35.22 53.31 56.12 61.53 34.22 37.68 68.95 22.89 14,655 2,522 Week ending— 1973—July 7........ 61.64 84.1 64.2 101.96 114.01 33.98 53.18 53.70 58.69 32.33 37.37. 64.21 22.28 10,214 1,707 14 . 61.72 83.1 63.9 104.21 116.63 35.14 53.53 55.04 60.18 33.62 37.72 67.20 22.50 14,634 2,382 21........ 61.16 83.3 64.0 106.29 119.16 35.60 53.41 56.50 61.84 34.50 38.00 70.57 22.97 16,725 2,896 28 . 60.03 83.1 63.2 108.95 122.40 35.84 53.38 58.05 63.89 35.57 37.80 71.91 23.45 17,081 3,110 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 t e 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 p r ( a o e p r n t a i e c i r t n o e ) / (t d h c o p o P h l r u u l a i a s c r s r . ­ e e s o ) f (t a d h m L o o l o u o la a s u r . n n s o t ) f C c t ( r r e p a o a n e t n c r t e t ) ­ c F c h ( e e a p n e r e s t g r ) e & l s M (y a e t a u r r s i ) ty L c p r ( e o a p r n t a i e i c t r n o 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 ^ ) f (t d a h L m o o l u o l o a a s 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—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.............. 7.51 1.09 26.6 78.4 36.7 28.3 7.54 .95 23.3 76.9 29.3 22.0 Apr.............. 7.53 1.11 26.6 78.2 36.9 28.2 7.55 .96 23.9 77.3 30.1 22.8 May............. 7.55 1.05 25.9 78.7 36.6 27.2 7.62 .93 23.5 77.5 30.0 22.3 Juner........... 7.62 1.08 26.3 78.0 35.8 27.5 7.64 .92 23.4 75.9 31.7 23.5 July.............. 7.67 1.10 26.6 78.2 36.9 28.3 7.69 .93 24.2 75.5 33.4 24.7 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT a AUGUST 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—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 May............. 7,650 6,784 866 6,540 802 224 47 20 18 2,010 1,502 413 1,564 June.............. 6,416 6,180 215 21 396 1,472 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 s c t r a e t d u i s t 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t of ( b m d a i l o l a l l n l i a o c r n e s s lars)! 34.3 56.3 9.4 5,770 1972—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 Feb......................... 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 35.8 45.0 19.1 5,670 May. 6,540 4.9 7.2 12.7 18.7 21.9 34.9 35.8 43.5 20.7 5,750 June. 6,180 4.9 7.1 13.2 17.5 22.1 35.3 Note.—Special miscellaneous accounts contain credit balances that i See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ SAVINGS INSTITUTIONS A 37 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 Total Other General classified by maturity End of period M ga o g r e t­ Other G U o .S vt . . g S l a o o t n c a v a d t t e l . o C r t a o h a n r t e d p e r o 1 ­ Cash O as t s h e e t r s l g r i e e a a t s n b i n e e e i r d s r l v i a ­ e l D i e t p s o 2 s­ lia ti b e i s li­ r c e o s a u e c n r ­ v ts e (in months) 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—May... 63,753 3,499 3,450 598 20,615 1,238 1,881 95,035 85,976 2,493 6,565 1,654 778 737 1,591 4,760 June... 64,414 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 July. .. 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.. . 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.. . 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.... 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.. . 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---- 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 Apr__ 69,426 3,831 3,388 1,080 22,598 1,582 2,089 103,994 94,217 2,589 7,189 1,904 888 725 1,395 4,912 May... 69,988 4,099 3,376 1,076 22,615 1,629 2,116 104,899 94,744 2,904 7,251 1,792 913 712 1,406 4,824 1 Also includes securities of foreign governments and international 4 Balance sheet data beginning Jan. 1972 are reported on a gross-of organizations and nonguaranteed issues of U.S. Govt, agencies. valuation-reserves basis. The data differ somewhat from balance shee- 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits data previously reported by National Assn. of Mutual Savings Bankst 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 oans 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--Apr.r............................. 227,655 11,061 4,461 3,365 3,235 105,304 82,160 23,144 75,360 7,027 17,352 11,551 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 85,187 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 Feb.................................. 242,069 11,138 4,371 3,319 3,448 115,386 89,247 26,139 77,510 7,434 18,166 12,435 Mar................................. 243,078 11,154 4,417 3,300 3,437 115,972 89,881 26,091 77,587 7,449 18,288 12,628 Apr................................. 242,562 11,455 4,566 3,388 3,501 115,181 89,710 25,471 77,258 7,522 18,420 12,726 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 □ AUGUST 1973 SAVINGS AND LOAN ASSOCIATIONS fin millions of dollars) Liabilities Mortgage Total loan com­ assets— mitments End of period M ga o g r e t s ­ I s i n m e ti v c e e u e n s s r t 1 t ­ ­ Cash Other2 lia T b o il t i a ti l e s S c a a v p i i n ta g l s wo N r e th t 3 m r B o o w n or e e y ­ d 4 p L r o o in a ce n s s s Other ou a p t t s e e t r a n i n d o d d o i 5 n f g 196 7 121,805 9,180 3,442 7,788 143,534 124.493 9,916 4,775 2,257 2,093 3,042 196 8 130,802 11,116 2,962 8,010 152,890 131,618 10,691 5,705 2,449 2,427 3,631 196 9 140,232 10,873 2,438 8,606 162,149 135,538 11,620 9,728 2,455 2,808 2,824 197 0 150,331 13,020 3,506 9,326 176,183 146,404 12,401 10,911 3,078 3,389 4,452 197 1 174,385 21,076 10,842 206,303 174,472 13,657 9,048 5,072 4,054 7,378 1972—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.., 6 208,132 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 23,943 17,605 257,798 217,026 16,133 11,336 6,548 6,755 15,009 May. 219,500 24,072 17,990 261,562 218,906 16,505 11,756 6,727 7,668 15,139 June* 222,796 23,382 18,050 264,228 222,188 16.327 12,763 6,779 6,171 14,716 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 r m c s ­ e ­ s I m nv e e n s t t s ­ p C a o d a n s e s i d ­ t h s B n a o o n n te d d s s M po b d e s e e m i r ­ ts ­ C s a to p c it k al M l g o ( a A a o g n r ) e t s ­ D n t e a u ( o L b n r t e d e e ) s s n­ c L a o ( t o o t i A p v a o ) e n e s r s ­ D t e u (L b r e e ) s n­ c L o a d ( o u A n i a s n d ) n ­ t s s D t e u (L b re e ) s n­ M l g o ( a A a o g n r ) e t s ­ B ( o L n ) ds 1967. 4,386 2,598 127 4,060 1,432 1,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968. 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969. 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1970, 10,614 3,864 105 10,183 2,332 1,607 15,502 15,206 2,030 1,755 4,974 4,799 7,186 6,395 1971. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972-—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 May.. 10,155 2,702 95 9,615 1,261 1,991 21,087 20,225 2,765 2,370 6,777 6,460 9,953 8,836 June.. 11,145 2,516 108 10,215 1,453 2,008 21,413 20,364 2,725 2,316 6,958 6,645 10,117 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

AUGUST 1973 □ FEDERALLY SPONSORED CREDIT AGENC A ■ NDING ISSUES OF FEDERALLY SPONSORED AGENCIES, JUNE 30, 1973 Cou­ Amount Cou­ Amount noun pon (millions Agency, and date of issue pon (millions Agency, and date of issue illion rate of dollars) and maturity rate of dollars) and maturity ollar Federal National Mortgage Association—Cont. Debentures: 7.20 450 Debentures: 1/2/73 -7/2/73.... 443 5.55 600 3/10/70-9/10/73........... 8.10 300 2/1/73 -8/1/73.... 578 8.40 300 6/10/71 -9/10/73........... 6.13 350 10/1/70 - 10/1/73. 100 8.40 250 12/10/70 - 12/10/73___ 5.75 500 4/2/73 - 10/1/73. . . 548 7.10 300 8/10/71 - 12/10/73......... 7.15 500 5/1/73 - 11/1/73. . . 241 6.35 300 12/11/72 - 12/10/73 .... 6.00 200 6/4/73 - 12/3/73... 406 6.45 700 12/1/71 - 3/11/74.......... 5.45 400 7.65 178 4/10/70 - 3/11/74.......... 7.75 350 5% 400 8/5/70 - 6/10/74........... 7.90 400 Federal intermediate 8.00 222 11/10/71 -6/10/74......... 5.70 350 credit banks 7.05 1,000 9/10/69 - 9/10/74......... 7.85 250 Debentures: 6.10 250 2/10/71 - 9/10/74........... 5.65 300 10/2/72 - 7/2/73 382 5 Vs 400 5/10/71 - 12/10/74......... 6.10 250 9/1/70-7/2/73. 200 8.05 265 9/10/71 - 12/10/74......... 6.45 450 11/1/72-8/1/73 545 7.95 300 11/10/70 - 3/10/75........ 7.55 300 12/4/72 - 9/4/73 551 7.15 700 10/12/71 - 3/10/75........ 6.35 600 1/2/73 - 10/1/73 606 6.50 350 4/12/71 -6/10/75........... 5.25 500 2/1/73 - 11/1/73 559 7.05 600 10/13/70 - 9/10/75........ 7.50 350 3/1/73 - 12/3/73 544 7H 300 3/12/73 -9/10/75........... 6.80 650 4/2/73 - 1/2/74. 660 6.95 200 3/10/72 - 12/10/75........ 5.70 500 7/1/71 - 1/2/74. 212 7.20 600 3/11/71 - 3/10/76........... 5.65 500 5/1/73 -2/4/74. 695 7.15 300 6/12/73 - 3/10/76........... 7.13 400 6/4/73 - 3/4/74. 664 6Va 300 6/10/71 -6/10/76........... 6.70 250 1/4/71 - 7/1/74 224 7.75 350 2/10/72-6/10/76........... 5.85 450 5/1/72 - 1/2/75. 240 7.80 200 11/10/71 - 9/10/76......... 6.13 300 1/3/72-7/1/75. 302 6.60 200 6/12/72-9/10/76........... 5.85 500 3/1/73 - 1/5/76. 261 7.30 200 7/12/71 - 12/10/76 7.45 300 12/11/72 - 12/10/76. 6.25 500 22//1133//6622 - 2/10/77.. 4% 198 Federal land banks 9/11/72 - 3/10/77 6.30 500 Bonds: 12/10/70 - 6/10/77 6.38 250 2/20/63 - 2/20/73-78 148 5/10/71 -6/10/77.. 6.50 150 1/20/70 - 7/20/73... 8.45 198 6.70 150 9/10/71 -9/12/77.. 6.88 300 8/20/73 - 7/20/73.... 7.95 350 5.30 200 6/12/73 -6/12/78.. 7.15 600 4/20/70 - 10/22/73. . 7.80 300 6.15 350 10/12/71 - 12/11/78___ 6.75 300 10/23/72 - 10/23/73.. 5.80 462 8.60 140 6/12/72-9/10/79............. 6.40 300 7/20/72 - 1/21/74... 5.55 450 7.75 150 12/10/71 - 12/10/79. . .. 6.55 350 2/20/72 - 2/20/74... 155 7.15 150 2/10/72 -3/10/80.... 6.88 250 10/20/70 - 4/22/74.. 7.30 354 2/16/73 -7/31/80.... 5.19 1 9/15/72-4/22/74.... 5.85 350 2/16/73 -7/31/80.... 3.18 9 10/21/71 - 7/27/74.. 5.85 326 1/16/73 - 10/30/80... 5.47 5 4/20/71 - 10/21/74... 5.30 300 12/11/72- 12/10/80.. 6.60 300 2/20/70 - 1/20/75... 8^8 220 6/29/72- 1/29/81.... 6.15 156 4/23/73 - 1/20/75.... 7.15 300 3/12/73-3/10/81.... 7.05 350 4/20/65 - 4/21/75. . . 4K 200 4/18/73 -4/10/81. . . . 6.59 26 2/15/72 -7/21/75.... 5.70 425 3/21/73-5/1/81......... 4.50 18 7/20/71 - 10/20/75... 7.20 300 1,347 3/12/73 - 5/1/81......... 5.77 2 4/20/72- 1/20/76.... 6% 300 1/21/71 - 6/10/81... 7.25 250 2/21/66 - 2/24/76... 5.00 123 6 8. . 0 0 0 0 2 25 0 0 0 9 6 / / 1 2 0 8 /7 /7 1 2 - - 9 5 / / 1 1 0 /8 / 2 8 . 1 ... . . . .. . . . . 5 7 . . 8 25 4 2 5 5 8 0 7 1 / / 2 2 0 2/ / 7 6 3 6 - - 4 7 /2 /2 0 0 /7 /7 6 6 .. . . . . . 6 5 % ^ 3 1 7 5 3 0 4.38 248 2/10/71 - 6/10/82.... 6.65 250 4/23/73 - 10/20/76. . . 7.15 450 7.40 250 9/11/72-9/10/82.... 6.80 200 10/27/71 - 10/20/77. 6.35 300 3/11/71 -6/10/83.... 6.75 200 5/2/66 - 4/20/78___ 5M 150 6/12/73 - 6/10/83. . . . 7.30 300 7/20/72 - 7/20/78. . . 6.40 269 8.38 250 11/10/71 -9/12/83... 6.75 250 2/20/67- 1/22/79.... 5.00 285 3.58 53 4/12/71 -6/11/84... . 6.25 200 9/15/72 -4/23/79.... 6.85 235 5.48 6 12/10/71 - 12/10/84. 6.90 250 10/23/72- 10/23/79.. 6.80 400 5.85 72 3/10/72 - 3/10/92.. . 7.00 200 1/22/73 - 1/21/80... . 6.70 300 5.92 35 6/12/72-6/10/92.... 7.05 200 2/23/71 -4/20/81.... 6.70 224 5.74 81 4/20/72 - 4/20/82.... 6.90 200 8.63 200 4/23/73 -4/20/82___ 7.30 239 not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERAL FINANCE □ AUGUST 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 i deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing Special Other balance issues Fiscal year: 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 1973........................... 232,192 246,603 -14,412 30,881 216 12,029 -207 19,275 2,459 -1,287 -3,691 Half year: 1971—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 -2,114 389 1,028 8,377 July-Dee___ 106,061 118,586 -12,525 22,037 876 "6,239 -861 17,386 "956 "1,525 -5,430 1973—Jan.-Dee.... 126,131 128,017 -1,887 8,844 -660 5,790 654 1,889 1,503 238 1,739 Month: 1972—June............... "25,592 "23,375 "2,219 -651 -370 2,975 -628 -3,368 417 "1,570 "3,136 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 May............... 16,584 20,157 -3,573 275 -43 1,968 234 -1,970 -5,924 -1,141 -1,522 June............... 28,504 20,892 7,612 803 68 3,414 -174 -2,369 4,344 414 -485 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 r b b i l t t i 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 t s c e s i s a : 3 l E p T h q u b o e b u y t ld l a a i l c l s: s c p p o G r o N r i n o p v o s v a s w o t . t r — . e - e 6 d issues Fiscal year: 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 1973........................... 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 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—June.............. 2,344 7,934 139 10,117 427,260 10,894 89,539 24,023 825 323,770 41,814 July............... 2,298 6,547 144 8,988 432,383 10,903 90,944 24,018 825 327,499 41,751 Aug............... 1,730 3,025 222 4,976 435,439 11,437 93,616 24,002 825 328,433 41,796 Sept............... 1,395 8,105 259 9,759 433,946 11,459 92,281 23,490 825 328,809 42,493 Oct................ 1,613 6,051 309 7,973 439,947 11,483 95,365 23,579 825 331,660 42,633 Nov............... 1,182 6,786 310 8,278 444,247 11,863 94,821 23,506 825 336,958 43,217 Dec................ 1,856 8,907 310 11,073 449,298 11,770 95,924 23,164 825 341,155 43,459 1973—Jan................ 2,749 8,317 310 11,376 450,068 11,787 95.024 23,332 825 342,674 43,993 Feb................ 2,073 9,401 310 11,784 454,838 11,779 95,804 23,451 825 346,537 45,400 Mar............... 2,882 9,744 309 12,935 458,606 11,806 96,413 23,632 825 349,542 45,566 Apr................ 4,162 9,683 311 14,156 457,063 11,084 96,356 23,583 825 347,383 47,905 May.............. 3,242 4,679 311 8,232 457,338 11,041 98,324 23,817 825 345,414 49,731 June.............. 4,038 8,433 106 12,576 458,142 11,109 101,738 24,093 825 343,045 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

AUGUST 1973 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C n o co rp m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period 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 p o ­ t s s s fu R n e d ­ s c E t o P r a n m t a o x a t y l e r p x l ­ s i e l b o s u y e a t m S m i n o e e d l n p n f s - l t . * i e n U m s n u p r - l. . c O e n r i t p h e 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 ei r p i e s t ­ c s . ^ Fiscal year: 1970........................................ 193,74377,41626,236 13,24090,41235,037 2,208 37,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 1971....................................... 188,39276,49024,262 14,52286,23030,320 3,535 39,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 1972........................................ 208,64983,20025,679 14,14394,73734,926 2,76044,088 2,032 4,357 3,43753,914 15,477 3,287 5,436 3,633 1973....................................... 232,19298,09727,031 21,867 103,26138,989 2,893 52,499 2,371 6,064 3,61264,546 16,272 3,175 4,898 3,944 Half year: 1971—July-Dee................... 93,18038,449 5,589 57443,465 13,262 1,448 19,643 155 1,518 1,67322,989 8,961 1,838 2,395 1,718 1972—Jan.-June................. 115,46944,751 20,090 13,56951,27221,664 1,31224,445 1,877 4,736 1,76430,925 6,516 1,449 3,041 1,915 July-Dee................... 106,061 46,058 5,784 68851,154 15,315 1,45922,493 165 2,437 1,77326,867 8,244 1,551 2,333 2,056 1973—Jan.-June................. 126,131 52,038 21,24721,179 52,10623,674 1,43430,006 2,206 3,627 1,839 37,679 8,028 1,625 2,566 1,888 Month: 1972—June........................... '25,593 '7,935 3,704 670 '10,969 8,452 185 3,682 64 92 285 4,122 1,363 252 388 '233 July............................ 15,207 7,052 548 245 7,355 1,258 187 3,727 260 289 4,277 1,442 237 334 492 Aug............................ 18,213 8,175 362 157 8,380 855 190 5,367 1,175 307 6,849 1,351 278 423 266 Sept............................ 22,183 7,305 3,794 95 11,005 5,289 324 3,529 145 63 302 4,038 1,327 237 316 295 Oct............................. 14,738 7,187 469 61 7,595 1,287 323 3,225 15 210 311 3,759 1,387 281 409 343 Nov............................ 16,748 8,425 257 69 8,613 853 294 4,044 637 287 4,969 1,452 284 487 383 Dec............................. 18,972 7,915 353 61 8,206 5,772 140 2,601 5 92 277 2,975 1,286 234 364 276 1973—Jan............................. 21,130 8,254 4,671 2712,897 1,539 158 3,833 139 174 340 4,486 1,437 289 396 244 Feb............................. 18,067 8,404 768 1,104 8,067 865 193 5,900 167 684 278 7,029 1,186 255 568 289 Mar............................ 15,987 8,748 1,494 6,833 3,409 5,208 342 4,771 186 63 320 5,340 1,244 278 489 360 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 May........................... 16,584 8,813 1,444 6,433 3,825 1,219 296 6,662 253 2,156 308 9,380 1,446 280 466 264 June........................... 28,504 9,171 3,747 597 12,321 8,927 188 4,542 145 106 291 5,085 1,397 261 317 384 Budget outlays 4 Com. Gen­ Na­ Nat­ Com­ mun. Educa­ eral Intra- Period tional Intl. Space Agri­ ural merce deve­ tion Health Vet­ Inter­ Gen­ reve­ govt. Total de­ affairs re­ cul­ re­ and lop. and and erans est eral nue trans­ fense search ture sources transp. and man­ wel­ govt. shar­ ac­ hous­ power fare ing tions 5 ing Fiscal year: 197 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 '3,786 3,422 '7,061 '3,759 11,197 '4,216 10,198 '81,536 r10,747 '20,584 '4,889 -7,858 1973'..................... 246,603 76,055 3,185 3,316 6,181 611 12,393 4,167 10,821 91,194 12,004 22,796 5,618 6,636 -8,373 19746..................... 268,665 81,074 3,811 3,135 5,572 3,663 11,580 4,931 10,110 103,709 11,732 24,672 6,025 6,035 -9,131 Half year: 1971—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 '2,034 1,645 1,062 1,807 '5,167 2,035 '5,843 '43,405 5,744 r10,534 '2,497 -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 1973—Jan.-June.. 128,017 40,705 1,545 1,640 1,565 282 6,193 1,530 5,688 47,982 6,264 12,192 2,748 4,019 Month: 1972—Jun e r23,375 '9,256 '486 292 120 520 '1,351 505 1,429 8,703 911 '1,705 '498 -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 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 May........... 20,157 6,401 136 255 -155 298 907 -148 1,066 8,124 1,017 2,165 466 3 -377 June........... 20,891 8,043 489 306 3 173 1,307 314 1,336 8,199 866 2,016 451 -2,611 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 $1,750 million retirement contributions. 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. 5 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 □ AUGUST 1973 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l s a i s l c Marketable Con­ Nonmarketable Special debt 1 Total Total Bills C c e a r t t e i s fi­ Notes Bonds 2 b v i o e b n r le t d ­ s Total 3 Foreign b S o in a n g v d s ­ s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 2.4 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 1.5 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 3.1 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 4.3 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 3.8 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 5.7 52.5 78.1 1971—Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 16.8 54.9 85.7 1972—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 June 458.1 354.6 263.0 100.1 117.8 45.1 2.3 89.4 28.5 59.9 101.7 July. 459.0 354.2 262.7 99.9 117.8 45.0 2.3 89.2 28.2 60.2 103.0 1 Includes non-interest-bearing debt (of which $620 million on July 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 a e r o n n u .S v c d s t . i t e . s B F a . n R k . s Total m C b e a o r n m c k ia ­ s l s M 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 u c ie e r ­ s ­ r c O a o t t r i h p o e n o r s ­ g S l a o o t n c v a a d t t s e l . Savi I n n g d s ividu O a t l h s er n F a i o t n a i r t n o e e n d i r g a ­ n l 1 t i O m o n r t v i h s 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—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 12.5 28.7 58.9 16.5 61.7 17.2 May............... 457.3 120.1 74.1 263.1 57.9 2.4 5.7 13.3 28.1 59.2 16.4 61.3 18.7 June............... 458.1 123.4 75.0 259.7 57.9 2.4 5.7 12.0 28.3 59.5 16.4 60.2 17.4 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the the 2 C U o n n i s te is d t s S o ta f t e s s a . vings and loan assns., nonprofit institutions, cor­ M cu a ri r t . i e 1 s 9 6 a 9 n d B ( u 2 l ) l et r i e n m . o T ve h e f r n o e m w U co .S nc . e G pt o s v t ( , 1 ) a g e e x n c c l i u e d s e a n g d u a t r r a u n s t t e e f d u n s d e s ­ porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, deposit Note.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 ea -5 rs y 5 e - a 1 r 0 s 1 y 0 ea -2 r 0 s 20 O y v e e a r rs 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 May 31............................................................. 265,919 125,697 102,953 22,744 88,222 29,620 15,996 6,385 262,971 122,803 100,061 22,742 88,223 31,111 14,477 6,357 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 May 31.................................................... 20,246 1,699 395 1,304 7,190 5,213 4,534 1,612 June 30.................................................... 20,081 1,656 386 1,270 7,129 5,369 4,319 1,609 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 May 31.................................................... 74,128 36,424 33,581 2,843 26,833 9,243 1,480 149 June 30.................................................... 75,022 37,106 34,246 2,860 26,956 9,358 1,417 184 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 May 31.................................................... 171,545 87,574 68,977 18,597 54,199 15,164 9,982 4,624 June 30.................................................... 167,868 84,041 65,429 18,612 54,138 16,384 8,741 4,564 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 Mav 31............................................ 45,159 14,547 6,784 7,763 25,061 4,479 900 171 June 30............................................ 45,139 14,561 6,812 7,749 24,884 4,728 792 175 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 May 31............................................ 2,425 484 208 276 1,117 349 321 155 June 30............................................ 2,351 490 229 261 1,063 373 276 149 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 May 31............................................ 4,937 787 261 526 1,038 881 1,645 585 June 30............................................ 4,932 731 212 519 1,030 1,271 1,319 581 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 May 31............................................ 5,433 4,084 2,429 1,655 1,207 98 38 6 June 30............................................ 4,599 3,287 1,426 1,861 1,170 91 39 12 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 Mav 31............................................ 2,767 795 373 422 1,148 504 245 75 June 30............................................ 2,674 712 310 402 1,135 534 214 80 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—May 31............................................ 10,235 5,964 5,023 941 1,841 781 1,212 436 10,406 5,904 4,996 908 1,949 1,016 1,095 441 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—May 31............................................ 100,589 60,913 53,899 7,014 22,787 8,072 5,621 3,196 June 30............................................ 97,767 58,356 51,444 6,912 22,907 8,371 5,006 3,126 Note.—Direct public issues only. Based on Treasury Survey of about 90 per cent by the 5,614 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 464 nonfinancial corporations and 486 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 □ AUGUST 1973 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total securities Within 1-5 5-10 Over U.S. Govt, U.S. Govt, Com­ All 1 year years years 10 years securities securities mercial other1 dealers brokers banks 1972—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 May................................ 3,187 2,390 322 323 153 661 543 1,057 927 687 June................................ 2,969 2,335 289 228 118 593 622 975 778 732 Week ending— 1973—June 6......................... 3,506 2,786 368 244 108 673 762 1,101 971 939 13......................... 2,984 2,279 300 282 123 629 715 950 690 817 20......................... 2,436 2,057 163 120 96 513 388 900 635 754 27......................... 2,654 2,112 269 184 90 543 465 887 760 539 July 4......................... 3,578 2,714 420 282 161 633 908 1,132 904 652 11......................... 3,091 2,479 338 225 49 593 621 1,025 852 656 18......................... 2,807 2,236 299 198 73 590 531 950 737 798 25......................... 2,729 2,055 367 247 60 554 587 915 673 860 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 t a h r in y 1 ea -5 rs y 5 ea -1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e i o u e 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—June................. 3,733 3,903 -55 -99 -16 532 1972—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 1973—Jan................... 4,744 4,959 -53 -259 97 281 1973—Jan.............. 4,520 1,346 794 932 1,449 Feb.................. 3,394 3,365 -9 -1 39 202 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 -9 274 3,032 935 513 311 1,273 May............ 2,626 2,596 -324 179 175 356 May............ 2,667 674 452 252 1,291 June................. 2,976 2,818 -165 91 232 744 June............ 3,769 1,242 690 431 1,406 Week ending— Week ending— 1973—May 2, , 2,407 2,668 -204 -33 -24 230 1973—May 2... 2,571 607 464 272 1,229 9 2,706 2,408 -202 332 168 191 9. .. 2,424 382 392 252 1,398 16,,, , 2,486 2,338 -336 289 196 335 16. .. 2,597 493 564 150 1,390 23 2,167 2,346 -432 63 191 393 23. .. 2,596 689 413 259 1,235 30. . , 3,107 3,203 -367 52 219 518 30. .. 2,939 1,011 461 345 1,121 June 6......... 3,369 3,315 -299 76 276 745 June 6... 4,053 1,407 617 329 1,701 13 3,274 3,140 -205 92 248 852 13... 4,218 1,449 736 460 1,574 20......... 2,948 2,718 -110 119 221 804 20. .. 3,828 1,262 616 455 1,495 27......... 2,505 2,269 -63 94 204 636 27. .. 3,180 986 689 462 1,042 Note.—The figures include all securities sold by dealers under repur­ 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of Note.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than Note to the table on the left. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ U.S. GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JULY 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 Aug. 2, 1973 4.302 Jan. 3,1974___ 1,701 Dec. 31, 1974. •57/8 2,102 Aug. 15, 1973.... .4 3,894 Aug. 9, 1973 4,305 Jan. 10,1974___ 1,702 Feb. 15, 1975.....534 4,015 Nov. 15, • 41/s 4,336 Aug. 16, 1973 4,304 Jan. 15, 1974.... 1,804 Feb. 15, .57/8 1,222 Feb. 15, 1974....• 41/s 2,466 Aug. 23, 1973 4.302 Jan. 17, 1974___ 1,701 Apr. 1, .1V4 8 May 15, 1974.....4 Va 2,849 Aug. 28, 1973 1,803 Jan. 24,1974___ 1,702 May 15, 1975..., .57/8 1,776 Nov. 15, 1974....• 37/s 1,214 Aug. 30, 1973 4.302 Feb. 12, 1974.... 1,801 May 15, 1975.... .6 6,760 May 15, 1975-85..41/4 1,204 Sept. 6, 1973 4.301 Mar. 12, 1974.... 1,790 Aug. 15, 1975....• 57/s 7,679 June 15, 1978-83..m 1,490 Sept. 13, 1973 4.303 Apr. 9, 1974.... 1,802 Oct. 1, 1975.....1% 30 Feb. 15, 1980.....4 2,577 Sept. 20, 1973 4.302 May 7, 1974.... 1,800 Nov. 15, 3,115 Nov. 15, 1980....• 3 Vi 1,897 Sept. 25, 1973 1,801 June 4,1974 1,801 Feb. 15, 1976.....6% 3,739 Aug. 15, 1981 .... .7 807 Sept. 27, 1973 4,310 July 2,1974___ 1,802 Feb. 15, 1976.....57/8 4,945 Feb. 15, .63/8 2,702 Oct. 4, 1973 4.301 Apr. 1, 1976.....1% 27 Aug. 15, 1984.....63/8 2,353 Oct. 11, 1973 4.301 May 15, 1976.....534 2,802 May 15, • 3 Vi 972 Oct. 18, 1973 4.301 May 15, 1976.....6^ 2,697 Nov. 15, •61/8 1,216 Oct. 23, 1973 1,802 Aug. 15, 1976.....7% 4,194 Aug. 15, 1987-92..414 3,726 Oct. 25, 1973 4.301 Aug. 15, 1976.... .6 Vi 3,883 Feb. 15, 1988-93..4 236 Nov. 1, 1973 1,801 Oct. 1, 1976.....1% 11 May 15, 1989-94..41/s 1,489 Nov. 8, 1973 1,802 Nov. 15, 1976.....61/4 4,325 Feb. 15, • 3Vi 4,124 Nov. 15, 1973 1,693 Treasury notes Feb. 15, 1977.....8 5,163 Feb. 15, 1993... ..634 627 Nov. 20, 1973 1,802 Aug. 15, 1973.........8H 1,839 Apr. 1,1977.... -1 Vi 5 Feb. 15, 1995.... .3 902 Nov. 23, 1973 1.701 Oct. 1, 1973...........UA 30 Aug. 15, 1977.....734 2,264 May 15, 1993-98..7 692 Nov. 29, 1973 1.702 Feb. 15, 1974.........7% 2,960 Oct. 1, 1977.....lJ/2 17 Nov. 15, .3 Vi 3,235 Dec. 6, 1973 1,707 Apr. 1, 1974...........m 34 Feb. 15, 1978, ...6% 8,389 Dec. 13, 1973 1.701 May 15, 1974.........7% 4,334 Apr. 1, 1978 , • 1 Vi 15 Dec. 18, 1973 1,800 Aug. 15, 1974.........55/8 10,284 Nov. 15, 1978.....6 8,207 Convertible bonds Dec. 20, 1973 1.701 Sept. 30, 1974.........6 2,060 Aug. 15, 1979.....6% 4,559 Investment Series B Dec. 27, 1973 1.701 Oct. 1, 1974............m 42 Nov. 15, 1979.... •65/8 1,604 Apr. 1, 1975-80.•23/4 2,275 Nov. 15, 1974..........5V4 5,442 May 15, 1980,,.. •67/s 7,265 Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a o id n a g d d e s s i U ti t e i s l­ 4 H in o g u s s­ V a e a n t i e d s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1964., 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965., 11,329 7,177 3.517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966., 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967., 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968., 16,596 9,269 6.517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969. 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 1970. 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971. 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1972—May. 2,017 990 1,023 374 850 792 1,950 657 214 306 67 705 June. 2,270 989 1,064 209 246 1,226 799 2,000 347 150 533 393 576 July. 1,805 1,322 481 647 467 690 1,796 327 121 223 154 971 Aug. 1,966 820 1,138 468 897 600 1,931 444 111 429 162 784 Sept. 1,726 663 803 257 298 1,016 414 1,609 238 107 590 270 404 Oct.. 2,200 1,662 533 487 689 1,025 2,147 444 162 409 52 1,082 Nov. 1,862 1,147 711 425 572 866 1,762 312 215 365 56 814 Dec.. 1,797 872 653 *268 147 754 895 1,507 351 21 204 332 599 1973—Jan.. 1,978 1,149 826 602 452 924 1,847 369 215 418 117 729 Feb.. 1,481 766 714 47 552 824 1,381 365 63 399 10 544 Mar. 2,353 1,217 821 310 613 872 868 2,100 371 152 426 355 797 Apr.. 1,772 858 906 159 704 908 1,711 300 8 432 88 883 May. 1,990 813 1,169 291 957 740 1,975 297 231 516 222 707 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 □ AUGUST 1973 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o .S vt . . an S d t a lo te c al Others Total Govt.2 agency3 (U.S.)4 Total P o u ff b e l r i e c d ly 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—May.......... 9,547 2,360 1,500 1,924 165 3,597 2,450 1,676 774 130 1,017 June.......... 7,588 536 300 2,222 190 4,341 2,556 1,336 1,218 612 1,174 July........... 6,921 496 1,000 1,784 59 3,583 2,465 1,807 657 206 913 Aug........... 7,136 606 1,685 1,898 54 2,893 1,945 1,523 421 206 743 Sept........... 5,635 474 650 1,701 90 2,720 1,651 862 789 305 765 Oct............ 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............. 6,523 1,199 993 1,889 116 2,327 1,276 989 287 137 913 Feb............ 7,325 1,603 2,261 1,445 53 1,962 957 641 316 172 832 Mar........... 9,029 606 1,826 2,304 359 3,933 2,116 1,315 802 833 2,729 Apr.r........ 6,552 564 1,640 1,688 176 2,484 1,726 938 788 200 558 May.......... 11,066 3,353 3,442 1,795 8 2,468 1,660 1,049 611 186 622 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a st n a 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—May...................................... 607 154 193 281 142 71 381 357 376 16 751 270 June...................................... 468 299 181 341 171 15 1,018 520 368 431 349 179 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....................................... 772 125 177 327 317 6 1,076 1,351 548 668 1,462 1,397 Apr r ....................... 260 22 234 139 91 1 150 369 258 733 228 369 12 27 138 214 8 361 414 349 18 339 229 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ- 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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--IV................ 11,488 2,521 8,967 8,019 2,084 5,935 3,469 437 3,032 1972--I................... 10,072 2,691 7,381 6,699 2,002 4,698 3,373 690 2,683 II................. 11,514 2,389 9,123 7,250 2,191 5,050 4,264 198 4,066 Ill................ 9,776 2,212 7,564 6,118 1,603 4,515 3,659 609 3,049 IV................. 10,944 2,932 8,012 6,998 2,207 4,790 3,946 725 3,220 1973—-I................... 8,219 2,806 5,412 4,198 1,781 2,417 4,020 1,025 2,995 Type of issues Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d 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—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 1973—11................. 135 63 -174 377 127 -43 844 1,170 520 185 965 1,244 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—June.. 393 544 -151 57,708 3,015 54,693 July. . 398 424 -26 56,932 3,219 53,713 1961............... 2,951 1,160 1,791 22,789 980 21,809 Aug... 391 582 -191 58,186 3,375 54,811 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 Sept... 310 442 -132 57,193 3,395 53,798 1963............... 2,460 1,504 952 25,214 1,341 23,873 Oct.. . 384 411 -27 57,525 3,719 53,806 Nov... 387 645 -258 59,854 3,549 56,305 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Dec.. . 449 619 -170 59,831 3,035 56,796 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 1973—Jan. .. 535 666 -131 56,946 3,015 53,931 Feb... 327 530 -203 54,083 3,375 50,708 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 Mar... 519 531 -12 53,377 3,774 49,603 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 Apr... 300 452 -120 50,837 3,837 46,464 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 May.. 285 446 -161 48,588 4,154 44,434 June.. 303 349 -46 48,127 4,164 43,963 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 □ AUGUST 1973 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a f o x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a n a t l s i l p o o u i n t w m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d fi t i t e s s d ­ co c a n t a l i s l p o o u n i w t m a ­ l p ­ ances1 ances 1 1966................ 84.2 34.3 49.9 20.8 29.1 39.5 1971—Ir.... 80.8 37.0 43.8 25.3 18.5 58.8 1967................ 79.8 33.2 46.6 21.4 25.3 43.0 II'.... 85.5 38.4 47.1 25.1 22.0 59.8 III**... 87.0 38.0 49.0 25.2 23.7 61.0 1968................ 87.6 39.9 47.8 23.6 24.2 46.8 l\r... 86.9 36.4 50.6 24.9 25.7 62.1 1969................ 84.9 40.1 44.8 24.3 20.5 51.9 1970r............. 74.0 34.8 39.3 24.7 14.6 56.0 1972—I'. ... 92.8 40.6 52.2 25.7 26.5 63.4 1971^............. 85.1 37.4 47.6 25.1 22.5 60.4 94.8 41.4 53.4 25.9 27.5 66.2 1972 '............. 98.0 42.7 55.4 26.0 29.3 65.9 III'... 98.4 42.9 55.6 26.2 29.4 66.0 IV'... 106.1 45.9 60.3 26.4 33.9 68.0 1973—!»■-__ 119.6 52.7 66.9 26.9 40.0 69.3 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonall y accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 196 8 182.3 426.5 48.2 11.5 5.1 168.8 166.0 26.9 244.2 6.4 162.4 14.3 61.0 196 9 185.7 473.6 47.9 10.6 4.8 192.2 186.4 31.6 287.9 7.3 196.9 12.6 76.0 1970—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 III 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_I.. 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 III 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 III 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 1973—1.. 231.4 577.1 61.0 10.4 3.2 234.0 225.9 42.5 345.7 4.1 218.1 18.6 104.9 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 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 th er n C i o c m at m ion u s ­ Other1 T A (S o . . R t A a . . ) l 1969.......................... 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970......................... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 1971......................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972......................... 88.44 15.64 15.72 2.45 1.80 2.46 1.46 14.48 2.52 11.89 20.07 1973 2........................ 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

AUGUST 1973 □ REAL ESTATE CREDIT A 49 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage holders2 commercial properties5 type6 E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n i c i n i s o a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i t a d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ t F u in t i c n i i s o a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 r ­ h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ Total tu F i t n i i n s o a t n i n ­ s . 1 O h e t o r h l s d er ­ w F u 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 1964........... 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965........... 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966........... 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967........... 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968........... 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 93.4 276.6 1969............ 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.7 43.2 129.0 105.5 23.5 100.2 295.7 1970............ 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 32.6 131.1 291.4 1973—I*.. . 579.6 463.1 47.2 69.3 36.2 10.8 25.4 543.4 353.9 296.2 57.7 189.4 156.1 33.3 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) Government- All residential Multifamily i underwritten Con­ E pe n r d io o d f Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i c n in i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in re A ­ d - an g V u te A a e r - d ­ 1 ti v o e n n a ­ l tutions tutions 1964.................................. 197.6 69.2 38.3 30.9 128.3 1963................ 211.2 176.8 34.5 29.0 20.7 8.3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 212.9 73.1 42.0 31.1 139.8 223.6 76.1 44.8 31.3 147.6 1965................ 250.1 213.2 36.9 37.2 29.0 8.2 1967................................... 236.1 79.9 47.4 32.5 156.1 1966................. 264.0 223.7 40.3 40.3 31.5 8.8 1968.................................. 251.2 84.4 50.6 33.8 166.8 1 1 9 96 6 7 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 28 9 0 8 . . 0 6 2 2 5 3 0 6 . . 8 6 4 47 3 . . 8 4 4 4 3 7. . 3 9 3 34 7. .7 7 9 9 . . 2 7 2 2 8 6 0 6. . 8 2 9 9 7 0 . . 2 2 5 5 4 9 . . 5 9 3 3 5 7. . 3 7 1 1 7 8 6 2. . 9 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 1971—11........................... 290.9 100.4 62.8 37.6 190.5 Ill.......................... 299.7 102.9 64.4 38.5 196.8 1971—11......... 353.1 289.9 63.2 62.1 49.2 12.9 IV.......................... 307.8 105.2 65.7 39.5 202.6 Ill----- 364.0 298.4 65.6 64.3 50.4 13.9 IV........ 374.7 306.1 68.6 66.8 52.0 14.9 314.1 107.5 66.8 40.7 206.6 II........................... 324.6 109.6 67.6 42.0 215.0 1972—1........... 382.9 312.9 70.0 68.8 53.3 15.4 335.8 111.5 68.4 43.1 224.3 I II l . l . . . . . . . . . . . . . . . 4 3 0 9 9 5 . . 3 8 3 3 3 2 6 4 . . 1 1 7 7 3 1 . . 2 7 7 7 3 1 . . 5 3 5 5 6 5 . . 9 3 1 1 6 6 . . 6 0 IV*........................ 346.1 112.9 68.2 44.7 233.1 IV.. 422.5 347.9 74.6 76.4 59.1 17.3 1973—1*........................... 353.9 1973—I*........ 432.6 357.3 75.3 78.7 61.1 17.6 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 t v a e l 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 i u v r e e 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 □ AUGUST 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 196 4 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40.556 36,487 12,287 11,121 13,079 4,016 53 196 5 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12.033 19,146 6,592 117 196 9 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970_I V, 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 III 95,048 59,976 8,515 3,118 48,343 30,415 4,657 65,901 55,889 16,130 12,463 27,296 9,951 61 IV 99,314 62.782 8,495 3,203 51,084 31,751 4,781 67.556 57,140 16,013 12,622 28,505 10,354 62 1973—1.. 103,314 65,192 33,060 5,062 68,920 58,169 10,683 68 1 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 ur A e - d a g n V u t A a e r e - - d Other i Farm Total Total in F s H ur A e - d a g n V u t A a ee 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—Mar....................................... 587 500 30 18 452 87 75,398 69,863 10,595 4,930 54,338 5,535 Apr.r ................................. 485 416 33 14 382 56 75,360 69,813 10,541 4,905 54,367 5,547 May...................................... 602 542 15 13 514 60 75,493 69,941 10,467 4,873 54,601 5,552 June...................................... 708 643 31 21 591 65 75,547 69,969 10,391 4,838 54,740 5,578 July....................................... 655 605 19 25 561 50 75,626 70,031 10,314 4,811 54,906 5,595 Aug....................................... 743 682 19 21 642 61 75,723 70,105 10,224 4,776 55,105 5,618 Sept....................................... 708 663 22 14 627 45 75,813 70,195 10,139 4,734 55,322 5,618 Oct........................................ 718 673 10 16 647 45 75,952 70,323 10,053 4,700 55,570 5,629 Nov....................................... 803 746 28 13 705 57 76,207 70,567 10,000 4,668 55,899 5,640 Dec........................................ 1,830 1,723 16 18 1,689 107 77,319 71,640 9,944 4,646 57,050 5,679 1973—Jan......................................... 711 649 16 20 613 62 77,481 71,856 9,901 4,630 57,325 5,625 Feb........................................ 603 542 27 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 Apr........................................ 702 624 20 22 582 78 77,258 71,611 9,708 4,572 57,331 5,647 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

AUGUST 1973 □ REAL ESTATE CREDIT A 51 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Averages Total Period N of u l m oa b n e s r ( c m o ( a m d i m l o l m i l o o la u i n t r n t s s e t ) o d f ( o th a f m o L d u o o o s l a u l a n a n n r t d s ) s ( C p in o e r r t n e a t c r t r e e e a n s c t t t ) (y M rs a . t / u m r o it s y .) (p t L o e r r - a o v c t a a i e n o l n - u t e ) C (p a t e p i r o it n c a e l r i n z a t a t ) e ­ co D r v a e e t r b io 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—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 9.6 246 399.6 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 July................. 170 421.2 2,478 8.56 23/0 74.5 9.5 1.31 9.8 Aug.................. 178 515.7 2,897 8.54 23/0 74.9 9.5 1.27 9.9 Sept................. 152 354.1 2,329 8.58 23/4 75.7 9.5 1.28 9.8 Note.—American Life Insurance Association 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 n p d o si o ts f Period h N o e m w e Home FHA- VA- Con­ Total t S e h r o m r t i ­ t L er o m ng ­ 2 period) Total 1 con­ pur­ Total 2 in- guar­ ven­ struc­ chase sured 3anteed 3 tional tion 1965......................... 5,007 4,335 5,997 3,074 2,923 1,043 3,804 2,866 6,935 5,006 1,929 1,036 1965. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1967......................... 1,527 4,076 4,386 3,985 401 1,432 1966. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1968......................... 2,734 1,861 5,259 4,867 392 1,382 1969......................... 5,531 1,500 9,289 8,434 855 1,041 1967. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1970......................... 3,256 1,929 10,615 3,081 7,534 2,331 1968. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 2,714 5,392 7,936 3,002 4,934 1,789 1969. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1972......................... 4,790 4,749 7,979 2,961 5,018 2,104 1970. 21,383 4,150 10,237 150,331 10,178 8,494 131,659 1971. 39,Ail 6,835 18,811 174,385 13,798 10,848 149,739 1972-May............. 260 320 5,853 2,019 3,835 1,789 June............. 420 198 6,074 1,944 4,130 1,746 1972--June.. 5,449 872 2,920 188,884 15,019 12,293 161,572 July............. 285 222 6,138 1,990 4,148 1,497 July... 4,572 743 2,515 191,642 15,153 12,606 163,883 Aug.............. 406 249 6,295 2,083 4,212 1,442 Aug... 5,379 803 3,087 194,955 15,263 12,892 166,800 Sept............. 631 189 6,736 2,307 4,429 1,443 Sept... 4,689 739 2,587 197,881 15,342 13,098 169,441 542 233 7,045 2,440 4,605 1,334 Oct___ 4,522 761 2,423 200,554 15,378 13,334 171,842 Nov............. 445 246 7,245 2,520 4,725 1,371 Nov... 4,393 714 2,307 203,266 15,490 13,544 174,232 Dec.............. 984 251 7,979 2,961 5,018 2,104 Dec.. . 4,591 667 2,167 206,387 15,639 13,764 176,964 1973—Jan............... 332 480 7,831 2,805 5,025 1,306 1973--Jan.... 3,702 590 1,970 208,132 29.,581 178,551 Feb.............. 415 302 7,944 2,774 5,170 1,321 Feb.. . 3,710 614 2,019 210,260 29,,751 180,509 Mar............. 764 288 *■8,421 2,975 5,446 1,290 Mar... 4,990 887 2,685 213,259 30,,045 183,214 1,187 178 '9,429 3,450 5,979 1,142 Apr.. . 4,989 886 2,762 216,250 30,,182 186,068 May............ 915 187 10,156 3,428 6,728 1,261 Mayr. 4,477 931 3,141 219,500 30.,296 189,204 June.. 5,713 898 3,465 222,796 30.,436 192,360 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 includer 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 □ AUGUST 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 End of ( p d e u r r io in d g ) Date of auction M am or o t u g n ag ts e Av y e ie r l a d ge M am or o t u g n ag ts e Av y e ie r l a d ge period Total F su H in re A - d - a g n V u t A a e r e - - 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 t h e m e r o n m m r ts t i ­ ) t­ Offered ce A p c te ­ d c m ( o s t h e m e r o n m m r ts t i ­ ) t­ 1 1 1 9 9 9 6 6 6 7 9 8 1 7 5 0 , , , 1 5 9 6 2 5 7 2 0 5 7 4 , , , 1 0 6 2 4 8 1 8 0 2 3 1 , , , 0 2 4 4 7 7 6 0 4 4 1 1 , , , 1 4 9 2 0 4 1 0 4 12 6 2 1 , , . 6 6 7 9 3 3 6 2 0 3 1 , , 5 2 5 3 8 01 9 7 In m do il l l l i a o r n s s of per I n ce nt In m do il l l l i a o r n s s of per I n ce nt 197 0 15,502 11,071 4,431 5,078 8,047 5,203 1 19 9 7 7 1 2 1 1 9 7 . . 7 7 9 9 1 1 U,624 5* i ii 3 3 , , 6 5 8 7 4 4 2 3 1 3 3 6 4,986 5,694 1972—Dec. 26 108.7 66.3 7.69 1973—Feb. 5.... 128.7 65.4 7.71 1972-June. 18,628 13,952 4,670 223 610 6,362 6 100.9 62.9 7.89 July.. 18,740 14,013 4,714 258 515 6,471 20.... 110.3 71.6 7.73 Aug.. 19,023 14,188 4,816 427 466 6,309 21 66.0 49.6 7.92 Sept.. 19,295 14,380 4,888 401 755 6,451 Oct. . 19,438 14,462 4,939 265 887 6,654 Mar. 5.... 170.8 107.7 7.75 Nov.. 19,619 14,558 5,016 315 388 6,562 6 60.3 44.3 7.95 Dec.. 19.791 14,624 5,112 307 1,086 5,440 19.... 297.3 168.7 7.81 21 86.8 56.4 8.02 1973-Jan... 19,982 14,743 5,170 225 29 392 6,943 Feb.. 20,181 14,872 5,223 218 493 6,911 Apr. 2r... 234.6 145.9 7,86 Mar.. 20,571 15,201 5,259 326 934 8,165 3 111.9 81.6 8.11 Apr.. 20.791 15,389 5,269 174 1,211 8,742 16r... 216.6 190.7 7.89 May. 21,086 15,581 5,335 330 9,312 17 iii.o 88.4 8.17 June. 21,413 15,768 5,411 516 9,778 30.... 261.2 185.9 7.92 128.9 88.2 8.23 Note.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA’s free market auction system, and through the FNMA-GNMA Tandem Plan (Program 18). GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY (In millions of dollars) Mortgage Mortgage Mortgage holdings transactions commitments (during End of period) period FHA- VA- Made Out Total su in re ­ d a g n u t a e r e - d c P ha u s r e ­ s Sales d p u er r i i o n d g st i a n n g d­ 196 7 3,348 2,756 592 860 1,045 1,171 196 8 4,220 3,569 651 1,089 1 867 1,266 196 9 4,820 4,220 600 827 615 1,131 197 0 5,184 4,634 550 621 897 738 197 1 5,294 393 197 2 5.113 1972-June. 5,249 July.. 5,301 Aug.. 5,405 Sept.. 5,278 Oct... 5,203 Nov.. 5,152 Dec.. 5.113 1973-Jan.. 5,117 Feb.. 4,984 Mar.. 4,663 Apr.. 4,439 May. 3,980 June. 3,908 £ £ —<<s oo 258.3 187.7 7.96 117.6 84.4 8.31 212.4 140.0 8.00 113.3 74.0 8.39 June 11. . . 184.5 142.2 8.04 110.1 74.1 8.44 25. . . 199.3 118.7 8.09 95.0 69.4 8.51 July 9.... 539.0 244.8 8.38 108.0 72.5 8.67 23.... 351.4 181.4 8.54 119.0 61.7 8.79 Aug. 6___ 458.5 201.9 8.71 154.3 77.4 8.98 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. GNMA MORTGAGE-BACKED SECURITY PROGRAM (In millions of dollars) Pass-through securities Bonds Period sold Applications Securities received issued 197 0 1,126.2 452.4 1,315.0 197 1 4,373.6 2,701.9 300.0 197 2 3,854.5 2,661.7 1972—June 245.8 193.2 July. 135.5 145.8 Aug. 548.3 140.3 Sept. 192.0 130.9 Oct.. 237.8 164.1 Nov. 226.4 138.2 Dec. 440.9 299.8 1973—Jan.. 515.7 323.3 Feb., 167.2 216.8 Mar. 339.4 139.9 Apr. 467.8 '182.1 May 563.3 338.8 June 243.0 315.3 Note.—GNMA data. Under the Mortgage-Backed Security Program, GNMA guarantees the timely payment of principal and interest on both pass-through and bond-type securities, which are backed by a pool of mortgages insured by FHA or Farmers Home Admin, or guaranteed by VA and issued by an approved mortgagee. 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

AUGUST 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 ffe L c B ti B ve s r e a r t ie e s ) ( H s F e H r U ie A D s ) o i n n Y s F u ie r H l e d A d - Period Mortgages Pro­ P e r r o ty p­ Mortgages New Existing New l h o n o a e m w ns e Total h N om ew es h is o E t m i x n ­ e g s jects 1 m p i r e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n ­ e g s homes homes homes 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 1971............. 14,689 3,900 6,475 3,641 674 5,961 1,694 4,267 1972—July............. 7.58 7.50 7.65 7.54 1972............. 12,320 3,459 4,608 3,448 805 8,293 2,539 5,754 Aug.............. 7.59 7.52 7.65 7.55 Sept.............. 7.57 7.55 7.70 7.56 1972—May. 913 259 369 229 56 613 189 424 Oct............... 7.62 7.57 7.70 7.57 June. 1,077 271 372 363 71 858 243 615 Nov.............. 7.64 7.57 7.70 7.57 July.. 900 261 374 218 47 675 183 492 Dec.............. 7.66 7.59 7.70 7.56 Aug.. 1,018 310 440 201 67 776 224 552 Sept.. 949 245 340 287 77 758 212 546 1973—Jan............... 7.68 7.68 7.70 7.55 Oct... 862 255 343 170 94 720 204 516 Feb.............. 7.70 7.72 7.75 7.56 Nov.. 1,001 261 331 312 97 790 246 544 Mar............. 7.68 7.69 7.80 7.63 Dec.. 964 190 245 444 85 715 220 495 Apr.............. 7.71 7.70 7.90 7.73 May............ 7.71 7.77 7.95 7.79 1973—Jan... 834 254 324 197 59 681 218 463 Juner........... 7.79 7.79 8.05 7.89 Feb... 682 162 235 233 52 592 187 405 July............. 7.84 7.84 Mar.. 954 195 268 426 65 596 185 411 Apr.. 637 151 223 189 74 621 187 434 May. 158 228 103 634 198 436 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 F V H A A­ t C i v o e o n n n a ­ ­ l c P h u as 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—June........ 1,415 1,344 71 194 97 117 313 1970—1........... 2.96 2.14 .52 .30 .31 July......... 1,475 1,374 100 74 11 75 298 II......... 2.83 2.10 .45 .28 .31 Aug......... 1,498 1,394 104 107 75 109 263 Ill___ 3.10 2.26 .53 .31 .31 Sept......... 1,545 1,408 137 66 13 136 318 IV........ 3.64 2.67 .61 .36 .33 1,631 1,439 192 102 9 189 371 Nov......... 1,744 1,491 253 128 10 89 293 1971—1........... 3.21 2.26 .56 .39 .40 Dec.......... 1,790 1,503 287 143 87 93 198 II ........ 3.27 2.36 .53 .38 .38 Ill........ 3.59 2.54 .62 .43 .41 1973—Jan........... 1,761 1,517 244 76 99 142 226 IV........ 3.93 2.82 .65 .46 .46 Feb.......... 1,677 1,535 142 76 150 166 300 Mar......... 1,718 1,589 128 119 68 141 295 1972—1........... 3.16 2.21 .58 .37 .50 Apr.......... 1,784 1.646 138 126 51 193 343 II......... 3.27 2.38 .53 .36 .48 May........ 1,906 1,695 211 147 17 187 344 Ill........ 3.82 2.74 .65 .43 .52 T1 VV . 11 6i* \ ( 4 4 . . 6 6 5 6 3 3 . . 4 4 1 2 . . 7 7 9 8 . . 4 4 6 5 . .4 5 8 0 Note.—FHLMC data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings in­ 1 First line is old series; second line is new series. clude loans used to back bond issues guaranteed by GNMA. Commitment data cover the conventional and Govt.-underwritten loan programs. Note.—Mortgage Bankers Association of America data from 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 □ AUGUST 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.j........................................ 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-—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- 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 May................................ 164,277 133,531 47,518 41,096 6,541 38,376 30,746 12,817 8,319 9,610 June................................ 167,083 136,018 48,549 41,853 6,688 38,928 31,065 12,990 8,555 9,520 i Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “Other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 Note,—Consumer credit estimates cover loans to individuals for house- and Bulletins for Dec. 1968 and Oct. 1972. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Finance Mis­ Auto­ Other Total mercial compa­ Credit cellaneous Total mobile retail banks nies 1 unions lenders 1 dealers 2 outlets 1940, 5,514 3,918 1,452 2,278 171 17 1,596 167 1,429 1945. 2,462 1,776 745 910 102 19 686 28 658 1950. 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955. 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960. 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965. 70,893 61,102 28,962 23,851 7,324 965 9,791 315 9,476 1966. 76,245 65,430 31,319 24,796 8,255 1,060 10,815 277 10,538 1967. 79,428 67,944 33,152 24,576 9,003 1,213 11,484 287 11,197 1968. 87,745 75,727 37,936 26,074 10,300 1,417 12,018 281 11,737 1969. 97,105 83,989 42,421 27,846 12,028 1,694 13,116 250 12,866 1970 102,064 88,164 45,398 27,678 12,986 2,102 13,900 218 13,682 1971 111,295 97,144 51,240 28,883 14,770 2,251 14,151 226 13,925 1972 127,332 111,382 59,783 32,088 16,913 2,598 15,950 261 15,689 1972--June...................................................... 116,365 102,909 54,883 29,722 15,786 2,518 13,456 243 13,213 July........................................................ 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 Mar....................................................... 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 May...................................................... 133,531 118,165 63,707 33,859 17,832 2,767 15,366 284 15,082 June...................................................... 136,018 120,450 64,999 34,367 18,269 2,815 15,568 289 15,279 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

AUGUST 1973 □ CONSUMER CREDIT A 55 MAJOR HOLDERS OF INSTALMENT CREDIT (In millions of dollars) Commercial banks Finance companies 1 End of Automobile Other consumer Repair Other consumer Repair period paper goods paper and Per­ Auto­ goods paper and Per­ Total modern­ sonal Total mobile modern­ sonal ization loans paper ization loans Pur­ Direct Mobile Credit Other loans Mobile Other loans chased homes cards homes 1940............. 1,452 339 276 232 165 440 2,278 1,253 159 193 673 1945............. 745 66 143 114 110 312 910 202 40 62 606 1950............. 5,798 1,177 1,294 1,456 834 1,037 5,315 3,157 692 80 1,386 1955............. 10,601 3,243 2,062 2,042 1,338 1,916 11,838 7,108 1,448 42 3,240 1960............. 16,672 5,316 2,820 2,759 2,200 3,577 15,435 7,703 2,553 173 5,006 196 5 28,962 10,209 5,659 4,166 2,571 6,357 23,851 9,218 4,343 232 10,058 196 6 31,319 11,024 5,956 4,681 2,647 7,011 24,796 9,342 4,925 214 10,315 196 7 33,152 10,972 6,232 5,469 2,731 7,748 24,576 8,627 5,069 192 10,688 196 8 37,936 12,324 7,102 1,307 5,387 2,858 8,958 26,074 9,003 5,424 166 11,481 196 9 42,421 13,133 7,791 2,639 6,082 2,996 9,780 27,846 9,412 5,775 174 12,485 197 0 45,398 12,918 7,888 3,792 7,113 3,071 10,616 27,678 9,044 2,464 3,237 199 12,734 197 1 51,240 13,837 9,277 4,423 4,419 4,501 3,236 11,547 28,883 9,577 2,561 3,052 247 13,446 197 2 59.783 16.320 10.776 5.786 5.288 5.122 3.544 12.947 32.088 10.174 2.916 3.589 497 14.912 1972—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 May. 63,707 17,716 11,680 6.321 5,360 5,538 3,635 13,457 33,859 10,872 3,025 3,985 656 15,321 June. 64,999 18,138 11,866 6,473 5,502 5,688 3,700 13,632 34,367 11,121 3,081 4,002 694 15,469 1 Finance companies consist of those institutions formerly classified as See also Note to table at top of preceding page, sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards 1 1940................................... 188 36 7 13 132 banks insti­ 1945.................................. 121 16 4 10 91 tutions 1950.................................. 692 159 40 102 391 1955.................................. 1,959 560 130 313 956 1960.................................. 4,566 1,460 297 775 2,034 1940................. 2,824 636 164 1,471 553 1945................. 3,203 674 72 1,612 845 1965................................... 8,289 3,036 498 933 3,822 1950................ 6,768 1,576 245 3,291 76 1,580 1966................................... 9,315 3,411 588 980 4,336 1955................. 9,924 2,635 367 4,579 216 2,127 1967................................... 10,216 3,678 654 1,085 4,799 1960................. 13,173 3,884 623 4,893 436 3,337 1968................................... 11,717 4,238 771 1,215 5,493 1969................................... 13,722 4,941 951 1,443 6,387 18,990 6,690 981 5,724 706 4,889 19,994 6,946 1,026 5,812 874 5,336 1970................................... 15,088 5,116 1,177 1,800 6,995 21,355 7,478 1,080 6,041 1,029 5,727 1971................................... 17,021 5,747 1,472 1,930 7,872 1968................. 23,025 8,374 1,158 5,966 1,227 6,300 1972................................... 19,511 6,598 1,690 2,160 9,063 1969................. 24,041 8,553 1,194 5,936 1,437 6,921 1972—June...................... 18,304 6,166 1,580 2,055 8,503 25,099 8,469 1,206 6,163 1,805 7,456 July....................... 18,379 6,204 1,589 2,062 8,524 1971................. 27,099 9,316 1,269 6,397 1,953 8,164 Aug....................... 18,836 6,353 1,628 2,113 8,742 30,232 10,857 1,399 7,055 1,947 8,974 Sept....................... 19,062 6,421 1,645 2,144 8,852 Oct........................ 19,169 6,461 1,656 2,157 8,895 1972—June... 27,447 9,831 1,350 5,689 1,921 8,656 Nov....................... 19,368 6,535 1,675 2,165 8,993 July... 27,512 9,900 1,335 5,664 1,980 8,633 Dec........................ 19,511 6,598 1,690 2,160 9,063 Aug— 27,720 10,053 1,358 5,676 2,041 8,592 Sept... 27,783 10,165 1,376 5,613 2,080 8,549 1973—Jan......................... 19,365 6,560 1,680 2,138 8,987 Oct.... 28,071 10,339 1,378 5,794 1,986 8,574 Feb........................ 19,617 6,627 1,698 2,162 9,130 Nov.... 28,643 10,527 1,390 6,081 1,929 8,716 Mar....................... 20,052 6,752 1,732 2,209 9,359 Dec__ 30,232 10,857 1,399 7,055 1,947 8,974 Apr........................ 20,190 6,820 1,748 2,216 9,406 May....................... 20,599 6,966 1,785 2,250 9,598 1973—Jan.... 29,859 10,825 1,379 6,402 1,955 9,298 June....................... 21,084 7,135 1,828 2,294 9,827 Feb.... 29,623 10,989 1,420 5,735 1,911 9,568 Mar__ 29,945 11,074 1,466 5,825 1,877 9,703 Apr__ 30,469 11,237 1,449 6,129 1,907 9,747 Note.—Other financial lenders consist of credit unions and miscel­ May... 30,746 11,359 1,458 6,387 1,932 9,610 laneous lenders. Miscellaneous lenders include savings and loan associa­ June... 31,065 11,520 1,470 6,544 2,011 9,520 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 □ AUGUST 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.i N.S.A. S.A.i | N.S.A. S.A.i 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 June................................ 12,057 13,096 3,412 3,938 4,577 4,779 351 403 3,717 3,976 July.................................. 11,687 11,833 3,298 3,480 4,684 4,544 328 358 3,377 3,451 Aug................................. 12,484 13,166 3,491 3,696 4,990 5,094 371 431 3,632 3,945 Sept................................. 11,953 11,535 3,368 3,110 4,772 4,695 340 360 3,473 3,370 Oct.................................. 12,404 12,337 3,504 3,663 4,971 4,831 335 347 3,594 3,496 Nov................................. 12,846 12,806 3,620 3,505 5,118 5,202 327 321 3,781 3,778 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 May................................ 13,932 14,792 3,989 4,409 5.504 5,698 374 431 4,065 4,254 June................................ 13,646 14,608 3,762 4,313 5,505 5,678 400 450 3,979 4,167 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 June................................ 10,671 10,914 2,922 2,982 4,164 4,177 283 290 3,302 3,465 July................................. 10,593 10,496 2,917 2,896 4,249 4,115 279 278 3,148 3,207 Aug................................. 10,841 10,957 2,896 2,976 4,395 4,376 270 278 3,280 3,327 10,667 10,253 2,873 2,789 4,303 4,138 263 261 3,228 3,065 10,908 11,025 3,041 3,145 4,354 4,360 263 272 3,250 3,248 11,128 10,986 3,023 2,993 4,444 4,354 271 271 3,390 3,368 Dec.................................. 10,964 10,636 2,977 2,740 4,341 4,155 263 253 3,383 3,488 1973—Jan................................... 11,355 11,887 3,097 3,169 4,649 5,077 267 267 3,342 3,374 Feb.................................. 11,437 10,623 3,145 2,943 4,627 4,409 275 254 3,390 3,017 Mar................................. 11,808 12,265 3,225 3,371 4,755 5,013 286 288 3,542 3,593 Apr.................................. 12,061 12,014 3,218 3,233 4,963 4,888 294 292 3,586 3,601 11,941 12,283 3,261 3,369 4,917 5,043 290 298 3,473 3,573 June................................ 12,034 12,121 3,253 3,282 4.955 4,921 300 303 3,526 3,615 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—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 May................................ 1,991 2,509 728 1,040 587 655 84 133 592 681 June............................... 1,612 2,487 509 1,031 550 757 100 147 453 552 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

AUGUST 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—June................................ 12,057 13,096 5,098 5,617 3,196 3,479 1,792 2,036 1,971 1,964 July................................. 11,687 11,833 4,926 5,103 3,107 3,184 1,506 1,580 2,148 1,966 Aug................................. 12,484 13,166 5,349 5,644 3,285 3,433 1,788 2,014 2,062 2,075 Sept................................. 11,953 11,535 4,972 4,852 3,181 2,971 1,731 1,683 2,069 2,029 Oct.................................. 12,404 12,337 5,227 5,224 3,334 3,348 1,705 1,679 2,138 2,086 Nov................................. 12,846 12,806 5,413 5,059 3,434 3,581 1,792 1,704 2,207 2,462 Dec.................................. 12,627 13,643 5,313 5,096 3,355 3,766 1,791 1,642 2,168 3,139 1973—Jan................................... 13,304 11,923 5,762 5,246 3,517 3,033 1,706 1,509 2,319 2,135 Feb.................................. 13,434 11,214 5,664 4,826 3,557 2,972 1,964 1,711 2,249 1,705 Mar................................. 13,852 13,681 5,853 5,890 3,654 3,598 2,131 2,083 2,214 2,110 Apr.................................. 13,465 13,661 5,644 5,973 3,555 3,576 1,792 1,832 2,474 2,280 May................................ 13,932 14,792 5,859 6,356 3,820 4,027 1,868 2,060 2,385 2,349 June............................... 13,646 14,608 5,684 6,219 3,584 3,817 1,978 2,211 2,400 2,361 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—June................................ 10,671 10,914 4,250 4,358 2,971 3,067 1,566 1,638 1,884 1,851 July................................. 10,593 10,496 4,366 4,298 2,883 2,841 1,419 1,505 1,925 1,852 Aug................................. 10,841 10,957 4,414 4,486 3,021 3,034 1,510 1,557 1,896 1,880 Sept................................. 10,667 10,253 4,221 4,132 2,938 2,785 1,533 1,457 1,975 1,879 Oct.................................. 10,908 11,025 4,408 4,524 3,023 3,028 1,550 1,572 1,927 1,901 Nov................................. 11,128 10,986 4,531 4,447 3,061 3,124 1,578 1,505 1,958 1,910 Dec................................. 10,964 10,636 4,485 4,191 2,952 3,105 1,561 1,499 1,966 1,841 1973—Jan................................... 11,355 11,887 4,734 4,881 3,033 2,944 1,532 1,655 2,056 2,407 Feb.................................. 11,437 10,623 4,684 4,392 3,030 2,718 1,625 1,459 2,098 2,054 Mar................................. 11,808 12,265 4,870 5,084 3,141 3,279 1,665 1,648 2,132 2,254 Apr.................................. 12,061 12,014 4,919 4,902 3,251 3,248 1,693 1,694 2,198 2,170 May................................ 11,941 12,283 4.976 5,108 3,100 3,246 1,612 1,651 2,253 2,278 June................................ 12,034 12,121 4,890 4,927 3,241 3,309 1,694 1,726 2,209 2,159 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—June................................ 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 May................................ 1,991 2,509 883 1,248 720 781 256 409 132 71 June................................ 1,612 2,487 794 1,292 343 508 284 485 191 202 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. □ AUGUST 1973 MARKET GROUPINGS (1967 = 100) 1967 1972 1972r 1973 pro­ por­ aver­ Grouping tion age* June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.r Apr.r Mayr June Total index........................................ 100.0 115.2 114.4 115.1 116.3 117.6 119.2 120.2 121.1 122.2 123.4 1.23.7 124.1 124.8 125.4 Products, total...................................... 62.21 113.8 112.7 113.3 114.7 115.6 117.3 118.6 119.1 120.7 121.5 121.7 122.0 122.9 123.2 Final products................................... 48.95 111.9 111.0 111.6 112.6 113.6 115.3 116.3 116.8 118.6 119.3 119.6 120.0 120.8 121.2 Consumer goods.......................... 28.53 123.6 122.7 123.3 124.3 125.2 127.0 127.4 127.7 129.8 130.2 130.8! 130.9 131.4 131.5 Equipment.................................... 20.42 95.5 94.7 95.3 96.3 97.7 98.9; 100.7 101.5 102.9 104.1 104.1 104.7 105.8 106.8 Intermediate products.................... 13.26 121.1 119.4 119.8 122.3 122.8 124.7 127.6 127.7 128.4 129.5 129.4 129.3 130.6 131.0 Materials.............................................., 37.79 117.4 117.1 117.8 118.8 120.9 122.3 122.8 124.4 124.5 126.7 127.0 127.7 127.7 129.2 Consumer goods Durable consumer goods..................... 7.86 125.7 125.0 124.5 124.9 125.7 129.1 131.0 135.0 136.0 137. 140.4 140.5 141.5 140.0 Automotive products...................... 2.84 127.7 125.1 125.3 126.0 125.4 132.3 138.3 142.9 138.6 141.7 144.1 141.7 142.6 138.8 Autos............................................. 1.87 112.7 108.2 108.2 109.5 109.6 118.9 126.6 133.9 130.2 131.5 130.8 128.1 129.8 132.6 Auto parts and allied goods.... .97 156.5 157.5 158.0 158.1 155.8 158.0 160.6 160.0 155.0 161.4 169.9 167.5 167.0 150.7 Home goods......................................... 5.02 124.5 124.9 124.1 124.3 125.8 127.3 126.9 130.5 134.5 135.8 138.3 139.8 140.9 140.7 Appliances, TV, and radios......... 1.41 124.6 125.0 121.6 118.6 123.0 124.1 121.7 133.3 140.7 137.8 143.0 149.7 148.0 147.9 Appliances and A/C.............. .92 144.5 139. 138.5 139.9 142.8 147.9 141.9 151.1 153.2 153.8 156.9 157.6 157.8 155.3 TV and home audio.............. .49 87.5 97.2 89.9 78.6 86.1 79.4 83.9 99.9 117.4 108.0 116.8 135.0 129.6 134.3 Carpeting and furniture................ 1. 132.6 132.5 132.3 136.4 134.5 137.6 137.6 139.0 142.1 145.0 145.7 146.7 147.8 149.7 Misc. home goods.......................... 2.53 121.0 121.7 121.8 122.4 123.6 124.7 125.2 125.3 127.5 130.9 132.7 131.4 134.0 132.6 Nondurable consumer goods.............. 20.67 122.8 121.8 122. 124.1 124.9 126.2 126.0 125.0 127.4 127.3 127.1 127.2 127.6 128.2 Clothing........................................... 4.32 122.8 108.8 110.4 112.0 113.5 113.5 114.8 112.2 115.1 115.2 115.4 114.5 113.8 Consumer staples........................... 16.34 109.7 125.3 126.1 127.3 127.9 129.5 128.9 128.4 130.7 130.5 130.3 130.6 131.2 i 3 i * 3 Consumer foods and tobacco.. 8.37 117.5 117.1 116.7 118.4 118.3 119.5 119.9 119.1 121.1 121.5 120.9 121.0 121.0 121.3 Nonfood staples......................... 7.98 135.3 134.1 135.9 136.6 138.1 140.0 138.3 138.1 140.9 140.0 140.1 140.7 141.9 141.9 Consumer chemical products 2.64 144.6 143.8 144.7 145.9 147.6 149.1 145.1 143.9 148.8 149.9 151.1 151.5 152.1 153.4 Consumer paper products... 1.91 114.8 113.0 115.6 115.1 115.6 118.6 119.3 119.3 119.1 119.4 118.7 119.0 121.7 117.9 Consumer fuel and lighting., 3.43 139.5 138.2 140.5 141.1 143.2 144.7 143.7 144.1 147.1 144.0 143.8 144.4 145.4 146.4 Residential utilities............ 2.25 147.8 147.1 148.5 149.4 152.2 153.0 152.5 153.6 156.5 154.4 153.5 152.3 152.1 152.9 Equipment Business equipment.............................. 12.74 106.1 104.7 105.5 107.2 109.6 111.6 113.4 114.4 116.9 118.2 118.6 119.6 121.3 122.7 Industrial equipment...................... 6.77 102.5 101.1 102.4 104.0 107.9 109.1 110.4 111.5 113.0 114.5 115.6 117.4 119.2 120.9 Building and mining equip. 1.45 104.8 104.9 106.0 106.9 108.1 108.3 108.7 112.3 113.0 115.1 116.0 118.1 118.8 121.0 Manufacturing equipment. 3.85 92.7 90.9 93.2 96.1 99.1 101.0 102.6 102.5 104.7 106.1 107.5 109.4 112.0 113.5 Power equipment........................ 1.47 125.6 123.5 122.3 122.4 130.9 131.2 132.9 134.1 134.6 135.5 137.1 137.6 138.5 140.2 Commercial, transit, farm eq.. 5.97 110.3 108.8 109.1 110.9 111.6 114.4 116.6 117.6 121.4 122.4 121.9 122.2 123.7 124.7 Commercial equipment............... 3.30 118.4 116.7 118.6 120.4 122.4 123.9 125.5 126.5 128.8 129.9 130.6 131.3 131.6 133.2 Transit equipment....................... 2.00 96.8 95.5 92.5 93.0 92.9 96.8 101.9 101.7 110.0 111. 110.2 107.5 109.8 110.4 Farm equipment.......................... .67 110.5 109.8 111.2 117.7 114.7 120.3 116.3 120.0 118.3 117.6 114.6 120.9 126.5 126.5 Defense and space equipment............ 7.68 77.9 78.1 78.3 78.1 77.6 77.9 79.6 80.1 79.8 80.6 80.1 80.0 79.9 80.6 Military products............................ 5.15 80.1 80.2 80.6 80.1 79.3 19 A 81.5 81.8 81.0 82.0 81.5 81.0 80.4 80.6 Intermediate products Construction products........................ 5.93 120.8 118.5 118.0 121.2 122.9 125.6 130.0 128.7 129.6 130.3 130.7 132.2 132.0 134.4 Misc. intermediate products............. 7.34 121.3 120.2 121.3 123.0 122.8 123.9 125.9 126.9 127.4 128.9 128.3 127.0 129.4 128.3 Materials Durable goods materials...................... 20.91 113.5 112.6 113.0 114.5 118.1 120.2 121.4 123.5 124.1 126.6 127.6 127.9 128.0 130.3 Consumer durable parts................. 4.75 113.8 111.6 113.2 115.5 118.1 119.0 120.5 123.6 123.9 125.4 125.9 129.0 125.7 129.4 Equipment parts.............................. 5.41 99.3 98.0 100.2 100.1 103.1 107.5 109.7 112.0 111.6 113.0 114.6 113. 117.9 118.0 Durable materials nec..................... 10.75 120.6 120.6 119.4 121.2 125.5 127.2 127.7 129.2 130.6 134.2 134.9 134.7 134.1 136.7 Nondurable goods materials................ 13.99 122.5 122.8 124.0 124.7 124.6 125.3 124.6 126.4 126.3 127.7 127.1 128.5 128.3 129.0 Textile, paper, and chem. mat.... 8.58 129.2 128.5 131.0 132.5 132.0 132.9 132.9 136.0 136.0 136.5 136.3 138.8 138.4 139.4 Nondurable materials n.e.c........... 5.41 111.9 113.4 112.6 112.3 112.7 113.3 111.8 111.4 110.9 113.9 112.7 112.2 112.2 112.5 Fuel and power, industrial................ 2.89 120.9 121.9 122.8 121.1 124.5 123.2 122.6 119.5 120.6 122.7 122.6 122.1 122.7 123.4 Supplementary groups Home goods and clothing................ 9.34 117.7 117.5 117.8 118.6 120.1 120.9 121.1 122.0 125.5 126.3 127.6 128.1 128.4 129.1 Containers............................................ 1.82 129.7 130.3 131.1 130. 134.0 133.2 134.1 135.0 137.1 138.8 145.2 139.1 139.0 141.0 Gross value of products in market structure (In billions of 1963 dollars) Products, total................... 414.0 412.8 418.7 421.7 430.0 435.7 437.3 442.8 445.7 446.9 446.2 450.0 452.1 Final products............. 319.5 317. 322.2 324.8 331.6 334.7 336.3 340.5 342.7 343.9 343.7 346.7 348.1 Consumer goods... 225.6 224.4 227.1 228.2 233.1 234.4 235.9 237.6 238.2 239.5 238.9 240.9 241.0 Equipment................ 94.3 93.4 95.0 96.4 98.5 100.2 100.6 103.0 104.6 104.5 104.8 105.8 106.9 Intermediate products. 94.7 95.1 96.7 96.9 98.3 100.8 101.3 102.2 103.0 102.7 102.3 103.3 103.8 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1967 = 100) 1967 1972 1972 r 1973 pro­ aver­ Grouping p ti o o r n ­ age June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.r Apr.r Mayr June Manufacturing.......................................... 88.55 114.0 113.1 114.3 115.4 117.0 118.5 119.5 120.4 121.4 122.7 123.4 123.8 124.9 125.2 Durable................................................. 52.33 108.4 107.5 108.8 109.7 111.6 113.8 115.3 116.3 117.5 118.7 119.9 120.6 121.7 122.5 36.22 122.1 121.4 122.5 123.6 124.8 125.2 125.6 126.2 127.0 128.4 128.6 128.4 129.9 129.3 Mining and utilities................................ 11.45 124.1 123.2 124.0 124.8 126.5 126.6 126.7 126.1 127.3 128.0 127.3 126.6 126.8 126.8 Mining................................................... 6.37 108.8 108.6 108.6 108.8 110.8 110.2 109.7 108.2 108.5 110.2 109.5 109.0 108.8 109.3 5.08 143.4 141.5 143.3 144.9 146.4 147.1 148.2 148.5 151.0 150.5 149.6 148.7 149.5 148.8 Durable manufactures 12.55 113.9 112.8 114.7 115.3 118.8 121.3 122.6 124.0 124.3 125.4 125.8 127.3 127.0 129.0 Primary metals................................... 6.61 113.1 111.3 115.1 114.3 119.7 122.1 122.9 125.4 123.1 124.7 123.5 125.8 124.2 125.0 Iron and steel, subtotal................. 4.23 107.1 102.7 108.1 108.1 114.7 118.4 119.2 120.0 118.6 120.0 117.5 119.7 119.8 120.0 Fabricated metal products............... 5.94 114.8 114.5 114.3 116.6 118.0 120.4 122.2 122.3 125.7 126.2 128.4 128.9 130.1 133.4 Machinery and allied goods................... 32.44 103.5 102.7 103.7 104.6 106.0 108.2 110.1 111.2 112.5 113.7 115.1 115.7 117.2 118.0 Machinery............................................ 17.39 107.5 106.6 108.4 109.7 111.8 114.0 115.7 116.8 118.4 119.1 121.4 122.6 124.6 126.0 Nonelectrical machinery............... 9.17 105.7 104.4 107.0 109.8 111.7 113.5 115.3 114.4 116.3 117.3 119.0 121.5 123.0 124.9 Electrical machinery...................... 8.22 109.6 108.8 109.9 109.5 112.0 114.7 116.1 119.6 120.8 121.2 123.9 123.8 126.2 127.3 9.29 99.0 97.4 97.7 98.1 99.5 102.7 105.0 106.6 107.6 110.0 110.3 110.0 111.0 110.7 Motor vehicles and parts............. 4.56 123.1 119.6 120.2 121.0 122.9 128.7 132.3 135.9 139.3 141.5 141.0 140.1 140.9 142.5 Aerospace and misc. trans. eq... 4.73 75.8 76.1 76.0 76.1 77.2 77.6 78.7 78.3 77.1 79.7 80.8 81.1 82.2 80.1 Instruments.......................................... 2.07 120.2 120.7 121.7 122.7 124.3 125.0 125.1 126.6 130.1 131.9 133.8 134.7 138.9 138.9 Ordnance, private and Govt............ 3.69 86.0 87.7 86.6 86.5 84.8 85.2 87.3 87.8 87.0 87.6 87.1 86.4 85.8 87.0 Lumber, clay, and glass......................... 4.44 120.0 118.5 120.0 121.0 121.9 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 128.9 Lumber and products....................... 1.65 122.4 121.2 122.5 121.8 123.6 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.4 125.9 Clay, glass, and stone products___ 2.79 118.6 117.0 118.6 120.4 120.9 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.8 2.90 122.7 122.1 123.7 126.2 126.6 126.9 126.6 127.7 130.3 132.8 133.4 133.1 136.1 135.0 Furniture and fixtures....................... 1.38 113.5 112.8 115.5 116.4 116.7 117.6 118.5 120.3 119.1 122.3 122.8 123.8 126.5 128.5 Miscellaneous manufactures............ 1.52 131.1 130.6 131.0 135.1 135.6 135.4 134.0 134.5 140.5 142.4 143.0 141.6 144.7 141.1 Nondurable manufactures 6.90 108.1 107.5 109.0 109.7 111.2 112.1 113.0 113.2 113.4 114.4 114.6 114.0 114.4 114.7 Textile mill products......................... 2.69 117.4 116.4 118.7 120.8 121.1 123.2 125.7 124.2 125.3 126.1 127.1 126.1 127.3 129.6 Apparel products............................... 3.33 105.7 104.4 106.0 106.8 108.3 109.5 110.1 111.1 112.3 112.6 112.4 111.7 112.1 Leather and products........................ .88 88.9 92.2 90.1 86.5 91.6 88.0 85.9 87.4 81.3 85.1 85.0 86.8 83.0 86.5 Paper and printing.................................. 7.92 116.1 114.6 117.0 117.6 117.7 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 120.1 Paper and products............................ 3.18 128.2 125.1 131.0 130.5 130.1 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 130.6 Printing and publishing..................... 4.74 107.9 107.3 107.6 108.7 109.4 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 113.1 Chemicals, petroleum, and rubber.... 11.92 137.8 136.9 138.5 140.0 142.2 141.6 142.0 143.8 145.5 146.3 146.3 147.9 149.6 149.8 Chemicals and products................... 7.86 139.6 138.3 140.0 141.3 144.8 143.9 143.2 144.7 146.4 147.2 146.8 147.8 149.2 149.7 Petroleum products............................ 1.80 120.6 117.7 120.5 121.0 121.3 123.8 124.4 125.5 127.3 124.1 123.5 126.9 128.9 129.3 Rubber and plastics products.......... 2.26 145.5 146.8 147.8 150.6 149.8 148.4 151.5 154.7 157.1 160.4 163.4 165.1 166.8 166.3 9.48 117.6 117.9 117.0 118.3 118.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 123.2 121.8 Foods.................................................... 8.81 118.6 119.5 118.5 119.0 119.8 119.0 119.4 119.7 120.5 122.9 121.8 121.3 124.2 122.6 Tobacco products.............................. .67 103.7 96.4 96.7 108.5 103.0 111.8 112.5 102.5 107.9 110.3 118.1 112.9 111.2 Mining Metal, stone, and earth minerals.......... 1.26 107.3 101.2 101.9 106.8 110.6 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.4 Metal mining....................................... .51 120.9 108.0 109.8 118.6 124.8 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.4 121.1 Stone and earth minerals.................. .75 98.1 96.6 96.8 98.5 101.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.4 104.8 Coal, oil, and gas.................................... 5.11 109.2 110.4 110.3 109.3 110.8 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.0 108.7 .69 104.2 109.0 109.0 97.8 105.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 106.4 Oil and gas extraction....................... 4.42 110.0 110.7 110.5 111.1 111.8 111.5 110.0 108.2 107.7 109.1 107.9 108.3 107.9 109.1 Utilities Electric...................................................... 3.91 149.4 147.4 149.5 151.3 153.1 154.2 155.2 155.6 159.1 158.3 157.4 156.2 156.8 156.1 1.17 123.4 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. □ AUGUST 1973 MARKET GROUPINGS (1967 = 100) 1967 1972 1972r 1973 pro­ aver­ Grouping p ti o o r n ­ age June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.r Apr.r Mayr June Total index........................................... 100.0 115.2 117.1 109.9 116.4 121.6 122.7 120.4 117.3 118.9 123.6 124.6 124.5 125.3 128.5 62.21 113.8 115.9 109.6 116.1 121.8 121.9 118.5 114.2 116.6 120.6 121.8 121.2 122.3 126.5 Final products...................................... 48.95 111.9 114.1 107.0 113.7 119.9 119.7 116.1 112.0 115.3 119.1 120.0 118.9 119.8 124.4 Consumer goods............................. 28.53 123.6 126.5 117.5 127.3 134.3 133.2 126.8 120.2 125.3 129.2 130.8 129.2 130.0 135.3 Equipment........................................ 20.42 95.5 96.7 92.3 94.8 99.8 100.8 101.1 100.5 101.4 104.9 105.0 104.6 105.6 109.2 Intermediate products....................... 13.26 121.1 122.6 119.1 125.1 128.9 130.1 127.5 122.2 121.2 126.1 128.5 129.6 131.4 134.1 Materials................................................... 37.9 117.4 119.2 110.3 117.0 121.3 124.0 123.5 122.5 122.8 128.6 129.2 129.9 130.3 131.7 Consumer goods Durable consumer goods......................... 7.86 125.7 129.5 107.6 119.5 133.9 140.2 134.8 125.1 133.3 140.6 143.5 141.3 142.7 145.7 Automotive products......................... 2.84 127.7 134.2 93.5 108.0 137.2 147.0 141.9 123.9 138.5 149.1 151.5 147.6 147.4 150.5 Autos................................................. 1.87 112.7 120.1 61.0 78.4 120.6 135.6 132.9 109.8 134.8 144.6 143.9 135.8 138.2 148.5 Auto parts and allied goods......... .97 156.5 161.3 155.8 164.9 169.2 168.9 159.0 150.9 145.7 157.7 166.0 170.2 165.0 154.3 Home goods........................................ 5.02 124.5 126.9 115.5 126.0 132.0 136.3 130.8 125.8 130.3 135.8 138.9 137.7 140.1 142.9 Appliances, TV, and home audio. 1.41 124.6 125.6 109.1 112.3 127.7 142.7 129.1 122.0 139.7 142.6 149.0 148.2 148.5 147.8 Appliances and A/C.................. .92 144.5 147.4 134.1 129.1 143.5 164.9 143.5 134.6 153.7 157.0 166.2 165.6 166.1 164.2 TV and home audio.................. .49 87.5 84.8 62.2 80.9 98.2 101.2 102.2 98.4 113.6 115.7 116.9 115.4 115.7 117.1 Carpeting and furniture................ 1.08 132.6 132.8 114.4 138.4 139.6 139.7 140.8 140.0 141.0 150.2 149.1 146.1 146.3 151.9 Misc. home goods.......................... 2.53 121.0 125.2 119.5 128.3 131.1 131.3 127.6 121.9 120.4 125.9 129.0 128.2 132.7 136.4 Nondurable consumer goods.................. 20.67 122.8 125.3 121.2 130.2 134.4 130.6 123.7 118.4 122.2 124.9 126.0 124.6 125.1 131.4 Clothing................................................ 4.32 109.7 114.8 98.8 116.5 119.5 118.0 112.5 103.0 105.9 116.6 120.0 119.3 115.0 Consumer staples................................ 16.34 126.2 128.1 127.1 133.8 138.3 133.9 126.7 122.5 126.5 127.1 127.6 126.0 127.8 i 33! 8 Consumer foods and tobacco.... 8.37 117.5 121.2 115.8 124.2 128.9 125.9 119.3 111.6 113.8 117.0 118.4 117.8 120.7 125.5 Nonfood staples.............................. 7.98 135.3 135.4 138.9 143.8 148.2 142.2 134.4 134.0 139.9 137.8 137.2 134.7 135.2 142.6 Consumer chemical products.. 2.64 144.6 152.4 146.9 149.1 162.4 157.4 145.0 133.8 139.9 140.2 147.3 146.9 151.2 162.6 Consumer paper products........ 1.91 114.8 116.2 116.2 121.2 122.8 124.9 118.5 113.2 112.4 116.2 115.5 117.8 117.0 121.2 Consumer fuel and lighting... 3.43 139.5 132.9 145.3 152.2 151.4 140.1 135.1 145.8 155.3 148.0 141.6 134.6 133.0 139.0 Residential utilities................ 2.25 147.8 138.3 154.9 165.1 163.5 146.4 139.4 154.5 168.5 160.1 151.8 140.4 135.5 141.0 Equipment 12.74 106.1 107.5 101.4 105.4 113.1 114.5 113.7 112.0 114.4 119.6 119.8 119.7 121.1 126.0 Industrial equipment.......................... 6.77 102.5 102.2 99.5 103.5 110.3 111.2 111.2 110.6 111.6 116.4 116.8 116.8 117.9 122.3 Building and mining equip........... 1.45 104.8 104.9 101.7 106.5 112.1 111.7 113.0 114.3 112.0 118.6 117.2 115.7 115.6 121.0 Manufacturing equipment........... 3.85 92.7 92.4 89.9 94.7 100.2 102.0 102.3 101.7 103.4 108.9 109.6 109.3 111.4 115.4 Power equipment........................... 1.47 125.6 124.9 122.3 123.7 134.8 134.6 132.9 130.2 132.7 133.9 135.3 137.3 137.4 141.7 Commercial, transit, farm eq........... 5.97 110.3 113.5 103.5 107.6 116.2 118.3 116.5 113.6 117.6 123.3 123.2 122.9 124.7 130.1 Commercial equipment................. 3.30 118.4 122.0 120.4 122.4 128.1 126.0 125.2 122.3 123.0 127.8 126.9 129.1 131.6 139.2 Transit equipment.......................... 2.00 96.8 99.0 78.2 85.2 95.0 104.0 104.6 99.2 108.1 114.8 114.9 110.8 112.0 114.5 Farm equipment............................. .67 110.5 114.5 95.2 101.0 120.8 123.2 109.0 113.2 118.9 126.2 129.7 128.2 128.6 131.9 Defense and space equipment................ 7.68 77.9 78.8 77.2 77.2 77.7 78.0 80.2 81.5 79.8 80.5 80.4 79.5 79.8 81.2 Military products................................ 5.15 80.1 81.5 80.0 79.5 79.2 79.1 81.7 82.4 81.2 81.9 81.8 80.8 80.6 81.9 Intermediate products Construction products........................... 5.93 120.8 122.6 117.3 121.8 127.3 131.0 128.3 121.9 120.5 128.0 131.9 135.0 136.2 139.1 Misc. intermediate products................. 7.34 121.3 122.6 120.5 127.7 130.2 129.3 126.9 122.5 121.7 124.5 125.7 125.2 127.6 130.1 Materials 20.91 113.5 115.9 104.9 111.5 118.8 121.3 121.0 121.8 121.6 128.8 130.7 131.2 131.5 133.9 Consumer durable parts................... 4.75 113.8 113.0 99.2 108.5 118.2 120.5 122.1 126.8 126.8 129.3 129.4 130.0 128.8 131.1 Equipment parts................................. 5.41 99.3 100.1 93.6 97.7 104.1 107.2 108.7 111.0 110.8 114.7 117.5 117.4 118.6 120.5 Durable materials n.e.c..................... 10.75 120.6 125.2 113.1 119.7 126.4 128.7 126.7 125.1 124.7 135.7 137.9 138.7 139.2 141.9 Nondurable goods materials.................. 13.99 122.5 124.0 117.3 124.3 124.7 128.2 127.1 123.9 124.5 129.2 128.2 129.4 130.1 130.4 Textile, paper, and chem. mat.......... 8.58 129.2 130.3 121.7 131.4 131.9 135.7 135.6 131.8 133.7 139.6 139.0 140.9 141.2 141.4 Nondurable materials n.e.c.............. 5.41 111.9 113.9 110.2 113.0 113.2 116.4 113.7 111.4 110.0 112.8 111.2 111.1 112.5 112.9 Fuel and power, industrial................... 2.89 120.9 120.4 115.6 121.3 123.5 123.3 123.6 120.3 122.6 124.5 123.2 122.3 122.6 122.0 Supplementary groups Home goods and clothing..................... 9.34 117.7 121.3 107.8 121.6 126.2 127.8 122.3 115.3 119.0 126.9 130.2 129.2 128.5 133.4 Containers................................................ 1.82 129.7 134.3 127.3 134.6 136.9 141.3 133.3 125.0 129.4 140.5 142.6 139.4 141.9 145.4 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1967= 100) p 19 r 6 o 7 ­ a 1 v 9 e 7 r 2 - 1972' 1973 Grouping p ti o o r n ­ ageP June July Aug. Sept. Oct. Nov. Dec. Jan. ' Feb.r Mar.' Apr.' May' June Manufacturing, total......................... 88.55 114.0 116.4 107.8 114.6 120.3 122.2 120.0 116.3 117.6 123.2 124.6 124.7 125.6 128.8 Durable.......................................... 52.33 108.4 110.5 101.2 106.3 113.5 116.4 115.3 113.3 114.9 121.0 122.5 122.4 123.0 125.8 Nondurable.................................... 36.22 122.1 125.0 117.4 126.6 130.2 130.6 126.7 120.6 121.5 126.3 127.7 128.0 129.3 133.1 Mining and utilities........................... 11.45 124.1 123.2 125.1 130.4 131.2 126.5 123.8 125.2 128.6 127.5 125.0 122.7 123.5 125.7 Mining............................................ 6.37 108. 110.1 106.3 109.9 111.7 111.3 110.6 109.2 107.0 109.2 107.6 108.5 110.5 110.6 Utilities........................................... 5.08 143.4 139.7 148.7 156.1 155. 145.5 140.5 145.4 155.7 150.6 146 140.5 139.9 144.8 Durable manufactures Primary and fabricated metals.... 12.55 113.9 116.1 105.4 110.0 117.4 121.1 120.3 120.5 120.4 130.0 132.1 131.7 130.1 132.7 Primary metals.............................. 6.61 113.1 117.3 101.9 107.3 115.4 119.4 117.1 118.9 118.5 131.3 133.8 133.9 129.7 131.9 Iron and steel, subtotal........... 4.23 107.1 108.6 98.7 101.4 108.3 113.4 110.9 114.2 112.3 125.8 128.3 128.5 125.8 126.8 Fabricated metal products......... 5.94 114.8 114.7 109.2 113.1 119.7 123.0 123.9 122.3 122.6 128.5 130.1 129.3 130.5 133.7 Machinery and allied goods............. 32.44 103.5 105.3 95.9 100.3 108.6 111.3 110.6 109.0 111.8 116.0 117.1 116.7 118.0 120.9 Machinery...................................... 17.39 107.5 108.9 102.8 106.8 114.7 117.1 115.0 114.6 116.9 121 123.3 123.5 124.9 128.5 Nonelectrical machinery........ 9.17 105.7 107.3 103.5 106. 113.6 114.3 113..1 112.5 114.0 121.2 122.2 122.3 124.0 128.4 Electrical machinery................ 8.22 109.6 110.6 102.0 106. 116.0 120.3 117.1 117.0 120.2 122.4 124.5 124.8 125.9 128.7 Transportation equipment......... 9.29 99.0 101.3 81.2 88.6 102.1 107.2 108.0 103.2 108.7 113.5 114.0 112.8 113.4 115.2 Motor vehicles and parts 4.56 123.1 126.9 88.1 102.7 127.4 137.5 138.3 129.2 142.6 148.6 147.3 144.9 145.6 151.1 Aerospace and misc. trans. eq. 4.73 75.8 76.6 74.6 75.0 77.8 78.0 78.9 78.1 76.0 79.6 82.0 81 82.4 80.6 Instruments.................................... 2.07 120.2 123.2 121.7 125.3 129.5 128.9 126.5 125.3 126.3 128.1 131.5 130.5 137.5 141.8 Ordnance, private and Govt.... 3.69 86.0 88.1 85.9 85.5 84.5 84.6 87.4 88.2 87.5 87.9 87.8 86.4 86.0 87.4 Lumber, clay, and glass................... 4.44 120.0 124.1 119.4 126.4 127.3 130.9 124.5 115.4 115.3 123.2 127.2 130.9 132.8 135.0 Lumber and products................. 1.65 122.4 126.7 120.7 126.1 129.0 133.0 124. 111.9 115.6 128.4 130.5 131.3 128.5 131.6 Clay, glass, and stone products. 2.79 118.6 122.6 118.6 126.5 126.3 129.7 124.3 117.5 115.1 120.1 125.3 130.7 135.3 137.1 Furniture and miscellaneous............ 2.90 122.7 123.7 114.5 127.5 131.0 131.1 131.3 127.6 126.1 134.3 133.9 132.4 132.6 136.8 Furniture and fixtures................. 1.38 113.5 112.1 100.4 115.7 117.9 118.8 122.1 121.5 121.6 128.7 127.3 124.2 123.0 127.7 Miscellaneous manufactures. 1.52 131.1 134.3 127.3 138.2 142.9 142.2 139.6 133.2 130.2 139.4 139.9 139.9 141.4 145.1 Nondurable manufactures Textiles, apparel, and leather......... 6.90 108.1 112.6 95.8 114.1 115.2 115.3 112.0 103.9 106.4 115.4 118.2 116.9 114.9 120.1 Textile mill products................... 2.69 117.4 121.6 103.3 125.2 123.9 125.7 125.1 117.0 117.8 126.1 129.6 128.7 129.2 135.4 Apparel products......................... 3.33 105.7 110.5 94.3 111.1 114.3 113.0 108.2 98.7 103.9 113.7 116.3 115.6 112.1 Leather and products.................. 88.9 92.8 78.1 91.3 92.0 92.1 86.5 83.3 80.6 88.7 89.9 85.8 81.3 Paper and printing............................ 7.92 116.1 117.8 113.3 121.1 122.5 126.3 122.3 113.8 113.2 118.7 120.4 121.4 121.9 123.6 Paper and products..................... 3.18 128.2 129.9 119.9 130.2 128.4 137.9 133.7 123.6 130.2 137.5 138.9 137.6 136.4 135.6 Printing and publishing.............. 4.74 107.9 109.6 108.8 114.9 118.6 118.5 114.7 107.3 101.7 106.0 107.9 110.6 112.2 115.5 Chemicals, petroleum, and rubber.. 11.92 137.8 140.6 134.5 140.3 145.9 145.6 143.0 140.3 141.1 144.8 145.6 147.6 150.0 153.7 Chemicals and products.............. 7.86 139.6 143.0 138.5 142.4 148.6 146.8 143.2 139.5 140.5 143. 145.0 148. 151.1 154.8 Petroleum products...................... 1.80 120.6 121.2 124.1 126.0 126.0 125.8 124.3 125.2 123.9 120.9 119.5 121.3 127.4 132.4 Rubber and plastics products..., 2.26 145.5 147.4 129.0 144.6 152.5 157.2 157.0 155.0 156.8 167.3 168.3 164.4 164.0 167.0 Foods and tobacco............................. 9.48 117.6 120.5 115.2 123.0 127.7 126.4 120.5 113.8 114.9 117.4 118.1 117.1 120.0 124.6 Foods............................................... 8.81 118.6 121.8 117.4 123.5 129.1 126.9 121.0 115.9 115.4 117.7 118.1 117.8 120.7 125.1 Tobacco products.......................... .67 103.7 103.0 86.3 116.7 109.4 120.4 113.4 86.0 107.7 113.5 118.3 108.0 110.1 Mining Metal, stone, and earth minerals..., 1.26 107.3 114.0 104.7 112.1 116.9 114.4 110.8 108.7 103.4 105.7 109.0 116.4 125.6 124.7 Metal mining................................. .51 120.9 129.6 116.7 128.4 133.5 123.2 115.0 115.0 114.0 120.6 118.7 127.2 143.8 143.4 Stone and earth minerals............. .75 98.1 103.4 96.6 100.9 105.6 108.5 107.9 104.4 96.2 95.5 102.4 109.0 113.2 112.1 Coal, oil, and gas............................... 5.11 109.2 109.1 106.7 109.4 110.4 110.5 110.5 109.3 107.9 110.1 107.2 106.5 106.7 107.1 Coal.................................................. .69 104.2 104.2 89.3 104.2 107.9 107.8 104.9 98.0 98.0 104.2 104.3 101.7 102.9 101.7 Oil and gas extraction.................. 4.42 110.0 109.9 109.4 110.2 110.8 110.9 111.4 111.1 109.5 111.0 107.6 107.2 107.3 108.0 Utilities Electric................................................. 3.91 149.4 144.9 156.5 166.0 165.4 152.0 145.3 151.6 165.1 158.5 153.8 145.4 144.6 150.9 Gas....................................................... 1.17 123.4 Note.—Pages A-58 and A-59 include revisions stemming from changes lications Services, Division of Administrative Services, Board of Governors in seasonal adjustment factors, and pages A-60 and A-61 include re­ of the Federal Reserve System, Washington, D.C. 20551. visions in some series that are not seasonally adjusted, beginning in Published groupings include series and subtotals not shown sepa­ March 1972 in both instances. Data for the complete year of 1972 are rately. Figures for individual series and subtotals are published in the available in a pamphlet Industrial Production Indexes 1972 from Pub­ monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 BUSINESS ACTIVITY; CONSTRUCTION □ AUGUST 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 a t l e s ­ f M a i c a n t n u g u r­ ­ i o = n ( u 1 1 m t 9 p 0 6 f u 0 7 g ) t . tr c t a i o o c n n t ­ s T m p e o e l m t o n a y t ­ l — ­ i p m E l m e o n y ­ t ­ P ro a l y ls ­ s r a e l t e a s il 3 s C um on e ­ r m W c s o o a h d m l o e i l t ­ e y ­ Total sumerEquip­ goods ment 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 r78.3 123.1 107.2 98.0 114.1 120 116.3 110.4 1971....................... 106.8 106.4 104.7 115.7 89.4 112.6 107.4 105.2 r75.0 145.4 107.3 93.9 116.3 122 121.2 113.9 1972...................... "115.2 "113.8 "111.9 "123.6 "95.5 "121.1 "117.4 "114.0 "78.6 165.3 110.5 96.7 130.2 142 125.3 119.8 1972-—June.......... "114.4 "112.7 "111.0 "122.7 "94.7 "119.4 "117.1 "113.1 5r77.6 154.0 110.4 96.7 128.9 141 125.0 118.8 July........... "115.1 "113.3 "111.6 "123.3 "95.3 "119.8 "117.8 "114.3 155.0 110.4 96.5 127.7 143 125.5 119.7 Aug........... "116.3 "114.7 "112.6 "124.3 "96.3 "122.3 "118.8 "115.4 "79.4 180.0 110.9 97.0 131.2 145 125.7 119.9 Sept........... "117.6 "115.6 "113.6 "125.2 "97.7 "122.8 "120.9 "117.0 187.0 111.3 97.5 133.8 144 126.2 120.2 Oct............ "119.2 "117.3 "115.3 "127.0 "98.9 "124.7 "122.3 "118.5 171.0 111.7 98.4 136.1 149 126.6 120.0 Nov........... "120.2 "118.6 "116.3 "127.4 "100.7 "127.6 "122.8 "119.5 "81.5 177.0 112.1 99.1 139.0 148 126.9 120.7 Dec............ "121.1 "119.1 "116.8 "127.7 "101.5 "127.7 "124.4 "120.4 163.0 112.4 99.6 139.3 151 127.3 122.9 1973-—Jan............ "122.2 "120.7 "118.6 "129.8 "102.9 "128.4 "124.5 "121.4 181.0 112.7 99.9 139.8 156 127.7 124.5 Feb............ "123.4 "121.5 "119.3 "130.2 "104.1 "129.5 "126.7 "122.7 \ "82.8 191.0 113.5 100.7 142.9 158 128.6 126.9 Mar........... "123.7 "121.7 "119.6 "130.8 "104.1 "129.4 "127.0 "123.4 193.0 113.8 101.0 142.6 160 129.8 129.7 Apr........... "124.1 "122.0 "120.0 "130.9 "104.7 "129.3 "127.7 "123.8 I 177.0 114.0 101.5 144.8 157 130.7 130.7 May.......... "124.8 "122.9 "120.8 "131.4 "105.8 "130.6 "127.7 "124.9 \ "83.3 173.0 "114.4 101.7 "144.9 160 131.5 133.4 June.......... "125.4 "123.2 "121.2 "131.5 "106.8 "131.0 "129.2 "125.2 183.0 "114.5 "102.2 "145.3 158 132.4 136.7 July........... 126.3 124.1 122.0 132.2 107.9 131.6 130.2 126.6 114.6 101.7 146.4 163 134.9 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Dept, of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. Latest figure is final. value of total construction contracts, including residential, nonresidential, 5 Figure is for second quarter 1972. and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1972 1973 Type of ownership and 1971 1972 type of construction June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total construction 1............................ 80,188 91,877 8,478 8,067 8,875 8,197 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 By type of ownership: Public............................................ 23,927 24,404 2,517 2,528 2,466 2,017 1,668 1,785 1,650 1,918 1,717 2,046 2,071 2,359 2,995 Private 1....................................... 56,261 67,473 5,960 5,538 6,409 6,181 6,557 5,462 4,814 4,877 5,122 6,599 6,743 7,069 6,916 By type of construction: Residential building 1............... 34,754 45,473 4,375 3,864 4,671 4,135 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 Nonresidential building............ 25,574 27,327 2,447 2,461 2,458 2,378 3,549 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 Nonbuilding................................ 19,282 19,077 1,655 1,741 1,746 1,684 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 Private housing units authorized... 1,925 2,130 2,121 2,108 2,237 2,265 2,216 2,139 2,377 2,218 2,191 2,071 1,834 1,804 1,969 (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

AUGUST 1973 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v t & e i l o o n p­ Other 2 Total Indus­ Com­ b O u th il e d r ­ Other ment trial mercial 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 4,822 1970 '........... 94,167 66,071 31,864 34,207 6,538 9,754 5,125 12,790 28,096 718 9,981 1,908 4,832 1971'........... 109,238 79,367 43,268 36,099 5,423 11,619 5,437 13,620 29,871 901 10,658 2,095 4,820 1972.............. 123,836 93,640 54,186 39,454 4,676 13,462 5,898 13,418 30,196 1,080 10,448 2,172 4,996 1972—June ' 121,613 92,594 53,294 39,300 4,848 13,323 5,834 15,295 29,019 1,064 10,090 2,592 15,273 July'. 121,616 92,445 53,793 38,652 4,628 13,180 5,707 15,137 29,171 1,342 10,088 1,776 15,965 Aug.r 123,028 93,873 54,497 39,376 4,736 13,381 5,939 15,320 29,155 866 10,003 2,099 16,187 Sept.r 125,146 94,520 55,536 38,984 4,519 13,442 5,730 15.293 30,626 1,050 10,443 2,140 16,993 Oct.r. 128,513 96,201 56,361 39,840 4,345 13,720 6,197 15,578 32,312 1,076 10,642 2,205 18,389 Nov.r 126,831 97,506 57,167 40,339 4,617 13,607 6,235 15,880 29,325 1,200 10,585 2,042 15,498 Dec.r 131,550 98,450 57,545 40,905 4,765 13,865 6,220 16,055 33,100 1,188 11,045 2,065 18,802 1973—Jan. 134,143 100,441 57,800 42,641 5,292 15,001 6,002 16,346 33,702 1,221 1,999 Feb. r 134,298 102,010 59,413 42,597 5,180 14,873 6,145 16,399 32,288 1,422 1,712 Mar.r 136,637 103,008 59,822 43,186 5,479 15,071 6,179 16,457 33,629 1,303 2,490 Apr.r 135,222 102,653 59,213 43,440 5,287 15,474 6,282 16,397 32,569 1,170 1,672 May r 137,095 104,005 59,579 44,426 5,496 16,082 6,298 16,550 33,090 1,282 2,288 Juner 137,959 105,158 60,390 44,768 16,892 32,801 * 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 5139 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............................ 2,357 330 443 1,057 527 1,309 141 906 2,379 2,357 22 475 371 104 576 1972—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................. 2,456 366 571 1,087 434 1,372 123 961 140 138 2 21 14 7 43 Mar................ 2,260 297 415 1,142 406 1,245 123 892 201 200 1 27 19 8 57 Apr.r............. 2,123 292 387 809 554 1,202 131 790 205 205 27 18 9 62 May r............. 2,417 257 601 1,004 555 1,272 162 983 234 234 29 18 11 57 June. 2,119 344 479 850 446 1,129 129 861 203 202 1 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT □ AUGUST 1973 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total non- Total Unemploy­ Period i p n ( o s N t p it u .S u la t .A i t o i . n o ) n al la ( b N N o . r o S t . f A i o n r . ) ce ( l f a S o b . r A c o e r .) Total Total E In m c u n p l o t l n u o a r y a g e l r d i 1 - In U pl n o e y m ed ­ (pe m r S r a . e A t c n e e . 2 t ) n t; 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—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 June................. 148,147 55,417 91,247 88,932 84,674 81,271 3,403 4,258 4.8 July................. 148,361 55,133 91,121 88,810 84,614 81,098 3,516 4,196 4.7 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) Contract Transporta­ Period Total M t a u n r u in f g ac­ Mining con ti s o tr n uc­ ti li o c n u & til i p ti u e b s ­ Trade Finance Service G m ov e e n r t n­ 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 70,593 19,349 623 3,381 4,493 14,914 3,688 11,612 12,535 70,645 18,529 602 3,411 4,442 15,142 3,796 11,669 12,858 1972............................................................... 72,764 18,933 607 3,521 4,495 15,683 3,927 12,309 13,290 seasonally adjusted 1972—July r................................................ 72,694 18,893 601 3,499 4,477 15,685 3,927 12,341 13,271 Aug.r................................................ 73,016 18,975 603 3,544 4,487 15,762 3,940 12,382 13,323 Sept.r............................................... 73,268 19,069 606 3,551 4,507 15,794 3,953 12,403 13,385 Oct.r................................................ 73,584 19,210 608 3,561 4,540 15,839 3,969 12,451 13,406 Nov.r............................................... 73,835 19,312 608 3^524 4,549 15,911 3,981 12,497 13,453 Dec.r................................................ 74,002 19,402 607 3,459 4,558 15,946 3,991 12,537 13,502 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................................................... 75,105 19,727 608 3,571 4,591 16,217 4,031 12,746 13,614 May.................................................. .75,321 19,782 608 3,620 4,593 16,256 4,044 12,776 13,642 June**................................................ 75,432 19,868 613 3,650 4,589 16,244 4,049 12,803 13,616 July*5................................................ 75,471 19,790 615 3,674 4,601 16,270 4,049 12,843 13,629 not seasonally adjusted 1972—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................................................... 74,861 19,856 603 3,442 4,559 16,088 4,019 12,771 13,793 May.................................................. 75,404 19,667 608 3,616 4,593 16,200 4,040 12,865 13,815 June**................................................ 76,214 20,014 626 3,833 4,653 16,317 4,089 12,982 13,700 July**................................................ 75,344 19,699 628 3,927 4,656 16,238 4,114 12,997 13,085 Note.—Bureau of Labor Statistics; data include all full- and part- persons, domestic servants, unpaid family workers, and members of time employees who worked during, or received pay for, the pay pe- Armed Forces are excluded. riod that includes the 12th of the month. Proprietors, self-employed Beginning with 1970, series has been adjusted to Mar. 1971 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1972 1973 1972 1973 July May June* July* July May June* July* 13,808 14,551 14,625 14,548 13,590 14,457 14,752 14,429 Durable goods....................................................................... 7,907 8,528 8,576 8,535 7,739 8,514 8,669 8,468 Ordnance and accessories.......................................... 96 99 98 100 95 98 98 99 Lumber and wood products...................................... 528 542 541 541 543 539 561 557 Furniture and fixtures................................................ 409 428 435 430 400 427 436 421 Stone, clay, and glass products................................ 529 555 554 553 539 555 568 564 Primary metal industries............................................ 969 1,044 1,052 1,046 981 1,056 1,074 1,058 Fabricated metal products........................................ 1,049 1,123 1,124 1,116 1,032 1,118 1,134 1,098 Machinery.................................................................. 1,234 1,366 1,379 1,370 1,225 1,368 1,390 1,361 1,234 1,370 1,386 1,394 1,217 1,358 1,386 1,374 Transportation equipment........................................ 1,253 1,354 1,360 1,347 1,111 1,357 1,372 1,308 Instruments and related products........................... 276 304 306 302 274 303 307 300 Miscellaneous manufacturing industries................ 330 343 341 336 322 338 345 327 5,901 6,023 6,049 6,013 5,851 5,943 6,083 5,961 Food and kindred products...................................... 1,186 1,170 1,173 1,177 1,215 1,109 1,164 1,206 Tobacco manufactures............................................... 62 63 63 64 54 55 56 56 Textile-mill products................................................... 870 900 900 901 857 897 912 887 Apparel and related products.................................. 1,142 1,174 1,176 1,131 1,096 1,174 1,188 1,086 Paper and allied products.......................................... 539 557 557 562 539 551 565 563 Printing, publishing, and allied industries............. 655 661 664 666 651 659 663 661 579 596 598 604 580 596 605 605 Petroleum refining and related industries............... 116 115 117 117 121 115 120 122 Rubber and misc. plastic products........................... 489 531 544 539 482 530 547 531 263 256 257 252 256 256 263 245 * Data adjusted to 1971 benchmark. Note.—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked1 Average weekly earnings1 Average hourly earnings1 (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1972 1973 1972 1973 1972 1973 July May June* July* July May June* July* July May June* July* 40.6 40.7 40.6 40.9 152.71 163.61 165.24 164.84 3.78 4.02 4.04 4.05 Durable goods.......................................................... 41.2 41.6 41.4 41.6 164.01 178.05 179.31 177.59 4.01 4.28 4.30 4.30 Ordnance and accessories............................. 42.3 41.9 41.7 42.5 171.38 177.24 176.82 177.66 4.10 4.23 4.22 4.23 Lumber and wood products........................ 41.1 40.7 40.8 40.9 136.94 145.14 149.45 146.06 3.34 3.54 3.61 3.58 Furniture and fixtures................................... 40.4 40.1 40.1 40.3 121.60 128.95 131.30 130.07 3.04 3.24 3.25 3.26 Stone, clay, and glass products................... 41.9 42.3 42.1 42.5 165.45 175.54 176.80 178.49 3.93 4.14 4.16 4.18 Primary metal industries.............................. 41.5 41.9 41.9 42.9 192.10 208.40 209.81 214.86 4.64 4.95 4.96 5.02 Fabricated metal products........................... 41.2 41.6 41.5 41.8 162.77 175.56 178.08 175.55 3.97 4.21 4.24 4.23 Machinery........................................................ 42.1 42.6 42.5 42.3 176.38 191.70 191.70 187.26 4.24 4.50 4.50 4.48 Electrical equipment and supplies............. 40.4 40.6 40.1 40.3 146.03 154.31 154.35 153.23 3.66 3.81 3.83 3.85 Transportation equipment........................... 41.4 42.1 42.0 42.7 190.76 211.50 214.70 214.12 4.63 5.00 5.04 5.05 Instruments and related products............... 40.5 40.7 40.5 40.3 148.37 156.72 156.31 153.22 3.70 3.86 3.85 3.84 Miscellaneous manufacturing industries... 39.3 39.1 39.0 38.8 119.89 127.14 127.47 124.86 3.09 3.26 3.26 3.26 Nondurable goods................................................... 39.6 39.6 39.6 39.8 138.16 143.78 145.27 146.83 3.48 3.64 3.65 3.68 Food and kindred products......................... 40.4 40.4 40.2 40.2 146.47 153.56 153.92 154.28 3.59 3.82 3.81 3.80 Tobacco manufactures.................................. 34.2 35.3 35.2 36.4 121.74 134.40 138.16 143.39 3.57 3.84 3.87 3.95 Textile-mill products...................................... 41.2 40.9 40.8 41.2 110.84 118.03 119.07 118.20 2.71 2.90 2.89 2.89 Apparel and related products..................... 35.9 36.0 35.9 36.3 92.88 98.37 98.64 99.37 2.58 2.74 2.74 2.73 Paper and allied products............................ 42.8 42.8 42.7 42.8 169.92 175.51 177.62 179.76 3.97 4.12 4.15 4.20 Printing, publishing, and allied industries. 37.9 38.0 37.8 38.0 170.62 176.99 176.61 178.69 4.49 4.67 4.66 4.69 Chemicals and allied products..................... 41.8 42.0 42.1 42.2 175.97 185.64 187.79 188.16 4.23 4.42 4.45 4.48 Petroleum refining and related industries . 41.7 42.1 41.7 41.9 210.23 220.81 219.56 222.70 4.97 5.22 5.24 5.24 Rubber and misc. plastic products............. 41.0 40.8 40.7 40.8 146.93 151.37 152.97 154.71 3.61 3.71 3.74 3.82 Leather and leather products....................... 38.4 37.9 38.1 38.3 105.03 106.68 107.97 108.25 2.70 2.80 2.79 2.79 1 Data adjusted to 1971 benchmark. Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 PRICES □ AUGUST 1973 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow o n m e e r - - F a o n u i d e l l e G a l n e a c d s ­ n F i a n i n u s g h d r s ­ ­ A u p p a p k n a e d e r p el T p t o r i a r o n t n a s ­ ­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O a o t n o h d d er s ship coal tricity opera­ care care recrea­ serv­ tion tion ices 1929........... 51.3 48.3 76.0 48.5 1933........... 38.8 30.6 54.1 36.9 1941........... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945........... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960........... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 196 5 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 94.2 196 6 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 97.2 196 7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 196 8 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 196 9 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 197 0 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 197 1 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 197 2 125.3 123.5 129.2 119.2 140.1 118.5 120.5 121.0 122.3 119.9 126.1 132.5 119.8 122.8 125.5 1972—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 fl 19.6 141.3 117.9 120.5 121.2 120.8 120.5 126.5 132.9 120.2 123.0 126.0 Sept. 126.2 124.8 130.1 119.9 141.5 118.0 120.5 121.6 123.1 121.0 126.8 133.1 120.5 123.7 126.2 Oct.. 126.6 124.9 130.4 120.3 141.8 118.1 120.9 121.8 124.3 121.2 127.2 133.9 120.8 124.0 126.4 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 May 131.5 137.9 133.3 123.5 144.2 129.3 125.7 123.9 126.7 123.5 129.6 136.6 124.4 125.6 128.5 June 132.4 139.8 133.9 123.9 145.0 131.6 125.4 124.7 126.8 124.6 130.0 137.0 124.9 125.9 129.0 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 o ie 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 e o s d d d e s d s Total t T e il t e 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 et u e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s t , . ­ e c M a q e h n r u i a y n d ip ­ ­ ­ F t e u u t r r c n e . , i­ N t m m a o l i e l n n i ­ c ­ ­ T e p t q r o i a o u r n n t ip a s ­ ­ ­ n c M e eo l i l u s a ­ s ­ ment erals ment1 1960................................ 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961................................ 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962................................ 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963................................ 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964................................ 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965................................ 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................ 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967................................ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968............................ 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969................................ 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970................................ 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1971................................ 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 1972................................ 119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9 111.4 126.1 113.8 114.6 1972—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.................... 120.7 128.8 123.1 119.1 115.1 144.0 121.3 104.7 109.8 149.4 115.0 124.1 118.5 112.3 127.3 113.0 115.0 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 J 973—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 June................... 136.7 182.3 151.8 126.9 123.7 140.9 142.8 110.4 112.6 183.1 122.0 132.5 121.9 115.2 131.1 115.0 120.2 July.................... 134.9 173.3 146.5 126.9 124.2 141.4 142.8 110.8 112.9 177.8 122.3 132.8 122.0 115.2 130.0 115.0 120.9 i Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1972 1973 1972 1973 Group Group July May June July July May June July Farm products: Pulp, paper, and allied products: Fresh and dried produce. 129.9 186.0 197.5 187.8 Pulp, paper and products, excluding Grains................................. 96.3 149.9 178.6 157.2 building paper and board............ 114.0 121.1 122.4 122.7 Livestock............................ 152.4 188.7 193.8 199.3 Woodpulp............................................ 111.5 122.4 122.4 130.8 Live poultry....................... 118.4 180.3 184.5 189.5 Wastepaper.......................................... 137.7 168.1 187.6 187.6 Plant and animal fibers.. 125.4 171.4 177.7 186.4 Paper..................................................... 116.7 120.8 122.5 121.8 Fluid milk.......................... 122.0 132.9 133.3 133.3 Paperboard.......................................... 106.0 114.6 116.7 116.7 Eggs..................................... 102.2 137.1 159.4 155.2 Converted paper and paperboard.. 113.7 121.0 121.5 121.5 Hay and seeds................... 116.8 243.0 299.9 187.4 Building paper and board................ 106.8 110.8 111.7 112.2 Other farm products........ 121.8 146.0 148.1 151.9 Processed foods and feeds: Metals and metal products: Cereal and bakery products........... 113.6 124.3 125.9 125.5 Meat, poultry, and fish.................... 135.8 162.5 164.9 169.7 Iron and steel.................................. 128.3 135.3 135.9 135.9 Dairy products.................................. 117.7 126.5 127.5 127.1 Steelmill products.......................... 130.3 134.1 134.3 134.3 Processed fruits and vegetables.... 119.6 127.2 127.9 127.7 Nonferrous metals......................... 116.8 133.2 135.0 135.9 Sugar and confectionery.................. 122.2 129.0 131.0 131.1 Metal containers............................ 129.9 135.7 135.7 135.6 Beverages and beverage materials. 117.9 121.9 121.4 121.1 Hardware......................................... 120.5 123.3 124.0 124.5 Animal fats and oils......................... 124.1 195.0 221.3 227.4 Plumbing equipment..................... 119.7 125.8 126.2 126.3 Crude vegetable oils......................... 106.9 153.1 168.8 169.7 Heating equipment........................ 119.0 120.2 120.7 120.9 Refined vegetable oils....................... 115.8 147.0 164.8 164.8 Fabricated structural metal products 122.2 126.7 126.9 127.1 Vegetable oil end products............. 121.4 131.6 137.4 137.2 Miscellaneous metal products... 124.2 128.3 128.7 129.1 Miscellaneous processed foods.... 114.4 118.9 119.9 123.4 Manufactured animal feeds............ 110.9 211.3 257.8 197.0 Textile products and apparel: Machinery and equipment: Cotton products.............................. 123.0 137.4 141.3 144.6 Agricultural machinery and equip... 122.7 125.0 125.4 125.5 Wool products................................. 100.0 127.5 131.3 132.1 Construction machinery and equip.. 125.9 130.9 131.3 130.9 Manmade fiber textile products. 108.9 121.5 122.9 123.1 Metalworking machinery and equip 120.5 125.2 125.6 125.8 Apparel.............................................. 115.1 118.4 118.8 118.8 General purpose machinery and Textile housefurnishings................ 109.5 110.5 111.5 111.5 equipment.......................................... 122.9 126.4 127.2 127.4 Miscellaneous textile products... 122.6 127.4 126.0 124.2 Special industry machinery and equipment.......................................... 123.9 129.0 130.0 130.2 Hides, skins, leather, and products: Electrical machinery and equip......... 110.7 112.3 112.7 112.7 Miscellaneous machinery................... 120.8 124.4 124.4 124.4 Hides and skins............ 212.5 253.5 241.6 246.3 Leather............................ 138.1 159.7 156.4 156.8 Footwear........................ 126.5 129.3 129.3 129.5 Other leather products. 116.5 129.1 129.0 129.2 Furniture and household durables: Fuels and related products, and power: Household furniture...................... 117.4 122.3 123.3 123.2 Commercial furniture................... 119.8 130.6 130.6 130.6 Coal........................................... 191.2 214.2 215.1 214.0 Floor coverings.............................. 98.8 102.5 102.7 102.7 Coke.......................................... 155.3 167.2 167.2 167.2 Household appliances................... 107.3 108.0 107.4 107.7 Gas fuels.................................. 113.2 121.4 128.0 128.7 Home electronic equipment......... 92.4 92.2 91.6 91.6 Electric power......................... 122.1 128.2 128.4 129.0 Other household durable goods.... 126.4 130.8 131.0 130.8 Crude petroleum..................... 113.2 122.0 125.3 125.8 Petroleum products, refined. 109.1 133.9 146.6 146.1 Chemicals and allied products: Nonmetallic mineral products: Industrial chemicals.............................. 101.5 102.7 103.0 103.4 Flat glass.............................................. 121.8 124.4 122.2 117.9 Prepared paint........................................ 118.3 120.8 121.0 121.0 Concrete ingredients.......................... 126.9 131.4 131.6 131.7 Paint materials....................................... 104.2 110.4 113.0 114.9 Concrete products.............................. 126.0 131.5 132.3 132.3 Drugs and pharmaceuticals.................. 103.2 104.0 104.4 104.4 Structural clay products excluding Fats and oils, inedible.........................., 113.2 232.0 263.6 263.2 refractories...................................... 117.5 123.6 123.8 123.8 Agricultural chemicals and products., 91.9 94.7 95.0 96.7 Refractories......................................... 127.1 136.3 136.3 136.3 Plastic resins and materials................. 87.9 92.4 92.7 93.1 Asphalt roofing.................................. 131.2 136.6 136.6 136.3 Other chemicals and products........... 113.3 117.7 118.0 118.1 Gypsum products.............................. 115.7 120.4 124.1 122.9 Glass containers................................. 136.4 136.8 141.6 137.1 Rubber and plastic products: Other nonmetallic minerals............. 127.1 129.1 129.5 128.1 Rubber and rubber products............... 113.8 117.1 118.0 118.5 Crude rubber........................................ 98.8 108.9 112.8 115.8 Tires and tubes.................................... 109.5 110.0 110.4 110.4 Transportation equipment:l Miscellaneous rubber products........ 121.3 124.7 125.2 125.4 Plastic construction products (Dec. Motor vehicles and equipment. 118.4 119.1 118.9 119.0 1969 = 100)............................................ 93.3 94.0 93.9 93.8 Railroad equipment..................... 130.2 134.3 134.8 134.8 Unsupported plastic film and sheeting (Dec. 1970= 100)................................. 98.2 99.2 101.1 100.8 Laminated sheets, high pressure (Dec. 1970= 100)................................. 98.3 97.2 97.7 98.7 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition....................................... 114.5 117.3 117.5 117.6 Lumber......................... 161.6 215.4 214.8 209.6 Tobacco products................................ 117.5 122.3 122.5 122.5 Millwork...................... 129.6 146.5 147.7 148.3 Notions................................................... 111.7 114.5 114.5 113.1 Plywood....................... 132.9 177.7 154.9 138.0 Photographic equipment and supplies 106.3 108.2 108.4 108.5 Other wood products. 125.6 149.6 151.9 152.9 Other miscellaneous products........... 117.4 124.7 127.0 129.5 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 □ AUGUST 1973 GROSS NATIONAL PRODUCT (In billions of dollars) 1972r 1973 Item 1929 1933 1941 1950 1968 1969 1970r 1971r 1972r II III IV Ir HP 103.1 55.6 124.5 284.8 864.2 930.3 977.11,055.51,155.21,142.41.166.51.199.2 1,242.51,271.0 101.4 57.2 120.1 278.0 857.1 922.5 972.61,049.41,149.11,136.91,157.81,191.01,287.81,265.8 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 719.2 734.1 752.6 119. A 795.1 9.2 3.5 9.6 30.5 84.0 90.8 91.3 103.6 117.4 115.1 120.2 122.9 132.2 133.1 37.7 22.3 42.9 98.1 230.8 245.9 263.8 278.7 299.9 297.9 302.3 310.7 322.2 329.8 30.3 20.1 28.1 62.4 221.3 242.7 262.6 284.9 309.2 306.2 311.6 319.0 325.0 332.2 16.2 1.4 17.9 54.1 126.0 139.0 136.3 153.2 178.3 174.7 181.5 189.4 194.5 199.2 14.5 3.0 13.4 47.3 118.9 131.1 131.7 147.1 172.3 169.2 172.9 181.2 189.9 194.0 10.6 2.4 9.5 27.9 88.8 98.5 100.6 104.4 118.2 116.3 118.3 124.3 130.9 134.4 Structures................................................... 5.0 .9 2.9 9.2 30.3 34.2 36.1 37.9 41.7 41.5 41.3 43.0 45.3 47.2 Producers’ durable equipment.............. 5.6 1.5 6.6 18.7 58.5 64.3 64.4 66.5 76.5 74.9 77.0 81.2 85.5 87.3 Residential structures.................................. 4.0 .6 3.9 19.4 30.1 32.6 31.2 42.7 54.0 52.8 54.5 56.9 59.0 59.5 Nonfarm.................................................... 3.8 .5 3.7 18.6 29.5 32.0 30.7 42.2 53.5 52.3 53.9 56.4 58.4 59.0 Change in business inventories..................... 1.7 -1.6 4.5 6.8 7.1 7.8 4.5 6.1 6.0 5.5 8.7 8.2 4.6 5.3 1.8 -1.4 4.0 6.0 6.9 7.7 4.3 4.5 5.6 4.8 8.4 7.9 4.4 5.1 1.1 .4 1.3 1.8 2.5 1.9 3.6 .8 -4.6 -5.7 -3.8 -3.5 .0 1.7 Exports........................................................... 7.0 2.4 5.9 13.8 50.6 55.5 62.9 66.3 73.5 69.9 74.0 79.7 89.7 95.1 5.9 2.0 4.6 12.0 48.1 53.6 59.3 65.5 78.1 75.6 77.7 83.2 89.7 93.4 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 199.6 210.0 219.5 234.3 255.0 254.2 254.7 260.7 268.6 275.0 1.3 2.0 16.9 18.4 98.8 98.8 96.2 98.1 104.4 106.7 102.3 102.7 105.5 106.5 National defense.......................................... 13.8 14.1 78.3 78.4 74.6 71.6 74.4 76.6 71.9 72.4 74.3 74.5 Other............................................................... 3.1 4.3 20.5 20.4 21.6 26.5 30.1 30.1 30.4 30.3 31^2 32^0 7.2 6.0 7.9 19.5 100.8 111.2 123.3 136.2 150.5 147.5 152.4 158.0 163.0 168.'5 Gross national product in constant (1958) 1 dollars................................................................. 203.6 141.5 263.7 355.3| 706.6 725.6 722.5 745.4 790.7 785.6 796.7| 812.3 829.3 834.6 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 r 1973 1929 1933 1941 1950 1968 1969 1970r 1971r 1972r Item II 111 IV Ir II* National income.................................................... 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.61,015.0 Compensation of employees................................ 51.1 29.5 64.8 154.6 514.6 566.0 603.9 644.1 707.1 699.6 713.1 731.2 757.4 774.7 Wages and salaries........................................... 50.4 29.0 62.1 146.8 464.9 509.7 542.0 573.8 627.3 620.8 632.5 648.7 666.7 682.2 Private............................................................. 45.5 23.9 51.9 124.4 369.2 405.6 426.9 449.7 493.3 488.4 497.5 510.9 525.1 538.6 Military.......................................................... .3 .3 1.9 5.0 17.9 19.0 19.6 19.4 20.3 20.1 20.0 20.1 20.9 20.5 4.6 4.9 8.3 17.4 77.. 8 85.1 95.5 104.7 113.8 112.3 115.1 117.7 120.7 123.1 Supplements to wages and salaries................ .7 .5 2.7 7.8 49.7 56.3 61.9 70.3 79.7 78.9 80.5 82.5 90.8 92.5 Employer contributions for social in­ surance ....................................................... .1 A 2.0 4.0 24.3 27.8 29.7 33.7 39.0 38.7 39.3 40.2 41.4 48.3 Other labor income...................................... .6 .4 .7 3.8 25.4 28.4 32.2 36.6 40.7 40.2 41.3 42.3 43.3 44.2 Proprietors’ income.............................................. 15.1 5.9 17.5 37.5 64.2 67.2 66.9 68.7 74.2 73.2 74.1 77.1 80.6 81.5 Business and professional.............................. 9.0 3.3 11.1 24.0 49.5 50.5 50.0 51.9 54.0 53.3 54.3 55.3 56.3 57.1 Farm................................................................... 6.2 2.6 6.4 13.5 14.7 16.7 16.9 16.8 20.2 19.9 19.8 21.8 24.3 24.4 Rental income of persons.................................... 5.4 2.0 3.5 9.4 21.2 22.6 23.9 24.5 24.1 22.6 24.9 24.9 24.7 24.6 Corporate profits and inventory valuation adjustment......................................................... 10.5 — 1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1 88.0 91.5 98.8 104.3 Profits before tax............................................. 10.0 1.0 17.7 42.6 87.6 84.9 74.0 85.1 98.0 94.8 98.4 106.1 119.6 Profits tax liability........................................ 1.4 . 5 7.6 17.8 39.9 40.1 34.8 37.4 42.7 41.4 42.9 45.9 52.1 Profits after tax............................................ 8.6 4 10.1 24 9 47.8 44.8 39.3 47.6 55.4 53.4 55.6 60.3 66.9 Dividends.................................................. 5.8 2.0 4.4 8^8 23.6 24.3 24.1 25.1 26.0 25.9 26.2 26.4 26.9 27.3 Undistributed profits.............................. 2.8 — 1.6 5.7 16.0 24.2 20.5 14.6 22.5 29.3 21.5 29.4 33.9 40.0 Inventory valuation adjustment.................... .5 -2.1 -2.5 -5.0 -3.3 -5.1 -4.8 -4.9 -6.9 - 6.1 -6.9 -7.3 -15.4 -21.1 Net interest............................................................. 4.7 4.1 3.2 2.0 26.9 30.5 36.5 42.0 45.2 44.8 45.7 46.6 47.9 49.4 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

AUGUST 1973 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1972 r 1973 Item 1929 1933 1941 1950 1968 1969 1970r 1971r 1972r II III IV Ir Up Gross national product........................................ 103.1 55.6 124.5 284.8 864.2 930.3 977.11,055.51,155.21,142.41,166.51,199.21,242.51,271.0 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 74.5 81.6 87.3 93.8 102.4 103.6 102.3 105.1 106.9 109.4 Indirect business tax and nontax lia­ bility ....................................................... 7.0 7.1 11.3 23.3 78.6 85.9 93.5 102.4 109.5 108.4 110.5 112.8 115.6 117.2 .6 .7 .5 .8 3.4 3.8 4.0 4.3 4.6 4.6 4.7 4.7 4.8 4.9 .7 .6 .4 1.5 —2.7 -6.1 -6.4 -3.4 — 1.5 -1.0 1.6 0.2 1.1 Plus: Subsidies less current surplus of gov- -.1 .1 .2 .7 1.0 1.7 1.2 1.7 1.5 1.8 2.2 .9 .6 Equals: National income...................................... 86.8 40.3 104.2 241.1 711.1 766.0 800.5 859.4 941.8 928.3 949.2 978.61,015.0 Less: Corporate profits and inventory valu­ ation adjustment.................................. 10.5 -1.2 15.2 37.7 84.3 79.8 69.2 80.1 91.1| 88.0 91.5 98.8 104.3 Contributions for social insurance.... .2 .3 2.8 6.9 47.1 54.2 57.7 64.6 73.7 72.9 74.5 75.8 89.3 90.8 Excess of wage accruals over disburse­ ments ....................................................... .0 .6 - .5 - .4 - .2 .0 .0 — .3 Plus: Government transfer payments............ .9 1.5 2.6 14.3 56.1 61.9 75.1 88.9 98.3 95.3 96.4 107.3 108.8 111.0 Net interest paid by government and consumers............................................. 2.5 1.6 2.2 7.2 26.1 28.7 31.0 31.0 32.7 32.6 32.9 33.7 34.7 36.2 Dividends................................................... 5.8 2.0 4.4 8.8 23.6 24.3 24.7 25.1 26.0 25.9 26.2 26.4 26.9 27.3 Business transfer payments................... .6 .7 .5 .8 3.4 3.8 4.0 4.3 4.6 4.6 4.7 4.7 4.8 4.9 Equals: Personal income.................................... 85.9 47.0 96.0 227.6 688.9 750.9 808.3 863.5 939.2 926.1 943.7 976.1 996.61,019.1 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 97.9 116.5 116.6 117.5 142.2 140.7 142.8 147.4 145.1 148.8 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 591.0 634.4 691.7 746.0 797.0 785.4 800.9 828.7 851.5 870.4 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 551.2 596.2 635.5 685.8 747.2 739.5 755.1 774.3 801.5 818.0 Personal consumption expenditures. 77.2 45.8 80.6 191.0 536.2 579.5 617.6 667.2 726.5 719.2 734.1 752.6 779.4 795.1 Consumer interest payments............. 1.5 .5 .9 2.4 14.3 15.8 16.8 17.7 19.7 19.4 20.0 20.7 21.2 22.0 Personal transfer payments to for- .3 .2 .2 .5 .8 .9 1.0 1.0 1.0 .9 1.0 1.1 .9 .9 Equals: Personal saving....................................... 4.2 -.9 11.0 13.1 39.8 38.2 56.2 60.2 49.7 45.9 45.8 54.4 50.0 52.4 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.9 571.6 579.3 595.1 603.9 606.2 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 1971r 1972r June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar.r Apr.r May June? Total personal income............................ 863.5 939.2 927.0 935.2 944.4 951.3 967.0 977.6 983.6 989.1 997.41,003.31,011.61,018.71,027.1 Wage and salary disbursements........... 573.3 627.8 624.6 627.0 632.6 638.7 643.8 648.4 654.0 661.7 667.2 671.1 677.6 682.0 687.9 Commodity-producing industries.. 206.3 226.0 224.6 224.4 227.4 230.1 232.8 235.0 236.8 239.2 242.2 243.5 245.9 248.3 251.5 Manufacturing only........................ 160.5 175.9 174.8 174.9 177.0 179.3 181.6 183.8 185.6 187.1 189.6 190.6 192.9 194.7 196.9 Distributive industries....................... 138.3 151.5 151.3 151.6 152.4 153.6 155.2 155.6 157.2 158.7 159.3 160.6 162.2 163.2 164.3 Service industries................................ 104.7 116.1 115.8 117.2 117.6 118.8 119.2 119.8 121.3 122.9 124.1 124.9 126.4 126.8 127.7 Government......................................... 123.9 134.2 132.9 133.8 135.1 136.2 136.7 138.1 138.7 140.9 141.6 142.2 143.1 143.7 144.3 Other labor income................................ 36.6 40.7 40.6 40.9 41.3 41.6 42.0 42.3 42.7 43.0 43.3 43.6 43.9 44.2 44.5 Proprietors* income............................... 68.7 74.2 72.0 73.3 74.3 74.6 75.9 77.5 77.9 80.1 80.6 81.0 81.0 81.5 82.0 Business and professional................. 51.9 54.0 52.4 54.0 54.5 54.3 55.1 55.1 55.6 56.1 56.3 56.4 56.8 57.1 57.4 Farm..................................................... 16.8 20.2 19.6 19.3 19.8 20.3 20.8 22.4 22.3 24.0 24.3 24.6 24.2 24.4 24.6 Rental income......................................... 24.5 24.1 19.8 24.4 25.2 25.1 25.1 24.7 24.9 24.8 24.8 24.6 24.3 24.6 24.9 Dividends................................................. 25.1 26.0 25.9 26.1 26.3 26.2 26.3 26.3 26.5 26.8 26.9 27.0 27.3 27.3 27.4 Personal interest income....................... 73.0 78.0 78.2 78.3 78.5 78.9 79.6 80.4 81.1 81.9 82.6 83.4 84.5 85.7 86.8 Transfer payments.................................. 93.2 103.0 100.2 100.6 101.3 101.4 109.7 113.7 112.6 112.5 113.8 114.5 115.3 115.9 116.4 Less: Personal contributions for social insurance.......................................... 30.9 34.7 34.4 35.4 35.0 35.2 35.4 35.7 35.9 41.7 41.9 42.0 42.4 42.5 42.7 Nonagricultural income.......................... 839.8 911.5 900.1 908.6 917.3 923.6 938.8 947.7 953.6 957.4 965.3 970.9 979.5 986.4 994.6 Agricultural income................................ 23.7 27.7 26.9 26.6 27.1 27.7 28.2 29.9 30.0 31.8 32.1 32.4 32.0 32.2 32.5 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 a AUGUST 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 93.8 109.7 142.9 168.9 151.1 189.9 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 18.2 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 4.9 4 5 All other nonfinancial sectors.. 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 139.7 166.7 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 11.8 6 7 Debt instruments............................. 64.1 68.0 85.1 90.6 81.9 117.4 96.6 83.9 79.6 84.7 108.0 126.1 126.6 155.0 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 99.8 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 15.0 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 13.4 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 71.4 11 12 Home mortgages................. 11.4 11.6 15.2 15.7 12.8 26.1 16.8 14.6 11.2 14.4 20.4 31.8 33.4 43.4 12 13 Other residential.................. 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 9.5 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 16.0 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 2.1 2.5 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 39.4 55.2 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 25.7 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 6.3 9.3 20 21 By borrowing sector...................... 65.0 70.4 84.4 95.3 88.8 130.8 98.5 91.5 85.6 92.3 120.6 140.3 139.7 166.7 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 4.0 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 15.4 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 70.5 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 69.0 76.9 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 52.3 60.5 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 12.6 11.5 27 28 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 4.8 28 29 Memo: U.S. Govt, cash balance totals net o f 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 3.8 29 30 Total funds raised................................ 69.1 82.2 99.0 91.3 98.9 153.1 93.6 88.8 91.6 106.6 143.9 161.3 156.2 186.1 30 31 by U.S. G overnment....................... 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 19.4 31 Private net investment and borrowing in credit markets Total, households and business 1 Total capital outlays1............... 191.2 188.7 208.7 227.1 225.5 252.9 224.2 229.9 224.3 226.7 247.0 258.8 282.9 305.7 1 2 Capital consumption2..................... 118.5 128.4 140.4 154.4 164.9 178.5 151.0 157.7 162.5 167.3 174.5 182.6 191.7 197.4 2 3 Net physical investment................. 72.7 60.3 68.3 72.? 60.6 74.3 73.2 72.2 61.8 59.4 72.5 76.1 91.2 108.3 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 93.1 115.4 122.9 147.4 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 -31.7 -39.1 5 Total business 6 Total capital outlays................. 97.0 94.0 99.0 109.3 110.1 118.0 106.1 112.4 108.4 111.9 116.9 119.0 133.5 146.6 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 88.1 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 45.3 56.4 8 9 Net debt funds raised..................... 33.0 35.8 40.0 46.5 42.7 49.6 49.5 43.4 43.7 41.9 49.2 49.9 55.7 64.5 9 10 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 12.4 10 11 Excess net investment3................... 8.7 -2.5 -3.3 -11.1 -12.9 -25.1 -12.6 -9.5 -14.4 -11.6 -22.4 -27.7 -23.7 -20.5 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 97.5 108.1 12 13 Capital consumption....................... 38.2 41.5 45.1 49.9 52.7 57.3 48.7 51.1 52.3 53.1 55.6 59.0 63.2 65.4 13 14 38.9 30.5 31.1 34.2 31.9 27.9 32.9 35.4 30.7 33.1 29.4 26.4 34.3 42.7 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 38.9 48.1 15 16 1.2 2.3 -.8 4.3 6.8 13.4 1.2 7.4 6.3 7.3 12.3 14.5 13.4 12.4 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 -17.8 17 Households 18 94.2 94.6 109.7 117.8 115.3 134.9 118.1 117.5 115.9 114.8 130.1 139.8 149.5 159.1 18 19 64.3 69.9 77.2 84.8 91.3 98.5 83.1 86.6 89.6 93.0 96.7 100.3 103.6 107.2 19 20 29.9 24.7 32.5 33.0 24.0 36.4 35.1 30.9 26.3 21.7 33.4 39.4 45.9 51.9 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 70.5 21 22 6.7 5.0 .6 .5 1.7 -5.2 .9 .6 4.3 -1.2 1.9 -11.5 -8.0 -18.6 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 -10.2 -18.5 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 5.0 1.8 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 2.8 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 4.6 26 1 Capital outlays are totals for residential and nonresidential fixed Funds raised by type and sector. Credit flows included here are the capital, net change in inventories, and consumer durables, except outlays net amounts raised by households, nonfinancial business, governments, by financial business. and foreigners. All funds raised by financial sectors are excluded. U.S. 2 Capital consumption includes amounts for consumer durables and Government budget issues (line 4) are loan participation certificates excludes financial business capital consumption. issued by CCC, Export-Import Bank, FNMA, and GNMA, together with 3 Excess of net investment over net funds raised. security issues by FHA, Export-Import Bank, and TV A. Issues by Federally sponsored credit agencies are excluded as borrowing by financial institu­ Note.—Full sector statements are available on a quarterly basis for tions. Such issues are in U.S. Government securities on p. A-71, line 11. Digitized for FfloRwAs SanEdR a nnually in amounts outstanding. Requests for these statements Corporate share issues are net cash issues by nonfinancial and foreign should be addressed to the Flow of Funds Section, Division of Research corporations. Mortgages exclude loans in process. Open market paper is http://fraser.satlnodu Sistafetisdt.icosr, gB/ oard of Governors of the Federal Reserve System, Wash­ commercial paper issued by nonfinancial corporations plus bankers’ Federal Reseinrvgteo nB, aDn.Ck .,o 2f 0S55t.1 .Louis acceptances.

AUGUST 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 87.8 102.1 130.2 154.7 138.0 178.1 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 19.6 16.8 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 13.2 4.0 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 4.3 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 5.7 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 3.0 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 6.2 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 4.8 -3.9 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 11.4 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 5.4 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 92.8 117.3 125.4 166.7 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 5.3 24.7 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 15.0 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 13.5 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 48.5 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 53.3 67.9 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 86.1 105.9 105.3 125.5 157.3 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 54.8 79.0 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 49.0 49.1 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 14.7 16.4 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 12.8 23 24 Sources of funds.................................... 44.7 62.8 75.0 54.0 70.2 105.8 64.3 43.6 54.3 86.1 105.9 105.3 125.5 157.3 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 78.6 100.3 98.8 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 20.5 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 18.1 38.0 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 4.2 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 12.1 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 9.9 17.0 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 7.0 30.0 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 -5.2 13.6 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 4.5 5.9 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 5.5 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 .4 .6 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 3.1 4.4 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 80.9 105.5 103.3 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 92.3 84.8 39 40 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 18.4 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 8.1 13.9 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 5.1 4.5 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 96.9 102.0 112.4 133.2 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 9.4 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 89.8 100.0 94.4 45 46 Total foreign funds......................... 2.1 4.3 2.9 9.0 1.8 23.1 11.8 6.2 4.9 -..3 19.1 27.1 9.8 15.6 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 11.2 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 -.7 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 11.9 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 14.6 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 -3.4 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 2F8R. FAoSreEigRn deposits at commercial banks, bank borrowings from foreign http://fraser.stlouisfed.org/ Corporate equities Lines 1 and 3 include issues by financial institutions. Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS o AUGUST 1973 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1972 1973 Line Credits+, debits — 1970 1971 1972 I II III IV Ip Summary—Seasonally adjusted 1 Merchandise trade balance 1........................................................ 2,176 -2,698 -6,912 -1,820 -1,774 -1,573 -1,745 -960 2 Exports...................................................................................... 41,964 42,768 48,769 11,655 11,539 12,362 13,213 15,320 3 Imports...................................................................................... -39,788 -45,466 -55,681 -13,475 -13,313 -13,935 -14,958 -16,280 4 -3,374 -2,918 -3,558 -894 -954 -846 -864 -824 5 Travel and transportation, net..................................................... -2,013 -2,288 -2,853 -755 -691 -679 -730 -699 6 Investment income, net 2............................................................... 6,260 7,972 7,862 1,891 1,791 1,950 2,232 2,247 7 U.S. direct investments abroad............................................ 7,920 9,456 10,433 2,392 2,450 2,600 2,991 3,109 8 Other U.S. investments abroad............................................ 3,506 3,443 3,492 922 820 876 875 996 9 Foreign investments in the United States......................... -5,166 -4,927 -6,063 -1,423 -1,479 -1,526 -1,634 -1,858 10 Other services, net........................................................................... 581 739 850 204 202 209 237 237 11 3,630 807 -4,609 -1,374 -1,426 -939 -870 1 12 Remittances, pensions, and other transfers.............................. -1,481 -1,553 -1,570 -391 -375 -373 -429 -400 13 Balance on goods, services, and remittances...................................... 2,150 -745 -6,179 -1,765 -1,801 -1,312 -1,299 -399 14 U.S. Government grants (excluding military)........................... -1,734 -2,045 -2,174 -578 -563 -581 -452 -351 15 Balance on current account..................................................................... 416 -2,790 -8,353 -2,343 -2,364 -1,893 -1,751 -750 16 U.S. Government capital flows excluding nonscheduled repayments, net 4........................................................................ -1,829 -2,117 -1,714 -298 -245 -542 -627 -677 17 Nonscheduled repayments of U.S. Government assets........... 244 225 137 88 17 7 26 111 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. -433 -467 238 -79 133 169 15 222 19 Long-term private capital flows, net........................................... -1,429 -4,401 -151 -1,143 604 -393 781 -120 20 U.S. direct investments abroad............................................ -4,410 -4,943 -3,404 -1,302 -183 -1,148 -771 -2,139 21 Foreign direct investments in the United States.............. 1,030 -115 160 -361 183 178 160 247 22 Foreign securities.................................................................... -942 -966 -614 -437 -346 209 -40 47 23 U.S. securities other than Treasury issues......................... 2,190 2,269 4,335 1,058 956 553 1,768 1,738 24 Other, reported by U.S. banks............................................ 178 -862 -1,120 11 -263 -426 -442 -155 25 Other, reported by U.S. nonbanking concerns................. 526 216 492 -112 257 241 106 142 26 Balance on current account and long-term capital 4.......................... -3,031 -9,550 -9,842 -3,775 -1,855 -2,652 -1,556 -1,214 27 Nonliquid short-term pr ivate capital flows, net....................... -482 -2,347 -1,637 -535 310 -430 -982 -1,420 28 Claims reported by U.S. banks............................................ -1,023 -1,802 -1,495 -575 206 -267 -859 -1,757 29 Claims reported by U.S. nonbanking concerns............... -361 -530 -315 -5 62 -122 -250 222 30 Liabilities reported by U.S. nonbanking concerns.......... 902 -15 173 45 42 -41 127 115 31 Allocations of Special Drawing Rights (SDR’s).................... 867 717 710 178 178 177 177 32 Errors and omissions, net............................................................. -1,205 -10,784 -3,112 944 -940 -1,626 -1,490 -4,237 33 Net liquidity balance................................................................................ -3,851 -21,965 -13,882 -3,188 -2,307 -4,531 -3,851 -6,871 34 Liquid private capital flows, net................................................... -5,988 -7,788 3,542 -288 1,456 7 2,367 -3,631 35 Liquid claims............................................................................ 252 -1,097 -1,234 -802 109 -410 -131 -1,742 36 -99 -566 -742 -637 246 -274 -77 -1,295 37 Reported by U.S. nonbanking concerns................... 351 -531 -492 -165 -137 -136 -54 -447 38 Liquid liabilities...................................................................... -6,240 -6,691 4,776 514 1,347 417 2,498 -1,889 39 To foreign commercial banks...................................... -6,508 -6,908 3,862 436 1,136 295 1,995 -1,910 40 To international and regional organizations............ 181 682 104 25 -70 -32 181 6 41 Toother foreigners......................................................... 87 -465 810 53 281 154 322 15 42 Official reserve transactions balance..................................................... -9,839 -29,753 -10,340 -3,476 -851 -4,524 -1,484 -10,502 Financed by changes in: 43 Liquid liabilities to foreign official agencies.............................. 7,637 27,615 9,720 2,546 1,057 4,467 1,645 9,124 44 Other readily marketable liabilities to foreign official agen­ cies 5................................................................................................. -810 -551 399 221 27 34 117 1,202 45 Nonliquid liabilities to foreign official reserve agencies re­ ported by U.S. Govt................................................................... 535 341 189 280 -2 78 -167 -44 46 U.S. official reserve assets, net..................................................... 2,477 2,348 32 429 -231 -55 -111 220 47 Gold........................................................................................... 787 866 547 544 3 48 SDR’s........................................................................................ -851 -249 -703 -178 -171 -177 -177 49 Convertible currencies........................................................... 2,152 381 35 64 -245 134 82 233 50 Gold tranche position in IMF............................................. 389 1,350 153 -1 185 -15 -16 -13 Memoranda: 51 Transfers under military grant programs (excluded from lines 2, 4, and 14)........................................................................ 2,586 3,153 4,200 1,143 920 1,189 949 717 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. 2,948 3,192 (6) (6) (6) (6) (6) (6) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)........................ 434 498 (6) (6) (6) (6) (6) (0) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1972 1973 Credits +»debits — 1970 1971 1972 I II III IV Ip Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance............................................................................ -4,718 -22,682 -14,592 -3,366 -2,485 -4,708 -4,028 -6,871 Official reserve transactions balance................................................. -10,706 -30,470 -11,050 -3,654 -1,029 -4,701 -1,661 -10,502 Balances not seasonally adjusted Balance on goods and services........................................................... 3,630 807 -4,609 -880 -1,489 -2,409 168 673 Balance on goods, services, and remittances.................................. 2,150 -745 -6,179 -1,248 -1,873 -2,796 -263 299 Balance on current account................................................................ 416 -2,790 -8,353 -1,853 -2,471 -3,333 -698 -81 Balance on current account and long-term capital 4.................... -3,031 -9,550 -9,842 -3,824 -2,310 -4,052 343 -1,094 Balances including allocations of SDR’s: Net liquidity................................................................................... -3,851 -21,965 -13,882 -2,352 -3,034 -5,299 -3,197 -6,459 Official reserve transactions....................................................... -9,839 -29,753 -10,340 -2,506 -741 -5,590 -1,503 -9,961 Balances excluding allocations of SDR’s: Net liquidity................................................................................... -4,718 -22,682 -14,592 -3,062 -3,034 -5,299 -3,197 -6,459 Official reserve transactions....................................................... -10,706 -30,470 -11,050 -3,216 -741 -5,590 -1,503 -9,961 1 Adjusted to balance of payments basis; excludes transfers under 4 Includes some short-term U.S. Govt, assets. military grants, exports under U.S. military agency sales contracts and 5 Includes changes in long-term liabilities reported by banks in the imports of U.S. military agencies. United States and in investments by foreign official agencies in debt 2 1In,cl.u..d..e.s. .f.e..e.s. ..a.n..d. ..r.o..y.a..lt.i-es from U.S. direct investments abroad or securities of U.S. Federally-sponsored agencies and U.S. corporations. from foreign direct investments in the United States. 6 Not available. 3 Equal to net exports of goods and services in national income and Note.—Data are from U.S. Department of Commerce, Bureau of Eco­ product accounts of the United States. nomic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance 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 '4,415 5,281 184 2 ' — 341 -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 '-647 -53 Apr.. 3,410 3,631 '3,820 5,487 3,262 3,774 '4,417 5,291 148 -143 '-596 196 May. 3,661 3,746 '3,882 5,603 3,367 3,908 '4,486 5,761 324 -161 -604 -158 June. 3,727 3,672 3,971 5,778 3,265 4,037 4,468 5,794 462 -365 -497 -16 July.. 3,704 3,573 '4,074 3,254 3,832 4,565 450 -259 ' — 491 Aug.. 3,591 3,667 '4,197 3,346 3,913 '4,726 245 -247 ' — 530 Sept.. 3,553 4,487 '4,176 3,423 4,179 '4,612 130 308 '-436 Oct.. 3,688 2,669 '4,316 3,498 3,469 '4,738 190 -800 ' — 421 Nov.. 3,499 3,196 4,473 3,428 3,456 '5,148 71 -260 '-675 Dec.. 3,569 3,881 '4,558 3,401 4,169 5,002 168 -288 '-444 Quarter; I__ 10,327 11,086 11,767 15,421 9,720 10,792 '13,403 16,254 607 294 -1,637 -833 11.... 10,798 11,049 11,673 16,868 9,864 11,719 '13,370 16,846 933 -670 -1,697 22 111... 10,848 11,727 '12,447 10,023 11,924 '13,903 816 -197 -1,456 IV... 10,756 9,746 '13,347 10,327 11,094 '14,888 425 -1,348 -1,540 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 □ AUGUST 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 Germany, Fed. Rep. of. . . -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 — i75 329 618 150 80 -879 -835 200 Other...................................... 1 -6 -35 -49 16 -47 U -29 —13 Total.............................. -399 -88 -1,299 -659 -980 -669 969 -204 —796 Canada .................................... 200 150 50 Latin American republics: Argentina ............................ -30 -39 -1 -25 -25 -28 Brazil...................................... 72 54 25 -3 -1 * -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 Fund 5..... 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 * 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

AUGUST 1973 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo u e C c r r r i o t e r e i i n e b s g n ­ l n e ­ p R I o e M s s i i n e t F r io v 3 n e SDR’s 4 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 u e C c r r r i o e e t r i i n s e b g 5 n ­ l n e ­ p R I o e M s s i i n e t F r io v 3 n e SDR’s4 1959... 21,504 19,507 19,456 1,997 1972 1960... 19,359 17,804 17,767 1,555 July. . . 13 090 10 490 10 410 203 439 1,958 1961... 18,753 16,947 16,889 116 1,690 Aug---- 13,124 10,’488 10*410 234 444 1 *958 1962... 17,220 16,057 15,978 99 1,064 Sept.... 13,217 10,487 10,410 323 449 1,958 1963... 16,843 15,596 15,513 212 1,035 Oct.... 13,313 10,487 10,410 414 454 1,958 1964... 16,672 15,471 15,388 432 769 Nov.... 13,307 10,487 10,410 403 459 1,958 Dec.... 13,151 10,487 10,410 241 465 1,958 1965... 15,450 6 13,806 613,733 781 6 863 1966... 14,882 13,235 13,159 1,321 326 1973 1967... 14,830 12,065 11,982 2,345 420 Jan.... 13,054 10,487 10,410 140 469 1,958 1968... 15,710 10,892 10,367 3,528 1,290 Feb.... 12,926 10,487 10,410 8 473 1,958 1969... 716,964 11,859 10,367 72,781 2,324 Mar. .. 12,931 10,487 10,410 8 478 1,958 Apr.... 12,904 10,487 10,410 8 460 1,949 1970... 14,487 11,072 10,732 629 1,935 851 May... 12,916 10,487 10,410 16 464 1,949 1971... 812,167 10,206 10,132 8 276 585 1,100 June. .. 12,914 10,487 10,410 8 470 1,949 19729.. 13,151 10,487 10,410 241 465 1,958 July. . . 12,918 10,487 10,410 8 474 1,949 1 Includes (a) gold sold to the United States by the IMF with the right became effective on Feb. 23, 1966. In figures published by the IMF from of repurchase, and (b) gold deposited by the IMF to mitigate the impact June 1965 through Jan. 1966, this gold subscription was included in the on the U.S. gold stock of foreign purchases for the purpose of making U.S. gold stock and excluded from the reserve position. gold subscriptions to the IMF under quota increases. For corresponding 7 Includes gain of $67 million resulting from revaluation of the German liabilities, see Table 6. mark in Oct. 1969, of which $13 million represents gain on mark holdings 2 Includes gold in Exchange Stabilization Fund. at time of revaluation. 3 The United States has the right to purchase foreign currencies equiva­ 8 Includes $28 million increase in dollar value of foreign currencies lent to its reserve position in the IMF automatically if needed. Under ap­ revalued to reflect market exchange rates as of Dec. 31, 1971. propriate conditions the United States could purchase additional amounts 9 Total reserve assets include an increase of $1,016 million resulting equal to the U.S. quota. See Table 5. from change in par value of the U.S. dollar on May 8, 1972; of which, 4 Includes allocations by the IMF of Special Drawing Rights as follows: total gold stock is $828 million (Treasury gold stock $822 million), reserve $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 position in IMF $33 million, and SDR’s $155 million. million on Jan. 1, 1972; plus net transactions in SDRs. 5 For holdings of F.R. Banks only, see pp. A-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 d a io b y o n s m o ll c s f a r e r n i i s p n t ­ s by s g N I a o M l e l e d t s F ^ T t c f i r o c u o a i r r n e n e r s s i s e g a n 2 i n n c ­ ­ I i d M n o c F l i o l n a m n rs e e t P d u o r l c o l h a f r a s s e 3 s pu d r o R c l i h l n 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 i d o d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 6712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6,115 91 585 1972. ‘ 7*541’ 200 -47 694 6,810 94 465 1972—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 June. -6 -6 6,804 94 470 July. -4 -4 6,800 93 474 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. □ AUGUST 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 d od Total a a t c f I r r g t r M i a i o o s o n i l m n d n F s s g ­ 1 Total t p l S b i i t o e h a a e b i r s b o r n n y t m i r k r e l t e d i s ­ ­ ­ M n T b U o a o a a r b t r n e n . e S k a l d d e s . s e s 3 . t­ N v k T b o e e U c o a n r r t o n n e t a . m S n i a d b d b ­ . s a l s l . e e r­ N n v k T b o n o e e U o a n r r n o t e n n a t . m c t S i a d b e d b o . s a s l s l n . e e 4 r ­ ­ m r l O i e t a a a a i t b r b e h d k l s i e i e l e 5 l r i y t ­ ­ a t m L l o b b i a e i a r t q c r i b o n e o u c a i s k m i l 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 r s b o r n n t y m r i r k e l t e i d s ­ ­ ­ n M T b o U a a o a r t b r e e n n .S k l a s d d e 3 . s e s . ’ t 7 ­ z a o m g a n r n t i i t g o o a d o n i a n r n o n t r y n i n e a ­ , e i ­ l s ­ ­ 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........................... J26,433 800 14,459 12,467 1,217 703 63 9 5,817 3,397 3,046 351 1,960 126,394 800 14,425 12,467 1,183 703 63 9 5,817 3,387 3,046 341 1,965 1964 9........................... /29,313 800 15,790 13,224 1,125 1,079 204 158 7,271 3,730 3,354 376 1,722 \29,364 800 15,786 13,220 1,125 1,079 204 158 7,303 3,753 3,377 376 1,722 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 , , 1 0 4 2 5 0 1 1 , ,0 0 1 1 1 1 1 14 4 , , 8 8 4 9 1 6 1 12 2 , , 5 4 3 8 9 4 8 86 60 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 9 0 0 5 6 1967 9........................... \ f 3 3 5 5 , , 6 8 6 1 7 9 1 1 , ,0 03 33 3 1 1 8 8 , , 2 1 0 9 1 4 1 1 4 4, , 0 02 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 7 7 4 4 1 1 1 1 , , 8 8 0 0 7 7 1 11 1 , , 0 2 8 09 5 4 4 , , 6 6 7 8 8 5 4 4, ,1 1 2 27 0 5 5 5 5 8 8 6 6 7 91 7 1968 9........................... 1 /3 3 8 8 , , 6 4 8 7 7 3 1 1 , , 0 0 3 3 0 0 1 1 7 7 , , 4 3 0 4 7 0 1 1 1 1 , , 3 3 1 1 8 8 4 5 6 29 2 7 7 0 0 1 1 2 2 , , 5 5 1 1 8 8 2 2 , , 3 3 4 41 1 1 1 4 4 , , 4 4 7 7 2 2 4 5 , , 9 0 0 5 9 3 4 4, ,4 44 4 4 4 4 6 6 0 5 9 7 7 2 25 2 1969 9........................... io/45,755 1,019 ioi5,975 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................ J47,009 566 23,786 19,333 306 429 3,023 695 17,137 4,676 4,029 647 844 \46,960 566 23,775 19,333 295 429 3,023 695 17,169 4,604 4,039 565 846 1971—Dec. n.............. / 1 6 6 7 7 , , 6 8 8 0 1 8 5 5 4 4 4 4 5 50 1 , , 6 2 5 0 1 9 3 39 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 71 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 4 4 4 7 7 1 1 , , 5 52 23 8 1972__June.................. 73,995 54,604 38,603 3,292 8,594 3,723 392 13,437 4,476 4,104 372 1,478 July................... 77,465 59,416 39,777 3,516 12.094 3.647 382 12,128 4,493 4,123 370 1,428 Aug................... 79,454 60,606 40,616 3,881 12.094 3.647 368 12,906 4,419 4,041 378 1,523 Sept................... 79,728 60,075 39,633 4,117 12.095 3.804 426 13,577 4,630 4,241 389 1,446 Oct.................... 81,420 60,931 40,266 4,457 12.097 3.651 460 14,173 4,822 4,416 406 1,494 Nov................... 82,373 61,127 40,045 4,834 12.098 3.651 499 14,776 4,745 4,322 423 1,725 Dec................... 82,901 61,512 39,986 5,236 12,108 3,639 543 14,810 4,952 4,527 425 1,627 1973—Jan.................... 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................... i290,873 1271 ,326 46,919 6,917 1212,128 3,617 1,745 12,951 4,959 4,583 376 1,637 Apr.................... 1590,596 70,748 45,949 6.934 12.245 3,631 1,989 13,070 5,148 4,749 399 1,630 Mayp................ 92,107 70,910 46,107 6.934 12.245 3.628 1,996 14,296 5,147 4,763 384 1,754 JuneP............... 92,210 70,661 45,673 6.934 12.245 3.805 2,004 14,520 5,320 4,937 383 1,709 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

AUGUST 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e r s o t p e e r n i Canada A re m L pu e a r b ti i l n c i a cs 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 5,043 259 303 117,340 8,062 1,866 1,865 4,997 248 302 /4 15,975 4 7,074 1,624 1,888 4,552 546 291 \ 15,998 7,074 1,624 1,911 4,552 546 291 1970 3............................................................................................. /23,786 13,620 2,951 1,681 4,713 407 414 123,775 13,615 2,951 1,681 4,708 407 413 /51,209 30,010 3,980 1,414 14,519 415 871 150,651 30,134 3,980 1,429 13,823 415 870 1972—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 60,075 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..................................................................................... 6 71,326 6 45,224 4,221 1,749 16,564 823 2,745 Apr..................................................................................... 7 70,748 7 45,608 4,157 1,915 15,415 839 2,814 May**................................................................................. 70,910 46,641 4,104 1,903 14,425 940 2,897 June?................................................................................. 70,661 46,942 4,111 1,990 13,725 992 2,901 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. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 6 Payable in dollars IMF Deposits End of period Total i Total Deposits b T i r 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 r fo a e c r n y i u e n a c r i i b g ­ e l n s e in m g v e o e n l s d t t ^ ­ 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 h b m r e . t 4 r ­ Demand Time 2 c c e a r t t e if s i ­ 3 liab.4 1969................................ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 19707.............................. /41,719 41,351 15,785 5,924 14,123 5,519 368 400 820 69 159 211 381 141,761 41,393 15,795 5,961 14,123 5,514 368 400 820 69 159 211 381 1971 8............................. / 1 5 5 5 5 , , 4 4 0 28 4 5 5 5 5 , ,0 0 1 3 8 6 1 6 0 , , 4 3 5 9 9 9 4 5 , , 2 20 1 9 7 3 33 3 , , 0 0 2 2 5 5 1 6 1 , , 3 3 8 3 5 5 3 3 9 86 2 4 4 0 00 0 1 1 , , 3 3 6 7 7 2 7 7 3 3 1 1 9 9 2 2 2 21 1 0 0 8 8 9 92 6 1972—June.................... 57,461 56,941 7,211 4,830 31,871 13,029 519 1,316 85 238 212 782 July..................... 57,294 56,813 7,320 4,746 32,881 11,866 481 1,266 101 262 142 761 Aug..................... 58,884 58,429 6,631 4,867 33,745 13,186 455 1,322 65 267 172 818 Sept..................... 58,684 58,206 6,927 4,939 32,714 13,626 478 1,233 79 224 145 785 Oct...................... 60,136 59,598 7,071 5,146 33,071 14,310 538 1,281 63 210 204 804 Nov..................... 60,654 60,112 7,011 5,379 32,774 14,948 543 1,512 95 242 380 794 Dec...................... 60,737 60,240 8,288 5,629 31,850 14,473 496 1,413 86 202 326 800 1973—Jan...................... 59,172 58,646 7,452 5,533 30,133 15,530 526 1,380 118 172 279 811 Feb...................... 64,235 63,722 7,786 5,594 36,538 13,803 513 1,419 133 145 303 838 Mar..................... 65,878 65,330 7,606 5,610 37,966 14,147 548 1,425 114 133 279 899 Apr..................... 65,196 64,612 8,118 5,652 36,459 14,382 584 1,428 119 111 240 957 May*.................. 66,751 66,179 8,374 5,705 35,965 16,136 572 1,585 147 114 148 1,177 JuneP.................. 66,739 66,089 9,118 5,814 34,951 16,206 650 1,609 155 133 189 1,131 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. □ AUGUST 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 10 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 s S e i a u f s . n i r 3 ­ d y s O l t i h e a t o r h b r m e . t r 4 ­ f r o e c r n u i e n c r i i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e a e ls r a t . t e S s a i s u f . n i r 3 ­ d y s O l t h i e a t o r h b r m e . t r ­ 4 c P u f r a o r y r i e a e n n b ig c l n i e es 1969............. 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 19707.......... J 14 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 13 3 , , 5 51 1 1 1 5 5, , 1 1 3 3 3 8 3 3 6 6 8 8 1 1 9 9 , , 3 3 3 3 3 3 1 1 , , 6 6 5 5 2 2 2 2 , , 5 5 5 5 4 4 1 1 3 3 , , 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 1 4 4 8 8 19718........... J \5 5 3 3 , , 6 6 6 3 1 2 1 6 0 , , 3 3 8 2 6 6 4 5 , , 0 0 2 1 5 7 3 32 2 , , 4 4 1 1 5 5 1 5 0 , , 4 4 8 4 9 3 3 3 9 86 2 3 39 9, ,0 67 1 9 8 1 1 , , 6 32 2 7 0 2 2 , , 0 5 3 0 9 4 3 3 2 2 , , 3 31 1 1 1 3 3 , , 0 1 8 7 6 7 1 1 5 65 8 1972—June. 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.. 57,563 6,566 4,600 33,573 12,368 455 40,616 1,308 2,417 33,499 3,220 171 Sept.. 57,451 6,848 4,716 32,569 12,841 478 39,633 1,239 2,459 32,497 3,268 171 Oct.. 58,855 7,008 4,935 32,867 13,506 538 40,266 1,335 2,569 32,794 3,398 171 Nov.. 59,143 6,915 5,137 32,394 14,154 543 40,045 1,271 2,643 32,315 3,645 171 Dec.. 59,323 8,203 5,427 31,523 13,674 496 39,986 1,589 2,868 31,453 3,905 171 1973—Jan... 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.. 64,453 7,492 5,477 37,687 13,249 548 46,919 1,543 2,832 37,620 4,752 172 Apr.. 63,768 7,999 5,541 36,219 13,425 584 45,949 1,714 2,916 36,137 4,996 9 187 May* 65,166 8,227 5,591 35,817 14,959 572 46,107 1,723 2,941 35,736 5,520 187 June* 65,130 8,963 5,681 34,762 15,075 649 45,673 1,950 3,105 34,684 5,747 187 To banks11 To other foreigners To banks Payable in dollars and other End of period Total Payable in Total Deposits T bi r l U e ls a . s S a u . n r d y s O t h e t o r h r m 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 r m e t r ­ f r o e c r n u e r c ig ­ ie n s Demand Time2 certifi­ liab. 4 Demand Time2 certifi­ liab. 4 cates cates 1969......................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 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 19718....................... /13,953 10,034 7,047 850 8 2,130 3,691 1,660 1,663 96 274 228 \14,643 10,721 3,399 320 8 6,995 3,694 1,660 1,666 96 271- 228 1972—June............. 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.............. 16,946 12,621 3,555 331 6 8,729 4,040 1,702 1,852 67 419 284 Sept.............. 17,818 13,269 3,833 348 5 9,084 4,241 1,776 1,909 68 489 308 Oct............... 18,589 13,805 3,798 434 3 9,570 4,417 1,875 1,933 70 538 368 Nov.............. 19,097 14,404 3,938 481 5 9,981 4,322 1,706 2,014 75 528 372 Dec.............. 19,337 14,485 4,659 533 5 9,287 4,527 1,954 2,026 65 481 325 1973—Jan................ 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.............. 17,534 12,575 4,144 518 5 7,909 4,583 1,805 2,127 63 588 376 Apr.............. 17,822 12,672 4,335 514 7 7,817 4,750 1,951 2,112 75 611 398 May*........... 19,059 13,911 4,645 535 8 8,723 4,763 1,859 2,115 73 716 385 June*.......... 19,457 14,058 5,050 404 8 8,595 4,937 1,963 2,171 70 732 463 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 i OForeign 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

AUGUST 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayp June? Europe: Austria........................................................... 254 310 279 245 272 268 267 281 292 301 297 Belgium-Luxembourg................................. 701 1,175 1,159 1,070 1,092 974 1,165 1,253 1,245 1,373 1,376 Denmark....................................................... 168 194 217 254 284 321 364 400 406 502 489 Finland.......................................................... 160 163 161 157 163 152 158 142 168 244 194 France............................................................ 3,150 4,422 4,501 4,630 4,441 4,433 4,482 5,000 5,167 5,327 5,406 Germany....................................................... 6,596 5,819 5,809 5,514 5,346 5,034 10,494 12,990 12,701 12,161 12,003 Greece............................................................ 170 177 195 190 238 210 224 223 175 219 219 Italy................................................................ 1,887 1,426 1,345 1,354 1,338 1,085 1,041 968 1,020 1,171 1,072 Netherlands.................................................. 270 1,490 1,460 1,442 1,468 1,356 1,762 2,532 2,543 2,427 2,369 Norway.......................................................... 685 873 895 960 978 973 995 1,018 1,035 1,046 1,050 Portugal......................................................... 303 356 379 413 416 439 498 518 502 511 499 Spain.............................................................. 203 246 230 223 256 231 222 256 250 325 334 Sweden........................................................... 792 1,068 1,059 1,081 1,184 1,189 1,403 1,483 1,682 1,787 1,905 Switzerland................................................... 3,249 3,538 3,072 2,838 2,857 2,924 2,845 2,901 2,959 3,272 3,306 Turkey........................................................... 68 72 71 96 97 109 94 105 118 71 75 United Kingdom......................................... 7,379 5,692 5,683 5,430 5,011 5,510 4,546 4,657 4,741 5,899 6,317 Yugoslavia.................................................... 34 65 56 98 117 82 78 58 69 73 66 Other Western Europe1............................ 1,391 1,446 1,428 1,479 1,483 1,464 1,502 1,614 1,772 2,159 2,335 U.S.S.R.......................................................... 14 14 16 10 11 14 21 14 8 9 11 Other Eastern Europe................................ 53 71 63 58 81 71 65 71 71 66 74 Total...................................................... 27,529 28,615 28,078 27,541 27,134 26,839 32,226 36,483 36,924 38,944 39,397 Canada............................................................... 3,441 3,730 3,969 3,799 3,484 3,889 3,325 3,290 3,618 3,816 3,306 Latin America: Argentina....................................................... 441 523 532 547 631 631 689 687 694 730 727 Brazil............................................................. 342 591 601 564 605 643 648 671 703 768 765 Chile............................................................... 191 134 135 135 137 132 136 143 140 138 140 Colombia....................................................... 188 199 192 185 210 210 218 184 197 218 200 Cuba............................................................... 6 6 6 6 6 7 7 6 7 7 10 Mexico........................................................... 715 690 671 659 831 783 800 788 853 843 925 Panama......................................................... 154 156 151 150 167 193 201 171 168 192 186 Peru................................................................ 164 164 180 183 225 176 167 172 167 170 180 Uruguay......................................................... 108 137 125 133 140 140 138 132 143 150 180 Venezuela...................................................... 963 855 924 926 1,077 995 1,051 948 1,044 967 1,054 Other Latin American republics.............. 655 662 747 751 860 839 825 804 818 778 777 Bahamas 2..................................................... 656 461 576 576 539 290 261 198 226 496 440 Netherlands Antilles and Surinam.......... 87 88 82 89 86 81 84 76 72 64 68 Other Latin America.................................. 37 54 55 57 44 235 239 215 243 264 651 Total....................................................... 4,708 4,721 4,979 4,961 5,558 5,353 5,461 5,195 5,477 5,785 6,303 Asia: China, People’s Rep. of (China Mainland ] 39 39 39 39 39 39 37 49 44 44 41 China, Republic of (Taiwan).................... 258 541 590 639 675 737 783 816 830 830 843 Hong Kong................................................... 312 315 313 310 318 336 319 337 330 368 341 India............................................................... 89 91 103 107 98 115 134 114 125 145 110 Indonesia....................................................... 63 115 114 107 108 101 96 89 90 117 155 Israel............................................................... 150 134 127 141 177 139 146 137 144 142 161 Japan............................................................. 14,295 14,412 15,485 16,152 15,843 14,570 14,733 12,344 10,415 9,056 8,458 Korea............................................................. 196 208 218 201 192 224 210 227 214 231 226 Philippines..................................................... 306 379 382 394 438 446 453 513 520 587 558 Thailand........................................................ 126 145 143 128 171 211 187 170 166 177 175 Other.............................................................. 595 797 1,016 965 1,071 951 897 869 940 876 883 Total....................................................... 16,429 17,175 18,529 19,182 19,131 17,868 17,995 15,665 13,818 12,574 11,951 Africa: Egypt.............................................................. 24 23 23 24 24 21 28 17 33 67 29 Morocco........................................................ 9 9 10 11 12 9 8 13 9 8 11 South Africa................................................. 78 71 57 83 115 111 104 125 125 120 155 Zaire............................................................... 12 18 14 17 21 18 23 22 28 45 17 Other.............................................................. 474 649 595 678 768 573 728 739 798 786 904 Total....................................................... 597 770 700 814 939 733 891 917 992 1,025 1,118 Other countries: Australia........................................................ 916 2,372 2,553 2,801 3,027 3,046 2,861 2,849 2,882 2,961 2,985 All other........................................................ 42 69 . 47 46 51 65 57 54 57 60 71 Total....................................................... 957 2,441 2,600 2,846 3,077 3,111 2,918 2,903 2,939 3,022 3,056 Total foreign countries.................................. 53,661 57,451 58,855 59,143 59,323 57,792 62,816 64,453 63,768 65,166 65,130 International and regional: International3............................................... 1,327 746 794 1,030 951 930 957 979 982 1,144 1,190 Latin American regional........................... 298 329 320 316 307 301 318 320 337 337 321 Other regional4............................................ 142 158 167 165 156 148 143 126 109 104 97 Total....................................................... 1,767 1,233 1,281 1,512 1,413 1,380 1,419 1,425 1,428 1,585 1,609 Grand total.......................................... 55,428 58,684 60,136 60,654 60,737 59,172 64,235 65,878 65,196 66,751 66,739 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 1971 1972 1973 1971 1972 1973 Area and country Area and country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus........................................., 7 2 2 3 9 Kuwait.............................................. 36 20 16 39 36 Iceland......................................... 10 11 9 9 12 Laos.................................................. 2 3 3 2 3 Ireland, Rep. of......................... 29 16 15 17 22 Lebanon........................................... 60 46 60 55 55 Malaysia.......................................... 28 23 25 54 59 Other Latin American republics: Pakistan........................................... 28 33 58 59 93 Bolivia.......................................... 59 55 53 87 65 Ryukyu Islands (incl. Okinawa) 6 39 29 53 Costa Rica................................... 43 62 70 92 75 Saudi Arabia................................... 41 79 80 344 236 Dominican Republic................ 90 123 91 114 104 Singapore......................................... 43 35 45 77 53 E El c u S a a d lv o a r d .. o ... r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7 0 2 7 5 8 7 6 83 2 1 7 21 6 1 8 0 6 9 S S r y i r L ia a .. n .. k .. a .. .. ( . C .... e .. y .. l . o ... n .. ) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 4 4 6 6 4 5 39 6 Guatemala................................... 97 117 123 132 127 Vietnam............................................ 161 159 185 135 98 Haiti............................................. 19 18 23 27 25 Honduras..................................... 44 42 50 58 64 Jamaica........................................ 19 19 32 41 32 Other Africa: Nicaragua................................... 47 50 66 61 79 Algeria.............................................. 13 23 31 32 51 Paraguay..................................... 15 17 17 22 26 Ethiopia (incl. Eritrea)................. 12 11 29 57 75 Trinidad & Tobago.................. 14 10 15 20 17 Ghana.............................................. 6 8 11 10 28 Kenya............................................... 13 9 14 23 19 Other Latin America: Liberia.............................................. 21 23 25 30 31 B B e r r it m ish u d W a. e .. s .. t . .. I . n ... d .. i . e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ( 3 2 8 ) ( 3 2 2 ) ( 2 2 3 ) ( 3 2 6 ) 1 1 2 0 7 0 L N i i b ge y r a i . a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2 1 5 27 46 4 29 5 6 6 39 8 3 5 ( ( 7 7 ) ) Southern Rhodesia........................ 2 2 2 2 1 Other Asia: Sudan................................................ 1 1 5 3 3 Afghanistan................................ 15 19 17 25 19 Tanzania.......................................... 10 6 6 11 16 Bahrain........................................ 35 21 18 24 (7) Tunisia.............................................. 6 9 7 10 11 Burma.......................................... 3 10 5 2 Uganda............................................ 5 3 10 7 19 C Ir a a m n. b ... o .. d ... i . a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 2 59 5 88 2 93 3 1 ( 14 3> Zambia............................................. 14 13 7 28 (7) Iraq.............................................. 7 10 9 10 (7) All other: Jordan.......................................... 3 2 2 4 4 New Zealand.................................. 22 23 27 30 34 1 Includes Bank for International Settlements and European Fund. 4 Asian, African, and European regional organizations, except BIS and 2 Bermuda included with Bahamas through Dec. 1972. European Fund, which are included in “Europe.” 3 Data exclude “holdings of dollars” of the International Monetary 5 Represent a partial breakdown of the amounts shown in the “other” Fund but include IMF gold investment until Feb. 1972, when investment categories (except “Other Eastern Europe”). was terminated. 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To inti. End of period Total and Official Other Ger­ United Other Total Other All regional Total institu­ Banks1 foreign­ many King­ Europe Latin Japan Asia other tions ers dom America coun­ tries 1969................................ 2,490 889 1,601 1,505 56 40 * 46 7 239 655 582 70 1970................................ 1,703 789 914 695 165 53 110 42 26 152 385 137 62 1971................................ 902 446 457 144 257 56 164 52 30 111 3 87 9 1972—June.................... 1,168 693 476 127 267 82 165 66 34 135 * 58 17 July..................... 1,157 688 469 117 269 84 165 68 34 136 * .49 18 Aug..................... 1,093 650 443 88 269 86 165 68 34 135 * 24 17 Sept..................... 1,067 612 455 99 269 87 167 68 35 135 * 33 17 Oct...................... 1,068 615 453 97 269 87 165 68 37 135 * 32 16 Nov..................... 1,050 599 451 94 269 88 165 68 37 134 1 33 14 Dec...................... 1,000 561 439 93 259 87 165 63 32 136 1 32 10 1973—Jan...................... 1,025 598 427 74 257 96 165 61 30 127 1 30 13 Feb...................... 1,257 594 663 304 258 100 164 59 233 118 1 71 16 Mar..................... 1,378 675 703 328 263 112 164 66 233 128 1 96 16 Apr..................... 1,382 669 713 329 274 111 164 68 238 128 1 98 16 May?................. 1,362 671 691 313 274 104 164 68 231 115 1 96 16 June?................. 1,439 742 697 311 274 113 164 68 233 125 4 92 10 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1972 1973 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May* June* Europe: Belgium-Luxembourg....................... 6 6 6 6 6 6 6 6 6 6 6 6 6 Sweden................................................. 19 19 17 15 35 85 85 110 135 135 135 135 135 Switzerland........................................ 52 49 45 45 45 45 45 45 44 43 44 43 43 United Kingdom................................ 264 265 280 293 308 326 327 327 276 278 300 281 280 Other Western Europe..................... 77 79 79 79 79 79 79 79 79 79 79 85 85 Eastern Europe.................................. 5 5 5 5 5 5 5 5 5 5 5 5 5 Total............................................ 424 422 432 443 478 545 547 572 544 546 569 555 554 Canada..................................................... 313 313 372 432 479 559 558 558 559 561 561 560 560 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: Japan.................................................... 2,901 3,125 3,310 3,481 3,756 4,003 4,380 4,867 5,421 5,961 5,978 5,978 5,977 Other Asia.......................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................ 2,912 3,136 3,321 3,492 3,766 4,013 4,391 4,877 5,431 5,971 5,988 5,988 5,988 Africa....................................................... 8 8 127 133 133 133 133 183 183 183 183 183 183 * * * * * * 25 25 25 25 25 25 25 Total foreign countries......................... 3,664 3,886 4,259 4,506 4,863 5,257 5,661 6,223 6,749 7,293 7,333 7,318 7,317 International and regional: International....................................... 136 136 176 186 186 186 186 186 176 186 176 142 72 Latin American regional................. 26 27 27 27 27 28 28 28 26 26 27 27 27 Total............................................ 161 162 203 213 213 214 214 214 202 212 202 169 100 3,825 4,048 4,461 4,719 5,076 5,471 5,874 6,436 6,951 7,505 7,535 7,487 7,417 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Treasury securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total China, Total g B iu e m l­ a C d a a n ­ 1 ( R Ta e i p w . a o n f ) m G a e n r­ y Italy 2Korea T la h n a d i­ Total m G an er y ­ 3 Italy e S r w la it n z d ­ 196 9 43,181 1,431 32 1,129 20 135 100 4 1,750 4 1,084 125 541 197 0 3,563 2,480 32 2,289 20 25 100 1,083 542 541 197 1 5 9,657 7,829 32 2,640 20 5,000 22 100 5 1,827 612 1,215 1972—July. 15.864 14.188 32 2.840 20 11.158 22 100 1.676 459 1,217 Aug. 15.864 14.188 32 2.840 20 11.158 22 100 1.676 459 1,217 Sept. 16,022 14.345 32 2.840 20 11.315 22 100 1.677 459 1,218 Oct.. 15.871 14.345 32 2.840 20 11.315 22 100 1,526 306 1,220 Nov. 15.872 14.345 32 2.840 20 11.315 22 100 1,528 306 1,222 Dec., 15.872 14,333 20 2.840 20 11.315 22 100 1,539 306 1,233 20 1973—Jan.. 16,016 14.474 20 2.840 11.471 22 100 1,542 306 1,236 Feb. 15,863 14.474 20 2.840 20 11.471 22 100 1,389 153 1,236 Mar. 615,870 14,464 20 2.840 10 11.471 22 100 61,407 153 1,254 Apr. 616,015 14,459 20 2.840 5 11.471 22 100 61,556 172 1,384 May 16,012 14,456 20 2.840 2 11.471 22 100 1.556 172 1,384 June, 16,189 14,633 2.840 11.670 22 100 1.556 172 1,384 July. 16,089 14,533 2.840 11.670 22 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. □ AUGUST 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP June*5 Europe: 11 8 15 10 8 7 13 9 9 9 12 Belgium-Luxembourg................................ 57 70 87 84 120 67 124 100 87 73 94 49 60 52 57 59 58 59 60 63 69 69 135 120 119 123 118 127 122 131 134 140 141 263 317 274 272 330 275 312 424 451 447 377 235 268 287 296 321 267 414 371 345 356 382 Greece............................................................ 30 28 27 27 29 34 23 29 32 19 19 Italy................................................................ 160 173 177 170 255 221 271 269 288 327 331 Netherlands.................................................. 105 116 104 101 108 93 152 118 129 115 109 Norway.......................................................... 67 52 62 62 69 62 63 70 66 67 65 Portugal......................................................... 12 27 22 21 19 21 26 20 30 17 19 70 194 229 215 207 210 236 282 238 360 386 Sweden........................................................... 118 131 128 123 156 176 249 235 238 259 228 Switzerland................................................... 145 180 186 150 125 187 206 152 186 190 241 Turkey........................................................... 3 7 4 4 6 5 6 5 5 6 9 559 643 657 729 855 672 1,001 847 795 876 909 Yugoslavia.................................................... 19 22 18 16 22 18 20 18 20 13 12 Other Western Europe............................... 12 24 23 19 20 23 26 22 29 21 29 28 55 30 32 41 44 55 54 61 50 56 Other Eastern Europe................................ 37 38 40 38 49 47 51 52 60 69 73 Total....................................................... 2,114 2,531 2,543 2,551 2,917 2,613 3,431 3,269 3,265 3,483 3,558 1,627 2,026 1,681 1,717 1,920 1,939 2,372 2,461 2,286 2,379 2,020 Latin America: 305 352 363 357 379 389 417 406 396 408 407 Brazil............................................................. 435 639 659 633 652 641 727 740 759 851 891 Chile............................................................... 139 79 58 53 52 53 49 51 45 40 43 Colombia....................................................... 380 378 384 396 418 408 412 380 401 397 411 Cuba............................................................... 13 13 13 15 13 12 13 13 13 13 14 Mexico........................................................... 934 1,121 1,126 1,168 1,202 1,202 1,213 1,320 1,343 1,343 1,394 125 150 145 179 246 219 220 212 183 190 213 Peru................................................................ 176 137 138 147 145 129 136 132 143 147 169 Uruguay......................................................... 41 43 36 38 40 40 38 40 36 31 34 Venezuela...................................................... 268 335 361 386 383 388 385 404 401 440 452 Other Latin American republics.. i......... 374 345 353 368 388 393 379 369 382 383 380 Bahamas 1.................................................... 262 428 372 403 476 413 521 461 505 409 399 Netherlands Antilles and Surinam.......... 18 15 15 13 14 15 15 20 27 37 39 Other Latin America.................................. 26 28 32 33 36 56 70 103 85 74 66 Total....................................................... 3,494 4,064 4,054 4,191 4,442 4,359 4,592 4,649 4,717 4,764 4,912 Asia: China, People’s Rep. of (China Mainland) 1 2 1 1 1 2 2 2 2 5 3 China, Republic of (Taiwan).................... 109 180 187 201 194 205 211 231 238 216 200 Hong Kong................................................... 70 85 76 76 93 84 103 111 122 132 203 India............................................................... 21 18 15 17 14 15 15 16 14 19 21 41 66 74 74 87 87 103 127 127 97 94 Israel............................................................... 129 78 87 105 105 126 106 141 126 116 110 Japan.............................................................. 4,280 3,461 3,719 4,001 4,162 4,081 5,277 5,568 5,663 5,536 5,756 Korea............................................................. 348 321 302 317 296 271 288 301 331 338 349 Philippines..................................................... 138 144 151 160 149 148 150 140 150 139 144 Thailand........................................................ 172 187 177 183 191 184 195 205 197 194 173 Other.............................................................. 252 229 244 260 300 288 335 274 296 324 354 5,560 4,773 5,034 5,397 5,593 5,490 6,786 7,116 7,267 7,116 7,407 Africa: Egypt.............................................................. 10 15 17 16 21 22 20 20 22 25 34 Morocco........................................................ 4 5 5 4 4 6 5 7 5 4 4 South Africa................................................. 156 139 134 145 143 150 155 155 151 166 163 Zaire............................................................... 21 12 14 10 13 15 13 11 13 13 42 96 121 109 112 124 116 113 133 137 136 143 Total...................................................... 288 291 279 286 304 309 305 325 327 343 386 Other countries: 158 205 229 271 291 272 256 244 249 232 316 All other........................................................ 28 44 36 36 40 50 44 47 50 47 46 186 249 265 308 330 322 300 291 299 280 362 Total foreign countries................................... 13,269 13,933 13,856 14,449 15,506 15,032 17,787 18,111 18,161 18,365 18,646 International and regional............................. 3 4 6 6 3 3 3 1 2 2 1 Grand total.......................................... 13,272 13,936 13,862 14,455 15,509 15,035 17,789 18,113 18,163 18,367 18,647 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

AUGUST 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 Loans to— C t o io ll n e s c­ A a m c n c a c e d e p e s t ­ Deposits g c F u o o v r r i t e t , i i e g se s n , ­ Total Total O in t f i s f o t i i n c t i s u a ­ l Banks1 Others st o i a n u n g t d ­ ­ f e o o i r g f n a fo e c r r c ­ s t. Other Total w e i i t g h n e f r o s r­ a n c n o a d m n c f l e i . ­ Other paper 196 9 9,680 9,165 3,278 262 1.943 1,073 2,015 3,202 670 516 352 89 74 197 0 10,802 10,192 3,051 119 1,720 1,212 2,389 3,985 766 610 352 92 166 1971 2........... f 1 1 1 3 3 , , 1 2 7 72 0 1 1 2 2 , , 3 3 7 2 7 8 4 3 , , 5 9 0 6 3 9 2 23 2 1 3 2 2 , ,6 0 1 8 3 0 1 1 , , 6 6 5 6 8 7 2 2 . . 4 4 7 7 5 5 4 4 , , 2 2 4 5 3 4 1 1 , , 6 1 7 0 9 7 8 89 4 5 2 5 5 4 4 8 9 1 1 7 1 3 9 1 1 7 7 4 4 1972—June.. 13,565 12,732 4,756 165 2,575 2,016 2,649 3,483 1,844 833 486 222 125 July . 14,273 13,371 5,049 164 2,779 2,106 2,703 3,227 2,392 902 516 278 108 Aug.. 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.. 18,113 17,162 6,538 141 3,694 2,703 3,697 3.463 3,464 951 524 262 165 Apr.. 18,163 17,344 6,847 146 3.944 2,757 3,781 3.463 3,253 819 460 207 152 MayP 18.367 17,513 6,935 163 3,828 2,944 3,789 3,600 3,189 854 499 237 118 June? 18,647 17,802 7,317 256 4,036 3,026 3,846 3,964 2,675 845 559 140 147 1 Excludes central banks, which are included with “Official institutions.” branches, which were previously reported as “Loans”, are included in 2 Data on second line differ from those on first line because (a) those “Other short-term claims” ; and(b) a number of reporting banks are included claims of U.S. banks on their foreign branches and those claims of U.S. in the series for the first time. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u t A n h t l e l r r ies Official Other term cies Total institu­ Banksi 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—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 4,666 4,342 819 432 3,091 291 33 137 658 339 1,875 301 863 493 Dec.2... J \4 4 , , 9 9 7 1 7 6 4 4 , ,5 50 0 1 1 8 8 3 33 3 4 4 3 30 0 3 3 , , 2 2 3 38 8 4 3 3 7 6 5 4 40 0 1 1 3 3 9 9 7 7 0 0 9 4 3 38 8 3 3 2 1 , , 0 9 0 9 1 1 3 3 4 15 4 8 8 8 9 1 8 5 50 0 3 3 1973—Jan........ 5,016 4,535 833 440 3,262 440 41 144 732 403 1,967 353 914 503 Feb........ 5,126 4,625 840 470 3,315 449 52 135 771 434 1,986 342 928 531 Mar----- 5,272 4,764 897 480 3,387 460 47 121 859 453 1,978 336 985 539 Apr........ 5,419 4,923 931 514 3,477 448 49 122 912 477 2,000 337 1,028 544 May*\.. 5,522 5,019 967 510 3,541 456 48 131 931 511 2,001 331 1,059 558 June?... 5,636 5,102 965 566 3,570 489 45 129 1,016 521 1,999 311 1,099 561 1 Excludes central banks, which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1973 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Treas. bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign ch P a u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h s a e a s t l e p e s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 197 0 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 998 35 197 1 1,672 130 1,542 1,661 -119 14,573 13,158 1,415 1,687 2,621 -935 1,385 1,439 -57 197 2 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.-June**. . 1,543 -144 1,656 1,697 -41 9,651 6,332 3,319 861 1,141 -280 945 761 184 1972—J J u u n ly . e ... ........... 2 2 2 51 3 1 1 2 2 5 2 1 2 2 22 7 4 4 -2 -2 3 1 1, , 1 6 5 4 1 8 1 1 , , 4 1 0 5 7 2 241* 1 1 9 0 1 9 3 1 3 01 9 -23 9 1 0 2 1 2 5 6 5 2 1 6 6 9 6 - -1 4 1 3 Aug................ 413 40 373 365 9 1,495 1,217 278 129 98 30 242 179 63 Sept............... 258 10 247 237 11 1,154 841 314 173 163 11 173 142 32 Oct................. 356 356 340 17 1,317 1,038 279 184 207 -23 188 119 69 Nov............... 395 395 377 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—J F a e . b ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . n 5 5 6 15 2 -12 5 5 2 6 7 2 5 57 6 9 2 -52 1 1, ,7 8 8 55 5 1 1 , , 1 0 1 6 8 2 7 7 2 3 3 7 1 1 9 4 1 4 3 1 2 4 3 4 -132* 1 1 9 6 3 1 1 1 4 5 5 5 48 7 Mar............... 554 10 544 540 3 2,220 1,111 1,109 144 125 19 211 114 97 Apr................ 31 -9 40 16 23 1,563 1,040 522 117 292 -175 121 112 9 May*3............ -48 -33 -15 -15 1,141 1,101 40 139 152 -13 137 125 12 Junep............. -71 -69 -1 -1 1,087 899 188 125 103 22 123 111 12 t Excludes nonmarketable U.S. Treasury bonds and notes issued to sold abroad by U.S. corporations organized to finance direct investments official institutions of foreign countries; see Table 12. abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations. Also includes issues of new debt securities organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la 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 1 22 197 1 731 87 131 219 168 -49 71 627 -93 37 108 * -2 54 197 2 2,140 372 -51 297 639 561 92 1,911 -78 -32 256 -1 -1 86 1973—Jan.-June 1,443 114 -16 145 524 180 170 1,117 121 -53 223 -1 1 34 1972—Jun e 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 8 42 * * 4 1973—Ja.............n 489 32 29 47 142 118 24 392 24 -20 85 * 1 7 Feb.......... 453 25 4 67 151 82 47 376 36 -10 46 1 * 4 Mar......... 350 35 8 47 148 21 29 288 25 5 21 * 1 10 Apr.......... 138 21 9 -8 53 -17 46 104 34 -10 5 * * 4 MayP__ -121 -2 -43 -14 -22 -39 3 -117 -7 -16 11 -2 * 11 June*3.... 134 2 -23 7 52 15 21 74 8 -2 55 * * -2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 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 i i n ca Asia Africa 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 1970....................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971....................... 684 15 35 -1 197 327 39 612 37 19 -2 * -21 39 1972....................... 1,824 336 77 65 134 320 315 1,246 82 22 323 2 * 148 1973—Jan.-June* 1,876 102 2 -23 190 86 406 764 66 15 965 * 11 56 1972—June.......... 210 95 1 8 21 4 17 148 23 * 8 * 31 July........... 36 9 -4 8 41 -34 12 33 4 2 1 * * -4 Aug............ 27 6 4 6 17 -16 45 62 9 -1 -1 1 * -44 Sept........... 149 7 4 3 15 18 80 127 10 * * * * 12 Oct............ 120 36 7 1 35 4 54 138 5 3 2 * * -28 Nov........... 132 2 30 18 -1 46 42 138 -6 1 1 * * * Dec............ 289 56 30 * 14 49 60 210 8 3 29 1 * 38 1973—Jan............ 248 12 * -2 29 38 73 149 1 6 31 * * 60 Feb............ 270 6 4 2 30 46 60 149 36 1 110 * * -26 Mar........... 759 45 3 -22 -7 -3 158 174 * 4 623 * * -42 Apr............ 385 33 2 * 65 -96 94 98 16 4 199 * * 68 May*........ 161 1 -4 -1 76 120 22 215 7 1 2 * * -63 June*........ 54 6 -3 * -3 -19 -2 -20 7 -1 * * 10 59 Note.—Statistics include State and local govt, securities, and securities debt securities sold abroad by U.S. corporations organized to finance diof 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 1971................. -992 -310 -682 31 -275 -46 -366 -57 32 Sept.............................. 291 203 1972................. -612 -90 -522 508 -651 — 72 -271 -66 29 349 281 1973—Jan.- 511 314 June* .. -95 64 -159 41 -194 -65 33 * 26 June............................. 419 300 333 320 1972—June. -274 10 -284 26 -201 -15 -94 * * 311 314 July.... 79 78 1 36 23 2 -62 * 2 Aug---- 93 -1 94 50 49 -1 -5 * 2 325 379 Sept.... 42 6 36 47 3 9 -24 * 1 June............................. 312 339 Oct....... 46 16 30 76 -73 2 23 * 2 Sept.............................. 286 336 Nov__ 57 11 46 49 -4 8 -8 * * 366 396 Dec.... -167 9 -176 -16 -158 -29 23 2 1 1973—Mar.*........................... 310 357 1973—Jan....... -126 9 -135 11 -67 -70 -9 * * Feb___ 48 -2 50 -3 41 -16 27 * * Mar---- 116 23 93 24 34 8 27 * 1 Note.—Data represent the money credit balances and Apr.... -166 16 -182 22 -193 -6 -5 * * money debit balances appearing on the books of reporting May*. . -1 11 -12 -22 -15 6 6 -1 14 brokers and dealers in the United States, in accounts of June*.. 34 7 27 10 6 13 -13 1 9 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 $13,600 million and $13,913 million, respectively, on May 31, 1973. some branches do not adjust the parent’s equity in the branch to reflect unrealized paper profits and paper losses caused by changes in exchange Note.—Components may not add to totals due to rounding. rates, which are used to convert foreign currency values into equivalent dollar values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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—May........... 64,375 4,619 2,080 2,539 57,946 10,463 27,061 1,276 19,146 1,810 Junec........ 69,619 4,854 2,279 2,576 62,897 11,459 30,582 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............ 74,906 4,952 2,243 2,709 67,607 11,335 33,395 1,539 21,338 2,346 Oct.c.......... 74,796 4,967 2,239 2,728 67,599 11,343 33,098 1,549 21,610 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.r........ 87,989 4,327 1,565 2,762 81,106 12,273 42,206 1,747 24,881 2,555 Mar.r........ 91,646 4,296 1,988 2,308 84,370 12,458 44,268 1,965 25,679 2,980 Apr............ 90,987 3,917 1,672 2,244 84,091 12,787 42,976 2,081 26,247 2,979 May........... 92,951 4,218 1,926 2,292 85,534 13,489 42,746 1,998 27,301 3,199 Payable in U.S. dollars. 1970—Dec............ 34,619 9,452 1',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—May........... 41,935 4,393 2,063 2,330 36,889 6,475 19,575 936 9,903 653 June c......... 44,901 4,585 2,260 2,325 39,665 6,598 22,045 914 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 48,704 4,685 2,222 2,463 43,141 7,048 23,840 1,105 11,148 879 Oct. c......... 48,986 4,669 2,216 2,453 43,556 7,391 23,555 1,084 11,526 761 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.r......... 57,633 3,987 1,534 2,452 52,718 8,551 29,831 1,097 13,239 929 Mar.r........ 58,745 3,988 1,957 2,031 53,752 8,438 30,568 1,124 13,622 1,005 Apr............ 57,515 3,589 1,645 1,944 52,871 8,426 29,498 1,108 13,839 1,055 May........... 57,976 3,930 1,899 2,031 52,828 8,547 28,677 1,134 14,470 1,218 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 11,230 1,464 30,996 5,690 16,211 476 8,619 862 1972—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............ 42,053 2,350 1,253 1,097 38,606 5,651 22,559 650 9,745 1,097 Oct.c......... 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 Mar............ 49,696 2,052 1,130 922 46,520 5,783 29,148 663 10,926 1,124 Apr............ 49,181 1,662 794 868 46,332 5,437 29,255 651 10,989 1,188 May........... 49,080 1,744 9101 834 46,001 5,725 28,394 614 11,268 1,336 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—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............ 28,204 2,264 25,463 4,004 16,609 4,851 476 Oct.6......... 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 4,5681 20,219 5,637 508 Mar............ 32,658 1,953 30,183 4,324 20,033 5,827 522 Apr............ 31,833 1,539 29,778 4,034 20,119 5,625 515 May.......... 30,906 1,654 28,666 3,943 18,848 5,874 587 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—May........... 9,097 1,361 195; 1,166i 7,618 4,183 3,435 117 June c......... 10,071 1,552 295i 1,257' 8,392 4,821 3,571 128 July............ 10,329 1,409 11C> 1,298! 8,786 4,924 3,863 134 Aug. c........ 11,515 1,530 118! 1,413 9,846 5,682 4,164 139 Sept........... 11,914 1,612 221 1,391 10,150 5,929 4,221 152 12,017 1,739 251 1,4891 10,120 5,836 4,284 157 12,330 1,586 221 1,365i 10,577 6,209 4,368l 167 Dec............ 13,091 1,496 22!> 1,272: 11,419 6,965 4,454 175 1973—Jan............. 13,065 1,387 is:I 1,206; 11,496 6,754 4,742i 181 Feb............ 13,559 1,461 8:1 1,378! 11,86C 7,189 4,671 238 Mar............ 13,764 1,211 9() 1,121 12,283 7,520 4,764t 271 Apr............ 13,653 1,407 29;5 1,113I 11,988 6,726 5,2621 258 May.......... 114,681 1,498 27:I 1,22*3r 12,845 7,235 5,611 343 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) To U.S. To foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of parent banks insti­ for­ bank tutions eigners IN ALL FOREIGN COUNTRIES 2,575 716 1,859 42,812 6,426 24,829 4,180 7,377 1,967 .............1970—Dec. .. .Total, all currencies 3,114 669 2,445 56,124 10,773 31,081 5,513 8,756 2,098 2,819 562 2,256 59,648 10,055 33,114 6,649 9,830 1,908 ............1972—May 3,083 643 2,440 64,591 11,069 36,112 7,223 10,187 1,944 3,212 736 2,476 64,712 11,283 35,860 7,176 10,393 2,039 3,263 680 2,583 67,392 11,510 37.327 7,841 10,714 2,200 3,303 728 2,575 69,340 11,123 39,328 8,208 10,680 2,263 3,255 716 2,539 69,198 11,204 38,470 8,236 11,287 2,342 .........................Oct.c 3,233 802 2,432 70,513 11,146 39,324 8,401 11,642 2,493 3,559 1,000 2,559 73,842 11,344 42,531 8,486 11,483 2,634 3,414 836 2,578 75,273 11,746 42,260 9,236 12,032 2,513 ............1973—Jan. 3,967 1,132 2,835 80,886 11,901 46,373 9,388 13,224 3,136 .........................Febr 4,137 1,218 2,919 84,066 12,219 48,520 9,454 13,873 3,443 4,095 1,044 3,051 83,345 12,638 47,874 9,538 13,294 3,547 92,951 4,548 1,122 3,426 84,612 13,241 48,536 9,331 13,505 3,791 2,334 657 1,677 32,509 4,079 19,816 3,737 4,877 1,243 .............1970—Dec. .Payable in U.S. dollars 2,674 511 2,163 38,083 6,653 22,069 4,433 4,928 1,276 .............1971—Dec. 2,411 439 1,973 40,754 6,648 23,603 5,170 5,333 1,058 ............1972—May 2,668 520 2,148 44,141 7,277 25,806 5,656 5,401 1,021 2,754 611 2,143 43,634 7,507 24,766 5,777 5,584 1,072 .........................July 2,800 549 2,252 45,463 7,660 25,861 6,252 5,690 1,173 2,833 605 2,227 47,055 7,401 27,133 6,490 6,031 1,204 2,789 582 2,207 47,305 7,706 26,770 6,567 6,262 1,232 2,753 651 2,102 48,082 7,741 27,241 6,734 6,365 1,305 3,104 848 2,256 51,811 8,178 30,253 6,913 6,467 1,459 2,995 693 2,302 52,114 8,400 29,234 7,680 6,800 1,297 ............1973—Jan. 3,466 954 2,511 55,815 8,783 32,024 7,809 7,200 1,609 .........................Feb.' 3,613 1,038 2,575 57,127 8,735 33,131 7,771 7,489 1,691 3,562 886 2,676 55,604 8,657 31,970 7,743 7,234 1,750 4,005 955 3,050 55,593 8,767 32,275 7,361 7,190 1,786 IN UNITED KINGDOM 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 .............1970—Dec. .. .Total, all currencies 1,660 111 1,550 32,128 3,401 19,137 4,464 5,126 763 .............1971—Dec. 36,311 1,397 105 1,291 34,090 3,154 19,908 5,158 5,871 824 ............1972—May 1,447 147 1,300 37,102 3,160 22,144 5,542 6,256 903 1,497 150 1,347 37,075 3,464 21,720 5,565 6,326 892 ........................July 1,498 153 1,345 38,165 3,423 22,236 6,007 6,499 933 42,053 1,497 137 1,360 39,517 3,139 23,739 6,272 6,367 1,039 41,649 1,465 136 1,329 39,225 3,060 23,001 6,309 6,854 959 41,600 1,481 132 1,349 39,149 2,928 22,769 6,340 7,112 969 43,684 1,456 113 1,343 41,232 2,961 24,776 6,453 7,042 997 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. 49,696 1,858 235 1,624 46,750 3,164 28,119 7,388 8,078 1,088 49,181 1,970 165 1,805 46,075 3,397 27,796 7,509 7,373 1,136 49,080 2,028 170 1,857 45,792 3,614 27,168 7,324 7,685 1,260 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 25,787 1,202 58 1,144 24,168 2,054 14,610 4,141 3,363 417 ............1972—Mav 27,729 1,250 103 1,147 26,017 2,070 15,874 4,560 3,513 462 27,130 1,294 103 1,190 25,393 2,197 15,000 4,641 3,554 444 27,625 1,271 100 1,171 25,887 2,140 15,217 4,981 3,549 467 28,589 1,269 86 1,184 26,788 1,926 15,959 5,117 3,787 531 28,477 1,245 80 1,165 26,759 1,942 15,597 5,216 4,004 473 .........................Oct.c 28,558 1,270 92 1,178 26,778 1,959 15,383 5,280 4,155 510 30,933 1,276 72 1,203 29,121 2,008 17,478 5,349 4,287 536 30,926 1,335 72 1,264 29,091 2,234 16,205 6,162 4,490 500 ............1973—Jan. 33,966 1,661 226 1,436 31,714 2,188 18,360 6,394 4,771 591 .........................Feb. 33,929 1,676 195 1,481 31,655 2,128 18,334 6,251 4,942 598 33,050 1,735 119 1,616 30,782 2,318 17,672 6,245 4,546 533 32,148 1,809 138 1,671 29,730 2,225 16,982 5,897 4,626 608 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. 9 812 8,141 1,454 5,356 1,330 144 ..........*1972—May 10,071 994 8,942 1,809 5,902 1,231 136 10,329 1,043 9,126 1,633 6,169 1,323 160 1,121 10,238 1,885 6,898 1,455 156 1,137 10,620 1,935 7,:192 1,493 156 1,053 10,793 1,928 7,415 1,450 171 934 11,230 1,982 7,862 1,386 166 1,220 11,703 1,964 8,395 1,344 168 1,137 11,761 1,875 8,503 1,383 167 ............1973—Jan. 1,186 12,144 2,223 8,394 1,527 230 .........................Feb. 1,303 12,195 1,855 8,803 1,537 267 1,126 12,138 1,977 8,505 1,656 389 1,404 12,938 2,195 9,259 1,483 345 For notes see p. A-85. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 L s p e i l a c u b . s 2 . Wednesday L t i i a e b s i 1 li­ 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 Mar. Apr. May 1968 1972 1973 2.40 1.62 1.87 J S D M u e e a p n c r t e . . . 2 2 2 31 6 5 7 . . . . . . ( . . . 1 . . . . . . / . . . 1 . . . . . . . . . / . . . 6 . . . . . . 9 . . . . . . ) . . . 4 7 6 6 , , , , 2 9 1 0 0 3 2 0 9 2 0 4 J F M A a e p a n b r r . . . . 2 2 2 2 6 9 3 6 . . . . . . . . 1 1 1 1 , , , , 4 5 0 3 1 3 6 7 9 2 8 4 Feb. 2 2 1 7 1 8 4 . . . . . . . . 1 1 , , 3 1 6 7 9 5 9 9 1 7 4 0 C Ot a i d m h n l a e l o . r t . n e . f . l : o . t i . a h . 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 . . 3.37 3.37 3.25 May 31.. 1,465 Mar. 7.. 1,465 15.42 13.91 12.63 June 28.. 1,443 14.. 1,419 7.10 7.04 8.01 1969 21.. 1,290 5.56 6.19 6.08 July 26.. 1,345 28.. 1,127 3.70 3.44 3.60 J S M u e a p n r t e . . 2 2 2 6 5 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 3 4 , , , 6 2 3 2 6 4 1 9 9 S A e u p g t . . 3 2 0 7 . . . . 2 1 , , 0 2 2 7 3 0 Apr. 1 4 1 . . . . 1 1 , , 0 2 1 0 1 3 7th................................. 2 3 . . . 9 6 2 1 6 6 3 3 . . . 2 2 8 5 5 4 3 3. . . 5 5 83 5 7 Dec. 31............... 12,805 Oct. 25.. 1,415 18.. 1,193 .74 .67 .45 25.. 1,123 .56 .45 .77 Nov. 29.. 1,745 10th................................. .38 .71 .86 May 2.. 1,238 11th................................. .65 .86 .53 1970 Dec. 6.. 1,618 9.. 1,073 .80 .48 .35 13.. 1,705 16.. 1,721 Maturities of more than 1 Mar. 25............ 11,885 20.. 1,807 23.. 1,492 1.77 1.70 1.73 June 24............... 12,172 27.. 1,406 30.. 1,351 Sept. 30..............., 9,663 Dec. 30................. 7,676 1973 June 6.. 940 49.26 47.79 48.08 13.. 1,266 1971 Jan. 3.. 1,121 20.. 1,242 10.. 1,625 27.. 1,521 Note.—Includes interest-bearing U.S. dollar Mar. 31............... 2,858 4,358 17.. 1,419 deposits and direct borrowings of all branches in June 30............. 1,492 4,500 24.. 1,800 July 3.. 1,766 the Bahamas and of all other foreign branches Sept. 29............... 2,475 3,578 31.. 1,413 11.. 1,664 for which such deposits and direct borrowings Dec. 29............. 909 18.. 2,146 amount to $50 million or more. 25.. 2,086 Details may not add to totals due to rounding. 1 Represents gross liabilities of reporting banks to their branches in foreign countries. 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro­ dollar Series and special Export-Import Bank securities held by foreign branches. Beginning July 28, 1971, all of the securities held were U.S. Treasury Certificates Eurodollar Series. 24. DEPOSITS, U.S. TREAS. SECURITIES, 25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits period Total Short­ Short­ King­ 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 ments1 1970............... 148 16,226 12,926 1971............... 294 43,195 13,815 1968..................... 1,638 1,219 87 272 60 979 280 1972—July... 160 51,522 15,542 1969 2 \ f 1 l, , 4 3 9 1 1 9 1,0 9 6 5 2 2 1 16 1 1 6 1 18 7 3 4 7 8 6 6 6 6 1 63 0 4 5 6 3 9 4 Aug.. . 192 51,676 15,530 1,141 697 150 173 121 372 443 Sept... 193 50,997 15,531 O N c o t v .. . . . . . 1 18 9 8 2 5 51 1 , , 8 8 2 7 1 4 1 1 5 5 , , 5 5 3 3 1 0 l1y0 7/11 —J -JcC.*2 • . . / \ 1 1 , , 6 5 4 0 8 7 1 1, , 0 0 7 9 8 2 2 1 0 2 3 7 2 2 3 3 4 4 1 6 2 8 0 5 57 8 7 0 4 5 4 8 3 7 Dec... 325 50,934 15,530 1972—May........ 1,938 1,350 206 299 84 716 608 1973—Jan.... 310 50,118 15,526 June........ 1,987 1,385 199 312 92 713 572 Feb. .. 455 56,914 15,522 July......... 2,085 1,517 194 318 55 754 565 Mar... 327 359,389 15,519 Aug.......... 2,273 1,602 217 392 61 755 709 Apr... 328 358,255 15,513 Sept.......... 2,101 1,527 170 359 45 685 604 May. . 289 58,015 15,511 Oct........... 2,033 1,472 171 332 57 681 551 June.. 334 57,545 15,486 Nov.......... 2,058 1,493 167 343 55 635 587 July... 280 57,054 15,464 /l,965 1,446 169 307 42 702 485 uec/ . . . \2,099 1,663 68 327 41 772 500 1 Marketable U.S. Treasury bills, certificates of in­ 1973—Jan.".... 2,334 1,850 85 332 68 905 640 debtedness, notes, and bonds and nonmarketable U.S. Feb.r.... 2,823 2,133 161 343 186 963 1,023 Treasury securities payable in dollars and in foreign Mar.r___ 2,850 2,102 192 386 170 1,064 913 currencies. Apr.T___ 2,850 2,093 163 403 190 1,002 840 2 Increase results from change in par value of the U.S. May........ 2,953 2,214 161 416 162 978 937 dollar on May 8, 1972. 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value of foreign currency obliga­ 1 Negotiable and other readily transferable foreign obligations payable on demand tions revalued to reflect market exchange rates. or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. Note.—Excludes deposits and U.S. Treas. securities 2 Data on the two lines for this date differ because of changes in reporting coverage. held for international and regional organizations. Ear­ Figures on the first line are comparable in coverage with those shown for the preceding marked gold is gold held for foreign and international date; figures on the second line are comparable with those shown for the following date. accounts and is not included in the gold stock of the United States. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 26 and 27. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 1972 1973 1972 1973 Juner Sept. Dec. i Mar.* Juner Sept. Dec.i Mar.* Europe: Austria...................................... 6 2 2 2 2* 16 15 20 19 14 Belgium-Luxembourg........... 108 82 75 75 73 64 63 62 62 97 Denmark.................................. 5 5 9 9 10 20 19 28 29 25 Finland..................................... 2 3 4 4 4 19 16 23 24 21 France...................................... 139 145 163 164 158 207 188 220 217 278 Germany, Fed, Rep. of........ 104 130 144 145 140 191 200 176 180 219 Greece...................................... 5 14 24 24 28 36 30 39 35 36 Italy.......................................... 99 108 118 120 110 184 174 194 195 195 Netherlands............................. 65 79 102 107 99 66 71 78 80 89 Norway.................................... 5 5 9 9 9 17 19 17 15 17 Portugal.................................... 2 3 4 4 5 21 20 21 18 19 Spain........................................ 70 63 79 79 82 117 130 137 138 147 Sweden..................................... 13 14 12 12 22 37 45 56 56 45 Switzerland.............................. 97 119 122 106 126 59 57 79 81 86 Turkey...................................... 3 2 3 3 3 11 8 47 47 22 United Kingdom................... 981 943 949 1,007 840 990 992 1,043 1,059 1,340 Yugoslavia.............................. 6 5 7 7 16 10 11 12 12 14 Other Western Europe......... 2 2 2 2 2 10 11 14 11 8 Eastern Europe....................... 3 9 3 3 9 22 47 42 42 41 Total................................. 1,714 1,733 1,830 1,882 1,735 2,098 2,117 2,307 2,321 2,712 Canada......................................... 185 183 208 211 267 936 996 899 917 1,289 Latin America: Argentina................................. 18 16 19 19 19 50 52 59 58 53 Brazil........................................ 22 24 35 35 40 153 163 175 169 168 Chile.......................................... 16 17 18 18 17 41 33 33 34 31 Colombia................................. 6 6 8 8 8 38 39 41 41 43 Cuba.......................................... * 1 1 1 * 1 1 1 1 1 Mexico...................................... 18 21 27 27 34 143 154 180 182 192 Panama.................................... 6 5 8 8 8 22 20 19 23 24 6 5 5 5 4 32 36 40 40 38 Uruguay................................... 3 2 6 6 5 5 7 4 5 5 Venezuela................................ 17 17 17 17 18 75 74 89 94 107 Other L.A. republics............. 32 30 35 37 37 106 96 91 97 100 Bahamas 2............................... 357 293 319 353 279 442 519 520 544 469 Neth. Antilles and Surinam. 6 9 10 10 10 10 11 12 13 12 Other Latin America............. 6 6 7 7 11 18 23 23 29 38 Total................................. 514 453 514 550 491 1,134 1,226 1,289 1,328 1,280 Asia: China, People’s Republic of (China Mainland)........ 1 28 32 32 32 * 1 * * 1 China, Rep. of (Taiwan).... 25 26 28 28 28 45 51 67 66 63 Hong Kong............................. 11 12 12 12 12 23 22 24 32 32 India......................................... 7 7 7 7 7 32 36 33 33 29 Indonesia.................................. 5 6 12 12 12 25 32 33 33 37 Israel......................................... 9 11 12 12 16 17 18 31 31 33 Japan........................................ 188 223 149 154 186 451 452 456 465 502 Korea........................................ 16 16 20 20 19 61 57 63 63 47 Philippines............................... 6 5 15 15 25 67 63 49 49 46 Thailand.................................. 4 5 5 5 5 15 14 15 15 15 Other Asia............................... 103 112 117 119 119 174 171 201 201 183 Total.........„.................... 374 451 410 416 461 911 918 972 989 988 Africa: Egypt........................................ 1 1 25 25 28 6 7 7 7 14 South Africa............................ 37 17 7 8 6 46 45 53 52 50 Zaire......................................... 1 2 1 1 12 7 7 5 8 16 Other Africa............................ 31 37 59 61 69 74 64 75 81 84 Total................................. 71 57 92 96 115 133 122 140 147 164 Other countries: 54 46 47 46 53 97 92 94 83 81 All other.................................. 11 11 13 13 11 18 18 20 24 25 Total................................. 66 57 60 59 64 116 110 114 107 106 International and regional.. .. * * * * ♦ 5 1 1 1 3 Grand total..................... 2,925 2,933 3,114 3,215 3,132 5,331 ! 5,495 S 5,721 5,810 6,540 1 Data in the two columns shown for this date differ because of changes Note.—Reported by exporters, importers, and industrial and com* in reporting coverage. Figures in the first column are comparable in mercial concerns and other nonbanking institutions in the United States, coverage with those shown for the preceding date; figures in the second Data exclude claims held through U.S. banks, and intercompany accounts column are comparable with those shown for the following date. between U.S. companies and their foreign affiliates. 2 Includes Bermuda. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 Pay in able P fo a r y i e n a i b gn le Total Pay in able Deposits with dollars currencies dollars b i a n n r k e s p a o b rt r e o r a ’s d Other name 1969—Mar........................ 1,576 1,185 391 4,014 3,329 358 327 June....................... 1,613 1,263 350 4,023 3,316 429 278 Sept........................ 1,797 1,450 346 3,874 3,222 386 267 1 / 1,786 1,399 387 3,710 3,124 221 365 \ 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 / 2,704 2,229 475 5,185 4,535 318 333 \ 2,763 2,301 463 5,004 4,467 290 247 1972—Mar.r..................... 2,844 2,407 437 5,177 4,557 318 302 Juner..................... 2,925 2,452 472 5,331 4,685 376 270 Sept.r..................... 2,933 2,435 498 5,495 4,833 432 230 Dec.11 ..................... \ / 3 3 , , 2 1 1 1 5 4 2 2 , , 6 7 2 1 9 6 4 4 9 8 8 4 5 5 , , 7 8 2 1 1 0 5 5 , , 0 1 8 9 4 0 4 3 0 7 0 0 2 2 3 5 8 0 1973—Mar.?..................... 3,132 2,626 506 6,540 5,737 428 375 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period Total liabilities Total K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 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 ........................ \ / 2 1 , ,7 3 2 0 5 4 2 2, , 2 3 1 6 5 3 1 1 5 5 2 2 4 4 3 4 3 2 5 4 6 9 2 6 1 1 7 77 2 7 73 7 4 3 2 88 0 1 14 4 1 2 2 27 4 1 9 7 6 5 9 4 46 2 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 Dec.1 r.................... / \ 3 3 , , 1 1 5 3 9 8 3 3 , , 1 1 1 1 8 8 1 1 2 2 8 8 7 7 0 0 5 5 7 76 6 1 7 1 1 7 7 4 4 6 60 0 6 6 5 5 3 2 1 14 3 1 6 3 3 2 2 5 7 8 86 6 8 85 4 1972—Mar.r....................... 3,093 3,191 129 713 787 175 60 665 137 359 81 85 Juner....................... 3,300 3,255 108 713 797 188 61 671 161 377 86 93 Sept.r....................... 3,448 3,235 128 695 805 177 63 661 132 389 89 96 / 3,540 3,380 162 715 833 184 60 669 156 406 87 109 Dec.1....................... \ 3,761 3,494 178 755 930 182 62 675 129 392 79 111 1973—Mar........................ 3,853 3,634 142 806 944 162 60 757 122 416 101 125 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 l k an 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 20.191 111.10 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 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 19.977 119.07 4.3102 2.2640 101.756 15.605 14.453 23.562 19.906 119.09 4.3064 2.2685 101.279 15.026 14.510 24.022 19.839 120.74 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 20.987 141.29 4.8759 2.5378 100.333 15.774 16.275 25.628 22.191 141.50 4.8330 2.4895 99.928 15.777 16.099 25.872 21.959 141.50 4.9082 2.5356 99.916 15.883 16.241 25.277 22.341 June........................................................................... 141.58 5.2408 2.6643 100.160 16.538 17.130 26.731 23.472 July............................................................................ 141.78 5.8124 2.8151 100.049 16.431 18.041 27.202 24.655 Period ( G D m e e r u a m t r s k a c n ) h y e (r I u n p d e ia e) ( I p r o e u la n n d d ) ( I l t i a r l a y ) J ( a y p en an ) M (d a o l l a l y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e ­ r s ) 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 1969....................................................................................... 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 31.364 13.246 250.08 .17132 .32995 35.610 8.0000 31.153 1972—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 31.215 12.540 235.05 .17109 .33224 36.124 8.0000 30.964 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 June........................................................................... 38.786 13.753 257.62 .16792 .37808 40.865 8.0000 36.582 July............................................................................ 42.821 13.605 253.75 .17200 .37801 43.121 8.0000 38.700 United Period Z (d e N o a e l l l a w a n r d ) N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o f a r u n i t c d h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( e S f r r w l a a i n t n z c d ­ ) (p K d o i o u n m n g d ­ ) 1968........................................................................................ 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 111.21 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 24.325 244.42 119.35 15.180 3.7023 129.43 1.5559 21.022 26.193 250.08 1972—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 26.332 239.48 119.45 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 141.65 1.7224 22.567 31.494 253.05 June........................................................................... 132.40 18.192 4.2175 148.07 1.7229 23.746 32.757 257.62 July............................................................................ 135.02 18.932 4.4624 148.63 1.7385 24.732 35.428 253.75 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 □ AUGUST 1973 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of July 31, 1972 Rate Country 1972 1973 as of July 31, Per Month 1973 cent effective Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Argentina................................. 18.0 Feb. 1972 18.0 Austria...................................... 5.0 Jan. 1970 5.5 6.0 6.0 Belgium.................................... 4.0 Mar. 1972 4.5 5.0 5.50 5.50 Brazil........................................ 18.0 Feb. 1972 18.0 18.0 Canada...................................... 4.75 Oct. 1971 5.25 5.75 6.25 6.25 Ceylon...................................... 6.5 Jan. 1970 6.5 Chile.......................................... 7.0 Jan. 1972 7.0 China, Rep. of (Taiwan)___ 9.25 May 1971 9.25 Colombia.................................. 8.0 May 1963 8.0 Costa Rica............................... 5.0 5.0 Denmark.................................. 8.0 June 1972 7.0 8.0 8.0 Ecuador.................................... 8.0 Jan. 1970 8.0 Egypt........................................ 5.0 May 1962 5.0 El Salvador.............................. 4.0 Aug. 1964 4!o Ethiopia.................................... 6.50 Aug. 1970 6.50 Finland..................................... 7.75 Jan. 1972 9.25 9.25 France....................................... 5.75 Apr. 1972 7.5 8.50 8.50 Germany, Fed. Rep. of..... 3.0 Feb. 1972 3.5 4.5 5.0 6.0 7.0 7.0 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...................................... 5.19 June 1972 6.19 7.19 7.44 7.44 Italy........................................... 4.0 Apr. 1972 4.0 Jamaica.................................... 6.0 June 1972 7.0 7.0 Japan........................................ 4.25 June 1972 5.0 5.5 6.0 6.0 Korea........................................ 13.0 Jan. 1972 13.0 Mexico...................................... 4.5 June 1942 4.5 Morocco.................................. 3.50 Nov. 1951 3.50 Netherlands............................. 4.0 Mar. 1972 3.0 4.0 5.0 6.0 6.0 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 5.5 4.0 South Africa............................ 6.5 Mar. 1971 6.0 5.5 Spain......................................... 5.0 Oct. 1971 6.0 6.0 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.................... 6.0 June 1972 7.50 9.0 8.75 8.5 7.75 7.50 11.50 til.50 Venezuela................................ 5.0 Oct. 1970 5.0 Vietnam.................................... 18.0 Sept. 1970 18.0 Note.—Rates shown are mainly those at which the central bank either Morocco—Various rates from 3 per cent to 4.6 per cent depending on type discounts or makes advances against eligible commercial paper and/or of paper, maturity, collateral, guarantee, etc. govt, securities for commercial banks or brokers. For countries with Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ more than one rate applicable to such discounts or advances, the rate tion, import substitution industries and manufacture of exports; 8 per shown is the one at which it is understood the central bank transacts cent for other agricultural, industrial and mining paper; the largest proportion of its credit operations. Other rates for some Philippines—6 per cent for financing the production, importation, and dis­ of these countries follow: tribution of rice and corn and 7.75 per cent for credits to enterprises en­ Argentina—3 and 5 per cent for certain rural and industrial paper, de­ gaged in export activities. Preferential rates are also granted on credits to pending on type of transaction; rural banks; and Brazil—8 per cent for secured paper and 4 per cent for certain agricultural t United Kingdom—On Oct. 9, 1972, the Bank of England announced: paper; “With effect from Friday October 13th the Bank’s minimum lending rate Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent will until further notice be the average rate of discount for Treasury bills for loans to make up reserve deficiencies. established at the most recent tender plus one half percent rounded to the Colombia—5 per cent for warehouse receipts covering approved lists of nearest one quarter percent above. Although the rate will therefore be products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent automatically determined by this formula it will for convenience be made for rediscounts in excess of an individual bank’s quota; known each Friday afternoon concurrently with and in the same manner Costa Rica—5 per cent for paper related to commercial transactions as the results of the Treasury bill tender. The regular weekly bank rate (rate shown is for agricultural and industrial paper); announcement will be discontinued from now on.” Therefore, the mini­ Ecuador—5 per cent for special advances and for bank acceptances for mum lending rate as of last Friday of the month will be carried in place of agricultural purposes, 7 per cent for bank acceptances for industrial Bank rate. purposes, and 10 per cent for advances to cover shortages in legal reserves; Venezuela—2 per cent for rediscounts of certain agriculture paper, 4 Vi 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

AUGUST 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 s ls u t , h ry s1 D m a o d y n a - y e t y o 2 - 3 m P b b r o a i i l n n m ls t k , e hs3 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 - C d b r l e e a a p a n t o e r k s i s s n i 4 * t g D m a o d y n a - e y t y o s - Tr 6 d b e 0 a i a - y l s l 9 s s u 0 , 6 r y D m a o d y n a - y e t y o 7 - 3 T r m b e i a o l s l n s u t , 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 e u t n e t 1971......................... 3.62 3.76 6.41 5.57 4.93 3.84 5.84 4.54 6.10 4.34 3.76 5.24 1972......................... 3.55 3.65 6.06 5.02 4.83 3.84 3.04 4.30 2.15 1.97 4.81 1972—July.............. 3.48 3.45 6.82 5.60 4.99 4.18 3.78 2.75 2.24 1.09 .86 4.75 Aug.............. 3.47 3.54 6.71 5.79 5.13 5.25 3.76 2.75 4.48 .70 .60 4.75 Sept.............. 3.57 3.52 7.18 6.44 5.27 5.25 3.89 2.75 4.83 1.11 .54 4.75 Oct............... 3.57 3.64 7.34 6.74 5.47 5.25 5.16 3.25 6.07 1.95 2.61 4.75 Nov.............. 3.61 3.71 7.28 6.88 5.70 5.25 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 5.75 2.18 2.33 1.55 5.00 Mar.............. 4.28 4.21 9.76 8.16 7.52 7.50 7.49 5.75 11.37 1.53 .61 5.00 Apr............... 4.69 4.53 8.64 7.87 7.20 7.25 7.46 5.75 14.84 1.22 .77 5.00 May........... 5.23 4.67 8.35 7.45 8.29 7.11 5.75 7.40 3.88 5.00 5.36 5.00 8.14 7.12 6.66 6.55 7.00 10.90 3.59 4.28 July . ... 5.67 5.28 9.06 8.35 5.89 6.25 5.58 5.65 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 centper 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 o U d t j . a S . t . i t o o n U St n a 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 q A uo U d t j . a . S t t . i o o n U St n a i t t e 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) basis) Canada basis 1973 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 2.52 .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 June 1............... 7.06 6.87 . 19 -1.43 -1.24 5.19 5.07 6.87 -1.80 1.12 -.68 8............... 7.06 7.02 .04 -1.41 -1.37 5.25 5.11 7.02 -1.91 1.38 -.53 15............... 6.93 7.07 -.14 -1.38 -1.52 5.44 5.29 7.07 -1.78 1.48 -.30 22............... 6.90 7.16 -.26 -1.40 -1.66 5.46 5.31 7.16 -1.85 1.60 -.25 29............... 6.86 7.29 -.43 -1.68 -2.11 5.48 5.33 7.29 -1.96 1.58 -.38 July 6............... 6.76 7.87 -1.11 -2.36 -3.47 5.62 5.47 7.87 -2.40 1.70 -.70 13............... 6.85 7.59 -.74 -2.22 -2.96 5.62 5.47 7.59 -2.12 1.68 -.44 20............... 8.26 8.05 .21 -2.13 -1.92 5.71 5.55 8.05 -2.50 2.27 -.23 27............... 10.74 8.15 2.59 -3.55 -.96 5.74 5.59 8.15 -2.56 2.48 -.08 i No data because of holiday on Good Friday. bid and offer) at 11 a.m. Friday in New York for both spot and forward pound sterling and for both spot and forward Canadian dollars. Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 GOLD RESERVES □ AUGUST 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. 41,175 4,732 10,206 26,235 192 90 259 729 1,544 46 22 792 47 1972—June. 44,825 5.761 10.490 28,575 208 130 283 792 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.. 44,875 5.777 10.487 28,610 208 152 283 792 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 1.603 50 834 Mar... 2>44,900 5.830 10.487 *>28,585 208 152 282 793 1.603 50 834 Apr.. . 5.830 10.487 208 281 793 1.603 834 May.. 5,826 10.487 208 281 793 1.603 834 June?. 5.831 10.487 208 281 793 1.603 834 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—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 4,468 133 264 142 156 17 41 Feb.................. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Mar................. 87 16 69 92 53 3,834 4,468 133 264 142 156 17 41 Apr................. 87 16 69 92 53 3,834 4,468 133 142 156 17 41 May............... 87 16 69 53 3,834 4,469 133 142 156 17 41 Junep............. 16 69 53 3,841 4,462 133 142 156 17 E pe n r d i o o d f Italy Japan Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N la et n h d e s r­ N w o a r y ­ P s a ta k n i­ Peru P p h in il e ip s ­ 1965............................ 2,404 328 52 182 68 2 158 21 1,756 31 53 67 38 1966............................ 2,414 329 67 193 68 1 109 21 1,730 18 53 65 44 1967............................ 2,400 338 136 193 68 31 166 21 1,711 18 53 20 60 1968............................ 2,923 356 122 288 85 66 165 21 1,697 24 54 20 62 1969............................ 2,956 413 86 288 85 63 169 21 1,720 25 54 25 45 1970............................ 2,887 532 86 288 85 48 176 21 1,787 23 54 40 56 1971............................ 2,884 679 87 322 85 58 184 21 1,909 33 55 40 67 1972—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 63 188 23 2,059 37 60 41 71 Mar................ 3,134 801 94 350 93 63 188 23 2,059 37 60 41 71 Apr................. 3,134 801 94 350 93 63 23 2,059 37 60 41 50 May................ 3,134 802 350 93 63 23 2,059 37 60 50 June2’............. 3,134 802 93 2,063 37 60 40 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l l e . ­ ments 4 1965................................ 576 73 425 810 202 3,042 96 116 2,265 155 401 19 -558 1966................................ 643 69 637 785 203 2,842 92 102 1,940 146 401 21 -424 1967................................ 699 69 583 785 203 3,089 92 97 1,291 140 401 22 -624 1968................................ 856 119 1,243 785 225 2,624 92 97 1,474 133 403 50 -349 1969................................. 876 119 1,115 784 226 2,642 92 117 1,471 165 403 51 -480 1970................................. 902 119 666 498 200 2,732 92 126 1,349 162 384 52 -282 1971................................ 921 119 410 498 200 2,909 82 130 775 148 391 51 310 1972—June.................... 1,004 129 507 541 217 3,158 89 122 816 169 425 56 304 July..................... 1,004 129 543 541 217 3,158 89 122 816 169 425 56 276 Aug..................... 1,021 129 580 541 217 3,158 89 122 800 169 425 56 276 Sept..................... 1,021 129 601 541 217 3,158 89 122 800 169 425 56 267 Oct...................... 1,021 129 636 541 217 3,158 89 122 800 169 425 56 267 Nov..................... 1,021 129 662 541 217 3,158 89 122 800 169 425 56 255 Dec..................... 1,021 129 681 541 217 3,158 89 136 800 425 56 218 1973—Jan...................... 1,022 129 706 542 220 3,162 89 136 810 425 56 218 Feb...................... 1,022 131 711 542 220 3,162 89 136 810 425 56 214 Mar..................... 1,022 131 714 542 220 3,162 89 136 810 425 56 214 Apr..................... 1,022 131 720 542 220 3,162 89 136 425 56 214 May.................... 1,022 131 721 220 3,162 89 136 425 56 199 June?................. 131 724 220 3,162 89 136 425 56 205 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table, and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter) Africa North and South America Asia Other World Period produc­ tion i A So fr u i t c h a Ghana Zaire U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h in il e ip s ­ t A ra u l s ia ­ ot A h l e l r1 1966................................ 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 1967................................ 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1968................................ 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969................................ 1.420.0 1.090.7 24.8 6.0 60.1 89.1 6.3 3.7 7.7 3.4 23.7 20.0 24.5 60.0 1970................................ 1.450.0 1,128.0 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 1972p............................. 1.109.8 54.3 77.2 7.1 28.7 1972—May................... 94.4 6.8 .6 .6 .4 2.4 2.3 June................... 94.3 21.0 6.2 .6 .7 .3 2.5 r2.4 July................... 94.4 6.4 .4 .5 .4 2.8 '2.7 Aug................... 94.1 5.9 .4 .6 .3 2.8 2.8 Sept................... 93.9 6.3 .4 .6 .3 3.1 r2.3 Oct..................... 94.2 6.3 .5 .3 2.7 2.1 Nov................... 91.5 6.0 .7 2.0 Dec................... 84.3 6.3 .5 1.9 1973—Jan..................... 88.2 6.2 .8 2.5 Feb..................... 86.5 6.1 .5 Mar.................... 88.5 6.3 .5 Apr.................... 86.6 6.2 May................... 86.0 6.8 1 Estimated; excludes U.S.S.R., other Eastern European countries, 2 Quarterly data. China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 BANKING OFFICES □ AUGUST 1973 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Mutual savings banks All Member Nonmember Type of office and type of change banks Total Total Na­ State Total Insured Non- Insured 1 Nontional insured insured Banks (head office): Dec. 31, 1934............................................................... 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941............................................................... 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 2............................................................. 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951................................................................ 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1962................................................................ 13,938 13,427 6,047 4,503 1,544 7,380 7,072 308 331 180 Dec. 31, 1963................................................................ 14,078 13,569 6,108 4,615 1,493 7,461 7,177 284 330 179 Dec. 31, 1964............................................................... 14,266 13,761 6,225 4,773 1,452 7,536 7,262 274 327 178 Dec. 31, 1965................................................................ 14,309 13,804 6,221 4,815 1,406 7,583 7,320 263 328 177 Dec. 31, 1966................................................................ 14,274 13,770 6,150 4,779 1,351 7,620 7,385 235 330 174 Dec. 31, 1967................................................................ 14,222 13,721 6,071 4,758 1,313 7,650 7,439 211 331 170 Dec. 31, 1968................................................................ 14,179 13,679 5,978 4,716 1,262 7,701 7,504 197 333 167 Dec. 31, 1969................................................................ 14,158 13,662 5,871 4,669 1,202 7,791 7,595 196 330 166 Dec. 31, 1970................................................................ 14,181 13,688 5,768 4,621 1,147 7,920 7,735 185 328 165 Dec. 31, 1971................................................................ 14,273 13,784 5,728 4,600 1,128 8,056 7,875 181 326 163 Dec. 31 < 1972............................................................... 14,413 13,928 5,705 4,613 1,092 8,223 8,017 206 325 160 June 30, 1973............................................................... 14,531 14,048 5,707 4,631 1,076 8,341 8,137 204 323 160 Branches, additional offices, and facilities: Dec. 31, 1934............................................................... 3,133 3,007 2,224 1,243 981 783 783 126 Dec. 31, 1941............................................................... 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 2............................................................. 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951............................................................... 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1962............................................................... 12,932 12,345 9,649 6,640 3,009 2,696 2,646 50 466 121 Dec. 31, 1963............................................................... 14,122 13,498 10,613 7,420 3,193 2,885 2,835 50 502 122 Dec. 31, 1964............................................................... 15,275 14,601 11,457 8,156 3,301 3,144 3,094 50 549 125 Dec. 31, 1965............................................................... 16,471 15,756 12,298 8,964 3,334 3,458 3,404 54 583 132 Dec. 31, 1966............................................................... 17,665 16,908 13,129 9,611 3,518 3,779 3,717 62 614 143 Dec. 31, 1967................................................................ 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Dec. 31, 1968................................................................ 19,911 19,013 14,553 10,985 3,568 4,460 4,414 46 729 169 Dec. 31, 1969................................................................ 21,196 20,208 15,204 11,727 3,477 5,004 4,957 47 810 178 Dec. 31, 1970................................................................ 22,727 21,643 16,191 12,536 3,655 5,452 5,404 48 891 193 Dec. 31, 1971................................................................ 24,299 23,104 17,085 13,272 3,813 6,019 5,979 40 983 212 Dec. 31, 1972............................................................... 25,977 24,622 17,954 13,974 3,980 6,668 6,623 45 1,113 242 June 30, 1973................................................................ 26,891 25,464 18,319 14,322 3,997 7,145 7,100 45 1,177 250 Changes Jan.-June 30, 1973 Banks: New banks..................................................................... 170 170 49 40 9 121 116 5 Suspensions..................................................................... -2 -2 -2 -2 Consolidations and absorptions: Banks converted into branches.............................. -46 -44 -22 -19 -3 -22 -21 -1 -2 Other............................................................................ -4 -4 -1 -1 -3 -3 Interclass changes: Nonmember to national.......................................... 5 5 -5 -5 Nonmember to State member................................ 2 2 -2 -2 State member to national........................................ 4 -4 State member to nonmember................................. -20 -20 20 20 Noninsured to national............................................ 1 1 -1 -1 National to nonmember.......................................... -12 -12 12 12 Noninsured to insured............................................. 5 -5 Net change....................................................................... 118 120 2 18 -16 118 120 — 2 -2 Number of banks, June 30, 1973............................... 14,531 14,048 5,707 4,631 1,076 8,341 8,137 204 323 160 Branches and additional offices: De novo........................................................................... 913 841 488 386 102 353 353 64 8 Banks converted............................................................. 47 45 27 26 1 18 18 2 Discontinued................................................................... -39 -38 -32 -19 -13 -6 -6 -1 Sale of branch................................................................ -6 -6 -13 -9 -4 7 7 Interclass changes: Nonmember to national.......................................... 7 7 -7 -7 Nonmember to State member................................ 4 4 -4 -4 State member to nonmember................................. -76 -76 76 76 National to State member ..................... -2 2 National to nonmember.......................................... -37 -37 37 37 Other................................................................................ 1 1 1 -1 Net change....................................................................... 915 843 369 352 17 474 474 64 8 Number of branches and additional offices, June 30, 1973............................................................. 26,684 25,257 18,147 14,162 3,985 7,110 7,065 45 1,177 250 Banking facilities:3 Established...................................................................... 2 2 2 2 Discontinued.......... ........... -3 -3 -3 -3 Other.................................... . ............... -1 -1 1 1 Net change...................................................................... -1 -1 -4 -4 3 3 Number of facilities, June 30, 1973........................... 207 207 172 160 12 35 35 1 Insured mutual savings banks figures include one to three member 3 Provided at military and other Govt, establishments through arrange­ mutual savings banks, 1941 to 1962 inclusive, not reflected in total com­ ments made by the Treasury Dept. mercial bank figures. 2 Series revised as of June 30,1947. The revision resulted in an addition Note.—Beginning with 1959, figures include all banks in Alaska and of 115 banks and nine branches. Hawaii, but nonmember banks in territories and possesssions are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1973 □ FEDERAL RESERVE PAR LIST A 97 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other areas Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including other areas: Dec. 31, 1972................... 13,822 24,850 13,643 24,733 5,705 18,001 7,938 6,732 179 117 June 30, 1973................... 13,941 25,701 13,785 25,612 5,708 18,370 8,077 7,242 156 89 F.R. districts, June 30, 1973: Boston.................................. 381 1,839 381 1,839 213 1,180 168 659 New York1......................... 477 3,981 477 3,981 334 3,477 143 504 Philadelphia........................ 425 1,868 425 1,868 287 1,268 138 600 Cleveland............................. 776 2,259 776 2,259 460 1,838 316 421 Richmond............................ 747 3,648 738 3,647 368 2,230 370 1,417 9 1 Atlanta................................. 1,783 1,951 1,736 1,892 588 1,159 1,148 733 47 59 Chicago................................ 2,626 2,661 2,626 2,661 932 1,730 1,694 931 St. Louis.............................. 1,408 1,086 1,357 1,073 431 552 926 521 Minneapolis........................ 1,384 330 1,384 330 501 170 883 160 Kansas City......................... 2,126 415 2,126 415 813 239 1,313 176 Dallas.................................... 1.401 301 1,352 285 639 146 713 139 16 San Francisco..................... 407 5,362 407 5,362 142 4,381 265 981 State, June 30, 1973: Alabama...................... 281 350 281 350 110 253 171 97 Alaska......................... 10 71 10 71 5 63 5 8 Arizona....................... 15 387 15 387 4 270 11 117 Arkansas..................... 254 202 203 189 82 119 121 70 51 California.................... 163 3,320 163 3,320 64 2,903 99 417 Colorado..................... 251 38 251 38 141 24 110 14 Connecticut................. 66 504 66 504 26 308 40 196 Delaware..................... 18 115 18 115 5 4 13 111 District of Columbia. 14 115 14 115 12 106 2 9 Florida......................... 604 65 604 65 269 13 335 52 Georgia. . 436 519 436 519 71 330 365 189 Hawaii... 8 147 8 147 2 10 6 137 Idaho___ 23 178 23 178 11 154 12 24 Illinois. .. 1,160 159 1,160 159 490 98 670 61 Indiana. . . 406 750 406 750 179 457 227 293 Iowa........ 668 355 668 355 148 105 520 250 Kansas... 610 79 610 79 197 41 413 38 Kentucky. 342 406 342 406 92 237 250 169 Louisiana. 241 458 159 383 60 243 99 140 82 75 Maine.... 44 257 44 257 23 149 21 108 Maryland............ 112 613 112 613 46 372 66 241 Massachusetts... 154 834 154 834 93 620 61 214 Michigan............. 330 1,353 330 1,353 202 1,103 128 250 Minnesota........... 738 23 738 23 226 12 512 11 Mississippi.......... 183 420 183 420 46 182 137 238 Missouri.............. 680 166 680 166 171 64 509 102 Montana............. 148 12 148 12 98 9 50 3 Nebraska............. 443 50 443 50 131 29 312 21 Nevada................ 8 95 8 95 5 82 3 13 New Hampshire. 77 84 77 84 49 70 28 14 New Jersey 217 1,216 217 1,216 152 1,048 65 168 New Mexico 72 165 72 165 40 103 32 62 New York......... 299 2,771 299 2,771 232 2,602 67 1691 North Carolina. 87 1,385 87 1,385 26 700 61 685 North Dakota.. 169 74 169 74 47 16 122 58 Ohio................... 503 1,484 503 1,484 332 1,249 171 235 Oklahoma......... 443 88 443 88 208 58 235 30 Oregon............... 46 390 46 390 8 277 38 113 Pennsylvania... 427 1,992 427 1,992 288 1,430 139 562 Rhode Island. . , 16 204 16 204 5 113 11 91 South Carolina. 94 518 85 517 24 284 61 233 South Dakota.. 159 105 159 105 60 75 99 30 Tennessee......... 317 619 317 619 83 356 234 263 Texas................. 1,252 101 1,238 101 587 29 651 72 14 Utah................... 51 164 51 164 15 117 36 47 Vermont............ 39 102 39 102 23 41 16 61 Virginia............. 259 1,009 259 1,009 150 763 109 246 Washington.... 86 624 86 624 29 523 57 101 West Virginia. . 208 11 208 11 123 5 85 6 Wisconsin......... 616 304 616 304 161 95 455 209 Wyoming.......... 71 2 71 2 55 1 16 1 Other areas: American Samoa2. 1 1 1 Guam2..................... 1 12 1 12 7 1 5 Puerto Rico 3.......... 14 205 14 205 1 19 13 186 Virgin Islands3___ 8 30 8 30 1 29 7 1 1 Includes 17 New York City branches of three insured nonmember gin Islands) are included above in the table as nonmember banks; and Puerto Rican banks. nonmember branches in Puerto Rico include eight branches of Canadian 2 American Samoa and Guam assigned to the San Francisco District banks. for check clearing and collection purposes. All member branches in Guam are branches of California and New York Banks. Note.—Includes all commercial banking offices in the United States. 3 Puerto Rico and the Virgin Islands assigned to the New York District Puerto Rico, and the Virgin Islands on which checks are drawn, including for purposes of Regulation J, “Check Clearing and Collection.” Member 207 banking facilities. Number of banks and branches differs from that branches in Puerto Rico and all except eight in the Virgin Islands are in the table on page A-96 of the Aug. 1973 Bulletin, because this table branches of banks located in California, New York and Pennsylvania. includes banks in Puerto Rico and the Virgin Islands but excludes banks Certain branches of Canadian banks (two in Puerto Rico and five in Vir­ and trust companies on which no checks are drawn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 BOARD OF GOVERNOFiS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman George W. Mitchell, Vice Chairman J. Dewey Daane Andrew F. Brimmer John E. Sheehan Jeffrey M. Bucher R obert C. Holland J. Charles Partee, Adviser to the Board * Robert Solomon, Adviser to the Board RobertL. Cardon , Assistant to the Board JosephR. Coyne, Assistant to the Board John J. Hart, Special 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 Daniel M. Doyle, Deputy Director for Samuel B. Chase, Associate Director Management LyleE. Gramley, Associate Director Gordon B. Grimwood, Assistant Director and Peter M. Keir, Adviser Program Director for Contingency Planning James L. Pierce, Adviser William W. Layton, Director of Equal Stanley J. Sigel, Adviser Employment Opportunity M urray S. W ernick, Adviser Brenton C. Leavitt, Program Director for K enneth B. W illiam s, Adviser Banking Structure James B. Eckert, Associate Adviser Robert J. Lawrence, Associate Adviser Joseph S. Zeisel, Associate Adviser OFFICE OF THE SECRETARY Edward C. Ettin, Assistant Adviser Chester B. Feldberg, Secretary Eleanor J. Stockw ell, Assistant Adviser Theodore E. A llison, Assistant Secretary Stephen P. Taylor, Assistant Adviser M urray Altm ann, Assistant Secretary Louis W einer, Assistant Adviser NormandR. V. Bernard, Assistant Secretary Levon H. Garabedian, Assistant Director Arthur L. Broida, Assistant Secretary Elizabeth L. Carm ichael, Assistant DIVISION OF INTERNATIONAL FINANCE Secretary Ralph C. Bryant, Director John E. Reynolds, Associate Director Robert F. Gemmill, Adviser LEGAL DIVISION Reed J. Irvine, Adviser Thomas O’Connell, General Counsel Samuel I. Katz, Adviser Paul Gardner, Jr. , Assistant General Counsel Bernard Norwood, Adviser Pauline B. Heller, Assistant General Counsel Samuel Pizer, Adviser John Nicoll, Assistant General Counsel George B. Henry, Assistant Adviser Robert S. Plotkin, Assistant General Counsel Helen B. Junz, Assistant Adviser Baldwin B. Tuttle, Assistant General Counsel AndrewF. Oehmann, Special Assistant to the General Counsel DIVISION OF SUPERVISION AND REGULATION Frederic Solomon, Director Brenton C. Leavitt, Deputy Director DIVISION OF FEDERAL RESERVE BANK Frederick R. Dahl, Assistant Director OPERATIONS JackM. Egertson, Assistant Director RonaldG. Burke, Director Janet O. Hart, Assistant Director E. Maurice McWhirter, Associate Director John N. Lyon, Assistant Director Walter A. Althausen, Assistant Director John T. McClintock, Assistant Director Donald G. Barnes, Assistant Director Thomas A. Sidman, Assistant Director Harry A. Guinter, Assistant Director William W. Wiles, Assistant Director James R. Kudlinski, Assistant Director Griffith L. Garwood, Adviser P. D. Ring, Assistant Director Charles L. Marinaccio, Adviser *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 99 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION DIVISION OF DATA PROCESSING Keith D. Engstrom, Director JeroldE. Slocum, Director Charles L. Hampton, Associate Director DIVISION OF ADMINISTRATIVE SERVICES Glenn L. Cummins, Assistant Director Walter W. Kreimann, Director Henry W. Meetze, Assistant Director Donald E. Anderson, Assistant Director Warren N. Minami, Assistant Director John D. Smith, Assistant Director Edward K. O’Connor, Assistant Director RichardS. Watt, Assistant Director OFFICE OF THE CONTROLLER JohnKakalec, Controller JohnM. Denkler, Assistant Controller Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman 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 John E. Reynolds, Associate Economist Stephen H. Axilrod, Economist Karl A. Scheld, Associate Economist (Domestic Finance) Kent O. Sims, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account Peter D. Sternlight, Deputy Manager, System Open Market Account David E. Bodner, Deputy Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL G. Morris Dorrance, Jr., third federal reserve district, President Harry Hood Bassett, sixth federal reserve district, Vice President James F. English, Jr., first federal David H. Morey, eighth federal reserve district RESERVE DISTRICT Gabriel Hauge, second Chester C. Lind, ninth federal federal reserve district RESERVE DISTRICT Clair E. Fultz, fourth federal Morris F. Miller, tenth federal reserve district RESERVE DISTRICT Thomas I. Storrs, fifth federal Lewis H. Bond, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Allen P. Stults, seventh federal H. A. Rogers, twelfth federal RESERVE DISTRICT RESERVE DISTRICT Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 101 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch Boston .................. 02106 James S. Duesenberry Frank E. Morris Louis W. Cabot 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. Robert P. Black Stuart Shumate 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 William C. Conrad 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. L. Terry Britt Minneapolis ......... 55480 David M. Lilly Bruce K. MacLaury Bruce B. Dayton M. H. Strothman, Jr. Helena............... 59601 William A. Cordingley Howard L. Knous Kansas City........... 64198 Robert W. Wagstaff George H. Clay Robert T. Person John T. Boysen Denver .............. 80217 Maurice B. Mitchell George C. Rankin Oklahoma City 73125 Joseph H. Williams William G. Evans Omaha .............. 68102 A. James Ebel Robert D. Hamilton Dallas................... 75222 Chas. F. Jones Philip E. Coldwell John Lawrence T. W. Plant El Paso.............. 79999 Herbert M. Schwartz Frederic W. Reed Houston............. 77001 M. Steele Wright, Jr. James L. Cauthen San Antonio....... 78295 Irving A. Maihews 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 102 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) ANNUAL REPORT 36 pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per Currency. 1963. 11 pp. $.35. Sec. 12. Money annum or $.60 a copy in the United States and Rates and Securities Markets. 1966. 182 pp. its possessions, Bolivia, Canada, Chile, Colom­ $.65. Sec. 14. Gold. 1962. 24 pp. $.35. Sec. bia, Costa Rica, Cuba, Dominican Republic, 15. International Finance. 1962. 92 pp. $.65. Ecuador, Guatemala, Haiti, Republic of Hon­ Sec. 16 (New). Consumer Credit. 1965. 103 pp. duras, Mexico, Nicaragua, Panama, Paraguay, $.65. Peru, El Salvador, Uruguay, and Venezuela; 10 or more of same issue sent to one address, $5.00 INDUSTRIAL PRODUCTION—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 103 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. 18 pp. 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. Kichline, P. Davis, Andersen, Kareken et a/., 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, andGarvy). 1971. 1973. 171 pp. 276 pp. Vol. 2 (papers by Boulding, Chandler, Jones, Ormsby, Modigliani, Alperstein, Meli- MORTGAGE COMMITMENTS ON INCOME PROPER­ char, and Melichar and Doll). 1971. 173 pp. TIES: A NEW SERIES FOR 15 LIFE INSURANCE Vol. 3 (papers by Staats, Willis, Minsky, COMPANIES, 1951-70, by Robert Moore Fisher and Stackhouse, Meek, Holland and Garvy, and Barbara Negri Opper. Aug. 1973. 83 pp. Lynn). 1972. 220 pp. Each volume $3.00 a copy; 10 or more sent to one address, $2.50 each. Printed in full in the BULLETIN. THE ECONOMETRICS OF PRICE DETERMINATION (Staff Economic Studies are included in list of CONFERENCE, October 30-31, 1970, Washing­ reprints below.) ton, D.C. Oct. 1972, 397 pp. Cloth ed. $5.00 a copy; 10 or more sent to one address, $4.50 each. Paper ed. $4.00 a copy; 10 or more sent REPRINTS to one address, $3.60 each. ADJUSTMENT FOR SEASONAL VARIATION. June FEDERAL RESERVE STAFF STUDY: WAYS TO MOD­ 1941. 11 pp. ERATE FLUCTUATIONS IN HOUSING CON­ STRUCTION, Dec. 1972, 487 pp. $4.00 a copy; SEASONAL FACTORS AFFECTING BANK RESERVES. 10 or more sent to one address, $3.60 each. Feb. 1958. 12 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. STAFF ECONOMIC STUDIES SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. Studies and papers on economic and financial subjects that are of general interest in the field INTEREST RATES AND MONETARY POLICY, Staff of economic research. Paper by Stephen Axilrod. Sept. 1962. 28 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 FEDERAL RESERVE BULLETIN □ AUGUST 1973 MEASURES OF MEMBER BANK RESERVES. July TWO KEY ISSUES OF MONETARY POLICY. June 1963. 14 pp. 1971. 4 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN­ SURVEY OF DEMAND DEPOSIT OWNERSHIP. June OVER SERIES. Mar. 1965. 4 pp. 1971. 12 pp. 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. ii 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. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 18 pp. June 1972. 12 pp. BUSINESS FINANCING BY BUSINESS FINANCE COM­ SOME ESSENTIALS OF INTERNATIONAL MONETARY PANIES. Oct. 1968. 13 pp. REFORM. June 1972. 5 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. CHARACTERISTICS OF FEDERAL RESERVE BANK 7 pp. DIRECTORS. June 1972. 10 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco- BANK DEBITS, DEPOSITS, AND DEPOSIT TURN­ nomic Study by Frank de Leeuw and Edward OVER-REVISED SERIES. July 1972. 5 pp. Gramlich. June 1969. 20 pp. RECENT REGULATORY CHANGES IN RESERVE RE­ REVISION OF WEEKLY SERIES FOR COMMERCIAL QUIREMENTS AND CHECK COLLECTION. July BANKS. Aug. 1969. 5 pp. 1972. 5 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 20 pp. Sept. 1972. 2 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ RECENT ACTIVITIES OF FOREIGN BRANCHES OF CIAL BANKING. Mar. 1970. 16 pp. U.S. BANKS. Oct. 1972. 11 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND REVISION OF CONSUMER CREDIT STATISTICS. Oct. STATISTICS. May 1970. 4 pp. 1972. 21 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. 11 SURVEY OF FINANCE COMPANIES, 1970. Nov. pp. 1972. 15 pp. MONETARY AGGREGATES AND MONEY MARKET ONE-BANK HOLDING COMPANIES BEFORE THE 1970 CONDITIONS IN OPEN MARKET POLICY. Feb. AMENDMENTS. Dec. 1972. 13 pp. 1971. 26 pp. EVOLUTION OF THE PAYMENTS MECHANISM. Dec. BANK FINANCING OF MOBILE HOMES. Mar. 1971. 1972. 4 pp. 4 pp. REVISION OF THE MONEY STOCK MEASURES AND INTEREST RATES, CREDIT FLOWS, AND MONETARY MEMBER BANK RESERVES AND DEPOSITS. Feb. AGGREGATES SINCE 1964. June 1971. 16 pp. 1973. 19 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 105 TREASURY AND FEDERAL RESERVE FOREIGN EX­ CHANGES IN TIME AND SAVINGS DEPOSITS AT CHANGE OPERATIONS. Mar. 1973. 22 pp. COMMERCIAL BANKS, JANUARY-APRIL 1973. July 1973. 8 pp. DEVELOPMENTS IN U.S. BALANCE OF PAYMENTS. Apr. 1973. 13 pp. CHANGES IN BANK LENDING PRACTICES, 1972. July 1973. 5 pp. STATE AND LOCAL BORROWING ANTICIPATIONS AND REALIZATIONS. Apr. 1973. 4 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ CHANGE OPERATIONS, INTERIM REPORT. July YIELDS ON RECENTLY OFFERED CORPORATE 1973. 2 pp. BONDS. May 1973. 2 pp. BANKING AND MONETARY STATISTICS, 1972. Se- FEDERAL FISCAL POLICY, 1965-72. June 1973. lected series of banking and monetary statistics 20 pp. for 1972 only. Mar., and July 1973. 20 pp. SOME PROBLEMS OF CENTRAL BANKING. June FINANCIAL DEVELOPMENTS IN THE SECOND 1973. 3 pp. QUARTER OF 1973. Aug. 1973. 11 pp. OPEN MARKET OPERATIONS IN 1972. June 1973. CAPACITY UTILIZATION IN MAJOR MATERIALS IN­ 12 pp. DUSTRIES. Aug. 1973. 3 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 79-A hguorht 4-A segap o t era secnerefeR( A 106 FEDERAL RESERVE BULLETIN □ AUGUST 1973 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 11, 31, 33 Demand deposits: Agricultural loans of commercial banks, 22, 24 Adjusted, commercial banks, 14, 17, 23 Arbitrage, 93 Banks, by classes, 18, 23, 27 Assets and liabilities (See also Foreigners): Ownership by individuals, partnerships, and Banks, by classes, 18, 22, 23, 24, 37 corporations, 30 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Nonfinancial corporations, current, 48 Turnover, 14 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 54, 55, 56 Accumulated at commercial banks for payment of Production index, 58, 59 personal loans, 30 Banks, by classes, 18, 23, 27, 37 Euro-dollars, 88 Bank credit proxy, 17 Federal Reserve Banks, 12, 13, 88 Bankers’ balances, 23, 26 Postal savings, 23 (See also Foreigners, claims on, and liabilities to) Subject to reserve requirements, 17 Banking offices: Discount rates (See Interest rates) Changes in number, 96 Discounts and advances by Reserve Banks (See Loans) Par and nonpar offices, number, 97 Dividends, corporate, 48 Banks for cooperatives, 38 Dollar assets, foreign, 75, 81 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Earnings and hours, manufacturing industries, 65 Yields and prices, 34, 35 Employment, 62, 64, 65 Branch banks: Euro-dollar deposits in foreign branches of U.S. banks, 88 Assets, foreign branches of U.S. banks, 86 Liabilities, U.S. banks to foreign branches, 28, 87, 88 Farm mortgage loans, 49, 50 Brokerage balances, 85 Federal agency obligations, 11, 12, 13, 14 Business expenditures on new plant and equipment, 48 Federal finance: Business indexes, 62 Receipts and outlays, 40, 41 Business loans (See Commercial and industrial loans) Treasury operating balance, 40 Federal funds, 7, 22, 24, 28, 33 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: Banking offices, changes in number, 96 Loans, 24, 54, 55, 57 Consumer loans held, by type, 55 Paper, 31, 33 Deposits at, for payment of personal loans, 30 Financial institutions, loans to, 22, 24 Loans sold outright, 31 Float, 4 Number, by classes, 18 Flow of funds, 70 Real estate mortgages held, by type, 50 Foreign: Commercial paper, 31, 33 Condition statements (See Assets and liabilities) Currency operations, 11, 12, 13, 75, 81 Deposits in U.S. banks, 5, 12, 13, 23, 27, 88 Construction, 62, 63 Exchange rates, 91 Consumer credit: Trade, 73 Instalment credit, 54, 55, 56, 57 Foreigners: Noninstalment credit, by holder, 55 Claims on, 82, 83, 88, 89, 90 Consumer price indexes, 62, 66 Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90 Consumption expenditures, 68, 69 Corporations: Gold: Profits, taxes, and dividends, 48 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 Gross national product, 68, 69 Debits to deposit accounts, 14 Debt (See specific types of debt or securities) Hours and earnings, manufacturing industries, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 107 Housing permits, 62 Production, 58-61, 62 Housing starts, 63 Profits, corporate, 48 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, 96 Type of holder and property mortgaged, 49-53 Interbank deposits, 18, 23 Reserve position, basic, member banks, 7 Interest rates: Reserve requirements, member banks, 9 Business loans by banks, 32 Reserves: Federal Reserve Banks, 8 Central banks and govts., 94 Foreign countries, 92, 93 Commercial banks, 23, 26, 28 Money market rates, 33 Federal Reserve Banks, 12, 13 Mortgage yields, 51, 52, 53 Member banks, 5, 6, 17, 23 Prime rate, commercial banks, 32 U.S. reserve assets, 75 Time and savings deposits, maximum rates, 10 Residential mortgage loans, 35, 49, 50, 51, 52, 53 Yields, bond and stock, 34 Retail credit, 54 International capital transactions of U.S., 76-90 Retail sales, 62 International institutions, 74, 75, 92, 94 Inventories, 68 Saving: Investment companies, issues and assets, 47 Flow of funds series, 70 Investments (See also specific types of investments): National income series, 68 Banks, by classes, 18, 22, 25, 26, 37 Savings and loan assns., 38, 43, 51 Commercial banks, 17 Savings deposits (See Time deposits) Federal Reserve Banks, 12, 14 Savings institutions, principal assets, 37, 38 Life insurance companies, 37 Securities (See also U.S. Govt, securities): Savings and loan assns., 38 Federally sponsored agencies, 38, 39 International transactions, 84, 85 Labor force, 64 New issues, 45, 46, 47 Life insurance companies (See Insurance companies) Silver coin, 15 Loans (See also specific types of loans): Special Drawing Rights, 4, 12, 13, 72, 75 Banks, by classes, 18, 22, 24, 37 State and local govts.: Commercial banks, 17, 18, 22, 24, 29, 31, 32 Deposits, 23, 27 Federal Reserve Banks, 4, 6, 8, 12, 13, 14 Holdings of U.S. Govt, securities, 42, 43 Insurance companies, 37, 50, 51 New security issues, 45, 46 Insured or guaranteed by U.S., 49, 50, 51, 52, 53 Ownership of securities of, 22, 26, 37 Savings and loan assns., 38, 51 Yields and prices of securities, 34, 35 State member banks, 20, 30, 96 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 Banking offices, changes in number, 96 Time deposits, 10, 17, 18, 23, 27 Borrowings at Federal Reserve Banks, 6, 12 Treasury cash, Treasury currency, 4, 5, 15 Number, by classes, 18 Treasury deposits, 5, 12, 13, 40 Reserve position, basic, 7 Treasury operating balance, 40 Reserve requirements, 9 Reserves and related items, 4, 6, 17 Unemployment, 64 Mining, production index, 59, 61 U.S. balance of payments, 72 Mobile home shipments, 63 U.S. Govt, balances: Money market rates (See Interest rates) Commercial bank holdings, 23, 27 Money stock and related data, 16 Member bank holdings, 17 Mortgages (See Real estate loans and Residential mortgage Treasury deposits at Reserve Banks, 5, 12, 13, 40 loans) U.S. Govt, securities: Mutual funds (See Investment companies) Bank holdings, 18, 22, 25, 37, 42, 43 Mutual savings banks, 27, 37, 42, 43, 50, 96 Dealer transactions, positions, and financing, 44 Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43 National banks, 20, 30, 96 Foreign and international holdings, 12, 81, 84, 88 National defense expenditures, 41, 68 International transactions, 81, 84 National income, 68, 69 New issues, gross proceeds, 46 Nonmember banks, 20, 22, 23, 30, 96 Open market transactions, 11 Outstanding, by type of security, 42, 43, 45 Open market transactions, 11 Ownership, 42, 43 Yields and prices, 34, 35 Par and nonpar banking offices, number, 97 United States notes, 15 Payrolls, manufacturing index, 62 Utilities, production index, 59, 61 Personal income, 69 Postal savings, 23 Veterans Administration, 49, 50, 51, 52, 53 Prices: Consumer and wholesale commodity, 62, 66 Weekly reporting banks, 24 Security, 35 Prime rate, commercial banks, 32 Yields (See Interest rates) )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 79-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^1] Chicago; Omafui* j }enver C tv» 1 LOwctTwaaT^ jyf . ^ Kansas Citt^ Oklahoma City '***>*7 *'j“^ H \tlan ta\ / Dallas Jiouston >an Antonio* Miami Drawn byHW. <^afv'm,Cart ☆ (o THE FEDERAL RESERVE SYSTEM q) & o Q, HAWAII © Legend Boundaries of Federal Reserve Districts ------Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities • Federal Reserve Bank Facilities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis